Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 04, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | WABCO Holdings Inc. | ||
Entity Central Index Key | 1,390,844 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | WBC | ||
Entity Common Stock, Shares Outstanding | 56,805,303 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 2,627.5 | $ 2,851 | $ 2,720.5 |
Cost of sales | 1,842 | 1,979.3 | 1,911.4 |
Gross Profit | 785.5 | 871.7 | 809.1 |
Costs and expenses: | |||
Selling and administrative expenses | 368.4 | 386.8 | 352.8 |
Product engineering expenses | 139.5 | 145 | 119.4 |
Other operating expense, net | (6.7) | (8.9) | (5) |
Operating income / (loss) | 270.9 | 331 | 331.9 |
European Commission fine reimbursement | 0 | 0 | 279.5 |
Equity income of unconsolidated joint ventures, net | 32.1 | 23.8 | 17.7 |
Other non-operating income, net | 1.6 | 1.8 | 6.9 |
Interest (expense)/income, net | (7.1) | 0.2 | 4.9 |
Income before income taxes | 297.5 | 356.8 | 640.9 |
Income tax expense/(benefit) | 11.5 | 55.6 | (21) |
Net income including noncontrolling interests | 286 | 301.2 | 661.9 |
Less: net income attributable to noncontrolling interests | 10.8 | 9.7 | 8.7 |
Net income attributable to Company | $ 275.2 | $ 291.5 | $ 653.2 |
Net income attributable to Company per common share | |||
Basic (in dollars per share) | $ 4.76 | $ 4.87 | $ 10.46 |
Diluted (in dollars per share) | 4.72 | 4.81 | 10.31 |
Cash dividends per share of common stock (in dollars per share) | $ 0 | $ 0 | $ 0 |
Weighted average common shares outstanding | |||
Basic (in shares) | 57,768,018 | 59,907,763 | 62,474,493 |
Diluted (in shares) | 58,274,987 | 60,546,454 | 63,382,564 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income including noncontrolling interests | $ 286 | $ 301.2 | $ 661.9 |
Foreign currency translation effects | (130.6) | (144.9) | (4.1) |
Unrealized gains/(losses) on benefit plans, net of tax | 24.4 | (135.9) | (1.8) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (1.2) | 0 | 0 |
Unrealized gains on investment | 0 | 0.2 | 0 |
Comprehensive income | 178.6 | 20.6 | 656 |
Less: Comprehensive income attributable to noncontrolling interests | 8.6 | 8.4 | 3.6 |
Comprehensive income attributable to Company | $ 170 | $ 12.2 | $ 652.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 515.2 | $ 411.7 |
Short-term investments | 43.8 | 0 |
Accounts receivable, less allowance for doubtful accounts of $5.9 in 2015 and $5.5 in 2014 | 444 | 445.6 |
Inventories | 212.7 | 189.6 |
Taxes receivable on income | 13.2 | 4.1 |
Guaranteed notes receivable | 53.9 | 52.8 |
Other current assets | 103.6 | 57.9 |
Total current assets | 1,386.4 | 1,161.7 |
Property, plant and equipment, less accumulated depreciation | 398 | 424.9 |
Goodwill | 377.7 | 421 |
Long-term future income tax benefits | 280.8 | 289.5 |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 24.7 | 19.6 |
Intangible assets, net | 62.8 | 78.4 |
Other assets | 59.5 | 37.6 |
TOTAL ASSETS | 2,589.9 | 2,432.7 |
Current liabilities: | ||
Loans payable to banks | 5 | 8.1 |
Accounts payable | 159.7 | 121.2 |
Accrued payroll | 105.2 | 103.9 |
Current portion of warranties | 23.1 | 25.8 |
Accrued expenses | 61.9 | 58.5 |
Other accrued liabilities | 109.9 | 100.2 |
Total current liabilities | 464.8 | 417.7 |
Long-term debt | 498.7 | 307.1 |
Post-retirement benefits | 552.7 | 595 |
Deferred tax liabilities | 137.1 | 129.2 |
Long-term income tax liabilities | 16.3 | 48.5 |
Other liabilities | 84 | 46.2 |
Total liabilities | 1,753.6 | 1,543.7 |
Shareholders' equity: | ||
Preferred stock, 4,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 400,000,000 shares authorized; shares issued: 78,500,084 in 2015; 77,961,040 in 2014; and shares outstanding: 56,759,566 in 2015; 58,425,873 in 2014 | 0.8 | 0.8 |
Capital surplus | 852.6 | 828.3 |
Treasury stock, at cost: 21,740,518 shares in 2015; 19,535,167 shares in 2014 | (1,497.3) | (1,248.1) |
Retained earnings | 1,938.5 | 1,663.3 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (507.9) | (402.7) |
Total shareholders' equity | 786.7 | 841.6 |
Noncontrolling interests | 49.6 | 47.4 |
Total equity | 836.3 | 889 |
TOTAL LIABILITIES AND EQUITY | $ 2,589.9 | $ 2,432.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance for doubtful accounts | $ 5.9 | $ 5.5 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 78,500,084 | 77,961,040 |
Common stock, shares outstanding | 56,759,566 | 58,425,873 |
Treasury stock, shares | 21,740,518 | 19,535,167 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income including noncontrolling interests | $ 286 | $ 301.2 | $ 661.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 77.5 | 81.7 | 74.6 |
Amortization of intangibles | 19.2 | 19.9 | 10.6 |
Equity in earnings of unconsolidated joint ventures, net of dividends received | (4.7) | (0.2) | 0.6 |
Non-cash stock compensation | 12 | 15.5 | 13.6 |
Non-cash interest expense and debt issuance cost amortization | 7.8 | 0 | 0 |
Deferred income tax (benefit)/expense | (11.7) | 4.5 | (64.6) |
Post-retirement benefit expense | 43.1 | 32.6 | 31.9 |
Impairment of property, plant and equipment | 7.7 | 0.8 | 0 |
Loss/(gain) on sale or disposal of property, plant and equipment | 0.4 | 1.4 | (0.2) |
Changes in assets and liabilities: | |||
Accounts receivable, net | (41.8) | (123.9) | (44.3) |
Inventories | (42.7) | (2.5) | (16) |
Accounts payable | 52.1 | (18.3) | 33.1 |
Other accrued liabilities and taxes | 18.1 | 15.2 | 38.5 |
Other current and long-term assets | (18.4) | 27.5 | (28.8) |
Other long-term liabilities | 13.5 | (8) | (14.7) |
Post-retirement benefit payments | (22.8) | (33) | (30.4) |
Net cash provided by operating activities | 395.3 | 314.4 | 665.8 |
Investing activities: | |||
Purchases of property, plant and equipment | (89.7) | (123.8) | (108.1) |
Investments in capitalized software | (10.9) | (12.1) | (13.4) |
(Purchases)/sales of short-term investments | (81.6) | 50.7 | (55.2) |
Cost of preferred stock investment | (20) | 0 | 0 |
Acquisitions, net | 0 | (125.9) | 0 |
Net cash used in investing activities | (202.2) | (211.1) | (176.7) |
Financing activities: | |||
Net borrowings of short-term revolving credit facilities | 0 | 0 | 1.1 |
Borrowings of long-term debt and revolving credit facilities | 577 | 259 | 0 |
Repayments of long-term revolving credit facilities | (385) | 0 | 0 |
Net (repayments)/borrowings of short-term debt | (2.7) | (32.6) | 9.2 |
Purchases of treasury stock | (249.2) | (351.5) | (243.2) |
Purchase of subsidiary shares from noncontrolling interest | 0 | (5.7) | (4.6) |
Dividends to noncontrolling interest holders | (6.4) | (5.6) | (5.6) |
Proceeds from exercise of stock options | 17.3 | 15 | 49.7 |
Net cash used in financing activities | (49) | (121.4) | (193.4) |
Effect of exchange rate changes on cash and cash equivalents | (40.6) | (43) | 2.1 |
Net increase/(decrease) in cash and cash equivalents | 103.5 | (61.1) | 297.8 |
Cash and cash equivalents at beginning of period | 411.7 | 472.8 | 175 |
Cash and cash equivalents at end of period | 515.2 | 411.7 | 472.8 |
Cash paid during the period for: | |||
Interest | 10.1 | 2 | 0.3 |
Income taxes | 49.4 | 48.4 | 45.2 |
Non cash items for the period: | |||
Unrealized gains on investment | $ 0 | $ 0.2 | $ 0 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Capital Surplus | Treasury Stock | Retained Earnings | Foreign currency translation adjustments: | Non Controlling Interests |
Beginning Balance at Dec. 31, 2012 | $ 728.7 | $ 0.7 | $ 735.5 | $ (655.8) | $ 718.6 | $ (122.6) | $ 52.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 661.9 | 653.2 | 8.7 | ||||
Other comprehensive loss | (5.9) | (0.8) | (5.1) | ||||
Treasury stock purchased | (240.8) | (240.8) | |||||
Stock options exercised | 49.8 | 0.1 | 49.7 | ||||
Stock-based compensation | 13.9 | 13.9 | |||||
Change in noncontrolling interest | (4.6) | 1.1 | (5.7) | ||||
Dividends paid | (5.6) | (5.6) | |||||
Ending Balance at Dec. 31, 2013 | 1,197.4 | 0.8 | 800.2 | (896.6) | 1,371.8 | (123.4) | 44.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 301.2 | 291.5 | 9.7 | ||||
Other comprehensive loss | (280.6) | (279.3) | (1.3) | ||||
Treasury stock purchased | (351.5) | (351.5) | |||||
Stock options exercised | 14.9 | 14.9 | |||||
Stock-based compensation | 13.2 | 13.2 | |||||
Dividends paid | (5.6) | (5.6) | |||||
Ending Balance at Dec. 31, 2014 | 889 | 0.8 | 828.3 | (1,248.1) | 1,663.3 | (402.7) | 47.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 286 | 275.2 | 10.8 | ||||
Other comprehensive loss | (107.4) | (105.2) | (2.2) | ||||
Treasury stock purchased | (249.2) | (249.2) | |||||
Stock options exercised | 17.3 | 17.3 | |||||
Stock-based compensation | 7 | 7 | |||||
Dividends paid | (6.4) | (6.4) | |||||
Ending Balance at Dec. 31, 2015 | $ 836.3 | $ 0.8 | $ 852.6 | $ (1,497.3) | $ 1,938.5 | $ (507.9) | $ 49.6 |
Description of Company
Description of Company | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Company | Description of Company WABCO Holdings Inc. and its subsidiaries (collectively WABCO or the Company) engineers, develops, manufactures and sells integrated systems controlling advanced braking, stability, suspension and transmission automation as well as air compression and processing primarily for commercial vehicles. WABCO’s largest selling products are pneumatic ABS, EBS, ESC, automated manual transmission systems, air disc brakes and a large variety of conventional mechanical products such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. In addition, we supply commercial vehicle aftermarket distributors and service partners as well as fleet operators with replacement parts, fleet management solutions, diagnostic tools, training and other expert services. WABCO sells its products to four groups of customers around the world: truck and bus OEMs, trailer OEMs, commercial vehicle aftermarket distributors of replacement parts and services and commercial vehicle fleet operators for management solutions and services, and major automotive OEMs. We also provide remanufacturing services globally. WABCO was founded in the United States in 1869 as Westinghouse Air Brake Company. The Company was purchased by American Standard Companies Inc. (American Standard) in 1968 and operated as the Vehicle Control Systems business division within American Standard until the Company was spun off from American Standard on July 31, 2007. Subsequent to the spin-off, American Standard changed its name to Trane Inc., which is herein referred to as “Trane.” On June 5, 2008, Trane was acquired in a merger with Ingersoll-Rand Company Limited (Ingersoll Rand) and exists today as a wholly owned subsidiary of Ingersoll Rand. The spin-off by Trane of its Vehicle Control Systems business became effective on July 31, 2007, through a distribution of 100% of the common stock of WABCO to Trane's shareholders (the Distribution). The Distribution was effected through a separation and distribution agreement pursuant to which Trane distributed all of the shares of WABCO common stock as a dividend on Trane common stock, in the amount of one share of WABCO common stock for every three shares of outstanding Trane common stock to each shareholder on the record date. Trane received a private letter ruling from the Internal Revenue Service and an opinion from tax counsel indicating that the spin-off was tax free to the shareholders of Trane and WABCO. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company’s chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes the most complex and sensitive judgments, because of their significance to the condensed consolidated financial statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. Actual results could differ from those estimates. Some of the most significant estimates included in the preparation of the consolidated financial statements are related to allowance for doubtful accounts, inventory reserves, goodwill, warranties, post-retirement benefits, income taxes and stock-based compensation. Allocation methods are described in the notes to these consolidated financial statements where appropriate. Principles of Consolidation and Presentation - All majority owned or controlled subsidiaries of WABCO are included in the consolidated financial statements and intercompany transactions are eliminated upon consolidation. WABCO investments in unconsolidated joint ventures are included at cost plus its equity in undistributed earnings in accordance with the equity method of accounting and reflected as investments in unconsolidated joint ventures in the consolidated balance sheets. Certain amounts in the prior years' consolidated financial statements have been reclassified to conform to the current year presentation. Foreign Currency Translation - Adjustments resulting from translating foreign functional currency assets and liabilities into U.S. Dollars at exchange rates in effect as of the balance sheet date, and income and expense accounts at the average exchange rates in effect during the period, are recorded in a separate component of shareholders' equity as accumulated other comprehensive income. Gains or losses resulting from transactions in other than the functional currency are reflected in the consolidated statements of operations as part of other non-operating income or expense, except for intercompany transactions of a long-term investment nature where the foreign exchange gains or losses from the remeasurement of such intercompany transactions is recorded within accumulated other comprehensive income. Revenue Recognition - Sales of products are recorded when (i) title and risk of loss have transferred to the customer, (ii) persuasive evidence of an arrangement exists with the customer, (iii) the sales price is fixed and determinable, and (iv) the collectability of the sales price is reasonably assured. Amounts billed to customers for shipping and handling costs are included in sales. Certain of the Company's product offerings contain multiple deliverables including hardware with embedded firmware, back office hosting services, unspecified software upgrades and enhancements related to these products through service contracts, which are considered separate units of accounting. For products under these arrangements, the software and non-software components function together to deliver the tangible product’s essential functionality. The Company allocates revenue to each element in these multiple-element arrangements based upon the relative selling prices of each deliverable. In evaluating the revenue recognition for the Company's multiple-element arrangements, the Company determined that in certain cases, vendor specific objective evidence (VSOE) of selling price could not be established for some or all deliverables in the arrangement as the Company infrequently sold each element on a standalone basis, did not price products within a narrow range, or had a limited sales history. When VSOE cannot be established for an element, the Company attempts to establish the selling price of the element using third-party evidence (TPE) based on competitor prices for similar deliverables sold separately. However, the Company is typically not able to establish TPE as we are unable to reliably determine the standalone selling prices of similar competitor products. When neither VSOE nor TPE can be established for an element, the Company uses its best estimate of selling price (BESP) in the allocation of arrangement consideration. BESP represents the price at which the Company would transact a sale if the element were sold on a standalone basis. The Company determines BESP for an element by considering multiple factors including, but not limited to, the Company's go-to-market strategy, pricing practices, internal costs, gross margin, market conditions and geographies. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for that element. The Company typically records cooperative advertising allowances, rebates and other forms of sales incentives as a reduction of sales at the later of the date of the sale or the date the incentive is offered. For these costs, the Company recorded $ 43.2 million , $ 43.0 million and $ 42.4 million in 2015 , 2014 and 2013 , respectively, in the accompanying consolidated statements of operations. In most countries where WABCO operates, sales are subject to VAT taxes. Sales are presented net of VAT in the consolidated statements of operations. Shipping and Handling Costs - Shipping, handling, receiving, inspecting, warehousing, internal transfer, procurement and other costs of distribution are included in cost of sales in the consolidated statements of operations. Cash and Cash Equivalents - Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. The Company classifies cash and cash equivalents that are restricted from operating use for the next twelve months as restricted cash. Amounts restricted for longer than twelve months are classified as other assets. When restrictions are no longer in place, the amounts are reclassified to cash and cash equivalents. Available-for-Sale Investments - Investments may consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The investments are classified as available-for-sale and are recorded in the consolidated financial statements at market value with changes in market value included in other comprehensive income. The Company classifies its investments as either short-term or long-term based on the nature of the investments, its availability of use in current operations and the Company's holding intention. The fair value of the investments is determined based on readily available pricing sources for identical instruments in less active markets (Level 2). In the event the investments experience an other-than-temporary impairment in value, such impairment is recognized as a loss in the consolidated statements of operations. As of December 31, 2015 , the Company had $43.8 million of short-term investments as well as $2.7 million of long-term investments that have been included in "other assets" on the consolidated balance sheets. Allowance for Doubtful Accounts - The Company performs ongoing credit evaluations on its customers. In determining the allowance for doubtful accounts, on a monthly basis, WABCO analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness, availability of credit insurance and current economic trends. Transfers of Financial Instruments - The Company accounts for sales and transfers of financial instruments under ASC 860, Transfers and Servicing . ASC 860 states that a transfer of financial assets (either all or a portion of a financial asset) in which the transferor surrenders control over those financial assets shall be accounted for as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in exchange. The Company may sell receivables to the bank which qualify as financial assets since they are associated with the sale of products by the subsidiaries of the Company and accepted by the Company's customers in the ordinary course of business. Where such receivables sold to the bank, the risks of collection of such receivables reside with the bank. Therefore, upon sale of the receivables to the bank, the appropriate reversal of any applicable accounts receivable allowances is recorded by the Company. Inventory Reserves - Inventory costs are determined by the use of the last-in, first-out (LIFO) method, and are stated at the lower of such cost or market. The LIFO method is used as it provides a better matching of the costs to the sales. Inventories are categorized as finished products, products-in-process and raw materials. On a quarterly basis, the Company tests its inventory for slow moving and obsolete stock by considering both the historical and expected sales and the Company will record a provision, if needed. Property, Plant & Equipment - Property, plant and equipment balances, including tooling, are stated at cost less accumulated depreciation. WABCO capitalizes costs, including interest during construction of fixed asset additions, improvements, and betterments that add to productive capacity or extend the asset life. WABCO assesses facilities for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Maintenance and repair expenditures are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the estimated useful life of the asset or asset group, which are 40 years for buildings, 3 to 5 years for tooling and 5 to 15 years for machinery and equipment. Capitalized Software Costs - WABCO capitalizes the costs of obtaining or developing internal-use computer software, including directly related payroll costs. The Company amortizes those costs on a straight-line basis over periods of up to seven years, beginning when the software is ready for its intended use. The Company assesses capitalized software costs for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Equity and Cost Method Investments - We have investments that are accounted for using the equity method. Our proportionate share of income or losses from investments accounted for under the equity method is recorded in the consolidated statements of operations. We write down or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. This includes assessing the investees’ financial condition as well as the investees’ historical and projected results of operations and cash flows. If the actual outcomes for the investees are significantly different from projections, we may incur future charges for the impairment of these investments. Our investment in equity method investees was $24.7 million and $19.6 million at December 31, 2015 and 2014 , respectively, net of our proportionate share of the results of their operations and dividends received. Investments for which we do not have significant influence are accounted for under the cost method. The aggregate balance of these investments was $20.0 million at December 31, 2015 . There were no such investments outstanding at December 31, 2014 . Goodwill - The Company has a significant amount of goodwill on its balance sheet that is not amortized, but subject to impairment tests each fiscal year on October 1 or more often when events or circumstances indicate that the carrying amount of goodwill may not be recoverable. The Company's impairment tests utilize the two-step approach. The first step of the goodwill impairment test compares fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The recoverability of goodwill is measured based on one reporting unit for the total Company. Our plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company's chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment. In order to approximate the fair value of the reporting unit for purposes of testing recoverability, we use the total market capitalization of the Company, a market approach, which is then compared to the total book value of the Company. In the event the Company's fair value has fallen below book value, the Company will compare the estimated fair value of goodwill to its book value. If the book value of goodwill exceeds the estimated fair value of goodwill, the Company will recognize the difference as an impairment loss in operating income. There has been no impairment of goodwill during each of the years presented in the consolidated statements of operations. Other Intangible Assets with Determinable Lives - Other intangible assets with determinable lives consist of customer and distribution relationships, patented and unpatented technology, in-process research and development, and other intangibles and are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 15 years. WABCO assesses intangible assets for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Warranties - Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of sales at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates are updated based upon the most current warranty claims information available. The Company's warranty costs as a percentage of sales totaled 1.0% in 2015 , 0.9% in 2014 and 0.8% in 2013 . See Note 15 for a summary of warranties. Post-retirement Benefits - All post-retirement benefits are accounted for on an accrual basis using actuarial assumptions. Post-retirement pension benefits are provided for substantially all employees of WABCO, both in the United States and abroad through plans specific to each of WABCO's legal entities. In addition, in the United States, certain employees receive post-retirement health care and life insurance benefits. The impact of Health Care Reform legislation in the United States is immaterial to the Company. The costs of the benefits provided through plans of WABCO are included in the accompanying consolidated financial statements and summarized in detail along with other information pertaining to these plans in Note 13. Plans are primarily concentrated in the United Kingdom, Austria, Germany, and Switzerland. WABCO is also required to measure a defined benefit post-retirement plan's assets and obligations that determine its funded status as of the end of the employer's fiscal year, and recognize changes in the funded status of a defined benefit post-retirement plan in comprehensive income in the year in which the changes occur. Fair Value of Financial Instruments - Financial instruments consist mainly of cash, accounts receivable, accounts payable and loans payable to banks. As of December 31, 2015 and 2014 , the carrying amounts of these instruments approximated their fair values. Long-term debt also approximated fair value as of December 31, 2015 and 2014 . Derivative Instruments and Hedging Activities - The Company recognizes all derivative financial instruments in the consolidated financial statements at fair value. Changes in the fair value of derivative financial instruments which qualify for hedge accounting are recorded as an offset to the changes in fair value of the underlying hedged item and are included in other non-operating expense, net or other operating expense, net. See Note 20 for further details on derivative instruments. Research, Development and Engineering Expenses - Research and development costs are expensed as incurred. WABCO expended approximately $139.5 million in 2015 , $145.0 million in 2014 and $119.4 million in 2013 for research activities, product development and for product engineering. Business Combinations - We allocate the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquiree generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquiree is recorded as goodwill. When determining the fair values of assets acquired, liabilities assumed, and non-controlling interests in the acquiree, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. Income Taxes - Deferred income taxes are determined on the liability method, and are recognized for all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. No provision is made for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are permanently reinvested, except for Brazil's current year earnings and $300.0 million of unremitted foreign earnings related to a Belgian affiliate resulting from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC fine. A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50% ) based on technical merits, that the position will be sustained upon examination. Tax positions that meet the more likely than not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Tax positions are not permitted to be recognized, derecognized, or remeasured due to changes subsequent to the balance sheet date, but prior to the issuance of the financial statements. Rather, these changes are recorded in the period the change occurs with appropriate disclosure of such subsequent events, if significant. We record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more likely than not to be realized. We calculate this valuation allowance in accordance with the provisions of ASC 740, Income Taxes which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets, when measuring the need for a valuation allowance. While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to decrease the net deferred tax assets would be charged to income in the period such determination was made. Likewise, should we determine that we would be able to realize our deferred tax assets in the future in excess of our net recorded amount, an adjustment to increase the net deferred tax assets would increase income in the period such determination was made. Earnings Per Share - Basic net income per share has been computed using the weighted average number of WABCO common shares outstanding. The average number of outstanding shares of common stock used in computing diluted net income per share includes weighted average incremental shares when the impact is not anti-dilutive. The weighted average incremental shares represent the net amount of shares the Company would issue upon the assumed exercise of in-the-money stock options and vesting of restricted stock units (RSUs) and deferred stock units (DSUs) after assuming that the Company would use the proceeds from the exercises to repurchase stock. The weighted average incremental shares also includes the net amount of shares issuable for performance stock units (PSUs) at the end of the reporting period, if any at all, based on the number of shares issuable if the end of the period were the end of the vesting period. Anti-dilutive shares, if applicable, are excluded and represent those options, RSUs, PSUs and DSUs whose assumed proceeds were greater than the average price of the Company's common stock. Year Ended December 31, 2015 2014 2013 Weighted average incremental shares included 506,969 638,691 908,071 Shares excluded due to anti-dilutive effect — — 3,000 Comprehensive Income/(Loss) - Comprehensive income/(loss) consists of net income, foreign currency translation adjustments (including that on intercompany transactions of a long-term investment nature), pension liability adjustments, unrecognized gains or losses on post-retirement benefit plans, unrecognized gains or losses on investments and unrecognized gains or losses on hedges, and is presented in the accompanying consolidated statements of shareholders' equity and comprehensive income. Stock-Based Compensation - WABCO measures and recognizes in its consolidated statements of operations the expense associated with all share-based payment awards made to employees and directors including stock options, RSUs, PSUs, DSUs and restricted stock grants based on estimated fair values. All options granted prior to 2007 were adjusted upon the Distribution into two separate options, one relating to the Company's common stock and one relating to Trane common stock. This adjustment was made such that immediately following the Distribution (i) the number of shares relating to the Company options were equal to the number of shares of Company common stock that the option holder would have received in the Distribution had Trane options represented outstanding shares of Trane common stock, and (ii) the per share option exercise price of the original Trane stock option was proportionally allocated between the two types of stock options based upon the relative per share trading prices of the Company and Trane immediately following the Distribution. Thus, upon the Distribution, WABCO options are being held by both WABCO and Trane employees and Trane options continued to be held by WABCO employees. Options granted to WABCO employees in 2007 were equitably adjusted upon Distribution so as to relate solely to shares of the Company's common stock. These adjustments preserved the economic value of the awards immediately prior to the Distribution. All Company options issued as part of this adjustment and the Trane options are fully vested at this time. Further, for purposes of vesting and the post-termination exercise periods applicable to such stock options, the Trane Inc. Management Development and Compensation Committee determined that continued employment with the Company will be viewed as continued employment with the issuer of the options. Outstanding WABCO options held by non-WABCO employees or directors that arose as a result of the Distribution are not reflected in compensation expense recognized by the Company. Consequently, these stock options do not result in any tax benefits to the Company at any time. The WABCO options held by non-employees or directors are considered in the Company's diluted EPS calculation. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The adoption of recently issued accounting standards did not have a material impact on the consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update 2015-17 (ASU 2015-17) Balance Sheet Classification of Deferred Taxes , which requires that deferred tax assets and deferred tax liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 is effective for the interim and annual periods ending after December 15, 2016. Early adoption is permitted, and the Company adopted the provisions of ASU 2015-17 retrospectively as of December 31, 2015. Prior period information presented in the Company's consolidated financial statements was retrospectively adjusted, resulting in the reclassification of $20.8 million of deferred tax assets from current assets to noncurrent assets within the Company's consolidated balance sheet at December 31, 2014. In June 2015, the FASB issued ASU 2015-10 Technical Corrections and Improvements , which clarifies various topics in the FASB Accounting Standards Codification. ASU 2015-10 is effective for the interim and annual periods ending after December 15, 2015. The Company adopted the provisions of ASU 2015-10 as of December 31, 2015. There was no impact from adoption of this guidance on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs , which require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU 2015-03 is effective for the interim and annual periods ending after December 15, 2015. Early adoption is permitted, and the Company adopted the provisions of ASU 2015-03 retrospectively as of June 30, 2015. There was no impact from adoption of this guidance on prior period information presented in the Company's consolidated financial statements. In August 2014, the FASB issued ASU 2014-15 (ASU 2014-15) Presentation of Financial Statements - Going Concern , which provide guidance about management's responsibility in evaluating whether there is substantial doubt relating to an entity’s ability to continue as a going concern and to provide related footnote disclosures as applicable. ASU 2014-15 is effective for the interim and annual periods ending after December 15, 2016. The Company does not expect any material impact from adoption of this guidance on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which is a new comprehensive revenue recognition standard on the financial reporting requirements for revenue from contracts entered into with customers. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The FASB subsequently deferred the effective date of this standard to December 15, 2017 with early adoption permitted as of December 15, 2016. The Company is currently assessing the potential impact of the adoption of this guidance on its consolidated financial statements. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The table below presents the changes in accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, (Amount in millions) 2015 2014 2013 Foreign currency translation adjustments: Balance at beginning of period $ (148.1 ) $ (5.5 ) $ (9.5 ) Adjustment for the period (123.1 ) (142.6 ) 4.0 Balance at end of period (271.2 ) (148.1 ) (5.5 ) Losses on intra-entity transactions (1) : Balance at beginning of period (9.9 ) (8.9 ) (5.9 ) Adjustment for the period (5.3 ) (1.0 ) (3.0 ) Balance at end of period (15.2 ) (9.9 ) (8.9 ) Unrealized gains on investments: Balance at beginning of period 0.2 — — Adjustment for the period — 0.4 — Amounts reclassified to earnings, net — (0.2 ) — Balance at end of period 0.2 0.2 — Unrealized losses on hedges: Balance at beginning of period — — — Adjustment for the period (2) (1.3 ) — — Amounts reclassified to earnings, net 0.1 — — Balance at end of period (1.2 ) — — Pension and Post-retirement Plans: Balance at beginning of period (244.9 ) (109.0 ) (107.2 ) Other comprehensive income before reclassifications 12.9 (140.1 ) (6.6 ) Amounts reclassified to earnings, net (3) 11.5 4.2 4.8 Balance at end of period (220.5 ) (244.9 ) (109.0 ) Accumulated other comprehensive loss at end of period $ (507.9 ) $ (402.7 ) $ (123.4 ) (1) Relates to intra-entity foreign currency transactions that are of a long term investment nature, when the entities to the transaction are consolidated, combined or accounted for by the equity method in the Company's financial statements. (2) The adjustment for the period is net of taxes of $0.7 million for the year ended December 31, 2015 . See Note 20 for further discussion. (3) This accumulated other comprehensive income component, net of taxes of $4.6 million , $1.9 million and $1.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, is included in the computation of net periodic pension cost. See Note 13 for additional details. Capital Stock The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2015 , 2014 and 2013 . Number of Shares of Common Stock Total Shares Treasury Shares Net Shares Outstanding Balance, December 31, 2012 75,755,306 (13,008,155 ) 62,747,151 Shares issued upon exercise of stock options 1,600,850 — 1,600,850 Shares issued upon vesting of RSUs 106,768 — 106,768 Shares issued for DSUs 7,350 — 7,350 Shares issued for stock awards 900 — 900 Shares purchased for treasury — (3,103,994 ) (3,103,994 ) Balance, December 31, 2013 77,471,174 (16,112,149 ) 61,359,025 Shares issued upon exercise of stock options 394,899 — 394,899 Shares issued upon vesting of RSUs 91,235 — 91,235 Shares issued for DSUs 2,932 — 2,932 Shares issued for stock awards 800 — 800 Shares purchased for treasury — (3,423,018 ) (3,423,018 ) Balance, December 31, 2014 77,961,040 (19,535,167 ) 58,425,873 Shares issued upon exercise of stock options 414,782 — 414,782 Shares issued upon vesting of RSUs 117,830 — 117,830 Shares issued for DSUs 6,432 — 6,432 Shares issued for stock awards — — — Shares purchased for treasury — (2,205,351 ) (2,205,351 ) Balance, December 31, 2015 78,500,084 (21,740,518 ) 56,759,566 The Company accounts for purchases of treasury stock under the cost method with the costs of such share purchases reflected in treasury stock in the accompanying consolidated balance sheets. When treasury shares are reissued, they are recorded at the average cost of the treasury shares acquired since the inception of the share buy back programs, net of shares previously reissued and the Company reflects the difference between the average cost paid and the amount received for the reissued shares in capital surplus. As of December 31, 2015 , no shares have been reissued. On May 26, 2011, the Board of Directors approved a program to repurchase shares of the Company's common stock in an amount not to exceed $ 400 million , which expired on May 31, 2013. On October 26, 2012, the Board of Directors authorized the Company to enter into an additional share repurchase program for $ 400 million of common shares. An additional repurchase program for $200 million of common shares was further authorized on October 29, 2013. Both of these authorizations expired on December31, 2014. On December 5, 2014, the Board of Directors approved a repurchase program for an additional $500 million of common shares. This authorization expires on December 31, 2016. As of December 31, 2015 , the Company had repurchased a total of $ 1,221.0 million of shares under these four repurchase programs, leaving an unexpended balance of $ 250.8 million available to repurchase shares in the future. Between January 1, 2016 and February 11, 2016 , the Company repurchased an additional 405,000 shares for a total of $ 35.4 million . The Company plans to continue to repurchase shares at prevailing market prices. The timing and amount of share repurchases, if any, will depend on a variety of factors including, among other things, share price, market conditions and applicable regulatory requirements. |
Streamlining
Streamlining | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Streamlining | Streamlining The Company accounts for employee-related streamlining charges as either a one-time benefit arrangement or an ongoing benefit arrangement as appropriate. From time to time the Company also has streamlining charges that are not related to employees, such as facility exit costs. Based on market declines occurring in the fourth quarter of 2008, we commenced a streamlining program on October 28, 2008 (the 2008/2009 Program), which began with a consultative process with works councils and employee representatives globally. The 2008/2009 Program reduced our global workforce by approximately 1,800 employees. The Company does not expect to incur any further charges on the 2008/2009 Program and has fully paid all liabilities related to this program as of December 31, 2015 . In the third quarter of 2015, the Company announced proposals to cease manufacturing at two production facilities to preserve the Company's global competitiveness for certain mechanical products. These proposals are expected to result in a workforce reduction of approximately 320 positions and includes a smaller program initiated in the fourth quarter of 2014 (the 2014/2015 Program). Depending on the timing of the outcome of formal processes in accordance with local labor laws and practices, production at both facilities could be transferred to other facilities within the Company's globally integrated supply chain by the end of 2017. Based on the Company’s efforts to maintain our global footprint, the Company may periodically enter into other streamlining programs as deemed necessary (Other Programs). The following is a summary of changes in the Company’s streamlining program liabilities for the year ended December 31, 2015 . (Amounts in millions) 2008 / 2009 Program Balance as of December 31, 2014 $ 3.3 Charges during 2015 — Payments during 2015 (3.3 ) FX effects — Balance as of December 31, 2015 $ — 2014 / 2015 Program Balance as of December 31, 2014 $ 10.0 Charges during 2015 45.4 Payments during 2015 (1.1 ) Noncash writeoffs during 2015 (8.5 ) FX effects (2.0 ) Balance as of December 31, 2015 $ 43.8 Other Programs Balance as of December 31, 2014 $ 18.7 Charges during 2015 23.1 Payments during 2015 (14.5 ) FX effects (2.4 ) Balance as of December 31, 2015 $ 24.9 Total streamlining liability as of December 31, 2015 $ 68.7 A balance of $ 55.3 million is included in other liabilities (non-current) and $ 13.4 million is included in other accrued liabilities (current) as of December 31, 2015 . The following is a summary of current and cumulative streamlining costs: Charges for Year Ended December 31, 2015 Cumulative Charges as of December 31, 2015 (Amounts in millions) 2008/2009 Program 2014/2015 Program Other Programs 2008/2009 Program 2014/2015 Program Other Programs Employee-related charges – cost of sales $ — $ 32.9 $ 7.4 $ 45.7 $ 34.0 $ 32.8 Employee-related charges – selling and administrative — 4.0 15.3 45.8 11.9 43.4 Asset write-offs — 7.7 — — 8.5 2.1 Other streamlining charges — 0.8 0.4 — 1.0 0.2 Total program costs $ — $ 45.4 $ 23.1 $ 91.5 $ 55.4 $ 78.5 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Other Comprehensive Income The table below presents the changes in accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, (Amount in millions) 2015 2014 2013 Foreign currency translation adjustments: Balance at beginning of period $ (148.1 ) $ (5.5 ) $ (9.5 ) Adjustment for the period (123.1 ) (142.6 ) 4.0 Balance at end of period (271.2 ) (148.1 ) (5.5 ) Losses on intra-entity transactions (1) : Balance at beginning of period (9.9 ) (8.9 ) (5.9 ) Adjustment for the period (5.3 ) (1.0 ) (3.0 ) Balance at end of period (15.2 ) (9.9 ) (8.9 ) Unrealized gains on investments: Balance at beginning of period 0.2 — — Adjustment for the period — 0.4 — Amounts reclassified to earnings, net — (0.2 ) — Balance at end of period 0.2 0.2 — Unrealized losses on hedges: Balance at beginning of period — — — Adjustment for the period (2) (1.3 ) — — Amounts reclassified to earnings, net 0.1 — — Balance at end of period (1.2 ) — — Pension and Post-retirement Plans: Balance at beginning of period (244.9 ) (109.0 ) (107.2 ) Other comprehensive income before reclassifications 12.9 (140.1 ) (6.6 ) Amounts reclassified to earnings, net (3) 11.5 4.2 4.8 Balance at end of period (220.5 ) (244.9 ) (109.0 ) Accumulated other comprehensive loss at end of period $ (507.9 ) $ (402.7 ) $ (123.4 ) (1) Relates to intra-entity foreign currency transactions that are of a long term investment nature, when the entities to the transaction are consolidated, combined or accounted for by the equity method in the Company's financial statements. (2) The adjustment for the period is net of taxes of $0.7 million for the year ended December 31, 2015 . See Note 20 for further discussion. (3) This accumulated other comprehensive income component, net of taxes of $4.6 million , $1.9 million and $1.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, is included in the computation of net periodic pension cost. See Note 13 for additional details. Capital Stock The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2015 , 2014 and 2013 . Number of Shares of Common Stock Total Shares Treasury Shares Net Shares Outstanding Balance, December 31, 2012 75,755,306 (13,008,155 ) 62,747,151 Shares issued upon exercise of stock options 1,600,850 — 1,600,850 Shares issued upon vesting of RSUs 106,768 — 106,768 Shares issued for DSUs 7,350 — 7,350 Shares issued for stock awards 900 — 900 Shares purchased for treasury — (3,103,994 ) (3,103,994 ) Balance, December 31, 2013 77,471,174 (16,112,149 ) 61,359,025 Shares issued upon exercise of stock options 394,899 — 394,899 Shares issued upon vesting of RSUs 91,235 — 91,235 Shares issued for DSUs 2,932 — 2,932 Shares issued for stock awards 800 — 800 Shares purchased for treasury — (3,423,018 ) (3,423,018 ) Balance, December 31, 2014 77,961,040 (19,535,167 ) 58,425,873 Shares issued upon exercise of stock options 414,782 — 414,782 Shares issued upon vesting of RSUs 117,830 — 117,830 Shares issued for DSUs 6,432 — 6,432 Shares issued for stock awards — — — Shares purchased for treasury — (2,205,351 ) (2,205,351 ) Balance, December 31, 2015 78,500,084 (21,740,518 ) 56,759,566 The Company accounts for purchases of treasury stock under the cost method with the costs of such share purchases reflected in treasury stock in the accompanying consolidated balance sheets. When treasury shares are reissued, they are recorded at the average cost of the treasury shares acquired since the inception of the share buy back programs, net of shares previously reissued and the Company reflects the difference between the average cost paid and the amount received for the reissued shares in capital surplus. As of December 31, 2015 , no shares have been reissued. On May 26, 2011, the Board of Directors approved a program to repurchase shares of the Company's common stock in an amount not to exceed $ 400 million , which expired on May 31, 2013. On October 26, 2012, the Board of Directors authorized the Company to enter into an additional share repurchase program for $ 400 million of common shares. An additional repurchase program for $200 million of common shares was further authorized on October 29, 2013. Both of these authorizations expired on December31, 2014. On December 5, 2014, the Board of Directors approved a repurchase program for an additional $500 million of common shares. This authorization expires on December 31, 2016. As of December 31, 2015 , the Company had repurchased a total of $ 1,221.0 million of shares under these four repurchase programs, leaving an unexpended balance of $ 250.8 million available to repurchase shares in the future. Between January 1, 2016 and February 11, 2016 , the Company repurchased an additional 405,000 shares for a total of $ 35.4 million . The Company plans to continue to repurchase shares at prevailing market prices. The timing and amount of share repurchases, if any, will depend on a variety of factors including, among other things, share price, market conditions and applicable regulatory requirements. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's Certificate of Incorporation authorizes the Company to issue up to 400,000,000 shares of common stock, par value $0.01 per share and 4,000,000 shares of preferred stock, par value $0.01 per share. The Company paid no dividends on our common stock in 2015 , 2014 and 2013 . The WABCO Holdings Inc. 2007 Omnibus Incentive Plan (the 2007 Omnibus Plan), was formally adopted by our Board of Directors prior to the Distribution. The 2007 Omnibus Plan was replaced in May 2009 by the WABCO Holdings Inc. 2009 Omnibus Incentive Plan (the 2009 Omnibus Plan), and further amended in May 2013 (the 2009 Restated Omnibus Plan) as approved by the shareholders at the Annual Meeting of Shareholders. The 2009 Restated Omnibus plan is intended to promote our long-term financial success and increase shareholder value by providing us with greater flexibility to implement the optimal mix of annual and long-term cash, equity and equity-based incentives. It is also intended to align the interests of our employees with the interests of our shareholders by affording them certain opportunities to acquire an interest in our stock. We believe that these incentives and opportunities will encourage our executives and other key employees to continue in our employment, by providing them with a competitive level of compensation that varies based on our performance. Under the 2009 Omnibus Plan and 2009 Restated Omnibus Plan, the Company may issue the following types of awards: stock options, stock appreciation rights (sometimes referred to as SARs), RSUs, PSUs, DSUs, restricted shares, annual incentive awards and long-term incentive awards. The maximum number of shares or units that may be issued under the 2009 Restated Omnibus Plan is 5,100,000 . No participant shall be granted stock options, stock appreciation rights, or both with respect to more than 750,000 shares during any calendar year. No individual shall be granted restricted shares or restricted stock units, with respect to 200,000 shares or units as the case may be during any calendar year. If an award under either the 2007 Omnibus Plan, the 2009 Omnibus Plan or the 2009 Restated Omnibus Plan expires or becomes unexercisable without having been exercised in full, or, with respect to full-value incentive awards, is forfeited to or repurchased by the Company, the unpurchased shares will become available for future grant or sale under the 2009 Restated Omnibus Plan. As of December 31, 2015 , a total of 732,407 stock options, RSUs, PSUs and DSUs were outstanding and there were 3,369,867 shares remaining available for grant under the 2009 Restated Omnibus Plan. The PSUs granted as part of the Company's equity incentive awards vest at levels ranging from none to 200% of the number of granted PSUs depending upon the achievement of three-year cumulative earnings per share goals as approved by the Compensation, Nominating and Governance Committee of the Board of Directors. The Company assesses the expected achievement levels at the end of each reporting period. As of December 31, 2015 , the Company believes it is probable that the performance conditions will be met and has accrued for the compensation expense accordingly. The DSUs are granted to our non-management directors as part of the equity portion of their annual retainer and are fully vested at grant. Each DSU provides the right to the issuance of a share of our common stock, within ten days after the earlier of the director's death or disability, the 13-month anniversary of the grant date or the director's separation from service. Each director may also elect within a month after the grant date to defer the receipt of shares for five or more years. No election can be made to accelerate the issuance of stock from a DSU. The Company records stock-based compensation based on the estimated fair value of the award at the grant date and is recognized as an expense in the consolidated statements of operations over the requisite service period. The estimated fair value of the award is based on the closing market price of the Company’s common stock on the date of grant. For PSUs, the grant date fair value of the number of awards expected to vest based on the Company’s best estimate of ultimate performance against the respective targets is recognized as compensation expense on a straight-line basis over the requisite vesting period of the awards. Total stock-based compensation cost recognized during the years ended December 31, 2015 , 2014 and 2013 was as follows: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Stock-based compensation $ 12.0 $ 15.5 $ 13.6 The following tables summarize the stock options, RSUs, PSUs, DSUs and stock awards activity for each of the periods presented: Underlying Shares Weighted - Average Exercise Price Weighted - Average Grant Date Fair Value WABCO employees Trane employees Total Options Outstanding December 31, 2012 2,300,133 568,059 2,868,192 $ 35.82 Options Granted — — — $ — $ — Options Exercised (1,359,825 ) (242,243 ) (1,602,068 ) $ 31.08 Options Forfeited (53,391 ) (200 ) (53,591 ) $ 52.71 Options Outstanding December 31, 2013 886,917 325,616 1,212,533 $ 41.20 Options Granted — — — $ — $ — Options Exercised (298,032 ) (98,611 ) (396,643 ) $ 38.01 Options Forfeited (8,036 ) (200 ) (8,236 ) $ 58.54 Options Outstanding December 31, 2014 580,849 226,805 807,654 $ 42.60 Options Granted — — — $ — $ — Options Exercised (284,817 ) (130,882 ) (415,699 ) $ 41.87 Options Forfeited — (336 ) (336 ) $ 38.97 Options Outstanding December 31, 2015 296,032 95,587 391,619 $ 43.37 Exercisable at December 31, 2015 283,842 95,587 379,429 $ 42.86 Underlying Shares Weighted - Average Grant Date Fair Value RSUs Outstanding December 31, 2012 352,965 $ 55.30 RSUs Granted 112,964 $ 68.37 RSUs Vested (129,755 ) $ 43.70 RSUs Forfeited (47,707 ) $ 60.86 RSUs Outstanding December 31, 2013 288,467 $ 64.72 RSUs Granted 93,070 $ 100.78 RSUs Vested (114,485 ) $ 64.39 RSUs Forfeited (14,584 ) $ 75.08 RSUs Outstanding December 31, 2014 252,468 $ 77.56 RSUs Granted 78,664 $ 116.46 RSUs Vested (157,585 ) $ 70.81 RSUs Forfeited (20,460 ) $ 96.95 RSUs Outstanding December 31, 2015 153,087 $ 101.91 Underlying Shares Weighted - Average Grant Date Fair Value PSUs Outstanding December 31, 2012 — $ — PSUs Granted 94,364 $ 68.10 PSUs Forfeited (9,954 ) $ 68.10 PSUs Outstanding December 31, 2013 84,410 $ 68.10 PSUs Granted 65,508 $ 103.41 PSUs Forfeited (10,940 ) $ 77.38 PSUs Outstanding December 31, 2014 138,978 $ 84.01 PSUs Granted 58,630 $ 116.38 PSUs Forfeited (24,896 ) $ 95.65 PSUs Outstanding December 31, 2015 172,712 $ 93.31 Underlying Shares Weighted - Average Grant Date Fair Value DSUs Outstanding December 31, 2012 12,766 $ 51.32 DSUs Granted 5,864 $ 75.12 DSUs Issued (7,350 ) $ 52.39 DSUs Outstanding December 31, 2013 11,280 $ 63.00 DSUs Granted 7,156 $ 107.70 DSUs Issued (2,932 ) $ 75.12 DSUs Outstanding December 31, 2014 15,504 $ 78.11 DSUs Granted 5,917 $ 129.94 DSUs Issued (6,432 ) $ 106.59 DSUs Outstanding December 31, 2015 14,989 $ 86.35 Shares Weighted - Average Grant Date Fair Value Stock Awards granted: Year ended December 31, 2013 900 $ 70.53 Year ended December 31, 2014 800 $ 96.37 Year ended December 31, 2015 — $ — The table below shows the vesting schedule of the RSUs granted for each of the periods presented: Vesting Schedule Equal installments over 3 years After 2 years After 3 years After 4 years Total RSUs granted in 2013 109,254 — 3,710 — 112,964 RSUs granted in 2014 78,966 1,934 12,170 — 93,070 RSUs granted in 2015 74,394 814 3,456 — 78,664 As discussed above, the PSUs granted in each of the years ended December 31, 2015 , 2014 and 2013 vest, if at all, and at levels depending upon, the achievement of certain three-year cumulative earnings per share goals. The DSUs granted in each of the years ended December 31, 2015 , 2014 and 2013 vest immediately upon grant. As of December 31, 2015 , the total aggregate intrinsic value of stock option awards outstanding was $23.1 million . The total aggregate intrinsic value of options exercisable and options outstanding, less expected forfeitures, as of the same date was $22.5 million and $23.1 million , respectively. Aggregate intrinsic value is calculated by subtracting the exercise price of the option from the closing price of the Company's common stock on December 31, 2015 , multiplied by the number of shares per each option. The total intrinsic value of options exercised was $ 32.7 million , $24.9 million and $69.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Total fair value of shares vested was $ 20.1 million , $11.8 million and $9.5 million during the year ended December 31, 2015 , 2014 and 2013 respectively. The 337,989 of unvested options, RSUs and PSUs as of December 31, 2015 will result in the recognition of $ 15.5 million of compensation cost to be recognized over a weighted average period of 1.8 years. The contractual life of all options is 10.0 years. The weighted average remaining contractual life of options outstanding as of December 31, 2015 was 3.7 years, while that of the vested options was 3.6 years. The tax benefit from stock options exercised during the period was immaterial for each of the years ended December 31, 2015 , 2014 and 2013 . |
Other Operating and Non-Operati
Other Operating and Non-Operating Expense / (Income), Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Operating and Non-Operating Expense / (Income), Net | Other Operating and Non-Operating Expense / (Income), Net Other expense/(income) was as follows: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Operating expense: Bank charges $ 1.7 $ 2.2 $ 2.0 Miscellaneous taxes 4.1 5.7 2.9 Other expense, net 0.9 1.0 0.1 $ 6.7 $ 8.9 $ 5.0 Non-operating (income)/expense: Indemnification settlements, net $ (1.0 ) $ (4.3 ) $ (8.8 ) Securitization and receivable discount fees 0.3 0.9 1.0 Foreign exchange gains (0.9 ) (0.9 ) (2.3 ) Other expense, net — 2.5 3.2 $ (1.6 ) $ (1.8 ) $ (6.9 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories, which are carried on a last-in, first-out (LIFO) basis, are as follows: Year Ended December 31, (Amounts in millions) 2015 2014 Finished products $ 95.7 $ 87.3 Products in process 7.8 7.5 Raw materials 109.2 94.8 Inventories at cost $ 212.7 $ 189.6 Inventory costs are primarily comprised of direct material and labor costs, as well as material overhead such as inbound freight and custom and excise duties. The current replacement cost approximated the LIFO carrying cost for 2015 and 2014 . Inventory reserves amounted to $12.2 million and $13.0 million for the years ended December 31, 2015 and December 31, 2014 , respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The components of property, plant and equipment, at cost, are as follow: Year Ended December 31, (Amounts in millions) 2015 2014 Land $ 21.7 $ 23.4 Buildings 172.5 193.2 Machinery and equipment 775.2 796.8 Improvements in progress 65.6 49.1 Gross property, plant and equipment 1,035.0 1,062.5 Less: accumulated depreciation 637.0 637.6 Net property, plant and equipment $ 398.0 $ 424.9 Depreciation expense for owned assets, including those under capital leases, for the years ended December 31, 2015 , 2014 and 2013 was $ 77.5 million , $ 81.7 million and $ 74.6 million , respectively. Net property, plant and equipment includes tooling investments of $69.9 million and $75.8 million for the years ended December 31, 2015 and 2014 respectively. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivable Financing Facility [Abstract] | |
Financing Receivables | Financing Receivables On September 23, 2009, the Company established an accounts receivable securitization program (the Accounts Receivable Securitization Program) with Société Générale Bank Nederland N.V. The Accounts Receivable Securitization Program expired on September 26, 2014, and was not renewed. During the year ended December 31, 2014 and prior to the expiration of the Accounts Receivable Securitization Program, the Company sold all of its eligible receivables into the Accounts Receivable Securitization Program. The receivables were removed from the balance sheet in accordance with the guidance under ASC 860, Transfers and Servicing . The total amount of receivables sold under the Accounts Receivable Securitization Program for the year ended December 31, 2014 was €545.7 million ( $739.9 million at weighted average 2014 exchange rates through program expiration) compared to €790.8 million ( $1,050.6 million at weighted average 2013 exchange rates) for the year ended December 31, 2013 . The fair value of the receivables sold equaled the carrying cost at time of sale, and no gain or loss was recorded as a result of the sale. The Company estimates the fair value of sold receivables using Level 3 inputs based on historical and anticipated performance of similar receivables, including historical and anticipated credit losses (if any). As part and through the expiration of the Accounts Receivable Securitization Program, the Company continued to service the receivables. The Company sold the receivables at face value, but received actual funding net of a subordinated deposit account with Société Générale until collections were received from customers for the receivables sold. The Company was exposed to the credit losses of sold receivables up to the amount of its subordinated deposit account at each settlement date. Credit losses for receivables sold and past due through program expiration in 2014 were immaterial. Servicing fees paid for the program were $0.6 million and $0.8 million for the years ended December 31, 2014 and 2013 , respectively. In connection with the expiration of the Accounts Receivable Securitization Program in 2014 , the Company entered into a separate agreement with Société Générale to repurchase accounts receivable amounting to €88.1 million ( $111.7 million based on exchange rates at time of repurchase). A subordinated deposit of $38.2 million was also released to the Company, resulting in a net decrease in cash and cash equivalents of $73.5 million . Other receivables available for financing include sales to reputable state owned and public enterprises in China that are settled through bankers acceptance drafts which are registered and endorsed to the Company. These notes receivable are fully guaranteed by banks and generally have contractual maturities of six months or less, but the ultimate recourse remains against the trade debtor. These guaranteed notes are available for discounting with banking institutions in China or transferring to suppliers to settle liabilities. The total amount of notes receivable discounted or transferred for the years ended December 31, 2015 , 2014 and 2013 was $ 80.7 million , $ 63.8 million and $42.8 million , respectively. Expenses related to discounting these notes amounted to $0.2 million and $0.1 million for the years ended December 31, 2015 and 2014 , respectively, which are included in “other non-operating expense, net.” There were no discounting expenses for the year ended December 31, 2013 . The fair value of these guaranteed notes receivable is determined based on Level 2 inputs including credit ratings and other criteria observable in the market. The fair value of these notes equal their carrying amounts of $ 53.9 million and $ 52.8 million as of December 31, 2015 and 2014 , respectively, and are included in “other current assets” on the consolidated balance sheets. The Company monitors the credit quality of both the drawers of the draft and guarantors on a monthly basis by reviewing various factors such as payment history, level of state involvement in the institution, size, national importance as well as current economic conditions in China. Since the Company has not experienced any historical losses nor is the Company expecting future credit losses based on a review of the various credit quality indicators described above, we have not established a loss provision against these receivables as of December 31, 2015 or 2014 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 . Year Ended December 31, (Amounts in millions) 2015 2014 Balance of goodwill, beginning of year $ 421.0 $ 381.2 Acquisitions — 91.6 Foreign exchange translation (43.3 ) (51.8 ) Balance of goodwill, end of year $ 377.7 $ 421.0 The changes in the carrying value of intangible assets for the years ended December 31 are as follow: Capitalized Software Other Intangible Assets Total Gross intangible assets as of: December 31, 2012 $ 99.1 $ 50.3 $ 149.4 Additions 13.5 2.2 15.7 Disposals (1.9 ) (0.5 ) (2.4 ) Foreign exchange translation 4.3 (0.2 ) 4.1 December 31, 2013 115.0 51.8 166.8 Additions 12.7 53.4 66.1 Disposals (17.7 ) — (17.7 ) Foreign exchange translation (14.5 ) (11.6 ) (26.1 ) December 31, 2014 95.5 93.6 189.1 Additions 10.9 — 10.9 Disposals (0.8 ) — (0.8 ) Foreign exchange translation (9.8 ) (8.6 ) (18.4 ) December 31, 2015 $ 95.8 $ 85.0 $ 180.8 Accumulated amortization as of: December 31, 2012 $ (76.4 ) $ (33.6 ) $ (110.0 ) Amortization expense (7.5 ) (3.1 ) (10.6 ) Disposals 1.9 0.4 2.3 Foreign exchange translation (3.4 ) (0.8 ) (4.2 ) December 31, 2013 (85.4 ) (37.1 ) (122.5 ) Amortization expense (9.1 ) (12.4 ) (21.5 ) Disposals 17.7 — 17.7 Foreign exchange translation 10.7 4.9 15.6 December 31, 2014 (66.1 ) (44.6 ) (110.7 ) Amortization expense (8.7 ) (10.5 ) (19.2 ) Disposals 0.7 — 0.7 Foreign exchange translation 6.9 4.3 11.2 December 31, 2015 $ (67.2 ) $ (50.8 ) $ (118.0 ) Net intangible assets as of: December 31, 2015 $ 28.6 $ 34.2 $ 62.8 The Company expects to incur approximately $ 18 million to $22 million of amortization expense for each of the next five fiscal years excluding any amortization that may arise from acquisitions. |
Post-retirement Benefits
Post-retirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Post-retirement Benefits | Post-retirement Benefits WABCO employees participate in a number of benefit plans. The plans include a 401(k) savings plan for the Company's U.S. salaried and hourly employees, which is an individual-account defined contribution plan. WABCO employees in certain countries including Germany, the United Kingdom, France and Switzerland, participate in defined benefit plans or retiree medical plans sponsored by local WABCO legal entities. Further, WABCO has assumed responsibility for certain retiree medical plans in the United States and a pension plan in Germany relating to former employees of Trane's Bath & Kitchen division. Benefits under defined benefit pension plans on a worldwide basis are generally based on years of service and either employee compensation during the last years of employment or negotiated benefit levels. WABCO recognizes in its consolidated balance sheets an asset for a defined benefit post-retirement plan's overfunded status or a liability for a plan's underfunded status. The long-term liability of $552.7 million on the consolidated balance sheets is primarily due to the underfunded plan in Germany, where the majority of the Company's prior and current employees are based. The following table provides a reconciliation of the changes in pension and retirement health and life insurance benefit obligations and fair value of assets for the years ending December 31, 2015 and 2014 , and a statement of the funded status as of December 31, 2015 and 2014 . 2015 2015 2014 2014 (Amounts in millions) Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Pension Benefits Reconciliation of benefit obligation: Obligation at beginning of year $ 13.3 $ 777.8 $ 14.0 $ 606.2 Service cost 0.2 16.7 0.1 12.4 Interest cost 0.4 17.6 0.5 21.7 Participant contributions 0.2 0.2 0.3 0.2 Curtailments — (1.4 ) — — Actuarial loss / (gain) 3.9 (2.4 ) 2.6 248.6 Benefit payments (3.3 ) (26.2 ) (4.2 ) (31.0 ) Foreign exchange effects — (66.6 ) — (83.9 ) Other — (0.2 ) — 3.6 Obligation at end of year $ 14.7 $ 715.5 $ 13.3 $ 777.8 2015 2015 2014 2014 (Amounts in millions) Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Pension Benefits Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ — $ 188.1 $ — $ 178.1 Actual return on assets — (0.4 ) — 24.7 Employer contributions 3.1 19.7 3.9 29.1 Participant contributions 0.2 0.2 0.3 0.2 Benefit payments (3.3 ) (26.2 ) (4.2 ) (31.0 ) Foreign exchange effects — (7.5 ) — (11.9 ) Other expenses — (0.6 ) — (1.1 ) Fair value of plan assets at end of year $ — $ 173.3 $ — $ 188.1 Funded Status at December 31 $ (14.7 ) $ (542.2 ) $ (13.3 ) $ (589.7 ) Amounts recognized in the balance sheet: Noncurrent assets $ — $ 16.3 $ — $ 13.7 Current liabilities (1.6 ) (18.9 ) (1.6 ) (20.1 ) Noncurrent liabilities (13.1 ) (539.6 ) (11.7 ) (583.3 ) Net amounts recognized in balance sheet: $ (14.7 ) $ (542.2 ) $ (13.3 ) $ (589.7 ) Cumulative amounts recognized in other comprehensive income consist of: Prior service cost $ 0.1 $ 1.7 $ 0.1 $ 1.9 Net actuarial loss 11.5 300.1 9.5 340.5 Total (before tax effects) $ 11.6 $ 301.8 $ 9.6 $ 342.4 $15.0 million of the amount in other comprehensive income as of December 31, 2015 is expected to be recognized as post-retirement costs in 2016 . The following table provides a summary of pension plans with accumulated benefit obligations in excess of assets as of December 31: 2015 2014 (Amounts in millions) Foreign Pension Plans Foreign Pension Plans For all plans: Accumulated benefit obligation $ 599.7 $ 692.4 For pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 470.1 $ 547.7 Total post-retirement costs are shown below: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Foreign pensions $ 42.0 $ 31.6 $ 30.9 Health & Life insurance benefits 1.1 1.0 1.0 Total post-retirement costs, including accretion expense $ 43.1 $ 32.6 $ 31.9 Components of post-retirement costs are broken out in the tables below: Pension Benefit Costs Year Ended December 31, (Amounts in millions) 2015 2014 2013 Service cost-benefits earned during period $ 16.7 $ 12.3 $ 12.7 Interest cost on projected benefit obligation 17.6 21.6 20.8 Less: assumed return on plan assets (7.9 ) (8.1 ) (8.8 ) Amortization of prior service cost 0.5 (0.1 ) 0.1 Amortization of net loss 15.1 5.9 6.1 Net defined benefit plan cost after amendments $ 42.0 $ 31.6 $ 30.9 Other Post-Retirement Benefit Costs Year Ended December 31, (Amounts in millions) 2015 2014 2013 Interest and service cost on projected benefit obligation $ 0.6 $ 0.6 $ 0.6 Amortization of net loss 0.5 0.4 0.4 Defined benefit plan cost $ 1.1 $ 1.0 $ 1.0 For plans where the total unrecognized net gain or loss exceeds the greater of 10% of the projected benefit obligation or 10% of the plan assets, the excess is amortized on a straight-line basis over the average expected future working lifetime of the active participants of that plan. For plans without active participants, the amortization period is the average life expectancy of plan participants. Major assumptions used in determining the benefit obligation and net cost for post-retirement plans are presented below as weighted averages: Benefit Obligation at December 31 2015 Health & Life Ins. Benefits 2015 Foreign Pension Plans 2014 Health & Life Ins. Benefits 2014 Foreign Pension Plans Discount rate 3.75 % 2.50 % 3.50 % 2.43 % Salary growth N/A 2.95 % N/A 3.03 % Net Periodic Pension Cost for the year Discount rate 3.50 % 2.43 % 4.00 % 3.71 % Salary growth N/A 3.03 % N/A 3.18 % Expected return on plan assets N/A 4.89 % N/A 4.27 % The discount rate assumption in this chart changed from 2014 to 2015 , resulting in a change in the pension benefit obligation. In the chart above that reconciles the change in benefit obligations for the year, the impact of the discount rate change is included in the actuarial loss/(gain) line item. The discount rate noted for foreign pension plans is a weighted average rate based on each of the applicable country's rates. The assumed rate of return is a long-term investment return that takes into account the classes of assets held by the plan and expected returns for each class of assets. Return expectations reflect forward-looking analysis as well as historical experience. WABCO's asset management strategy focuses on maintaining a diversified portfolio using various classes of assets to generate attractive returns while managing risk. The Company periodically reviews its target asset allocations for a given plan to ensure it aligns with the asset management strategy. In determining the target asset allocation for a given plan, consideration is given to the nature of its liabilities, and portfolios are periodically rebalanced with reference to the target level. Asset Allocation 2015 2014 2015 Target 2014 Target Equity securities 30 % 28 % 28 % 28 % Debt securities 7 % 11 % 11 % 11 % Insurance contracts 47 % 46 % 46 % — % Investments in collective foundations 14 % 14 % 14 % 14 % Other * 2 % 1 % 1 % 1 % * Included in "other" above are mutual funds held in real estate. All assets are measured at the current fair value. The fair values of the insurance contract and investments in collective foundations are determined based on applicable discount rates and other observable inputs (Level 2). For all other assets, the Company determines fair value for each class of assets in its entirety using quoted prices in active markets for identical assets (Level 1). The Company has not changed the valuation techniques and inputs used during the periods presented. The fair values for each class of assets are presented below: (Amounts in millions) 2015 2014 Equity securities $ 52.5 $ 52.7 Debt securities 12.1 20.7 Insurance contracts 80.6 87.0 Investments in collective foundations 24.8 25.6 Other * 3.3 2.1 Total fair value of plan assets $ 173.3 $ 188.1 * Included in "other" above are mutual funds held in real estate. WABCO makes contributions to funded pension plans that at a minimum, meet all statutory funding requirements. Contributions, including payment of benefits incurred by unfunded plans and health and life insurance benefits, totaled $22.8 million in 2015 compared to $33.0 million in 2014 . Contributions in 2016 are expected to be in line with the contributions made during 2015 . Expected future benefit payments from our pension and retirement health and life insurance benefit plans are shown in the table below: (Amounts in millions) 2016 2017 2018 2019 2020 2021-2025 Domestic plans without subsidy $ 1.6 $ 1.5 $ 1.4 $ 1.3 $ 1.3 $ 5.2 Foreign pension plans $ 25.9 $ 26.0 $ 26.7 $ 26.6 $ 27.2 $ 140.3 The weighted average annual assumed rate of increase in the health care cost trend rate was 6.8% for 2014 , 6.5% for 2015 and is assumed to increase to 7.5% in 2016 and then gradually decline to 4.75% by 2027. The health care cost trend rate assumption has the following effect: (Amounts in millions) 1% Increase 1% Decrease Effect on the health care component of accumulated post-retirement obligation $ 1.0 $ (0.9 ) Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs $ — $ — |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Notes On May 8, 2015 , the Company entered into a note purchase agreement (the Note Purchase Agreement) for the issuance of $150 million of 2.83% senior unsecured notes due June 25, 2022 (the Series A Notes), $200 million of 3.08% senior unsecured notes due June 25, 2025 (the Series B Notes) and $150 million of 3.18% senior unsecured notes due June 25, 2027 (the Series C Notes; and together with the Series A Notes and the Series B Notes, collectively, the Senior Notes). The Senior Notes were issued and funded on June 25, 2015 . The Company paid approximately $2.1 million of debt issuance costs in connection with the Senior Notes, which has been presented in the consolidated balance sheets as a direct reduction of the related debt liability. Interest on the Senior Notes is payable semi-annually on January 1 and July 1 of each year (other than July 1, 2015). As of December 31, 2015 , the outstanding debt balance net of unamortized debt issuance costs was $498.0 million . The proceeds from the Senior Notes were partially utilized to repay the outstanding balance on our revolving credit facilities. The remaining proceeds are intended to fund our share repurchase program, finance acquisitions, refinance existing indebtedness and meet general financing requirements. Subject to certain conditions, the Company may, at its option, prepay all or part of the Senior Notes plus any accrued and unpaid interest to the date of prepayment and certain penalties as defined in the Note Purchase Agreement. The Company may also be required, subject to certain events and conditions, to make an offer to prepay all of the Senior Notes including any accrued and unpaid interest to the date of prepayment. Each holder has the option to accept or reject such offer to prepay. The Note Purchase Agreement contains customary affirmative and negative covenants, and financial covenants consisting of a consolidated net indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation and amortization adjusted for certain items) ratio and a consolidated EBITDA to consolidated net interest expense ratio of not more than three times at the end of fiscal quarter, always based upon the preceding twelve consecutive months. The Note Purchase Agreement also provides for customary events of default, the occurrence of which could result in an acceleration of the Company's obligations under the Note Purchase Agreement. We were in compliance with all of the covenants as of December 31, 2015 . Revolving Credit Facilities On July 8, 2011 , the Company entered into a $400 million multi-currency five -year senior unsecured revolving credit facility which was amended and restated on September 30, 2015 (the 2015 Facility, previously referred to as the 2011 Facility) to, among other things, extend the original expiry date to September 30, 2020 subject to two 1-year extension options and amend the applicable margins on the original revolving credit facility. As of December 31, 2015 , this is our principal bank credit facility. On December 17, 2014 , the Company entered into a new $100 million multi-currency five -year senior unsecured revolving credit facility (the 2014 Facility) which will expire on December 17, 2019 . Under the revolving credit facilities, the Company may borrow, on a revolving basis, loans in an aggregate principal amount at any one time outstanding not in excess of $500 million . Up to $30 million under the 2015 Facility may be used for issuing letters of credit, of which $ 30.0 million was unused as of December 31, 2015 , and up to $50 million is available in the form of swing line loans, all $ 50 million of which was available for use as of December 31, 2015 . The following table summarizes the balance outstanding on these facilities: As of December 31, 2015 As of December 31, 2014 (Amounts in millions) Outstanding borrowings Letters of credit Outstanding borrowings Letters of credit 2014 Facility $ — $ — $ 100.0 $ — 2015 Facility (previously the 2011 Facility) — — 206.0 0.9 $ — $ — $ 306.0 $ 0.9 Incremental ability to borrow $ 500.0 $ 193.1 The carrying amounts of the facilities approximated fair value based upon Level 2 inputs as of each of the periods presented above. Interest on loans under the revolving credit facilities will be calculated at a rate per annum equal to an applicable margin - which can vary from 0.45% to 1.00% for both the 2014 Facility and the 2015 Facility based on the Company's leverage ratio, plus LIBOR for loans denominated in U.S. Dollars, EURIBOR for loans denominated in Euros, HIBOR for loans denominated in Hong Kong Dollars and SIBOR for loans denominated in Singapore Dollars, plus mandatory costs, if any. The revolving credit facilities contain terms and provisions (including representations, covenants and conditions) customary for credit agreements of this type. Our primary financial covenant is a leverage test which requires net indebtedness not to exceed three times adjusted four quarter trailing EBITDA. Additional financial covenants include an interest coverage test and a maximum subsidiary indebtedness test. The interest coverage test requires three times interest expense not to exceed adjusted four quarter trailing EBITDA. The maximum subsidiary indebtedness test limits the total aggregate amount of indebtedness of WABCO's subsidiaries, excluding indebtedness under the facilities, to $500 million under both the 2014 Facility and the 2015 Facility, of which not more than $150 million may be secured. All cash, cash equivalents and short-term investments on the balance sheet can be deducted for net indebtedness purposes. In addition, expenses and payments related to any streamlining of WABCO’s operations are excluded when calculating the four quarter trailing adjusted EBITDA. Other covenants include delivery of financial reports and other information, compliance with laws including environmental laws and permits, ERISA and U.S. regulations, limitations on liens, mergers and sales of assets and change of business. We were in compliance with all the covenants as of December 31, 2015 . Other Debt As of December 31, 2015 , the Company's various subsidiaries had borrowings from banks totaling $ 5.7 million , of which $0.7 million was classified as long-term debt. The remaining $5.0 million supports local working requirements. This is in comparison to $9.2 million as of December 31, 2014 , of which $1.1 million was classified as long-term debt. |
Warranties, Guarantees, Commitm
Warranties, Guarantees, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranties, Guarantees, Commitments and Contingencies | Warranties, Guarantees, Commitments and Contingencies Warranties Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of goods sold at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates and the allocation of warranty between short and long term are updated based upon the most current warranty claims information available. The following is a summary of changes in the Company’s product warranty liability for the years ended December 31, 2015 , 2014 and 2013 . Year Ended December 31, (Amounts in millions) 2015 2014 2013 Balance of warranty costs accrued, beginning of period $ 45.2 $ 51.6 $ 55.2 Warranty costs accrued 24.4 27.1 25.4 Warranty claims settled (24.3 ) (28.0 ) (30.5 ) Foreign exchange translation effects (4.4 ) (5.5 ) 1.5 Balance of warranty costs accrued, end of period $ 40.9 $ 45.2 $ 51.6 Current liability, included in current portion of warranties $ 23.1 $ 25.8 $ 29.8 Long-term liability, included in other liabilities $ 17.8 $ 19.4 $ 21.8 Warranty costs net of recoveries $ 24.4 $ 24.9 $ 21.4 Guarantees and Commitments Future minimum rental commitments under all non-cancelable operating leases with original terms in excess of one year in effect as of December 31, 2015 , are: $ 16.0 million in 2016 ; $ 14.2 million in 2017 ; $ 12.6 million in 2018 ; $ 11.9 million in 2019 ; $ 11.3 million in 2020 and $ 9.5 million thereafter, amounting to a total of $75.5 million . Net rental expense for all operating leases was $ 17.0 million , $ 20.4 million and $ 18.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company has bank guarantees for $ 46.9 million which is comprised of uncollateralized bank guarantees, of which $ 42.2 million is related to tax and other litigation, $ 0.7 million is related to letters of credit and $ 4.0 million is related to other items. Right of Recourse In the ordinary course of business, the Company may receive banker's acceptance drafts from customers in China in payment of outstanding accounts receivable. These banker's acceptance drafts are non-interest bearing obligations of the issuing bank and generally have contractual maturities of six months or less. The Company may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity date. As of December 31, 2015 and 2014 , the Company had approximately $18.0 million and $15.1 million , respectively, of banker's acceptance drafts subject to customary right of recourse provisions, which were transferred to vendors and had not reached their scheduled maturity date. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. Contingencies General We are subject to proceedings, lawsuits and other claims related to products and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable and reasonably possible losses. A determination of the amount of liability to be recorded, if any, for these contingencies is made after careful analysis of each individual issue. Other In conjunction with the Tax Sharing Agreement, as further discussed in Note 17, WABCO is responsible for certain tax and indemnification liabilities. These liabilities include probable indemnification liabilities to Trane of $0.7 million as of December 31, 2015 . It is reasonably possible that the Company could incur losses in excess of the amounts accrued. Although this amount cannot be estimated, we believe that any additional losses would not have a material adverse impact on the consolidated financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes and the applicable provision for income taxes were : Year Ended December 31, (Amounts in millions) 2015 2014 2013 Income before income taxes: Domestic $ 62.9 $ 49.8 $ 94.4 Foreign 234.6 307.0 546.5 $ 297.5 $ 356.8 $ 640.9 Provision/(benefit) for income taxes: Current: Domestic $ (22.0 ) $ 18.0 $ 11.4 Foreign 45.2 33.1 32.2 $ 23.2 $ 51.1 $ 43.6 Deferred: Domestic $ (3.0 ) $ 3.0 $ 101.7 Foreign (8.7 ) 1.5 (166.3 ) $ (11.7 ) $ 4.5 $ (64.6 ) Total provision/(benefit) $ 11.5 $ 55.6 $ (21.0 ) A reconciliation between the actual income tax expense provided and the income taxes computed by applying the statutory federal income tax rate of 35.0% in 2015 , 2014 and 2013 to the income before income taxes is as follows: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Tax provision at statutory rate $ 104.1 $ 124.9 $ 224.3 State income taxes 1.1 0.7 — Foreign earnings taxed at other than 35% (43.5 ) (61.1 ) (70.4 ) Increase/(decrease) in valuation allowance 4.5 (1.1 ) (261.9 ) Unremitted foreign earnings (5.9 ) (3.6 ) 107.4 Belgium Excess Profit Ruling (16.9 ) (20.9 ) (23.5 ) Tax (reversals)/contingencies (32.6 ) 3.3 (0.4 ) Equity compensation 3.8 4.8 4.4 Other, net (3.1 ) 8.6 (0.9 ) Total provision/(benefit) $ 11.5 $ 55.6 $ (21.0 ) The effective income tax rates for 2015 , 2014 and 2013 were 3.9% , 15.6% and (3.3)% , respectively. The income tax provision for 2015 includes the net result of taxes on the mix of earnings in multiple tax jurisdictions, the accrual of interest on uncertain tax positions, and certain foreign tax planning offset by tax benefits related to the settlement of a tax audit and the expiration of a statute of limitation. The Company continues to assert permanent reinvestment outside the U.S. with respect to the remainder of its foreign earnings and at this time, does not have any plans or needs to repatriate additional earnings from its foreign subsidiaries except for Brazil. The nature of the reconciling item "Foreign earnings taxed at other than 35%" is net of permanent differences including non-taxable income in foreign jurisdictions, foreign tax credits and rulings, resulting in a net tax benefit. Management has determined that it is more likely than not that it will not realize $13.5 million of its deferred tax assets in other foreign jurisdictions since evidence such as historical operating profits resulted in a lack of taxable earnings during the most recent three-year period ended December 31, 2015 , the lack of projected earnings and an arbitration claim related to tax deductions taken in a previous year provided sufficient negative evidence to record a valuation allowance against such deferred tax assets related to carryforwards for net operating losses. In 2014, the income tax provision includes the net result of taxes on the mix of earnings in multiple tax jurisdictions, the accrual of interest on uncertain tax positions, and certain foreign tax planning. Furthermore, in 2014, the Company recorded a tax charge of $3.6 million primarily related to various income tax filings and changes in the Company's recorded tax liabilities with respect to undistributed foreign earnings due to the Company's decision to repatriate on a non-recurring basis $15.1 million of accumulated foreign earnings of its Korean affiliate. In 2013, the income tax benefit includes taxes on earnings in profitable jurisdictions, income offset by fully valued net operating losses, the accrual of interest on uncertain tax positions, and a tax provision on unremitted foreign earnings of $300.0 million in a Belgian affiliate for which the Company does not assert permanent reinvestment outside the United States. Additionally, the tax provision is offset by the release of a valuation allowance of $ 178.4 million related to management’s determination that it is more likely than not that the Company will realize its deferred tax asset in a foreign jurisdiction. Furthermore, the Company also recognized a tax benefit of $2.4 million due to the impact of U.S. tax legislation enacted in January 2013 and a tax benefit of $2.4 million related to the Company's filing of its 2012 U.S. Federal Income Tax Return in September 2013. Additionally in 2013, the Company recorded a tax provision related to unremitted foreign earnings of $300.0 million in a Belgian affiliate for which the Company does not assert permanent reinvestment outside the United States. This assertion is resulting from the Company recognizing earnings in the fourth quarter of €209.8 million from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC Fine. The approximate dollar and diluted earnings per share amounts of tax reductions related to tax holidays and incentive tax credits in various countries in which the Company does business were $ 11.4 million and $ 0.20 in 2015 , $ 15.6 million and $ 0.26 in 2014 and $ 7.8 million and $ 0.12 in 2013 , respectively. The tax holidays and incentive tax credits expire at various dates through 2026. The following table details the gross deferred tax liabilities and assets and the related valuation allowances: Year Ended December 31, (Amounts in millions) 2015 2014 Deferred tax liabilities: Basis difference in noncontrolling interest $ 9.4 $ 10.5 Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) 14.4 19.0 Unremitted foreign earnings 97.0 103.3 Intangibles 16.3 16.8 $ 137.1 $ 149.6 Deferred tax assets: Foreign net operating losses and tax credits $ 136.0 $ 170.1 Post-retirement and other employee benefits 101.5 105.4 Intangibles 46.8 34.0 Inventory 0.6 1.1 Warranties 1.7 1.6 Other 7.7 6.7 $ 294.3 $ 318.9 Valuation allowances (13.5 ) (9.0 ) Net deferred tax assets $ 143.7 $ 160.3 As of December 31, 2015 , the Company has $ 360.0 million of net operating loss carry forwards (NOLs) available for utilization in future years. Approximately $ 335.1 million of such NOLs have an unlimited life and the remainder is available for periods of up to 7 years. The NOLs primarily consist of NOLs inherited by WABCO upon separation from Trane and losses incurred in post-spin years. As of December 31, 2015 , the Company has provided a valuation allowance of $ 1.6 million representing the value of the associated deferred tax assets with regard to $ 24.9 million of NOLs and tax credits available for up to 7 years. Management has determined that it is more likely than not that it will not realize $ 13.5 million of its deferred tax assets in other foreign jurisdictions and has recorded a valuation allowance against such deferred tax assets as discussed above. Unrecognized tax benefits as of December 31, 2015 amounted to $ 16.3 million which is classified as a long-term liability and the Company is currently unable to estimate the timing of potential amounts to be paid. There are no material unrecognized tax benefits related to WABCO obligations directly to tax authorities for Trane’s Bath & Kitchen business as further discussed in Note 17. Interest related to unrecognized tax benefits recorded in the 2015 , 2014 and 2013 consolidated statements of operations were $ 0.3 million , $ 1.0 million and $ 0.3 million , respectively. Total accrued interest as of December 31, 2015 , 2014 and 2013 was approximately $ 1.7 million , $ 7.0 million and $ 6.0 million , respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows (exclusive of interest): Year Ended December 31, (Amounts in millions) 2015 2014 2013 Beginning balance, January 1 $ 41.5 $ 39.3 $ 41.9 Additions for tax positions related to current year 5.1 2.2 — Additions for tax positions related to prior years — 25.8 1.2 Reductions for tax positions related to prior years (27.3 ) — — Cash settlements (2.3 ) — (2.0 ) Expirations of statute of limitations (2.4 ) (25.8 ) (2.0 ) Foreign exchange — — 0.2 Ending balance, December 31 $ 14.6 $ 41.5 $ 39.3 During 2015, the Company reversed $32.0 million of unrecognized tax benefits due to the settlement of a U.S. tax audit and the expiration of a statute of limitation. In 2014, the Company reversed $ 25.8 million of unrecognized tax benefits due to the expiration of a statute of limitation. This expiration also had a correlative impact on other unrecognized tax benefits which resulted in the Company recording an unrecognized tax benefit of $ 25.8 million (excluding penalties and interest) during 2014. In 2013, the reversal of $4.0 million during the year relates to the settlement of certain US state tax exposures and the expiration of statutes of limitations in certain foreign jurisdictions As of December 31, 2015 , 2014 and 2013 , there were $14.6 million , $41.5 million and $39.3 million of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate. We conduct business globally and, as a result, WABCO or one or more of our subsidiaries file income tax returns in the U.S. federal, state and local, and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as Belgium, Brazil, China, France, Germany, India, the Netherlands, Poland, the United Kingdom and the United States. With no material exceptions, the Company is no longer subject to examinations by tax authorities for years before 2009. The Company is currently under examination in the United States for tax years 2013 and 2014. As a result of the allocation of purchase accounting (principally goodwill) to foreign subsidiaries, the book basis in the net assets of the foreign subsidiaries exceeds the related U.S. tax basis in the subsidiaries' stock. Such investments are considered permanent in duration and accordingly, no deferred taxes have been provided on such differences, which are significant. The Company considers the earnings of substantially all of its foreign subsidiaries to be permanently reinvested outside the United States due to operational, strategic and other needs to support the growth of the Company and as such, no deferred tax liability has been provided. However, the Company has provided for tax at the U.S. tax rate for its Brazilian affiliate's current year earnings in 2015. The Company continues to assert permanent reinvestment outside the U.S. with respect to the remainder of its foreign earnings and at this time, does not have any plans or needs to repatriate additional earnings from its foreign subsidiaries except for Brazil. In addition, as discussed above, due to the receipt in the fourth quarter of 2013 of an exceptional refund including interest from the European Commission that increased earnings beyond these operational, strategic and other needs outside the United States, the Company recorded a tax provision for $300.0 million of its Belgian affiliate’s earnings for which the Company does not assert permanent reinvestment outside the United States. The Company estimates the amount of its permanently reinvested unremitted foreign earnings to be approximately $ 990 million as of December 31, 2015 , however, it is not practicable to estimate the tax liability that would arise if the earnings that are considered permanently reinvested were remitted to the United States. |
Tax and Indemnification Liabili
Tax and Indemnification Liabilities Transferred from Trane to WABCO | 12 Months Ended |
Dec. 31, 2015 | |
Tax And Indemnification Liabilities [Abstract] | |
Tax and Indemnification Liabilities Transferred from Trane to WABCO | Tax and Indemnification Liabilities Transferred from Trane to WABCO Pursuant to the Tax Sharing Agreement between Trane and WABCO, entered into on July 16, 2007, and other agreements with Trane as filed in WABCO’s Form 10 prior to its spin-off from Trane, WABCO is responsible for certain tax contingencies and indemnification liabilities. As of December 31, 2015 , the Company had probable indemnification liabilities of $ 0.7 million , compared to $4.5 million as of December 31, 2014 , all of which are classified within long-term liabilities on the balance sheet. It is reasonably possible that the Company could incur losses in excess of the amounts accrued. Although this amount cannot be estimated, we believe that any additional losses would not have a material adverse impact on the consolidated financial statements. For the years ended December 31, 2015 , 2014 and 2013 , approximately $1.2 million , $4.3 million and $8.8 million of indemnification liabilities were reversed, respectively, due to the settlement of foreign tax audits and expiration of statutes of limitations. We also paid indemnification liabilities of $ 2.8 million during 2015 in relation to the above. Under an indemnification agreement, WABCO Brazil is responsible for certain claims related to its business for periods prior to the spin-off of WABCO from American Standard. In particular, there are tax claims pending in various stages of the Brazilian legal process related to income, social contribution and/or value added taxes for which a contingency exists and which may or may not ultimately be incurred by the Company. The estimated total amount of the claims as of December 31, 2015 was $ 26.5 million including interest. However, based on management’s assessment and advice of our external legal counsel, the Company believes that it has valid arguments in all of these cases and the likelihood of loss is not probable and thus no accrual is required at this time. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Investments in and Advances to Unconsolidated Joint Ventures WABCO has three investments in affiliates that are accounted for under the equity method. The first of these investments is in Meritor WABCO. Meritor WABCO, in which WABCO has a 50% equity ownership, markets braking systems products and sells the majority of WABCO products in the United States. The second of these investments is in WABCO Automotive South Africa (WABCO SA). WABCO SA, in which WABCO has a 49% equity ownership, is a distributor of breaking systems products and sells WABCO products primarily in South Africa. The third investment is in WABCOWURTH Workshop Services GmbH (WABCOWURTH). WABCOWURTH, in which WABCO has a 50% equity ownership, supplies commercial vehicle workshops, fleet owners and operators and end users internationally with its multi-brand technology diagnostic system. As of December 31, 2015 , WABCO has net investments in and advances to Meritor WABCO of $ 20.3 million , WABCO SA of $ 3.5 million and WABCOWURTH of $ 0.4 million . WABCO received dividends from the joint ventures of $ 27.5 million , $ 23.4 million and $ 18.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (Amounts in millions) WABCO Sales to WABCO Purchases from Joint Venture 2015 2014 2013 2015 2014 2013 Meritor WABCO $ 228.7 $ 218.7 $ 176.0 $ — $ 0.7 $ — WABCO SA 4.8 4.5 5.7 3.9 — — WABCOWURTH 0.2 0.2 0.2 0.2 0.3 0.3 (Amounts in millions) WABCO Receivables from WABCO Payables to Joint Venture 2015 2014 2015 2014 Meritor WABCO $ 35.6 $ 32.0 $ 0.2 $ — WABCO SA 1.6 1.1 — — WABCOWURTH — — — — Consolidated Joint Ventures WABCO has three fully consolidated joint ventures as of December 31, 2015 . The first of these joint ventures is in Japan with Sanwa-Seiki where the joint venture distributes WABCO's products in the local market. WABCO's ownership interest in the joint venture with Sanwa-Seiki is 90% . The second joint venture is in the United States with Cummins Engine Co. (Cummins), a manufacturing partnership formed to produce air compressors designed by WABCO. WABCO's ownership interest in the joint venture with Cummins is 70% . The third joint venture is with Guangdong FUWA Heavy Industry Co., Ltd., (FUWA) to produce air disc brakes for commercial trailers in China. FUWA is the largest manufacturer of commercial trailer axles in China and in the world. WABCO's ownership interest in the joint venture with FUWA is 70% . (Amounts in millions) WABCO Sales to WABCO Purchases from Joint Venture 2015 2014 2013 2015 2014 2013 Sanwa-Seiki $ — $ — $ — $ 25.7 $ 31.3 $ 33.7 Cummins 88.7 86.0 72.9 — — — FUWA 7.1 6.3 3.0 — — — |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information WABCO is a fully integrated global business with management structures established in a variety of ways, including around products, distribution channels and key customers. Our largest customer is Daimler, which accounted for 10% , 11% and 12% of our sales in 2015 , 2014 and 2013 , respectively. Volvo, our next largest customer, accounted for 8% of our sales in 2015 and 10% in 2014 and 2013 . WABCO's plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company's chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment. European sales for the years ended December 31, 2015 , 2014 and 2013 accounted for 56% , 59% and 61% of total sales, respectively. Asian sales for the years ended December 31, 2015 , 2014 and 2013 accounted for 22% , 19% and 18% of total sales, respectively. We are strongly rooted in China and India and have achieved a leading position in the marketplace through increasingly close connectivity to customers. We continue to be strengthened in Asia by an outstanding network of suppliers, manufacturing sites and engineering hubs. Geographic Data Year Ended December 31, (Amounts in millions) 2015 2014 2013 Product Sales: OEM $ 1,949.8 $ 2,099.4 $ 2,043.5 Aftermarket 677.7 751.6 677.0 Sales - Geographic distribution (a): United States $ 437.1 $ 383.5 $ 296.2 Europe (countries below are included in this total) 1,464.3 1,668.5 1,666.3 Germany 588.3 698.7 731.3 France 83.9 89.8 99.5 Netherlands 96.1 101.0 96.6 Sweden 176.4 206.8 215.4 Other (countries below are included in this total) 726.1 799.0 758.0 Japan 93.9 105.4 100.5 China 233.9 221.8 192.6 Brazil 73.7 156.7 180.9 India 168.8 127.1 106.1 Total sales $ 2,627.5 $ 2,851.0 $ 2,720.5 (a) Sales to external customers are classified by country of destination. As of December 31, (Amounts in millions) 2015 2014 2013 Long-lived Assets (b) Geographic distribution: United States $ 46.2 $ 22.0 $ 20.2 Europe (countries below are included in this total) 660.2 727.4 655.7 Germany 268.9 284.9 323.7 Poland 130.0 127.6 110.8 Other (countries below are included in this total) 191.6 212.5 213.5 India 95.0 97.2 97.7 China 61.6 66.0 68.3 Total long-lived assets $ 898.0 $ 961.9 $ 889.4 (b) Amounts are presented on a net basis |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities ASC 815, Derivatives and Hedging , requires a company to recognize all of its derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies and has been designated as a relationship hedge. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. The Company recognizes all derivative financial instruments in the consolidated balance sheets at fair value using Level 2 inputs and these are classified as “other current assets,” “other assets,” “other accrued liabilities” or “other liabilities” on the consolidated balance sheets. Level 2 inputs used by the Company in valuing its derivative instruments include model-based valuation techniques for which all significant assumptions are observable in the market. The earnings impact resulting from changes in the fair value of derivative instruments is recorded in the same line item in the consolidated statements of operations as the underlying exposure being hedged or in accumulated other comprehensive income (AOCI) for derivatives that qualify and have been designated as cash flow hedges or hedges of a net investment in a foreign operation. Any ineffective portion of a financial instrument's change in fair value is recognized in earnings together with changes in the fair value of any derivatives not designated as relationship hedges. During the first quarter of 2015, the Company entered into and settled treasury rate lock agreements which were designated as cash flow hedges in anticipation of issuing the Senior Notes as discussed in Note 14. A loss related to these cash flow hedges of $1.3 million , net of taxes of $0.7 million , has been recognized in other comprehensive income for the year ended December 31, 2015 . The related amount of hedge ineffectiveness was immaterial. The amount of unrealized loss reclassified to earnings for the year ended December 31, 2015 was $0.1 million . Foreign exchange contracts are used by the Company to offset the earnings impact relating to the variability in exchange rates on certain assets and liabilities denominated in non-functional currencies and have not been designated as relationship hedges. As of December 31, 2015 and 2014 , respectively, forward contracts for an aggregate notional amount of €107.7 million ( $117.7 million at December 31, 2015 exchange rates) and €77.8 million ( $94.5 million at December 31, 2014 exchange rates) were outstanding with an average duration of one month. The majority of these exchange contracts were entered into on December 30, 2015 . The fair value of the derivatives was immaterial as of December 31, 2015 and 2014 . For the years ended December 31, 2015 and 2014 , the Company recognized net gains on its derivative instruments of $6.0 million and $2.2 million , respectively. When combined with the revaluation of assets and liabilities, these foreign exchange contracts resulted in net non-operating gains of $0.3 million and $0.1 million , respectively. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On February 12, 2014, WABCO Europe BVBA (WABCO Europe), a Belgian subsidiary of the Company, entered into a stock purchase agreement (the Agreement) to purchase all of the outstanding shares of Tavares NV (Tavares), a limited liability company incorporated under the laws of Belgium, for a cash purchase price of €111.1 million ( $151.0 million based on exchange rates on the acquisition date). This included the acquisition of €15.3 million of net cash held by its subsidiary Transics International NV (Transics), resulting in net consideration of €95.8 million ( $130.2 million based on exchange rates on the acquisition date). At the date of acquisition, Tavares held 96.84% of the outstanding shares of Transics, a limited liability company incorporated under the laws of Belgium listed on NYSE Euronext Brussels. Transics develops and markets fleet management solutions to help commercial vehicle manufacturers and fleet operators to more efficiently and safely manage their trucks and trailers. The suite of innovative solutions offered by Transics helps to improve fuel efficiency and productivity while lowering operating costs. The allocation of the total purchase price to the assets and liabilities assumed as of the acquisition date is summarized as follows: (Amounts in millions) Cash and cash equivalents $ 25.3 Trade receivables 15.6 Trade payables (5.4 ) Debt (4.5 ) Deferred tax liabilities (13.9 ) Property, plant and equipment 3.5 Intangible assets 51.1 Other assets purchased and liabilities assumed, net (6.6 ) Identifiable net assets acquired $ 65.1 Goodwill 91.6 Noncontrolling interest (5.7 ) Total purchase price allocation $ 151.0 The intangible assets include amounts recognized for the fair value of trade name and customer-based and technology-related assets. The fair values of the intangible assets and noncontrolling interest were determined based on an income and cost approach. The intangible assets are being amortized over a weighted-average useful life of approximately 6 years, the majority of which is not deductible for tax purposes. The goodwill generated is primarily attributable to expected synergies and is not deductible for tax purposes. The transaction-related costs were expensed as incurred and are recorded within other non-operating expense. On April 10, 2014, in connection with the acquisition of Tavares, WABCO Europe launched a mandatory public takeover bid on all remaining shares and warrants issued by Transics in accordance with applicable Belgian takeover rules. Immediately following the initial acceptance period of the public bid, WABCO Europe launched a squeeze-out procedure that closed on May 16, 2014 for an additional payment of €4.2 million ( $5.7 million based on exchange rates on the acquisition date), resulting in WABCO Europe directly and indirectly owning all shares and warrants in Transics for a total net consideration of €99.9 million ( $135.9 million based on exchange rates on the acquisition date). The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented and as a result, no pro forma financial statements have been presented. |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests On April 10, 2014, in connection with the acquisition of Tavares, WABCO Europe launched a mandatory public takeover bid on all remaining shares and warrants issued by Transics in accordance with applicable Belgian takeover rules. Immediately following the initial acceptance period of the public bid, WABCO Europe launched a squeeze-out procedure that closed on May 16, 2014. Net consideration paid as a result of the squeeze-out amounted to $5.7 million . See Note 21 for further discussion of the acquisition. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Income Taxes The Belgian Tax Code contains provisions to reduce the taxable base of companies, through rulings granted by the Belgian Government under the excess profit ruling program (EPR Program). On January 11, 2016, the European Commission ruled that the above provision of Belgian law is illegal and incompatible with European State Aid law (“Decision”). As a result, the European Commission requires Belgium to stop applying the EPR Program and to recover all past tax benefits received by applicable companies under the program (i.e. a “clawback”). The clawback amount may be reduced by applying other forms of relief which would have been available to companies during the period they participated in the EPR Program. Negotiations are ongoing between the Belgian Government and the European Commission to agree on a methodology to calculate the applicable amounts for each company. WABCO has participated in the EPR Program since 2012. As a result of the Decision, the Company’s effective tax rate will likely increase in 2016 and beyond. The extent of such increase is dependent on many factors, including the ultimate amount of the clawback (which would impact the amount of net operating losses we would have available to us in future years to offset taxable income), the availability of alternative tax relief (both, by re-filing tax returns for prior periods to reduce the amount of the clawback, and for current and future periods to reduce the tax provision in Belgium), the mix of profits and losses between jurisdictions where we operate, as well as any other strategic decisions we may pursue. However, WABCO does not in any case expect the recognition of tax expense due to the clawback to result in any cash taxes for 2015 or prior years due to the availability of net operating losses. We are exploring all paths to mitigate the potential increase to our effective tax rate, including litigation to challenge the Decision of the European Commission (as discussed below), eligibility for other alternative tax relief, or pursuing other strategic alternatives. The Decision may be appealed before the General Court of the European Union (“General Court”) by the Belgian Government and by companies which are directly affected by the Decision. We understand that the Belgian government is considering an appeal. We perceive that the Decision is flawed and that there are strong arguments which could justify an appeal by WABCO as well. WABCO’s position is supported by other State Aid decisions of the European Commission which have been annulled upon successful appeal before the General Court. The European Commission has noted that affected companies, like WABCO, may take advantage of alternative tax relief that may have been available to them during any of the years that they relied on the EPR Program and re-file tax returns claiming applicable benefits. We are currently assessing the extent to which we are eligible to claim such alternative tax relief for the prior periods subject to clawback, as well as for the current and future years. Acquisitions On February 1, 2016 , the Company acquired MICO, Inc. (MICO) for a purchase price of $74.5 million , which included the acquisition of $7.3 million of net cash. MICO manufactures and markets hydraulic components, controls and brake systems for heavy-duty, off-highway vehicles in agriculture, construction, mining and similar industries. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) Year 2015 (Amounts in millions) First Second Third Fourth Sales $ 652.2 $ 661.1 $ 643.6 $ 670.6 Cost of sales 438.6 453.6 479.0 470.8 Gross profit 213.6 207.5 164.6 199.8 Income before income taxes 93.3 86.8 36.1 81.3 Income tax expense/(benefit) 18.5 18.5 (5.2 ) (20.3 ) Net income attributable to Company $ 71.9 $ 65.8 $ 38.8 $ 98.7 Net income per common share Basic $ 1.23 $ 1.13 $ 0.67 $ 1.73 Diluted $ 1.22 $ 1.12 $ 0.67 $ 1.71 Year 2014 (Amounts in millions) First Second Third Fourth Sales $ 729.5 $ 735.0 $ 707.3 $ 679.1 Cost of sales 511.6 505.3 487.3 474.9 Gross profit 217.9 229.7 220.0 204.2 Income before income taxes 87.7 95.8 94.0 79.3 Income tax expense 15.8 17.9 9.5 12.4 Net income attributable to Company $ 69.4 $ 75.0 $ 82.0 $ 65.1 Net income per common share Basic $ 1.13 $ 1.24 $ 1.38 $ 1.11 Diluted $ 1.12 $ 1.23 $ 1.37 $ 1.10 The sum of each value line for the four quarters does not necessarily equal the amount reported for the full year because of rounding. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2015 , 2014 and 2013 (Amounts in thousands) Description Balance Beginning of Period Additions Charged to Expense Deductions Other Additions (a) Foreign Currency Translation Effects Balance End of Period 2015: Reserve deducted from assets: Allowance for doubtful accounts receivable 5,524 974 (159 ) — (444 ) 5,895 2014: Reserve deducted from assets: Allowance for doubtful accounts receivable 4,999 384 (817 ) 1,463 (505 ) 5,524 2013: Reserve deducted from assets: Allowance for doubtful accounts receivable 3,581 1,346 (66 ) — 138 4,999 (a) Relates to allowances for doubtful accounts receivable assumed through the acquisition of Tavares as discussed in Note 21 of Notes to the Consolidated Financial Statements. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates - The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes the most complex and sensitive judgments, because of their significance to the condensed consolidated financial statements, result primarily from the need to make estimates about the effects of matters that are inherently uncertain. Actual results could differ from those estimates. Some of the most significant estimates included in the preparation of the consolidated financial statements are related to allowance for doubtful accounts, inventory reserves, goodwill, warranties, post-retirement benefits, income taxes and stock-based compensation. Allocation methods are described in the notes to these consolidated financial statements where appropriate. |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation - All majority owned or controlled subsidiaries of WABCO are included in the consolidated financial statements and intercompany transactions are eliminated upon consolidation. WABCO investments in unconsolidated joint ventures are included at cost plus its equity in undistributed earnings in accordance with the equity method of accounting and reflected as investments in unconsolidated joint ventures in the consolidated balance sheets. Certain amounts in the prior years' consolidated financial statements have been reclassified to conform to the current year presentation. |
Foreign Currency Translation | Foreign Currency Translation - Adjustments resulting from translating foreign functional currency assets and liabilities into U.S. Dollars at exchange rates in effect as of the balance sheet date, and income and expense accounts at the average exchange rates in effect during the period, are recorded in a separate component of shareholders' equity as accumulated other comprehensive income. Gains or losses resulting from transactions in other than the functional currency are reflected in the consolidated statements of operations as part of other non-operating income or expense, except for intercompany transactions of a long-term investment nature where the foreign exchange gains or losses from the remeasurement of such intercompany transactions is recorded within accumulated other comprehensive income. |
Revenue Recognition | Revenue Recognition - Sales of products are recorded when (i) title and risk of loss have transferred to the customer, (ii) persuasive evidence of an arrangement exists with the customer, (iii) the sales price is fixed and determinable, and (iv) the collectability of the sales price is reasonably assured. Amounts billed to customers for shipping and handling costs are included in sales. Certain of the Company's product offerings contain multiple deliverables including hardware with embedded firmware, back office hosting services, unspecified software upgrades and enhancements related to these products through service contracts, which are considered separate units of accounting. For products under these arrangements, the software and non-software components function together to deliver the tangible product’s essential functionality. The Company allocates revenue to each element in these multiple-element arrangements based upon the relative selling prices of each deliverable. In evaluating the revenue recognition for the Company's multiple-element arrangements, the Company determined that in certain cases, vendor specific objective evidence (VSOE) of selling price could not be established for some or all deliverables in the arrangement as the Company infrequently sold each element on a standalone basis, did not price products within a narrow range, or had a limited sales history. When VSOE cannot be established for an element, the Company attempts to establish the selling price of the element using third-party evidence (TPE) based on competitor prices for similar deliverables sold separately. However, the Company is typically not able to establish TPE as we are unable to reliably determine the standalone selling prices of similar competitor products. When neither VSOE nor TPE can be established for an element, the Company uses its best estimate of selling price (BESP) in the allocation of arrangement consideration. BESP represents the price at which the Company would transact a sale if the element were sold on a standalone basis. The Company determines BESP for an element by considering multiple factors including, but not limited to, the Company's go-to-market strategy, pricing practices, internal costs, gross margin, market conditions and geographies. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for that element. The Company typically records cooperative advertising allowances, rebates and other forms of sales incentives as a reduction of sales at the later of the date of the sale or the date the incentive is offered. For these costs, the Company recorded $ 43.2 million , $ 43.0 million and $ 42.4 million in 2015 , 2014 and 2013 , respectively, in the accompanying consolidated statements of operations. In most countries where WABCO operates, sales are subject to VAT taxes. Sales are presented net of VAT in the consolidated statements of operations. |
Shipping and Handling Costs | Shipping and Handling Costs - Shipping, handling, receiving, inspecting, warehousing, internal transfer, procurement and other costs of distribution are included in cost of sales in the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents - Cash equivalents include all highly liquid investments with maturity of three months or less when purchased. The Company classifies cash and cash equivalents that are restricted from operating use for the next twelve months as restricted cash. Amounts restricted for longer than twelve months are classified as other assets. When restrictions are no longer in place, the amounts are reclassified to cash and cash equivalents. |
Available for Sale Investments | Available-for-Sale Investments - Investments may consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The investments are classified as available-for-sale and are recorded in the consolidated financial statements at market value with changes in market value included in other comprehensive income. The Company classifies its investments as either short-term or long-term based on the nature of the investments, its availability of use in current operations and the Company's holding intention. The fair value of the investments is determined based on readily available pricing sources for identical instruments in less active markets (Level 2). In the event the investments experience an other-than-temporary impairment in value, such impairment is recognized as a loss in the consolidated statements of operations. As of December 31, 2015 , the Company had $43.8 million of short-term investments as well as $2.7 million of long-term investments |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts - The Company performs ongoing credit evaluations on its customers. In determining the allowance for doubtful accounts, on a monthly basis, WABCO analyzes the aging of accounts receivable, historical bad debts, customer creditworthiness, availability of credit insurance and current economic trends. |
Transfers of Financial Instruments | Transfers of Financial Instruments - The Company accounts for sales and transfers of financial instruments under ASC 860, Transfers and Servicing . ASC 860 states that a transfer of financial assets (either all or a portion of a financial asset) in which the transferor surrenders control over those financial assets shall be accounted for as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in exchange. The Company may sell receivables to the bank which qualify as financial assets since they are associated with the sale of products by the subsidiaries of the Company and accepted by the Company's customers in the ordinary course of business. Where such receivables sold to the bank, the risks of collection of such receivables reside with the bank. Therefore, upon sale of the receivables to the bank, the appropriate reversal of any applicable accounts receivable allowances is recorded by the Company. |
Inventory Reserves | Inventory Reserves - Inventory costs are determined by the use of the last-in, first-out (LIFO) method, and are stated at the lower of such cost or market. The LIFO method is used as it provides a better matching of the costs to the sales. Inventories are categorized as finished products, products-in-process and raw materials. On a quarterly basis, the Company tests its inventory for slow moving and obsolete stock by considering both the historical and expected sales and the Company will record a provision, if needed. |
Property, Plant & Equipment | Property, Plant & Equipment - Property, plant and equipment balances, including tooling, are stated at cost less accumulated depreciation. WABCO capitalizes costs, including interest during construction of fixed asset additions, improvements, and betterments that add to productive capacity or extend the asset life. WABCO assesses facilities for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Maintenance and repair expenditures are expensed as incurred. Depreciation and amortization are computed on the straight-line method based on the estimated useful life of the asset or asset group, which are 40 years for buildings, 3 to 5 years for tooling and 5 to 15 years for machinery and equipment. |
Computer Software Costs | Software Costs - WABCO capitalizes the costs of obtaining or developing internal-use computer software, including directly related payroll costs. The Company amortizes those costs on a straight-line basis over periods of up to seven years, beginning when the software is ready for its intended use. The Company assesses capitalized software costs for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. |
Equity and Cost Method Investments | Equity and Cost Method Investments - We have investments that are accounted for using the equity method. Our proportionate share of income or losses from investments accounted for under the equity method is recorded in the consolidated statements of operations. We write down or write off an investment and recognize a loss when events or circumstances indicate there is impairment in the investment that is other-than-temporary. This includes assessing the investees’ financial condition as well as the investees’ historical and projected results of operations and cash flows. If the actual outcomes for the investees are significantly different from projections, we may incur future charges for the impairment of these investments. Our investment in equity method investees was $24.7 million and $19.6 million at December 31, 2015 and 2014 , respectively, net of our proportionate share of the results of their operations and dividends received. Investments for which we do not have significant influence are accounted for under the cost method. The aggregate balance of these investments was $20.0 million at December 31, 2015 . There were no such investments outstanding at December 31, 2014 . |
Goodwill | Goodwill - The Company has a significant amount of goodwill on its balance sheet that is not amortized, but subject to impairment tests each fiscal year on October 1 or more often when events or circumstances indicate that the carrying amount of goodwill may not be recoverable. The Company's impairment tests utilize the two-step approach. The first step of the goodwill impairment test compares fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and thus the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The recoverability of goodwill is measured based on one reporting unit for the total Company. Our plants, engineering, technical support, distribution centers and other support functions are shared among various product families and serve all distribution channels with many customers. Based on the organizational structure, as well as the nature of financial information available and reviewed by the Company's chief operating decision maker to assess performance and make decisions about resource allocations, the Company has concluded that its total WABCO operations represent one reportable segment. In order to approximate the fair value of the reporting unit for purposes of testing recoverability, we use the total market capitalization of the Company, a market approach, which is then compared to the total book value of the Company. In the event the Company's fair value has fallen below book value, the Company will compare the estimated fair value of goodwill to its book value. If the book value of goodwill exceeds the estimated fair value of goodwill, the Company will recognize the difference as an impairment loss in operating income. |
Other Intangible Assets with Determinable Lives | Other Intangible Assets with Determinable Lives - Other intangible assets with determinable lives consist of customer and distribution relationships, patented and unpatented technology, in-process research and development, and other intangibles and are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 15 years. WABCO assesses intangible assets for impairment when events or circumstances indicate that the carrying amount of these assets may not be recoverable. |
Warranties | Warranties - Products sold by WABCO are covered by a basic limited warranty with terms and conditions that vary depending upon the product and country in which it was sold. The limited warranty covers the equipment, parts and labor (in certain cases) necessary to satisfy the warranty obligation generally for a period of two years. Estimated product warranty expenses are accrued in cost of sales at the time the related sale is recognized. Estimates of warranty expenses are based primarily on warranty claims experience and specific customer contracts. Warranty expenses include accruals for basic warranties for product sold, as well as accruals for product recalls, service campaigns and other related events when they are known and estimable. To the extent WABCO experiences changes in warranty claim activity or costs associated with servicing those claims, its warranty accrual is adjusted accordingly. Warranty accrual estimates are updated based upon the most current warranty claims information available. |
Post-retirement Benefits | Post-retirement Benefits - All post-retirement benefits are accounted for on an accrual basis using actuarial assumptions. Post-retirement pension benefits are provided for substantially all employees of WABCO, both in the United States and abroad through plans specific to each of WABCO's legal entities. In addition, in the United States, certain employees receive post-retirement health care and life insurance benefits. The impact of Health Care Reform legislation in the United States is immaterial to the Company. The costs of the benefits provided through plans of WABCO are included in the accompanying consolidated financial statements and summarized in detail along with other information pertaining to these plans in Note 13. Plans are primarily concentrated in the United Kingdom, Austria, Germany, and Switzerland. WABCO is also required to measure a defined benefit post-retirement plan's assets and obligations that determine its funded status as of the end of the employer's fiscal year, and recognize changes in the funded status of a defined benefit post-retirement plan in comprehensive income in the year in which the changes occur. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments - Financial instruments consist mainly of cash, accounts receivable, accounts payable and loans payable to banks. As of December 31, 2015 and 2014 , the carrying amounts of these instruments approximated their fair values. Long-term debt also approximated fair value as of December 31, 2015 and 2014 . |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities - The Company recognizes all derivative financial instruments in the consolidated financial statements at fair value. Changes in the fair value of derivative financial instruments which qualify for hedge accounting are recorded as an offset to the changes in fair value of the underlying hedged item and are included in other non-operating expense, net or other operating expense, net. |
Research, Development and Engineering Expenses | Research, Development and Engineering Expenses - Research and development costs are expensed as incurred. |
Business Combinations | Business Combinations - We allocate the fair value of purchase consideration to the assets acquired, liabilities assumed, and non-controlling interests in the acquiree generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed and non-controlling interests in the acquiree is recorded as goodwill. When determining the fair values of assets acquired, liabilities assumed, and non-controlling interests in the acquiree, management makes significant estimates and assumptions, especially with respect to intangible assets. Critical estimates in valuing intangible assets include, but are not limited to, expected future cash flows, which includes consideration of future growth rates and margins, attrition rates, future changes in technology and brand awareness, loyalty and position, and discount rates. Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available. |
Income Taxes | Income Taxes - Deferred income taxes are determined on the liability method, and are recognized for all temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. No provision is made for U.S. income taxes applicable to undistributed earnings of foreign subsidiaries that are permanently reinvested, except for Brazil's current year earnings and $300.0 million of unremitted foreign earnings related to a Belgian affiliate resulting from the receipt of an exceptional refund including interest from the European Commission related to the Company’s appeal of the EC fine. A tax position is a position in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities. Tax positions are recognized only when it is more likely than not (likelihood of greater than 50% ) based on technical merits, that the position will be sustained upon examination. Tax positions that meet the more likely than not threshold are measured using a probability weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Tax positions are not permitted to be recognized, derecognized, or remeasured due to changes subsequent to the balance sheet date, but prior to the issuance of the financial statements. Rather, these changes are recorded in the period the change occurs with appropriate disclosure of such subsequent events, if significant. We record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more likely than not to be realized. We calculate this valuation allowance in accordance with the provisions of ASC 740, Income Taxes which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets, when measuring the need for a valuation allowance. While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance, in the event we were to determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to decrease the net deferred tax assets would be charged to income in the period such determination was made. Likewise, should we determine that we would be able to realize our deferred tax assets in the future in excess of our net recorded amount, an adjustment to increase the net deferred tax assets would increase income in the period such determination was made. |
Earnings Per Share | Earnings Per Share - Basic net income per share has been computed using the weighted average number of WABCO common shares outstanding. The average number of outstanding shares of common stock used in computing diluted net income per share includes weighted average incremental shares when the impact is not anti-dilutive. The weighted average incremental shares represent the net amount of shares the Company would issue upon the assumed exercise of in-the-money stock options and vesting of restricted stock units (RSUs) and deferred stock units (DSUs) after assuming that the Company would use the proceeds from the exercises to repurchase stock. The weighted average incremental shares also includes the net amount of shares issuable for performance stock units (PSUs) at the end of the reporting period, if any at all, based on the number of shares issuable if the end of the period were the end of the vesting period. Anti-dilutive shares, if applicable, are excluded and represent those options, RSUs, PSUs and DSUs whose assumed proceeds were greater than the average price of the Company's common stock. |
Comprehensive Income / (Loss) | Comprehensive Income/(Loss) - Comprehensive income/(loss) consists of net income, foreign currency translation adjustments (including that on intercompany transactions of a long-term investment nature), pension liability adjustments, unrecognized gains or losses on post-retirement benefit plans, unrecognized gains or losses on investments and unrecognized gains or losses on hedges, and is presented in the accompanying consolidated statements of shareholders' equity and comprehensive income. |
Stock-Based Compensation | Stock-Based Compensation - WABCO measures and recognizes in its consolidated statements of operations the expense associated with all share-based payment awards made to employees and directors including stock options, RSUs, PSUs, DSUs and restricted stock grants based on estimated fair values. All options granted prior to 2007 were adjusted upon the Distribution into two separate options, one relating to the Company's common stock and one relating to Trane common stock. This adjustment was made such that immediately following the Distribution (i) the number of shares relating to the Company options were equal to the number of shares of Company common stock that the option holder would have received in the Distribution had Trane options represented outstanding shares of Trane common stock, and (ii) the per share option exercise price of the original Trane stock option was proportionally allocated between the two types of stock options based upon the relative per share trading prices of the Company and Trane immediately following the Distribution. Thus, upon the Distribution, WABCO options are being held by both WABCO and Trane employees and Trane options continued to be held by WABCO employees. Options granted to WABCO employees in 2007 were equitably adjusted upon Distribution so as to relate solely to shares of the Company's common stock. These adjustments preserved the economic value of the awards immediately prior to the Distribution. All Company options issued as part of this adjustment and the Trane options are fully vested at this time. Further, for purposes of vesting and the post-termination exercise periods applicable to such stock options, the Trane Inc. Management Development and Compensation Committee determined that continued employment with the Company will be viewed as continued employment with the issuer of the options. Outstanding WABCO options held by non-WABCO employees or directors that arose as a result of the Distribution are not reflected in compensation expense recognized by the Company. Consequently, these stock options do not result in any tax benefits to the Company at any time. The WABCO options held by non-employees or directors are considered in the Company's diluted EPS calculation. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards The adoption of recently issued accounting standards did not have a material impact on the consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update 2015-17 (ASU 2015-17) Balance Sheet Classification of Deferred Taxes , which requires that deferred tax assets and deferred tax liabilities be classified as noncurrent in the balance sheet. ASU 2015-17 is effective for the interim and annual periods ending after December 15, 2016. Early adoption is permitted, and the Company adopted the provisions of ASU 2015-17 retrospectively as of December 31, 2015. Prior period information presented in the Company's consolidated financial statements was retrospectively adjusted, resulting in the reclassification of $20.8 million of deferred tax assets from current assets to noncurrent assets within the Company's consolidated balance sheet at December 31, 2014. In June 2015, the FASB issued ASU 2015-10 Technical Corrections and Improvements , which clarifies various topics in the FASB Accounting Standards Codification. ASU 2015-10 is effective for the interim and annual periods ending after December 15, 2015. The Company adopted the provisions of ASU 2015-10 as of December 31, 2015. There was no impact from adoption of this guidance on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 Simplifying the Presentation of Debt Issuance Costs , which require debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. ASU 2015-03 is effective for the interim and annual periods ending after December 15, 2015. Early adoption is permitted, and the Company adopted the provisions of ASU 2015-03 retrospectively as of June 30, 2015. There was no impact from adoption of this guidance on prior period information presented in the Company's consolidated financial statements. In August 2014, the FASB issued ASU 2014-15 (ASU 2014-15) Presentation of Financial Statements - Going Concern , which provide guidance about management's responsibility in evaluating whether there is substantial doubt relating to an entity’s ability to continue as a going concern and to provide related footnote disclosures as applicable. ASU 2014-15 is effective for the interim and annual periods ending after December 15, 2016. The Company does not expect any material impact from adoption of this guidance on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which is a new comprehensive revenue recognition standard on the financial reporting requirements for revenue from contracts entered into with customers. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The FASB subsequently deferred the effective date of this standard to December 15, 2017 with early adoption permitted as of December 15, 2016. The Company is currently assessing the potential impact of the adoption of this guidance on its consolidated financial statements. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Year Ended December 31, 2015 2014 2013 Weighted average incremental shares included 506,969 638,691 908,071 Shares excluded due to anti-dilutive effect — — 3,000 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The table below presents the changes in accumulated other comprehensive loss for the years ended December 31, 2015 , 2014 and 2013 : Year Ended December 31, (Amount in millions) 2015 2014 2013 Foreign currency translation adjustments: Balance at beginning of period $ (148.1 ) $ (5.5 ) $ (9.5 ) Adjustment for the period (123.1 ) (142.6 ) 4.0 Balance at end of period (271.2 ) (148.1 ) (5.5 ) Losses on intra-entity transactions (1) : Balance at beginning of period (9.9 ) (8.9 ) (5.9 ) Adjustment for the period (5.3 ) (1.0 ) (3.0 ) Balance at end of period (15.2 ) (9.9 ) (8.9 ) Unrealized gains on investments: Balance at beginning of period 0.2 — — Adjustment for the period — 0.4 — Amounts reclassified to earnings, net — (0.2 ) — Balance at end of period 0.2 0.2 — Unrealized losses on hedges: Balance at beginning of period — — — Adjustment for the period (2) (1.3 ) — — Amounts reclassified to earnings, net 0.1 — — Balance at end of period (1.2 ) — — Pension and Post-retirement Plans: Balance at beginning of period (244.9 ) (109.0 ) (107.2 ) Other comprehensive income before reclassifications 12.9 (140.1 ) (6.6 ) Amounts reclassified to earnings, net (3) 11.5 4.2 4.8 Balance at end of period (220.5 ) (244.9 ) (109.0 ) Accumulated other comprehensive loss at end of period $ (507.9 ) $ (402.7 ) $ (123.4 ) (1) Relates to intra-entity foreign currency transactions that are of a long term investment nature, when the entities to the transaction are consolidated, combined or accounted for by the equity method in the Company's financial statements. (2) The adjustment for the period is net of taxes of $0.7 million for the year ended December 31, 2015 . See Note 20 for further discussion. (3) This accumulated other comprehensive income component, net of taxes of $4.6 million , $1.9 million and $1.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, is included in the computation of net periodic pension cost. See Note 13 for additional details. |
Streamlining (Tables)
Streamlining (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Schedule of Streamlining Expenses | The following is a summary of changes in the Company’s streamlining program liabilities for the year ended December 31, 2015 . (Amounts in millions) 2008 / 2009 Program Balance as of December 31, 2014 $ 3.3 Charges during 2015 — Payments during 2015 (3.3 ) FX effects — Balance as of December 31, 2015 $ — 2014 / 2015 Program Balance as of December 31, 2014 $ 10.0 Charges during 2015 45.4 Payments during 2015 (1.1 ) Noncash writeoffs during 2015 (8.5 ) FX effects (2.0 ) Balance as of December 31, 2015 $ 43.8 Other Programs Balance as of December 31, 2014 $ 18.7 Charges during 2015 23.1 Payments during 2015 (14.5 ) FX effects (2.4 ) Balance as of December 31, 2015 $ 24.9 Total streamlining liability as of December 31, 2015 $ 68.7 |
Schedule of Streamlining Cost | The following is a summary of current and cumulative streamlining costs: Charges for Year Ended December 31, 2015 Cumulative Charges as of December 31, 2015 (Amounts in millions) 2008/2009 Program 2014/2015 Program Other Programs 2008/2009 Program 2014/2015 Program Other Programs Employee-related charges – cost of sales $ — $ 32.9 $ 7.4 $ 45.7 $ 34.0 $ 32.8 Employee-related charges – selling and administrative — 4.0 15.3 45.8 11.9 43.4 Asset write-offs — 7.7 — — 8.5 2.1 Other streamlining charges — 0.8 0.4 — 1.0 0.2 Total program costs $ — $ 45.4 $ 23.1 $ 91.5 $ 55.4 $ 78.5 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Net Shares Outstanding and Shares Issued or Reacquired | The following is a summary of net shares outstanding and shares issued or reacquired during the years ending December 31, 2015 , 2014 and 2013 . Number of Shares of Common Stock Total Shares Treasury Shares Net Shares Outstanding Balance, December 31, 2012 75,755,306 (13,008,155 ) 62,747,151 Shares issued upon exercise of stock options 1,600,850 — 1,600,850 Shares issued upon vesting of RSUs 106,768 — 106,768 Shares issued for DSUs 7,350 — 7,350 Shares issued for stock awards 900 — 900 Shares purchased for treasury — (3,103,994 ) (3,103,994 ) Balance, December 31, 2013 77,471,174 (16,112,149 ) 61,359,025 Shares issued upon exercise of stock options 394,899 — 394,899 Shares issued upon vesting of RSUs 91,235 — 91,235 Shares issued for DSUs 2,932 — 2,932 Shares issued for stock awards 800 — 800 Shares purchased for treasury — (3,423,018 ) (3,423,018 ) Balance, December 31, 2014 77,961,040 (19,535,167 ) 58,425,873 Shares issued upon exercise of stock options 414,782 — 414,782 Shares issued upon vesting of RSUs 117,830 — 117,830 Shares issued for DSUs 6,432 — 6,432 Shares issued for stock awards — — — Shares purchased for treasury — (2,205,351 ) (2,205,351 ) Balance, December 31, 2015 78,500,084 (21,740,518 ) 56,759,566 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Total Stock-Based Compensation Cost Recognized During Period | Total stock-based compensation cost recognized during the years ended December 31, 2015 , 2014 and 2013 was as follows: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Stock-based compensation $ 12.0 $ 15.5 $ 13.6 |
Total Number and Type of Awards Granted and Related Weighted-Average Grant Date Fair Values | The following tables summarize the stock options, RSUs, PSUs, DSUs and stock awards activity for each of the periods presented: Underlying Shares Weighted - Average Exercise Price Weighted - Average Grant Date Fair Value WABCO employees Trane employees Total Options Outstanding December 31, 2012 2,300,133 568,059 2,868,192 $ 35.82 Options Granted — — — $ — $ — Options Exercised (1,359,825 ) (242,243 ) (1,602,068 ) $ 31.08 Options Forfeited (53,391 ) (200 ) (53,591 ) $ 52.71 Options Outstanding December 31, 2013 886,917 325,616 1,212,533 $ 41.20 Options Granted — — — $ — $ — Options Exercised (298,032 ) (98,611 ) (396,643 ) $ 38.01 Options Forfeited (8,036 ) (200 ) (8,236 ) $ 58.54 Options Outstanding December 31, 2014 580,849 226,805 807,654 $ 42.60 Options Granted — — — $ — $ — Options Exercised (284,817 ) (130,882 ) (415,699 ) $ 41.87 Options Forfeited — (336 ) (336 ) $ 38.97 Options Outstanding December 31, 2015 296,032 95,587 391,619 $ 43.37 Exercisable at December 31, 2015 283,842 95,587 379,429 $ 42.86 Underlying Shares Weighted - Average Grant Date Fair Value RSUs Outstanding December 31, 2012 352,965 $ 55.30 RSUs Granted 112,964 $ 68.37 RSUs Vested (129,755 ) $ 43.70 RSUs Forfeited (47,707 ) $ 60.86 RSUs Outstanding December 31, 2013 288,467 $ 64.72 RSUs Granted 93,070 $ 100.78 RSUs Vested (114,485 ) $ 64.39 RSUs Forfeited (14,584 ) $ 75.08 RSUs Outstanding December 31, 2014 252,468 $ 77.56 RSUs Granted 78,664 $ 116.46 RSUs Vested (157,585 ) $ 70.81 RSUs Forfeited (20,460 ) $ 96.95 RSUs Outstanding December 31, 2015 153,087 $ 101.91 Underlying Shares Weighted - Average Grant Date Fair Value PSUs Outstanding December 31, 2012 — $ — PSUs Granted 94,364 $ 68.10 PSUs Forfeited (9,954 ) $ 68.10 PSUs Outstanding December 31, 2013 84,410 $ 68.10 PSUs Granted 65,508 $ 103.41 PSUs Forfeited (10,940 ) $ 77.38 PSUs Outstanding December 31, 2014 138,978 $ 84.01 PSUs Granted 58,630 $ 116.38 PSUs Forfeited (24,896 ) $ 95.65 PSUs Outstanding December 31, 2015 172,712 $ 93.31 Underlying Shares Weighted - Average Grant Date Fair Value DSUs Outstanding December 31, 2012 12,766 $ 51.32 DSUs Granted 5,864 $ 75.12 DSUs Issued (7,350 ) $ 52.39 DSUs Outstanding December 31, 2013 11,280 $ 63.00 DSUs Granted 7,156 $ 107.70 DSUs Issued (2,932 ) $ 75.12 DSUs Outstanding December 31, 2014 15,504 $ 78.11 DSUs Granted 5,917 $ 129.94 DSUs Issued (6,432 ) $ 106.59 DSUs Outstanding December 31, 2015 14,989 $ 86.35 Shares Weighted - Average Grant Date Fair Value Stock Awards granted: Year ended December 31, 2013 900 $ 70.53 Year ended December 31, 2014 800 $ 96.37 Year ended December 31, 2015 — $ — |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The table below shows the vesting schedule of the RSUs granted for each of the periods presented: Vesting Schedule Equal installments over 3 years After 2 years After 3 years After 4 years Total RSUs granted in 2013 109,254 — 3,710 — 112,964 RSUs granted in 2014 78,966 1,934 12,170 — 93,070 RSUs granted in 2015 74,394 814 3,456 — 78,664 |
Other Operating and Non-Opera39
Other Operating and Non-Operating Expense / (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating and Non-Operating Expense / (Income), Net | Other expense/(income) was as follows: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Operating expense: Bank charges $ 1.7 $ 2.2 $ 2.0 Miscellaneous taxes 4.1 5.7 2.9 Other expense, net 0.9 1.0 0.1 $ 6.7 $ 8.9 $ 5.0 Non-operating (income)/expense: Indemnification settlements, net $ (1.0 ) $ (4.3 ) $ (8.8 ) Securitization and receivable discount fees 0.3 0.9 1.0 Foreign exchange gains (0.9 ) (0.9 ) (2.3 ) Other expense, net — 2.5 3.2 $ (1.6 ) $ (1.8 ) $ (6.9 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories, which are carried on a last-in, first-out (LIFO) basis, are as follows: Year Ended December 31, (Amounts in millions) 2015 2014 Finished products $ 95.7 $ 87.3 Products in process 7.8 7.5 Raw materials 109.2 94.8 Inventories at cost $ 212.7 $ 189.6 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Facilities | The components of property, plant and equipment, at cost, are as follow: Year Ended December 31, (Amounts in millions) 2015 2014 Land $ 21.7 $ 23.4 Buildings 172.5 193.2 Machinery and equipment 775.2 796.8 Improvements in progress 65.6 49.1 Gross property, plant and equipment 1,035.0 1,062.5 Less: accumulated depreciation 637.0 637.6 Net property, plant and equipment $ 398.0 $ 424.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 . Year Ended December 31, (Amounts in millions) 2015 2014 Balance of goodwill, beginning of year $ 421.0 $ 381.2 Acquisitions — 91.6 Foreign exchange translation (43.3 ) (51.8 ) Balance of goodwill, end of year $ 377.7 $ 421.0 |
Changes in Carrying Value of Intangible Assets | The changes in the carrying value of intangible assets for the years ended December 31 are as follow: Capitalized Software Other Intangible Assets Total Gross intangible assets as of: December 31, 2012 $ 99.1 $ 50.3 $ 149.4 Additions 13.5 2.2 15.7 Disposals (1.9 ) (0.5 ) (2.4 ) Foreign exchange translation 4.3 (0.2 ) 4.1 December 31, 2013 115.0 51.8 166.8 Additions 12.7 53.4 66.1 Disposals (17.7 ) — (17.7 ) Foreign exchange translation (14.5 ) (11.6 ) (26.1 ) December 31, 2014 95.5 93.6 189.1 Additions 10.9 — 10.9 Disposals (0.8 ) — (0.8 ) Foreign exchange translation (9.8 ) (8.6 ) (18.4 ) December 31, 2015 $ 95.8 $ 85.0 $ 180.8 Accumulated amortization as of: December 31, 2012 $ (76.4 ) $ (33.6 ) $ (110.0 ) Amortization expense (7.5 ) (3.1 ) (10.6 ) Disposals 1.9 0.4 2.3 Foreign exchange translation (3.4 ) (0.8 ) (4.2 ) December 31, 2013 (85.4 ) (37.1 ) (122.5 ) Amortization expense (9.1 ) (12.4 ) (21.5 ) Disposals 17.7 — 17.7 Foreign exchange translation 10.7 4.9 15.6 December 31, 2014 (66.1 ) (44.6 ) (110.7 ) Amortization expense (8.7 ) (10.5 ) (19.2 ) Disposals 0.7 — 0.7 Foreign exchange translation 6.9 4.3 11.2 December 31, 2015 $ (67.2 ) $ (50.8 ) $ (118.0 ) Net intangible assets as of: December 31, 2015 $ 28.6 $ 34.2 $ 62.8 |
Post-retirement Benefits (Table
Post-retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Reconciliation of Benefit Obligation and Fair Value of Plan Assets | The following table provides a reconciliation of the changes in pension and retirement health and life insurance benefit obligations and fair value of assets for the years ending December 31, 2015 and 2014 , and a statement of the funded status as of December 31, 2015 and 2014 . 2015 2015 2014 2014 (Amounts in millions) Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Pension Benefits Reconciliation of benefit obligation: Obligation at beginning of year $ 13.3 $ 777.8 $ 14.0 $ 606.2 Service cost 0.2 16.7 0.1 12.4 Interest cost 0.4 17.6 0.5 21.7 Participant contributions 0.2 0.2 0.3 0.2 Curtailments — (1.4 ) — — Actuarial loss / (gain) 3.9 (2.4 ) 2.6 248.6 Benefit payments (3.3 ) (26.2 ) (4.2 ) (31.0 ) Foreign exchange effects — (66.6 ) — (83.9 ) Other — (0.2 ) — 3.6 Obligation at end of year $ 14.7 $ 715.5 $ 13.3 $ 777.8 2015 2015 2014 2014 (Amounts in millions) Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Pension Benefits Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of year $ — $ 188.1 $ — $ 178.1 Actual return on assets — (0.4 ) — 24.7 Employer contributions 3.1 19.7 3.9 29.1 Participant contributions 0.2 0.2 0.3 0.2 Benefit payments (3.3 ) (26.2 ) (4.2 ) (31.0 ) Foreign exchange effects — (7.5 ) — (11.9 ) Other expenses — (0.6 ) — (1.1 ) Fair value of plan assets at end of year $ — $ 173.3 $ — $ 188.1 Funded Status at December 31 $ (14.7 ) $ (542.2 ) $ (13.3 ) $ (589.7 ) Amounts recognized in the balance sheet: Noncurrent assets $ — $ 16.3 $ — $ 13.7 Current liabilities (1.6 ) (18.9 ) (1.6 ) (20.1 ) Noncurrent liabilities (13.1 ) (539.6 ) (11.7 ) (583.3 ) Net amounts recognized in balance sheet: $ (14.7 ) $ (542.2 ) $ (13.3 ) $ (589.7 ) Cumulative amounts recognized in other comprehensive income consist of: Prior service cost $ 0.1 $ 1.7 $ 0.1 $ 1.9 Net actuarial loss 11.5 300.1 9.5 340.5 Total (before tax effects) $ 11.6 $ 301.8 $ 9.6 $ 342.4 |
Pension Plans with Accumulated Benefit Obligations in Excess of Assets | The following table provides a summary of pension plans with accumulated benefit obligations in excess of assets as of December 31: 2015 2014 (Amounts in millions) Foreign Pension Plans Foreign Pension Plans For all plans: Accumulated benefit obligation $ 599.7 $ 692.4 For pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation $ 470.1 $ 547.7 |
Total Post-Retirement Costs | Total post-retirement costs are shown below: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Foreign pensions $ 42.0 $ 31.6 $ 30.9 Health & Life insurance benefits 1.1 1.0 1.0 Total post-retirement costs, including accretion expense $ 43.1 $ 32.6 $ 31.9 |
Assumptions Used in Determining the Benefit Obligation and Net Cost for Post-retirement Plans | Major assumptions used in determining the benefit obligation and net cost for post-retirement plans are presented below as weighted averages: Benefit Obligation at December 31 2015 Health & Life Ins. Benefits 2015 Foreign Pension Plans 2014 Health & Life Ins. Benefits 2014 Foreign Pension Plans Discount rate 3.75 % 2.50 % 3.50 % 2.43 % Salary growth N/A 2.95 % N/A 3.03 % Net Periodic Pension Cost for the year Discount rate 3.50 % 2.43 % 4.00 % 3.71 % Salary growth N/A 3.03 % N/A 3.18 % Expected return on plan assets N/A 4.89 % N/A 4.27 % |
Allocation and Fair Value of Plan Assets | The fair values for each class of assets are presented below: (Amounts in millions) 2015 2014 Equity securities $ 52.5 $ 52.7 Debt securities 12.1 20.7 Insurance contracts 80.6 87.0 Investments in collective foundations 24.8 25.6 Other * 3.3 2.1 Total fair value of plan assets $ 173.3 $ 188.1 * Included in "other" above are mutual funds held in real estate. In determining the target asset allocation for a given plan, consideration is given to the nature of its liabilities, and portfolios are periodically rebalanced with reference to the target level. Asset Allocation 2015 2014 2015 Target 2014 Target Equity securities 30 % 28 % 28 % 28 % Debt securities 7 % 11 % 11 % 11 % Insurance contracts 47 % 46 % 46 % — % Investments in collective foundations 14 % 14 % 14 % 14 % Other * 2 % 1 % 1 % 1 % * Included in "other" above are mutual funds held in real estate. |
Expected Future Benefit Payments | Expected future benefit payments from our pension and retirement health and life insurance benefit plans are shown in the table below: (Amounts in millions) 2016 2017 2018 2019 2020 2021-2025 Domestic plans without subsidy $ 1.6 $ 1.5 $ 1.4 $ 1.3 $ 1.3 $ 5.2 Foreign pension plans $ 25.9 $ 26.0 $ 26.7 $ 26.6 $ 27.2 $ 140.3 |
Health Care Cost Trend Rate Assumption | The health care cost trend rate assumption has the following effect: (Amounts in millions) 1% Increase 1% Decrease Effect on the health care component of accumulated post-retirement obligation $ 1.0 $ (0.9 ) Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs $ — $ — |
Foreign Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Post-Retirement Costs | Components of post-retirement costs are broken out in the tables below: Pension Benefit Costs Year Ended December 31, (Amounts in millions) 2015 2014 2013 Service cost-benefits earned during period $ 16.7 $ 12.3 $ 12.7 Interest cost on projected benefit obligation 17.6 21.6 20.8 Less: assumed return on plan assets (7.9 ) (8.1 ) (8.8 ) Amortization of prior service cost 0.5 (0.1 ) 0.1 Amortization of net loss 15.1 5.9 6.1 Net defined benefit plan cost after amendments $ 42.0 $ 31.6 $ 30.9 |
United States Postretirement Benefit Plans of US Entity, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Post-Retirement Costs | Other Post-Retirement Benefit Costs Year Ended December 31, (Amounts in millions) 2015 2014 2013 Interest and service cost on projected benefit obligation $ 0.6 $ 0.6 $ 0.6 Amortization of net loss 0.5 0.4 0.4 Defined benefit plan cost $ 1.1 $ 1.0 $ 1.0 |
Warranties, Guarantees, Commi44
Warranties, Guarantees, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in the Company's Product Warranty Liability | The following is a summary of changes in the Company’s product warranty liability for the years ended December 31, 2015 , 2014 and 2013 . Year Ended December 31, (Amounts in millions) 2015 2014 2013 Balance of warranty costs accrued, beginning of period $ 45.2 $ 51.6 $ 55.2 Warranty costs accrued 24.4 27.1 25.4 Warranty claims settled (24.3 ) (28.0 ) (30.5 ) Foreign exchange translation effects (4.4 ) (5.5 ) 1.5 Balance of warranty costs accrued, end of period $ 40.9 $ 45.2 $ 51.6 Current liability, included in current portion of warranties $ 23.1 $ 25.8 $ 29.8 Long-term liability, included in other liabilities $ 17.8 $ 19.4 $ 21.8 Warranty costs net of recoveries $ 24.4 $ 24.9 $ 21.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Before Income Taxes and Applicable Provision for Income Taxes | Income before income taxes and the applicable provision for income taxes were : Year Ended December 31, (Amounts in millions) 2015 2014 2013 Income before income taxes: Domestic $ 62.9 $ 49.8 $ 94.4 Foreign 234.6 307.0 546.5 $ 297.5 $ 356.8 $ 640.9 Provision/(benefit) for income taxes: Current: Domestic $ (22.0 ) $ 18.0 $ 11.4 Foreign 45.2 33.1 32.2 $ 23.2 $ 51.1 $ 43.6 Deferred: Domestic $ (3.0 ) $ 3.0 $ 101.7 Foreign (8.7 ) 1.5 (166.3 ) $ (11.7 ) $ 4.5 $ (64.6 ) Total provision/(benefit) $ 11.5 $ 55.6 $ (21.0 ) |
Reconciliation of Actual Income Tax Expense to Statutory Federal Rate | A reconciliation between the actual income tax expense provided and the income taxes computed by applying the statutory federal income tax rate of 35.0% in 2015 , 2014 and 2013 to the income before income taxes is as follows: Year Ended December 31, (Amounts in millions) 2015 2014 2013 Tax provision at statutory rate $ 104.1 $ 124.9 $ 224.3 State income taxes 1.1 0.7 — Foreign earnings taxed at other than 35% (43.5 ) (61.1 ) (70.4 ) Increase/(decrease) in valuation allowance 4.5 (1.1 ) (261.9 ) Unremitted foreign earnings (5.9 ) (3.6 ) 107.4 Belgium Excess Profit Ruling (16.9 ) (20.9 ) (23.5 ) Tax (reversals)/contingencies (32.6 ) 3.3 (0.4 ) Equity compensation 3.8 4.8 4.4 Other, net (3.1 ) 8.6 (0.9 ) Total provision/(benefit) $ 11.5 $ 55.6 $ (21.0 ) |
Gross Deferred Tax Liabilities and Assets | The following table details the gross deferred tax liabilities and assets and the related valuation allowances: Year Ended December 31, (Amounts in millions) 2015 2014 Deferred tax liabilities: Basis difference in noncontrolling interest $ 9.4 $ 10.5 Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) 14.4 19.0 Unremitted foreign earnings 97.0 103.3 Intangibles 16.3 16.8 $ 137.1 $ 149.6 Deferred tax assets: Foreign net operating losses and tax credits $ 136.0 $ 170.1 Post-retirement and other employee benefits 101.5 105.4 Intangibles 46.8 34.0 Inventory 0.6 1.1 Warranties 1.7 1.6 Other 7.7 6.7 $ 294.3 $ 318.9 Valuation allowances (13.5 ) (9.0 ) Net deferred tax assets $ 143.7 $ 160.3 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows (exclusive of interest): Year Ended December 31, (Amounts in millions) 2015 2014 2013 Beginning balance, January 1 $ 41.5 $ 39.3 $ 41.9 Additions for tax positions related to current year 5.1 2.2 — Additions for tax positions related to prior years — 25.8 1.2 Reductions for tax positions related to prior years (27.3 ) — — Cash settlements (2.3 ) — (2.0 ) Expirations of statute of limitations (2.4 ) (25.8 ) (2.0 ) Foreign exchange — — 0.2 Ending balance, December 31 $ 14.6 $ 41.5 $ 39.3 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investee [Member] | |
Related Party Transaction [Line Items] | |
Schedule Of Related Party Transactions, By Related Party | (Amounts in millions) WABCO Sales to WABCO Purchases from Joint Venture 2015 2014 2013 2015 2014 2013 Meritor WABCO $ 228.7 $ 218.7 $ 176.0 $ — $ 0.7 $ — WABCO SA 4.8 4.5 5.7 3.9 — — WABCOWURTH 0.2 0.2 0.2 0.2 0.3 0.3 (Amounts in millions) WABCO Receivables from WABCO Payables to Joint Venture 2015 2014 2015 2014 Meritor WABCO $ 35.6 $ 32.0 $ 0.2 $ — WABCO SA 1.6 1.1 — — WABCOWURTH — — — — |
Consolidated Joint Venture [Member] | |
Related Party Transaction [Line Items] | |
Schedule Of Related Party Transactions, By Related Party | (Amounts in millions) WABCO Sales to WABCO Purchases from Joint Venture 2015 2014 2013 2015 2014 2013 Sanwa-Seiki $ — $ — $ — $ 25.7 $ 31.3 $ 33.7 Cummins 88.7 86.0 72.9 — — — FUWA 7.1 6.3 3.0 — — — |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Geographic Data Year Ended December 31, (Amounts in millions) 2015 2014 2013 Product Sales: OEM $ 1,949.8 $ 2,099.4 $ 2,043.5 Aftermarket 677.7 751.6 677.0 Sales - Geographic distribution (a): United States $ 437.1 $ 383.5 $ 296.2 Europe (countries below are included in this total) 1,464.3 1,668.5 1,666.3 Germany 588.3 698.7 731.3 France 83.9 89.8 99.5 Netherlands 96.1 101.0 96.6 Sweden 176.4 206.8 215.4 Other (countries below are included in this total) 726.1 799.0 758.0 Japan 93.9 105.4 100.5 China 233.9 221.8 192.6 Brazil 73.7 156.7 180.9 India 168.8 127.1 106.1 Total sales $ 2,627.5 $ 2,851.0 $ 2,720.5 (a) Sales to external customers are classified by country of destination. As of December 31, (Amounts in millions) 2015 2014 2013 Long-lived Assets (b) Geographic distribution: United States $ 46.2 $ 22.0 $ 20.2 Europe (countries below are included in this total) 660.2 727.4 655.7 Germany 268.9 284.9 323.7 Poland 130.0 127.6 110.8 Other (countries below are included in this total) 191.6 212.5 213.5 India 95.0 97.2 97.7 China 61.6 66.0 68.3 Total long-lived assets $ 898.0 $ 961.9 $ 889.4 (b) Amounts are presented on a net basis |
Business Combinations Purchase
Business Combinations Purchase price allocation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (Amounts in millions) Cash and cash equivalents $ 25.3 Trade receivables 15.6 Trade payables (5.4 ) Debt (4.5 ) Deferred tax liabilities (13.9 ) Property, plant and equipment 3.5 Intangible assets 51.1 Other assets purchased and liabilities assumed, net (6.6 ) Identifiable net assets acquired $ 65.1 Goodwill 91.6 Noncontrolling interest (5.7 ) Total purchase price allocation $ 151.0 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Year 2015 (Amounts in millions) First Second Third Fourth Sales $ 652.2 $ 661.1 $ 643.6 $ 670.6 Cost of sales 438.6 453.6 479.0 470.8 Gross profit 213.6 207.5 164.6 199.8 Income before income taxes 93.3 86.8 36.1 81.3 Income tax expense/(benefit) 18.5 18.5 (5.2 ) (20.3 ) Net income attributable to Company $ 71.9 $ 65.8 $ 38.8 $ 98.7 Net income per common share Basic $ 1.23 $ 1.13 $ 0.67 $ 1.73 Diluted $ 1.22 $ 1.12 $ 0.67 $ 1.71 Year 2014 (Amounts in millions) First Second Third Fourth Sales $ 729.5 $ 735.0 $ 707.3 $ 679.1 Cost of sales 511.6 505.3 487.3 474.9 Gross profit 217.9 229.7 220.0 204.2 Income before income taxes 87.7 95.8 94.0 79.3 Income tax expense 15.8 17.9 9.5 12.4 Net income attributable to Company $ 69.4 $ 75.0 $ 82.0 $ 65.1 Net income per common share Basic $ 1.13 $ 1.24 $ 1.38 $ 1.11 Diluted $ 1.12 $ 1.23 $ 1.37 $ 1.10 |
Description of Company (Details
Description of Company (Details) | Jul. 31, 2007 | Dec. 31, 2015segment |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Common stock distribution percentage due to spin-off | 100.00% | |
Common stock distribution, due to spin-off, conversion ratio | 3 | |
Number of reportable segments | 1 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Current Fiscal Year End Date | --12-31 | ||
Short-term investments | $ 43,800,000 | $ 0 | |
Cost Method Investments, Original Cost | 20,000,000 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 24,700,000 | 19,600,000 | |
Available-for-sale Securities | 2,700,000 | ||
Accounting Policies Excluding Property Plant and Equipment [Abstract] | |||
Sales incentive allowance | 43,200,000 | $ 43,000,000 | $ 42,400,000 |
Goodwill impairment | $ 0 | ||
Standard warranty period | 2 years | ||
Product warranty costs, percentage of net sales | 1.00% | 0.90% | 0.80% |
Research and development expense | $ 139,500,000 | $ 145,000,000 | $ 119,400,000 |
Unremitted foreign earnings | $ 300,000,000 | $ 15,100,000 | $ 300,000,000 |
Document Fiscal Year Focus | 2,015 | ||
Building [Member] | |||
Accounting Policies Property Plant And Equipment [Abstract] | |||
Property, plant and equipment, useful life, average, years | 40 years | ||
Computer Software Costs [Member] | |||
Accounting Policies Property Plant And Equipment [Abstract] | |||
Property, plant and equipment, useful life, average, years | 7 years | ||
Minimum [Member] | |||
Accounting Policies Excluding Property Plant and Equipment [Abstract] | |||
Useful life | 1 year | ||
Tax position recognized, likelihood percentage | 50.00% | ||
Tax benefit, likelihood percentage | 50.00% | ||
Minimum [Member] | Tooling [Member] | |||
Accounting Policies Property Plant And Equipment [Abstract] | |||
Property, plant and equipment, useful life, average, years | 3 years | ||
Minimum [Member] | Other Machinery and Equipment [Member] | |||
Accounting Policies Property Plant And Equipment [Abstract] | |||
Property, plant and equipment, useful life, average, years | 5 years | ||
Maximum [Member] | |||
Accounting Policies Excluding Property Plant and Equipment [Abstract] | |||
Useful life | 15 years | ||
Maximum [Member] | Tooling [Member] | |||
Accounting Policies Property Plant And Equipment [Abstract] | |||
Property, plant and equipment, useful life, average, years | 5 years | ||
Maximum [Member] | Other Machinery and Equipment [Member] | |||
Accounting Policies Property Plant And Equipment [Abstract] | |||
Property, plant and equipment, useful life, average, years | 15 years |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Current Fiscal Year End Date | --12-31 | ||
Weighted average incremental shares included | 506,969 | 638,691 | 908,071 |
Shares excluded due to anti-dilutive effect | 0 | 0 | 3,000 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current Fiscal Year End Date | --12-31 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 0.7 | ||
Accumulated other comprehensive loss at beginning of period | (402.7) | $ (123.4) | |
Accumulated other comprehensive loss at end of period | (507.9) | (402.7) | $ (123.4) |
Foreign currency translation adjustments: | |||
Accumulated other comprehensive loss at beginning of period | (148.1) | (5.5) | (9.5) |
Adjustment for the period | (123.1) | (142.6) | 4 |
Accumulated other comprehensive loss at end of period | (271.2) | (148.1) | (5.5) |
Losses on intra-entity transactions | |||
Accumulated other comprehensive loss at beginning of period | (9.9) | (8.9) | (5.9) |
Adjustment for the period | (5.3) | (1) | (3) |
Accumulated other comprehensive loss at end of period | (15.2) | (9.9) | (8.9) |
Unrealized gains on investments: | |||
Accumulated other comprehensive loss at beginning of period | 0.2 | 0 | 0 |
Adjustment for the period | 0 | 0.4 | 0 |
Amounts reclassified to earnings, net | 0 | (0.2) | 0 |
Accumulated other comprehensive loss at end of period | 0.2 | 0.2 | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated other comprehensive loss at beginning of period | 0 | 0 | 0 |
Adjustment for the period | (1.3) | 0 | 0 |
Amounts reclassified to earnings, net | 0.1 | 0 | 0 |
Accumulated other comprehensive loss at end of period | (1.2) | 0 | 0 |
Pension and Post-retirement Plans: | |||
Accumulated other comprehensive loss at beginning of period | (244.9) | (109) | (107.2) |
Adjustment for the period | 12.9 | (140.1) | (6.6) |
Amounts reclassified to earnings, net | 11.5 | 4.2 | 4.8 |
Accumulated other comprehensive loss at end of period | (220.5) | (244.9) | (109) |
Pension and post-retirement plans, AOCI, tax effect | $ 4.6 | $ 1.9 | $ 1.9 |
Streamlining (Narrative) (Detai
Streamlining (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Total streamlining liability | $ 68.7 |
Other Noncurrent Liabilities [Member] | |
Total streamlining liability | 55.3 |
Accrued Liabilities [Member] | |
Total streamlining liability | $ 13.4 |
Streamlining (Schedule of Strea
Streamlining (Schedule of Streamlining Expenses) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Total streamlining liability | $ 68.7 |
2008 / 2009 Program [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 3.3 |
Charges | 0 |
Payments | (3.3) |
Ending balance | 0 |
Foreign exchange translation effects | 0 |
2014/2015 Program [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 10 |
Charges | 45.4 |
Payments | (1.1) |
Ending balance | 43.8 |
Restructuring and Related Cost, Accelerated Depreciation | (8.5) |
Foreign exchange translation effects | (2) |
Other Programs [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 18.7 |
Charges | 23.1 |
Payments | (14.5) |
Ending balance | 24.9 |
Foreign exchange translation effects | $ (2.4) |
Streamlining (Schedule of Curre
Streamlining (Schedule of Current and Cumulative Streamlining Costs) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Current period [Member] | 2008 / 2009 Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Employee related charges - cost of sales | $ 0 |
Employee related charges - selling and administrative | 0 |
Asset write-offs | 0 |
Other streamlining charges | 0 |
Total program costs | 0 |
Current period [Member] | 2014/2015 Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Employee related charges - cost of sales | 32.9 |
Employee related charges - selling and administrative | 4 |
Asset write-offs | 7.7 |
Other streamlining charges | 0.8 |
Total program costs | 45.4 |
Current period [Member] | Other Programs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Employee related charges - cost of sales | 7.4 |
Employee related charges - selling and administrative | 15.3 |
Asset write-offs | 0 |
Other streamlining charges | 0.4 |
Total program costs | 23.1 |
cumulative period [Member] | 2008 / 2009 Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Employee related charges - cost of sales | 45.7 |
Employee related charges - selling and administrative | 45.8 |
Asset write-offs | 0 |
Other streamlining charges | 0 |
Total program costs | 91.5 |
cumulative period [Member] | 2014/2015 Program [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Employee related charges - cost of sales | 34 |
Employee related charges - selling and administrative | 11.9 |
Asset write-offs | 8.5 |
Other streamlining charges | 1 |
Total program costs | 55.4 |
cumulative period [Member] | Other Programs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Employee related charges - cost of sales | 32.8 |
Employee related charges - selling and administrative | 43.4 |
Asset write-offs | 2.1 |
Other streamlining charges | 0.2 |
Total program costs | $ 78.5 |
Capital Stock (Schedule of Net
Capital Stock (Schedule of Net Shares Outstanding and Shares Issued or Reacquired) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Total Shares, beginning balance | 77,961,040 | 77,471,174 | 75,755,306 |
Net Shares Outstanding, beginning balance | 58,425,873 | 61,359,025 | 62,747,151 |
Shares issued upon exercise of stock options | 414,782 | 394,899 | 1,600,850 |
Shares issued upon vesting of RSUs | 117,830 | 91,235 | 106,768 |
Shares issued for DSUs | 6,432 | 2,932 | 7,350 |
Shares issued for stock awards | 0 | 800 | 900 |
Total Shares, ending balance | 78,500,084 | 77,961,040 | 77,471,174 |
Net Shares Outstanding, ending balance | 56,759,566 | 58,425,873 | 61,359,025 |
Treasury Shares, beginning balance | (19,535,167) | (16,112,149) | (13,008,155) |
Shares purchased for treasury | (2,205,351) | (3,423,018) | (3,103,994) |
Treasury Shares, ending balance | (21,740,518) | (19,535,167) | (16,112,149) |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) | 1 Months Ended | 12 Months Ended | 31 Months Ended | ||||||
Feb. 11, 2016USD ($)shares | Dec. 31, 2015USD ($)repurchase_programshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2013USD ($) | Dec. 05, 2014USD ($) | Oct. 29, 2013USD ($) | Oct. 26, 2012USD ($) | May. 26, 2011USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Share repurchase, amount authorized | $ 500,000,000 | $ 200,000,000 | $ 400,000,000 | $ 400,000,000 | |||||
Repurchases of treasury stock | $ 249,200,000 | $ 351,500,000 | $ 240,800,000 | $ 1,221,000,000 | |||||
Number of repurchase programs | repurchase_program | 4 | ||||||||
Unexpended amount of share repurchase authorized | $ 250,800,000 | ||||||||
Shares purchased for treasury (shares) | shares | 2,205,351 | 3,423,018 | 3,103,994 | ||||||
Subsequent Event [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Repurchases of treasury stock | $ 35,400,000 | ||||||||
Shares purchased for treasury (shares) | shares | 405,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common stock, shares authorized | 400,000,000 | 400,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Current Fiscal Year End Date | --12-31 | ||
Preferred stock, shares authorized | 4,000,000 | 4,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Dividends paid | $ 0 | ||
Shares authorized to issue under 2009 Omnibus Plan | 5,100,000 | ||
Share-based compensation arrangement, awards outstanding | 732,407 | ||
Shares remaining available for grant | 3,369,867 | ||
Options and RSUs outstanding, total aggregate intrinsic value | $ 23,100,000 | ||
Options exercisable, total aggregate intrinsic value | 22,500,000 | ||
Options outstanding, less expected forfeitures, total aggregate intrinsic value | 23,100,000 | ||
Options exercised in period, total intrinsic value | 32,700,000 | $ 24,900,000 | $ 69,900,000 |
Options, total fair value of shares vested value | $ 20,100,000 | $ 11,800,000 | $ 9,500,000 |
Nonvested options and RSUs, shares | 337,989 | ||
Nonvested options and RSUs, compensation cost | $ 15,500,000 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition, years | 1 year 9 months 18 days | ||
Weighted average remaining contractual life, options outstanding, years | 3 years 8 months 12 days | ||
Weighted average remaining contractual life of vested options | 3 years 7 months | ||
Stock Options And Stock Appreciation Rights [Member] | |||
Maximum number of shares granted per participant per calendar year | 750,000 | ||
Restricted Stock And Restricted Stock Units [Member] | |||
Maximum number of shares granted per participant per calendar year | 200,000 | ||
Stock Options [Member] | |||
Options, grants in period, gross | 0 | 0 | 0 |
Contractual term of options | 10 years | ||
Stock Options [Member] | WABCO [Member] | |||
Options, grants in period, gross | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | |||
Grants during period | 78,664 | 93,070 | 112,964 |
Restricted Stock Units (RSUs) [Member] | Vest After Two Years [Member] | |||
Grants during period | 814 | 1,934 | 0 |
Restricted Stock Units (RSUs) [Member] | Vest Ratably over Three Years [Member] | |||
Grants during period | 74,394 | 78,966 | 109,254 |
Restricted Stock Units (RSUs) [Member] | Vest After Three Years [Member] | |||
Grants during period | 3,456 | 12,170 | 3,710 |
Restricted Stock Units (RSUs) [Member] | Vest After Four Years [Member] | |||
Grants during period | 0 | ||
Performance Stock Units [Member] | |||
Vesting period of stock-based award | 3 years | 3 years | 3 years |
Percentage vesting, lower range | 0.00% | ||
Percentage vesting, higher range | 200.00% | ||
Grants during period | 58,630 | 65,508 | 94,364 |
Stock-Based Compensation (Total
Stock-Based Compensation (Total Stock-Based Compensation Cost and Total Number and Type of Awards Granted and Related-Weighted Average Grant-Date Fair Values) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation (before tax effects) (value) | $ 12 | $ 15.5 | $ 13.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Exercised, Underlying Shares | (414,782) | (394,899) | (1,600,850) |
Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
RSUs Granted, Underlying Shares | 0 | 800 | 900 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
RSUs/PSUs Outstanding, beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 96.37 | $ 70.53 | |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 0 | $ 96.37 | $ 70.53 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
RSUs Outstanding , Underlying Shares, beginning balance | 252,468 | 288,467 | 352,965 |
RSUs Granted, Underlying Shares | 78,664 | 93,070 | 112,964 |
RSUs Vested , Underlying Shares | (157,585) | (114,485) | (129,755) |
RSUs Forfeited, Underlying Shares | (20,460) | (14,584) | (47,707) |
RSUs Outstanding , Underlying Shares, ending balance | 153,087 | 252,468 | 288,467 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
RSUs/PSUs Outstanding, beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 77.56 | $ 64.72 | $ 55.30 |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 116.46 | 100.78 | 68.37 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 70.81 | 64.39 | 43.70 |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | 96.95 | 75.08 | 60.86 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 101.91 | $ 77.56 | $ 64.72 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Outstanding, Underlying Shares, beginning balance | 807,654 | 1,212,533 | 2,868,192 |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | (415,699) | (396,643) | (1,602,068) |
Options Forfeited, Underlying Shares | (336) | (8,236) | (53,591) |
Options Outstanding, Underlying Shares, ending balance | 391,619 | 807,654 | 1,212,533 |
Exercisable, Underlying Shares | 379,429 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Options Outstanding, Weighted-Average Exercise Price, beginning price (in dollars per share) | $ 42.60 | $ 41.20 | $ 35.82 |
Options Granted, Weighted-Average Exercise Price (in dollars per share) | 0 | 0 | 0 |
Options Exercised, Weighted-Average Exercise Price (in dollars per share) | 41.87 | 38.01 | 31.08 |
Options Forfeited, Weighted-Average Exercise Price (in dollars per share) | 38.97 | 58.54 | 52.71 |
Options Outstanding, Weighted-Average Exercise Price, ending price (in dollars per share) | 43.37 | 42.60 | 41.20 |
Options, Exercisable, Weighted Average Exercise Price (in dollars per share) | 42.86 | ||
Options Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
RSUs Outstanding , Underlying Shares, beginning balance | 138,978 | 84,410 | 0 |
RSUs Granted, Underlying Shares | 58,630 | 65,508 | 94,364 |
RSUs Forfeited, Underlying Shares | (24,896) | (10,940) | (9,954) |
RSUs Outstanding , Underlying Shares, ending balance | 172,712 | 138,978 | 84,410 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
RSUs/PSUs Outstanding, beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 84.01 | $ 68.10 | $ 0 |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 116.38 | 103.41 | 68.10 |
RSUs/PSUs Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | 95.65 | 77.38 | 68.10 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 93.31 | $ 84.01 | $ 68.10 |
Deferred Stock Units (DSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
RSUs Outstanding , Underlying Shares, beginning balance | 15,504 | 11,280 | 12,766 |
RSUs Granted, Underlying Shares | 5,917 | 7,156 | 5,864 |
RSUs Vested , Underlying Shares | (6,432) | (2,932) | (7,350) |
RSUs Outstanding , Underlying Shares, ending balance | 14,989 | 15,504 | 11,280 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
RSUs/PSUs Outstanding, beginning of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 78.11 | $ 63 | $ 51.32 |
RSUs/PSUs Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | 129.94 | 107.70 | 75.12 |
RSUs/PSUs Vested, Weighted-Average Grant Date Fair Value (in dollars per share) | 106.59 | 75.12 | 52.39 |
RSUs/PSUs Outstanding, end of period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 86.35 | $ 78.11 | $ 63 |
WABCO employees [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Outstanding, Underlying Shares, beginning balance | 580,849 | 886,917 | 2,300,133 |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | (284,817) | (298,032) | (1,359,825) |
Options Forfeited, Underlying Shares | 0 | (8,036) | (53,391) |
Options Outstanding, Underlying Shares, ending balance | 296,032 | 580,849 | 886,917 |
Exercisable, Underlying Shares | 283,842 | ||
Trane employees [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Outstanding, Underlying Shares, beginning balance | 226,805 | 325,616 | 568,059 |
Options Granted, Underlying Shares | 0 | 0 | 0 |
Options Exercised, Underlying Shares | (130,882) | (98,611) | (242,243) |
Options Forfeited, Underlying Shares | (336) | (200) | (200) |
Options Outstanding, Underlying Shares, ending balance | 95,587 | 226,805 | 325,616 |
Exercisable, Underlying Shares | 95,587 |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Grant Date Fair Value Calculated under Black-Scholes Option-Pricing Model) (Details) - Stock Options [Member] - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, grants in period, gross | 0 | 0 | 0 |
WABCO [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, grants in period, gross | 0 | 0 | 0 |
Other Operating and Non-Opera62
Other Operating and Non-Operating Expense / (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating: | |||
Bank charges | $ 1.7 | $ 2.2 | $ 2 |
Miscellaneous taxes | 4.1 | 5.7 | 2.9 |
Other expense, net | 0.9 | 1 | 0.1 |
Other operating expense (income) | 6.7 | 8.9 | 5 |
Non-operating: | |||
Indemnification settlements, net | (1) | (4.3) | (8.8) |
Securitization and receivable discount fees | 0.3 | 0.9 | 1 |
Foreign exchange gains | (0.9) | (0.9) | (2.3) |
Other expense, net | 0 | 2.5 | 3.2 |
Other nonoperating expense (income) | $ (1.6) | $ (1.8) | $ (6.9) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 95.7 | $ 87.3 |
Products in process | 7.8 | 7.5 |
Raw materials | 109.2 | 94.8 |
Inventories at cost | 212.7 | 189.6 |
Inventory allowance reserve | $ 12.2 | $ 13 |
Property, Plant and Equipment64
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 1,035 | $ 1,062.5 | |
Less: accumulated depreciation | 637 | 637.6 | |
Net property, plant and equipment | 398 | 424.9 | |
Depreciation expense | 77.5 | 81.7 | $ 74.6 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 21.7 | 23.4 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 172.5 | 193.2 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 775.2 | 796.8 | |
Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 69.9 | 75.8 | |
Improvements In Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 65.6 | $ 49.1 |
Financing Receivables (Details)
Financing Receivables (Details) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2013EUR (€) | Dec. 31, 2014EUR (€) | |
Accounts Receivable Financing Facility [Abstract] | ||||||
Receivables sold under securitization program | $ 739.9 | € 545.7 | $ 1,050.6 | € 790.8 | ||
Servicing fees | 0.6 | 0.8 | ||||
Accounts Receivable Repurchased | 111.7 | € 88.1 | ||||
Released subordinated deposit | 38.2 | |||||
Cash paid for securitization termination | 73.5 | |||||
Notes receivable discounted or transferred | $ 80.7 | 63.8 | 42.8 | |||
Expense from discount/transfer of notes receivable | 0.2 | 0.1 | $ 0 | |||
Notes receivable | $ 53.9 | $ 52.8 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangibles | $ 19.2 | $ 19.9 | $ 10.6 |
Goodwill [Roll Forward] | |||
Balance of goodwill, beginning of year | 421 | 381.2 | |
Acquisitions | 0 | 91.6 | |
Foreign exchange translation | (43.3) | (51.8) | |
Balance of goodwill, end of year | $ 377.7 | $ 421 | $ 381.2 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets (Changes in Carrying Value of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gross intangible assets as of: | |||
Gross intangible assets, beginning of year | $ 189.1 | $ 166.8 | $ 149.4 |
Additions | 10.9 | 66.1 | 15.7 |
Disposals | (0.8) | (17.7) | (2.4) |
Foreign exchange translation | (18.4) | (26.1) | 4.1 |
Gross intangible assets, end of year | 180.8 | 189.1 | 166.8 |
Accumulated amortization as of: | |||
Accumulated amortization, beginning of year | (110.7) | (122.5) | (110) |
Amortization expense | (19.2) | (19.9) | (10.6) |
Disposals | 0.7 | 17.7 | 2.3 |
Foreign exchange translation | 11.2 | 15.6 | (4.2) |
Accumulated amortization, end of year | (118) | (110.7) | (122.5) |
Net intangible assets | 62.8 | 78.4 | |
Capitalized Software [Member] | |||
Gross intangible assets as of: | |||
Gross intangible assets, beginning of year | 95.5 | 115 | 99.1 |
Additions | 10.9 | 12.7 | 13.5 |
Disposals | (0.8) | (17.7) | (1.9) |
Foreign exchange translation | (9.8) | (14.5) | 4.3 |
Gross intangible assets, end of year | 95.8 | 95.5 | 115 |
Accumulated amortization as of: | |||
Accumulated amortization, beginning of year | (66.1) | (85.4) | (76.4) |
Amortization expense | (8.7) | (9.1) | (7.5) |
Disposals | 0.7 | 17.7 | 1.9 |
Foreign exchange translation | 6.9 | 10.7 | (3.4) |
Accumulated amortization, end of year | (67.2) | (66.1) | (85.4) |
Net intangible assets | 28.6 | ||
Other Intangible Assets [Member] | |||
Gross intangible assets as of: | |||
Gross intangible assets, beginning of year | 93.6 | 51.8 | 50.3 |
Additions | 0 | 53.4 | 2.2 |
Disposals | 0 | 0 | (0.5) |
Foreign exchange translation | (8.6) | (11.6) | (0.2) |
Gross intangible assets, end of year | 85 | 93.6 | 51.8 |
Accumulated amortization as of: | |||
Accumulated amortization, beginning of year | (44.6) | (37.1) | (33.6) |
Amortization expense | (10.5) | (12.4) | (3.1) |
Disposals | 0 | 0 | 0.4 |
Foreign exchange translation | 4.3 | 4.9 | (0.8) |
Accumulated amortization, end of year | (50.8) | (44.6) | (37.1) |
Net intangible assets | 34.2 | ||
Finite-Lived Intangible Assets [Member] | |||
Accumulated amortization as of: | |||
Amortization expense | (19.2) | $ (21.5) | $ (10.6) |
Minimum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Annual Amortization Expense | 18 | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Future Annual Amortization Expense | $ 22 |
Post-retirement Benefits (Recon
Post-retirement Benefits (Reconciliation of Benefit Obligation and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and Other Postretirement Benefit Contributions | $ 22.8 | $ 33 | $ 30.4 |
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2,015 | ||
Post-retirement benefits, long-term liability | $ 552.7 | 595 | |
Cumulative amounts recognized in other Comprehensive Income consists of: | |||
Amount in other comprehensive income expected to be recognized | 15 | ||
Foreign Pension Plans [Member] | |||
Reconciliation of benefit obligation: [Roll Forward] | |||
Obligation at beginning of year | 777.8 | 606.2 | |
Service cost | 16.7 | 12.4 | |
Interest cost | 17.6 | 21.7 | |
Participant contributions | 0.2 | 0.2 | |
Plan amendments | (1.4) | 0 | |
Actuarial loss / (gain) | (2.4) | 248.6 | |
Benefit payments | (26.2) | (31) | |
Foreign exchange effects | (66.6) | (83.9) | |
Other | (0.2) | 3.6 | |
Obligation at end of year | 715.5 | 777.8 | 606.2 |
Reconciliation of fair value of plan assets: [Roll Forward] | |||
Fair value of plan assets at beginning of year | 188.1 | 178.1 | |
Actual return on assets | (0.4) | 24.7 | |
Employer contributions | 19.7 | 29.1 | |
Participant contributions | 0.2 | 0.2 | |
Benefit payments | (26.2) | (31) | |
Foreign exchange effects | (7.5) | (11.9) | |
Other expenses | (0.6) | (1.1) | |
Fair value of plan assets at end of year | 173.3 | 188.1 | 178.1 |
Funded Status at December 31 | (542.2) | (589.7) | |
Amounts recognized in balance sheet: | |||
Noncurrent assets | 16.3 | 13.7 | |
Current liabilities | (18.9) | (20.1) | |
Noncurrent liabilities | (539.6) | (583.3) | |
Net amounts recognized in balance sheet: | (542.2) | (589.7) | |
Cumulative amounts recognized in other Comprehensive Income consists of: | |||
Prior service cost | 1.7 | 1.9 | |
Net actuarial loss | 300.1 | 340.5 | |
Total (before tax effects) | 301.8 | 342.4 | |
Health & Life Ins. Benefits [Member] | |||
Reconciliation of benefit obligation: [Roll Forward] | |||
Obligation at beginning of year | 13.3 | 14 | |
Service cost | 0.2 | 0.1 | |
Interest cost | 0.4 | 0.5 | |
Participant contributions | 0.2 | 0.3 | |
Plan amendments | 0 | 0 | |
Actuarial loss / (gain) | 3.9 | 2.6 | |
Benefit payments | (3.3) | (4.2) | |
Foreign exchange effects | 0 | 0 | |
Other | 0 | 0 | |
Obligation at end of year | 14.7 | 13.3 | 14 |
Reconciliation of fair value of plan assets: [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on assets | 0 | 0 | |
Employer contributions | 3.1 | 3.9 | |
Participant contributions | 0.2 | 0.3 | |
Benefit payments | (3.3) | (4.2) | |
Foreign exchange effects | 0 | 0 | |
Other expenses | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded Status at December 31 | (14.7) | (13.3) | |
Amounts recognized in balance sheet: | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (1.6) | (1.6) | |
Noncurrent liabilities | (13.1) | (11.7) | |
Net amounts recognized in balance sheet: | (14.7) | (13.3) | |
Cumulative amounts recognized in other Comprehensive Income consists of: | |||
Prior service cost | 0.1 | 0.1 | |
Net actuarial loss | 11.5 | 9.5 | |
Total (before tax effects) | $ 11.6 | $ 9.6 |
Post-retirement Benefits (Pensi
Post-retirement Benefits (Pension Plans with Accumulated Benefit Obligations in Excess of Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Document Fiscal Year Focus | 2,015 | |
Foreign Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 599.7 | $ 692.4 |
Accumulated benefit obligations in excess of plan assets | $ 470.1 | $ 547.7 |
Post-retirement Benefits (Total
Post-retirement Benefits (Total Post-Retirement Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan cost | $ 43.1 | $ 32.6 | $ 31.9 |
Foreign Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 16.7 | 12.4 | |
Interest cost on the projected benefit obligation | 17.6 | 21.7 | |
Defined benefit plan cost | 42 | 31.6 | 30.9 |
Health & Life Ins. Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 0.2 | 0.1 | |
Interest cost on the projected benefit obligation | 0.4 | 0.5 | |
Interest and service cost on projected benefit obligation | 0.6 | 0.6 | 0.6 |
Amortization of net loss | 0.5 | 0.4 | 0.4 |
Defined benefit plan cost | 1.1 | 1 | 1 |
Pension Benefit Costs [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost-benefits earned during period | 16.7 | 12.3 | 12.7 |
Interest cost on the projected benefit obligation | 17.6 | 21.6 | 20.8 |
Less assumed return on plan assets | (7.9) | (8.1) | (8.8) |
Amortization of prior service cost | 0.5 | (0.1) | 0.1 |
Amortization of net loss | 15.1 | 5.9 | 6.1 |
Defined benefit plan cost | $ 42 | $ 31.6 | $ 30.9 |
Post-retirement Benefits (Assum
Post-retirement Benefits (Assumptions Used in Determining the Benefit Obligation and Net Cost for Post-retirement Plans) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Pension Plans [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 2.50% | 2.43% |
Salary growth | 2.95% | 3.03% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 2.43% | 3.71% |
Salary growth | 3.03% | 3.18% |
Expected return on plan assets | 4.89% | 4.27% |
Health & Life Ins. Benefits [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.75% | 3.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.50% | 4.00% |
Post-retirement Benefits (Alloc
Post-retirement Benefits (Allocation and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Document Fiscal Year Focus | 2,015 | |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 30.00% | 28.00% |
Target Allocation Percentage, Equity Securities | 28.00% | 28.00% |
Corporate debt securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 7.00% | 11.00% |
Target Allocation Percentage, Equity Securities | 11.00% | 11.00% |
Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 47.00% | 46.00% |
Target Allocation Percentage, Equity Securities | 46.00% | 0.00% |
Investments in collective foundation [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 14.00% | 14.00% |
Target Allocation Percentage, Equity Securities | 14.00% | 14.00% |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation Percentage, Equity Securities | 2.00% | 1.00% |
Target Allocation Percentage, Equity Securities | 1.00% | 1.00% |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | $ 173.3 | $ 188.1 |
Fair Value, Inputs, Level 1 [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 52.5 | 52.7 |
Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 12.1 | 20.7 |
Fair Value, Inputs, Level 1 [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 3.3 | 2.1 |
Fair Value, Inputs, Level 2 [Member] | Insurance contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | 80.6 | 87 |
Fair Value, Inputs, Level 2 [Member] | Investments in collective foundation [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | $ 24.8 | $ 25.6 |
Post-retirement Benefits (Expec
Post-retirement Benefits (Expected Future Benefit Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,015 | |
Domestic plans without subsidy [Member] | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
2,014 | $ 1.6 | |
2,015 | 1.5 | |
2,016 | 1.4 | |
2,017 | 1.3 | |
2,018 | 1.3 | |
2019-2023 | 5.2 | |
Foreign Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 19.7 | $ 29.1 |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
2,014 | 25.9 | |
2,015 | 26 | |
2,016 | 26.7 | |
2,017 | 26.6 | |
2,018 | 27.2 | |
2019-2023 | $ 140.3 |
Post-retirement Benefits (Healt
Post-retirement Benefits (Health Care Cost Trend Rate Assumption) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Weighted average annual assumed rate of increase in the health care cost trend rate | 6.50% | 6.80% |
Weighted average annual assumed rate of increase in health care cost trend rate for next fiscal year | 7.50% | |
Weighted average annual assumed rate of increase for future years | 4.75% | |
Effect on the health care component of accumulated post-retirement obligation, one percentage point increase | $ 1 | |
Effect on the health care component of accumulated post-retirement obligation, one percentage point decrease | (0.9) | |
Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs, one percentage point increase | 0 | |
Effect on total of service and interest cost components of net periodic post-retirement health care benefit costs, one percentage point decrease | $ 0 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Jun. 25, 2015 | Dec. 31, 2014 | Dec. 17, 2014 | Jul. 08, 2011 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Jun. 25, 2015 | ||||
Debt Issuance Cost | $ 2,100,000 | ||||
Multi-currency revolving credit facility | $ 500,000,000 | ||||
Current Fiscal Year End Date | --12-31 | ||||
Long-term Debt | $ 498,000,000 | ||||
Balance outstanding | 0 | $ 306,000,000 | |||
Maximum secured indebtedness of subsidiaries | $ 150,000,000 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.45% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Balance outstanding | $ 0 | 900,000 | |||
Series A Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 150,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.83% | ||||
Debt Instrument, Maturity Date | Jun. 25, 2022 | ||||
Credit Facility Expiring in 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit facility | $ 500,000,000 | ||||
Incremental ability to borrow | 500,000,000 | 193,100,000 | |||
Credit Facility Expiring in 2016 [Member] | Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit facility | 30,000,000 | ||||
Unused letters of credit | 30,000,000 | ||||
Balance outstanding | 900,000 | ||||
Credit Facility Expiring in 2016 [Member] | Swingline Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit facility | 50,000,000 | ||||
Unused letters of credit | 50,000,000 | ||||
Total balance [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings from banks | $ 5,700,000 | 9,200,000 | |||
Credit Facility Expiring in 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility initiation date | Jul. 8, 2011 | ||||
Multi-currency revolving credit facility | $ 400,000,000 | ||||
Term of credit facility, years | 5 years | ||||
Credit Facility Expiring in 2018 [Member] | Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Balance outstanding | $ 0 | ||||
Credit Facility Expiring in 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Expiration date | Sep. 30, 2020 | ||||
Balance outstanding | $ 0 | 206,000,000 | |||
Credit Facility Expiring in 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility initiation date | Dec. 17, 2014 | ||||
Multi-currency revolving credit facility | $ 100,000,000 | ||||
Term of credit facility, years | 5 years | ||||
Expiration date | Dec. 17, 2019 | ||||
Balance outstanding | $ 0 | 100,000,000 | |||
Credit Facility Expiring in 2019 [Member] | Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Balance outstanding | 0 | 0 | |||
Long-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings from banks | 700,000 | $ 1,100,000 | |||
Short-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings from banks | $ 5,000,000 | ||||
Series B Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 200,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.08% | ||||
Debt Instrument, Maturity Date | Jun. 25, 2025 | ||||
Series C Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 150,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.18% | ||||
Debt Instrument, Maturity Date | Jun. 25, 2027 |
Warranties, Guarantees, Commi76
Warranties, Guarantees, Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Guarantor Obligations [Line Items] | |||
Current Fiscal Year End Date | --12-31 | ||
Standard warranty period | 2 years | ||
Future Minimum Rental Commitments [Abstract] | |||
2,014 | $ 16 | ||
2,015 | 14.2 | ||
2,016 | 12.6 | ||
2,017 | 11.9 | ||
2,018 | 11.3 | ||
Thereafter | 9.5 | ||
Total future minimum rental commitments | 75.5 | ||
Operating leases, net rental expense | 17 | $ 20.4 | $ 18.9 |
Bank guarantees | 46.9 | ||
Pledged inventory and receivables | 18 | 15.1 | |
Tax indemnification liability to former affiliate | 0.7 | $ 4.5 | |
Tax Litigation Claims [Member] | |||
Future Minimum Rental Commitments [Abstract] | |||
Uncollateralized bank guarantees | 42.2 | ||
Letters of Credit [Member] | |||
Future Minimum Rental Commitments [Abstract] | |||
Uncollateralized bank guarantees | 0.7 | ||
Other Items [Member] | |||
Future Minimum Rental Commitments [Abstract] | |||
Uncollateralized bank guarantees | $ 4 |
Warranties, Guarantees, Commi77
Warranties, Guarantees, Commitments and Contingencies (Summary of Changes in the Company's Product Warranty Liability) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product Warranty Accrual, Preexisting, Increase (Decrease) | $ 24.4 | $ 27.1 | $ 25.4 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance of warranty costs accrued, beginning of period | 45.2 | 51.6 | 55.2 |
Warranty claims settled | (24.3) | (28) | (30.5) |
Foreign exchange translation effects | (4.4) | (5.5) | 1.5 |
Balance of warranty costs accrued, end of period | 40.9 | 45.2 | 51.6 |
Current liability, included in current portion of warranties | 23.1 | 25.8 | 29.8 |
Long-term liability, included in other liabilities | 17.8 | 19.4 | 21.8 |
Product Warranty Expense | $ 24.4 | $ 24.9 | $ 21.4 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes and Applicable Provision for Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Document Fiscal Year Focus | 2,015 | ||||||||||
Income before income taxes: | |||||||||||
Domestic | $ 62.9 | $ 49.8 | $ 94.4 | ||||||||
Foreign | 234.6 | 307 | 546.5 | ||||||||
Income before income taxes | $ 81.3 | $ 36.1 | $ 86.8 | $ 93.3 | $ 79.3 | $ 94 | $ 95.8 | $ 87.7 | 297.5 | 356.8 | 640.9 |
Current: | |||||||||||
Domestic | (22) | 18 | 11.4 | ||||||||
Foreign | 45.2 | 33.1 | 32.2 | ||||||||
Current (benefit) / provision for income taxes | 23.2 | 51.1 | 43.6 | ||||||||
Deferred: | |||||||||||
Domestic | (3) | 3 | 101.7 | ||||||||
Foreign | (8.7) | 1.5 | (166.3) | ||||||||
Deferred (benefit) / provision for income taxes | (11.7) | 4.5 | (64.6) | ||||||||
Total provision/(benefit) | $ (20.3) | $ (5.2) | $ 18.5 | $ 18.5 | $ 12.4 | $ 9.5 | $ 17.9 | $ 15.8 | $ 11.5 | $ 55.6 | $ (21) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Actual Income Tax Expense to Statutory Federal Rate) (Details) $ / shares in Units, € in Millions, $ in Millions | Sep. 16, 2013EUR (€) | Sep. 30, 2013USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares |
Income Tax Disclosure [Abstract] | |||||||||||||
Document Fiscal Year Focus | 2,015 | ||||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||
Tax provision at statutory rate | $ 104.1 | $ 124.9 | $ 224.3 | ||||||||||
State income taxes | 1.1 | 0.7 | 0 | ||||||||||
Foreign earnings taxed at other than 35% | (43.5) | (61.1) | (70.4) | ||||||||||
Increase/(decrease) in valuation allowance | 4.5 | (1.1) | (261.9) | ||||||||||
Unremitted foreign earnings | 5.9 | 3.6 | (107.4) | ||||||||||
Belgium Excess Profit Ruling | (16.9) | (20.9) | (23.5) | ||||||||||
Tax (reversals)/contingencies | (32.6) | 3.3 | (0.4) | ||||||||||
Equity compensation | 3.8 | 4.8 | 4.4 | ||||||||||
Other, net | (3.1) | 8.6 | (0.9) | ||||||||||
Total provision/(benefit) | $ (20.3) | $ (5.2) | $ 18.5 | $ 18.5 | $ 12.4 | $ 9.5 | $ 17.9 | $ 15.8 | $ 11.5 | $ 55.6 | $ (21) | ||
Effective income tax rate | 3.90% | 15.60% | (3.30%) | ||||||||||
Unremitted foreign earnings | $ 300 | $ 15.1 | $ 300 | ||||||||||
Change in enacted tax rate | $ 2.4 | 2.4 | |||||||||||
Decrease in valuation allowance | (1.6) | (178.4) | |||||||||||
Valuation allowances | $ 13.5 | $ 9 | $ 13.5 | 9 | |||||||||
Current Fiscal Year End Date | --12-31 | ||||||||||||
European Commission fine reduction plus interest | € | € 209.8 | ||||||||||||
Income tax holiday and incentive tax credits, aggregate dollar amount | $ 11.4 | $ 15.6 | $ 7.8 | ||||||||||
Income tax holiday and incentive tax credits, tax benefits per share | $ / shares | $ 0.20 | $ 0.26 | $ 0.12 |
Income Taxes (Gross Deferred Ta
Income Taxes (Gross Deferred Tax Liabilities and Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Deferred tax liabilities: | |||
Basis difference in minority interest | $ 9.4 | $ 10.5 | |
Facilities (accelerated depreciation, capitalized interest and purchase accounting differences) | 14.4 | 19 | |
Unremitted foreign earnings | 97 | 103.3 | |
Intangibles | 16.3 | 16.8 | |
Deferred tax liabilities | 137.1 | 149.6 | |
Deferred tax assets: | |||
Foreign net operating losses and tax credits | 136 | 170.1 | |
Post-retirement and other employee benefits | 101.5 | 105.4 | |
Intangibles | 46.8 | 34 | |
Inventory | 0.6 | 1.1 | |
Warranties | 1.7 | 1.6 | |
Other | 7.7 | 6.7 | |
Deferred tax assets | 294.3 | 318.9 | |
Decrease in valuation allowance | (1.6) | $ (178.4) | |
Valuation allowances | (13.5) | (9) | |
Net deferred tax assets | 143.7 | $ 160.3 | |
Net operating loss carry forwards (NOLs) | 360 | ||
Net operating loss carry forwards (NOLs) with unlimited life | $ 335.1 | ||
Operating loss carryforwards, remaining life maximum | 7 years | ||
Deferred Tax Assets Operating Loss Carryforwards Not Subject To Expiration [Member] | |||
Deferred tax assets: | |||
Net operating loss carry forwards (NOLs) with unlimited life, valuation allowance | $ 13.5 | ||
Belgium | |||
Deferred tax assets: | |||
Net operating loss carry forwards (NOLs) with unlimited life | $ 24.9 |
Income Taxes (Reconciliation 81
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2,015 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, Beginning Balance | $ 41.5 | $ 39.3 | $ 41.9 |
Additions for tax positions related to current year | 5.1 | 2.2 | 0 |
Additions for tax positions related to prior years | 0 | 25.8 | 1.2 |
Reductions for tax positions related to current year | (27.3) | 0 | 0 |
Cash settlements | (2.3) | 0 | (2) |
Expirations of statute of limitations | (2.4) | (25.8) | (2) |
Foreign exchange | 0 | 0 | 0.2 |
Unrecognized tax benefits, Ending Balance | 14.6 | 41.5 | 39.3 |
Unrecognized tax benefits excluding European Commission fine | 16.3 | ||
Interest related to unrecognized tax benefits | 0.3 | 1 | 0.3 |
Accrued interest | 1.7 | 7 | 6 |
Expirations of statute of limitations and settlements with tax authorities | 32 | 4 | |
Decrease in valuation allowance | (1.6) | (178.4) | |
Unrecognized tax benefits that would have an impact | 14.6 | 41.5 | 39.3 |
Unremitted foreign earnings | 300 | $ 15.1 | $ 300 |
Unremitted earnings permanently reinvested outside the U.S. | $ 990 |
Tax and Indemnification Liabi82
Tax and Indemnification Liabilities Transferred from Trane to WABCO (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Examination [Line Items] | |||
Current Fiscal Year End Date | --12-31 | ||
Indemnification Liabilities Reversed | $ 1.2 | $ 4.3 | $ 8.8 |
Indemnification Liabilities Paid | $ 2.8 | ||
Document Fiscal Year Focus | 2,015 | ||
Tax indemnification liability to former affiliate | $ 0.7 | $ 4.5 | |
Estimated total amount of the contingency | $ 26.5 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Related Party Transaction [Line Items] | |||
Number of equity method investments | investment | 3 | ||
Investments in and advances to unconsolidated joint ventures | $ 24.7 | $ 19.6 | |
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Dividends from unconsolidated joint ventures | $ 27.5 | 23.4 | $ 18.3 |
Meritor WABCO [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Investments in and advances to unconsolidated joint ventures | $ 20.3 | ||
WABCO Sales to | 228.7 | 218.7 | 176 |
WABCO Purchases from | 0 | 0.7 | 0 |
WABCO Receivables from | 35.6 | 32 | |
WABCO Payables to | $ 0.2 | 0 | |
WABCO SA [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 49.00% | ||
Investments in and advances to unconsolidated joint ventures | $ 3.5 | ||
WABCO Sales to | 4.8 | 4.5 | 5.7 |
WABCO Purchases from | 3.9 | 0 | 0 |
WABCO Receivables from | 1.6 | 1.1 | |
WABCO Payables to | $ 0 | 0 | |
WABCOWURTH [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Investments in and advances to unconsolidated joint ventures | $ 0.4 | ||
WABCO Sales to | 0.2 | 0.2 | 0.2 |
WABCO Purchases from | 0.2 | 0.3 | 0.3 |
WABCO Receivables from | 0 | 0 | |
WABCO Payables to | $ 0 | 0 | |
Sanwa-Seiki [Member] | |||
Related Party Transaction [Line Items] | |||
Consolidated joint venture, ownership interest | 90.00% | ||
WABCO Sales to | $ 0 | 0 | 0 |
WABCO Purchases from | $ 25.7 | 31.3 | 33.7 |
Cummins [Member] | |||
Related Party Transaction [Line Items] | |||
Consolidated joint venture, ownership interest | 70.00% | ||
WABCO Sales to | $ 88.7 | 86 | 72.9 |
WABCO Purchases from | $ 0 | 0 | 0 |
FUWA [Member] | |||
Related Party Transaction [Line Items] | |||
Consolidated joint venture, ownership interest | 70.00% | ||
WABCO Sales to | $ 7.1 | 6.3 | 3 |
WABCO Purchases from | $ 0 | $ 0 | $ 0 |
Geographic Information (Details
Geographic Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Current Fiscal Year End Date | --12-31 | ||
Sales | $ 2,627.5 | $ 2,851 | $ 2,720.5 |
Long-lived Assets | 898 | 961.9 | 889.4 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 437.1 | 383.5 | 296.2 |
Long-lived Assets | 46.2 | 22 | 20.2 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,464.3 | 1,668.5 | 1,666.3 |
Long-lived Assets | 660.2 | 727.4 | 655.7 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 588.3 | 698.7 | 731.3 |
Long-lived Assets | 268.9 | 284.9 | 323.7 |
France | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 83.9 | 89.8 | 99.5 |
NETHERLANDS | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 96.1 | 101 | 96.6 |
Sweden | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 176.4 | 206.8 | 215.4 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 130 | 127.6 | 110.8 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 726.1 | 799 | 758 |
Long-lived Assets | 191.6 | 212.5 | 213.5 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 93.9 | 105.4 | 100.5 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 233.9 | 221.8 | 192.6 |
Long-lived Assets | 61.6 | 66 | 68.3 |
Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 73.7 | 156.7 | 180.9 |
India | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 168.8 | 127.1 | 106.1 |
Long-lived Assets | 95 | 97.2 | 97.7 |
OEM [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,949.8 | 2,099.4 | 2,043.5 |
Aftermarket [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 677.7 | $ 751.6 | $ 677 |
Geographic Concentration Risk [Member] | Sales [Member] | Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 22.00% | 19.00% | 18.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 56.00% | 59.00% | 61.00% |
Daimler [Member] | Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 10.00% | 11.00% | 12.00% |
Volvo [Member] | Customer Concentration Risk [Member] | Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 8.00% | 10.00% | 10.00% |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2014EUR (€) | |
Derivative [Line Items] | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ 0.7 | ||||
Current Fiscal Year End Date | --12-31 | ||||
Nonoperating gains | $ 0.3 | $ 0.1 | |||
Other non-operating expense, net [Member] | |||||
Derivative [Line Items] | |||||
Derivative instruments, net gain | 6 | 2.2 | |||
Foreign Exchange Forward [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of derivative | $ 117.7 | 94.5 | € 107.7 | € 77.8 | |
Average duration of derivatives | 1 month | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Derivative [Line Items] | |||||
Adjustment for the period | $ (1.3) | 0 | $ 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (0.1) | $ 0 | $ 0 |
Business Combinations (Details)
Business Combinations (Details) € in Millions, $ in Millions | May. 16, 2014USD ($) | May. 16, 2014EUR (€) | Feb. 12, 2014USD ($) | Feb. 12, 2014EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||
Contractual purchase price | $ 151 | € 111.1 | |||||
Acquisition of cash | € | 15.3 | ||||||
Payments for business combination | $ 135.9 | € 99.9 | $ 130.2 | € 95.8 | |||
Percentage of voting interest held | 96.84% | ||||||
Other Payments to Acquire Businesses | $ 5.7 | € 4.2 | |||||
Goodwill | $ 377.7 | $ 421 | $ 381.2 | ||||
Current Fiscal Year End Date | --12-31 | ||||||
Tavares [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||||||
Goodwill | $ 91.6 |
Business Combinations Schedule
Business Combinations Schedule of Recognized Identified Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 12, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 377.7 | $ 421 | $ 381.2 | |
Tavares [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 25.3 | |||
Trade receivables | 15.6 | |||
Trade payables | (5.4) | |||
Debt | (4.5) | |||
Deferred tax liabilities | (13.9) | |||
Property, plant and equipment | 3.5 | |||
Intangible assets | 51.1 | |||
Other assets purchased and liabilities assumed, net | (6.6) | |||
Identifiable net assets acquired | 65.1 | |||
Goodwill | 91.6 | |||
Noncontrolling interest | (5.7) | |||
Total purchase price allocation | $ 151 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - May. 16, 2014 € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Acquisition [Line Items] | ||
Other Payments to Acquire Businesses | $ 5.7 | € 4.2 |
Subsequent Events (Details)
Subsequent Events (Details) € in Millions, $ in Millions | Feb. 01, 2016USD ($) | Feb. 12, 2014USD ($) | Feb. 12, 2014EUR (€) |
Subsequent Event [Line Items] | |||
Contractual purchase price | $ 151 | € 111.1 | |
Acquisition of cash | € | € 15.3 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Acquisition agreement date | Feb. 1, 2016 | ||
Contractual purchase price | $ 74.5 | ||
Acquisition of cash | $ 7.3 |
Quarterly Data (Unaudited) (Det
Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 670.6 | $ 643.6 | $ 661.1 | $ 652.2 | $ 679.1 | $ 707.3 | $ 735 | $ 729.5 | $ 2,627.5 | $ 2,851 | $ 2,720.5 |
Cost of sales | 470.8 | 479 | 453.6 | 438.6 | 474.9 | 487.3 | 505.3 | 511.6 | 1,842 | 1,979.3 | 1,911.4 |
Gross Profit | 199.8 | 164.6 | 207.5 | 213.6 | 204.2 | 220 | 229.7 | 217.9 | 785.5 | 871.7 | 809.1 |
Income before income taxes | 81.3 | 36.1 | 86.8 | 93.3 | 79.3 | 94 | 95.8 | 87.7 | 297.5 | 356.8 | 640.9 |
Income tax expense | (20.3) | (5.2) | 18.5 | 18.5 | 12.4 | 9.5 | 17.9 | 15.8 | 11.5 | 55.6 | (21) |
Net income attributable to Company | $ 98.7 | $ 38.8 | $ 65.8 | $ 71.9 | $ 65.1 | $ 82 | $ 75 | $ 69.4 | $ 275.2 | $ 291.5 | $ 653.2 |
Net income per common share | |||||||||||
Basic (in dollars per share) | $ 1.73 | $ 0.67 | $ 1.13 | $ 1.23 | $ 1.11 | $ 1.38 | $ 1.24 | $ 1.13 | $ 4.76 | $ 4.87 | $ 10.46 |
Diluted (in dollars per share) | $ 1.71 | $ 0.67 | $ 1.12 | $ 1.22 | $ 1.10 | $ 1.37 | $ 1.23 | $ 1.12 | $ 4.72 | $ 4.81 | $ 10.31 |
Unremitted foreign earnings | $ 300 | $ 15.1 | $ 300 | ||||||||
Change in valuation allowance | 1.6 | $ 178.4 | |||||||||
Valuation allowances | $ (13.5) | $ (9) | $ (13.5) | $ (9) |
SCHEDULE II - VALUATION AND Q91
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts receivable - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reserve deducted from assets: | |||
Balance Beginning of Period | $ 5,524 | $ 4,999 | $ 3,581 |
Additions Charged to Expense | 974 | 384 | 1,346 |
Deductions | (159) | (817) | (66) |
Valuation Allowances and Reserves, Reserves of Businesses Acquired | 1,463 | ||
Foreign Currency Translation Effects | (444) | (505) | 138 |
Balance End of Period | $ 5,895 | $ 5,524 | $ 4,999 |