Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | Neenah Inc | ||
Entity Central Index Key | 1,296,435 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,175,000,000 | ||
Entity Common Stock, Shares Outstanding | 16,883,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 979.9 | $ 941.5 | $ 887.7 |
Cost of products sold | 781.2 | 727 | 692.3 |
Gross profit | 198.7 | 214.5 | 195.4 |
Selling, general and administrative expenses | 96.5 | 92.2 | 86.5 |
Acquisition/integration/restructuring costs | 1.3 | 7 | 6.5 |
Insurance settlement | (3.2) | 0 | 0 |
Pension and SERP plan settlement charges | 0.6 | 0.8 | 0 |
Other (income) expense — net | (0.8) | 0.4 | 1 |
Operating income | 104.3 | 114.1 | 101.4 |
Interest expense | 12.7 | 11.2 | 11.7 |
Interest income | (0.1) | (0.1) | (0.2) |
Income from continuing operations before income taxes | 91.7 | 103 | 89.9 |
Provision for income taxes | 11.4 | 29.6 | 29.4 |
Income from continuing operations | 80.3 | 73.4 | 60.5 |
Loss from discontinued operations, net of taxes (Note 13) | 0 | (0.4) | (9.4) |
Net income | $ 80.3 | $ 73 | $ 51.1 |
Basic | |||
Continuing operations (in dollars per share) | $ 4.74 | $ 4.33 | $ 3.58 |
Discontinued operations (in dollars per share) | 0 | (0.02) | (0.56) |
Basic (in dollars per share) | 4.74 | 4.31 | 3.02 |
Diluted | |||
Continuing operations (in dollars per share) | 4.68 | 4.26 | 3.53 |
Discontinued operations (in dollars per share) | 0 | (0.02) | (0.55) |
Diluted (in dollars per share) | $ 4.68 | $ 4.24 | $ 2.98 |
Weighted Average Common Shares Outstanding (in thousands) | |||
Basic (in shares) | 16,805 | 16,773 | 16,754 |
Diluted (in shares) | 17,052 | 17,087 | 17,012 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 80.3 | $ 73 | $ 51.1 |
Reclassification of amounts recognized in the consolidated statement of operations: | |||
Amortization of adjustments to pension and other postretirement benefit liabilities | 5.9 | 7.2 | 7.1 |
Pension plan settlement/curtailment charge (2015 amount in discontinued operations) | 0.6 | 0.8 | 5.5 |
Amounts recognized in the consolidated statement of operations | 6.5 | 8 | 12.6 |
Unrealized foreign currency translation gain (loss) | 20 | (7.1) | (15) |
Net loss from pension and other postretirement benefit plans | (20.3) | (18) | (6.3) |
Deferred loss on available-for-sale securities | (0.4) | 0 | 0 |
Income (loss) from other comprehensive income items before income taxes | 5.8 | (17.1) | (8.7) |
(Benefit) provision for income taxes | (3) | (3.4) | 1.2 |
Other comprehensive income (loss) | 8.8 | (13.7) | (9.9) |
Comprehensive income | $ 89.1 | $ 59.3 | $ 41.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 4.5 | $ 3.1 |
Accounts receivable, net | 115.7 | 96.5 |
Inventories | 143.5 | 116.3 |
Prepaid and other current assets | 21.5 | 20.4 |
Total Current Assets | 285.2 | 236.3 |
Property, Plant and Equipment — net | 425.2 | 364.6 |
Deferred Income Taxes | 10.1 | 6.1 |
Goodwill (Note 5) | 85.3 | 70.4 |
Intangible Assets — net (Note 5) | 78.7 | 74 |
Other Assets | 19.9 | 14.2 |
TOTAL ASSETS | 904.4 | 765.6 |
Current Liabilities | ||
Debt payable within one year | 1.4 | 1.2 |
Accounts payable | 65.7 | 55.6 |
Accrued expenses | 57.5 | 51.2 |
Total Current Liabilities | 124.6 | 108 |
Long-Term Debt | 254.1 | 219.7 |
Deferred Income Taxes | 15 | 10.1 |
Noncurrent Employee Benefits | 100.3 | 86.7 |
Other Noncurrent Obligations | 10.5 | 2.8 |
TOTAL LIABILITIES | 504.5 | 427.3 |
Stockholders' Equity | ||
Common stock, par value $0.01 — authorized: 100,000,000 shares; issued and outstanding: 16,870,000 shares and 16,771,000 shares | 0.2 | 0.2 |
Treasury stock, at cost: 1,588,000 shares and 1,475,000 shares | (65.8) | (56.5) |
Additional paid-in capital | 323.9 | 317 |
Retained earnings | 235.7 | 169.6 |
Accumulated other comprehensive loss | (94.1) | (92) |
Total Stockholders' Equity | 399.9 | 338.3 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 904.4 | $ 765.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Par value of shares of common stock (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 18,458,000 | 18,245,000 |
Common stock, outstanding shares | 16,870,000 | 16,771,000 |
Treasury stock, shares | 1,588,000 | 1,475,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2014 | 17,849 | |||||
Beginning Balance at Dec. 31, 2014 | $ 0.2 | $ (31.7) | $ 300.4 | $ 88.2 | $ (68.4) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 51.1 | 51.1 | ||||
Other comprehensive loss, after income taxes | (9.9) | (9.9) | ||||
Dividends declared | (20.3) | |||||
Excess tax benefits from stock-based compensation | 2.6 | 2.6 | ||||
Shares purchased (Note 10) | (5.9) | |||||
Stock options exercised (in shares) | 108 | |||||
Stock options exercised | 1.2 | |||||
Restricted stock vesting (in shares) | 106 | |||||
Restricted stock vesting (Note 10) | (2.5) | |||||
Stock-based compensation | 6.5 | |||||
Other/Currency | 0.1 | |||||
Ending balance (in shares) at Dec. 31, 2015 | 18,063 | |||||
Ending Balance at Dec. 31, 2015 | $ 0.2 | (40.1) | 310.8 | 119 | (78.3) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 73 | 73 | ||||
Other comprehensive loss, after income taxes | (13.7) | (13.7) | ||||
Dividends declared | (22.4) | |||||
Excess tax benefits from stock-based compensation | 3.1 | (12.6) | ||||
Shares purchase (in shares) | 71 | |||||
Shares purchased (Note 10) | 0.4 | |||||
Stock options exercised (in shares) | 111 | |||||
Stock options exercised | (3.8) | |||||
Restricted stock vesting (Note 10) | 5.8 | |||||
Ending balance (in shares) at Dec. 31, 2016 | 18,245 | |||||
Ending Balance at Dec. 31, 2016 | 338.3 | $ 0.2 | (56.5) | 317 | 169.6 | (92) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 80.3 | 80.3 | ||||
Other comprehensive loss, after income taxes | 8.8 | 8.8 | ||||
Dividends declared | (25.1) | |||||
Excess tax benefits from stock-based compensation | 4.5 | |||||
Shares purchased (Note 10) | (6.8) | |||||
Stock options exercised (in shares) | 140 | |||||
Stock options exercised | 0.4 | |||||
Restricted stock vesting (in shares) | 73 | |||||
Restricted stock vesting (Note 10) | (2.5) | |||||
Stock-based compensation | 6.4 | |||||
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | (10.9) | 10.9 | ||||
Other/Currency | 0.1 | |||||
Ending balance (in shares) at Dec. 31, 2017 | 18,458 | |||||
Ending Balance at Dec. 31, 2017 | $ 399.9 | $ 0.2 | $ (65.8) | $ 323.9 | $ 235.7 | $ (94.1) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 80.3 | $ 73 | $ 51.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 33.3 | 32 | 31.5 |
Stock-based compensation | 6.4 | 5.8 | 6.5 |
Excess tax benefit from stock-based compensation (Note 9) | 0 | 0 | (2.6) |
Deferred income tax provision | (0.2) | 16.9 | 8.3 |
Non-cash effects of changes in liabilities for uncertain income tax positions | (0.1) | (1.5) | (0.1) |
Pension settlement charge, net of plan payments | 0.6 | 0.8 | 0 |
Non-cash loss on discontinued operations | 0 | 0 | 12 |
Loss (gain) on asset dispositions | 0.2 | 0.1 | (0.1) |
Net cash (used in) provided by changes in operating working capital, net of effect of acquisitions (Note 15) | (11.8) | (1.2) | 1.8 |
Pension and other post-employment benefits | (8) | (10.9) | 2.9 |
Other | (0.7) | 0.8 | (0.1) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 100 | 115.8 | 111.2 |
INVESTING ACTIVITIES | |||
Capital expenditures | (42.7) | (68.5) | (48.1) |
Purchases of marketable securities | (0.6) | (0.1) | (0.2) |
Asset acquisition | (8) | 0 | 0 |
Net proceeds from sale of discontinued operations | 0 | 0 | 5.4 |
Proceeds from sale of property, plant and equipment | 0 | 0.1 | 0.5 |
Acquisitions (Note 4) | (43.1) | 0 | (118.2) |
Other | (0.6) | 0.3 | 0.5 |
NET CASH USED IN INVESTING ACTIVITIES | (95) | (68.2) | (160.1) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt (Note 7) | 323.7 | 243 | 151.6 |
Debt issuance costs | (0.3) | (0.1) | 0 |
Repayments of long-term debt (Note 7) | (293.3) | (252.9) | (145.6) |
Proceeds from exercise of stock options | 0.4 | 0.4 | 1.2 |
Excess tax benefit from stock-based compensation (Note 9) | 0 | 0 | 2.6 |
Cash dividends paid | (25.1) | (22.4) | (20.3) |
Shares purchased (Note 10) | (9.3) | (16.4) | (8.4) |
Other | 0.1 | 0 | 0.1 |
NET CASH USED IN FINANCING ACTIVITIES | (3.8) | (48.4) | (18.8) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0.2 | (0.3) | (0.7) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1.4 | (1.1) | (68.4) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 3.1 | 4.2 | 72.6 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 4.5 | $ 3.1 | $ 4.2 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background Neenah, Inc. ("Neenah" or the "Company"), is a Delaware corporation incorporated in April 2004. The Company has two primary operations: its technical products business and its fine paper and packaging business. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media, tape and abrasives backings products, digital image transfer, durable label, and other specialty substrate products. The fine paper and packaging business is a supplier of branded premium printing, packaging and other high end specialty papers primarily in North America. The Company's premium writing, text and cover papers, and specialty papers are used in commercial printing and imaging applications for corporate identity packages, invitations, personal stationery and high-end advertising, as well as premium labels and luxury packaging. Basis of Presentation The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Significant management judgment is required in determining the accounting for, among other things, pension and postretirement benefits, retained insurable risks, reserves for sales discounts and allowances, purchase price allocations, useful lives for depreciation and amortization, asset retirement obligations ("AROs"), future cash flows associated with impairment testing for tangible and intangible long-lived assets, goodwill, income taxes, contingencies, inventory obsolescence and market reserves and the valuation of stock-based compensation. Revenue Recognition The Company recognizes sales revenue when all of the following have occurred: (1) delivery has occurred, (2) persuasive evidence of an agreement exists, (3) pricing is fixed or determinable, and (4) collection is reasonably assured. Delivery is not considered to have occurred until the customer takes title and assumes the risks and rewards of ownership. The timing of revenue recognition is largely dependent on shipping terms. Sales are reported net of allowable discounts and estimated returns. Reserves for cash discounts, trade allowances and sales returns are estimated using historical experience. The Company has completed its assessment of the ASU 2014-09, Revenue from Contracts with Customers, and does not believe there will be a material impact from adoption on its consolidated financial statements. The Company will adopt the new standards using the modified retrospective method as of January 1, 2018. See "Recently Adopted Accounting Standards" later in this Note for further discussion. Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. As of December 31, 2017 and 2016 , $0.1 million and $0.3 million , respectively, of the Company's cash and cash equivalents is restricted to the payment of postretirement benefits for certain former Fox River executives. Inventories U.S. inventories are valued at the lower of cost, using the Last-In, First-Out (LIFO) method for financial reporting purposes, or market. European inventories are valued at the lower of cost, using a weighted-average cost method, or market. Cost includes labor, materials and production overhead. Foreign Currency Balance sheet accounts of the Company's operations in Germany and the Netherlands, the United Kingdom (the "U.K."), and Canada are translated from Euros, British Pounds, and Canadian dollars, respectively, into U.S. dollars at period-end exchange rates, and income and expense accounts are translated at average exchange rates during the period. Translation gains or losses related to net assets located in Germany, the Netherlands, the U.K., and Canada are recorded as unrealized foreign currency translation adjustments within Accumulated other comprehensive loss in stockholders' equity. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in Other expense — net in the consolidated statements of operations. Property and Depreciation Property, plant and equipment are stated at cost, less accumulated depreciation. Certain costs of software developed or obtained for internal use are capitalized. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and the gains or losses are recorded in Other (income) expense — net. For financial reporting purposes, depreciation is principally computed on the straight-line method over estimated useful asset lives. The weighted average remaining useful lives for buildings, land improvements and machinery and equipment are approximately 20 years , 12 years and 9.5 years , respectively. The units-of-production method of depreciation is used for the U.S. transportation filtration production assets with a gross book value of $66.6 million , which reflects the nature of the assets' utilization. For income tax purposes, accelerated methods of depreciation are used. The costs of major rebuilds and replacements of plant and equipment are capitalized, and the cost of maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is expensed as incurred. Start-up costs for new or expanded facilities, including costs related to trial production, are expensed as incurred. The Company accounts for AROs in accordance with ASC Topic 410, Asset Retirements and Environmental Obligations , which requires companies to make estimates regarding future events in order to record a liability for AROs in the period in which a legal obligation is created. Such liabilities are recorded at fair value, with an offsetting increase to the carrying value of the related long-lived asset. As of December 31, 2017 , the Company is unable to estimate its AROs for environmental liabilities at its manufacturing facilities. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). The amount of stock-based compensation cost recognized is based on the fair value of grants that are ultimately expected to vest and is recognized pro-rata over the requisite service period for the entire award. Research and Development Expense Research and development costs are charged to expense as incurred and are recorded in "Selling, general and administrative expenses" on the consolidated statement of operations. See Note 15, "Supplemental Data — Supplemental Statement of Operations Data." Fair Value Measurements The Company measures the fair value of pension plan assets in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820") which establishes a framework for measuring fair value. ASC Topic 820 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Fair Value of Financial Instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The fair value of short and long-term debt is estimated using rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company's debt. December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair 2021 Senior Notes (5.25% fixed rate) $ 175.0 $ 170.2 $ 175.0 $ 169.5 Global Revolving Credit Facilities (variable rates) 76.9 76.9 42.9 42.9 Second German Loan Agreement (2.5% fixed rate) 6.4 6.4 6.8 6.8 Total debt $ 258.3 $ 253.5 $ 224.7 $ 219.2 _______________________ (a) Fair value for all debt instruments was estimated from Level 2 measurements. The Company's investments in marketable securities are accounted for as "available-for-sale securities" in accordance with ASC Topic 320, Investments — Debt and Equity Securities ("ASC Topic 320"). Pursuant to ASC Topic 320, marketable securities are reported at fair value on the consolidated balance sheet and unrealized holding gains and losses are reported in other comprehensive income until realized upon sale. At December 31, 2017 , the Company had $3.6 million in marketable securities classified as Other assets on the consolidated balance sheet. The cost of such marketable securities was $4.1 million . Fair value for the Company's marketable securities was estimated from Level 1 inputs. The Company's marketable securities are designated for the payment of benefits under its supplemental employee retirement plan (the "SERP"). Fair Value of Pension Plan Assets With the exception of cash and cash equivalents which are considered Level 1, and the annuity contracts which are considered Level 3, pension plan assets are measured at Net Asset Value ("NAV") (or its equivalent) as an alternative to fair market value due to the absence of readily available market prices, and as such are not subject to the fair value hierarchy. Following is the fair value of each investment category: • Cash and cash equivalents ( $1.6 million and $1.5 million at December 31, 2017 and 2016 , respectively). • U.S and non-U.S. Equities ( $123.2 million and $112.2 million at December 31, 2017 and 2016 , respectively) — These proprietary collective funds have observable NAVs (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • U.S and non-U.S. Fixed Income Securities ( $199.0 million and $181.1 million at December 31, 2017 and 2016 , respectively) — These proprietary collective funds have observable NAVs (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately of within a few days. • Hedge Fund ( $28.2 million and $23.3 million at December 31, 2017 and 2016 , respectively) — This fund is valued using NAVs calculated by the underlying investment managers and allow for quarterly or more frequent redemptions. In conjunction with the Coldenhove Acquisition, there were transfers in of $46.8 million into Level 3 plan assets, as the defined benefit plan for Coldenhove is administered through an insurance contract. The following table summarizes the changes in Level 3 defined benefit pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2017: Return on plan assets Fair Value at January 1 Attributable to Assets Held at December 31 Attributable to Assets Sold Net Purchases/ (Settlements) Transfers into/ (out of) Level 3 Foreign currency effects Fair Insurance contract $ — $ 0.2 $ — $ 0.1 $ 46.8 $ 1.3 $ 48.4 Recently Adopted Accounting Standards In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The amendments in this ASU provide guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The amendments are effective for the Company as of January 1, 2018, on a prospective basis. The Company early adopted ASU 2017-01 in the third quarter of 2017. There was no material impact on the consolidated financial statements as a result of the adoption. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income (Topic 740), to address issues related to the application of ASC 740 to certain provisions of the Tax Cuts and Jobs Act (the "Tax Act"). This ASU provides an option for entities to make a one-time reclassification from Accumulated Other Comprehensive Income (“AOCI”) to retained earnings for stranded tax effects resulting from the newly enacted tax rates for deferred tax liabilities and assets related to items within AOCI. The Company early adopted ASU 2018-02 in the fourth quarter of 2017 and accordingly reclassified $10.9 million related to stranded tax effects resulting from the Tax Act from AOCI to retained earnings. See Note 10, "Stockholders' Equity." Accounting Standards Changes In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has subsequently issued additional, clarifying standards to address issues arising from implementation of the new revenue recognition standard. The Company has completed its assessment of the new standards and does not believe there will be a material impact from adoption on its consolidated financial statements. The Company will adopt the new standards using the modified retrospective method as of January 1, 2018. The new standards also require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current lease accounting. The guidance also eliminates current real estate-specific provisions for all entities. ASU 2016-09 is effective for fiscal years beginning after December 15, 2018, although early adoption is permitted. The Company is currently assessing the impact of the adoption of ASU 2016-09 on its consolidated financial statements. As of December 31, 2017 , no other amendments to the ASC had been issued and not adopted by the Company that will have or are reasonably likely to have a material effect on the its financial position, results of operations or cash flows. |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share ("EPS") The Company's restricted stock units ("RSUs") are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, basic EPS has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares outstanding. For the computation of basic EPS, weighted average RSUs outstanding are excluded from the calculation of weighted average shares outstanding. Accounting Standards Codification ("ASC") Topic 260, Earnings per Share ("ASC Topic 260") requires companies with participating securities to calculate diluted earnings per share using the "two class" method. The "two class" method requires first calculating diluted earnings per share using a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities. Diluted earnings per share is then calculated using net income reduced by the amount of distributed and undistributed earnings allocated to participating securities calculated using the "Treasury Stock" method and a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities excluding participating securities. Companies are required to report the lower of the diluted earnings per share amounts under the two calculations subject to the anti-dilution provisions of ASC Topic 260. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted to include the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, stock appreciation rights ("SARs") and target awards of RSUs with performance conditions ("Performance Share Units" or "PSUs"), into shares of common stock as if those securities were exercised or converted. For the years ended December 31, 2017 , 2016 and 2015 , approximately 72,000 , 35,000 and 45,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company's common stock for the respective 12 -month periods during which the options were outstanding. The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): Earnings per basic common share Year Ended December 31, 2017 2016 2015 Income from continuing operations $ 80.3 $ 73.4 $ 60.5 Amounts attributable to participating securities (0.6 ) (0.7 ) (0.6 ) Income from continuing operations available to common stockholders 79.7 72.7 59.9 Income (loss) from discontinued operations, net of income taxes — (0.4 ) (9.4 ) Amounts attributable to participating securities — — 0.1 Net income available to common stockholders $ 79.7 $ 72.3 $ 50.6 Weighted-average basic shares outstanding 16,805 16,773 16,754 Basic earnings (loss) per share Continuing operations $ 4.74 $ 4.33 $ 3.58 Discontinued operations — (0.02 ) (0.56 ) $ 4.74 $ 4.31 $ 3.02 Earnings per diluted common share Year Ended December 31, 2017 2016 2015 Income from continuing operations $ 80.3 $ 73.4 $ 60.5 Amounts attributable to participating securities (0.5 ) (0.6 ) (0.5 ) Income from continuing operations available to common stockholders 79.8 72.8 60.0 Income (loss) from discontinued operations, net of income taxes — (0.4 ) (9.4 ) Amounts attributable to participating securities — — 0.1 Net income available to common stockholders $ 79.8 $ 72.4 $ 50.7 Weighted-average basic shares outstanding 16,805 16,773 16,754 Add: Assumed incremental shares under stock-based compensation plans 247 314 258 Weighted average diluted shares 17,052 17,087 17,012 Diluted earnings (loss) per share Continuing operations $ 4.68 $ 4.26 $ 3.53 Discontinued operations — (0.02 ) (0.55 ) $ 4.68 $ 4.24 $ 2.98 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Coldenhove On November 1, 2017, the Company purchased all of the outstanding equity of Coldenhove for approximately $45 million . The Company also paid approximately $3 million to extinguish Coldenhove's existing debt and certain other liabilities. The payment was funded with $17 million of cash on hand and borrowings of $31 million from the Global Revolving Credit Facilities. Coldenhove is a specialty materials manufacturer based in the Netherlands, with a leading position in digital transfer media and other technical products. The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations ("ASC Topic 805"). The preliminary allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of November 1, 2017, and certain tax balances are subject to adjustment as additional information is obtained. The Company has up to 12 months from the closing of the acquisition to finalize its valuations. Changes to the valuation of tax assets and liabilities acquired may result in adjustments to the carrying value of tax assets and liabilities acquired or goodwill. Prior to the end of the one -year purchase price allocation period, if information becomes available which would indicate it is probable that such events attributable to these items had occurred as of the acquisition date and the amounts can be reasonably estimated, such items will be included in the final purchase price allocation and may result in an adjustment to the carrying value of tax assets and liabilities acquired or goodwill. The following table summarizes the allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed as of December 31, 2017 . December 31, 2017 Assets Acquired Cash and cash equivalents $ 4.9 Accounts receivable 4.7 Inventories 12.7 Deferred income taxes 0.4 Prepaid and other current assets 0.2 Property, plant and equipment 31.2 Non-amortizable intangible assets 1.2 Amortizable intangible assets 4.7 Acquired goodwill 10.0 Other assets 0.1 Total assets acquired 70.1 Liabilities Assumed Accounts payable 4.1 Accrued expenses 5.4 Contingent liability (1) 2.3 Deferred income taxes 3.5 Noncurrent employee benefits 4.9 Long-term debt 1.8 Other noncurrent obligations 0.1 Total liabilities assumed 22.1 Net assets acquired $ 48.0 (1) In conjunction with the acquisition, the Company assumed a contingent liability of $2.3 million related to the acquisition of direct customer relationships by Coldenhove, which amount is contingent on the growth of sales from these customer relationships. As of December 31, 2017, the liability amount is unchanged. The Company estimated the fair value of the assets and liabilities acquired in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820"). The fair value of amortizable and non-amortizable intangible assets was estimated by applying a royalty rate to projected revenue, net of tax impacts and adjusted for present value considerations. The Company estimated the fair value of acquired property, plant and equipment using a combination of cost and market approaches. In general, the fair value of other acquired assets and liabilities was estimated using the cost basis of Coldenhove. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets acquired was recorded as acquired goodwill. The factors contributing to the amount of goodwill recognized are based on several strategic and synergistic benefits that are expected to be realized from the acquisition of Coldenhove. These benefits include entry into profitable new markets for performance materials and specialty papers with new capabilities and recognized brands and synergies from combining the business with Neenah's existing infrastructure. None of the goodwill recognized as part of the Coldenhove acquisition will be deductible for income tax purposes. All of the acquired goodwill was allocated to the Technical Products segment. For the year ended December 31, 2017 , the Company incurred $1.3 million of acquisition and restructuring costs. For the year ended December 31, 2017 , the Company recorded net sales of $7.5 million and insignificant loss from operations before income taxes (excluding the acquisition related costs described above) for the acquired business. The following selected unaudited pro forma consolidated statements of operations data for the year ended December 31, 2017 and 2016 was prepared as though the Coldenhove acquisition had occurred on January 1, 2016. The information does not reflect future events that may occur after December 31, 2017 or any operating efficiencies or inefficiencies that may result from the Coldenhove acquisition. Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2017 2016 Net sales $ 1,019.8 $ 986.9 Operating income 108.9 116.7 Income from continuing operations 83.0 74.8 Income (loss) from discontinued operations — (0.4 ) Net income 83.0 74.4 Earnings (Loss) Per Common Share Basic Continuing operations $ 4.90 $ 4.42 Discontinued Operations — (0.02 ) $ 4.90 $ 4.40 Diluted Continuing operations $ 4.84 $ 4.34 Discontinued Operations — (0.02 ) $ 4.84 $ 4.32 Acquisition of FiberMark On August 1, 2015, the Company purchased all of the outstanding equity of FiberMark from American Securities for approximately $118 million . FiberMark is a specialty coatings and finishing company with a strong presence in luxury packaging and technical products. The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations ("ASC Topic 805"). The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of August 1, 2015. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets acquired was recorded as acquired goodwill. The factors contributing to the amount of goodwill recognized are based on several strategic and synergistic benefits that are expected to be realized from the acquisition of FiberMark. These benefits include entry into profitable new markets for premium packaging, performance materials and specialty papers with new capabilities and recognized brands, synergies from combining the business with Neenah's existing infrastructure, and the opportunity to accelerate sales growth in areas like premium packaging. None of the goodwill recognized as part of the FiberMark acquisition will be deductible for income tax purposes. However, the Company did acquire all of the tax attributes associated with the FiberMark assets and liabilities, including an insignificant amount of tax deductible goodwill. Approximately $18.9 million , $6.2 million and $0.4 million of the goodwill acquired in the FiberMark acquisition was allocated to the Technical Products, Fine Paper and Packaging and Other segments, respectively. For the year ended December 31, 2016 , the Company incurred $4.3 million of integration and restructuring costs. For the year ended December 31, 2015, the Company incurred $5.3 million of acquisition and integration costs. For the year ended December 31, 2015, net sales and income from operations before income taxes for the acquired businesses were $58.1 million and $1.5 million (excluding the acquisition related costs described above), respectively. In conjunction with the FiberMark acquisition, the Company identified various uncertain tax positions totaling $4.7 million . Such amount was reflected in the purchase price allocation as $3.7 million of goodwill and $1.0 million of other current assets. The following selected unaudited pro forma consolidated statements of operations data for the year ended December 31, 2016 and 2015 was prepared as though the FiberMark acquisition had occurred on January 1, 2015. The information does not reflect future events that may occur after December 31, 2016 or any operating efficiencies or inefficiencies that may result from the FiberMark acquisition. Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2015 Net sales $ 984.0 Operating income 103.7 Income from continuing operations 61.7 Income (loss) from discontinued operations (9.4 ) Net income 52.3 Earnings (Loss) Per Common Share Basic Continuing operations $ 3.65 Discontinued Operations (0.56 ) $ 3.09 Diluted Continuing operations $ 3.60 Discontinued Operations (0.55 ) $ 3.05 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed. The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired. The Company tested goodwill for impairment as of November 30, 2017. The Company elected the option under ASC Topic 350, Intangibles — Goodwill and Other , to perform a qualitative assessment of the Company's reporting units to determine whether further impairment testing is necessary. In this qualitative assessment, the Company considered the following items for each of the reporting units: macroeconomic conditions, industry and market conditions, overall financial performance and other entity specific events. In addition, for each of these reporting units, the most recent fair value determination results in an amount that exceeds the carrying amount of the reporting units. Based on these assessments, the Company determined that the likelihood that a current fair value determination would be less than the current carrying amount of the reporting unit is not more likely than not. There was no impairment in the carrying value of goodwill for the years ended December 31, 2017 , 2016 and 2015 . Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment . Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 years. Certain trade names are estimated to have indefinite useful lives and as such are not amortized. Intangible assets with indefinite lives are reviewed for impairment at least annually. The following table presents the carrying value of goodwill by business segment and changes in the carrying value of goodwill. Technical Products Fine Paper and Other Gross Accumulated Gross Net Gross Amount Net Balance at December 31, 2015 $ 110.7 $ (45.1 ) $ 65.6 $ 6.2 $ 0.4 $ 72.2 Adjustment of goodwill acquired in the Fibermark Acquisition (1) (0.4 ) — (0.4 ) — — (0.4 ) Foreign currency translation (2.9 ) 1.5 (1.4 ) — — (1.4 ) Balance at December 31, 2016 107.4 (43.6 ) 63.8 6.2 0.4 70.4 Goodwill acquired in the Coldenhove Acquisition 10.0 — 10.0 — — 10.0 Foreign currency translation 10.9 (6.0 ) 4.9 — — 4.9 Balance at December 31, 2017 $ 128.3 $ (49.6 ) $ 78.7 $ 6.2 $ 0.4 $ 85.3 ___________________________ (1) As a result of finalizing the acquisition accounting for Fibermark in the first quarter of 2016, an adjustment of $ 0.4 million was recorded as a reduction to the net deferred tax liability and to goodwill. Other Intangible Assets As of December 31, 2017 , the Company had net identifiable intangible assets of $78.7 million . All such intangible assets were acquired in the acquisitions of Neenah Germany, Fox River, FiberMark, Coldenhove and the Crane technical materials business, and the acquisition of the Wausau and Southworth brands. The following table details amounts related to those assets. December 31, 2017 December 31, 2016 Gross Accumulated Gross Accumulated Amortizable intangible assets Customer based intangibles $ 39.2 $ (14.7 ) $ 34.4 $ (11.1 ) Trade names and trademarks 5.2 (2.3 ) 6.8 (4.2 ) Acquired technology 17.2 (3.9 ) 14.6 (2.7 ) Total amortizable intangible assets 61.6 (20.9 ) 55.8 (18.0 ) Trade names 38.0 — 36.2 — Total $ 99.6 $ (20.9 ) $ 92.0 $ (18.0 ) The following table presents intangible assets acquired in conjunction with the Coldenhove acquisition: Intangibles Estimated Useful Intangible assets — definite lived Trade names and trademarks $ 0.5 10 Customer based intangibles 2.9 15 Acquired technology 1.3 4 Total 4.7 Non-amortizable trade names 1.2 Total intangible assets $ 5.9 As of December 31, 2017 , all of such intangible assets are reported within the Technical Products segment. See Note 14, "Business Segment and Geographic Information." Aggregate amortization expense of acquired intangible assets for the years ended December 31, 2017 , 2016 and 2015 was $3.7 million , $3.9 million and $2.9 million , respectively and was reported in Cost of products sold on the Consolidated Statement of Operations. Estimated amortization expense for the years ended December 31, 2018 , 2019 , 2020 , 2021 and 2022 is $3.9 million , $3.9 million , $3.9 million , $3.7 million and $3.0 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes . Income tax expense represented 12.4 percent , 28.7 percent and 32.7 percent of income from continuing operations before income taxes for the years ended December 31, 2017 , 2016 and 2015 , respectively. On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the "Tax Act". The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes and changing how foreign earnings are subject to U.S. tax. The Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. The Company has not completed our determination of the accounting implications of the Tax Act on its tax accruals. However, the Company reasonably estimated the effects of the Tax Act and recorded provisional amounts in the financial statements as of December 31, 2017. Consistent with guidance issued by the Securities Exchange Commission ("SEC"), which provides for a measurement period of one year from the enactment date to finalize the accounting for effects of the Tax Act, the Company provisionally recorded an income tax benefit of $6.5 million related to the Tax Act. This amount is comprised of a $10.3 million tax benefit from the remeasurement of federal net deferred tax liabilities resulting from the reduction in the U.S. statutory corporate tax rate to 21% from 35%, less $3.8 million of tax expense from the mandatory one-time tax on the accumulated earnings of its foreign subsidiaries. As the Company completes its analysis of the Tax Act, collects and prepares necessary data and interprets any additional guidance issued by the U.S. Treasury Department, the IRS and other standard-setting bodies, adjustments to the provisional amounts may be required. In addition, adjustments to the provisional amounts may be needed to reflect legislative actions by the various U.S. states related to application of the Tax Act provisions on 2017 state tax returns. These adjustments could significantly impact the Company’s provision for income taxes in the period in which the adjustments are made. In conjunction with the Tax Act, The Company early adopted ASU 2018-02 in the fourth quarter of 2017 and accordingly reclassified $10.9 million related to stranded tax effects resulting from the Tax Act from AOCI to retained earnings. See Note 10, "Stockholders' Equity." For the Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Act, a provisional estimate could not be made as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. In accordance with SEC guidance, provisional amounts may be refined as a result of additional guidance from, and interpretations by, U.S. regulatory and standard-setting bodies and changes in assumptions. In June 2017, as part of our annual strategic plan review, the Company reassessed its intentions regarding the indefinite reinvestment of undistributed earnings of our German operations and asserted its intent to indefinitely reinvest them. As a result, the Company did not provide deferred income taxes on the 2017 unremitted earnings of our German operations. In addition, in the second quarter of 2017, the deferred tax liability of $4.1 million which was recorded in 2016 on unremitted German earnings was eliminated with a reduction to income tax expense. As noted above, the Tax Act includes a mandatory one-time tax on unremitted accumulated earnings of all foreign subsidiaries, and as a result, all previously unremitted earnings are now subject to U.S. tax and a liability of $3.8 million was recorded thereon as of December 31, 2017. Beginning in 2018, the Tax Act will generally provide a 100% deduction for U.S. federal tax purposes of dividends received by the Company from its foreign subsidiaries. The Company is currently evaluating the potential U.S. federal and state and foreign tax liabilities that would result from future repatriations, if any, and how the Tax Act will affect the Company's existing accounting assertion with regard to the indefinite reinvestment of undistributed foreign earnings. The Company will complete this evaluation and determine the impacts, if any, of U.S. federal and state and foreign legislation on its indefinite reinvestment assertion within the one-year measurement period. The following table presents the principal reasons for the difference between the Company's effective income tax rate and the U.S. federal statutory income tax rate: Year Ended December 31, 2017 2017 2016 2016 2015 2015 U.S. federal statutory income tax rate 35.0 % $ 32.1 35.0 % $ 36.1 35.0 % $ 31.5 U.S. state income taxes, net of federal income tax benefit 1.9 % 1.7 1.9 % 2.0 2.1 % 1.9 Tax on foreign dividends (a) (0.3 )% (0.3 ) 4.5 % 4.6 3.6 % 3.2 Foreign tax rate differences (b) (3.4 )% (3.1 ) (2.7 )% (2.8 ) (2.2 )% (2.0 ) Foreign financing structure (c) (2.2 )% (2.0 ) (1.6 )% (1.7 ) (1.3 )% (1.2 ) Excess tax benefits from stock compensation (4.9 )% (4.5 ) (3.0 )% (3.1 ) — — Research and development and other tax credits (d) (3.3 )% (3.0 ) (2.8 )% (2.9 ) (3.9 )% (3.5 ) Domestic production activities deduction (0.6 )% (0.5 ) (1.5 )% (1.5 ) (2.2 )% (2.0 ) Uncertain income tax positions 0.8 % 0.7 (0.4 )% (0.4 ) 1.3 % 1.2 Change in statutory tax rates (e) (10.6 )% (9.7 ) — % — — % — Other differences — net — % — (0.7 )% (0.7 ) 0.3 % 0.3 Effective income tax rate 12.4 % $ 11.4 28.7 % $ 29.6 32.7 % $ 29.4 _______________________ (a) For 2017, the amount reflects the net benefit of the indefinite reinvestment assertion of $4.1 million , less the $3.8 mandatory one-time tax on the accumulated earnings of foreign subsidiaries from the Tax Act. (b) Represents the impact on the Company's effective tax rate due to changes in the mix of earnings among taxing jurisdictions with differing statutory rates. (c) Represents the impact on the Company's effective tax rate of the Company's financing strategies. (d) For 2015, the Company recognized a $1.4 million benefit related to research and development ("R&D") tax credits of FiberMark for the period 2012 through July 2015. (e) Represents the net benefit from remeasurement of the net deferred tax liabilities, including a tax benefit of $10.3 million from the Tax Act, less $0.6 million of tax expense from a state tax rate change in Germany. The Company's effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in taxing jurisdictions with differing statutory rates, the availability of R&D and other tax credits, changes in corporate structure as a result of business acquisitions and dispositions, changes in the valuation of deferred tax assets and liabilities, the results of audit examinations of previously filed tax returns and changes in tax laws. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and foreign jurisdictions. The Company is no longer subject to U.S. federal examination for years before 2014, to state and local examinations for years before 2013 and to non-U.S. income tax examinations for years before 2012. The following table presents the U.S. and foreign components of income from continuing operations before income taxes: Year Ended December 31, 2017 2016 2015 Income from continuing operations before income taxes: U.S. $ 53.6 $ 68.3 $ 62.2 Foreign 38.1 34.7 27.7 Total $ 91.7 $ 103.0 $ 89.9 The following table presents the components of the provision (benefit) for income taxes: Year Ended December 31, 2017 2016 2015 Provision (benefit) for income taxes: Current: Federal $ 4.7 $ 7.1 $ 12.7 State 0.5 (0.5 ) 1.3 Foreign 6.4 5.9 5.1 Total current tax provision 11.6 12.5 19.1 Deferred: Federal (1.8 ) 14.8 7.7 State (0.1 ) 1.8 2.3 Foreign 1.7 0.5 0.3 Total deferred tax provision (0.2 ) 17.1 10.3 Total provision for income taxes $ 11.4 $ 29.6 $ 29.4 The federal deferred tax provision was reduced by a net $8.1 million as a result of the Tax Act and the German tax rate increase. This amount includes $10.3 million of tax rate reduction from the Tax Act, less $0.6 million from the German tax rate increase, less $1.6 million of impact of the mandatory one-time tax on the accumulated earnings of foreign subsidiaries from the Tax Act. The remaining $2.2 million of impact of the mandatory one-time tax on foreign earnings increased the federal current tax provision. The Company has elected to treat its Canadian operations as a branch for U.S. income tax purposes. Therefore, the amount of income (loss) before income taxes from Canadian operations are included in the Company's consolidated U.S. income tax returns and such amounts are subject to U.S. income taxes. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The components of deferred tax assets and liabilities, net of reserves for uncertain tax positions and valuation allowances, are as follows: December 31, 2017 2016 Deferred income tax assets (liabilities) Research and development tax credits $ 6.6 $ 15.0 Net operating losses and credits 4.2 10.5 Employee benefits 1.1 26.0 Inventories 0.2 (0.5 ) Accrued liabilities 0.1 3.2 Intangibles (0.5 ) (10.8 ) Accelerated depreciation (1.6 ) (34.0 ) Undistributed foreign earnings — (4.4 ) Other — 1.1 Net deferred income tax assets $ 10.1 $ 6.1 Deferred income tax assets (liabilities) Accelerated depreciation $ (45.1 ) $ (12.3 ) Intangibles (11.4 ) (2.8 ) Interest limitation — (0.3 ) Other 1.3 — Inventories 1.8 0.3 Accrued liabilities 1.9 — Net operating losses 5.0 — Research and development tax credits 8.6 — Employee benefits 22.9 5.0 Net deferred income tax liabilities $ (15.0 ) $ (10.1 ) As of December 31, 2017, the net deferred tax assets relate to the state of Wisconsin and the net deferred tax liabilities relate to U.S. federal and all other U.S. state jurisdictions, and operations of Germany, the Netherlands and the U.K. The presentation as of December 31, 2016 reflected net deferred tax assets of U.S. federal and state jurisdictions and the net deferred tax liabilities related to operations of Germany and the U.K. As of December 31, 2017 , the Company had $37.3 million of undistributed earnings (net of foreign taxes) of foreign subsidiaries. There were $12.5 million undistributed earnings (net of foreign taxes) of foreign subsidiaries as of December 31, 2016 . As of December 31, 2017 , the Company had $15.5 million of U.S. federal and $6.9 million of U.S. state R&D tax credits which, if not used, will expire between 2030 and 2037 for the U.S. federal R&D tax credits and between 2020 and 2032 for the state R&D tax credits. As of December 31, 2017 , we had $44.0 million of state NOLs which may be used to offset state taxable income. The NOLs are reflected in the consolidated financial statements as a deferred tax asset of $2.6 million . If not used, substantially all of the NOLs will expire in various amounts between 2018 and 2036 . The Company also had pre-acquisition and recognized built-in loss carryovers of $9.3 million , reflected as a deferred tax asset of $2.0 million . In addition, the Company had $3.1 million of federal Alternative Minimum Tax Credit carryovers, which under the Tax Act are fully refundable by no later than 2021. The following is a tabular reconciliation of the total amounts of uncertain tax positions as of and for the years ended December 31, 2017 , 2016 and 2015 : For the Years Ended 2017 2016 2015 Balance at January 1, $ 10.3 $ 12.9 $ 7.0 Increases in prior period tax positions 0.4 — 0.5 Decreases in prior period tax positions (1.0 ) (2.6 ) — Increases in current period tax positions 0.7 0.6 5.5 Decreases due to lapse of statute of limitations (1.0 ) (0.3 ) — Increases due to change in tax rates 0.4 — — Increases (decreases) from foreign exchange rate changes 0.2 (0.3 ) (0.1 ) Balance at December 31, $ 10.0 $ 10.3 $ 12.9 The $10.0 million of reserves for uncertain tax positions as of December 31, 2017 were reflected on the consolidated balance sheets as follows: $2.3 million netted against deferred tax assets, $5.3 million added to deferred tax liabilities and $2.4 million in other noncurrent obligations. The $10.3 million of reserves for uncertain tax positions as of December 31, 2016 were reflected on the consolidated balance sheets as follows: $7.6 million netted against deferred tax assets, $1.2 million netted against (added to) deferred tax liabilities and $1.5 million in other noncurrent obligations. If recognized, $9.6 million of the benefit for uncertain tax positions at December 31, 2017 would favorably affect the Company's effective tax rate in future periods. The Company does not expect that the expiration of the statute of limitations or the settlement of audits in the next 12 months will result in liabilities for uncertain income tax positions that are materially different than the amounts that were accrued as of December 31, 2017 . The Company recognizes accrued interest and penalties related to uncertain income tax positions in the Provision for income taxes on the consolidated statements of operations. As of December 31, 2017 and 2016 , the Company had $0.1 million and $0.2 million , respectively, accrued for interest and penalties related to uncertain income tax positions. As of December 31, 2017 , the Company had a valuation allowance of $0.4 million against its state NOLs. As of December 31, 2016 , the Company had a valuation allowance of $3.1 million against its state R&D tax credits and $0.4 million against its state NOLs. In determining the need for a valuation allowance, the Company considers many factors, including specific taxing jurisdictions, sources of taxable income, income tax strategies and forecasted earnings for the entities in each jurisdiction. A valuation allowance is recognized if, based on the weight of available evidence, the Company concludes that it is more likely than not that some portion or all of the deferred income tax asset will not be realized. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consisted of the following: December 31, 2017 2016 2021 Senior Notes (5.25% fixed rate) due May 2021 $ 175.0 $ 175.0 Global Revolving Credit Facilities (variable rates) due December 2019 76.9 42.9 Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 6.4 6.8 Deferred financing costs (2.8 ) (3.8 ) Total Debt 255.5 220.9 Less: Debt payable within one year 1.4 1.2 Long-term debt $ 254.1 $ 219.7 Unsecured Senior Notes 2021 Senior Notes In May 2013, the Company completed an underwritten offering of eight -year senior unsecured notes (the "2021 Senior Notes") at a face amount of $175 million . The 2021 Senior Notes bear interest at a rate of 5.25% , payable in arrears on May 15 and November 15 of each year, commencing on November 15, 2013, and mature on May 15, 2021. Proceeds from this offering were used to redeem the remaining $70 million outstanding principal amount of ten -year 7.375% senior unsecured notes, originally issued on November 30, 2004, to repay approximately $56 million in outstanding revolving credit agreement borrowings and for general corporate purposes. The 2021 Senior Notes are fully and unconditionally guaranteed by substantially all of the Company's domestic subsidiaries (the "Guarantors"). The 2021 Senior Notes were sold in a private placement transaction, have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from registration requirements. The 2021 Senior Notes rank equally in right of payment with all the Company's existing and future senior unsecured indebtedness. The guarantees of the 2021 Senior Notes are senior unsecured obligations of the Guarantors and rank equally in right of payment with all existing and future senior unsecured indebtedness of the Guarantors. The 2021 Senior Notes and the guarantees of the 2021 Senior Notes are effectively subordinated to the Company's and the Guarantors' existing and future secured indebtedness (to the extent of the value of the collateral) and are structurally subordinated to all indebtedness and other obligations of the Company's subsidiaries that do not guarantee the 2021 Senior Notes, including the trade creditors of such non-guarantor subsidiaries. The 2021 Senior Notes contain terms, covenants and events of default with which the Company must comply, which the Company believes are ordinary and standard for notes of this nature. Among other things, the 2021 Senior Notes contain covenants restricting the Company's ability to incur certain additional debt, make specified restricted payments, pay dividends, authorize or issue capital stock, enter into transactions with the Company's affiliates, consolidate or merge with or acquire another business, sell certain of the Company's assets or liquidate, dissolve or wind-up the Company. As of December 31, 2017 , the Company was in compliance with all terms of the indenture for the 2021 Senior Notes. Amended and Restated Secured Revolving Credit Facility In December 2014, the Company amended and restated its existing credit facility by entering into the Third Amended and Restated Credit Agreement (the "Third Amended Credit Agreement") by and among the Company and certain of its domestic subsidiaries as the "Domestic Borrowers", Neenah Services GmbH & Co. KG ("Neenah Services") and certain of its German subsidiaries as the "German Borrowers", certain other subsidiaries as the "German Guarantors", the financial institutions signatory to the Third Amended Credit Agreement as lenders (the "Lenders"), and JPMorgan Chase Bank, N.A., as agent for the Lenders (the "Administrative Agent"). On August 30, 2017, the Company amended the Third Amended Credit Agreement, among other things, to make certain definitional and administrative changes to address definition of EBITDA, Inter-Company Loans and Permitted Offshore Acquisitions, as further defined in the Third Amended Credit Agreement, in order to enable the Company to more efficiently operate and grow in international markets. On December 14, 2017, the Company amended the Third Amended and Restated Credit Agreement, among other things, to make certain definitional and administrative changes to the definition of Fixed Charge Coverage Ratio and amend certain restrictive covenants to reflect the financing structure of the Company's acquisition of Coldenhove. The Third Amended Credit Agreement, among other things: (1) increased the maximum principal amount of the existing credit facility for the Domestic Borrowers to $125 million (the "U.S. Revolving Credit Facility"); (2) established a secured, multicurrency, revolving credit facility for the German Borrowers in the maximum principal amount of $75 million (the "German Revolving Credit Facility," and together with the U.S. Revolving Credit Facility, the "Global Revolving Credit Facilities"); (3) caused the Company and the other Domestic Borrowers to guarantee, among other things, the obligations of the German Borrowers arising under the German Revolving Credit Facility; (4) provides for the Global Revolving Credit Facilities to mature on December 18, 2019; and (5) provides for an accordion feature permitting one or more increases in the Global Revolving Credit Facilities in an aggregate principal amount not exceeding $50 million , such that the aggregate commitments under the Global Revolving Credit Facilities do not exceed $250 million . In addition, the Domestic Borrowers may request letters of credit under the U.S. Revolving Credit Facility in an aggregate face amount not to exceed $20 million outstanding at any time, and the German Borrowers may request letters of credit under the German Revolving Credit Facility in an aggregate face amount not to exceed $2 million outstanding at any time. Proceeds of borrowings under the Global Revolving Credit Facilities may be used to finance working capital needs, permitted acquisitions, permitted investments (including certain inter-company loans), certain dividends, distributions and other restricted payments, and for other general corporate purposes. The consolidated statements of cash flows present borrowings and repayments under the Global Revolving Credit Facilities and the predecessor revolving bank credit facility using a gross approach. This approach presents not only discrete borrowings for transactions such as a business acquisition, but also reflects all borrowings and repayments that occur as part of daily management of cash receipts and disbursements. For the year ended December 31, 2017 , $31 million was borrowed in conjunction with the Coldenhove Acquisition and the remaining $293 million included borrowings for daily cash management. For the year ended December 31, 2016 , all of the borrowings related to daily cash management. For the year ended December 31, 2015 , $38.0 million was borrowed in conjunction with the FiberMark Acquisition and the remaining $113.6 million included borrowings for daily cash management. The right of the Domestic Borrowers to borrow and obtain letters of credit under the U.S. Revolving Credit Facility is subject to, among other things, the borrowing base of the Domestic Borrowers on a consolidated basis (the "Domestic Borrowing Base"). The right of the German Borrowers to borrow and obtain letters of credit under the German Revolving Credit Facility is similarly subject to a borrowing base requirement (the "German Borrowing Base"). The German Borrowing Base is initially determined on a combined basis for all German Borrowers. Under certain circumstances (including the occurrence of an event of default resulting from an act or omission of any German Borrower or German Guarantor), the Administrative Agent may require the German Borrowing Base to be determined separately for each of the German Borrowers. At its option the Company may, from time to time, allocate a portion of the Domestic Borrowing Base to the German Borrowing Base (resulting in a corresponding reduction of the Domestic Borrowing Base); however, the principal amount of borrowings and the outstanding letter of credit exposure under the German Revolving Credit Facility may not at any time exceed the German Revolving Credit Facility commitment amount then in effect. The guarantees of the German Guarantors are limited solely to the German Revolving Credit Facility obligations. Under the terms of the Third Amended Credit Agreement and related loan documentation, neither the German Borrowers nor the German Guarantors (collectively, the "German Loan Parties") will be liable for any obligations relating to the U.S. Revolving Credit Facility. The Global Revolving Credit Facilities are secured by liens on all or substantially all of the assets of the Domestic Borrowers. The German Revolving Credit Facility is secured by liens on all or substantially all of the assets of the German Borrowers and certain assets of the German Guarantors. Any liens granted by the German Loan Parties secure only the German Revolving Credit Facility obligations. Terms, Covenants and Events of Default. In general, borrowings under the Global Revolving Credit Facilities will bear interest at LIBOR (which cannot be less than zero percent ) plus an applicable margin ranging from 1.50% to 2.00% , depending on the amount of availability under the Third Amended Credit Agreement. In addition, the Company may elect an Alternate Borrowing Rate ("ABR") for borrowings under the Global Revolving Credit Facilities. ABR borrowings under the Global Revolving Credit Facilities will bear interest at the highest interest rate shown in the following table: Applicable Margin U.S. Revolving Credit Facility German Revolving Credit Facility Prime rate 0.00%-0.50% Not applicable Federal funds rate +0.50% 0.00%-0.50% Not applicable Monthly LIBOR (which cannot be less than zero percent) +1.00% 0.00%-0.50% Not applicable Overnight LIBOR (which cannot be less than zero percent) Not applicable 1.50%-2.00% The Company is also required to pay a monthly commitment fee on the unused amounts available under the Global Revolving Credit Facilities at a per annum rate of 0.25% . If aggregate availability under the Global Revolving Credit Facilities is less than the greater of (i) $20 million and (ii) 10% of the maximum aggregate commitments under the Global Revolving Credit Facilities as then in effect, the Company is required to comply with a fixed charge coverage ratio (as defined in the Third Amended Credit Agreement) of not less than 1.1 to 1.0 for the preceding four-quarter period, tested as of the end of each quarter. Such compliance, once required, would no longer be necessary once (x) aggregate availability under the Global Revolving Credit Facilities exceeds the greater of (i) 17.5% of the aggregate commitment for the Global Revolving Credit Facilities and (ii) $35 million for 60 consecutive days and (y) no default or event of default has occurred and is continuing during such 60 -day period. As of December 31, 2017 , aggregate availability under the Global Revolving Credit Facilities exceeded the minimum required amount, and the Company is not required to comply with such fixed charge coverage ratio. The Third Amended Credit Agreement contains covenants, which the Company believes are ordinary and standard for agreements of this nature, with which the Company and its subsidiaries must comply during the term of the agreement. Among other things, such covenants restrict the ability of the Company and its subsidiaries to incur certain debt, incur or create certain liens, make specified restricted payments, authorize or issue capital stock, enter into transactions with their affiliates, consolidate, merge with or acquire another business, sell certain of their assets, or dissolve or wind up. In addition, if the aggregate availability under the Global Revolving Credit Facilities is less than the greater of (i) $25 million and (ii) 12.5% of the maximum aggregate commitments under the Global Revolving Credit Facilities as then in effect, the Company will be subject to increased reporting obligations and controls until such time as availability is more than the greater of (a) $35 million and (b) 17.5% of the maximum aggregate commitments under the Global Revolving Credit Facilities as then in effect. Under the most restrictive terms of the Third Amended and Restated Credit Agreement, we are permitted to pay cash dividends on or repurchase shares of our common stock up to the amount available under the Third Amended and Restated Credit Agreement, as long as the availability under the Third Amended and Restated Credit Agreement exceeds $25 million . If the availability is below $25 million , we are restricted from paying dividends or repurchasing shares. As of December 31, 2017, the Company's availability exceeded $25 million , so this restriction did not apply. The Third Amended Credit Agreement also contains events of default customary for financings of this type, including failure to pay principal or interest, materially false representations or warranties, failure to observe covenants and certain other terms of the Third Amended Credit Agreement, cross-defaults to certain other indebtedness, bankruptcy, insolvency, various ERISA and foreign pension violations, the incurrence of material judgments and changes in control. Availability under the Global Revolving Credit Facilities varies over time depending on the value of the Company's inventory, receivables and various capital assets. As of December 31, 2017 , the Company had $76.9 million of borrowings and $0.9 million in letters of credit outstanding under the Global Revolving Credit Facilities and $91.9 million of available credit (based on exchanges rates at December 31, 2017 ). As of December 31, 2017 and 2016 , the weighted-average interest rate on outstanding Revolver borrowings was 2.7 percent and 2.8 percent per annum, respectively. Under the most restrictive terms of the 2021 Senior Notes, the Company is permitted to pay cash dividends of up to $25 million in a calendar year, but not permitted to repurchase shares of the Company's common stock. However, as long as the net leverage ratio (net debt/EBITDA) under the 2021 Senior Notes is below 2.5 x, the Company can pay dividends or repurchase shares without limitation. In the event the net leverage ratio exceeds 2.5 x, the Company may still pay dividends in excess of $25 million or repurchase shares by utilizing "restricted payment baskets" as defined in the indenture for the 2021 Senior Notes. As of December 31, 2017, since the Company's leverage ratio was less than 2.5 x, none of these covenants were restrictive to the Company's ability to pay dividends on or repurchase shares of the Company's common stock. Other Debt In January 2013, Neenah Germany entered into a project financing agreement for the construction of a melt blown machine (the "Second German Loan Agreement"). The agreement provides for €9.0 million of construction financing which is secured by the melt blown machine. The loan matures in September 2022 and principal is repaid in equal quarterly installments beginning in December 2014. The interest rate on amounts outstanding is 2.45% based on actual days elapsed in a 360 -day year and is payable quarterly. At December 31, 2017 , €5.3 million ( $6.4 million , based on exchange rates at December 31, 2017 ) was outstanding under the Second German Loan Agreement. Principal Payments The following table presents the Company's required debt payments: 2018 2019 2020 2021 2022 Thereafter Total Debt payments $ 1.4 $ 78.2 $ 1.3 $ 176.4 $ 1.0 $ — $ 258.3 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Pension Plans Substantially all active employees of the Company's U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. The Company also has defined benefit plans and/or alternative retirement plans for substantially all its employees in Germany, the U.K, and the Netherlands. In addition, the Company maintains a SERP which is a non-qualified defined benefit plan. The Company provides benefits under the SERP to the extent necessary to fulfill the intent of its defined benefit retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined benefit plans. During 2017, the Company recorded a $0.6 million settlement loss in SERP for a total payment of $1.3 million . During 2016, the Company offered a lump sum payout option to all eligible U.S. participants with a deferred vested pension benefit (the participant had a vested pension benefit but was no longer an employee of the Company). For the year ended December 31, 2016, 265 individuals elected the option and the Company paid a total of $ 8.1 million in lump-sum payments. For the year ended December 31, 2016, as allowed under ASC Topic 715, Compensation — Retirement Benefits ("ASC Topic 715"), the Company adopted a policy to recognize settlement losses for deferred vested pension benefit payments regardless of whether the amount exceeded the sum of expected service cost and interest costs of the pension plan for the respective calendar year. In accordance with ASC Topic 715, for the year ended December 31, 2016, the Company measured the liabilities of the post-retirement benefit plans and recognized a settlement loss of $ 0.8 million . The Company's funding policy for its U.S. qualified defined benefit plans and its U.K. defined benefit plan is to contribute assets in compliance with regulatory requirements to fund the projected benefit obligation. Nonqualified plans providing pension benefits in excess of limitations imposed by taxing authorities are not funded. There is no legal or governmental obligation to fund Neenah Germany's benefit plans and as such the Neenah Germany defined benefit plans are currently unfunded. As of December 31, 2017 , Neenah Germany had investments of $1.7 million that were restricted to the payment of certain post-retirement employee benefits. As of December 31, 2017 , $0.6 million and $1.1 million of such investments are classified as Prepaid and other current assets and Other assets, respectively, on the consolidated balance sheet. Neenah Coldenhove retirement benefit obligations are administered by a third-party insurance company, and funding for these benefits comes from premiums paid. The Company also holds $3.6 million of marketable securities that are designated for the payment of benefits under the SERP as of December 31, 2017 , classified as Other assets on the consolidated balance sheet. The Company uses the fair value of pension plan assets to determine pension expense, rather than averaging gains and losses over a period of years. Investment gains or losses represent the difference between the expected return calculated using the fair value of the assets and the actual return based on the fair value of assets. The Company's pension obligations are measured annually as of December 31. Multi-Employer plan The hourly employees of the Lowville, New York facility are covered by a multi-employer defined benefit plan. The Company's expense under this plan was less than $0.1 million for the year ended December 31, 2017 . The Company contributes to the multi-employer pension plan under a collective bargaining agreement which provides retirement benefits for certain union employees. The risks of participating in a multi-employer plan are different from single employer plans, as assets contributed are available to provide benefits to all participants of the plan (including employees of other employers) and unfunded obligations are the responsibility of all remaining employers. In the event the Company ceases participation or in the event of the multi-employer plan's termination, the Company may be liable for a portion of the multi-employer plan’s unfunded benefits. The most recent Pension Protection Act zone status available is for the plan's year-end at December 31, 2016 . The zone status in the following table is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. Information for the multi-employer pension plan in which the Company participates is shown in the table below. The "FIP/RP Status Pending/Implemented" column indicates a financial improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or has been implemented for the plan. For the year ended December 31, 2016 , the Company's contributions to the plan were less than 5% of total plan contributions. Pension Fund EIN/Pension Plan Number Pension Zone Status 2016 FIP/RP Status Pending or Implemented Contributions 2017 Surcharge Imposed ExpirationDate of Collective Bargaining Agreement PACE Industry Union Management Pension Fund 11-6166763 Red Implemented $0.1 million Yes 11/9/2021 Other Postretirement Benefit Plans The Company maintains postretirement health care and life insurance benefit plans for active employees of the Company and former employees of the Canadian pulp operations. The Canadian plans are generally noncontributory for employees who were eligible to retire on or before December 31, 1992 and contributory for most employees who became eligible to retire on or after January 1, 1993. The Company does not provide a subsidized benefit to non-union U.S. employees hired after 2003 or collectively bargained employees after 2005. The Company's obligations for postretirement benefits other than pensions are measured annually as of December 31. At December 31, 2017 , the assumed inflationary health care cost trend rates used to determine obligations at December 31, 2017 and costs for the year ended December 31, 2018 is 6.8 percent gradually decreasing to an ultimate rate of 4.5 percent in 2037. The assumed inflationary health care cost trend rates used to determine obligations at December 31, 2016 and costs for the year ended December 31, 2017 were 7.0 percent gradually decreasing to an ultimate rate of 4.5 percent in 2037. The following table reconciles the benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans. Pension Benefits Postretirement Year Ended December 31, 2017 2016 2017 2016 Change in Benefit Obligation: Benefit obligation at beginning of year $ 370.9 $ 360.1 $ 40.7 $ 40.5 Service cost 5.5 4.9 1.2 1.3 Interest cost 15.0 15.9 1.4 1.6 Currency 6.8 (3.1 ) 0.6 0.1 Actuarial (gain) loss 33.3 18.2 3.9 (1.2 ) Benefit payments from plans (18.1 ) (17.1 ) (3.8 ) (3.8 ) Settlement payments (1.5 ) (8.1 ) — — Net transfer in (1) 51.7 0.1 — — Other 0.3 — — 2.2 Benefit obligation at end of year $ 463.9 $ 370.9 $ 44.0 $ 40.7 Change in Plan Assets: Fair value of plan assets at beginning of year $ 318.1 $ 308.3 $ — $ — Actual gain (loss) on plan assets 38.5 17.6 — — Employer contributions 14.3 17.8 — — Currency 2.2 (1.7 ) — — Benefit payments (18.1 ) (15.8 ) — — Settlement payments (1.5 ) (8.1 ) — — Net transfers in (1) 46.8 — — — Other 0.1 — — — Fair value of plan assets at end of year $ 400.4 $ 318.1 $ — $ — Reconciliation of Funded Status Fair value of plan assets $ 400.4 $ 318.1 $ — $ — Projected benefit obligation 463.9 370.9 44.0 40.7 Net liability recognized in statement of financial position $ (63.5 ) $ (52.8 ) $ (44.0 ) $ (40.7 ) Amounts recognized in statement of financial position consist of: Current liabilities $ (3.7 ) $ (3.8 ) $ (5.3 ) $ (4.3 ) Noncurrent liabilities (59.8 ) (49.0 ) (38.7 ) (36.4 ) Net amount recognized $ (63.5 ) $ (52.8 ) $ (44.0 ) $ (40.7 ) _______________________ (1) For the year ended December 31, 2017 , the Company acquired $51.7 million of pension liabilities and $46.8 million of pension assets in conjunction with the Coldenhove Acquisition. Amounts recognized in accumulated other comprehensive income consist of: Pension Postretirement December 31, 2017 2016 2017 2016 Accumulated actuarial loss $ 105.9 $ 95.8 $ 8.6 $ 4.9 Prior service cost 0.8 0.9 (0.2 ) (0.4 ) Total recognized in accumulated other comprehensive income $ 106.7 $ 96.7 $ 8.4 $ 4.5 Summary disaggregated information about the pension plans follows: December 31, Assets Exceed ABO ABO Exceed Assets Total 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ — $ 291.3 $ 463.9 $ 79.6 $ 463.9 $ 370.9 Accumulated benefit obligation — 281.5 451.4 79.4 451.4 360.9 Fair value of plan assets — 284.2 400.4 33.9 400.4 318.1 Components of Net Periodic Benefit Cost Pension Benefits Postretirement Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ 5.5 $ 4.9 $ 5.5 $ 1.2 $ 1.3 $ 1.7 Interest cost 15.0 15.9 13.8 1.4 1.6 1.6 Expected return on plan assets (a) (19.9 ) (18.9 ) (19.3 ) — — — Recognized net actuarial loss 5.6 6.6 6.3 0.3 0.6 0.3 Amortization of prior service cost (credit) 0.2 0.2 0.2 (0.2 ) (0.2 ) (0.2 ) Amount of settlement loss recognized 0.6 0.8 — — — — Net periodic benefit cost (credit) 7.0 9.5 6.5 2.7 3.3 3.4 Amounts related to discontinued operations — — (14.9 ) — — — Net periodic benefit cost $ 7.0 $ 9.5 $ (8.4 ) $ 2.7 $ 3.3 $ 3.4 _______________________ (a) The expected return on plan assets, excluding the Dutch plan assets, is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. The Dutch pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations. Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Pension Benefits Postretirement Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Net periodic benefit expense $ 7.0 $ 9.5 $ (8.4 ) $ 2.7 $ 3.3 $ 3.4 Accumulated actuarial gain (loss) 10.1 11.7 (7.1 ) 3.7 (0.9 ) 1.1 Prior service cost (credit) (0.1 ) (0.3 ) (0.3 ) 0.2 0.1 0.2 Total recognized in other comprehensive income 10.0 11.4 (7.4 ) 3.9 (0.8 ) 1.3 Total recognized in net periodic benefit cost and other comprehensive income $ 17.0 $ 20.9 $ (15.8 ) $ 6.6 $ 2.5 $ 4.7 The estimated net actuarial loss and prior service cost for the defined benefit pension plans expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $5.4 million and $0.2 million , respectively. The estimated net actuarial loss and prior service (credit) for postretirement benefits other than pensions expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $0.6 million and $(0.2) million , respectively. Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Pension Benefits Postretirement Benefits Other than Pensions 2017 2016 2017 2016 Discount rate 3.49 % 4.16 % 3.27 % 3.69 % Rate of compensation increase 2.40 % 2.22 % — % — % Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.18 % 4.54 % 3.91 % 3.89 % 4.07 % 4.05 % Expected long-term return on plan assets (a) 6.31 % 6.20 % 6.50 % — % — % — % Rate of compensation increase 2.49 % 2.18 % 2.92 % — % — % — % _______________________ (a) The expected long-term return on plan assets does not include the Dutch plan assets. The Dutch pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations. Expected Long-Term Rate of Return and Investment Strategies The expected long-term rate of return on pension fund assets held by the Company's pension trusts was determined based on several factors, including input from pension investment consultants and projected long-term returns of broad equity and bond indices. Also considered were the plans' historical compounded annual returns. It is anticipated that, on average, the managed pension plan assets will generate annual long-term rates of return of 6.30 percent . The expected long-term rate of return on the assets in the plans was based on an asset allocation assumption of approximately 35 percent with equity managers, with expected long-term rates of return of approximately 8 to 10 percent , 8 percent with hedge funds, with expected long-term rates of return of approximately 6 to 8 percent , and 57 percent with fixed income managers, with an expected long-term rate of return of about 3 to 5 percent . The actual asset allocation is regularly reviewed and periodically rebalanced to the targeted allocation when considered appropriate. Plan Assets Pension plan asset allocations are as follows: Percentage of Plan 2017 2016 Asset Category (a) Equity securities 35 % 36 % Hedge fund 8 % 7 % Debt securities 57 % 57 % Total 100 % 100 % (a) The asset categories do not include the insurance contract related to the Dutch pension plan. The Company's investment objective for pension plan assets are to ensure, over the long-term life of the pension plans, an adequate pool of assets to support the benefit obligations to participants, retirees, and beneficiaries. Specifically, these objectives include the desire to: (a) invest assets in a manner such that future assets are available to fund liabilities, (b) maintain liquidity sufficient to pay current benefits when due and (c) diversify, over time, among asset classes so assets earn a reasonable return with acceptable risk to capital. The weighted average target investment allocation and permissible allocation range for plan assets by category are as follows: Strategic Target Permitted Range Asset Category Equity securities 35 % 30-40% Hedge fund 8 % 3-12% Debt securities / Fixed Income 57 % 52-62% As of December 31, 2017 , no company or group of companies in a single industry represented more than five percent of plan assets. The Company's investment assumptions are established by an investment committee composed of members of senior management and are validated periodically against actual investment returns. As of December 31, 2017 , the Company's investment assumptions are as follows: (a) The plan should be substantially fully invested in debt and equity securities at all times because substantial cash holdings will reduce long-term rates of return; (b) Equity investments will provide greater long-term returns than fixed income investments, although with greater short-term volatility; (c) It is prudent to diversify plan investments across major asset classes; (d) Allocating a portion of plan assets to foreign equities will increase portfolio diversification, decrease portfolio risk and provide the potential for long-term returns; (e) Investment managers with active mandates can reduce portfolio risk below market risk and potentially add value through security selection strategies, and a portion of plan assets should be allocated to such active mandates; (f) A component of passive, indexed management can benefit the plans through greater diversification and lower cost, and a portion of the plan assets should be allocated to such passive mandates, and (g) It is appropriate to retain more than one investment manager, given the size of the plans, provided that such managers offer asset class or style diversification. For the years ended December 31, 2017 , 2016 and 2015 , no plan assets were invested in the Company's securities. Cash Flows At December 31, 2017 , the Company expects to make aggregate contributions to qualified pension trusts and payments of pension benefits for unfunded pension plans in 2018 of approximately $14.7 million (based on exchange rates at December 31, 2017 ). Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Plans Postretirement Benefits Other than Pensions 2018 $ 22.7 $ 5.3 2019 24.4 4.3 2020 21.7 4.6 2021 23.4 4.9 2022 23.3 4.8 Years 2023-2027 128.1 18.1 Health Care Cost Trends Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans. A one percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage- Point Increase Decrease Effect on total of service and interest cost components $ — $ — Effect on post-retirement benefit other than pension obligation 0.2 (0.3 ) Defined Contribution Retirement Plans Company contributions to defined contribution retirement plans are primarily based on the age and compensation of covered employees. Contributions to these plans, all of which were charged to expense, were $2.5 million in 2017 , $2.7 million in 2016 and $2.5 million in 2015 . In addition, the Company maintains a supplemental retirement contribution plan (the "SRCP") which is a non-qualified, unfunded defined contribution plan. The Company provides benefits under the SRCP to the extent necessary to fulfill the intent of its defined contribution retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined contribution plans. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized expense related to the SRCP of $0.4 million , $0.4 million and $0.2 million , respectively. At December 31, 2017 and December 31, 2016 , the unfunded obligation of the SRCP was $1.7 million and $1.3 million , respectively. Investment Plans The Company provides voluntary contribution investment plans to substantially all North American employees. Under the plans, the Company matches a portion of employee contributions. For the years ended December 31, 2017 , 2016 and 2015 , costs charged to expense for Company matching contributions under these plans were $3.7 million , $3.1 million and $2.7 million , respectively. |
Stock Compensation Plan
Stock Compensation Plan | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plan | $60.56 143,589 8.5 $ 82.11 1.2 17,060 $ 82.15 0.1 464,958 6.6 $ 55.60 $ 16.3 241,944 $ 40.59 $ 12.1 _______________________ (a) Represents the total pre-tax intrinsic value as of December 31, 2017 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $90.65 on December 31, 2017 . The aggregate pre-tax intrinsic value of stock options exercised for the years ended December 31, 2017 , 2016 and 2015 was $11.5 million , $4.7 million and $5.5 million , respectively. The following table summarizes the status of the Company's unvested stock options as of December 31, 2017 and activity for the year then ended: Number of Weighted-Average Outstanding — December 31, 2016 194,126 $ 15.15 Add: Options granted 144,089 $ 13.54 Less: Options vested 115,201 $ 14.06 Outstanding — December 31, 2017 223,014 $ 13.87 As of December 31, 2017 , certain participants met age and service requirements that allowed their options to qualify for accelerated vesting upon retirement. As of December 31, 2017 , there were approximately 155,000 stock options subject to accelerated vesting that such participants would have been eligible to exercise if they had retired as of such date. The aggregate grant date fair value of options subject to accelerated vesting was $2.1 million . For the year ended December 31, 2017 , stock-based compensation expense for such options was $1.2 million . For the year ended December 31, 2017 , the aggregate grant date fair value of options vested, including options subject to accelerated vesting, was $1.9 million . Stock options that reflect accelerated vesting for expense recognition become exercisable according to the contract terms of the stock option grant. PSUs/RSUs For the year ended December 31, 2017 , the Company granted target awards of 41,883 PSUs. The measurement period for three fourths of the PSUs is January 1, 2017 through December 31, 2017, and for the remaining fourth of the PSUs is January 1, 2017 through December 31, 2019. The PSUs vest on December 31, 2019. Common Stock equal to not less than 40 percent and not more than 200 percent of the PSUs target will be awarded based on the Company’s return on invested capital, consolidated revenue growth, EPS and total return to shareholders relative to the companies in the Russell 2000® Value small cap index. The Company’s return on invested capital, consolidated revenue growth and EPS are adjusted for certain items as further described in the Performance Share Award Agreement. As of December 31, 2017 , the Company expects that Common Stock equal to approximately 101 percent of the PSU targets will be earned. The market price on the date of grant for the PSUs was $82.12 per share. At the end of the measurement period, the PSUs convert into RSUs, at the determined rate mentioned above, that are entitled to dividends but do not have voting rights. The Company is recognizing stock-based compensation expense pro-rata over the vesting term of the PSUs/RSUs. For further discussion on participating securities refer to Note 3. "Earnings Per Share". For the year ended December 31, 2017 , the Company awarded 9,226 RSUs to non-employee members of the Board of Directors and 866 RSUs to employees. The weighted-average grant date fair value of such awards was $76.78 per share and the awards vest one year from the date of grant for the Board of Directors grants and three years from the date of grant for the employee grants. During the vesting period, the holders of the RSUs are entitled to dividends, but the RSUs do not have voting rights and are forfeited in the event the holder is no longer an employee or member of the Board of Directors on the vesting date. The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2017 , 2016 and 2015 : RSUs Weighted-Average PSUs Weighted-Average Outstanding — December 31, 2014 105,294 $ 31.15 58,270 $ 74.79 Shares granted (a) 13,415 $ 61.41 45,060 $ 78.32 Shares vested (105,564 ) $ 32.12 (810 ) $ 78.32 Performance Shares vested 107,219 $ 40.65 (58,270 ) $ 74.79 Shares expired or cancelled (1,526 ) $ 51.14 (1,200 ) $ 78.32 Outstanding — December 31, 2015 118,838 $ 43.29 43,050 $ 78.32 Shares granted (a) 10,047 $ 68.25 54,364 $ 73.82 Shares vested (110,749 ) $ 42.96 — $ — Performance Shares vested 62,874 $ 53.63 (43,050 ) $ 78.32 Shares expired or cancelled (291 ) $ 40.65 (858 ) $ 75.98 Outstanding — December 31, 2016 80,719 $ 54.91 53,506 $ 73.79 Shares granted (a) 10,318 $ 76.84 41,883 $ 81.85 Shares vested (72,451 ) $ 55.26 — $ — Performance Shares vested 73,838 $ 52.11 (53,506 ) $ 73.79 Shares expired or cancelled (3,625 ) $ 50.48 (506 ) $ 81.85 Outstanding — December 31, 2017 (b) 88,799 $ 53.33 41,377 $ 81.85 ___________________________ (a) For the years ended December 31, 2017 , 2016 and 2015 , includes 226 RSUs, 312 RSUs and 495 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. (b) The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2017 was $8.0 million . The aggregate pre-tax intrinsic value of restricted stock and RSUs that vested for the years ended December 31, 2017 , 2016 and 2015 was $6.3 million , $9.3 million and $6.6 million , respectively. Excess Tax Benefits Excess tax benefits represent the difference between the tax deduction the Company will receive on its tax return for compensation recognized by employees upon the vesting or exercise of stock-based awards and the tax benefit recognized for the grant date fair value of such awards. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized excess tax benefits related to the exercise or vesting of stock-based awards of $4.5 million , $3.1 million and $2.6 million , respectively." id="sjs-B4">Stock Compensation Plans The Company established the 2004 Omnibus Stock and Incentive Plan (the "2004 Omnibus Plan") in December 2004 and reserved 3,500,000 shares of $0.01 par value common stock ("Common Stock") for issuance under the Omnibus Plan. Pursuant to the terms of the 2004 Omnibus Plan, the compensation committee of the Company's Board of Directors may grant various types of equity-based compensation awards, including incentive and nonqualified stock options, SARs, restricted stock, RSUs, Performance Units, in addition to certain cash-based awards. All grants under the Omnibus Plan will be made at fair market value and no grant may be repriced. In general, the options expire 10 years from the date of grant and vest over a 3 -year service period. At the 2013 Annual Meeting of Stockholders, the Company's stockholders approved an amendment and restatement of the 2004 Omnibus Plan (as amended and restated the "2013 Omnibus Plan"). The amendment and restatement authorized the Company to reserve an additional 1,577,000 shares of Common Stock for future issuance. As of December 31, 2017 , the Company had 680,000 shares of Common Stock reserved for future issuance under the 2013 Omnibus Plan. As of December 31, 2017 , the number of shares available for future issuance was reduced by approximately 134,000 shares for outstanding SARs where the closing market price for the Company's common stock was greater than the exercise price of the SAR. The Company accounts for stock-based compensation pursuant to the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). Valuation and Expense Information Under ASC Topic 718 Substantially all stock-based compensation expense has been recorded in selling, general and administrative expenses. The following table summarizes stock-based compensation costs and related income tax benefits. Year Ended December 31, 2017 2016 2015 Stock-based compensation expense $ 6.4 $ 5.8 $ 6.5 Income tax benefit (2.5 ) (2.2 ) (2.5 ) Stock-based compensation, net of income tax benefit $ 3.9 $ 3.6 $ 4.0 The following table summarizes total compensation costs related to the Company's equity awards and amounts recognized in the year ended December 31, 2017 . Stock Options Performance Unrecognized compensation cost — December 31, 2016 $ 0.6 $ 1.7 Grant date fair value current year grants 1.9 5.1 Compensation expense recognized (1.9 ) (4.5 ) Unrecognized compensation cost — December 31, 2017 $ 0.6 $ 2.3 Expected amortization period (in years) 1.8 1.7 Stock Options/SARs In August 2014, the Compensation Committee of the Board of Directors approved the conversion of approximately 545,000 outstanding non-qualified stock options held by U.S. employees and U.S. non-employee directors to an equal number of SARs. Upon exercise, the holder of an SAR will receive common shares equal to the number of SARs exercised multiplied by a fraction where the numerator is equal to the market price at the time of exercise minus the exercise price of the SAR and the denominator is equal to the market price at the time of exercise. The SARs can only be settled for shares of Common Stock and the Company will not receive any cash proceeds upon exercise. All other contractual terms of the SARs are unchanged from those of the converted non-qualified stock options. At the date of conversion the fair value of the SARs was equal to the fair value of the stock options exchanged. As a result, the Company did not recognize any additional compensation expense due to the conversion. The following tables present information regarding stock options awarded during the years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Nonqualified stock options granted 144,089 113,935 87,930 Per share weighted-average exercise price $ 82.11 $ 58.03 $ 59.72 Per share weighted-average grant date fair value $ 13.54 $ 13.51 $ 16.47 The weighted-average grant date fair value for stock options granted for the years ended December 31, 2017 , 2016 and 2015 was estimated using the Black-Scholes option valuation model with the following assumptions: 2017 2016 2015 Expected term in years 5.8 5.8 5.8 Risk free interest rate 2.1 % 1.8 % 1.4 % Volatility 22.9 % 32.1 % 34.4 % Dividend yield 3.0 % 3.0 % 2.0 % Expected volatility and the expected term were estimated by reference to the historical stock price performance of the Company and historical data for the Company's stock option awards, respectively. The risk-free interest rate was based on the yield on U.S. Treasury bonds with a remaining term approximately equal to the expected term of the stock option awards. Forfeitures were estimated at the date of grant. The following table summarizes stock option activity under the Omnibus Plan for the year ended December 31, 2017 : Number of Weighted-Average Options outstanding — December 31, 2016 530,462 $ 38.35 Add: Options granted 144,089 $ 82.11 Less: Options exercised 207,973 $ 29.88 Less: Options forfeited/cancelled 1,620 $ 65.60 Options outstanding — December 31, 2017 464,958 $ 55.60 The status of outstanding and exercisable stock options as of December 31, 2017 , summarized by exercise price follows: Options Vested or Expected to Vest Options Exercisable Exercise Price Number of Weighted- Weighted- Aggregate Number of Weighted- Aggregate $7.41 — $19.25 52,727 1.9 $ 13.06 $ 4.1 52,727 $ 13.06 $ 4.1 $21.13 — $31.23 58,490 3.9 $ 27.56 3.7 58,490 $ 27.56 3.7 $42.82 — $51.99 37,526 6.0 $ 43.49 1.8 37,526 $ 43.49 1.8 $55.49 — $60.56 172,626 7.5 $ 58.68 5.5 76,141 $ 58.93 2.4 >$60.56 143,589 8.5 $ 82.11 1.2 17,060 $ 82.15 0.1 464,958 6.6 $ 55.60 $ 16.3 241,944 $ 40.59 $ 12.1 _______________________ (a) Represents the total pre-tax intrinsic value as of December 31, 2017 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $90.65 on December 31, 2017 . The aggregate pre-tax intrinsic value of stock options exercised for the years ended December 31, 2017 , 2016 and 2015 was $11.5 million , $4.7 million and $5.5 million , respectively. The following table summarizes the status of the Company's unvested stock options as of December 31, 2017 and activity for the year then ended: Number of Weighted-Average Outstanding — December 31, 2016 194,126 $ 15.15 Add: Options granted 144,089 $ 13.54 Less: Options vested 115,201 $ 14.06 Outstanding — December 31, 2017 223,014 $ 13.87 As of December 31, 2017 , certain participants met age and service requirements that allowed their options to qualify for accelerated vesting upon retirement. As of December 31, 2017 , there were approximately 155,000 stock options subject to accelerated vesting that such participants would have been eligible to exercise if they had retired as of such date. The aggregate grant date fair value of options subject to accelerated vesting was $2.1 million . For the year ended December 31, 2017 , stock-based compensation expense for such options was $1.2 million . For the year ended December 31, 2017 , the aggregate grant date fair value of options vested, including options subject to accelerated vesting, was $1.9 million . Stock options that reflect accelerated vesting for expense recognition become exercisable according to the contract terms of the stock option grant. PSUs/RSUs For the year ended December 31, 2017 , the Company granted target awards of 41,883 PSUs. The measurement period for three fourths of the PSUs is January 1, 2017 through December 31, 2017, and for the remaining fourth of the PSUs is January 1, 2017 through December 31, 2019. The PSUs vest on December 31, 2019. Common Stock equal to not less than 40 percent and not more than 200 percent of the PSUs target will be awarded based on the Company’s return on invested capital, consolidated revenue growth, EPS and total return to shareholders relative to the companies in the Russell 2000® Value small cap index. The Company’s return on invested capital, consolidated revenue growth and EPS are adjusted for certain items as further described in the Performance Share Award Agreement. As of December 31, 2017 , the Company expects that Common Stock equal to approximately 101 percent of the PSU targets will be earned. The market price on the date of grant for the PSUs was $82.12 per share. At the end of the measurement period, the PSUs convert into RSUs, at the determined rate mentioned above, that are entitled to dividends but do not have voting rights. The Company is recognizing stock-based compensation expense pro-rata over the vesting term of the PSUs/RSUs. For further discussion on participating securities refer to Note 3. "Earnings Per Share". For the year ended December 31, 2017 , the Company awarded 9,226 RSUs to non-employee members of the Board of Directors and 866 RSUs to employees. The weighted-average grant date fair value of such awards was $76.78 per share and the awards vest one year from the date of grant for the Board of Directors grants and three years from the date of grant for the employee grants. During the vesting period, the holders of the RSUs are entitled to dividends, but the RSUs do not have voting rights and are forfeited in the event the holder is no longer an employee or member of the Board of Directors on the vesting date. The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2017 , 2016 and 2015 : RSUs Weighted-Average PSUs Weighted-Average Outstanding — December 31, 2014 105,294 $ 31.15 58,270 $ 74.79 Shares granted (a) 13,415 $ 61.41 45,060 $ 78.32 Shares vested (105,564 ) $ 32.12 (810 ) $ 78.32 Performance Shares vested 107,219 $ 40.65 (58,270 ) $ 74.79 Shares expired or cancelled (1,526 ) $ 51.14 (1,200 ) $ 78.32 Outstanding — December 31, 2015 118,838 $ 43.29 43,050 $ 78.32 Shares granted (a) 10,047 $ 68.25 54,364 $ 73.82 Shares vested (110,749 ) $ 42.96 — $ — Performance Shares vested 62,874 $ 53.63 (43,050 ) $ 78.32 Shares expired or cancelled (291 ) $ 40.65 (858 ) $ 75.98 Outstanding — December 31, 2016 80,719 $ 54.91 53,506 $ 73.79 Shares granted (a) 10,318 $ 76.84 41,883 $ 81.85 Shares vested (72,451 ) $ 55.26 — $ — Performance Shares vested 73,838 $ 52.11 (53,506 ) $ 73.79 Shares expired or cancelled (3,625 ) $ 50.48 (506 ) $ 81.85 Outstanding — December 31, 2017 (b) 88,799 $ 53.33 41,377 $ 81.85 ___________________________ (a) For the years ended December 31, 2017 , 2016 and 2015 , includes 226 RSUs, 312 RSUs and 495 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. (b) The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2017 was $8.0 million . The aggregate pre-tax intrinsic value of restricted stock and RSUs that vested for the years ended December 31, 2017 , 2016 and 2015 was $6.3 million , $9.3 million and $6.6 million , respectively. Excess Tax Benefits Excess tax benefits represent the difference between the tax deduction the Company will receive on its tax return for compensation recognized by employees upon the vesting or exercise of stock-based awards and the tax benefit recognized for the grant date fair value of such awards. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized excess tax benefits related to the exercise or vesting of stock-based awards of $4.5 million , $3.1 million and $2.6 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The Company has authorized 100 million shares of Common Stock. Holders of the Company's Common Stock are entitled to one vote per share. In May 2017, the Company's Board of Directors authorized a program that would allow the Company to repurchase up to $25 million of its outstanding Common Stock over the next 12 months (the "2017 Stock Purchase Plan"). Purchases by the Company under the 2017 Stock Purchase Plan would be made from time to time in the open market or in privately negotiated transactions in accordance with the requirements of applicable law. The timing and amount of any purchases will depend on share price, market conditions and other factors. The 2017 Stock Purchase Plan does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time. The 2017 Stock Purchase Plan is expected to be funded using cash on hand or borrowings under the Company's bank credit facility. The Company also had $25 million repurchase programs in place during the preceding two years that expired in May 2017 (the “2016 Stock Purchase Plan”) and May 2016 (the “2015 Stock Purchase Plan”), respectively. The following table shows shares purchased under the respective stock purchase plans: Year Ended December 31, 2017 2016 2015 Shares $ Shares $ Shares $ 2017 Stock Purchase Plan — $ — 2016 Stock Purchase Plan 85,354 $ 6.8 91,542 $ 7.4 2015 Stock Purchase Plan 93,600 $ 5.2 42,100 $ 2.4 2014 Stock Purchase Plan 60,900 $ 3.5 As of December 31, 2017 , under the terms of the Third Amended and Restated Credit Agreement and the 2021 Senior Notes, the Company has limitations on its ability to repurchase shares of its Common Stock, as further discussed in Note 7, "Debt." For the years ended December 31, 2017 , 2016 and 2015 , the Company acquired 28,000 shares, 46,000 shares and 40,000 shares of Common Stock, respectively, at a cost of $2.5 million , $3.8 million and $2.5 million , respectively, for shares surrendered by employees to pay taxes due on vested restricted stock awards and SARs exercised. Each share of Common Stock contains a preferred stock purchase right that is associated with the share. These preferred stock purchase rights are transferred only with shares of Common Stock. The preferred stock purchase rights become exercisable and separately certificated only upon a "Rights Distribution Date" as that term is defined in the stockholder rights agreement adopted by the Company at the time of the Spin-Off. In general, a Rights Distribution Date occurs 10 business days following either of these events: (i) a person or group has acquired or obtained the right to acquire beneficial ownership of 15 percent or more of the outstanding shares of the Company's Common Stock then outstanding or (ii) a tender offer or exchange offer is commenced that would result in a person or group acquiring 15 percent or more of the outstanding shares of Common Stock then outstanding. Preferred Stock The Company has authorized 20 million shares of $0.01 par value preferred stock. The preferred stock may be issued in one or more series and with such designations and preferences for each series as shall be stated in the resolutions providing for the designation and issue of each such series adopted by the Board of Directors of the Company. The Board of Directors is authorized by the Company's articles of incorporation to determine the voting, dividend, redemption and liquidation preferences pertaining to each such series. No shares of preferred stock have been issued by the Company. Other Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net income (loss), gains and losses recorded directly into stockholders' equity on the consolidated balance sheet. These gains and losses are referred to as other comprehensive income items. Accumulated other comprehensive income (loss) consists of foreign currency translation gains and (losses), deferred gains and (losses) on "available-for-sale" securities, and adjustments related to pensions and other post-retirement benefits. The Company does not provide income taxes for foreign currency translation adjustments related to indefinite investments in foreign subsidiaries. The components of accumulated other comprehensive income (loss), net of applicable income taxes are as follows: December 31, 2017 2016 Unrealized foreign currency translation losses, net of income tax benefit of $0.4 and $0.4, respectively $ (7.5 ) $ (27.5 ) Unrealized loss on "available-for-sale" securities, net of income tax benefit of $0.1 million (0.3 ) — Net loss from pension and other postretirement benefit liabilities, net of income tax benefits of $28.8 million and $36.8 million, respectively (a) (86.3 ) (64.5 ) Accumulated other comprehensive loss $ (94.1 ) $ (92.0 ) _________________ (a) In conjunction with the Tax Act, The Company early adopted ASU 2018-02 in the fourth quarter of 2017 and accordingly reclassified $10.9 million related to stranded tax effects resulting from the Tax Act from AOCI to retained earnings. The Company’s policy is to release stranded tax effects for “available-for-sale” securities using the portfolio approach. The following table presents changes in comprehensive income: Year Ended December 31, 2017 2016 2015 Pretax Tax Net Pretax Tax Net Pretax Tax Net Unrealized foreign currency translation gains (losses) $ 20.0 $ — $ 20.0 $ (7.1 ) $ 0.4 $ (6.7 ) $ (15.0 ) $ — $ (15.0 ) Unrealized loss on "available-for-sale" securities (0.4 ) 0.1 (0.3 ) — — — — — — Adjustment to pension and other benefit liabilities (13.8 ) 2.9 (10.9 ) (10.0 ) 3.0 (7.0 ) 6.3 (1.2 ) 5.1 Other comprehensive income (loss) $ 5.8 $ 3.0 $ 8.8 $ (17.1 ) $ 3.4 $ (13.7 ) $ (8.7 ) $ (1.2 ) $ (9.9 ) For the years ended December 31, 2017 , 2016 and 2015 , the Company reclassified $5.9 million , $7.2 million and $7.1 million , respectively, of costs from accumulated other comprehensive income to cost of products sold and selling, general and administrative expenses on the Consolidated Statements of Operations. For the years ended December 31, 2017 , 2016 and 2015 , the Company recognized an income tax benefit of $2.3 million , $2.8 million and $2.7 million , respectively, related to such reclassifications classified as Provision for income taxes on the Consolidated Statements of Operations. For the year ended December 31, 2017 and 2016, the Company reclassified $0.6 million and $0.8 million , respectively, of costs from accumulated other comprehensive income to pension plan settlement charge on the Consolidated Statements of Operations. For the year ended December 31, 2015 , the Company reclassified $5.5 million of costs from accumulated other comprehensive income to loss from discontinued operations on the Consolidated Statements of Operations. For both of the years ended December 31, 2017 and 2016, the Company recognized an income tax benefit of $0.2 million related to such reclassifications classified as Provision for income taxes on the Consolidated Statements of Operations. For the year ended December 31, 2015 , the Company recognized an income tax benefit of $2.1 million , related to reclassifications classified as Loss from discontinued operations, net of income taxes on the Consolidated Statements of Operations. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments | |
Commitments | Commitments Leases The future minimum obligations under operating leases having a noncancelable term in excess of one year as of December 31, 2017, are as follows: 2018 $ 4.0 2019 2.6 2020 2.1 2021 1.8 2022 1.6 Thereafter 3.7 Future minimum lease obligations $ 15.8 For the years ended December 31, 2017 , 2016 and 2015 rent expense under operating leases was $6.8 million , $6.4 million and $5.4 million , respectively. Purchase Commitments The Company has certain minimum purchase commitments that extend beyond December 31, 2017 . Commitments under these contracts are approximately $12.3 million and $6.1 million for the years ended December 31, 2018 and 2019, respectively. Such purchase commitments for the year ended December 31, 2018 are primarily for coal and corn starch contracts. Although the Company is primarily liable for payments on the above-mentioned leases and purchase commitments, management believes exposure to losses, if any, under these arrangements is not material. |
Contingencies and Legal Matters
Contingencies and Legal Matters | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Legal Matters | Contingencies and Legal Matters Litigation The Company is involved in certain legal actions and claims arising in the ordinary course of business. While the outcome of these legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claim which is pending or threatened, either individually or on a combined basis, will not have a material effect on the consolidated financial condition, results of operations or liquidity of the Company. Income Taxes The Company periodically undergoes examination by the Internal Revenue Service (the "IRS") as well as various state and foreign jurisdictions. These tax authorities routinely challenge certain deductions and credits reported by the Company on its income tax returns. No significant tax audit findings are being contested at this time with either the IRS or any state or foreign tax authority. Environmental, Health and Safety Matters The Company is subject to federal, state and local laws, regulations and ordinances relating to various environmental, health and safety matters. The Company is in compliance with, or is taking actions designed to ensure compliance with, these laws, regulations and ordinances. However, the nature of the Company's business exposes it to the risk of claims with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. Except for certain orders issued by environmental, health and safety regulatory agencies, with which management believes the Company is in compliance and which management believes are immaterial to the results of operations of the Company's business, Neenah is not currently named as a party in any judicial or administrative proceeding relating to environmental, health and safety matters. While the Company has incurred in the past several years, and will continue to incur, capital and operating expenditures in order to comply with environmental, health and safety laws, regulations and ordinances, management believes that the Company's future cost of compliance with environmental, health and safety laws, regulations and ordinances, and its exposure to liability for environmental, health and safety claims will not have a material effect on its financial condition, results of operations or liquidity. However, future events, such as changes in existing laws and regulations or contamination of sites owned, operated or used for waste disposal by the Company (including currently unknown contamination and contamination caused by prior owners and operators of such sites or other waste generators) may give rise to additional costs which could have a material effect on the Company's financial condition, results of operations or liquidity. The Company incurs capital expenditures necessary to meet legal requirements and otherwise relating to the protection of the environment at its facilities in the United States and internationally. The Company's anticipated capital expenditures for environmental projects are not expected to have a material effect on the Company's financial condition, results of operations or liquidity. Employees and Labor Relations As of December 31, 2017 , the Company had approximately 2,612 regular full-time employees of whom 1,174 hourly and 578 salaried employees were located in the United States and 431 hourly and 429 salaried employees were located in Europe. All of the Company's U.S. hourly union employees are represented by the United Steelworkers Union (the "USW"). In Netherlands, most of our employees are eligible to be represented by the Christelijke Nationale Vakbond ("CNV") and the Federatie Nederlandse Vakvereniging ("FNV"). Under Dutch law the union membership is voluntary and does not need to be disclosed to the Company. The collective bargaining arrangement with CNV and FNV will expire in April 2018. Hourly union employees at the Company's Bolton, England manufacturing facility are represented by Unite the Union ("UNITE"). The following table shows the status of the Company's bargaining agreements as of December 31, 2017 . Contract Expiration Date Location Union Number of Employees January 2018 (c) Whiting, WI (b) USW 201 June 2018 Neenah, WI (b) USW 264 July 2018 Munising, MI (b) USW 203 February 2019 Neenah Germany IG BCE (a) May 2019 Appleton, WI (b) USW 103 August 2021 Brattleboro, VT USW 94 November 2021 Lowville, NY USW 108 _______________________ (a) Under German law union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE cannot be determined. (b) On pension matters, the Whiting, Neenah, Munising and Appleton mills have bargained jointly with the USW. The current agreement on pension matters will remain in effect until September 2019. (c) The Company is currently in negotiations with the USW and a new contract is expected to be signed in 2018. Until a new contract is signed, the terms of the previous contract still apply. Approximately 50 percent of salaried employees and 80 percent of hourly employees of Neenah Germany are eligible to be represented by the Mining, Chemicals and Energy Trade Union, Industriegewerkschaft Bergbau, Chemie and Energie (the "IG BCE"). In June 2017, the IG BCE and a national trade association representing all employers in the industry signed a collective bargaining agreement covering union employees of Neenah Germany that expires in February 2019. Under German law union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE that expires in February 2019 cannot be determined. As of December 31, 2017 , 668 employees are covered under collective bargaining agreements that have already expired or will expire in the next 12 months, with the exception of the employees covered by the collective bargaining arrangement with the IG BCE. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued Operations On October 31, 2015, the Company sold the Lahnstein Mill to a privately-owned enterprise specializing in equity holdings in German medium-sized companies, for net cash proceeds of approximately $5.4 million . The buyer acquired all the assets and liabilities of the Lahnstein Mill, including pension and related liabilities of approximately $21 million . The Lahnstein Mill, which had annual sales of approximately €50 million , had been operating as a stand-alone business, manufacturing non-woven wallcoverings and various other specialty papers. The sale focuses the Company's portfolio on targeted growth markets such as filtration, premium fine papers and packaging and other performance materials. Upon reaching an agreement for the sale of the Lahnstein Mill, the Company compared the carrying value of the Lahnstein Mill assets to the fair value of such assets reflected in the sales agreement. As a result, the Company recognized an impairment charge of $12.0 million to reduce the carrying value of the Lahnstein Mill assets to fair value. In addition, the Company recognized approximately $1.7 million of transaction costs related to the sale in 2015. For the year ended December 31, 2016, discontinued operations reported on the consolidated statements of operations includes an additional loss on sale arising from final adjustments to the transaction price. The following table presents selected financial information for discontinued operations: For the Year ended December 31, 2017 2016 2015 Net sales $ — $ — $ 43.2 Cost of products sold — — 39.7 Gross Profit — — 3.5 Selling, general and administrative expenses — — 3.5 Restructuring costs — — 0.1 Other income — net — — (0.3 ) Income (Loss) From Discontinued Operations Before Income Taxes — — 0.2 Loss on sale (a) — (0.6 ) (13.6 ) Income (loss) before income taxes — (0.6 ) (13.4 ) Income tax provision (benefit) (a) — (0.2 ) (4.0 ) Income (loss) from discontinued operations $ — $ (0.4 ) $ (9.4 ) _______________________ (a) For 2015, this amount includes a net curtailment gain related to the divesture of the pension plan of $15.8 million , including a $5.5 million write-off of deferred actuarial losses. The following table presents selected cash flow information for discontinued operations for the year ended December 31, 2015: For the Year ended December 31, 2017 2016 2015 Depreciation and amortization $ — $ — $ 2.7 Capital expenditures $ — $ — $ 0.6 |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Business Segment and Geographic Information On July 1, 2015, the Company reorganized its internal management structure and, accordingly, addressed its segment reporting structure. As a result of this reorganization, the Other operating segment (composed of the non-premium Index, Tag and Vellum Bristol product lines acquired as part of the purchase of the Wausau brands) was combined with the Fine Paper and Packaging operating segment to reflect the manner in which this business is managed. Segment information for prior periods has been restated to conform to the current period presentation. In addition, as part of the FiberMark acquisition, the Company acquired certain product lines composed of papers sold to converters for end uses such as covering materials for datebooks, diaries, yearbooks and traditional photo albums. Due to the dissimilar nature of these products, management decided that they would not be managed as part of either the existing Fine Paper and Packaging or Technical Products businesses. These product lines represent an operating segment which does not meet the quantitative threshold for a reportable segment. The Company's reportable operating segments now consist of Technical Products, Fine Paper and Packaging and Other. The Technical Products segment is an aggregation of the Company's filtration and performance materials businesses which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media ("Filtration"), tape and abrasives backings products ("Backings"), digital image transfer, durable label, and other specialty substrate products ("Specialty"). The following table presents sales by product category for the technical products business: Year Ended December 31, 2017 2016 2015 Filtration 44 % 42 % 45 % Backings 32 % 31 % 30 % Specialty 24 % 27 % 25 % Total 100 % 100 % 100 % The fine paper and packaging business is a leading supplier of premium printing and other high end specialty papers ("Graphic Imaging"), premium packaging ("Packaging") and specialty office papers ("Filing/Office") primarily in North America. The following table presents sales by product category for the fine paper and packaging business: Year Ended December 31, 2017 2016 2015 Graphic Imaging 80 % 81 % 80 % Packaging 16 % 14 % 15 % Filing/Office 4 % 5 % 5 % Total 100 % 100 % 100 % Each segment employs different technologies and marketing strategies. Disclosure of segment information is on the same basis that management uses internally for evaluating segment performance and allocating resources. Transactions between segments are eliminated in consolidation. The costs of shared services, and other administrative functions managed on a common basis, are allocated to the segments based on usage, where possible, or other factors based on the nature of the activity. General corporate expenses that do not directly support the operations of the business segments are shown as Unallocated corporate costs. The accounting policies of the reportable operating segments are the same as those described in Note 2, "Summary of Significant Accounting Policies." Business Segments Year Ended December 31, 2017 2016 2015 Net sales Technical Products $ 502.1 $ 466.4 $ 429.2 Fine Paper and Packaging 455.3 452.1 442.7 Other 22.5 23.0 15.8 Consolidated $ 979.9 $ 941.5 $ 887.7 Year Ended December 31, 2017 2016 2015 Operating income (loss) Technical Products (a) $ 55.3 $ 65.6 $ 54.1 Fine Paper and Packaging (b) 69.5 70.7 67.3 Other (c) (0.4 ) (1.1 ) (2.0 ) Unallocated corporate costs (d) (20.1 ) (21.1 ) (18.0 ) Consolidated $ 104.3 $ 114.1 $ 101.4 _______________________ (a) Operating income for the year ended December 31, 2016 included integration costs of $1.4 million . Operating income for the year ended December 31, 2015 included acquisition, integration and restructuring costs of $1.7 million . (b) Operating income for the year ended December 31, 2017 included a representations and warranties insurance settlement of $2.9 million . Operating income for the years ended December 31, 2016 and 2015 included acquisition and integration costs of $1.8 million and $1.5 million , respectively. (c) Operating income for the year ended December 31, 2017 included a representations and warranties insurance settlement of $0.3 million . Operating income for the years ended December 31, 2016 and 2015 included acquisition and integration costs of $1.1 million and $2.4 million , respectively. (d) Unallocated corporate costs for the year ended December 31, 2017 included acquisition and integration costs of $1.3 million and $0.6 million from pension plan and SERP settlement costs. December 31, 2016 included $2.7 million of pre-operating costs related to conversion of a fine paper machine to filtration and $0.8 million for a pension plan settlement charge. December 31, 2015 included $0.8 million of costs related to this filtration project. Year Ended December 31, 2017 2016 2015 Depreciation and amortization Technical Products $ 19.4 $ 18.1 $ 16.5 Fine Paper and Packaging 11.0 11.1 9.8 Other 1.2 1.3 0.6 Corporate 1.7 1.5 1.9 Total Continuing Operations 33.3 32.0 28.8 Discontinued operations — — 2.7 Consolidated $ 33.3 $ 32.0 $ 31.5 Year Ended December 31, 2017 2016 2015 Capital expenditures Technical Products $ 28.6 $ 57.9 $ 36.0 Fine Paper and Packaging 12.5 7.6 10.3 Other 1.1 0.3 0.4 Corporate 0.5 2.7 0.8 Total Continuing Operations 42.7 68.5 47.5 Discontinued operations — — 0.6 Consolidated $ 42.7 $ 68.5 $ 48.1 December 31, 2017 2016 Total Assets (a) Technical Products $ 613.0 $ 487.6 Fine Paper and Packaging 261.6 248.9 Corporate and other (b) 29.8 29.1 Total $ 904.4 $ 765.6 _______________________ (a) Segment identifiable assets are those that are directly used in the segments operations. (b) Corporate assets are primarily cash and income taxes. Geographic Information Year Ended December 31, 2017 2016 2015 Net sales United States $ 748.9 $ 727.6 $ 687.3 Europe 231.0 213.9 200.4 Consolidated $ 979.9 $ 941.5 $ 887.7 Net sales are attributed to geographic areas based on the physical location of the selling entities. December 31, 2017 2016 Long-Lived Assets United States $ 393.1 $ 377.4 Europe 226.1 151.9 Total $ 619.2 $ 529.3 Long-lived assets consist of property and equipment, deferred income taxes, goodwill, intangibles and other assets. Concentrations For the year ended December 31, 2017, sales to Veritiv and CNG each represented approximately 7 percent of consolidated net sales and approximately 15 percent of net sales of the fine paper and packaging business. For the years ended December 31, 2016 and 2015 sales to Veritiv represented approximately 8 percent and 10 percent , respectively, of consolidated net sales and approximately 15 percent and 20 percent , respectively, of net sales of the fine paper and packaging business. Except for certain specialty latex grades and specialty softwood pulp used by Technical Products, management is not aware of any significant concentration of business transacted with a particular supplier that could, if suddenly eliminated, have a material effect on its operations. |
Supplemental Data
Supplemental Data | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Data | Supplemental Data Supplemental Statement of Operations Data Summary of Advertising and Research and Development Expenses Year Ended December 31, 2017 2016 2015 Advertising expense $ 6.0 $ 6.2 $ 6.8 Research and development expense 8.9 9.4 6.8 _______________________ (a) Advertising expense and research and development expense are recorded in selling, general and administrative expenses on the consolidated statements of operations. Supplemental Balance Sheet Data Summary of Accounts Receivable — net December 31, 2017 2016 From customers $ 117.0 $ 98.0 Less allowance for doubtful accounts and sales discounts (1.3 ) (1.5 ) Total $ 115.7 $ 96.5 Summary of Inventories December 31, 2017 2016 Inventories by Major Class: Raw materials $ 36.2 $ 31.6 Work in progress 35.0 26.8 Finished goods 79.2 63.0 Supplies and other 3.6 3.1 154.0 124.5 Excess of FIFO over LIFO cost (10.5 ) (8.2 ) Total $ 143.5 $ 116.3 The FIFO value of inventories valued on the LIFO method was $120.1 million and $106.8 million at December 31, 2017 and 2016 , respectively. For the year ended December 31, 2017 and 2016 , income from continuing operations before income taxes was reduced by less than $0.5 million and $0.1 million , respectively, due to a decrease in certain LIFO inventory quantities. Summary of Prepaid and Other Current Assets December 31, 2017 2016 Prepaid and other current assets $ 11.3 $ 10.5 Spare parts 6.9 5.8 Receivable for income taxes 3.3 4.1 Total $ 21.5 $ 20.4 Summary of Property, Plant and Equipment — Net December 31, 2017 2016 Land and land improvements $ 20.2 $ 18.3 Buildings 157.7 126.1 Machinery and equipment 650.8 597.5 Construction in progress 21.8 13.7 850.5 755.6 Less accumulated depreciation 425.3 391.0 Net Property, Plant and Equipment $ 425.2 $ 364.6 Depreciation expense for the years ended December 31, 2017 , 2016 and 2015 was $28.3 million , $27.1 million and $24.8 million , respectively. Interest expense capitalized as part of the costs of capital projects was zero , $0.8 million and $0.2 million , respectively, for the years ended December 31, 2017 , 2016 and 2015 . Summary of Accrued Expenses December 31, 2017 2016 Accrued salaries and employee benefits $ 29.6 $ 26.3 Amounts due to customers 7.2 7.3 Accrued interest 1.3 1.3 Accrued income taxes 4.2 2.0 Other 15.2 14.3 Total $ 57.5 $ 51.2 Summary of Noncurrent Employee Benefits December 31, 2017 2016 Pension benefits $ 59.8 $ 49.0 Post-employment benefits other than pensions (a) 40.5 37.7 Total $ 100.3 $ 86.7 _______________________ (a) Includes $1.8 million of SRCP benefits as of December 31, 2017 and $1.3 million of SRCP benefits as of December 31, 2016. Supplemental Cash Flow Data Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2017 2016 2015 Cash paid during the year for interest, net of interest expense capitalized $ 11.3 $ 10.0 $ 10.6 Cash paid during the year for income taxes, net of refunds 7.6 15.0 16.2 Non-cash investing activities: Liability for equipment acquired 5.4 11.1 6.6 Net cash provided by (used in) changes in operating working capital, net of effect of acquisitions Year Ended December 31, 2017 2016 2015 Accounts receivable $ (10.2 ) $ 1.5 $ (5.2 ) Inventories (11.7 ) 4.3 7.7 Income taxes receivable/payable 4.5 (1.5 ) 1.0 Prepaid and other current assets (0.4 ) — (4.8 ) Accounts payable 10.6 (2.7 ) (0.5 ) Accrued expenses (4.2 ) (2.8 ) 3.2 Other (0.4 ) — 0.4 Total $ (11.8 ) $ (1.2 ) $ 1.8 |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Data | Unaudited Quarterly Data 2017 Quarters First Second (a) Third (b) Fourth (c) Year Net Sales $ 242.1 $ 248.7 $ 245.1 $ 244.0 $ 979.9 Gross Profit 52.0 53.6 48.0 45.1 198.7 Operating Income 27.0 29.2 29.0 19.1 104.3 Income From Continuing Operations 17.6 25.0 18.8 18.9 80.3 Earnings Per Common Share From Continuing Operations: Basic $ 1.04 $ 1.47 $ 1.11 $ 1.11 $ 4.74 Diluted $ 1.03 $ 1.46 $ 1.10 $ 1.10 $ 4.68 _______________________ (a) Income from continuing operations includes a prior year tax adjustment of $4.1 million related to the Company's assertion of indefinite reinvestment of undistributed earnings of foreign subsidiaries. (b) Includes proceeds of a representations and warranties insurance settlement related to the FiberMark acquisition of $ 3.2 million , less acquisition costs of $0.7 million and SERP settlement charges of $0.2 million . (c) Includes acquisition/integration costs of $0.6 million and pension/SERP settlement charges of $0.4 million . Also, income from continuing operations includes net tax benefits of $5.9 million , primarily from the Tax Act. 2016 Quarters First Second Third Fourth (e) Year (d)(e) Net Sales $ 242.1 $ 246.0 $ 232.9 $ 220.5 $ 941.5 Gross Profit 58.8 60.0 49.2 46.5 214.5 Operating Income 31.4 33.9 26.9 21.9 114.1 Income From Continuing Operations 19.2 21.4 16.4 16.4 73.4 Earnings Per Common Share From Continuing Operations: Basic $ 1.13 $ 1.26 $ 0.97 $ 0.97 $ 4.33 Diluted $ 1.11 $ 1.24 $ 0.95 $ 0.95 $ 4.26 _______________________ (d) Includes integration/restructuring costs of $7.0 million . (e) Includes a pension plan settlement charge of $0.8 million . |
SCHEDULE II SCHEDULE OF VALUATI
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Dollars in millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Write-offs and Reclassifications Balance at End of Period December 31, 2017 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 1.0 $ 0.2 $ — $ (0.4 ) $ 0.8 Allowance for sales discounts 0.5 — — — 0.5 Valuation allowance — deferred income taxes 3.5 — — (3.1 ) 0.4 December 31, 2016 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 1.1 $ (0.1 ) $ — $ — $ 1.0 Allowance for sales discounts 0.6 (0.1 ) — — 0.5 Valuation allowance — deferred income taxes 3.0 0.1 — 0.4 3.5 December 31, 2015 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 0.9 $ (0.4 ) $ 1.0 $ (0.4 ) $ 1.1 Allowance for sales discounts 0.6 — — — 0.6 Valuation allowance — deferred income taxes — 3.0 — — 3.0 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Significant management judgment is required in determining the accounting for, among other things, pension and postretirement benefits, retained insurable risks, reserves for sales discounts and allowances, purchase price allocations, useful lives for depreciation and amortization, asset retirement obligations ("AROs"), future cash flows associated with impairment testing for tangible and intangible long-lived assets, goodwill, income taxes, contingencies, inventory obsolescence and market reserves and the valuation of stock-based compensation. |
Revenue Recognition | Revenue Recognition The Company recognizes sales revenue when all of the following have occurred: (1) delivery has occurred, (2) persuasive evidence of an agreement exists, (3) pricing is fixed or determinable, and (4) collection is reasonably assured. Delivery is not considered to have occurred until the customer takes title and assumes the risks and rewards of ownership. The timing of revenue recognition is largely dependent on shipping terms. Sales are reported net of allowable discounts and estimated returns. Reserves for cash discounts, trade allowances and sales returns are estimated using historical experience. The Company has completed its assessment of the ASU 2014-09, Revenue from Contracts with Customers, and does not believe there will be a material impact from adoption on its consolidated financial statements. The Company will adopt the new standards using the modified retrospective method as of January 1, 2018. See "Recently Adopted Accounting Standards" later in this Note for further discussion. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. As of December 31, 2017 and 2016 , $0.1 million and $0.3 million , respectively, of the Company's cash and cash equivalents is restricted to the payment of postretirement benefits for certain former Fox River executives. |
Inventories | Inventories U.S. inventories are valued at the lower of cost, using the Last-In, First-Out (LIFO) method for financial reporting purposes, or market. European inventories are valued at the lower of cost, using a weighted-average cost method, or market. Cost includes labor, materials and production overhead. |
Foreign Currency | Foreign Currency Balance sheet accounts of the Company's operations in Germany and the Netherlands, the United Kingdom (the "U.K."), and Canada are translated from Euros, British Pounds, and Canadian dollars, respectively, into U.S. dollars at period-end exchange rates, and income and expense accounts are translated at average exchange rates during the period. Translation gains or losses related to net assets located in Germany, the Netherlands, the U.K., and Canada are recorded as unrealized foreign currency translation adjustments within Accumulated other comprehensive loss in stockholders' equity. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in Other expense — net in the consolidated statements of operations. |
Property and Depreciation | Property and Depreciation Property, plant and equipment are stated at cost, less accumulated depreciation. Certain costs of software developed or obtained for internal use are capitalized. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and the gains or losses are recorded in Other (income) expense — net. For financial reporting purposes, depreciation is principally computed on the straight-line method over estimated useful asset lives. The weighted average remaining useful lives for buildings, land improvements and machinery and equipment are approximately 20 years , 12 years and 9.5 years , respectively. The units-of-production method of depreciation is used for the U.S. transportation filtration production assets with a gross book value of $66.6 million , which reflects the nature of the assets' utilization. For income tax purposes, accelerated methods of depreciation are used. The costs of major rebuilds and replacements of plant and equipment are capitalized, and the cost of maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is expensed as incurred. Start-up costs for new or expanded facilities, including costs related to trial production, are expensed as incurred. The Company accounts for AROs in accordance with ASC Topic 410, Asset Retirements and Environmental Obligations , which requires companies to make estimates regarding future events in order to record a liability for AROs in the period in which a legal obligation is created. Such liabilities are recorded at fair value, with an offsetting increase to the carrying value of the related long-lived asset. As of December 31, 2017 , the Company is unable to estimate its AROs for environmental liabilities at its manufacturing facilities. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). The amount of stock-based compensation cost recognized is based on the fair value of grants that are ultimately expected to vest and is recognized pro-rata over the requisite service period for the entire award. |
Research and Development Expense | Research and Development Expense Research and development costs are charged to expense as incurred and are recorded in "Selling, general and administrative expenses" on the consolidated statement of operations. See Note 15, "Supplemental Data — Supplemental Statement of Operations Data." |
Fair Value Measurements and Fair Value of Pension Plan Assets | Fair Value of Pension Plan Assets With the exception of cash and cash equivalents which are considered Level 1, and the annuity contracts which are considered Level 3, pension plan assets are measured at Net Asset Value ("NAV") (or its equivalent) as an alternative to fair market value due to the absence of readily available market prices, and as such are not subject to the fair value hierarchy. Fair Value Measurements The Company measures the fair value of pension plan assets in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820") which establishes a framework for measuring fair value. ASC Topic 820 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The fair value of short and long-term debt is estimated using rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company's debt. December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair 2021 Senior Notes (5.25% fixed rate) $ 175.0 $ 170.2 $ 175.0 $ 169.5 Global Revolving Credit Facilities (variable rates) 76.9 76.9 42.9 42.9 Second German Loan Agreement (2.5% fixed rate) 6.4 6.4 6.8 6.8 Total debt $ 258.3 $ 253.5 $ 224.7 $ 219.2 _______________________ (a) Fair value for all debt instruments was estimated from Level 2 measurements. The Company's investments in marketable securities are accounted for as "available-for-sale securities" in accordance with ASC Topic 320, Investments — Debt and Equity Securities ("ASC Topic 320"). Pursuant to ASC Topic 320, marketable securities are reported at fair value on the consolidated balance sheet and unrealized holding gains and losses are reported in other comprehensive income until realized upon sale. At December 31, 2017 , the Company had $3.6 million in marketable securities classified as Other assets on the consolidated balance sheet. The cost of such marketable securities was $4.1 million . Fair value for the Company's marketable securities was estimated from Level 1 inputs. The Company's marketable securities are designated for the payment of benefits under its supplemental employee retirement plan (the "SERP"). |
Recently Adopted Accounting Standards and Accounting Standards Changes | Recently Adopted Accounting Standards In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The amendments in this ASU provide guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The amendments are effective for the Company as of January 1, 2018, on a prospective basis. The Company early adopted ASU 2017-01 in the third quarter of 2017. There was no material impact on the consolidated financial statements as a result of the adoption. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income (Topic 740), to address issues related to the application of ASC 740 to certain provisions of the Tax Cuts and Jobs Act (the "Tax Act"). This ASU provides an option for entities to make a one-time reclassification from Accumulated Other Comprehensive Income (“AOCI”) to retained earnings for stranded tax effects resulting from the newly enacted tax rates for deferred tax liabilities and assets related to items within AOCI. The Company early adopted ASU 2018-02 in the fourth quarter of 2017 and accordingly reclassified $10.9 million related to stranded tax effects resulting from the Tax Act from AOCI to retained earnings. See Note 10, "Stockholders' Equity." Accounting Standards Changes In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has subsequently issued additional, clarifying standards to address issues arising from implementation of the new revenue recognition standard. The Company has completed its assessment of the new standards and does not believe there will be a material impact from adoption on its consolidated financial statements. The Company will adopt the new standards using the modified retrospective method as of January 1, 2018. The new standards also require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current lease accounting. The guidance also eliminates current real estate-specific provisions for all entities. ASU 2016-09 is effective for fiscal years beginning after December 15, 2018, although early adoption is permitted. The Company is currently assessing the impact of the adoption of ASU 2016-09 on its consolidated financial statements. As of December 31, 2017 , no other amendments to the ASC had been issued and not adopted by the Company that will have or are reasonably likely to have a material effect on the its financial position, results of operations or cash flows. |
Earnings per Share ("EPS") | Earnings per Share ("EPS") The Company's restricted stock units ("RSUs") are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, basic EPS has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares outstanding. For the computation of basic EPS, weighted average RSUs outstanding are excluded from the calculation of weighted average shares outstanding. Accounting Standards Codification ("ASC") Topic 260, Earnings per Share ("ASC Topic 260") requires companies with participating securities to calculate diluted earnings per share using the "two class" method. The "two class" method requires first calculating diluted earnings per share using a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities. Diluted earnings per share is then calculated using net income reduced by the amount of distributed and undistributed earnings allocated to participating securities calculated using the "Treasury Stock" method and a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities excluding participating securities. Companies are required to report the lower of the diluted earnings per share amounts under the two calculations subject to the anti-dilution provisions of ASC Topic 260. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted to include the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, stock appreciation rights ("SARs") and target awards of RSUs with performance conditions ("Performance Share Units" or "PSUs"), into shares of common stock as if those securities were exercised or converted. For the years ended December 31, 2017 , 2016 and 2015 , approximately 72,000 , 35,000 and 45,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company's common stock for the respective 12 -month periods during which the options were outstanding. |
Business Combinations Policy | The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations ("ASC Topic 805"). The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of August 1, 2015. |
Goodwill | Goodwill and Other Intangible Assets The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed. The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired. The Company tested goodwill for impairment as of November 30, 2017. The Company elected the option under ASC Topic 350, Intangibles — Goodwill and Other , to perform a qualitative assessment of the Company's reporting units to determine whether further impairment testing is necessary. In this qualitative assessment, the Company considered the following items for each of the reporting units: macroeconomic conditions, industry and market conditions, overall financial performance and other entity specific events. In addition, for each of these reporting units, the most recent fair value determination results in an amount that exceeds the carrying amount of the reporting units. Based on these assessments, the Company determined that the likelihood that a current fair value determination would be less than the current carrying amount of the reporting unit is not more likely than not. |
Finite-Lived Intangible Assets | Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment . Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 years. Certain trade names are estimated to have indefinite useful lives and as such are not amortized. Intangible assets with indefinite lives are reviewed for impairment at least annually. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of the carrying value and fair value of the Company's debt | The following table presents the carrying value and the fair value of the Company's debt. December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair 2021 Senior Notes (5.25% fixed rate) $ 175.0 $ 170.2 $ 175.0 $ 169.5 Global Revolving Credit Facilities (variable rates) 76.9 76.9 42.9 42.9 Second German Loan Agreement (2.5% fixed rate) 6.4 6.4 6.8 6.8 Total debt $ 258.3 $ 253.5 $ 224.7 $ 219.2 _______________________ (a) Fair value for all debt instruments was estimated from Level 2 measurements. |
Schedule of level 3 defined benefit pension plan assets measured at fair value | The following table summarizes the changes in Level 3 defined benefit pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2017: Return on plan assets Fair Value at January 1 Attributable to Assets Held at December 31 Attributable to Assets Sold Net Purchases/ (Settlements) Transfers into/ (out of) Level 3 Foreign currency effects Fair Insurance contract $ — $ 0.2 $ — $ 0.1 $ 46.8 $ 1.3 $ 48.4 |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): Earnings per basic common share Year Ended December 31, 2017 2016 2015 Income from continuing operations $ 80.3 $ 73.4 $ 60.5 Amounts attributable to participating securities (0.6 ) (0.7 ) (0.6 ) Income from continuing operations available to common stockholders 79.7 72.7 59.9 Income (loss) from discontinued operations, net of income taxes — (0.4 ) (9.4 ) Amounts attributable to participating securities — — 0.1 Net income available to common stockholders $ 79.7 $ 72.3 $ 50.6 Weighted-average basic shares outstanding 16,805 16,773 16,754 Basic earnings (loss) per share Continuing operations $ 4.74 $ 4.33 $ 3.58 Discontinued operations — (0.02 ) (0.56 ) $ 4.74 $ 4.31 $ 3.02 Earnings per diluted common share Year Ended December 31, 2017 2016 2015 Income from continuing operations $ 80.3 $ 73.4 $ 60.5 Amounts attributable to participating securities (0.5 ) (0.6 ) (0.5 ) Income from continuing operations available to common stockholders 79.8 72.8 60.0 Income (loss) from discontinued operations, net of income taxes — (0.4 ) (9.4 ) Amounts attributable to participating securities — — 0.1 Net income available to common stockholders $ 79.8 $ 72.4 $ 50.7 Weighted-average basic shares outstanding 16,805 16,773 16,754 Add: Assumed incremental shares under stock-based compensation plans 247 314 258 Weighted average diluted shares 17,052 17,087 17,012 Diluted earnings (loss) per share Continuing operations $ 4.68 $ 4.26 $ 3.53 Discontinued operations — (0.02 ) (0.55 ) $ 4.68 $ 4.24 $ 2.98 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summary of allocation of the purchase price to the estimated fair value of the assets acquired and liabilities | The following table summarizes the allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed as of December 31, 2017 . December 31, 2017 Assets Acquired Cash and cash equivalents $ 4.9 Accounts receivable 4.7 Inventories 12.7 Deferred income taxes 0.4 Prepaid and other current assets 0.2 Property, plant and equipment 31.2 Non-amortizable intangible assets 1.2 Amortizable intangible assets 4.7 Acquired goodwill 10.0 Other assets 0.1 Total assets acquired 70.1 Liabilities Assumed Accounts payable 4.1 Accrued expenses 5.4 Contingent liability (1) 2.3 Deferred income taxes 3.5 Noncurrent employee benefits 4.9 Long-term debt 1.8 Other noncurrent obligations 0.1 Total liabilities assumed 22.1 Net assets acquired $ 48.0 (1) In conjunction with the acquisition, the Company assumed a contingent liability of $2.3 million related to the acquisition of direct customer relationships by Coldenhove, which amount is contingent on the growth of sales from these customer relationships. As of December 31, 2017, the liability amount is unchanged. |
Summary of pro forma consolidated statements of operations | Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2017 2016 Net sales $ 1,019.8 $ 986.9 Operating income 108.9 116.7 Income from continuing operations 83.0 74.8 Income (loss) from discontinued operations — (0.4 ) Net income 83.0 74.4 Earnings (Loss) Per Common Share Basic Continuing operations $ 4.90 $ 4.42 Discontinued Operations — (0.02 ) $ 4.90 $ 4.40 Diluted Continuing operations $ 4.84 $ 4.34 Discontinued Operations — (0.02 ) $ 4.84 $ 4.32 Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2015 Net sales $ 984.0 Operating income 103.7 Income from continuing operations 61.7 Income (loss) from discontinued operations (9.4 ) Net income 52.3 Earnings (Loss) Per Common Share Basic Continuing operations $ 3.65 Discontinued Operations (0.56 ) $ 3.09 Diluted Continuing operations $ 3.60 Discontinued Operations (0.55 ) $ 3.05 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The following table presents the carrying value of goodwill by business segment and changes in the carrying value of goodwill. Technical Products Fine Paper and Other Gross Accumulated Gross Net Gross Amount Net Balance at December 31, 2015 $ 110.7 $ (45.1 ) $ 65.6 $ 6.2 $ 0.4 $ 72.2 Adjustment of goodwill acquired in the Fibermark Acquisition (1) (0.4 ) — (0.4 ) — — (0.4 ) Foreign currency translation (2.9 ) 1.5 (1.4 ) — — (1.4 ) Balance at December 31, 2016 107.4 (43.6 ) 63.8 6.2 0.4 70.4 Goodwill acquired in the Coldenhove Acquisition 10.0 — 10.0 — — 10.0 Foreign currency translation 10.9 (6.0 ) 4.9 — — 4.9 Balance at December 31, 2017 $ 128.3 $ (49.6 ) $ 78.7 $ 6.2 $ 0.4 $ 85.3 ___________________________ (1) As a result of finalizing the acquisition accounting for Fibermark in the first quarter of 2016, an adjustment of $ 0.4 million was recorded as a reduction to the net deferred tax liability and to goodwill. |
Schedule of gross carrying amount of intangible assets and the related accumulated amortization for intangible assets subject to amortization | The following table presents intangible assets acquired in conjunction with the Coldenhove acquisition: Intangibles Estimated Useful Intangible assets — definite lived Trade names and trademarks $ 0.5 10 Customer based intangibles 2.9 15 Acquired technology 1.3 4 Total 4.7 Non-amortizable trade names 1.2 Total intangible assets $ 5.9 The following table details amounts related to those assets. December 31, 2017 December 31, 2016 Gross Accumulated Gross Accumulated Amortizable intangible assets Customer based intangibles $ 39.2 $ (14.7 ) $ 34.4 $ (11.1 ) Trade names and trademarks 5.2 (2.3 ) 6.8 (4.2 ) Acquired technology 17.2 (3.9 ) 14.6 (2.7 ) Total amortizable intangible assets 61.6 (20.9 ) 55.8 (18.0 ) Trade names 38.0 — 36.2 — Total $ 99.6 $ (20.9 ) $ 92.0 $ (18.0 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of difference between the effective income tax rate and the U.S. federal statutory income tax rate | The following table presents the principal reasons for the difference between the Company's effective income tax rate and the U.S. federal statutory income tax rate: Year Ended December 31, 2017 2017 2016 2016 2015 2015 U.S. federal statutory income tax rate 35.0 % $ 32.1 35.0 % $ 36.1 35.0 % $ 31.5 U.S. state income taxes, net of federal income tax benefit 1.9 % 1.7 1.9 % 2.0 2.1 % 1.9 Tax on foreign dividends (a) (0.3 )% (0.3 ) 4.5 % 4.6 3.6 % 3.2 Foreign tax rate differences (b) (3.4 )% (3.1 ) (2.7 )% (2.8 ) (2.2 )% (2.0 ) Foreign financing structure (c) (2.2 )% (2.0 ) (1.6 )% (1.7 ) (1.3 )% (1.2 ) Excess tax benefits from stock compensation (4.9 )% (4.5 ) (3.0 )% (3.1 ) — — Research and development and other tax credits (d) (3.3 )% (3.0 ) (2.8 )% (2.9 ) (3.9 )% (3.5 ) Domestic production activities deduction (0.6 )% (0.5 ) (1.5 )% (1.5 ) (2.2 )% (2.0 ) Uncertain income tax positions 0.8 % 0.7 (0.4 )% (0.4 ) 1.3 % 1.2 Change in statutory tax rates (e) (10.6 )% (9.7 ) — % — — % — Other differences — net — % — (0.7 )% (0.7 ) 0.3 % 0.3 Effective income tax rate 12.4 % $ 11.4 28.7 % $ 29.6 32.7 % $ 29.4 _______________________ (a) For 2017, the amount reflects the net benefit of the indefinite reinvestment assertion of $4.1 million , less the $3.8 mandatory one-time tax on the accumulated earnings of foreign subsidiaries from the Tax Act. (b) Represents the impact on the Company's effective tax rate due to changes in the mix of earnings among taxing jurisdictions with differing statutory rates. (c) Represents the impact on the Company's effective tax rate of the Company's financing strategies. (d) For 2015, the Company recognized a $1.4 million benefit related to research and development ("R&D") tax credits of FiberMark for the period 2012 through July 2015. (e) Represents the net benefit from remeasurement of the net deferred tax liabilities, including a tax benefit of $10.3 million from the Tax Act, less $0.6 million of tax expense from a state tax rate change in Germany. |
Schedule of the U.S. and foreign components of income from continuing operations before income taxes | The following table presents the U.S. and foreign components of income from continuing operations before income taxes: Year Ended December 31, 2017 2016 2015 Income from continuing operations before income taxes: U.S. $ 53.6 $ 68.3 $ 62.2 Foreign 38.1 34.7 27.7 Total $ 91.7 $ 103.0 $ 89.9 |
Schedule of components of the provision (benefit) for income taxes | The following table presents the components of the provision (benefit) for income taxes: Year Ended December 31, 2017 2016 2015 Provision (benefit) for income taxes: Current: Federal $ 4.7 $ 7.1 $ 12.7 State 0.5 (0.5 ) 1.3 Foreign 6.4 5.9 5.1 Total current tax provision 11.6 12.5 19.1 Deferred: Federal (1.8 ) 14.8 7.7 State (0.1 ) 1.8 2.3 Foreign 1.7 0.5 0.3 Total deferred tax provision (0.2 ) 17.1 10.3 Total provision for income taxes $ 11.4 $ 29.6 $ 29.4 |
Schedule of components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities, net of reserves for uncertain tax positions and valuation allowances, are as follows: December 31, 2017 2016 Deferred income tax assets (liabilities) Research and development tax credits $ 6.6 $ 15.0 Net operating losses and credits 4.2 10.5 Employee benefits 1.1 26.0 Inventories 0.2 (0.5 ) Accrued liabilities 0.1 3.2 Intangibles (0.5 ) (10.8 ) Accelerated depreciation (1.6 ) (34.0 ) Undistributed foreign earnings — (4.4 ) Other — 1.1 Net deferred income tax assets $ 10.1 $ 6.1 Deferred income tax assets (liabilities) Accelerated depreciation $ (45.1 ) $ (12.3 ) Intangibles (11.4 ) (2.8 ) Interest limitation — (0.3 ) Other 1.3 — Inventories 1.8 0.3 Accrued liabilities 1.9 — Net operating losses 5.0 — Research and development tax credits 8.6 — Employee benefits 22.9 5.0 Net deferred income tax liabilities $ (15.0 ) $ (10.1 ) |
Schedule of reconciliation of the total amounts of uncertain tax positions | The following is a tabular reconciliation of the total amounts of uncertain tax positions as of and for the years ended December 31, 2017 , 2016 and 2015 : For the Years Ended 2017 2016 2015 Balance at January 1, $ 10.3 $ 12.9 $ 7.0 Increases in prior period tax positions 0.4 — 0.5 Decreases in prior period tax positions (1.0 ) (2.6 ) — Increases in current period tax positions 0.7 0.6 5.5 Decreases due to lapse of statute of limitations (1.0 ) (0.3 ) — Increases due to change in tax rates 0.4 — — Increases (decreases) from foreign exchange rate changes 0.2 (0.3 ) (0.1 ) Balance at December 31, $ 10.0 $ 10.3 $ 12.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: December 31, 2017 2016 2021 Senior Notes (5.25% fixed rate) due May 2021 $ 175.0 $ 175.0 Global Revolving Credit Facilities (variable rates) due December 2019 76.9 42.9 Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 6.4 6.8 Deferred financing costs (2.8 ) (3.8 ) Total Debt 255.5 220.9 Less: Debt payable within one year 1.4 1.2 Long-term debt $ 254.1 $ 219.7 |
Schedule of ABR interest rates applicable to outstanding borrowings | ABR borrowings under the Global Revolving Credit Facilities will bear interest at the highest interest rate shown in the following table: Applicable Margin U.S. Revolving Credit Facility German Revolving Credit Facility Prime rate 0.00%-0.50% Not applicable Federal funds rate +0.50% 0.00%-0.50% Not applicable Monthly LIBOR (which cannot be less than zero percent) +1.00% 0.00%-0.50% Not applicable Overnight LIBOR (which cannot be less than zero percent) Not applicable 1.50%-2.00% |
Schedule of debt payments | The following table presents the Company's required debt payments: 2018 2019 2020 2021 2022 Thereafter Total Debt payments $ 1.4 $ 78.2 $ 1.3 $ 176.4 $ 1.0 $ — $ 258.3 |
Pension and Other Postretirem32
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of information for the multi-employer pension plans in which FiberMark participates | Pension Fund EIN/Pension Plan Number Pension Zone Status 2016 FIP/RP Status Pending or Implemented Contributions 2017 Surcharge Imposed ExpirationDate of Collective Bargaining Agreement PACE Industry Union Management Pension Fund 11-6166763 Red Implemented $0.1 million Yes 11/9/2021 |
Schedule of reconciliation of benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans | The following table reconciles the benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans. Pension Benefits Postretirement Year Ended December 31, 2017 2016 2017 2016 Change in Benefit Obligation: Benefit obligation at beginning of year $ 370.9 $ 360.1 $ 40.7 $ 40.5 Service cost 5.5 4.9 1.2 1.3 Interest cost 15.0 15.9 1.4 1.6 Currency 6.8 (3.1 ) 0.6 0.1 Actuarial (gain) loss 33.3 18.2 3.9 (1.2 ) Benefit payments from plans (18.1 ) (17.1 ) (3.8 ) (3.8 ) Settlement payments (1.5 ) (8.1 ) — — Net transfer in (1) 51.7 0.1 — — Other 0.3 — — 2.2 Benefit obligation at end of year $ 463.9 $ 370.9 $ 44.0 $ 40.7 Change in Plan Assets: Fair value of plan assets at beginning of year $ 318.1 $ 308.3 $ — $ — Actual gain (loss) on plan assets 38.5 17.6 — — Employer contributions 14.3 17.8 — — Currency 2.2 (1.7 ) — — Benefit payments (18.1 ) (15.8 ) — — Settlement payments (1.5 ) (8.1 ) — — Net transfers in (1) 46.8 — — — Other 0.1 — — — Fair value of plan assets at end of year $ 400.4 $ 318.1 $ — $ — Reconciliation of Funded Status Fair value of plan assets $ 400.4 $ 318.1 $ — $ — Projected benefit obligation 463.9 370.9 44.0 40.7 Net liability recognized in statement of financial position $ (63.5 ) $ (52.8 ) $ (44.0 ) $ (40.7 ) Amounts recognized in statement of financial position consist of: Current liabilities $ (3.7 ) $ (3.8 ) $ (5.3 ) $ (4.3 ) Noncurrent liabilities (59.8 ) (49.0 ) (38.7 ) (36.4 ) Net amount recognized $ (63.5 ) $ (52.8 ) $ (44.0 ) $ (40.7 ) _______________________ (1) For the year ended December 31, 2017 , the Company acquired $51.7 million of pension liabilities and $46.8 million of pension assets in conjunction with the Coldenhove Acquisition. |
Schedule of amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income consist of: Pension Postretirement December 31, 2017 2016 2017 2016 Accumulated actuarial loss $ 105.9 $ 95.8 $ 8.6 $ 4.9 Prior service cost 0.8 0.9 (0.2 ) (0.4 ) Total recognized in accumulated other comprehensive income $ 106.7 $ 96.7 $ 8.4 $ 4.5 |
Summary of disaggregated information about the pension plans | Summary disaggregated information about the pension plans follows: December 31, Assets Exceed ABO ABO Exceed Assets Total 2017 2016 2017 2016 2017 2016 Projected benefit obligation $ — $ 291.3 $ 463.9 $ 79.6 $ 463.9 $ 370.9 Accumulated benefit obligation — 281.5 451.4 79.4 451.4 360.9 Fair value of plan assets — 284.2 400.4 33.9 400.4 318.1 |
Schedule of components of net periodic benefit cost for Defined Benefit Plans | Components of Net Periodic Benefit Cost Pension Benefits Postretirement Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ 5.5 $ 4.9 $ 5.5 $ 1.2 $ 1.3 $ 1.7 Interest cost 15.0 15.9 13.8 1.4 1.6 1.6 Expected return on plan assets (a) (19.9 ) (18.9 ) (19.3 ) — — — Recognized net actuarial loss 5.6 6.6 6.3 0.3 0.6 0.3 Amortization of prior service cost (credit) 0.2 0.2 0.2 (0.2 ) (0.2 ) (0.2 ) Amount of settlement loss recognized 0.6 0.8 — — — — Net periodic benefit cost (credit) 7.0 9.5 6.5 2.7 3.3 3.4 Amounts related to discontinued operations — — (14.9 ) — — — Net periodic benefit cost $ 7.0 $ 9.5 $ (8.4 ) $ 2.7 $ 3.3 $ 3.4 _______________________ (a) The expected return on plan assets, excluding the Dutch plan assets, is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. The Dutch pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligation |
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Pension Benefits Postretirement Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Net periodic benefit expense $ 7.0 $ 9.5 $ (8.4 ) $ 2.7 $ 3.3 $ 3.4 Accumulated actuarial gain (loss) 10.1 11.7 (7.1 ) 3.7 (0.9 ) 1.1 Prior service cost (credit) (0.1 ) (0.3 ) (0.3 ) 0.2 0.1 0.2 Total recognized in other comprehensive income 10.0 11.4 (7.4 ) 3.9 (0.8 ) 1.3 Total recognized in net periodic benefit cost and other comprehensive income $ 17.0 $ 20.9 $ (15.8 ) $ 6.6 $ 2.5 $ 4.7 |
Schedule of weighted-average assumptions used to determine benefit obligations | Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Pension Benefits Postretirement Benefits Other than Pensions 2017 2016 2017 2016 Discount rate 3.49 % 4.16 % 3.27 % 3.69 % Rate of compensation increase 2.40 % 2.22 % — % — % |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.18 % 4.54 % 3.91 % 3.89 % 4.07 % 4.05 % Expected long-term return on plan assets (a) 6.31 % 6.20 % 6.50 % — % — % — % Rate of compensation increase 2.49 % 2.18 % 2.92 % — % — % — % |
Schedule of pension plan asset allocations | Pension plan asset allocations are as follows: Percentage of Plan 2017 2016 Asset Category (a) Equity securities 35 % 36 % Hedge fund 8 % 7 % Debt securities 57 % 57 % Total 100 % 100 % (a) The asset categories do not include the insurance contract related to the Dutch pension plan. |
Schedule of target investment allocation and permissible allocation range for plan assets by category | The weighted average target investment allocation and permissible allocation range for plan assets by category are as follows: Strategic Target Permitted Range Asset Category Equity securities 35 % 30-40% Hedge fund 8 % 3-12% Debt securities / Fixed Income 57 % 52-62% |
Schedule of future benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Plans Postretirement Benefits Other than Pensions 2018 $ 22.7 $ 5.3 2019 24.4 4.3 2020 21.7 4.6 2021 23.4 4.9 2022 23.3 4.8 Years 2023-2027 128.1 18.1 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans. A one percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage- Point Increase Decrease Effect on total of service and interest cost components $ — $ — Effect on post-retirement benefit other than pension obligation 0.2 (0.3 ) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense and related income tax benefits | Substantially all stock-based compensation expense has been recorded in selling, general and administrative expenses. The following table summarizes stock-based compensation costs and related income tax benefits. Year Ended December 31, 2017 2016 2015 Stock-based compensation expense $ 6.4 $ 5.8 $ 6.5 Income tax benefit (2.5 ) (2.2 ) (2.5 ) Stock-based compensation, net of income tax benefit $ 3.9 $ 3.6 $ 4.0 |
Schedule of total compensation costs related to the Company's equity awards and amounts recognized | The following table summarizes total compensation costs related to the Company's equity awards and amounts recognized in the year ended December 31, 2017 . Stock Options Performance Unrecognized compensation cost — December 31, 2016 $ 0.6 $ 1.7 Grant date fair value current year grants 1.9 5.1 Compensation expense recognized (1.9 ) (4.5 ) Unrecognized compensation cost — December 31, 2017 $ 0.6 $ 2.3 Expected amortization period (in years) 1.8 1.7 |
Schedule of stock options awarded | The following tables present information regarding stock options awarded during the years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Nonqualified stock options granted 144,089 113,935 87,930 Per share weighted-average exercise price $ 82.11 $ 58.03 $ 59.72 Per share weighted-average grant date fair value $ 13.54 $ 13.51 $ 16.47 |
Schedule of assumptions used to determine the grant date fair value of options granted | The weighted-average grant date fair value for stock options granted for the years ended December 31, 2017 , 2016 and 2015 was estimated using the Black-Scholes option valuation model with the following assumptions: 2017 2016 2015 Expected term in years 5.8 5.8 5.8 Risk free interest rate 2.1 % 1.8 % 1.4 % Volatility 22.9 % 32.1 % 34.4 % Dividend yield 3.0 % 3.0 % 2.0 % |
Schedule of stock option activity under the Omnibus Plan | The following table summarizes stock option activity under the Omnibus Plan for the year ended December 31, 2017 : Number of Weighted-Average Options outstanding — December 31, 2016 530,462 $ 38.35 Add: Options granted 144,089 $ 82.11 Less: Options exercised 207,973 $ 29.88 Less: Options forfeited/cancelled 1,620 $ 65.60 Options outstanding — December 31, 2017 464,958 $ 55.60 |
Schedule of outstanding and exercisable stock options summarized by exercise price | The status of outstanding and exercisable stock options as of December 31, 2017 , summarized by exercise price follows: Options Vested or Expected to Vest Options Exercisable Exercise Price Number of Weighted- Weighted- Aggregate Number of Weighted- Aggregate $7.41 — $19.25 52,727 1.9 $ 13.06 $ 4.1 52,727 $ 13.06 $ 4.1 $21.13 — $31.23 58,490 3.9 $ 27.56 3.7 58,490 $ 27.56 3.7 $42.82 — $51.99 37,526 6.0 $ 43.49 1.8 37,526 $ 43.49 1.8 $55.49 — $60.56 172,626 7.5 $ 58.68 5.5 76,141 $ 58.93 2.4 >$60.56 143,589 8.5 $ 82.11 1.2 17,060 $ 82.15 0.1 464,958 6.6 $ 55.60 $ 16.3 241,944 $ 40.59 $ 12.1 _______________________ (a) Represents the total pre-tax intrinsic value as of December 31, 2017 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $90.65 on December 31, 2017 . |
Schedule of status of the Company's unvested stock options | The following table summarizes the status of the Company's unvested stock options as of December 31, 2017 and activity for the year then ended: Number of Weighted-Average Outstanding — December 31, 2016 194,126 $ 15.15 Add: Options granted 144,089 $ 13.54 Less: Options vested 115,201 $ 14.06 Outstanding — December 31, 2017 223,014 $ 13.87 |
Summary of activity of unvested stock-based awards | The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2017 , 2016 and 2015 : RSUs Weighted-Average PSUs Weighted-Average Outstanding — December 31, 2014 105,294 $ 31.15 58,270 $ 74.79 Shares granted (a) 13,415 $ 61.41 45,060 $ 78.32 Shares vested (105,564 ) $ 32.12 (810 ) $ 78.32 Performance Shares vested 107,219 $ 40.65 (58,270 ) $ 74.79 Shares expired or cancelled (1,526 ) $ 51.14 (1,200 ) $ 78.32 Outstanding — December 31, 2015 118,838 $ 43.29 43,050 $ 78.32 Shares granted (a) 10,047 $ 68.25 54,364 $ 73.82 Shares vested (110,749 ) $ 42.96 — $ — Performance Shares vested 62,874 $ 53.63 (43,050 ) $ 78.32 Shares expired or cancelled (291 ) $ 40.65 (858 ) $ 75.98 Outstanding — December 31, 2016 80,719 $ 54.91 53,506 $ 73.79 Shares granted (a) 10,318 $ 76.84 41,883 $ 81.85 Shares vested (72,451 ) $ 55.26 — $ — Performance Shares vested 73,838 $ 52.11 (53,506 ) $ 73.79 Shares expired or cancelled (3,625 ) $ 50.48 (506 ) $ 81.85 Outstanding — December 31, 2017 (b) 88,799 $ 53.33 41,377 $ 81.85 ___________________________ (a) For the years ended December 31, 2017 , 2016 and 2015 , includes 226 RSUs, 312 RSUs and 495 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. (b) The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2017 was $8.0 million . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in comprehensive income: Year Ended December 31, 2017 2016 2015 Pretax Tax Net Pretax Tax Net Pretax Tax Net Unrealized foreign currency translation gains (losses) $ 20.0 $ — $ 20.0 $ (7.1 ) $ 0.4 $ (6.7 ) $ (15.0 ) $ — $ (15.0 ) Unrealized loss on "available-for-sale" securities (0.4 ) 0.1 (0.3 ) — — — — — — Adjustment to pension and other benefit liabilities (13.8 ) 2.9 (10.9 ) (10.0 ) 3.0 (7.0 ) 6.3 (1.2 ) 5.1 Other comprehensive income (loss) $ 5.8 $ 3.0 $ 8.8 $ (17.1 ) $ 3.4 $ (13.7 ) $ (8.7 ) $ (1.2 ) $ (9.9 ) The components of accumulated other comprehensive income (loss), net of applicable income taxes are as follows: December 31, 2017 2016 Unrealized foreign currency translation losses, net of income tax benefit of $0.4 and $0.4, respectively $ (7.5 ) $ (27.5 ) Unrealized loss on "available-for-sale" securities, net of income tax benefit of $0.1 million (0.3 ) — Net loss from pension and other postretirement benefit liabilities, net of income tax benefits of $28.8 million and $36.8 million, respectively (a) (86.3 ) (64.5 ) Accumulated other comprehensive loss $ (94.1 ) $ (92.0 ) _________________ (a) In conjunction with the Tax Act, The Company early adopted ASU 2018-02 in the fourth quarter of 2017 and accordingly reclassified $10.9 million related to stranded tax effects resulting from the Tax Act from AOCI to retained earnings. The Company’s policy is to release stranded tax effects for “available-for-sale” securities using the portfolio approach. |
Schedules of shares purchased under stock purchase plan | The following table shows shares purchased under the respective stock purchase plans: Year Ended December 31, 2017 2016 2015 Shares $ Shares $ Shares $ 2017 Stock Purchase Plan — $ — 2016 Stock Purchase Plan 85,354 $ 6.8 91,542 $ 7.4 2015 Stock Purchase Plan 93,600 $ 5.2 42,100 $ 2.4 2014 Stock Purchase Plan 60,900 $ 3.5 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments | |
Schedule of future minimum obligations under operating leases | The future minimum obligations under operating leases having a noncancelable term in excess of one year as of December 31, 2017, are as follows: 2018 $ 4.0 2019 2.6 2020 2.1 2021 1.8 2022 1.6 Thereafter 3.7 Future minimum lease obligations $ 15.8 |
Contingencies and Legal Matte36
Contingencies and Legal Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of bargaining agreements | The following table shows the status of the Company's bargaining agreements as of December 31, 2017 . Contract Expiration Date Location Union Number of Employees January 2018 (c) Whiting, WI (b) USW 201 June 2018 Neenah, WI (b) USW 264 July 2018 Munising, MI (b) USW 203 February 2019 Neenah Germany IG BCE (a) May 2019 Appleton, WI (b) USW 103 August 2021 Brattleboro, VT USW 94 November 2021 Lowville, NY USW 108 _______________________ (a) Under German law union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE cannot be determined. (b) On pension matters, the Whiting, Neenah, Munising and Appleton mills have bargained jointly with the USW. The current agreement on pension matters will remain in effect until September 2019. (c) The Company is currently in negotiations with the USW and a new contract is expected to be signed in 2018. Until a new contract is signed, the terms of the previous contract still apply. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of selected financial information for discontinued operations | The following table presents selected financial information for discontinued operations: For the Year ended December 31, 2017 2016 2015 Net sales $ — $ — $ 43.2 Cost of products sold — — 39.7 Gross Profit — — 3.5 Selling, general and administrative expenses — — 3.5 Restructuring costs — — 0.1 Other income — net — — (0.3 ) Income (Loss) From Discontinued Operations Before Income Taxes — — 0.2 Loss on sale (a) — (0.6 ) (13.6 ) Income (loss) before income taxes — (0.6 ) (13.4 ) Income tax provision (benefit) (a) — (0.2 ) (4.0 ) Income (loss) from discontinued operations $ — $ (0.4 ) $ (9.4 ) _______________________ (a) For 2015, this amount includes a net curtailment gain related to the divesture of the pension plan of $15.8 million , including a $5.5 million write-off of deferred actuarial losses. |
Schedule of selected cash flow information for discontinued operations | The following table presents selected cash flow information for discontinued operations for the year ended December 31, 2015: For the Year ended December 31, 2017 2016 2015 Depreciation and amortization $ — $ — $ 2.7 Capital expenditures $ — $ — $ 0.6 |
Business Segment and Geograph38
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of net sales by product | The following table presents sales by product category for the fine paper and packaging business: Year Ended December 31, 2017 2016 2015 Graphic Imaging 80 % 81 % 80 % Packaging 16 % 14 % 15 % Filing/Office 4 % 5 % 5 % Total 100 % 100 % 100 % The following table presents sales by product category for the technical products business: Year Ended December 31, 2017 2016 2015 Filtration 44 % 42 % 45 % Backings 32 % 31 % 30 % Specialty 24 % 27 % 25 % Total 100 % 100 % 100 % |
Schedule of net sales, operating income (loss) and total assets for each business segment | Business Segments Year Ended December 31, 2017 2016 2015 Net sales Technical Products $ 502.1 $ 466.4 $ 429.2 Fine Paper and Packaging 455.3 452.1 442.7 Other 22.5 23.0 15.8 Consolidated $ 979.9 $ 941.5 $ 887.7 Year Ended December 31, 2017 2016 2015 Operating income (loss) Technical Products (a) $ 55.3 $ 65.6 $ 54.1 Fine Paper and Packaging (b) 69.5 70.7 67.3 Other (c) (0.4 ) (1.1 ) (2.0 ) Unallocated corporate costs (d) (20.1 ) (21.1 ) (18.0 ) Consolidated $ 104.3 $ 114.1 $ 101.4 _______________________ (a) Operating income for the year ended December 31, 2016 included integration costs of $1.4 million . Operating income for the year ended December 31, 2015 included acquisition, integration and restructuring costs of $1.7 million . (b) Operating income for the year ended December 31, 2017 included a representations and warranties insurance settlement of $2.9 million . Operating income for the years ended December 31, 2016 and 2015 included acquisition and integration costs of $1.8 million and $1.5 million , respectively. (c) Operating income for the year ended December 31, 2017 included a representations and warranties insurance settlement of $0.3 million . Operating income for the years ended December 31, 2016 and 2015 included acquisition and integration costs of $1.1 million and $2.4 million , respectively. (d) Unallocated corporate costs for the year ended December 31, 2017 included acquisition and integration costs of $1.3 million and $0.6 million from pension plan and SERP settlement costs. December 31, 2016 included $2.7 million of pre-operating costs related to conversion of a fine paper machine to filtration and $0.8 million for a pension plan settlement charge. December 31, 2015 included $0.8 million of costs related to this filtration project. Year Ended December 31, 2017 2016 2015 Depreciation and amortization Technical Products $ 19.4 $ 18.1 $ 16.5 Fine Paper and Packaging 11.0 11.1 9.8 Other 1.2 1.3 0.6 Corporate 1.7 1.5 1.9 Total Continuing Operations 33.3 32.0 28.8 Discontinued operations — — 2.7 Consolidated $ 33.3 $ 32.0 $ 31.5 Year Ended December 31, 2017 2016 2015 Capital expenditures Technical Products $ 28.6 $ 57.9 $ 36.0 Fine Paper and Packaging 12.5 7.6 10.3 Other 1.1 0.3 0.4 Corporate 0.5 2.7 0.8 Total Continuing Operations 42.7 68.5 47.5 Discontinued operations — — 0.6 Consolidated $ 42.7 $ 68.5 $ 48.1 December 31, 2017 2016 Total Assets (a) Technical Products $ 613.0 $ 487.6 Fine Paper and Packaging 261.6 248.9 Corporate and other (b) 29.8 29.1 Total $ 904.4 $ 765.6 _______________________ (a) Segment identifiable assets are those that are directly used in the segments operations. (b) Corporate assets are primarily cash and income taxes. |
Schedule of net sales and assets by geographic areas | Geographic Information Year Ended December 31, 2017 2016 2015 Net sales United States $ 748.9 $ 727.6 $ 687.3 Europe 231.0 213.9 200.4 Consolidated $ 979.9 $ 941.5 $ 887.7 |
Long-lived Assets by Geographic Areas | December 31, 2017 2016 Long-Lived Assets United States $ 393.1 $ 377.4 Europe 226.1 151.9 Total $ 619.2 $ 529.3 |
Supplemental Data (Tables)
Supplemental Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of advertising and research and development expenses | Summary of Advertising and Research and Development Expenses Year Ended December 31, 2017 2016 2015 Advertising expense $ 6.0 $ 6.2 $ 6.8 Research and development expense 8.9 9.4 6.8 _______________________ (a) Advertising expense and research and development expense are recorded in selling, general and administrative expenses on the consolidated statements of operations. |
Summary of accounts receivable - net | Summary of Accounts Receivable — net December 31, 2017 2016 From customers $ 117.0 $ 98.0 Less allowance for doubtful accounts and sales discounts (1.3 ) (1.5 ) Total $ 115.7 $ 96.5 |
Schedule of inventories by major class | Summary of Inventories December 31, 2017 2016 Inventories by Major Class: Raw materials $ 36.2 $ 31.6 Work in progress 35.0 26.8 Finished goods 79.2 63.0 Supplies and other 3.6 3.1 154.0 124.5 Excess of FIFO over LIFO cost (10.5 ) (8.2 ) Total $ 143.5 $ 116.3 |
Summary of prepaid and other current assets | Summary of Prepaid and Other Current Assets December 31, 2017 2016 Prepaid and other current assets $ 11.3 $ 10.5 Spare parts 6.9 5.8 Receivable for income taxes 3.3 4.1 Total $ 21.5 $ 20.4 |
Summary of property, plant and equipment - net | Summary of Property, Plant and Equipment — Net December 31, 2017 2016 Land and land improvements $ 20.2 $ 18.3 Buildings 157.7 126.1 Machinery and equipment 650.8 597.5 Construction in progress 21.8 13.7 850.5 755.6 Less accumulated depreciation 425.3 391.0 Net Property, Plant and Equipment $ 425.2 $ 364.6 |
Summary of accrued expenses | Summary of Accrued Expenses December 31, 2017 2016 Accrued salaries and employee benefits $ 29.6 $ 26.3 Amounts due to customers 7.2 7.3 Accrued interest 1.3 1.3 Accrued income taxes 4.2 2.0 Other 15.2 14.3 Total $ 57.5 $ 51.2 |
Summary of noncurrent employee benefits | Summary of Noncurrent Employee Benefits December 31, 2017 2016 Pension benefits $ 59.8 $ 49.0 Post-employment benefits other than pensions (a) 40.5 37.7 Total $ 100.3 $ 86.7 _______________________ (a) Includes $1.8 million of SRCP benefits as of December 31, 2017 and $1.3 million of SRCP benefits as of December 31, 2016. |
Schedule of supplemental disclosure of cash flow information | Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2017 2016 2015 Cash paid during the year for interest, net of interest expense capitalized $ 11.3 $ 10.0 $ 10.6 Cash paid during the year for income taxes, net of refunds 7.6 15.0 16.2 Non-cash investing activities: Liability for equipment acquired 5.4 11.1 6.6 |
Schedule of net cash provided by (used in) changes in working capital, net of effect of acquisitions | Net cash provided by (used in) changes in operating working capital, net of effect of acquisitions Year Ended December 31, 2017 2016 2015 Accounts receivable $ (10.2 ) $ 1.5 $ (5.2 ) Inventories (11.7 ) 4.3 7.7 Income taxes receivable/payable 4.5 (1.5 ) 1.0 Prepaid and other current assets (0.4 ) — (4.8 ) Accounts payable 10.6 (2.7 ) (0.5 ) Accrued expenses (4.2 ) (2.8 ) 3.2 Other (0.4 ) — 0.4 Total $ (11.8 ) $ (1.2 ) $ 1.8 |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly data | 2017 Quarters First Second (a) Third (b) Fourth (c) Year Net Sales $ 242.1 $ 248.7 $ 245.1 $ 244.0 $ 979.9 Gross Profit 52.0 53.6 48.0 45.1 198.7 Operating Income 27.0 29.2 29.0 19.1 104.3 Income From Continuing Operations 17.6 25.0 18.8 18.9 80.3 Earnings Per Common Share From Continuing Operations: Basic $ 1.04 $ 1.47 $ 1.11 $ 1.11 $ 4.74 Diluted $ 1.03 $ 1.46 $ 1.10 $ 1.10 $ 4.68 _______________________ (a) Income from continuing operations includes a prior year tax adjustment of $4.1 million related to the Company's assertion of indefinite reinvestment of undistributed earnings of foreign subsidiaries. (b) Includes proceeds of a representations and warranties insurance settlement related to the FiberMark acquisition of $ 3.2 million , less acquisition costs of $0.7 million and SERP settlement charges of $0.2 million . (c) Includes acquisition/integration costs of $0.6 million and pension/SERP settlement charges of $0.4 million . Also, income from continuing operations includes net tax benefits of $5.9 million , primarily from the Tax Act. 2016 Quarters First Second Third Fourth (e) Year (d)(e) Net Sales $ 242.1 $ 246.0 $ 232.9 $ 220.5 $ 941.5 Gross Profit 58.8 60.0 49.2 46.5 214.5 Operating Income 31.4 33.9 26.9 21.9 114.1 Income From Continuing Operations 19.2 21.4 16.4 16.4 73.4 Earnings Per Common Share From Continuing Operations: Basic $ 1.13 $ 1.26 $ 0.97 $ 0.97 $ 4.33 Diluted $ 1.11 $ 1.24 $ 0.95 $ 0.95 $ 4.26 _______________________ (d) Includes integration/restructuring costs of $7.0 million . (e) Includes a pension plan settlement charge of $0.8 million . |
Background and Basis of Prese41
Background and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2017primary_operations | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of primary operations | 2 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Postretirement Benefits Other than Pensions | ||
Cash and Cash Equivalents | ||
Restricted cash and cash equivalent | $ 0.1 | $ 0.3 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Property and Depreciation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Property and Depreciation | |
Assets in which units-of-production method of depreciation is used | $ 66.6 |
Buildings | |
Property and Depreciation | |
Weighted average useful lives | 20 years |
Land improvements | |
Property and Depreciation | |
Weighted average useful lives | 12 years |
Machinery and equipment | |
Property and Depreciation | |
Weighted average useful lives | 9 years 6 months |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2013 |
Marketable securities | |||
Cost of marketable securities | $ 4.1 | ||
Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | |||
Fair Value of Financial Instruments | |||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | |
Secured debt | Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 | |||
Fair Value of Financial Instruments | |||
Fixed rate of interest (as a percent) | 2.45% | ||
Carrying Value | |||
Fair Value of Financial Instruments | |||
Debt fair value | $ 258.3 | $ 224.7 | |
Carrying Value | Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | |||
Fair Value of Financial Instruments | |||
Debt fair value | 175 | 175 | |
Carrying Value | Line of credit | Global Revolving Credit Facilities (variable rates) due December 2019 | |||
Fair Value of Financial Instruments | |||
Debt fair value | 76.9 | 42.9 | |
Carrying Value | Secured debt | Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 | |||
Fair Value of Financial Instruments | |||
Debt fair value | 6.4 | 6.8 | |
Fair Value | |||
Fair Value of Financial Instruments | |||
Debt fair value | 253.5 | 219.2 | |
Fair Value | Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | |||
Fair Value of Financial Instruments | |||
Debt fair value | 170.2 | 169.5 | |
Fair Value | Line of credit | Global Revolving Credit Facilities (variable rates) due December 2019 | |||
Fair Value of Financial Instruments | |||
Debt fair value | 76.9 | 42.9 | |
Fair Value | Secured debt | Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 | |||
Fair Value of Financial Instruments | |||
Debt fair value | 6.4 | $ 6.8 | |
Fair Value | Level 1 | Other assets | |||
Marketable securities | |||
Fair value of marketable securities | $ 3.6 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Fair Value Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
W.A. Sanders Coldenhove Holding B.V. | Insurance Contracts Acquired in Business Combination | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Transfers into/ (out of) Level 3 | $ 46.8 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 400.4 | $ 318.1 | $ 308.3 |
Pension Benefits | W.A. Sanders Coldenhove Holding B.V. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46.8 | ||
Cash and cash equivalents | Level 1 | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.6 | 1.5 | |
U.S. and Non-U.S. Equities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets measured at NAV | 123.2 | 112.2 | |
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets measured at NAV | 199 | 181.1 | |
Hedge Funds | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets measured at NAV | $ 28.2 | $ 23.3 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Summary of the Changes in Level 3 Defined Benefit Plan Assets (Details) - Fair Value, Inputs, Level 3 - W.A. Sanders Coldenhove Holding B.V. - Insurance Contracts Acquired in Business Combination $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation | |
Fair value of plan assets at beginning of year | $ 0 |
Attributable to Assets Held at December 31 | 0.2 |
Attributable to Assets Sold | 0 |
Net Purchases/ (Settlements) | 0.1 |
Transfers into/ (out of) Level 3 | 46.8 |
Foreign currency effects | 1.3 |
Fair value of plan assets at end of year | $ 48.4 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | $ (10.9) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | $ 10.9 |
Earnings per Share ("EPS") - Na
Earnings per Share ("EPS") - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive options, excluded from the computation of dilutive common shares (shares) | 72,000 | 35,000 | 45,000 |
Earnings per Share ("EPS") - Sc
Earnings per Share ("EPS") - Schedule of Earnings Per Share Calculations, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per basic common share | |||||||||||
Income from continuing operations | $ 18.9 | $ 18.8 | $ 25 | $ 17.6 | $ 16.4 | $ 16.4 | $ 21.4 | $ 19.2 | $ 80.3 | $ 73.4 | $ 60.5 |
Amounts attributable to participating securities | (0.6) | (0.7) | (0.6) | ||||||||
Income from continuing operations available to common stockholders | 79.7 | 72.7 | 59.9 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | (0.4) | (9.4) | ||||||||
Amounts attributable to participating securities | 0 | 0 | 0.1 | ||||||||
Net income available to common stockholders | $ 79.7 | $ 72.3 | $ 50.6 | ||||||||
Weighted-average basic shares outstanding (in shares) | 16,805 | 16,773 | 16,754 | ||||||||
Continuing operations (in dollars per share) | $ 1.11 | $ 1.11 | $ 1.47 | $ 1.04 | $ 0.97 | $ 0.97 | $ 1.26 | $ 1.13 | $ 4.74 | $ 4.33 | $ 3.58 |
Discontinued operations (in dollars per share) | 0 | (0.02) | (0.56) | ||||||||
Basic (in dollars per share) | $ 4.74 | $ 4.31 | $ 3.02 | ||||||||
Earnings per diluted common share | |||||||||||
Income from continuing operations | $ 18.9 | $ 18.8 | $ 25 | $ 17.6 | $ 16.4 | $ 16.4 | $ 21.4 | $ 19.2 | $ 80.3 | $ 73.4 | $ 60.5 |
Amounts attributable to participating securities | (0.5) | (0.6) | (0.5) | ||||||||
Income from continuing operations available to common stockholders | 79.8 | 72.8 | 60 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | (0.4) | (9.4) | ||||||||
Amounts attributable to participating securities | 0 | 0 | 0.1 | ||||||||
Net income available to common stockholders | $ 79.8 | $ 72.4 | $ 50.7 | ||||||||
Weighted-average basic shares outstanding (in shares) | 16,805 | 16,773 | 16,754 | ||||||||
Add: Assumed incremental shares under stock-based compensation plans (shares) | 247 | 314 | 258 | ||||||||
Weighted average diluted shares (in shares) | 17,052 | 17,087 | 17,012 | ||||||||
Continuing operations (in dollars per share) | $ 1.10 | $ 1.10 | $ 1.46 | $ 1.03 | $ 0.95 | $ 0.95 | $ 1.24 | $ 1.11 | $ 4.68 | $ 4.26 | $ 3.53 |
Discontinued operations (in dollars per share) | 0 | (0.02) | (0.55) | ||||||||
Diluted (in dollars per share) | $ 4.68 | $ 4.24 | $ 2.98 |
Acquisitions - Codenhove Acquis
Acquisitions - Codenhove Acquisition Narrative (Details) - USD ($) | Nov. 01, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||||||
Acquisition/integration/restructuring costs | $ 1,300,000 | $ 7,000,000 | $ 6,500,000 | |||||||||
Net sales | $ 244,000,000 | $ 245,100,000 | $ 248,700,000 | $ 242,100,000 | $ 220,500,000 | $ 232,900,000 | $ 246,000,000 | $ 242,100,000 | 979,900,000 | $ 941,500,000 | $ 887,700,000 | |
W.A. Sanders Coldenhove Holding B.V. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition, purchase price | $ 45,000,000 | |||||||||||
Payment for debt extinguishment | 3,000,000 | |||||||||||
Payments to acquire business, cash on hand at date of transaction | 17,000,000 | |||||||||||
Goodwill expected to be deductible for income tax purpose | 0 | |||||||||||
Acquisition/integration/restructuring costs | 1,300,000 | |||||||||||
Net sales | $ 7,500,000 | |||||||||||
Global Revolving Credit Facilities (variable rates) due December 2019 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Borrowings on line of credit | $ 31,000,000 |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed Codenhove Acquisition (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Nov. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets Acquired | ||||
Acquired goodwill | $ 85.3 | $ 70.4 | $ 72.2 | |
W.A. Sanders Coldenhove Holding B.V. | ||||
Assets Acquired | ||||
Cash and cash equivalents | 4.9 | |||
Accounts receivable | 4.7 | |||
Inventories | 12.7 | |||
Deferred income taxes | 0.4 | |||
Prepaid and other current assets | 0.2 | |||
Property, plant and equipment | 31.2 | |||
Non-amortizable intangible assets | 1.2 | $ 1.2 | ||
Amortizable intangible assets | 4.7 | $ 4.7 | ||
Acquired goodwill | 10 | |||
Other assets | 0.1 | |||
Total assets acquired | 70.1 | |||
Liabilities Assumed | ||||
Accounts payable | 4.1 | |||
Accrued expenses | 5.4 | |||
Contingent liability (1) | 2.3 | |||
Deferred income taxes | 3.5 | |||
Noncurrent employee benefits | 4.9 | |||
Long-term debt | 1.8 | |||
Other noncurrent obligations | 0.1 | |||
Total liabilities assumed | 22.1 | |||
Net assets acquired | $ 48 |
Acquisitions - Summary of Profo
Acquisitions - Summary of Proforma Information Codenhove Acquisition (Details) - W.A. Sanders Coldenhove Holding B.V. - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 1,019.8 | $ 986.9 |
Operating income | 108.9 | 116.7 |
Income from continuing operations | 83 | 74.8 |
Income (loss) from discontinued operations | 0 | (0.4) |
Net income | $ 83 | $ 74.4 |
Basic earnings (loss) per share - Continuing operations (USD per share) | $ 4.90 | $ 4.42 |
Basic earnings (loss) per share - Discontinued operations (USD per share) | 0 | (0.02) |
Basic earnings (loss) per share (USD per share) | 4.90 | 4.40 |
Diluted earnings (loss) per share - Continuing operations (USD per share) | 4.84 | 4.34 |
Diluted earnings (loss) per share - Discontinued operations (USD per share) | 0 | (0.02) |
Diluted earnings (loss) per share (USD per share) | $ 4.84 | $ 4.32 |
Acquisitions - FiberMark Acquis
Acquisitions - FiberMark Acquisition Narrative (Details) - USD ($) | Aug. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2017 |
Business Acquisition [Line Items] | |||||
Document Period End Date | Dec. 31, 2017 | ||||
Acquired goodwill | $ 85,300,000 | $ 70,400,000 | $ 72,200,000 | ||
Acquisition/integration/restructuring costs | 1,300,000 | 7,000,000 | 6,500,000 | ||
FiberMark | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, purchase price | $ 118,000,000 | ||||
Goodwill expected to be deductible for income tax purpose | $ 0 | ||||
Acquisition/integration/restructuring costs | 4,300,000 | 5,300,000 | |||
Net sales of acquiree since acquisition | 58,100,000 | ||||
Income from operations before income taxes of acquiree since acquisition | 1,500,000 | ||||
Various uncertain tax positions balance | 4,700,000 | ||||
Purchase price for uncertain tax position for goodwill | 3,700,000 | ||||
Purchase price for uncertain tax position for current assets | 1,000,000 | ||||
Technical Products | |||||
Business Acquisition [Line Items] | |||||
Acquired goodwill | $ 78,700,000 | $ 63,800,000 | $ 65,600,000 | ||
Technical Products | FiberMark | |||||
Business Acquisition [Line Items] | |||||
Acquired goodwill | 18,900,000 | ||||
Fine Paper and Packaging | FiberMark | |||||
Business Acquisition [Line Items] | |||||
Acquired goodwill | 6,200,000 | ||||
Other | FiberMark | |||||
Business Acquisition [Line Items] | |||||
Acquired goodwill | $ 400,000 |
Acquisitions - Summary of Pro54
Acquisitions - Summary of Proforma Information FiberMark Acquisition (Details) - FiberMark - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Nov. 01, 2017 | |
Business Acquisition [Line Items] | ||
Goodwill expected to be deductible for income tax purpose | $ 0 | |
Net sales | $ 984,000,000 | |
Operating income | 103,700,000 | |
Income from continuing operations | 61,700,000 | |
Income (loss) from discontinued operations | (9,400,000) | |
Net income | $ 52,300,000 | |
Basic earnings (loss) per share - Continuing operations (USD per share) | $ 3.65 | |
Basic earnings (loss) per share - Discontinued operations (USD per share) | (0.56) | |
Basic earnings (loss) per share (USD per share) | 3.09 | |
Diluted earnings (loss) per share - Continuing operations (USD per share) | 3.60 | |
Diluted earnings (loss) per share - Discontinued operations (USD per share) | (0.55) | |
Diluted earnings (loss) per share (USD per share) | $ 3.05 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Changes in carrying value of goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |
Goodwill [Roll Forward] | ||||
Goodwill, net, beginning balance | $ 72,200,000 | 70,400,000 | 72,200,000 | |
Adjustment of goodwill acquired in the Fibermark Acquisition | (400,000) | |||
Foreign currency translation | 4,900,000 | (1,400,000) | ||
Goodwill acquired in the Coldenhove Acquisition | 10,000,000 | |||
Goodwill, net, ending balance | $ 85,300,000 | 70,400,000 | 72,200,000 | |
Minimum | ||||
Goodwill [Line Items] | ||||
Useful lives | 10 years | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Useful lives | 15 years | |||
Technical Products | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 110,700,000 | $ 107,400,000 | 110,700,000 | |
Accumulated Impairment Loss, beginning of period | (45,100,000) | (43,600,000) | (45,100,000) | |
Goodwill, net, beginning balance | 65,600,000 | 63,800,000 | 65,600,000 | |
Adjustment of goodwill acquired in the Fibermark Acquisition | (400,000) | (400,000) | ||
Foreign currency translation gross impact | 10,900,000 | (2,900,000) | ||
Foreign currency translation, Accumulated Impairment Losses Impact | (6,000,000) | 1,500,000 | ||
Foreign currency translation | 4,900,000 | (1,400,000) | ||
Goodwill acquired in the Coldenhove Acquisition | 10,000,000 | |||
Goodwill gross, ending balance | 128,300,000 | 107,400,000 | 110,700,000 | |
Accumulated Impairment Loss, end of period | (49,600,000) | (43,600,000) | (45,100,000) | |
Goodwill, net, ending balance | 78,700,000 | 63,800,000 | 65,600,000 | |
Fine Paper and Packaging | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 6,200,000 | 6,200,000 | 6,200,000 | |
Goodwill gross, ending balance | 6,200,000 | 6,200,000 | 6,200,000 | |
Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | $ 400,000 | 400,000 | 400,000 | |
Goodwill gross, ending balance | 400,000 | $ 400,000 | $ 400,000 | |
W.A. Sanders Coldenhove Holding B.V. | ||||
Goodwill [Roll Forward] | ||||
Goodwill, net, ending balance | 10,000,000 | |||
W.A. Sanders Coldenhove Holding B.V. | Technical Products | ||||
Goodwill [Roll Forward] | ||||
Goodwill acquired in the Coldenhove Acquisition | $ 10,000,000 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Other intangible assets (Details) - USD ($) $ in Millions | Nov. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Net identifiable intangible assets | $ 78.7 | $ 74 | ||
Amortizable intangible assets, Gross Amount | 61.6 | 55.8 | ||
Accumulated Amortization | (20.9) | (18) | ||
Total gross intangible assets | 99.6 | 92 | ||
Aggregate amortization expense of acquired intangible assets | 3.7 | 3.9 | $ 2.9 | |
Estimated annual amortization expense | ||||
2,018 | 3.9 | |||
2,019 | 3.9 | |||
2,020 | 3.9 | |||
2,021 | 3.7 | |||
2,022 | 3 | |||
Trade names | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Non-amortizable, Gross Amount | 38 | 36.2 | ||
Customer based intangibles | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Amortizable intangible assets, Gross Amount | 39.2 | 34.4 | ||
Accumulated Amortization | (14.7) | (11.1) | ||
Trade names and trademarks | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Amortizable intangible assets, Gross Amount | 5.2 | 6.8 | ||
Accumulated Amortization | (2.3) | (4.2) | ||
Acquired technology | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Amortizable intangible assets, Gross Amount | 17.2 | 14.6 | ||
Accumulated Amortization | (3.9) | $ (2.7) | ||
W.A. Sanders Coldenhove Holding B.V. | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Intangible assets-definite lived | $ 4.7 | 4.7 | ||
Non-amortizable trade names | 1.2 | $ 1.2 | ||
Total intangible assets | 5.9 | |||
W.A. Sanders Coldenhove Holding B.V. | Customer based intangibles | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Intangible assets-definite lived | $ 2.9 | |||
Estimated Useful Lives (Years) | 15 years | |||
W.A. Sanders Coldenhove Holding B.V. | Trade names and trademarks | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Intangible assets-definite lived | $ 0.5 | |||
Estimated Useful Lives (Years) | 10 years | |||
W.A. Sanders Coldenhove Holding B.V. | Acquired technology | ||||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | ||||
Intangible assets-definite lived | $ 1.3 | |||
Estimated Useful Lives (Years) | 4 years |
Income Taxes Income Taxes - Tax
Income Taxes Income Taxes - Tax Cuts And Jobs Act Of 2017 Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Tax cuts and jobs act of 2017, incomplete accounting, provisional income tax expense (benefit) | $ (6.5) | |||
Tax cuts and jobs act of 2017, change in tax rate, deferred tax liability, income tax (expense) benefit | 10.3 | |||
Tax cuts and jobs act of 2017, transition tax for accumulated foreign earnings, income tax expense (benefit) | 3.8 | |||
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | (10.9) | |||
Elimination of foreign earnings repatriated | 0 | $ (4.4) | ||
Tax cuts and jobs act of 2017, measurement period adjustment, decrease in deferred tax assets (liabilities), net | 8.1 | |||
Change in statutory tax rate, amount | (9.7) | $ 0 | $ 0 | |
Tax Cuts and Jobs Act of 2017, deferred income tax benefit | 1.6 | |||
Tax cuts and jobs act of 2017, transition tax for accumulated foreign earnings | 2.2 | |||
Retained Earnings | ||||
Tax Credit Carryforward [Line Items] | ||||
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | 10.9 | |||
Federal Ministry of Finance, Germany | ||||
Tax Credit Carryforward [Line Items] | ||||
Elimination of foreign earnings repatriated | $ 4.1 | |||
Change in statutory tax rate, amount | $ 0.6 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2017 | |
Difference between the effective income tax provision rate and the U.S. federal statutory income tax provision rate | ||||
U.S. federal statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% | |
U.S. state income taxes, net of federal income tax benefit (as a percent) | 1.90% | 1.90% | 2.10% | |
Tax on foreign dividends | (0.30%) | |||
Tax on foreign dividends (as a percent) | 4.50% | 3.60% | ||
Foreign tax rate differences (as a percent) | (3.40%) | (2.70%) | (2.20%) | |
Foreign financing structure (as a percent) | (2.20%) | (1.60%) | (1.30%) | |
Excess tax benefits from stock compensation (as a percent) | (4.90%) | (3.00%) | (0.00%) | |
Research and development and other tax credits (as a percent) | (3.30%) | (2.80%) | (3.90%) | |
Domestic production activities deduction (as a percent) | (0.60%) | (1.50%) | (2.20%) | |
Uncertain income tax positions (as a percent) | 0.80% | (0.40%) | 1.30% | |
Change in statutory rates (as a percent) | (10.60%) | 0.00% | 0.00% | |
Other differences - net (as a percent) | 0.00% | (0.70%) | 0.30% | |
Effective income tax rate (as a percent) | 12.40% | 28.70% | 32.70% | |
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||
U.S. federal statutory income tax rate | $ 32.1 | $ 36.1 | $ 31.5 | |
U.S. state income taxes, net of federal income tax benefit | 1.7 | 2 | 1.9 | |
Effective income tax rate reconciliation, repatriation of foreign earnings, transition tax for accumulated foreign earnings, amount | (0.3) | |||
Tax on foreign dividends | 4.6 | 3.2 | ||
Foreign tax rate differences | (3.1) | (2.8) | (2) | |
Benefit of tax structure | (2) | (1.7) | (1.2) | |
Excess tax benefits from stock compensation | (4.5) | (3.1) | 0 | |
Research and development and other credits | (3) | (2.9) | (3.5) | |
Domestic production activities deduction | (0.5) | (1.5) | (2) | |
Uncertain tax positions | 0.7 | (0.4) | 1.2 | |
Change in statutory tax rate, amount | (9.7) | 0 | 0 | |
Other differences - net | 0 | (0.7) | 0.3 | |
Total provision for income taxes | 11.4 | 29.6 | 29.4 | |
Undistributed foreign earnings | 0 | $ (4.4) | ||
FiberMark | ||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||
Research and development and other credits | $ (1.4) | |||
Federal Ministry of Finance, Germany | ||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||
Change in statutory tax rate, amount | $ 0.6 | |||
Undistributed foreign earnings | $ 4.1 |
Income Taxes - U.S. and Foreign
Income Taxes - U.S. and Foreign Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income from continuing operations before income taxes: | |||
U.S. | $ 53.6 | $ 68.3 | $ 62.2 |
Foreign | 38.1 | 34.7 | 27.7 |
Income from continuing operations before income taxes | 91.7 | 103 | 89.9 |
Current: | |||
Federal | 4.7 | 7.1 | 12.7 |
State | 0.5 | (0.5) | 1.3 |
Foreign | 6.4 | 5.9 | 5.1 |
Total current tax provision | 11.6 | 12.5 | 19.1 |
Deferred: | |||
Federal | (1.8) | 14.8 | 7.7 |
State | (0.1) | 1.8 | 2.3 |
Foreign | 1.7 | 0.5 | 0.3 |
Total deferred tax provision | (0.2) | 17.1 | 10.3 |
Total provision for income taxes | $ 11.4 | $ 29.6 | $ 29.4 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset/Liability (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets (liabilities) | ||
Research and development tax credits | $ 6,600,000 | $ 15,000,000 |
Net operating losses and credits | 4,200,000 | 10,500,000 |
Employee benefits | 1,100,000 | 26,000,000 |
Inventories | 200,000 | (500,000) |
Accrued liabilities | 100,000 | 3,200,000 |
Deferred Tax Assets, Goodwill and Intangible Assets | (500,000) | (10,800,000) |
Accelerated depreciation | (1,600,000) | (34,000,000) |
Undistributed foreign earnings | 0 | (4,400,000) |
Other | 0 | 1,100,000 |
Net deferred income tax assets | 10,100,000 | 6,100,000 |
Deferred income tax assets (liabilities) | ||
Accelerated depreciation | (45,100,000) | (12,300,000) |
Intangibles | (11,400,000) | (2,800,000) |
Interest limitation | 0 | (300,000) |
Other | 1,300,000 | 0 |
Inventories | 1,800,000 | 300,000 |
Accrued liabilities | 1,900,000 | 0 |
Net operating losses | 5,000,000 | 0 |
Research and development tax credits | 8,600,000 | 0 |
Employee benefits | 22,900,000 | 5,000,000 |
Net deferred income tax liabilities | (15,000,000) | (10,100,000) |
Undistributed earnings of foreign subsidiaries | 37,300,000 | 12,500,000 |
NOLs | ||
Deferred tax asset related to net operating losses | 2,600,000 | |
Pre-acquisition built-in loss carryforward | 9,300,000 | |
Pre-acquisition built-in carryovers, deferred tax asset | 2,000,000 | |
Alternative minimum tax credit carryovers | 3,100,000 | |
R&D credit, valuation allowance | 3,100,000 | |
State and Local Jurisdiction | ||
NOLs | ||
Net operating losses | 44,000,000 | |
Operating loss carryfowards, valuation allowance | 400,000 | $ 400,000 |
Research Tax Credit Carryforward | Domestic Tax Authority | ||
NOLs | ||
R & D credits subject to expiration | 15,500,000 | |
Research Tax Credit Carryforward | State and Local Jurisdiction | ||
NOLs | ||
R & D credits subject to expiration | $ 6,900,000 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | $ 10.3 | $ 12.9 | $ 7 |
Increases in prior period tax positions | 0.4 | 0 | 0.5 |
Decreases in prior period tax positions | (1) | (2.6) | 0 |
Increases in current period tax positions | 0.7 | 0.6 | 5.5 |
Decreases due to lapse of statute of limitations | (1) | (0.3) | 0 |
Increases due to change in tax rates | 0.4 | 0 | 0 |
Increases from foreign exchange rate changes | 0.2 | ||
Decreases from foreign exchange rate changes | (0.3) | (0.1) | |
Balance at December 31, | 10 | 10.3 | $ 12.9 |
Benefit for uncertain tax positions, if recognized | 9.6 | ||
Accrued for interest and penalties related to uncertain income tax positions | 0.1 | 0.2 | |
Deferred Tax Asset | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | 7.6 | ||
Balance at December 31, | 2.3 | 7.6 | |
Deferred Tax Liability | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | 1.2 | ||
Balance at December 31, | 5.3 | 1.2 | |
Other Noncurrent Liabilities | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | 1.5 | ||
Balance at December 31, | $ 2.4 | $ 1.5 |
Debt - Summary of Long Term Deb
Debt - Summary of Long Term Debt (Details) € in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | May 31, 2013 | Jan. 31, 2013installment |
Debt Instrument [Line Items] | |||||
Total debt | $ 255.5 | $ 220.9 | |||
Deferred financing costs | (2.8) | (3.8) | |||
Less: Debt payable within one year | 1.4 | 1.2 | |||
Long-term debt | 254.1 | 219.7 | |||
Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 175 | 175 | |||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | 5.25% | ||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 76.9 | 42.9 | |||
Secured debt | Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 6.4 | € 5.3 | $ 6.8 | ||
Number of quarterly installments | installment | 32 | ||||
Fixed rate of interest (as a percent) | 2.45% | 2.45% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2013USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Jan. 31, 2013EUR (€) | |
Amended and Secured Revolving Credit Facility | ||||||
Total debt | $ 255,500,000 | $ 220,900,000 | ||||
U.S Revolving Credit Facility | Letter of Credit | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
German Revolving Credit Facility | Letter of Credit | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Maximum borrowing capacity | 2,000,000 | |||||
Global Revolving Credit Facilities (variable rates) due December 2019 | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Proceeds from borrowings | 293,000,000 | $ 113,600,000 | ||||
Global Revolving Credit Facilities (variable rates) due December 2019 | W.A. Sanders Coldenhove Holding B.V. | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Proceeds from borrowings | $ 31,000,000 | |||||
Global Revolving Credit Facilities (variable rates) due December 2019 | FiberMark | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Proceeds from borrowings | $ 38,000,000 | |||||
Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | ||||||
2021 Senior Notes | ||||||
Total term of notes | 8 years | |||||
Face amount | $ 175,000,000 | |||||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | 5.25% | |||
Amended and Secured Revolving Credit Facility | ||||||
Maximum cash dividends allowed to be paid | $ 25,000,000 | |||||
Net leverage ratio, threshold in which dividends can be issued and shares may be repurchased without limitation | 2.5 | |||||
Total debt | $ 175,000,000 | $ 175,000,000 | ||||
Senior notes | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | ||||||
2021 Senior Notes | ||||||
Total term of notes | 10 years | |||||
Fixed rate of interest (as a percent) | 7.375% | |||||
Amount of debt redeemed or repaid | $ 70,000,000 | |||||
Secured debt | Letter of Credit | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Total debt outstanding | 900,000 | |||||
Secured debt | Revolving bank credit facility (variable rates) due November 2017 | ||||||
2021 Senior Notes | ||||||
Amount of debt redeemed or repaid | $ 56,000,000 | |||||
Secured debt | U.S Revolving Credit Facility | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Maximum borrowing capacity | 125,000,000 | |||||
Secured debt | German Revolving Credit Facility | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Maximum borrowing capacity | 75,000,000 | |||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Maximum borrowing capacity | 250,000,000 | |||||
Maximum borrowing capacity that may be increased | $ 50,000,000 | |||||
Facility fee on unused amount of Revolver commitment (as a percent) | 0.25% | |||||
Fixed charge coverage ratio required | 1.1 | |||||
Period to be maintained for stock repurchase or dividend payment | 60 days | |||||
Period to be maintained for available borrowing capacity | 60 days | |||||
Borrowing availability to determine stock repurchases and dividend payments | $ 25,000,000 | |||||
Percentage of aggregate commitments to determine the stock repurchases and dividend payments | 12.50% | |||||
Total debt outstanding | $ 76,900,000 | |||||
Available credit | $ 91,900,000 | |||||
Weighted-average interest rate (as a percent) | 2.70% | 2.70% | 2.80% | |||
Total debt | $ 76,900,000 | $ 42,900,000 | ||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | Minimum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument, reference rate | 0.00% | |||||
Borrowing availability for not achieving the fixed charge coverage ratio | $ 35,000,000 | |||||
Percentage of aggregate commitments for not maintaining fixed charge coverage ratio | 17.50% | |||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | Maximum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Borrowing availability for not achieving the fixed charge coverage ratio | $ 20,000,000 | |||||
Percentage of aggregate commitments for not maintaining fixed charge coverage ratio | 10.00% | |||||
Secured debt | Second German Loan Agreement (2.45% fixed rate) due in 32 equal quarterly installments ending September 2022 | ||||||
2021 Senior Notes | ||||||
Fixed rate of interest (as a percent) | 2.45% | 2.45% | ||||
Amended and Secured Revolving Credit Facility | ||||||
Maximum borrowing capacity | € | € 9,000,000 | |||||
Interest rate on amounts outstanding (as a percent) | 2.45% | 2.45% | ||||
Length of the year considered for interest calculation | 360 days | |||||
Total debt | $ 6,400,000 | € 5,300,000 | $ 6,800,000 | |||
LIBOR | U.S Revolving Credit Facility | Minimum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument basis spread on variable rate (as a percent) | 0.00% | |||||
LIBOR | U.S Revolving Credit Facility | Maximum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument basis spread on variable rate (as a percent) | 0.50% | |||||
LIBOR | German Revolving Credit Facility | Minimum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument basis spread on variable rate (as a percent) | 1.50% | |||||
LIBOR | German Revolving Credit Facility | Maximum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument basis spread on variable rate (as a percent) | 2.00% | |||||
LIBOR | Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | Minimum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument basis spread on variable rate (as a percent) | 1.50% | |||||
LIBOR | Secured debt | Global Revolving Credit Facilities (variable rates) due December 2019 | Maximum | ||||||
Amended and Secured Revolving Credit Facility | ||||||
Debt instrument basis spread on variable rate (as a percent) | 2.00% |
Debt - Summary of Variable Rate
Debt - Summary of Variable Rates (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Prime rate | U.S Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.00% |
Prime rate | U.S Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.50% |
Federal funds rate | U.S Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.00% |
Federal funds rate | U.S Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.50% |
LIBOR | U.S Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.00% |
LIBOR | U.S Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.50% |
LIBOR | German Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 1.50% |
LIBOR | German Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 2.00% |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Debt payments | |
2,018 | $ 1.4 |
2,019 | 78.2 |
2,020 | 1.3 |
2,021 | 176.4 |
2,022 | 1 |
Thereafter | 0 |
Total | $ 258.3 |
Pension and Other Postretirem66
Pension and Other Postretirement Benefits - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)person | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
SERP pension plan settlement charge | $ (400,000) | $ (200,000) | $ (600,000) | $ (800,000) | $ 0 |
Aggregate contributions to qualified and non-qualified pension trusts and payments of pension benefits for unfunded pension plans | 14,700,000 | 14,700,000 | |||
FiberMark | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plan expense | 100,000 | ||||
FiberMark | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plan expense | 100,000 | ||||
Matching contribution (as a percent) | 5.00% | ||||
Supplemental Employee Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Payment for pension and other postretirement benefits | 1,300,000 | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of eligible participants who accepted settlement | person | 265 | ||||
Cash paid for lump-sum payments | $ 8,100,000 | ||||
Defined benefit plan, benefit obligation, payment for settlement | (600,000) | $ (800,000) | $ 0 | ||
Assets for plan benefits, defined benefit plan | 1,700,000 | 1,700,000 | |||
Estimated net actuarial loss | 5,400,000 | 5,400,000 | |||
Estimated prior service cost (credit) | 200,000 | $ 200,000 | |||
Expected long-term return on plan assets (as a percent) | 6.31% | 6.20% | 6.50% | ||
Amount of plan assets invested in the entity's securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Pension Benefits | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 6.30% | ||||
Postretirement Benefits Other than Pensions | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, benefit obligation, payment for settlement | $ 0 | $ 0 | $ 0 | ||
Health care cost trend rate assumed for next fiscal year | 6.80% | 6.80% | 7.00% | ||
Ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% | ||
Estimated net actuarial loss | $ 600,000 | $ 600,000 | |||
Estimated prior service cost (credit) | (200,000) | $ (200,000) | |||
Expected long-term return on plan assets (as a percent) | 0.00% | 0.00% | 0.00% | ||
Defined contribution retirement plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost | $ 2,500,000 | $ 2,700,000 | $ 2,500,000 | ||
Supplemental retirement contribution plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost | 400,000 | 400,000 | 200,000 | ||
Unfunded obligation | $ 1,700,000 | 1,700,000 | 1,300,000 | ||
Voluntary contribution investment plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost | $ 3,700,000 | $ 3,100,000 | $ 2,700,000 | ||
Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 35.00% | 35.00% | |||
Equity securities | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 10.00% | ||||
Equity securities | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 8.00% | ||||
Equity securities | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 35.00% | 35.00% | |||
Equity securities | Pension Benefits | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 48.00% | 48.00% | |||
Equity securities | Pension Benefits | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 38.00% | 38.00% | |||
Hedge Funds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 8.00% | 8.00% | |||
Hedge Funds | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 8.00% | ||||
Hedge Funds | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 6.00% | ||||
Hedge Funds | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 8.00% | 8.00% | |||
Hedge Funds | Pension Benefits | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 12.00% | 12.00% | |||
Hedge Funds | Pension Benefits | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 3.00% | 3.00% | |||
U.S. and Non-U.S. Fixed Income Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 57.00% | 57.00% | |||
U.S. and Non-U.S. Fixed Income Securities | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 5.00% | ||||
U.S. and Non-U.S. Fixed Income Securities | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected long-term return on plan assets (as a percent) | 3.00% | ||||
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 57.00% | 57.00% | |||
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 62.00% | 62.00% | |||
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Asset allocation (as a percent) | 52.00% | 52.00% | |||
Prepaid Expenses and Other Current Assets | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets for plan benefits, defined benefit plan | $ 600,000 | $ 600,000 | |||
Other assets | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets for plan benefits, defined benefit plan | 1,100,000 | 1,100,000 | |||
Level 1 | Other assets | Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of marketable securities | $ 3,600,000 | $ 3,600,000 |
Pension and Other Postretirem67
Pension and Other Postretirement Benefits - Summary of Plan Expirations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
FiberMark | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contributions | $ 0.1 |
Pension and Other Postretirem68
Pension and Other Postretirement Benefits - Benefit Plan Obligations, Plan Assets, Funded Status, and Net Liability Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized in statement of financial position consist of: | |||||
Noncurrent liabilities | $ (100.3) | $ (86.7) | |||
Pension Benefits | |||||
Change in Benefit Obligation: | |||||
Benefit obligation at beginning of year | $ 370.9 | $ 360.1 | |||
Service cost | 5.5 | 4.9 | $ 5.5 | ||
Interest cost | 15 | 15.9 | 13.8 | ||
Currency | 6.8 | (3.1) | |||
Actuarial (gain) loss | 33.3 | 18.2 | |||
Benefit payments from plans | (18.1) | (17.1) | |||
Settlement payments | (1.5) | (8.1) | |||
Net transfer in | 51.7 | 0.1 | |||
Other | 0.3 | 0 | |||
Benefit obligation at end of year | 463.9 | 370.9 | 360.1 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 318.1 | 308.3 | |||
Actual gain (loss) on plan assets | 38.5 | 17.6 | |||
Employer contributions | 14.3 | 17.8 | |||
Currency | 2.2 | (1.7) | |||
Benefit payments | (18.1) | (15.8) | |||
Settlement payments | (1.5) | (8.1) | |||
Net transfers in | 46.8 | 0 | |||
Other | 0.1 | 0 | |||
Fair value of plan assets at end of year | 400.4 | 318.1 | 308.3 | ||
Reconciliation of Funded Status | |||||
Fair value of plan assets | 318.1 | 308.3 | 308.3 | 400.4 | 318.1 |
Projected benefit obligation | 370.9 | 360.1 | 360.1 | 463.9 | 370.9 |
Net liability recognized in statement of financial position | (63.5) | (52.8) | |||
Amounts recognized in statement of financial position consist of: | |||||
Current liabilities | (3.7) | (3.8) | |||
Noncurrent liabilities | (59.8) | (49) | |||
Net liability recognized in statement of financial position | (63.5) | (52.8) | |||
Postretirement Benefits Other than Pensions | |||||
Change in Benefit Obligation: | |||||
Benefit obligation at beginning of year | 40.7 | 40.5 | |||
Service cost | 1.2 | 1.3 | 1.7 | ||
Interest cost | 1.4 | 1.6 | 1.6 | ||
Currency | 0.6 | 0.1 | |||
Actuarial (gain) loss | 3.9 | (1.2) | |||
Benefit payments from plans | (3.8) | (3.8) | |||
Settlement payments | 0 | 0 | |||
Net transfer in | 0 | 0 | |||
Other | 0 | 2.2 | |||
Benefit obligation at end of year | 44 | 40.7 | 40.5 | ||
Change in Plan Assets: | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Actual gain (loss) on plan assets | 0 | 0 | |||
Employer contributions | 0 | 0 | |||
Currency | 0 | 0 | |||
Benefit payments | 0 | 0 | |||
Settlement payments | 0 | 0 | |||
Net transfers in | 0 | 0 | |||
Other | 0 | 0 | |||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
Reconciliation of Funded Status | |||||
Fair value of plan assets | 0 | 0 | 0 | 0 | 0 |
Projected benefit obligation | 40.7 | $ 40.5 | $ 40.5 | 44 | 40.7 |
Net liability recognized in statement of financial position | (44) | (40.7) | |||
Amounts recognized in statement of financial position consist of: | |||||
Current liabilities | (5.3) | (4.3) | |||
Noncurrent liabilities | (38.7) | (36.4) | |||
Net liability recognized in statement of financial position | (44) | $ (40.7) | |||
W.A. Sanders Coldenhove Holding B.V. | Pension Benefits | |||||
Change in Plan Assets: | |||||
Fair value of plan assets at end of year | 46.8 | ||||
Reconciliation of Funded Status | |||||
Fair value of plan assets | $ 46.8 | 46.8 | |||
Amounts recognized in statement of financial position consist of: | |||||
Net liability recognized in statement of financial position | $ (51.7) |
Pension and Other Postretirem69
Pension and Other Postretirement Benefits - Amounts Recognized in AOCI and Disaggregated Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in accumulated other comprehensive income | $ 86.3 | $ 64.5 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated actuarial loss | (105.9) | (95.8) | |
Prior service cost | 0.8 | 0.9 | |
Total recognized in accumulated other comprehensive income | 106.7 | 96.7 | |
Assets Exceed ABO | |||
Projected benefit obligation | 0 | 291.3 | |
Accumulated benefit obligation | 0 | 281.5 | |
Fair value of plan assets | 0 | 284.2 | |
ABO Exceed Assets | |||
Projected benefit obligation | 463.9 | 79.6 | |
Accumulated benefit obligation | 451.4 | 79.4 | |
Fair value of plan assets | 400.4 | 33.9 | |
Total | |||
Projected benefit obligation | 463.9 | 370.9 | $ 360.1 |
Accumulated benefit obligation | 451.4 | 360.9 | |
Fair value of plan assets | 400.4 | 318.1 | 308.3 |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated actuarial loss | (8.6) | (4.9) | |
Prior service cost | (0.2) | (0.4) | |
Total recognized in accumulated other comprehensive income | 8.4 | 4.5 | |
Total | |||
Projected benefit obligation | 44 | 40.7 | 40.5 |
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Pension and Other Postretirem70
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5.5 | $ 4.9 | $ 5.5 |
Interest cost | 15 | 15.9 | 13.8 |
Expected return on plan assets | (19.9) | (18.9) | (19.3) |
Recognized net actuarial loss | (5.6) | (6.6) | (6.3) |
Amortization of prior service cost (credit) | 0.2 | 0.2 | 0.2 |
Amount of settlement loss recognized | 0.6 | 0.8 | 0 |
Net periodic benefit cost (credit) | 7 | 9.5 | 6.5 |
Amounts related to discontinued operations | 0 | 0 | (14.9) |
Net periodic benefit cost | 7 | 9.5 | (8.4) |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1.2 | 1.3 | 1.7 |
Interest cost | 1.4 | 1.6 | 1.6 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized net actuarial loss | (0.3) | (0.6) | (0.3) |
Amortization of prior service cost (credit) | (0.2) | (0.2) | (0.2) |
Amount of settlement loss recognized | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 2.7 | 3.3 | 3.4 |
Amounts related to discontinued operations | 0 | 0 | 0 |
Net periodic benefit cost | $ 2.7 | $ 3.3 | $ 3.4 |
Pension and Other Postretirem71
Pension and Other Postretirement Benefits - Other Changes in Plan Assets and Benefit Obligations Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit expense | $ 7 | $ 9.5 | $ (8.4) |
Accumulated actuarial gain (loss) | 10.1 | 11.7 | (7.1) |
Prior service cost (credit) | (0.1) | (0.3) | (0.3) |
Total recognized in other comprehensive income | 10 | 11.4 | (7.4) |
Total recognized in net periodic benefit cost and other comprehensive income | 17 | 20.9 | (15.8) |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit expense | 2.7 | 3.3 | 3.4 |
Accumulated actuarial gain (loss) | 3.7 | (0.9) | 1.1 |
Prior service cost (credit) | 0.2 | 0.1 | 0.2 |
Total recognized in other comprehensive income | 3.9 | (0.8) | 1.3 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 6.6 | $ 2.5 | $ 4.7 |
Pension and Other Postretirem72
Pension and Other Postretirement Benefits - Weighted-Average Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.49% | 4.16% | |
Rate of compensation increase | 2.40% | 2.22% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.18% | 4.54% | 3.91% |
Expected long-term return on plan assets | 6.31% | 6.20% | 6.50% |
Rate of compensation increase | 2.49% | 2.18% | 2.92% |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.27% | 3.69% | |
Rate of compensation increase | 0.00% | 0.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.89% | 4.07% | 4.05% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pension and Other Postretirem73
Pension and Other Postretirement Benefits - Pension Plan Assets Allocation (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Equity securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 35.00% | |
Hedge Funds | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 8.00% | |
Debt securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 57.00% | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Pension Benefits | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 35.00% | 36.00% |
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 35.00% | |
Pension Benefits | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 8.00% | 7.00% |
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 8.00% | |
Pension Benefits | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 57.00% | 57.00% |
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 57.00% | |
Minimum | Pension Benefits | Equity securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 38.00% | |
Minimum | Pension Benefits | Hedge Funds | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 3.00% | |
Minimum | Pension Benefits | Debt securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 52.00% | |
Maximum | Pension Benefits | Equity securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 48.00% | |
Maximum | Pension Benefits | Hedge Funds | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 12.00% | |
Maximum | Pension Benefits | Debt securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 62.00% |
Pension and Other Postretirem74
Pension and Other Postretirement Benefits - Future Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Future service benefit payments | |
2,018 | $ 22.7 |
2,019 | 24.4 |
2,020 | 21.7 |
2,021 | 23.4 |
2,022 | 23.3 |
Years 2023-2027 | 128.1 |
Postretirement Benefits Other than Pensions | |
Future service benefit payments | |
2,018 | 5.3 |
2,019 | 4.3 |
2,020 | 4.6 |
2,021 | 4.9 |
2,022 | 4.8 |
Years 2023-2027 | $ 18.1 |
Pension and Other Postretirem75
Pension and Other Postretirement Benefits- Health Care Cost Trends (Details) - Postretirement Benefits Other than Pensions $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on total of service and interest cost components, increase | $ 0 |
Effect on total of service and interest cost components, decrease | 0 |
Effect on post-retirement benefit other than pension obligation, increase | 0.2 |
Effect on post-retirement benefit other than pension obligation, decrease | $ (0.3) |
Stock Compensation Plans - Omni
Stock Compensation Plans - Omnibus Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2004 | Aug. 31, 2014 | |
Stock Compensation Plans | ||||||
Par value of shares of common stock (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Stock-based compensation expense and related income tax benefits | ||||||
Stock-based compensation expense | $ 6.4 | $ 5.8 | $ 6.5 | |||
Income tax benefit | (2.5) | (2.2) | (2.5) | |||
Stock-based compensation, net of income tax benefit | 3.9 | 3.6 | 4 | |||
Compensation costs related to equity awards and amounts recognized | ||||||
Compensation expense recognized | $ (6.4) | $ (5.8) | $ (6.5) | |||
Stock options awarded | ||||||
Nonqualified stock options granted (in shares) | 144,089 | |||||
Per share weighted-average exercise price (in dollars per share) | $ 82.11 | |||||
Per share weighted-average grant date fair value (in dollars per share) | $ 13.54 | |||||
Number of Stock Options | ||||||
Options outstanding at the beginning of the period (in shares) | 530,462 | |||||
Add: Options granted (in shares) | 144,089 | |||||
Less: Options exercised (in shares) | 207,973 | |||||
Less: Options forfeited/cancelled (in shares) | 1,620 | |||||
Options outstanding at the end of the period (in shares) | 464,958 | 530,462 | ||||
Weighted-Average Exercise Price | ||||||
Options outstanding at the beginning of the period (in dollars per share) | $ 38.35 | |||||
Add: Options granted (in dollars per share) | 82.11 | |||||
Less: Options exercised (in dollars per share) | 29.88 | |||||
Less: Options forfeited/cancelled (in dollars per share) | 65.60 | |||||
Options outstanding at the end of the period (in dollars per share) | $ 55.60 | $ 38.35 | ||||
Stock Options | ||||||
Stock Compensation Plans | ||||||
Expiration period | 10 years | |||||
Vesting period | 3 years | |||||
Stock-based compensation expense and related income tax benefits | ||||||
Stock-based compensation expense | $ 1.9 | |||||
Compensation costs related to equity awards and amounts recognized | ||||||
Unrecognized compensation cost at the beginning of the period | 0.6 | |||||
Grant date fair value current year grants | 1.9 | |||||
Compensation expense recognized | (1.9) | |||||
Unrecognized compensation cost at the end of the period | $ 0.6 | $ 0.6 | ||||
Expected amortization period | 1 year 9 months | |||||
Stock options awarded | ||||||
Number of stock options to be converted (in shares) | 545,000 | |||||
Performance Shares and RSUs | ||||||
Stock-based compensation expense and related income tax benefits | ||||||
Stock-based compensation expense | $ 4.5 | |||||
Compensation costs related to equity awards and amounts recognized | ||||||
Unrecognized compensation cost at the beginning of the period | 1.7 | |||||
Grant date fair value of current year grants | 5.1 | |||||
Compensation expense recognized | (4.5) | |||||
Unrecognized compensation cost at the end of the period | $ 2.3 | $ 1.7 | ||||
Expected amortization period | 1 year 8 months | |||||
Options | ||||||
Fair value assumptions | ||||||
Expected term in years | 5 years 9 months 6 days | 5 years 9 months 6 days | 5 years 9 months 18 days | |||
Risk free interest rate (as a percent) | 2.10% | 1.80% | 1.40% | |||
Volatility (as a percent) | 22.90% | 32.10% | 34.40% | |||
Dividend yield (as a percent) | 3.00% | 3.00% | 2.00% | |||
Nonqualified stock options | ||||||
Stock options awarded | ||||||
Nonqualified stock options granted (in shares) | 144,089 | 113,935 | 87,930 | |||
Per share weighted-average exercise price (in dollars per share) | $ 82.11 | $ 58.03 | $ 59.72 | |||
Per share weighted-average grant date fair value (in dollars per share) | $ 13.54 | $ 13.51 | $ 16.47 | |||
Number of Stock Options | ||||||
Add: Options granted (in shares) | 144,089 | 113,935 | 87,930 | |||
Weighted-Average Exercise Price | ||||||
Add: Options granted (in dollars per share) | $ 82.11 | $ 58.03 | $ 59.72 | |||
RSUs | Non-employee members of the board of directors | ||||||
Stock Compensation Plans | ||||||
Vesting period | 1 year | |||||
Omnibus Plan | ||||||
Stock Compensation Plans | ||||||
Shares of common stock reserved for future issuance | 3,500,000 | |||||
Par value of shares of common stock (in dollars per share) | $ 0.01 | |||||
2013 Omnibus Plan | ||||||
Stock Compensation Plans | ||||||
Shares of common stock reserved for future issuance | 680,000 | |||||
Additional common stock reserved for issuance subject to shareholders approval (in shares) | 1,577,000 | |||||
Reduction in number of shares available for future issuance (in shares) | 134,000 |
Stock Compensation Plans - Outs
Stock Compensation Plans - Outstanding and Exercisable Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 464,958 | ||
Weighted-Average Remaining Contractual Life | 6 years 6 months 19 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 55.60 | ||
Aggregate Intrinsic Value | $ 16.3 | ||
Options Exercisable | |||
Number of Options (in shares) | 241,944 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 40.59 | ||
Aggregate Intrinsic Value | $ 12.1 | ||
Closing market price for common stock (in dollars per share) | $ 90.65 | ||
Intrinsic value, exercises in the period | $ 11.5 | $ 4.7 | $ 5.5 |
$7.41 — $19.25 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 7.41 | ||
Exercise price, high end of range (in dollars per share) | $ 19.25 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 52,727 | ||
Weighted-Average Remaining Contractual Life | 1 year 11 months 6 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 13.06 | ||
Aggregate Intrinsic Value | $ 4.1 | ||
Options Exercisable | |||
Number of Options (in shares) | 52,727 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 13.06 | ||
Aggregate Intrinsic Value | $ 4.1 | ||
$21.13 — $31.23 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 21.13 | ||
Exercise price, high end of range (in dollars per share) | $ 32.84 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 58,490 | ||
Weighted-Average Remaining Contractual Life | 3 years 10 months 16 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 27.56 | ||
Aggregate Intrinsic Value | $ 3.7 | ||
Options Exercisable | |||
Number of Options (in shares) | 58,490 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 27.56 | ||
Aggregate Intrinsic Value | $ 3.7 | ||
$42.82 — $51.99 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 35.92 | ||
Exercise price, high end of range (in dollars per share) | $ 42.82 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 37,526 | ||
Weighted-Average Remaining Contractual Life | 6 years | ||
Weighted-Average Exercise Price (in dollars per share) | $ 43.49 | ||
Aggregate Intrinsic Value | $ 1.8 | ||
Options Exercisable | |||
Number of Options (in shares) | 37,526 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 43.49 | ||
Aggregate Intrinsic Value | $ 1.8 | ||
$55.49 — $60.56 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 50.60 | ||
Exercise price, high end of range (in dollars per share) | $ 59.72 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 172,626 | ||
Weighted-Average Remaining Contractual Life | 7 years 6 months | ||
Weighted-Average Exercise Price (in dollars per share) | $ 58.68 | ||
Aggregate Intrinsic Value | $ 5.5 | ||
Options Exercisable | |||
Number of Options (in shares) | 76,141 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 58.93 | ||
Aggregate Intrinsic Value | $ 2.4 | ||
$60.56 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 60.55 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 143,589 | ||
Weighted-Average Remaining Contractual Life | 8 years 6 months 6 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 82.11 | ||
Aggregate Intrinsic Value | $ 1.2 | ||
Options Exercisable | |||
Number of Options (in shares) | 17,060 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 82.15 | ||
Aggregate Intrinsic Value | $ 0.1 |
Stock Compensation Plans - Unve
Stock Compensation Plans - Unvested Stock Options and Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Stock Options | |
Outstanding at the beginning of the period (in shares) | 194,126 |
Add: Options granted (in shares) | 144,089 |
Less: Options vested (in shares) | 115,201 |
Outstanding at the end of the period (in shares) | 223,014 |
Weighted-Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 15.15 |
Add: Options granted (in dollars per share) | $ / shares | 13.54 |
Less: Options vested (in dollars per share) | $ / shares | 14.06 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 13.87 |
Stock options. | |
Additional disclosures | |
Shares outstanding that vested and would have been exercisable had the participants reached retirement age | 155,000 |
Aggregate grant date fair value of options subject to accelerated vesting | $ | $ 2.1 |
Accelerated compensation expense (in dollars) | $ | 1.2 |
Aggregate grant date fair value of options vested, including options subject to accelerated vesting | $ | $ 1.9 |
Stock Compensation Plans - Perf
Stock Compensation Plans - Performance Units/RSU (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted-Average Grant Date Fair Value | |||
Excess tax benefits from stock-based compensation recorded to APIC | $ 4.5 | $ 3.1 | $ 2.6 |
Performance units | |||
Stock Compensation Plans | |||
Granted (in shares) | 41,883 | 54,364 | 45,060 |
Percentage of target to be awarded, low end of range | 40.00% | ||
Percentage of target to be awarded, high end of range | 200.00% | ||
Common stock earned as a percentage of the performance unit target | 101.00% | ||
Market price at grant date of performance units(in USD per share) | $ 82.12 | ||
Unvested stock-based awards (other than stock options) | |||
Outstanding at the beginning of the period (in shares) | 53,506 | 43,050 | 58,270 |
Shares granted | 41,883 | 54,364 | 45,060 |
Shares vested | 0 | 0 | (810) |
Performance Shares vested | 53,506 | 43,050 | 58,270 |
Shares expired or cancelled | (506) | (858) | (1,200) |
Outstanding at the end of the period (in shares) | 41,377 | 53,506 | 43,050 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 73.79 | $ 78.32 | $ 74.79 |
Shares granted (in dollars per share) | 81.85 | 73.82 | 78.32 |
Shares vested (in dollars per share) | 0 | 0 | 78.32 |
Performance shares vested (in dollars per share) | 73.79 | 78.32 | 74.79 |
Shares expired or cancelled (in dollars per share) | 81.85 | 75.98 | 78.32 |
Outstanding at the end of the period (in dollars per share) | $ 81.85 | $ 73.79 | $ 78.32 |
RSUs | |||
Stock Compensation Plans | |||
Granted (in shares) | 10,318 | 10,047 | 13,415 |
Unvested stock-based awards (other than stock options) | |||
Outstanding at the beginning of the period (in shares) | 80,719 | 118,838 | 105,294 |
Shares granted | 10,318 | 10,047 | 13,415 |
Shares vested | (72,451) | (110,749) | (105,564) |
Performance Shares vested | 73,838.28 | (62,874) | 107,219 |
Shares expired or cancelled | (3,625) | (291) | (1,526) |
Outstanding at the end of the period (in shares) | 88,799 | 80,719 | 118,838 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 54.91 | $ 43.29 | $ 31.15 |
Shares granted (in dollars per share) | 76.84 | 68.25 | 61.41 |
Shares vested (in dollars per share) | 55.26 | 42.96 | 32.12 |
Performance shares vested (in dollars per share) | 52.11 | 53.63 | 40.65 |
Shares expired or cancelled (in dollars per share) | 50.48 | 40.65 | 51.14 |
Outstanding at the end of the period (in dollars per share) | $ 53.33 | $ 54.91 | $ 43.29 |
Units issued in lieu of dividends (in shares) | 226 | 312 | 495 |
Aggregate pre-tax intrinsic value of outstanding RSUs | $ 8 | ||
Aggregate pre-tax intrinsic value of restricted stock and RSUs that vested during the period | $ 6.3 | $ 9.3 | $ 6.6 |
RSUs | Non-employee members of the board of directors | |||
Stock Compensation Plans | |||
Granted (in shares) | 9,226 | ||
Market price at grant date of performance units(in USD per share) | $ 76.78 | ||
Vesting period | 1 year | ||
Unvested stock-based awards (other than stock options) | |||
Shares granted | 9,226 | ||
RSUs | Employees | |||
Stock Compensation Plans | |||
Granted (in shares) | 866 | ||
Unvested stock-based awards (other than stock options) | |||
Shares granted | 866 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
May 31, 2017USD ($) | Dec. 31, 2017USD ($)seriesvote$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized shares of common stock | shares | 100,000,000 | 100,000,000 | ||
Voting rights per common share | vote | 1 | |||
Shares acquired by the entity | shares | 28,000 | 46,000 | 40,000 | |
Cost of shares acquired by the entity | $ | $ 2,500,000 | $ 3,800,000 | $ 2,500,000 | |
Number of business days after which rights distribution date occurs | 10 days | |||
Minimum percentage of beneficial ownership interest in the entity's common stock to be achieved by a person or group for the rights to be exercisable | 15.00% | |||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized shares of preferred stock | shares | 20,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Minimum number of series of preferred stock to be issued | series | 1 | |||
Number of preferred shares issued | shares | 0 | |||
2017 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Stock repurchase program, period in force | 12 months | |||
Common stock purchased under the stock purchase plan (in shares) | shares | 0 | |||
Cost of shares of common stock acquired | $ | $ 0 | |||
2016 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25,000,000 | |||
Common stock purchased under the stock purchase plan (in shares) | shares | 85,354 | 91,542 | ||
Cost of shares of common stock acquired | $ | $ 6,800,000 | $ 7,400,000 | ||
2015 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25,000,000 | |||
Common stock purchased under the stock purchase plan (in shares) | shares | 93,600 | 42,100 | ||
Cost of shares of common stock acquired | $ | $ 5,200,000 | $ 2,400,000 | ||
2014 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Common stock purchased under the stock purchase plan (in shares) | shares | 60,900 | |||
Cost of shares of common stock acquired | $ | $ 3,500,000 | |||
Maximum | 2017 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25,000,000 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized foreign currency translation losses, net of income tax benefit of $0.4 and $0.4, respectively | $ (7.5) | $ (27.5) |
Unrealized loss on available-for-sale securities, net of income tax benefit of $0.1 million | (0.3) | 0 |
Net loss from pension and other postretirement benefit liabilities, net of income tax benefits of $28.8 million and $36.8 million, respectively (a) | (86.3) | (64.5) |
Accumulated other comprehensive loss | (94.1) | (92) |
Accumulated other comprehensive income (loss), available-for-sale securities adjustment, tax effect | 0.1 | 0 |
Foreign currency translation losses, tax benefit | 0.4 | 0 |
Net loss from pension and other postretirement benefit liabilities, tax benefit | 28.9 | $ 36.8 |
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | (10.9) | |
Retained Earnings | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | $ 10.9 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | $ 5.8 | $ (17.1) | $ (8.7) | ||
Other comprehensive income (loss), tax effect | 3 | 3.4 | (1.2) | ||
Other comprehensive income (loss) | 8.8 | (13.7) | (9.9) | ||
Provision for income taxes | (11.4) | (29.6) | (29.4) | ||
Pension plan settlement charge | $ 0.4 | $ 0.2 | 0.6 | 0.8 | 0 |
SERP pension plan settlement charge | 0.6 | 0.8 | 5.5 | ||
Cost Of Sales And Selling General And Administrative Expenses | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of products sold and selling, general, and admin expense | 5.9 | 7.2 | 7.1 | ||
Provision for income taxes | 2.3 | 2.8 | 2.7 | ||
Unrealized foreign currency translation gains (losses) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 20 | (7.1) | (15) | ||
Other comprehensive income (loss), tax effect | 0 | 0.4 | 0 | ||
Other comprehensive income (loss) | 20 | (6.7) | (15) | ||
Unrealized loss on available-for-sale securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (0.4) | 0 | 0 | ||
Other comprehensive income (loss), tax effect | 0.1 | 0 | 0 | ||
Other comprehensive income (loss) | (0.3) | 0 | 0 | ||
Adjustment to pension and other benefit liabilities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (13.8) | (10) | 6.3 | ||
Other comprehensive income (loss), tax effect | 2.9 | 3 | (1.2) | ||
Other comprehensive income (loss) | (10.9) | (7) | 5.1 | ||
Adjustment to pension and other benefit liabilities | Pension Plan Settlement Charge | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before tax | 0.8 | 5.5 | |||
Reclassification from AOCI, tax | $ 0.2 | $ 0.2 | $ 2.1 |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments | |||
Minimum term of operating leases | 1 year | ||
Future minimum lease obligations | |||
2,018 | $ 4 | ||
2,019 | 2.6 | ||
2,020 | 2.1 | ||
2,021 | 1.8 | ||
2,022 | 1.6 | ||
Thereafter | 3.7 | ||
Future minimum lease obligations | 15.8 | ||
Rent expense under operating leases | 6.8 | $ 6.4 | $ 5.4 |
Purchase Commitments | |||
2,018 | 12.3 | ||
2,019 | $ 6.1 |
Contingencies and Legal Matte84
Contingencies and Legal Matters (Details) | 12 Months Ended |
Dec. 31, 2017person | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 2,612 |
Contract Expiration Period Twelve Months | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 668 |
United States | |
Loss Contingencies [Line Items] | |
Number of hourly employees | 1,174 |
Number of salaried employees | 578 |
Europe | |
Loss Contingencies [Line Items] | |
Number of hourly employees | 431 |
Number of salaried employees | 429 |
Whiting, WI | June 2018 | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 201 |
Neenah, WI | June 2018 | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 264 |
Munising, MI | July 2018 | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 203 |
GERMANY | |
Loss Contingencies [Line Items] | |
Percentage of salaried employees eligible to be represented by Mining, Chemicals and Energy Trade Union (IG BCE) | 50.00% |
Percentage of hourly employees eligible to be represented by Mining, Chemicals and Energy Trade Union (IG BCE) | 80.00% |
Appleton, WI | May 2019 | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 103 |
Brattleboro, VT | August 2021 | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 94 |
Lowville, NY | November 2021 | |
Loss Contingencies [Line Items] | |
Number of regular full-time employees | 108 |
Discontinued Operations (Detail
Discontinued Operations (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Oct. 31, 2015USD ($) | |
Selected financial information for discontinued operations | |||||
Net curtailment gain related to divesture of pension plan | $ 15.8 | ||||
Write-off of deferred actuarial loss | 5.5 | ||||
Selected cash flow information of discontinued operations | |||||
Depreciation and amortization | $ 0 | $ 0 | 2.7 | ||
Lahnstein Mill | |||||
Discontinued Operations | |||||
Cash proceeds from sale of mill | € 50 | $ 5.4 | |||
Pension and related liabilities of discontinued operations | 21 | ||||
Asset impairment | 12 | ||||
Transaction costs | 1.7 | ||||
Selected financial information for discontinued operations | |||||
Net sales | 0 | 0 | 43.2 | ||
Cost of products sold | 0 | 0 | 39.7 | ||
Gross Profit | 0 | 0 | 3.5 | ||
Selling, general and administrative expenses | 0 | 0 | 3.5 | ||
Restructuring costs | 0 | 0 | 0.1 | ||
Other income — net | 0 | 0 | (0.3) | ||
Income (Loss) From Discontinued Operations Before Income Taxes | 0 | 0 | 0.2 | ||
Loss on sale | 0 | (0.6) | (13.6) | ||
Income (loss) before income taxes | 0 | (0.6) | (13.4) | ||
Income tax provision (benefit) | 0 | (0.2) | (4) | ||
Income (loss) from discontinued operations | 0 | (0.4) | (9.4) | ||
Selected cash flow information of discontinued operations | |||||
Depreciation and amortization | 0 | 0 | 2.7 | ||
Capital expenditures | $ 0 | $ 0 | $ 0.6 |
Business Segment and Geograph86
Business Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business segment | |||||||||||
Net sales | $ 244 | $ 245.1 | $ 248.7 | $ 242.1 | $ 220.5 | $ 232.9 | $ 246 | $ 242.1 | $ 979.9 | $ 941.5 | $ 887.7 |
Operating income (loss) | 19.1 | 29 | $ 29.2 | $ 27 | 21.9 | $ 26.9 | $ 33.9 | $ 31.4 | 104.3 | 114.1 | 101.4 |
Acquisition/integration/restructuring costs | 1.3 | 7 | 6.5 | ||||||||
Insurance recoveries | 3.2 | 3.2 | 0 | 0 | |||||||
Pension plan settlement charge | 0.4 | $ 0.2 | 0.6 | 0.8 | 0 | ||||||
Depreciation and amortization | 33.3 | 32 | 31.5 | ||||||||
Total Continuing Operations | 33.3 | 32 | 28.8 | ||||||||
Discontinued operations | 0 | 0 | 2.7 | ||||||||
Capital expenditures | 42.7 | 68.5 | 48.1 | ||||||||
Total Continuing Operations | 42.7 | 68.5 | 47.5 | ||||||||
Discontinued operations | 0 | 0 | 0.6 | ||||||||
Total Assets | 904.4 | 765.6 | 904.4 | 765.6 | |||||||
Long-Lived Assets | 619.2 | 529.3 | 619.2 | 529.3 | |||||||
United States | |||||||||||
Business segment | |||||||||||
Net sales | 748.9 | 727.6 | 687.3 | ||||||||
Long-Lived Assets | 393.1 | 377.4 | 393.1 | 377.4 | |||||||
Europe | |||||||||||
Business segment | |||||||||||
Net sales | 231 | 213.9 | 200.4 | ||||||||
Long-Lived Assets | 226.1 | 151.9 | 226.1 | 151.9 | |||||||
Unallocated corporate costs | |||||||||||
Business segment | |||||||||||
Operating income (loss) | (20.1) | (21.1) | (18) | ||||||||
Pre-operating costs related to conversion of fine paper machine to filtration | 2.7 | ||||||||||
Pension plan settlement charge | 0.8 | 0.8 | |||||||||
Depreciation and amortization | 1.7 | 1.5 | 1.9 | ||||||||
Capital expenditures | 0.5 | 2.7 | 0.8 | ||||||||
Total Assets | 29.8 | 29.1 | 29.8 | 29.1 | |||||||
Unallocated corporate costs | Supplemental Employee Retirement Plan | |||||||||||
Business segment | |||||||||||
Acquisition/integration/restructuring costs | 1.3 | ||||||||||
Technical Products | Operating Segments | |||||||||||
Business segment | |||||||||||
Net sales | 502.1 | 466.4 | 429.2 | ||||||||
Operating income (loss) | 55.3 | 65.6 | 54.1 | ||||||||
Acquisition/integration/restructuring costs | 1.4 | 1.7 | |||||||||
Depreciation and amortization | 19.4 | 18.1 | 16.5 | ||||||||
Capital expenditures | 28.6 | 57.9 | $ 36 | ||||||||
Total Assets | 613 | 487.6 | $ 613 | $ 487.6 | |||||||
Technical Products | Product Concentration Risk | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | ||||||||
Technical Products | Product Concentration Risk | Filtration | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 44.00% | 42.00% | 45.00% | ||||||||
Technical Products | Product Concentration Risk | Backings | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 32.00% | 31.00% | 30.00% | ||||||||
Technical Products | Product Concentration Risk | Specialty | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 24.00% | 27.00% | 25.00% | ||||||||
Fine Paper and Packaging | Operating Segments | |||||||||||
Business segment | |||||||||||
Net sales | $ 455.3 | $ 452.1 | $ 442.7 | ||||||||
Operating income (loss) | 69.5 | 70.7 | 67.3 | ||||||||
Acquisition/integration/restructuring costs | 1.8 | 1.5 | |||||||||
Insurance recoveries | 2.9 | ||||||||||
Depreciation and amortization | 11 | 11.1 | 9.8 | ||||||||
Capital expenditures | 12.5 | 7.6 | $ 10.3 | ||||||||
Total Assets | $ 261.6 | $ 248.9 | $ 261.6 | $ 248.9 | |||||||
Fine Paper and Packaging | Product Concentration Risk | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | ||||||||
Fine Paper and Packaging | Product Concentration Risk | Graphic Imaging | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 80.00% | 81.00% | 80.00% | ||||||||
Fine Paper and Packaging | Product Concentration Risk | Packaging | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 16.00% | 14.00% | 15.00% | ||||||||
Fine Paper and Packaging | Product Concentration Risk | Filing/Office | Sales Revenue | |||||||||||
Business segment | |||||||||||
Percentage of concentration risk | 4.00% | 5.00% | 5.00% | ||||||||
Other | Operating Segments | |||||||||||
Business segment | |||||||||||
Net sales | $ 22.5 | $ 23 | $ 15.8 | ||||||||
Operating income (loss) | (0.4) | (1.1) | (2) | ||||||||
Acquisition/integration/restructuring costs | 1.1 | 2.4 | |||||||||
Insurance recoveries | 0.3 | ||||||||||
Depreciation and amortization | 1.2 | 1.3 | 0.6 | ||||||||
Capital expenditures | $ 1.1 | $ 0.3 | $ 0.4 |
Business Segment and Geograph87
Business Segment and Geographic Information - Concentrations (Details) - Sales - Customer concentration risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Verativ And CNG | |||
Concentrations | |||
Percentage of concentration risk | 7.00% | ||
Verativ And CNG | Fine Paper and Packaging | |||
Concentrations | |||
Percentage of concentration risk | 15.00% | ||
VERATIV | |||
Concentrations | |||
Percentage of concentration risk | 8.00% | 10.00% | |
VERATIV | Fine Paper and Packaging | |||
Concentrations | |||
Percentage of concentration risk | 15.00% | 20.00% |
Supplemental Data - Advertising
Supplemental Data - Advertising and Research and Development, Accounts Receivable, Inventory, Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Advertising and Research Development Expenses | |||
Advertising expense | $ 6 | $ 6.2 | $ 6.8 |
Research and development expense | 8.9 | 9.4 | $ 6.8 |
Accounts Receivable - net | |||
From customers | 117 | 98 | |
Less allowance for doubtful accounts and sales discounts | (1.3) | (1.5) | |
Total | 115.7 | 96.5 | |
Inventories by Major Class: | |||
Raw materials | 36.2 | 31.6 | |
Work in progress | 35 | 26.8 | |
Finished goods | 79.2 | 63 | |
Supplies and other | 3.6 | 3.1 | |
Inventories, gross | 154 | 124.5 | |
Excess of FIFO over LIFO cost | (10.5) | (8.2) | |
Total | 143.5 | 116.3 | |
FIFO values of inventories valued on the LIFO method | 120.1 | 106.8 | |
Decrease in LIFO inventory | 0.5 | 0.1 | |
Prepaid and Other Current Assets | |||
Prepaid and other current assets | 11.3 | 10.5 | |
Spare parts | 6.9 | 5.8 | |
Receivable for income taxes | 3.3 | 4.1 | |
Total | $ 21.5 | $ 20.4 |
Supplemental Data - Property, P
Supplemental Data - Property, Plant, and Equipment, Accrued Expense, Noncurrent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | $ 850.5 | $ 755.6 | |
Less accumulated depreciation | 425.3 | 391 | |
Net Property, Plant and Equipment | 425.2 | 364.6 | |
Depreciation expense | 28.3 | 27.1 | $ 24.8 |
Interest expense capitalized | 0 | 0.8 | $ 0.2 |
Accrued Expenses | |||
Accrued salaries and employee benefits | 29.6 | 26.3 | |
Amounts due to customers | 7.2 | 7.3 | |
Accrued interest | 1.3 | 1.3 | |
Accrued income taxes | 4.2 | 2 | |
Other | 15.2 | 14.3 | |
Total | 57.5 | 51.2 | |
Noncurrent Employee Benefits | |||
Pension benefits | 59.8 | 49 | |
Post-employment benefits other than pensions | 40.5 | 37.7 | |
Total | 100.3 | 86.7 | |
Long-term disability benefits due to Terrace Bay retirees | 1.8 | 1.3 | |
Land and land improvements | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 20.2 | 18.3 | |
Buildings | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 157.7 | 126.1 | |
Machinery and equipment | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 650.8 | 597.5 | |
Construction in progress | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | $ 21.8 | $ 13.7 |
Supplemental Data - Supplementa
Supplemental Data - Supplemental Cash Flow Data (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for interest, net of interest expense capitalized | $ 11.3 | $ 10 | $ 10.6 |
Cash paid during the year for income taxes, net of refunds | 7.6 | 15 | 16.2 |
Non-cash investing activities: | |||
Liability for equipment acquired | 5.4 | 11.1 | 6.6 |
Net cash provided by (used in) changes in working capital | |||
Accounts receivable | (10.2) | 1.5 | (5.2) |
Inventories | (11.7) | 4.3 | 7.7 |
Income taxes receivable/payable | 4.5 | (1.5) | 1 |
Prepaid and other current assets | (0.4) | 0 | (4.8) |
Accounts payable | 10.6 | (2.7) | (0.5) |
Accrued expenses | (4.2) | (2.8) | 3.2 |
Other | (0.4) | 0 | 0.4 |
Total | $ (11.8) | $ (1.2) | $ 1.8 |
Unaudited Quarterly Data (Detai
Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net sales | $ 244 | $ 245.1 | $ 248.7 | $ 242.1 | $ 220.5 | $ 232.9 | $ 246 | $ 242.1 | $ 979.9 | $ 941.5 | $ 887.7 |
Gross Profit | 45.1 | 48 | 53.6 | 52 | 46.5 | 49.2 | 60 | 58.8 | 198.7 | 214.5 | 195.4 |
Operating Income | 19.1 | 29 | 29.2 | 27 | 21.9 | 26.9 | 33.9 | 31.4 | 104.3 | 114.1 | 101.4 |
Income from continuing operations | $ 18.9 | $ 18.8 | $ 25 | $ 17.6 | $ 16.4 | $ 16.4 | $ 21.4 | $ 19.2 | $ 80.3 | $ 73.4 | $ 60.5 |
Earnings (Loss) Per Common Share | |||||||||||
Basic (in dollar per share) | $ 1.11 | $ 1.11 | $ 1.47 | $ 1.04 | $ 0.97 | $ 0.97 | $ 1.26 | $ 1.13 | $ 4.74 | $ 4.33 | $ 3.58 |
Diluted (in dollars per share) | $ 1.10 | $ 1.10 | $ 1.46 | $ 1.03 | $ 0.95 | $ 0.95 | $ 1.24 | $ 1.11 | $ 4.68 | $ 4.26 | $ 3.53 |
Undistributed foreign earnings | $ 0 | $ (4.4) | $ 0 | $ (4.4) | |||||||
Insurance recoveries | $ (3.2) | (3.2) | 0 | $ 0 | |||||||
Business combination, acquisition related costs | 0.6 | 0.7 | |||||||||
Acquisition/integration/restructuring costs | 1.3 | 7 | 6.5 | ||||||||
Pension plan settlement charge | 0.4 | $ 0.2 | $ 0.6 | 0.8 | 0 | ||||||
Tax adjustments, settlements, and unusual provisions | $ 5.9 | ||||||||||
FiberMark | |||||||||||
Earnings (Loss) Per Common Share | |||||||||||
Acquisition/integration/restructuring costs | $ 4.3 | $ 5.3 | |||||||||
Federal Ministry of Finance, Germany | |||||||||||
Earnings (Loss) Per Common Share | |||||||||||
Undistributed foreign earnings | $ 4.1 |
SCHEDULE II SCHEDULE OF VALUA92
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in valuation and qualifying accounts | |||
Write-offs and Reclassifications | $ 0 | ||
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 1 | $ 1.1 | 0.9 |
Charged to Costs and Expenses | 0.2 | (0.1) | (0.4) |
Charged to Other Accounts | 0 | 0 | 1 |
Write-offs and Reclassifications | (0.4) | 0 | (0.4) |
Balance at End of Period | 0.8 | 1 | 1.1 |
Allowance for sales discounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | 0.5 | 0.6 | 0.6 |
Charged to Costs and Expenses | 0 | (0.1) | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Write-offs and Reclassifications | 0 | 0 | |
Balance at End of Period | 0.5 | 0.5 | 0.6 |
Valuation allowance — deferred income taxes | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | 3.5 | 3 | 0 |
Charged to Costs and Expenses | 0 | 0.1 | 3 |
Charged to Other Accounts | 0 | 0 | 0 |
Write-offs and Reclassifications | (3.1) | 0.4 | 0 |
Balance at End of Period | $ 0.4 | $ 3.5 | $ 3 |