Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 20, 2020 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-33332 | |
Entity Central Index Key | 0001390844 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Tax Identification Number | 20-8481962 | |
Entity Address, Address Line One | 1220 Pacific Drive | |
Entity Address, Address Line Two | Auburn Hills | |
Entity Address, State or Province | MI | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | WBC | |
Entity Incorporation, State or Country Code | DE | |
Entity Registrant Name | WABCO Holdings Inc. | |
Country Region | 41 | |
City Area Code | 315 | |
Local Phone Number | 813-300 | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,375,551 | |
Entity Address, Postal Zip Code | 48326-1589 | |
Other Address [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | 1 Giacomettistrasse | |
Entity Address, Address Line Two | Bern | |
Entity Address, Address Line Three | CH | |
Entity Address, Postal Zip Code | 3000-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 745.7 | $ 932.9 |
Cost of sales | 533.8 | 660 |
Gross profit | 211.9 | 272.9 |
Costs and expenses: | ||
Selling and administrative expenses | 114.1 | 120.4 |
Research, development and engineering expenses | 51.3 | 48.4 |
Other operating income, net | (0.2) | (1.1) |
Operating income | 46.7 | 105.2 |
Equity income of unconsolidated joint ventures, net | 0.5 | 0.6 |
Other non-operating expense, net | (12.3) | (5.9) |
Interest (expense)/income, net | (0.1) | 0.1 |
Income before income taxes | 34.8 | 100 |
Income tax expense | 7.4 | 12.1 |
Net income including noncontrolling interests | 27.4 | 87.9 |
Less: net income attributable to noncontrolling interests | 2.2 | 3.7 |
Net income attributable to Company | $ 25.2 | $ 84.2 |
Net income attributable to Company per common share | ||
Basic (in usd per share) | $ 0.49 | $ 1.64 |
Diluted (in usd per share) | 0.49 | 1.64 |
Cash dividends per share of common stock (in usd per share) | $ 0 | $ 0 |
Weighted average common shares outstanding | ||
Basic (in shares) | 51,321,512 | 51,233,141 |
Diluted (in shares) | 51,395,851 | 51,330,942 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income including noncontrolling interests | $ 27.4 | $ 87.9 |
Other comprehensive income: | ||
Currency translation adjustments | (63.2) | 14.4 |
Pension and post-retirement benefit plan adjustments, net | 12 | 7.7 |
Total other comprehensive (loss)/ income | (51.2) | 22.1 |
Comprehensive income | (23.8) | 110 |
Less: comprehensive (loss)/income attributable to noncontrolling interests | (2) | 3.7 |
Comprehensive (loss)/income attributable to Company | $ (21.8) | $ 106.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 549.9 | $ 891.8 |
Short-term investments | 65.4 | 67.6 |
Accounts receivable, less allowance for doubtful accounts of $10.7 in 2020 and $12.3 in 2019 | 524.6 | 523.3 |
Inventories, net | 361.5 | 292.9 |
Guaranteed notes receivable | 53.8 | 35 |
Other current assets | 125.3 | 103.7 |
Total current assets | 1,680.5 | 1,914.3 |
Property, plant and equipment, net | 573.5 | 593 |
Operating lease right–of–use assets | 94.6 | 100.8 |
Goodwill | 792.1 | 802.5 |
Deferred tax assets | 280.4 | 275 |
Investments in unconsolidated joint ventures | 11.9 | 11.5 |
Intangible assets, net | 482 | 226.9 |
Other assets | 101.9 | 113.1 |
TOTAL ASSETS | 4,016.9 | 4,037.1 |
Current liabilities: | ||
Accounts payable | 217.6 | 185 |
Accrued payroll | 113.7 | 108.3 |
Current portion of warranties | 32.8 | 28.1 |
VAT payable | 21.6 | 11.4 |
Accrued expenses | 63.4 | 68.7 |
Promotion and customer incentives | 18.8 | 24.8 |
Accrued income tax | 30.2 | 24.1 |
Other Liabilities, Current | 113.2 | 121.1 |
Total current liabilities | 611.3 | 571.5 |
Long-term debt | 813.9 | 828.3 |
Operating lease liabilities | 69.2 | 74.2 |
Pension and post-retirement benefits | 808.9 | 821.8 |
Deferred tax liabilities | 72 | 71.2 |
Long-term income tax liabilities | 156.8 | 156.9 |
Other liabilities | 75.4 | 77.1 |
TOTAL LIABILITIES | 2,607.5 | 2,601 |
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: 79,237,625 in 2020; 79,147,135 in 2019; and shares outstanding: 51,374,175 in 2020; 51,267,324 in 2019 | 0.8 | 0.8 |
Capital surplus | 899.3 | 902.1 |
Treasury stock, at cost: 27,863,450 shares in 2020; 27,879,811 shares in 2019 | (2,185) | (2,186.3) |
Retained earnings | 3,237 | 3,212.3 |
Accumulated other comprehensive loss | (635.9) | (588.7) |
Total shareholders’ equity | 1,316.2 | 1,340.2 |
Noncontrolling interests | 93.2 | 95.9 |
Total equity | 1,409.4 | 1,436.1 |
TOTAL LIABILITIES AND EQUITY | $ 4,016.9 | $ 4,037.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 12.3 | |
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 | 79,237,625 | |
Common stock, shares outstanding | 51,374,175 | 51,267,324 |
Treasury stock, shares | (27,863,450) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income including noncontrolling interests | $ 27.4 | $ 87.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 23.5 | 25.9 |
Change in fair value of non-marketable equity securities | 4.7 | 0 |
Amortization of intangibles | 6.1 | 6.6 |
Equity in earnings of unconsolidated joint ventures, net of dividends received | (0.5) | (0.6) |
Non-cash stock compensation | 2.6 | 4.1 |
Non-cash interest expense and debt issuance cost amortization | 2.6 | 2.6 |
Deferred income tax benefit | (11.9) | (10.4) |
Pension and post-retirement benefit expense | 18 | 16.4 |
Foreign currency effects on changes in monetary assets/liabilities | 5.5 | 4.9 |
Unrealized loss/(gain) on revaluation of foreign currency forward contracts | 0.3 | (1.6) |
Other | 1.9 | (0.4) |
Changes in assets and liabilities: | ||
Accounts receivable, net | (16.8) | (68.6) |
Inventories, net | (79.2) | (40.6) |
Accounts payable | 42.4 | 47.3 |
Other accrued liabilities and taxes | 17.8 | 17.2 |
Other current and long-term assets | (51.2) | (24.9) |
Other long-term liabilities | 0.4 | (1.4) |
Pension and post-retirement benefit contributions | (5.7) | (5.6) |
Net cash (used)/provided by operating activities | (12.1) | 58.8 |
Investing activities: | ||
Purchases of property, plant and equipment | (33.8) | (39.1) |
Investments in capitalized software | (1.2) | (1.4) |
Purchases of short-term investments and repurchase agreements | (155.3) | (267.9) |
Sales and maturities of short-term investments and repurchase agreements | 153.1 | 298.6 |
Investments in unconsolidated joint ventures | 0 | (0.3) |
Payments For Asset Acquisitions | 265 | 0 |
Net cash used by investing activities | (302.2) | (10.1) |
Financing activities: | ||
Net borrowings of short-term debt | 0 | 85.2 |
Purchases of treasury stock | 0 | (30.6) |
Taxes withheld and paid on employee stock award vestings | (5.5) | (4.8) |
Dividends to noncontrolling interest holders | (0.6) | (2.3) |
Proceeds from noncontrolling interest holders | 0 | 3.9 |
Proceeds from exercise of stock options | 0.3 | 0.5 |
Net cash (used)/provided by financing activities | (5.8) | 51.9 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (21.9) | (1) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (342) | 99.6 |
Cash, cash equivalents and restricted cash at beginning of period | 892.4 | 504.2 |
Cash, cash equivalents and restricted cash at end of period | 550.4 | 603.8 |
Cash paid during the period for: | ||
Interest | 5.5 | 6.2 |
Income taxes | 16.3 | 12.4 |
Increase in capital expenditures included in accounts payable and other accrued liabilities | 0.4 | 9.7 |
Cash and cash equivalents | 549.9 | 603.3 |
Cash, cash equivalents and restricted cash at end of period | $ 550.4 | $ 603.8 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock and capital surplus | Treasury stock | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interests |
Beginning Balance at Dec. 31, 2018 | $ 1,265.2 | $ 899.3 | $ (2,159.3) | $ 2,960.8 | $ (524) | $ 88.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income including noncontrolling interests | 87.9 | 84.2 | ||||
Net income attributable to noncontrolling interests | (3.7) | 3.7 | ||||
Other comprehensive income (loss) | 22.1 | 22.1 | 0.7 | |||
Treasury stock purchased | (30.6) | |||||
Stock options exercised | 0.1 | |||||
Treasury stock reissued | 2.7 | (2.5) | ||||
Stock-based compensation | (0.6) | |||||
Dividends paid | (2.3) | |||||
Proceeds from minority interest shareholders | 3.9 | |||||
Changes in ownership of noncontrolling interests | 1.2 | 1 | ||||
Ending Balance at Mar. 31, 2019 | 1,344.4 | 897.6 | (2,187.2) | 3,050.9 | (510.3) | 93.4 |
Beginning Balance at Dec. 31, 2019 | 1,436.1 | 903 | (2,186.3) | 3,212.3 | (588.7) | 95.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income including noncontrolling interests | 27.4 | 25.2 | ||||
Net income attributable to noncontrolling interests | (2.2) | 2.2 | ||||
Other comprehensive income (loss) | (51.2) | (47.3) | (4.2) | |||
Treasury stock purchased | 0 | |||||
Stock options exercised | 0.1 | |||||
Treasury stock reissued | 1.3 | (1.3) | ||||
Stock-based compensation | (2.9) | |||||
Dividends paid | (0.7) | |||||
Proceeds from minority interest shareholders | 0 | |||||
Changes in ownership of noncontrolling interests | 0 | 0 | ||||
Ending Balance at Mar. 31, 2020 | $ 1,409.4 | $ 900.2 | $ (2,185) | $ 3,237 | $ (636) | $ 93.2 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation WABCO Holdings Inc. and its subsidiaries (collectively WABCO, Company, we, or our) engineer, develop, manufacture and sell integrated systems controlling advanced braking, stability, suspension, steering, transmission automation, as well as air compression and processing primarily for commercial vehicles. WABCO’s largest selling products are pneumatic anti-lock braking systems (ABS), electronic braking systems (EBS), electronic stability control (ESC) systems, brake controls, automated manual transmission systems (AMT), 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 primarily to two groups of customers around the world: original equipment manufacturers (OEMs) including truck and bus, trailer, car and off-highway, and commercial vehicle aftermarket distributors of replacement parts and services as well as commercial vehicle fleet operators for management solutions and services. We also provide remanufacturing services globally. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, including normal recurring items, considered necessary for a fair presentation of financial data have been included. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the entire year. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes for the year ended December 31, 2019 , included in the Company’s Annual Report on Form 10-K. On March 28, 2019, WABCO entered into an Agreement (the Merger Agreement) and Plan of Merger with ZF Friedrichshafen AG (ZF), a stock corporation organized and existing under the laws of the Federal Republic of Germany, and Verona Merger Sub Corp., a Delaware corporation and indirect wholly owned subsidiary of ZF, pursuant to which ZF will acquire 100% of the issued and outstanding shares of WABCO common stock (the Merger). The Merger Agreement was adopted by WABCO’s shareholders at the June 27, 2019 special meeting of shareholders, whereby holders representing 68.4% of the Company’s outstanding shares voted in favor of adopting the Merger Agreement. All approvals from regulatory authorities required to close the Merger have been received with the exception of the Chinese State Administration for Market Regulation (SAMR). The consummation of the Merger remains subject to customary closing conditions and the remaining regulatory approval from the Chinese SAMR. In connection with the Antitrust Division of the United States Department of Justice's review of the Merger and pursuant to the settlement order approved by the U.S. District Court for the District of Columbia, WABCO is divesting the Company's steering components business, R.H. Sheppard Co., Inc., for which the Company entered into a definitive agreement to sell on January 30, 2020. The closing of the divestiture is subject to the consummation of the Merger and other customary closing conditions. The Company has incurred $ 3.5 million and $4.1 million of costs related to the Merger and the divestiture of Sheppard for the three months ended March 31, 2020 and 2019 , respectively, primarily for legal and financial advisory services that are included in selling, general and administrative expenses. 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 WABCO has one reportable segment. All majority-owned subsidiaries of WABCO are included in the condensed consolidated financial statements and intercompany transactions are eliminated upon consolidation. WABCO’s investments in unconsolidated joint ventures are included at cost plus its equity in undistributed earnings less dividends and changes in foreign currency in accordance with the equity method of accounting and reflected as investments in unconsolidated joint ventures in the condensed consolidated balance sheets. The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. 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. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Notes 2 and 17 to the Consolidated Financial Statements for the year ended December 31, 2019 , in the Company’s Annual Report on Form 10-K, describe the most significant accounting estimates and policies used in the preparation of the Consolidated Financial Statements. Actual results in these areas could differ materially from management’s estimates. After consideration of the COVID-19 pandemic, the Company calculated its interim income tax expense for the three months ended March 31, 2020 based on the actual year-to-date effective tax rate as discussed in Note 14. Aside from this and the adoption of ASC 326 as described in Note 6, there have been no other significant changes in the Company’s assumptions regarding critical accounting estimates during the first three months of 2020 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Standards In November 2019, the FASB issued Accounting Standards Update (ASU) 2019-08 Compensation - Stock Compensation (ASC 718) and Revenue from Contracts with Customers (ASC 606) . This ASU requires an entity measure and classify share-based payment awards granted to a customer by applying the guidance in ASC 718. The amount of the share-based payment award that is recorded as a reduction of the transaction price is required to be measured at the grant-date fair value in accordance with ASC 718. The amendments in this update were effective for the Company for annual and interim periods beginning in fiscal 2020. There was no impact on the Company's condensed consolidated financial statements resulting from the adoption of this guidance. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This guidance was effective for the Company for annual and interim periods beginning in fiscal 2020. There was no material impact on the Company's condensed consolidated financial statements resulting from the adoption of this guidance. In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The standard eliminates the requirement to measure the implied fair value of goodwill by assigning the fair value of a reporting unit to all assets and liabilities within that unit (the Step 2 test) from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited by the amount of goodwill in that reporting unit. The standard was effective for the Company beginning January 1, 2020 and will be applied to the annual or any interim goodwill impairment assessment after that date. There was no material impact on the Company's condensed consolidated financial statements resulting from the adoption of this guidance. In June 2016, the FASB issued ASU No. 2016–13 Financial Instruments–Credit Losses (Topic 326) to replace the incurred loss model for financial assets measured at amortized cost and require entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. For trade and other receivables, loans and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The new guidance was effective for the Company beginning January 1, 2020 and was applied through a cumulative-effect adjustment to retained earnings as of the period of adoption. Upon adoption, the Company recorded an adjustment of $0.8 million to retained earnings and the allowance for doubtful accounts. There was no material impact on the Company's other financial assets resulting from the adoption of this guidance. Pending Adoption of Recently Issued Accounting Standards In January 2020, the FASB issued ASU 2020-01 Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) . This ASU clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The guidance is effective for the Company for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted including early adoption in an interim period. The Company does not expect the adoption of this guidance to have a material impact on the condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 Simplifying the Accounting for Income Taxes (ASC740) . This ASU enhances and simplifies various aspects of the income tax accounting guidance in ASC 740, including requirements related to hybrid tax regimes, the tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of entities not subject to tax, the intraperiod tax allocation exception to the incremental approach, ownership changes in investments - changes from a subsidiary to an equity method investment, interim-period accounting for enacted changes in tax law, and the year-to-date loss limitation in interim-period tax accounting. This guidance is effective for the Company for annual and interim periods in fiscal 2021; however, early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU removes the requirements to disclose: amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year; the amount and timing of plan assets expected to be returned to the employer; and the effects of a one-percentage point change in assumed health care cost trend rates. The ASU requires disclosure of an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted for all entities and the amendments in this update are required to be applied on a retrospective basis to all periods presented. The Company is currently evaluating this guidance to determine the impact on its disclosures. We do not expect the pending adoption of other recently issued accounting standards to have an impact on the condensed consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customer Revenue from Contracts with Customer | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customer | Revenue from Contracts with Customers The Company follows the guidance under ASC 606 effective January 1, 2018. Revenue under ASC 606 is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer, which is typically at a point in time. Estimates of variable consideration are included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once the uncertainty is resolved. Disaggregation of Revenue The following table presents product sales disaggregated by end-market: Three Months (Amount in millions) 2020 2019 OEM $ 549.9 $ 703.8 Aftermarket 195.8 229.1 Total sales $ 745.7 $ 932.9 The following table presents product sales disaggregated by geography, based on the billing addresses of customers: Three Months (Amount in millions) 2020 2019 United States $ 160.1 $ 219.7 Europe 384.4 461.7 Other (1) 201.2 251.5 Total sales $ 745.7 $ 932.9 (1) Sales to other regions includes revenues primarily from Japan, China, Brazil and India. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to performance obligations to be satisfied in the future. Contract assets and contract liabilities were not material as of March 31, 2020 and December 31, 2019 . Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2020 and 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | The table below presents the changes in accumulated other comprehensive loss for the three month periods ended March 31, 2020 and 2019 . Three Months (Amount in millions) 2020 2019 Foreign currency translation adjustments : Balance at beginning of period $ (257.9 ) $ (243.0 ) Adoption of ASU 2018-02 — (7.1 ) Adjustment for the period (58.6 ) 14.4 Balance at end of period (1) (316.5 ) (235.7 ) Losses on intra-entity transactions: Balance at beginning of period (12.1 ) (11.9 ) Adjustment for the period (0.6 ) — Balance at end of period (2) (12.7 ) (11.9 ) Pension and post-retirement plans: Balance at beginning of period (318.7 ) (269.1 ) Adoption of ASU 2018-02 — (1.3 ) Other comprehensive loss before reclassifications 6.7 3.1 Amounts reclassified to earnings, net (3) 5.3 4.6 Balance at end of period (306.7 ) (262.7 ) Accumulated other comprehensive loss at end of period $ (635.9 ) $ (510.3 ) (1) Includes an accumulated loss of $2.2 million , net of taxes of $0.9 million as of March 31, 2020 and an accumulated loss of $9.7 million , net of taxes of $1.2 million , as of March 31, 2019 related to foreign currency gains and losses on Euro-denominated debt and foreign currency contracts designated and qualifying as partial hedges of a net investment. This includes the one-time adjustment of currency translation related to the adoption of ASU 2018-02 of $7.1 million disclosed above. (2) 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. (3) Consists of amortization of prior service cost and actuarial losses that are included as a component of pension and post-retirement expense within other non-operating expenses. The amounts reclassified to earnings are recorded net of tax of $2.2 million and $1.9 million for the three month periods ended March 31, 2020 and 2019 |
Inventory Inventory
Inventory Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventories, net The components of inventories are as follows: (Amounts in millions) As of March 31, 2020 As of December 31, 2019 Finished products $ 190.0 $ 153.9 Products in process 13.8 11.9 Raw materials 174.8 143.1 Inventories, gross 378.6 308.9 Less: inventory allowances (17.1 ) (16.0 ) Inventories, net $ 361.5 $ 292.9 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. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The Company adopted the guidance under ASC 326 as of January 1, 2020, whereby an estimate of the lifetime expected credit loss will be recognized immediately upon the origination of a financial asset, and will be adjusted for subsequently in each reporting period. The calculation of the loss allowance under ASC 326 represents the Company's current expected loss based on historical information, current conditions and future expectations of these conditions. The Company estimates and measures its allowance for credit losses considering the credit ratings of its customers for trade receivables or issuing banks for guaranteed notes receivables, the market-implied probability of default (MIPD) for each credit rating level, as well as the Company's historical experience with defaults on its financial assets. Credit ratings are developed based on credit scores obtained from external credit agencies. The MIPD is determined based on short-term market debt yields and option-adjusted credit spreads observed in publicly traded debt issued by companies within similar industries. The Company also considers various other factors to adjust the reserve balance including current economic conditions, future expectations and knowledge of asset specific risk characteristics. As of March 31, 2020 , the allowance for credit losses over trade accounts receivables under ASC 326 amounted to $11.7 million . Allowances for credit losses on other financial assets including guaranteed notes receivables were immaterial. The following table summarizes the activity in the allowance for credit losses over trade accounts receivables for the three months ended March 31, 2020 and 2019 : Three Months (Amount in millions) 2020 2019 Balance at beginning of period $ 12.3 $ 10.7 Provisions 1.1 0.3 Write-offs, net (0.6 ) (0.2 ) Adoption of ASC 326 (0.8 ) — FX translation (0.3 ) (0.1 ) Balance at end of period $ 11.7 $ 10.7 The increase in provision for the allowance for credit losses for the three months ended March 31, 2020 |
Guaranteed Notes Receivable
Guaranteed Notes Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable Financing Facility [Abstract] | |
Guaranteed Notes Receivable | Guaranteed Notes Receivable The Company holds guaranteed notes receivable from 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 drafts 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 first three months of 2020 and 2019 were $ 36.9 million and $41.7 million , respectively. The expenses related to discounting were immaterial for the three months ended March 31, 2020 and 2019 . 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 and was equal to their carrying amounts of $ 53.8 million and $35.0 million as of March 31, 2020 and December 31, 2019 , respectively. The increase in the carrying amount of the guaranteed notes receivable as of March 31, 2020 is primarily due to a lower volume of notes receivable that were discounted or transferred during the first quarter of 2020 . The Company monitors the credit quality of both the drawers of the drafts 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. The Company is not expecting future credit losses based on a review of the various credit quality indicators described above and, as discussed in Note 6, the expected credit loss related to the guaranteed notes receivable as of March 31, 2020 was immaterial. No loss provision against these receivables was established as of December 31, 2019 as the Company has not experienced any historical losses. |
Net Income Attributable to Comp
Net Income Attributable to Company per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Company per Share | Net Income Attributable to Company per Share Basic net income attributable to Company per share has been computed using the weighted average number of common shares outstanding. The average number of outstanding shares of common stock used in computing diluted net income attributable to Company 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 exercise of options 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, 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, DSUs and PSUs whose assumed proceeds were greater than the average price of the Company’s common stock. Three Months 2020 2019 Weighted average incremental shares included 74,339 97,801 Shares excluded due to anti-dilutive effect — 33,655 |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the three month periods ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Total Shares Treasury Stock Net Shares Outstanding Total Shares Treasury Stock Net Shares Outstanding Balance at beginning of period 79,147,135 (27,879,811 ) 51,267,324 79,018,266 (27,653,341 ) 51,364,925 Shares issued upon exercise of stock options 1,228 4,291 5,519 8,294 16,500 24,794 Shares issued upon vesting of RSUs 35,832 4,581 40,413 38,213 6,143 44,356 Shares issued for DSUs — — — 901 — 901 Shares issued upon vesting of PSUs 53,430 7,489 60,919 56,470 11,771 68,241 Shares purchased for treasury — — — — (272,000 ) (272,000 ) Balance at end of period 79,237,625 (27,863,450 ) 51,374,175 79,122,144 (27,890,927 ) 51,231,217 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 condensed consolidated balance sheets. Upon the exercise or vesting of an equity incentive award, the Company may reissue shares from treasury stock or may elect to issue new shares. 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. Gains on the reissuance of treasury shares are recorded as capital surplus. Losses on the reissuance of treasury shares are charged to capital surplus to the extent of previous gains recorded, and to retained earnings for any losses in excess. The Company has reissued, on a cumulative basis, a total of 172,722 treasury shares related to certain employee vestings under its equity incentive program through March 31, 2020 . On December 7, 2018, the Board of Directors authorized the repurchase of shares of common stock for an amount of $600.0 million through December 31, 2020. As of March 31, 2020 , the Company has $569.4 million remaining under this repurchase authorization. There was no repurchase activity for the first three months of 2020 as the Company has suspended its share repurchase program due to the pending Merger. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Schuldschein Loans On March 22, 2018 the Company, through a European subsidiary, entered into a series of six individual senior unsecured loan agreements with an aggregate principal amount of €300.0 million (collectively, the Schuldschein Loans), as follows : (Amounts in millions) Face value Coupon Maturity date Fixed rate term loan - Series A € 10.0 0.85% March 31, 2021 Fixed rate term loan - Series B 60.0 1.15% March 31, 2022 Fixed rate term loan - Series C 80.0 1.43% March 31, 2023 Floating rate term loan - Series A 50.0 6-month EURIBOR plus 80 bps March 31, 2021 Floating rate term loan - Series B 60.0 6-month EURIBOR plus 90 bps March 31, 2022 Floating rate term loan - Series C 40.0 6-month EURIBOR plus 100 bps March 31, 2023 € 300.0 The Company paid approximately €1.1 million of debt issuance costs in connection with the Schuldschein Loans, which has been presented in the condensed consolidated balance sheets as a direct reduction of the related debt liability. Interest under the fixed rate tranches is paid on March 31 of each year, and commenced on March 31, 2019. Interest under the floating rate tranches is paid semi-annually on March 31 and September 30 of each year, and commenced on September 30, 2018. As of March 31, 2020 , the outstanding debt balance net of unamortized debt issuance costs was €299.4 million ( $329.9 million at March 31, 2020 exchange rates) of which €100.0 million ( $110.2 million at March 31, 2020 exchange rates) was used for the recapitalization of affiliated entities. The remaining proceeds were used to fund the acquisition of the distribution rights from Meritor as discussed in Note 19. Subject to certain conditions, the Company may, at its option, prepay all or any part of the Schuldschein Loans in an amount equal to the higher of the outstanding nominal amount of such loans (or the part of it) and the discounted value. The Schuldschein Loans contain 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 of not more than three times at the end of each fiscal quarter based upon the preceding twelve consecutive months, as well as a consolidated EBITDA to consolidated net interest expense ratio of not less than three times at the end of each fiscal quarter based upon the preceding twelve consecutive months. The Company was in compliance with all of the covenants as of March 31, 2020 . Senior EUR Notes On November 15, 2016 , the Company issued an aggregate amount of €440 million of senior unsecured notes (collectively, the Senior EUR Notes) as follows: (Amounts in millions) Face value Coupon Maturity date Series D Notes € 190.0 0.84 % November 15, 2023 Series E Notes 80.0 1.20 % November 15, 2026 Series F Notes 170.0 1.36 % November 15, 2028 € 440.0 The Company paid approximately $1.4 million of debt issuance costs in connection with the Senior EUR Notes, which has been presented in the condensed consolidated balance sheets as a direct reduction of the related debt liability. Interest on the Senior EUR Notes is payable semi-annually on January 1 and July 1 of each year, and commenced on July 1, 2017. As of March 31, 2020 , the outstanding debt balance net of unamortized debt issuance costs was €439.2 million ( $483.9 million at March 31, 2020 exchange rates). This debt balance included a revaluation loss of $8.9 million , net of taxes of $4.1 million , that has been recognized in cumulative translation adjustment within accumulated other comprehensive income. See Note 4 for further discussion. The proceeds from the Senior EUR Notes were utilized to repay outstanding balances on our revolving credit facilities, fund our share repurchase program, finance acquisitions and meet general financing requirements. Subject to certain conditions, the Company may, at its option, prepay all or part of the Senior EUR Notes plus any accrued and unpaid interest to the date of prepayment and certain penalties as defined in the note purchase agreement (the EUR 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 EUR 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 EUR Note Purchase Agreement contains customary affirmative and negative covenants, and financial covenants consisting of a consolidated net indebtedness to consolidated EBITDA ratio of not more than three times at the end of each fiscal quarter based upon the preceding twelve consecutive months, as well as a consolidated EBITDA to consolidated net interest expense ratio of not less than three times at the end of each fiscal quarter based upon the preceding twelve consecutive months. The EUR 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 EUR Note Purchase Agreement. The Company was in compliance with all of the covenants as of March 31, 2020 . The Company also agreed to indemnify the note purchasers holding Senior EUR Notes that are subject to a swap agreement for certain potential losses associated with swap breakage resulting from a prepayment of the Senior EUR Notes or from an acceleration of the Senior EUR Notes as a result of an event of default. Revolving Credit Facilities Effective June 28, 2018, the Company amended its existing multi–currency unsecured revolving credit facility, increasing the maximum principal amount of borrowings under the facility from $400 million to $600 million (the 2018 Facility), with an option to increase up to an additional $250 million . The 2018 Facility also extended the scheduled maturity date of our revolving credit facility to June 28, 2023, subject to two one –year extension options of which the first one was exercised on May 28, 2019 and extended the maturity date to June 28, 2024. Under the 2018 Facility, the Company may borrow, on a revolving basis, outstanding loans in an aggregate principal amount at any one time not in excess of $600 million and the 2018 Facility also provides for up to $50 million for standby letters of credit and swing line loans. As of March 31, 2020 and December 31, 2019 , there were no outstanding borrowings on the revolving credit facility. There were also no outstanding letters of credit or swing line loans. The proceeds from borrowings under the 2018 Facility are available to fund acquisitions, provide working capital and for other general corporate purposes. Interest on loans under the 2018 Facility is calculated at a rate per annum equal to an applicable margin which can vary from 0.30% to 0.85% based on the Company's leverage ratio plus LIBOR for loans denominated in U.S. Dollars and EURIBOR for loans denominated in Euros (SIBOR for loans denominated in Singapore Dollars and HIBOR for loans denominated in Hong Kong Dollars). The 2018 Facility contains terms and provisions (including representations, covenants and conditions) customary for transactions of this type. Financial covenants include a leverage test (consolidated net indebtedness not to exceed three times adjusted four quarter trailing consolidated EBITDA) and a maximum subsidiary indebtedness test. The maximum subsidiary indebtedness test limits the total aggregate amount of indebtedness of the Company's subsidiaries, excluding indebtedness under the 2018 Facility, to 20% of consolidated total assets as at the end of the most recently ended financial year, of which not more than $150 million may be secured, provided however that the Company may incur additional subsidiary indebtedness subject to, inter alia, providing additional corporate guarantees. Other undertakings and covenants include delivery of financial reports and other information, compliance with laws including environmental laws and permits, the Employee Retirement Income Security Act (ERISA) and U.S. regulations, the Foreign Account Tax Compliance Act (FATCA), sanctions-related obligations, negative pledge, limitations on mergers and sales of assets, change of business and use of proceeds. We were in compliance with all of the covenants as of March 31, 2020 . Other Debt As of March 31, 2020 and December 31, 2019 , the Company had no additional borrowings from banks. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation expense in the condensed consolidated statements of operations for equity awards based on the grant date fair value, determined by the closing market price of the Company’s common stock on the date of grant. As part of its equity incentive program, the Company grants PSUs, the vesting of which would occur, if at all, at levels that depend upon the achievement of three-year cumulative goals tied to earnings. The Company assesses the expected achievement levels at the end of each reporting period. 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. As of March 31, 2020 , the Company has accrued for compensation expense on the PSUs based on the expected achievement levels for the outstanding awards. The Company also grants DSUs to its 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. Total stock-based compensation cost recognized during the three month periods ended March 31, 2020 and 2019 was as follows: Three Months (Amount in millions) 2020 2019 Stock-based compensation $ 2.6 $ 4.1 The total number and type of awards granted during the periods presented and the related weighted-average grant-date fair values were as follows: Three Months 2020 2019 Underlying Shares Weighted Average Grant Date Fair Value Underlying Shares Weighted Average Grant Date Fair Value RSUs Granted 58,976 $ 135.96 66,877 $ 117.49 PSUs Granted 58,976 $ 135.96 66,877 $ 117.49 Total Awards 117,952 133,754 The RSUs granted during the periods presented above vest in equal annual installments over three years . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for warehouses, corporate offices, cars, forklifts and certain equipment with lease terms ranging from 1 year to 15 years . The operating lease expense for the three months ended March 31, 2020 and 2019 was $7.9 million and $7.8 million , respectively. Lease expenses related to variable lease payments and short term leases were immaterial. Other information related to operating leases is as follows: Three Months (Amount in millions) 2020 2019 Operating Lease Expense Cash paid for amounts included in the measurement of lease liabilities $ 7.8 $ 7.8 ROU assets obtained in exchange for new lease liabilities $ 1.7 $ 12.0 Weighted-average remaining lease term (in years) 6.2 6.4 Weighted-average discount rate 1.4 % 1.6 % Future minimum lease payments under non-cancellable operating leases as of March 31, 2020 were as follows: (Amount in millions) 2020 (excluding three months ended March 31, 2020) $ 22.2 2021 20.6 2022 16.0 2023 12.2 2024 6.0 Thereafter 25.0 Total lease payments 102.0 Less: imputed interest 5.5 Total $ 96.5 Amounts recognized in the condensed consolidated balance sheet: Current liabilities, included in other accrued liabilities $ 27.3 Long-term liabilities, as operating lease liabilities $ 69.2 |
Warranties, Guarantees, Commitm
Warranties, Guarantees, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Warranties, Guarantees, Commitments and Contingencies [Abstract] | |
Warranties, Guarantees, Commitments and Contingencies | Warranties, Guarantees, Commitments and Contingencies Warranties Products sold by the Company 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. Recoveries from suppliers are recognized when an arrangement with the supplier exists and collectibility is assured. Amounts recognized as recoveries do not exceed related warranty costs accrued. To the extent the Company 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 three month periods ended March 31, 2020 and 2019 . Three Months (Amount in millions) 2020 2019 Balance of warranty costs accrued, beginning of period $ 48.6 $ 43.7 Warranty costs accrued 13.6 10.3 Warranty claims settled (8.9 ) (6.9 ) Foreign exchange translation effects (0.8 ) (0.5 ) Balance of warranty costs accrued, end of period $ 52.5 $ 46.6 Current liability, disclosed as current portion of warranties $ 32.8 $ 26.5 Long-term liability, included in other liabilities $ 19.7 $ 20.1 Warranty costs accrued $ 13.6 $ 10.3 Less: received and anticipated recoveries from suppliers — — Warranty costs net of received and anticipated recoveries $ 13.6 $ 10.3 Guarantees and Commitments The Company has uncollateralized bank guarantees for $23.9 million , of which $13.2 million is related to statutorily-required guarantees for tax and other litigation, $2.9 million is related to letters of credit, and $7.8 million is related to other individually immaterial items. Right of Recourse As discussed in Note 7, the Company may receive bank acceptance drafts from customers in China in payment of outstanding accounts receivable in the ordinary course of business. These bank 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. Bank acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity date. As of March 31, 2020 and December 31, 2019 , the Company had approximately $18.1 million and $15.8 million , respectively, of bankers acceptance drafts subject to customary right of recourse provisions, which were transferred to vendors and had not reached their scheduled maturity date. Historically, the bankers acceptance drafts have settled upon maturity without any claim of recourse against the Company. Contingencies 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. Under an indemnification agreement, WABCO Brazil is responsible for certain claims related to Trane's (formerly called American Standard) business for periods prior to the Company's spin-off from Trane in 2007. 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. As previously disclosed, this includes one particular case for which an accrual of BRL 38.9 million including interest ( $7.5 million based on March 31, 2020 exchange rates) was recorded based on management's assessment after considering advice of external legal counsel with respect to the likelihood of loss in this case. A corresponding deposit was made in the first quarter of 2017 into an escrow account with the Brazilian government, representing substantially all of the potential liability for the case. In March 2018, our appeal to have this case heard at the Brazilian Superior Court of Justice (the Court) was accepted. The Court subsequently heard the case and rejected our position ultimately ruling in favor of the tax authorities during the first quarter of 2018. There will be no further appeals. Accordingly, management expects this case to be closed by the Brazilian authorities within the next twelve months and has classified the accrual and deposit within other current liabilities and other current assets, respectively, as of March 31, 2020 . The estimated total amount of other remaining contingencies for tax claims under the indemnification agreement as of March 31, 2020 was $16.5 million |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense is the net result of taxes on the mix of earnings in multiple tax jurisdictions, foreign tax credits and rulings, the assessment and accrual of uncertain tax positions resulting from tax authority audits or changes in the interpretation of the law. Ordinarily, interim income tax expense is calculated using the annual estimated effective tax rate (AETR) expected to be applicable for the full year. However, when a reliable estimate of the AETR cannot be made, the actual effective tax rate (ETR) for the year-to-date period may be the best estimate of the AETR. For the three months ended March 31, 2020 we used the actual year-to-date ETR in computing our income tax expense as a reliable estimate of the AETR cannot be made due to the uncertainty of the impact of COVID-19 on full year results. The income tax expense was $7.4 million on pretax income of $34.8 million before adjusting for noncontrolling interest for the three months ended March 31, 2020 , and $12.1 million on pretax income of $100.0 million before adjusting for noncontrolling interest for the three months ended March 31, 2019 . The decrease in income tax expense for this period is primarily the result of lower pretax income during the first quarter of 2020, partially offset by discrete tax benefits during the first quarter of 2019 related to reversal of a deferred tax liability of $ 6.5 million for earnings not permanently reinvested, $ 1.1 million related to amended state income tax filings, and $ 1.3 million related to vested stock awards. On February 14, 2019, the General Court of the European Union (the General Court) issued a judgment annulling a European Commission decision which had previously declared the Belgium Excess Profit Ruling (EPR) regime as illegal and incompatible with European State Aid law. The General Court ruled that the European Commission had wrongly considered that the Belgian provisions allowing tax exemptions of multinational companies’ excess profit granted by means of rulings could constitute an illegal state aid scheme. On April 24, 2019, the European Commission appealed that decision. On September 16, 2019, the European Commission announced that they opened separate in-depth investigations to assess whether excess profit rulings granted by Belgium to thirty-nine multinational companies (including WABCO) gave those companies an unfair advantage over their competitors, in breach of European Union State aid rules. During the three months ended March 31, 2020 there were no further developments on the European Commission appeal of the General Court decision nor separate in-depth investigations into excess profit rulings. At March 31, 2020 , the Company maintained a tax reserve of $29.6 million pending further European Court developments regarding European Union State Aid cases. Unrecognized tax benefits at March 31, 2020 including the $29.6 million of EPR clawback, amounted to $34.6 million , of which $31.5 million has been offset against deferred tax assets. The remaining unrecognized tax benefits of $3.1 million were classified as either a short-term or long-term liability depending on the expected timing of the resolution. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. In February 2018, the Company received a final tax and interest assessment in India for the 2013 tax year related to a capital gain on an intercompany transfer of an Indian subsidiary. The assessment was for INR 3.5 billion ($ 46.5 million at March 31, 2020 exchange rates). In addition, a penalty assessment was issued in March 2018 for INR 2.1 billion ($ 27.9 million at March 31, 2020 exchange rates). The Company believes that no tax is due under the relevant double tax treaty between the Netherlands and India and therefore no amount has been accrued. The Company appealed both the tax and penalty assessments. In May 2018, the Commissioner of Income Tax granted a partial stay of demand requiring the Company to pay 15% of the assessment (INR 531.4 million, equivalent to $7.1 million at March 31, 2020 exchange rates). On March 31, 2019, the partial stay expired. The Commissioner of Income Tax directed the authority to recover an additional five of the assessment or INR 175.0 million ( $2.3 million at March 31, 2020 exchange rates) and granted a further stay pending resolution of the appeal. During the three months ended March 31, 2020 there were no substantive developments on the India tax and interest assessment related to a capital gain on an intercompany transfer of an Indian subsidiary. As of March 31, 2020 , the Company has deposited installments totaling INR 706.4 million ( $9.4 million at March 31, 2020 exchange rates) in order to proceed with the appeal. The remaining tax demand and penalty is currently held in abeyance. |
Streamlining Expenses
Streamlining Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Charges [Abstract] | |
Streamlining Expenses | Streamlining Expenses The Company accounts for employee-related streamlining charges as either a one-time benefit arrangement or an ongoing benefit arrangement as appropriate under the applicable accounting guidance. From time to time the Company also has streamlining charges that are not related to employees, such as facility exit costs. Based on the Company’s efforts to maintain our global footprint, the Company has periodically entered into other streamlining programs as deemed necessary which may include workforce reductions, site closures and rotation of manufacturing footprint to low cost regions. The following is a summary of changes in the Company’s streamlining program liabilities for the three month periods ended March 31, 2020 and 2019 . Three Months (Amounts in millions) 2020 2019 Balance at beginning of period $ 32.8 $ 26.4 Charges 6.7 5.9 Payments (5.4 ) (8.0 ) Foreign exchange effects (0.6 ) (0.4 ) Balance at end of period $ 33.5 $ 23.9 Current liabilities, included in other accrued liabilities $ 13.9 $ 12.9 Long-term liability, included in other liabilities $ 19.6 $ 11.0 A summary of the streamlining costs related to the above programs is as follows: Three Months (Amounts in millions) 2020 2019 Employee-related charges – cost of sales $ 3.0 $ 1.7 Employee-related charges – selling and administrative 2.0 4.1 Other streamlining charges 1.7 0.1 Total streamlining costs $ 6.7 $ 5.9 Streamlining costs for the three months ended March 31, 2020 were primarily related to continued cost optimization and workforce reductions in response to reduced customer demand. Streamlining costs for the three months ended March 31, 2019 include charges related to headcount reductions, site closures and footprint relocations including the move of the Company's corporate headquarters. Three Months (Amounts in millions) 2020 2019 Headcount reduction $ 4.9 5.1 Site closures and footprint relocation 1.8 0.8 Total streamlining costs $ 6.7 $ 5.9 |
Pension and Post-retirement Ben
Pension and Post-retirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits, Description [Abstract] | |
Pension and Post-retirement Benefits | Post-retirement Benefits Post-retirement pension, health and life insurance costs had the following components for the three month periods ended March 31, 2020 and 2019 : Three Months 2020 2019 (Amounts in millions) Pension Benefits Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Service cost-benefits earned during period $ 8.3 $ — $ 6.7 $ 0.2 Interest cost on the projected benefit obligation 2.8 — 4.1 0.1 Less: expected return on plan assets (0.8 ) — (1.2 ) — Amortization of prior service cost 0.1 — 0.1 — Amortization of net loss 7.5 0.1 6.3 0.1 Pension and post-retirement benefit plan cost $ 17.9 $ 0.1 $ 16.0 $ 0.4 The weighted-average expected rates of return on plan assets used to determine the pension and post-retirement benefit plan cost for the three month periods ended March 31, 2020 and 2019 were based on the rates determined as of the beginning of each of the fiscal years of 2.34% and 2.93% , respectively. The Company makes contributions to funded pension plans that, at a minimum, meet all statutory funding requirements. Contributions in 2020 , as well as payments of benefits incurred by unfunded plans, were in line with the expectations for 2020 and also in line with the contributions made during 2019 . Pension and post-retirement benefit plan cost is included in cost of sales, selling and administrative expenses and non-operating expenses on the condensed consolidated statements of operations. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [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 hedge for accounting purpose. 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 condensed consolidated balance sheet 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 condensed consolidated balance sheets. The impact resulting from changes in the fair value of derivative instruments is recorded in the same line item in the condensed 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. Net Investment Hedges The Company designated borrowings under its revolving credit facilities and Senior EUR Notes to partially hedge the foreign currency exposure of its net investment in certain Euro-denominated wholly-owned subsidiaries. As of March 31, 2020 and December 31, 2019 , the Company had designated Euro-denominated loans of €440.0 million ( $483.9 million at March 31, 2020 exchange rates and $493.5 million at December 31, 2019 exchange rates) as hedges of its net investment in these subsidiaries. For the three month periods ended March 31, 2020 and 2019 , the Company recorded a gain of $6.8 million , net of taxes of $1.9 million , and a gain of $8.2 million , net of taxes of $2.3 million , respectively, in cumulative translation adjustment within AOCI. Derivatives Not Designated as Hedges Foreign exchange contracts are also 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 March 31, 2020 and December 31, 2019 , the Company had the following outstanding notional amounts related to foreign currency forward contracts: (Amounts in millions) As of March 31, 2020 As of December 31, 2019 Foreign Currency Unit of Measure Hedged against Quantity Hedged Notional Amount (USD Equivalent) Quantity Hedged Notional Amount (USD Equivalent) Chinese Yuan CNY EUR 1,019.0 144.2 930.0 133.1 Hong Kong Dollar HKD EUR 259.0 33.2 267.0 34.4 Polish Zloty PLN EUR 46.0 11.2 45.0 11.8 The Company had additional foreign currency forward contracts with notional amounts that individually amounted to less than $10 million . As of March 31, 2020 and December 31, 2019 , forward contracts for an aggregate notional amount of € 193.9 million ($ 213.6 million at March 31, 2020 exchange rates) and € 180.8 million ($ 202.7 million at December 31, 2019 exchange rates), respectively, were outstanding with average durations of less than one month. These foreign exchange contracts have offset the revaluation of assets and liabilities. The Company recognized non-operating gains of $2.4 million and $1.2 million for the three months ended March 31, 2020 and 2019 , respectively. The fair value of these derivatives were immaterial as of March 31, 2020 and December 31, 2019 , respectively. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 were as follow: As of March 31, 2020 (Amounts in millions) Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 72.0 $ — $ 72.0 Short-term investments — 65.4 — 65.4 Other investments (included in other assets) — 2.8 — 2.8 As of December 31, 2019 (Amounts in millions) Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 83.1 $ — $ 83.1 Short-term investments — 67.6 — 67.6 Other investments (included in other assets) — 2.8 — 2.8 Short-term and other investments consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The Company considers highly liquid investments with maturities of three months or less when purchased to be cash and cash equivalents. The fair value of short-term and other investments is determined based on pricing sources for identical instruments in less active markets. The unrealized gains and losses on short–term and other investments still held at the reporting date were immaterial for the three month periods ended March 31, 2020 and 2019 . Other Fair Value Disclosures As of March 31, 2020 and December 31, 2019 , the carrying amount of the Company's guaranteed notes receivable and long-term debt were determined to approximate their fair values based on Level 2 inputs. The Company measures its non-marketable investments at cost, less impairment and adjusts for observable price changes for identical or similar investments of the investee when available. During the quarter ended March 31, 2020 , the Company decreased the carrying value of one of its non-marketable investments by $4.7 million due to an estimated decline in its fair value. The reduction in fair value below carrying value was initially identified from a downward revision in the financial projections of the investee that followed the commencement of the COVID-19 pandemic. In the absence of quoted market prices, the fair value of the non-marketable investment was measured using Level 3 inputs with reference to the most recent transaction in equity of the investee. Significant inputs into the fair value determination included market multiples primarily related to industry comparable companies. The write-down of the investment was reflected in other non-operating income/expense. There were no other upward or downward adjustments to non-marketable equity investments and we did not identify any indicators of impairment on other non-marketable equity investments. As of March 31, 2020 and December 31, 2019 , the carrying amount of the non-marketable equity investments was $22.9 million and $27.6 million |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures On January 30, 2020 , the Company entered into a definitive agreement to sell its steering components business R.H. Sheppard Co., Inc. (Sheppard) to Bendix Commercial Vehicle Systems LLC (Bendix) for $149.5 million . The transaction is subject to closing conditions and regulatory approvals, and is contingent upon the closing of the ZF acquisition of WABCO, which is expected in the second quarter of 2020 following receipt of the final regulatory approval from the Chinese State Administration for Market Regulation. As the transaction is contingent on the completion of the Merger with ZF, the assets and liabilities of our Sheppard business were not classified as held for sale in our condensed consolidated balance sheet as of March 31, 2020 . On March 13, 2020 , the Company terminated its distribution agreement with Meritor Inc. (Meritor) to serve as the exclusive distributor for a certain range of WABCO Aftermarket products in the U.S. and Canada and also its non-exclusive distributor in Mexico, and acquired these rights for cash consideration of $265.0 million . The transaction was accounted for as an asset acquisition with the full amount of consideration allocated to distribution rights and customer-based intangible assets and amortized over useful lives of 7.5 years and 20 years, respectively. Transaction-related costs incurred for the acquisition were immaterial. |
Revenue from Contracts with C_2
Revenue from Contracts with Customer (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents product sales disaggregated by end-market: Three Months (Amount in millions) 2020 2019 OEM $ 549.9 $ 703.8 Aftermarket 195.8 229.1 Total sales $ 745.7 $ 932.9 The following table presents product sales disaggregated by geography, based on the billing addresses of customers: Three Months (Amount in millions) 2020 2019 United States $ 160.1 $ 219.7 Europe 384.4 461.7 Other (1) 201.2 251.5 Total sales $ 745.7 $ 932.9 (1) Sales to other regions includes revenues primarily from Japan, China, Brazil and India. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents the changes in accumulated other comprehensive loss for the three month periods ended March 31, 2020 and 2019 . Three Months (Amount in millions) 2020 2019 Foreign currency translation adjustments : Balance at beginning of period $ (257.9 ) $ (243.0 ) Adoption of ASU 2018-02 — (7.1 ) Adjustment for the period (58.6 ) 14.4 Balance at end of period (1) (316.5 ) (235.7 ) Losses on intra-entity transactions: Balance at beginning of period (12.1 ) (11.9 ) Adjustment for the period (0.6 ) — Balance at end of period (2) (12.7 ) (11.9 ) Pension and post-retirement plans: Balance at beginning of period (318.7 ) (269.1 ) Adoption of ASU 2018-02 — (1.3 ) Other comprehensive loss before reclassifications 6.7 3.1 Amounts reclassified to earnings, net (3) 5.3 4.6 Balance at end of period (306.7 ) (262.7 ) Accumulated other comprehensive loss at end of period $ (635.9 ) $ (510.3 ) (1) Includes an accumulated loss of $2.2 million , net of taxes of $0.9 million as of March 31, 2020 and an accumulated loss of $9.7 million , net of taxes of $1.2 million , as of March 31, 2019 related to foreign currency gains and losses on Euro-denominated debt and foreign currency contracts designated and qualifying as partial hedges of a net investment. This includes the one-time adjustment of currency translation related to the adoption of ASU 2018-02 of $7.1 million disclosed above. (2) 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. (3) Consists of amortization of prior service cost and actuarial losses that are included as a component of pension and post-retirement expense within other non-operating expenses. The amounts reclassified to earnings are recorded net of tax of $2.2 million and $1.9 million for the three month periods ended March 31, 2020 and 2019 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of inventories are as follows: (Amounts in millions) As of March 31, 2020 As of December 31, 2019 Finished products $ 190.0 $ 153.9 Products in process 13.8 11.9 Raw materials 174.8 143.1 Inventories, gross 378.6 308.9 Less: inventory allowances (17.1 ) (16.0 ) Inventories, net $ 361.5 $ 292.9 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Credit Loss [Abstract] | |
Financing Receivable, Allowance for Credit Loss | The following table summarizes the activity in the allowance for credit losses over trade accounts receivables for the three months ended March 31, 2020 and 2019 : Three Months (Amount in millions) 2020 2019 Balance at beginning of period $ 12.3 $ 10.7 Provisions 1.1 0.3 Write-offs, net (0.6 ) (0.2 ) Adoption of ASC 326 (0.8 ) — FX translation (0.3 ) (0.1 ) Balance at end of period $ 11.7 $ 10.7 |
Net Income Attributable to Co_2
Net Income Attributable to Company per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | A |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Net Shares Outstanding and Shares Issued or Reacquired | three month periods ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Total Shares Treasury Stock Net Shares Outstanding Total Shares Treasury Stock Net Shares Outstanding Balance at beginning of period 79,147,135 (27,879,811 ) 51,267,324 79,018,266 (27,653,341 ) 51,364,925 Shares issued upon exercise of stock options 1,228 4,291 5,519 8,294 16,500 24,794 Shares issued upon vesting of RSUs 35,832 4,581 40,413 38,213 6,143 44,356 Shares issued for DSUs — — — 901 — 901 Shares issued upon vesting of PSUs 53,430 7,489 60,919 56,470 11,771 68,241 Shares purchased for treasury — — — — (272,000 ) (272,000 ) Balance at end of period 79,237,625 (27,863,450 ) 51,374,175 79,122,144 (27,890,927 ) 51,231,217 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Unsecured Loan Agreements | On March 22, 2018 the Company, through a European subsidiary, entered into a series of six individual senior unsecured loan agreements with an aggregate principal amount of €300.0 million (collectively, the Schuldschein Loans), as follows : (Amounts in millions) Face value Coupon Maturity date Fixed rate term loan - Series A € 10.0 0.85% March 31, 2021 Fixed rate term loan - Series B 60.0 1.15% March 31, 2022 Fixed rate term loan - Series C 80.0 1.43% March 31, 2023 Floating rate term loan - Series A 50.0 6-month EURIBOR plus 80 bps March 31, 2021 Floating rate term loan - Series B 60.0 6-month EURIBOR plus 90 bps March 31, 2022 Floating rate term loan - Series C 40.0 6-month EURIBOR plus 100 bps March 31, 2023 € 300.0 On November 15, 2016 , the Company issued an aggregate amount of €440 million of senior unsecured notes (collectively, the Senior EUR Notes) as follows: (Amounts in millions) Face value Coupon Maturity date Series D Notes € 190.0 0.84 % November 15, 2023 Series E Notes 80.0 1.20 % November 15, 2026 Series F Notes 170.0 1.36 % November 15, 2028 € 440.0 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Total Stock-Based Compensation Cost Recognized During Period | Total stock-based compensation cost recognized during the three month periods ended March 31, 2020 and 2019 was as follows: Three Months (Amount in millions) 2020 2019 Stock-based compensation $ 2.6 $ 4.1 |
Total Number and Type of Awards Granted and Related Weighted-Average Grant Date Fair Values | The total number and type of awards granted during the periods presented and the related weighted-average grant-date fair values were as follows: Three Months 2020 2019 Underlying Shares Weighted Average Grant Date Fair Value Underlying Shares Weighted Average Grant Date Fair Value RSUs Granted 58,976 $ 135.96 66,877 $ 117.49 PSUs Granted 58,976 $ 135.96 66,877 $ 117.49 Total Awards 117,952 133,754 |
Vesting Terms of Restricted Stock Units | The RSUs granted during the periods presented above vest in equal annual installments over three years . |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The operating lease expense for the three months ended March 31, 2020 and 2019 was $7.9 million and $7.8 million , respectively. Lease expenses related to variable lease payments and short term leases were immaterial. Other information related to operating leases is as follows: Three Months (Amount in millions) 2020 2019 Operating Lease Expense Cash paid for amounts included in the measurement of lease liabilities $ 7.8 $ 7.8 ROU assets obtained in exchange for new lease liabilities $ 1.7 $ 12.0 Weighted-average remaining lease term (in years) 6.2 6.4 Weighted-average discount rate 1.4 % 1.6 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancellable operating leases as of March 31, 2020 were as follows: (Amount in millions) 2020 (excluding three months ended March 31, 2020) $ 22.2 2021 20.6 2022 16.0 2023 12.2 2024 6.0 Thereafter 25.0 Total lease payments 102.0 Less: imputed interest 5.5 Total $ 96.5 Amounts recognized in the condensed consolidated balance sheet: Current liabilities, included in other accrued liabilities $ 27.3 Long-term liabilities, as operating lease liabilities $ 69.2 |
Warranties, Guarantees, Commi_2
Warranties, Guarantees, Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Warranties, Guarantees, Commitments and Contingencies [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 three month periods ended March 31, 2020 and 2019 . Three Months (Amount in millions) 2020 2019 Balance of warranty costs accrued, beginning of period $ 48.6 $ 43.7 Warranty costs accrued 13.6 10.3 Warranty claims settled (8.9 ) (6.9 ) Foreign exchange translation effects (0.8 ) (0.5 ) Balance of warranty costs accrued, end of period $ 52.5 $ 46.6 Current liability, disclosed as current portion of warranties $ 32.8 $ 26.5 Long-term liability, included in other liabilities $ 19.7 $ 20.1 Warranty costs accrued $ 13.6 $ 10.3 Less: received and anticipated recoveries from suppliers — — Warranty costs net of received and anticipated recoveries $ 13.6 $ 10.3 |
Streamlining Expenses (Tables)
Streamlining Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of Streamlining Liabilities | The following is a summary of changes in the Company’s streamlining program liabilities for the three month periods ended March 31, 2020 and 2019 . Three Months (Amounts in millions) 2020 2019 Balance at beginning of period $ 32.8 $ 26.4 Charges 6.7 5.9 Payments (5.4 ) (8.0 ) Foreign exchange effects (0.6 ) (0.4 ) Balance at end of period $ 33.5 $ 23.9 Current liabilities, included in other accrued liabilities $ 13.9 $ 12.9 Long-term liability, included in other liabilities $ 19.6 $ 11.0 |
Schedule of Streamlining Cost | A summary of the streamlining costs related to the above programs is as follows: Three Months (Amounts in millions) 2020 2019 Employee-related charges – cost of sales $ 3.0 $ 1.7 Employee-related charges – selling and administrative 2.0 4.1 Other streamlining charges 1.7 0.1 Total streamlining costs $ 6.7 $ 5.9 Streamlining costs for the three months ended March 31, 2020 were primarily related to continued cost optimization and workforce reductions in response to reduced customer demand. Streamlining costs for the three months ended March 31, 2019 include charges related to headcount reductions, site closures and footprint relocations including the move of the Company's corporate headquarters. Three Months (Amounts in millions) 2020 2019 Headcount reduction $ 4.9 5.1 Site closures and footprint relocation 1.8 0.8 Total streamlining costs $ 6.7 $ 5.9 |
Pension and Post-retirement B_2
Pension and Post-retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits, Description [Abstract] | |
Components of Post-retirement Pension, Health and Life Insurance Costs | Post-retirement pension, health and life insurance costs had the following components for the three month periods ended March 31, 2020 and 2019 : Three Months 2020 2019 (Amounts in millions) Pension Benefits Health & Life Ins. Benefits Pension Benefits Health & Life Ins. Benefits Service cost-benefits earned during period $ 8.3 $ — $ 6.7 $ 0.2 Interest cost on the projected benefit obligation 2.8 — 4.1 0.1 Less: expected return on plan assets (0.8 ) — (1.2 ) — Amortization of prior service cost 0.1 — 0.1 — Amortization of net loss 7.5 0.1 6.3 0.1 Pension and post-retirement benefit plan cost $ 17.9 $ 0.1 $ 16.0 $ 0.4 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of March 31, 2020 and December 31, 2019 , the Company had the following outstanding notional amounts related to foreign currency forward contracts: (Amounts in millions) As of March 31, 2020 As of December 31, 2019 Foreign Currency Unit of Measure Hedged against Quantity Hedged Notional Amount (USD Equivalent) Quantity Hedged Notional Amount (USD Equivalent) Chinese Yuan CNY EUR 1,019.0 144.2 930.0 133.1 Hong Kong Dollar HKD EUR 259.0 33.2 267.0 34.4 Polish Zloty PLN EUR 46.0 11.2 45.0 11.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured At Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 were as follow: As of March 31, 2020 (Amounts in millions) Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 72.0 $ — $ 72.0 Short-term investments — 65.4 — 65.4 Other investments (included in other assets) — 2.8 — 2.8 As of December 31, 2019 (Amounts in millions) Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 83.1 $ — $ 83.1 Short-term investments — 67.6 — 67.6 Other investments (included in other assets) — 2.8 — 2.8 Short-term and other investments consist of mutual funds or deposit funds holding primarily term deposits, certificates of deposit and short-term bonds. The Company considers highly liquid investments with maturities of three months or less when purchased to be cash and cash equivalents. The fair value of short-term and other investments is determined based on pricing sources for identical instruments in less active markets. The unrealized gains and losses on short–term and other investments still held at the reporting date were immaterial for the three month periods ended March 31, 2020 and 2019 . |
Basis of Financial Statement _2
Basis of Financial Statement Presentation (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Jun. 27, 2019 | Mar. 28, 2019 | |
Business Acquisition [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
ZF Friedrichshafen AG [Member] | ||||
Business Acquisition [Line Items] | ||||
Merger Agreement, Percentage Of Shares To Be Acquired | 100.00% | |||
Merger Agreement, Percentage Of Shareholders Represented At Meeting | 68.40% | |||
Payments for Merger Related Costs | $ | $ 3.5 | $ 4.1 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 3,237 | $ 3,212.3 | ||
Operating lease right–of–use assets | 94.6 | $ 100.8 | ||
Total | $ 96.5 | |||
Retained earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of ASU 2018-02 | $ 0.8 | $ 8.4 |
Revenue from Contracts with C_3
Revenue from Contracts with Customer (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 745.7 | $ 932.9 |
OEM [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 549.9 | 703.8 |
Aftermarket [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 195.8 | 229.1 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 160.1 | 219.7 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 384.4 | 461.7 |
Japan, China, Brazil And India [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 201.2 | $ 251.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 1,340.2 | |||
Ending balance | 1,316.2 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Correction Of Census Information | 2.9 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Correction Of Census Information, Net Of Taxes | 2.2 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Correction Of Census Information, Taxes | 0.7 | |||
Accumulated other comprehensive loss | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Adoption of ASU 2018-02 (Note 2) | $ 0 | $ 8.4 | ||
Ending balance | (635.9) | $ (510.3) | ||
Foreign Currency Translation [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (257.9) | (243) | ||
Adoption of ASU 2018-02 (Note 2) | 0 | 7.1 | ||
Adjustment for the period | (58.6) | 14.4 | ||
Ending balance | (316.5) | (235.7) | ||
Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment, Before Tax | 2.2 | 9.7 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (0.9) | 1.2 | ||
Losses on Intra-entity transactions [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (12.1) | (11.9) | ||
Adjustment for the period | (0.6) | 0 | ||
Ending balance | (12.7) | (11.9) | ||
Unrealized Losses on Defined Benefit Plans, net of tax [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (318.7) | (269.1) | ||
Adoption of ASU 2018-02 (Note 2) | $ 0 | $ 1.3 | ||
Adjustment for the period | 6.7 | 3.1 | ||
Amounts reclassified to earnings, net | 5.3 | 4.6 | ||
Ending balance | (306.7) | (262.7) | ||
Other comprehensive (income) loss, defined benefit plan, reclassification adjustment from AOCI, tax | $ 2.2 | $ 1.9 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 190 | $ 153.9 |
Products in process | 13.8 | 11.9 |
Raw materials | 174.8 | 143.1 |
Inventories, gross | 378.6 | 308.9 |
Less: inventory allowances | (17.1) | (16) |
Inventories, net | $ 361.5 | $ 292.9 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 12.3 | $ 10.7 |
Provisions | 1.1 | 0.3 |
Write-offs, net | (0.6) | (0.2) |
FX translation | (0.3) | (0.1) |
Balance at end of period | 11.7 | $ 10.7 |
Cumulative Effect, Period Of Adoption, Adjustment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ (0.8) |
Guaranteed Notes Receivable (De
Guaranteed Notes Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Accounts Receivable Financing Facility [Abstract] | |||
Notes receivable discounted or transferred | $ 36.9 | $ 41.7 | |
Notes receivable | $ 53.8 | $ 35 |
Net Income Attributable to Co_3
Net Income Attributable to Company per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted average incremental shares included | 74,339 | 97,801 |
Shares excluded due to anti-dilutive effect | 0 | 33,655 |
Capital Stock (Schedule of Net
Capital Stock (Schedule of Net Shares Outstanding and Shares Issued or Reacquired) (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Common Stock, Shares Outstanding [Roll Forward] | ||
Net Shares Outstanding, beginning balance (in shares) | 51,267,324 | 51,364,925 |
Shares purchased for treasury (in shares) | 0 | (272,000) |
Total Shares, ending balance (in shares) | 79,237,625 | |
Treasury Shares, ending balance (in shares) | (27,863,450) | |
Net Shares Outstanding, ending balance (in shares) | 51,374,175 | 51,231,217 |
Share-based Payment Arrangement, Option [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 5,519 | 24,794 |
Restricted Stock Units (RSUs) [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 40,413 | 44,356 |
Deferred Stock Units [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 0 | 901 |
Performance Shares [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 60,919 | 68,241 |
Common Stock [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Total Shares, beginning balance (in shares) | 79,147,135 | 79,018,266 |
Total Shares, ending balance (in shares) | 79,237,625 | 79,122,144 |
Common Stock [Member] | Share-based Payment Arrangement, Option [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 1,228 | 8,294 |
Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 35,832 | 38,213 |
Common Stock [Member] | Deferred Stock Units [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 0 | 901 |
Common Stock [Member] | Performance Shares [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 53,430 | 56,470 |
Treasury stock | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Treasury Shares, beginning balance (in shares) | (27,879,811) | (27,653,341) |
Shares purchased for treasury (in shares) | 0 | (272,000) |
Treasury Shares, ending balance (in shares) | (27,863,450) | (27,890,927) |
Treasury stock | Share-based Payment Arrangement, Option [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 4,291 | 16,500 |
Treasury stock | Restricted Stock Units (RSUs) [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 4,581 | 6,143 |
Treasury stock | Performance Shares [Member] | ||
Common Stock, Shares Outstanding [Roll Forward] | ||
Shares issued (in shares) | 7,489 | 11,771 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 07, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Stock Issued During Period, Shares, Treasury Stock Reissued | 172,722 | ||
Authorized amount | $ 600,000,000 | ||
Unexpended amount of share repurchase authorized | $ 569,400,000 | ||
Treasury Stock, Shares, Acquired | 0 | 272,000 |
Debt (Schuldschein Loans) (Deta
Debt (Schuldschein Loans) (Details) - Unsecured Debt [Member] - EUR (€) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 22, 2018 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 300,000,000 | |
Series A, Fixed Rate Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 10,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 0.85% | |
Series B, Fixed Rate Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 60,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.15% | |
Series C, Fixed Rate Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 80,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.43% | |
Series A, Floating Rate Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 50,000,000 | |
Series A, Floating Rate Term Loan [Member] | EURIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 0.80% | |
Series B, Floating Rate Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 60,000,000 | |
Series B, Floating Rate Term Loan [Member] | EURIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 0.90% | |
Series C, Floating Rate Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 40,000,000 | |
Series C, Floating Rate Term Loan [Member] | EURIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate, minimum | 1.00% |
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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation (in usd) | $ 2.6 | $ 4.1 | |
Total Awards, Underlying Shares | 117,952 | 133,754 | |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Granted, Underlying Shares | 58,976 | 66,877 | |
Shares Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 135.96 | $ 117.49 | |
Award vesting period | 3 years | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Granted, Underlying Shares | 58,976 | 66,877 | |
Shares Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 135.96 | $ 117.49 | |
Cumulative earnings achievement period | 3 years | ||
Vest Ratably over Three Years [Member] | Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Vest After Two Years [Member] | Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
Vest After Three Years [Member] | Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Deferred Stock Unit (DSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement By Share-based Payment Award, Triggering Event, Term | 10 days | ||
Share-based Compensation Arrangement By Share-based Payment Award, Triggering Event, Anniversary Period Of Grant Date Or Director Separation | 13 months |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Jun. 28, 2018USD ($)annual_extension | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Mar. 22, 2018EUR (€) | Jul. 08, 2011USD ($) |
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Noncurrent, Net | € | € 1,100,000 | ||||
Multi-currency revolving credit facility | $ 600,000,000 | ||||
Maximum secured indebtedness of subsidiaries | 150,000,000 | ||||
Capitalization, Long-term Debt and Equity | 110,200,000 | ||||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | € | € 300,000,000 | ||||
Long-term Debt | $ 329,900,000 | € 299,400,000 | |||
Capitalization, Long-term Debt and Equity | € | € 100,000,000 | ||||
Debt Instrument, Covenant, Debt Ratio, Maximum | 3 | 3 | |||
Debt Instrument, Covenant, Debt Ratio, Preceding Duration, Term | 12 months | ||||
Debt Instrument, Covenant, Interest Expense Ratio, Maximum | 3 | 3 | |||
Debt Instrument, Covenant, Interest Expense Ratio, Preceding Duration, Term | 12 months | ||||
Senior EUR Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 483,900,000 | € 439,200,000 | |||
Debt Instrument, Covenant, Debt Ratio, Maximum | 3 | 3 | |||
Debt Instrument, Covenant, Debt Ratio, Preceding Duration, Term | 12 months | ||||
Debt Instrument, Covenant, Interest Expense Ratio, Maximum | 3 | 3 | |||
Debt Instrument, Covenant, Interest Expense Ratio, Preceding Duration, Term | 12 months | ||||
Credit Facility Expiring in 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit facility | $ 400,000,000 | ||||
Credit Facility Expiring in 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit facility | $ 600,000,000 | ||||
Line of Credit Facility, Additional Maximum Borrowing Capacity | $ 250,000,000 | ||||
Credit Facility Expiring in 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | ||||
Local Working Capital Requirements [Member] | Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings from banks | $ 0 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, minimum | 0.30% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate, minimum | 0.85% | ||||
Revolving Credit Facility [Member] | 2018 Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Number of Extension Options | annual_extension | 2 | ||||
Debt Instrument, Term Of Extension Option | 1 year | ||||
Debt Instrument, Covenant, Debt To Assets, Maximum, Percentage | 20.00% | ||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3 | 3 | |||
Debt Instrument, Covenant, Leverage Ratio, Preceding Duration, Term | 365 days | ||||
Letters of Credit [Member] | 2018 Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Multi-currency revolving credit facility | $ 50,000,000 |
Debt (Senior EUR Notes) (Detail
Debt (Senior EUR Notes) (Details) - Senior EUR Notes [Member] $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Nov. 15, 2016USD ($) | Nov. 15, 2016EUR (€) | |
Debt Instrument [Line Items] | ||||
Debt Issuance Costs, Net | $ 1.4 | |||
Long-term Debt | $ 483.9 | € 439,200,000 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | € | € 440,000,000 | |||
Designated as Hedging Instrument [Member] | ||||
Debt Instrument [Line Items] | ||||
Unrealized gains (losses) on hedges, net | (8.9) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (4.1) |
Debt (Summary of Borrowings Out
Debt (Summary of Borrowings Outstanding Under Credit Facilities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 28, 2018 |
Credit Facility Expiring in 2019 [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 0 | |
Credit Facility Expiring in 2023 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Additional Maximum Borrowing Capacity | $ 250 |
Debt Maturity of long-term debt
Debt Maturity of long-term debt outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Maturities of long-term debt outstanding [Abstract] | ||
Long-term debt | $ 813.9 | $ 828.3 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Expense | $ 7.9 | $ 7.8 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term (in years) | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term (in years) | 15 years |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Expense | $ 7.9 | $ 7.8 |
Cash paid for amounts included in the measurement of lease liabilities | 7.8 | 7.8 |
ROU assets obtained in exchange for new lease liabilities | $ 1.7 | $ 12 |
Weighted-average remaining lease term (in years) | 6 years 2 months 12 days | 6 years 4 months 24 days |
Weighted-average discount rate | 1.40% | 1.60% |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2020 (excluding three months ended March 31, 2020) | $ 22.2 |
2020 | 20.6 |
2021 | 16 |
2022 | 12.2 |
2023 | 6 |
Thereafter | 25 |
Total lease payments | 102 |
Less: imputed interest | 5.5 |
Total | 96.5 |
Amounts recognized in the condensed consolidated balance sheet: | |
Current liabilities, included in other accrued liabilities | 27.3 |
Long-term liabilities, as operating lease liabilities | $ 69.2 |
Warranties, Guarantees, Commi_3
Warranties, Guarantees, Commitments and Contingencies (Narrative) (Details) R$ in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)case | Mar. 31, 2020BRL (R$)case | Dec. 31, 2019USD ($) | |
Guarantor Obligations [Line Items] | |||
Standard warranty period | 2 years | ||
Bank guarantees | $ 23.9 | ||
Notes Receivable Transferred Not Matured | $ 18.1 | $ 15.8 | |
Loss Contingency, Pending Claims, Number | case | 1 | 1 | |
Loss contingency liability | $ 7.5 | R$ 38.9 | |
Estimated total amount of the contingency | 16.5 | ||
Tax Litigation Claims [Member] | |||
Guarantor Obligations [Line Items] | |||
Uncollateralized bank guarantees | 13.2 | ||
Letters of Credit [Member] | |||
Guarantor Obligations [Line Items] | |||
Uncollateralized bank guarantees | 2.9 | ||
Other Items [Member] | |||
Guarantor Obligations [Line Items] | |||
Uncollateralized bank guarantees | $ 7.8 |
Warranties, Guarantees, Commi_4
Warranties, Guarantees, Commitments and Contingencies (Summary of Changes in the Company's Product Warranty Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance of warranty costs accrued, beginning of period | $ 48.6 | $ 43.7 | |
Warranty costs accrued | 13.6 | 10.3 | |
Warranty claims settled | (8.9) | (6.9) | |
Foreign exchange translation effects | (0.8) | (0.5) | |
Balance of warranty costs accrued, end of period | 52.5 | 46.6 | |
Current liability, included in current portion of warranties | 32.8 | 26.5 | $ 28.1 |
Long-term liability, included in other liabilities | 19.7 | 20.1 | |
Less: received and anticipated recoveries from suppliers | 0 | 0 | |
Warranty costs net of received and anticipated recoveries | $ 13.6 | $ 10.3 |
Income Taxes (Details)
Income Taxes (Details) ₨ in Millions, $ in Millions | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | May 31, 2018INR (₨) | Mar. 31, 2018INR (₨) | Feb. 28, 2018INR (₨) | Mar. 31, 2020INR (₨) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Jan. 01, 2019USD ($) |
Income Tax Contingency [Line Items] | ||||||||||
Tax Assessment Amount | $ 46.5 | ₨ 3,500 | ||||||||
Income Tax Examination, Penalties Expense | 27.9 | ₨ 2,100 | ||||||||
Income Tax Examination, Partial Stay, Penalty And Interest Expense, Percentage Of Assessment | 15.00% | 5.00% | ||||||||
Income Tax Examination, Additional Penalty And Interest Expense | ₨ 175 | 2.3 | ||||||||
Partial stay, penalty and interest expense | 7.1 | ₨ 531.4 | ||||||||
Income tax expense (benefit) | $ 7.4 | $ 12.1 | ||||||||
Pretax Income | 34.8 | $ 100 | ||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Research and Development, Amount | 6.5 | |||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 1.1 | |||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 1.3 | |||||||||
Unrecognized Tax Benefit, EPR Clawback | 29.6 | |||||||||
Unrecognized tax benefits | 34.6 | 34.6 | ||||||||
Unrecognized tax benefits classified as long term liabilities | 31.5 | 31.5 | ||||||||
Unrecognized tax benefits classified as reduction to deferred tax assets | (3.1) | $ (3.1) | ||||||||
Deposits made for tax penalty | $ 9.4 | ₨ 706.4 | ||||||||
Retained earnings | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Adoption of ASU 2018-02 | $ 0.8 | $ 8.4 |
Streamlining Expenses (Schedule
Streamlining Expenses (Schedule of Streamlining Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 32.8 | $ 26.4 |
Charges | 6.7 | 5.9 |
Payments | (5.4) | (8) |
Foreign exchange translation effects | 0.6 | 0.4 |
Ending balance | 33.5 | 23.9 |
Accrued Liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at end of period | 13.9 | 12.9 |
Other Noncurrent Liabilities [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Balance at end of period | $ 19.6 | $ 11 |
Streamlining Expenses (Narrativ
Streamlining Expenses (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 33.5 | $ 23.9 | $ 32.8 | $ 26.4 | ||
Restructuring Costs | $ 6.7 | $ 5.9 | ||||
headcount reductions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | $ 5.1 | $ 4.9 | ||||
Footprint relocations [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | $ 0.8 | $ 1.8 |
Streamlining Expenses (Schedu_2
Streamlining Expenses (Schedule of Current and Cumulative Streamlining Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Charges [Abstract] | ||
Employee related charges - cost of sales | $ 3 | $ 1.7 |
Employee related charges - selling and administrative | 2 | 4.1 |
Other streamlining charges | 1.7 | 0.1 |
Total program costs | $ 6.7 | $ 5.9 |
Streamlining Expenses (Summary
Streamlining Expenses (Summary of Streamlining Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 6.7 | $ 5.9 | ||
Footprint relocations [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 0.8 | $ 1.8 |
Pension and Post-retirement B_3
Pension and Post-retirement Benefits (Components of Post-retirement Pension, Health and Life Insurance Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Correction Of Census Information | $ 2.9 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 2.34% | 2.93% |
Pension Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Service cost-benefits earned during period | $ 8.3 | $ 6.7 |
Interest cost on the projected benefit obligation | 2.8 | 4.1 |
Less assumed return on plan assets | (0.8) | (1.2) |
Amortization of prior service cost | 0.1 | 0.1 |
Amortization of net loss | 7.5 | 6.3 |
Defined benefit plan cost | 17.9 | 16 |
Health and Life Insurance Benefits [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Service cost-benefits earned during period | 0 | 0.2 |
Interest cost on the projected benefit obligation | 0 | 0.1 |
Less assumed return on plan assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Amortization of net loss | 0.1 | 0.1 |
Defined benefit plan cost | $ 0.1 | $ 0.4 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Average duration of derivatives, months | 1 month | ||||
Derivative instruments, recognized gains / (losses) | $ 2.4 | $ 1.2 | |||
Not Designated as Hedging Instrument [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Notional amount of derivatives | 213.6 | € 193.9 | $ 202.7 | € 180.8 | |
Additional Foreign Currency Forward Contracts [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Notional amount of derivatives | 10 | ||||
Net Investment Hedging [Member] | Senior EUR Notes [Member] | Designated as Hedging Instrument [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Long-term Debt | 483.9 | 440 | $ 493.5 | ||
Senior EUR Notes [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Long-term Debt | 483.9 | € 439.2 | |||
Senior EUR Notes [Member] | Designated as Hedging Instrument [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Unrealized gains (losses) on hedges, net | 8.9 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (4.1) | ||||
Senior EUR Notes [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Unrealized gains (losses) on hedges, net | 6.8 | 8.2 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (1.9) | $ (2.3) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Derivatives Not Designated As Hedging) (Details) € in Millions, ¥ in Millions, $ in Millions, $ in Millions | 3 Months Ended | |||||||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020CNY (¥) | Mar. 31, 2020USD ($) | Mar. 31, 2020HKD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2019EUR (€) | |
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ 2.4 | $ 1.2 | ||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 213.6 | € 193.9 | $ 202.7 | € 180.8 | ||||||
Additional Foreign Currency Forward Contracts [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | 10 | |||||||||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | China, Yuan Renminbi | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | ¥ 1,019 | 144.2 | ¥ 930 | 133.1 | ||||||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Hong Kong, Dollars | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | 33.2 | $ 259 | 34.4 | $ 267 | ||||||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | US Dollar | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Amount | $ 11.2 | $ 46 | $ 11.8 | $ 45 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Security Owned Not Readily Marketable, Quoted Price, Period Increase (Decrease) | $ (4.7) | |
Short-term investments | 65.4 | $ 67.6 |
Securities owned not readily marketable | 22.9 | 27.6 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 72 | 83.1 |
Foreign currency contract, asset, fair value disclosure | 65.4 | 67.6 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 2.8 | 2.8 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 72 | 83.1 |
Foreign currency contract, asset, fair value disclosure | 65.4 | 67.6 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 2.8 | $ 2.8 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | Mar. 13, 2020 | Jan. 30, 2020 |
Sheppard [Member] | ||
Business Acquisition [Line Items] | ||
Definitive Agreement To Sell, Price | $ 149.5 | |
Meritor [Member] | ||
Business Acquisition [Line Items] | ||
Asset Acquisition, Payments To Acquire Rights | $ 265 | |
Distribution Rights [Member] | Minimum [Member] | Meritor [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 6 months | |
Customer-Related Intangible Assets [Member] | Maximum [Member] | Meritor [Member] | ||
Business Acquisition [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years |
Uncategorized Items - wbc10q331
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 500,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 500,000 |
Series E Notes [Member] | Senior Notes [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 1.20% |
Debt Instrument, Face Amount | us-gaap_DebtInstrumentFaceAmount | $ 80,000,000 |
Series F Notes [Member] | Senior Notes [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 1.36% |
Debt Instrument, Face Amount | us-gaap_DebtInstrumentFaceAmount | $ 170,000,000 |
Series D Notes [Member] | Senior Notes [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 0.84% |
Debt Instrument, Face Amount | us-gaap_DebtInstrumentFaceAmount | $ 190,000,000 |