Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CHD | ||
Entity Registrant Name | CHURCH & DWIGHT CO INC /DE/ | ||
Entity Central Index Key | 313,927 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 254,632,798 | ||
Entity Public Float | $ 13 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Statement [Abstract] | ||||
Net Sales | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 | |
Cost of sales | 1,902.5 | 1,883 | 1,844.7 | |
Gross Profit | 1,590.6 | 1,511.8 | 1,452.9 | |
Marketing expenses | 427.2 | 417.5 | 416.9 | |
Selling, general and administrative expenses | 439.2 | 420.1 | 394.8 | |
Income from Operations | 724.2 | 674.2 | 641.2 | |
Equity in earnings (losses) of affiliates | 9.2 | (5.8) | 11.6 | |
Investment earnings | 1.7 | 1.5 | 2.3 | |
Other income (expense), net | (1.5) | (4) | (2.8) | |
Interest expense | (27.7) | (30.5) | (27.4) | |
Income before Income Taxes | 705.9 | 635.4 | 624.9 | |
Income taxes | 246.9 | 225 | 211 | |
Net Income | $ 459 | $ 410.4 | $ 413.9 | |
Weighted average shares outstanding - Basic | 257.6 | 262.2 | 270.2 | |
Weighted average shares outstanding - Diluted | 262.1 | 267.2 | 275 | |
Net income per share - Basic | $ 1.78 | $ 1.57 | [1],[2] | $ 1.53 |
Net income per share - Diluted | 1.75 | 1.54 | [1],[2] | 1.51 |
Cash dividends per share | $ 0.71 | $ 0.67 | $ 0.62 | |
[1] | The second quarter of 2015 Income from Operations includes an $8.9 pre-tax charge or $0.03 per share to terminate an international defined benefit pension plan. | |||
[2] | The second quarter of 2015 Net Income includes a $17.0 or $0.06 per share impairment charge to write-off the remaining investment in Natronx. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 459 | $ 410.4 | $ 413.9 |
Other comprehensive income (loss), net of tax: | |||
Foreign exchange translation adjustments | (11.5) | (22.1) | (29.1) |
Defined benefit plan adjustments gain (loss) | (1.7) | 6.2 | (4.7) |
Income (loss) from derivative agreements | (4.7) | 4.7 | (1.1) |
Other comprehensive (loss) income | (17.9) | (11.2) | (34.9) |
Comprehensive income | $ 441.1 | $ 399.2 | $ 379 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 187.8 | $ 330 |
Accounts receivable, less allowances of $2.1 and $1.0 | 287 | 276.2 |
Inventories | 258.2 | 274 |
Other current assets | 23.8 | 25.8 |
Total Current Assets | 756.8 | 906 |
Property, Plant and Equipment, Net | 588.6 | 609.6 |
Equity Investment in Affiliates | 8.5 | 8.4 |
Trade Names and Other Intangibles, Net | 1,431.8 | 1,269.5 |
Goodwill | 1,444.1 | 1,354.9 |
Other Assets | 124.3 | 108.5 |
Total Assets | 4,354.1 | 4,256.9 |
Current Liabilities | ||
Short-term borrowings | 426.8 | 357.2 |
Accounts payable and accrued expenses | 568.9 | 508.3 |
Income taxes payable | 6.2 | 7.2 |
Total Current Liabilities | 1,001.9 | 872.7 |
Long-term Debt | 693.4 | 692.8 |
Deferred Income Taxes | 512.2 | 484.8 |
Deferred and Other Long-term Liabilities | 168.7 | 183.4 |
Total Liabilities | 2,376.2 | 2,233.7 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred Stock, $1.00 par value, Authorized 2,500,000 shares; none issued | 0 | 0 |
Common Stock, $1.00 par value, Authorized 300,000,000 shares; 292,855,100 shares issued | 292.8 | 292.8 |
Additional paid-in capital | 251.4 | 230 |
Retained earnings | 2,926 | 2,650 |
Accumulated other comprehensive loss | (63.8) | (45.9) |
Common stock in treasury, at cost: 38,892,165 shares in 2016 and 32,947,012 shares in 2015 | (1,428.5) | (1,103.7) |
Total Stockholders' Equity | 1,977.9 | 2,023.2 |
Total Liabilities and Stockholders’ Equity | $ 4,354.1 | $ 4,256.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2.1 | $ 1 |
Preferred Stock, par value | $ 1 | $ 1 |
Preferred Stock, Authorized | 2,500,000 | 2,500,000 |
Preferred Stock, issued | 0 | 0 |
Common Stock, par value | $ 1 | $ 1 |
Common Stock, Authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 292,855,100 | 292,855,100 |
Common stock in treasury, shares | 38,892,165 | 32,947,012 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flow From Operating Activities | |||
Net Income | $ 459 | $ 410.4 | $ 413.9 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 59.7 | 58.3 | 57.1 |
Amortization expense | 47.9 | 42.7 | 34.1 |
Deferred income taxes | 24.9 | 24 | 12.7 |
Equity in net earnings of affiliates | (9.2) | (11.6) | (11.6) |
Distributions from unconsolidated affiliates | 9 | 12 | 12.5 |
Non-cash pension settlement charge | 0 | 8.4 | 0 |
Non-cash compensation expense | 16 | 16.1 | 17 |
Asset impairment charge and other asset write-offs | 5.6 | 19.2 | 6.4 |
Other | (1.8) | 5.7 | 3.2 |
Change in assets and liabilities: | |||
Accounts receivable | (12.7) | 33.5 | (1.8) |
Inventories | 19.2 | (38.5) | 1.8 |
Other current assets | 2.1 | (2) | (0.6) |
Accounts payable and accrued expenses | 50.5 | 21.8 | 2.4 |
Income taxes payable | 32.8 | 29.7 | 17.5 |
Excess tax benefit on stock options exercised | (30) | (15.8) | (18.5) |
Other operating assets and liabilities, net | (17.7) | (7.8) | (5.8) |
Net Cash Provided By Operating Activities | 655.3 | 606.1 | 540.3 |
Cash Flow From Investing Activities | |||
Additions to property, plant and equipment | (49.8) | (61.8) | (70.5) |
Acquisitions | (305.3) | (74.9) | (215.7) |
Other | 0.5 | (4.5) | (2.2) |
Net Cash Used In Investing Activities | (354.6) | (141.2) | (288.4) |
Cash Flow From Financing Activities | |||
Long-term debt borrowings | 0 | 0 | 299.8 |
Long-term debt repayments | 0 | (250) | 0 |
Short-term debt borrowings (repayments) | 68.9 | 211.7 | (6.7) |
Proceeds from stock options exercised | 50.5 | 28.5 | 32.7 |
Excess tax benefit on stock options exercised | 30 | 15.8 | 18.5 |
Payment of cash dividends | (183) | (175.3) | (167.5) |
Purchase of treasury stock | (400) | (363.1) | (478.8) |
Deferred financing costs | 0 | (1.4) | (4.2) |
Other | (6) | (1.2) | (0.4) |
Net Cash Used In Financing Activities | (439.6) | (535) | (306.6) |
Effect of exchange rate changes on cash and cash equivalents | (3.3) | (22.9) | (19.2) |
Net Change In Cash and Cash Equivalents | (142.2) | (93) | (73.9) |
Cash and Cash Equivalents at Beginning of Period | 330 | 423 | 496.9 |
Cash and Cash Equivalents at End of Period | 187.8 | 330 | 423 |
Cash paid during the year for: | |||
Interest (net of amounts capitalized) | 25.6 | 29 | 25.7 |
Income taxes | 188.4 | 174.8 | 181.5 |
Supplemental disclosure of non-cash investing activities: | |||
Property, plant and equipment expenditures included in Accounts Payable | $ 3.4 | $ 5.3 | $ 14.5 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Church & Dwight Co., Inc. Stockholders' Equity | Noncontrolling Interest |
Beginning Balance at Dec. 31, 2013 | $ 2,300 | $ 292.8 | $ (368.1) | $ 206.5 | $ 2,168.5 | $ 0.2 | $ 2,299.9 | $ 0.1 |
Beginning Balance (in shares) at Dec. 31, 2013 | 292.8 | (15) | ||||||
Net Income | 413.9 | $ 0 | $ 0 | 0 | 413.9 | 0 | 413.9 | 0 |
Other comprehensive (loss) income | (34.9) | 0 | 0 | 0 | 0 | (34.9) | (34.9) | 0 |
Cash dividends | (167.5) | 0 | 0 | 0 | (167.5) | 0 | (167.5) | 0 |
Stock purchases | (478.8) | $ 0 | $ (478.8) | 0 | 0 | 0 | (478.8) | 0 |
Stock purchases (in shares) | 0 | (13.8) | ||||||
Stock based compensation expense and stock option plan transactions, including related income tax benefits | 67.6 | $ 0 | $ 56.3 | 11.3 | 0 | 0 | 67.6 | 0 |
Stock based compensation expense and stock option plan transactions, including related income tax benefits (in shares) | 0 | 2.6 | ||||||
Other stock issuances | 1.6 | $ 0 | $ 1.1 | 0.6 | 0 | 0 | 1.7 | (0.1) |
Other stock issuances (in shares) | 0 | 0 | ||||||
Ending Balance at Dec. 31, 2014 | 2,101.9 | $ 292.8 | $ (789.5) | 218.4 | 2,414.9 | (34.7) | 2,101.9 | 0 |
Ending Balance (in shares) at Dec. 31, 2014 | 292.8 | (26.2) | ||||||
Net Income | 410.4 | $ 0 | $ 0 | 0 | 410.4 | 0 | 410.4 | 0 |
Other comprehensive (loss) income | (11.2) | 0 | 0 | 0 | 0 | (11.2) | (11.2) | 0 |
Cash dividends | (175.3) | 0 | 0 | 0 | (175.3) | 0 | (175.3) | 0 |
Stock purchases | (363.1) | $ 0 | $ (363.1) | 0 | 0 | 0 | (363.1) | 0 |
Stock purchases (in shares) | 0 | (8.8) | ||||||
Transfer of stock for settlement of share repurchase agreement | 0 | $ 0 | $ 4.1 | (4.1) | 0 | 0 | 0 | 0 |
Transfer of stock for settlement of share repurchase agreement (in shares) | 0 | 0.2 | ||||||
Stock based compensation expense and stock option plan transactions, including related income tax benefits | 60.5 | $ 0 | $ 44.8 | 15.7 | 0 | 0 | 60.5 | 0 |
Stock based compensation expense and stock option plan transactions, including related income tax benefits (in shares) | 0 | 2 | ||||||
Ending Balance at Dec. 31, 2015 | 2,023.2 | $ 292.8 | $ (1,103.7) | 230 | 2,650 | (45.9) | 2,023.2 | 0 |
Ending Balance (in shares) at Dec. 31, 2015 | 292.8 | (32.8) | ||||||
Net Income | 459 | $ 0 | $ 0 | 0 | 459 | 0 | 459 | 0 |
Other comprehensive (loss) income | (17.9) | 0 | 0 | 0 | 0 | (17.9) | (17.9) | 0 |
Cash dividends | (183) | 0 | 0 | 0 | (183) | 0 | (183) | 0 |
Stock purchases | $ (400) | $ 0 | $ (400) | 0 | 0 | 0 | (400) | 0 |
Stock purchases (in shares) | (9) | 0 | (9) | |||||
Stock based compensation expense and stock option plan transactions, including related income tax benefits | $ 96.6 | $ 0 | $ 75.2 | 21.4 | 0 | 0 | 96.6 | 0 |
Stock based compensation expense and stock option plan transactions, including related income tax benefits (in shares) | 0 | 2.9 | ||||||
Ending Balance at Dec. 31, 2016 | $ 1,977.9 | $ 292.8 | $ (1,428.5) | $ 251.4 | $ 2,926 | $ (63.8) | $ 1,977.9 | $ 0 |
Ending Balance (in shares) at Dec. 31, 2016 | 292.8 | (38.9) |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||
Stock based compensation expense and stock option plan transactions, income tax benefits | $ 30 | $ 15.8 | $ 18.8 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Business The Company, founded in 1846, develops, manufactures and markets a broad range of household, personal care and specialty products. The Company sells its consumer products under a variety of brands through a broad distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar, pet and other specialty stores and websites, all of which sell the products to consumers. The Company also sells specialty products to industrial customers and distributors. Basis of Presentation The accompanying Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the U.S. and include the accounts of the Company and its majority‑owned subsidiaries. For equity investments in which the Company does not control or have the ability to exert significant influence over the investee, which generally is when the Company has less than a 20% ownership interest, the investments are accounted for under the cost method. In circumstances where the Company has greater than a 20% ownership interest and has the ability to exercise significant influence over, but does not control, the investee, the investment is accounted for under the equity method. As a result, the Company accounts for its 50% interest in its Armand Products Company (“Armand”) joint venture and its 50% interest in The ArmaKleen Company (“ArmaKleen”) joint venture under the equity method. The Company’s one-third interest in its Natronx Technologies, LLC (“Natronx”) joint venture was accounted for under the equity method until the remaining investment in it was fully impaired in 2015. Armand, ArmaKleen and Natronx are specialty chemical businesses. The Company’s equity in earnings (losses) of Armand and ArmaKleen for the year ended December 31, 2016 and Armand, ArmaKleen and Natronx for the years ended December 31, 2015 and 2014 are included in the Corporate segment, as described in Note 16. On August 4, 2016, the Company announced a two-for-one stock split of the Company’s common stock (“Common Stock”). The stock split was structured in the form of a 100% stock dividend, payable on September 1, 2016 to stockholders of record as of August 15, 2016. All applicable amounts in the consolidated financial statements and related disclosures have been retroactively adjusted to reflect the stock split. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Management makes estimates regarding inventory valuation, promotional and sales returns reserves, the carrying amount of goodwill and other intangible assets, the realization of deferred tax assets, tax reserves, liabilities related to pensions and other postretirement benefit obligations and other matters that affect the reported amounts and other disclosures in the financial statements. These estimates are based on judgment and available information. Actual results could differ materially from those estimates, and it is possible that changes in such estimates could occur in the near term. R ev Revenue is recognized when finished goods are delivered to the Company’s customers or when finished goods are picked up by a customer or a customer’s carrier. Promotional and Sales Returns Reserves The Company conducts extensive promotional activities, primarily through the use of off-list discounts, slotting, coupons, cooperative advertising, periodic price reduction arrangements, and end-aisle and other in-store displays. The costs of such activities are netted against sales. Slotting costs are recorded when the product is delivered to the customer. Costs associated with coupon redemption are recorded when coupons are circulated. Cooperative advertising costs are recorded when the customer places the advertisement for the Company’s products. Discounts relating to price reduction arrangements are recorded when the related sale takes place. Costs associated with end-aisle or other in-store displays are recorded when the revenue from the product that is subject to the promotion is recognized. The reserves for sales returns and consumer and trade promotion liabilities are established based on the Company’s best estimate of the amounts necessary to settle future and existing obligations for products sold as of the balance sheet date. The Company uses historical trend experience and coupon redemption provider input in arriving at coupon reserve requirements, and uses forecasted appropriations, customer and sales organization inputs, and historical trend analysis in determining the reserves for other promotional activities and sales returns. Sales of Accounts Receivable The Company entered into a factoring agreement with a financial institution to sell certain customer receivables at discounted rates in 2015. Transactions under this agreement are accounted for as sales of accounts receivable and were removed from the Consolidated Balance Sheet at the time of the sales transaction. The Company factored an additional $22.3 in 2016, resulting in a total of $60.1 and $37.8 as of December 31, 2016 and 2015, respectively. Cost of Sales, Marketing and Selling, General and Administrative Expenses Cost of sales include costs related to the manufacture of the Company’s products, including raw material, inbound freight, direct labor (including employee compensation benefits) and indirect plant costs such as plant supervision, receiving, inspection, maintenance labor and materials, depreciation, taxes and insurance, purchasing, production planning, operations management, logistics, freight to customers, warehousing costs, internal transfer freight costs and plant impairment charges. Marketing expenses include costs for advertising (excluding the costs of cooperative advertising programs, which are reflected in net sales), costs for coupon insertion (mainly the cost of printing and distribution), consumer promotion costs (such as on-shelf advertisements and floor ads), public relations, package design expense and market research costs. Selling, general and administrative expenses (“SG&A”) expenses include, among others, costs related to functions such as sales, corporate management, research and development, marketing administration, information technology and legal. Such costs include salary compensation related costs (such as benefits, incentive compensation and profit sharing), stock option costs, depreciation, travel and entertainment related expenses, professional and other consulting fees and amortization of intangible assets. Foreign Currency Translation Unrealized gains and losses related to currency translation are recorded in Accumulated Other Comprehensive Income (Loss). Gains and losses on foreign currency transactions are recorded in the Consolidated Statements of Income. Cash Equivalents Cash equivalents consist of highly liquid short-term investments and term bank deposits, which mature within three months of their original maturity date. Inventories Inventories are valued at the lower of cost or market. Approximately 20% and 19% of the inventory at December 31, 2016 and 2015, respectively, including substantially all inventory in the Company’s Specialty Products Division (“SPD”) segment as well as domestic inventory sold primarily under the ARM & HAMMER trademark in the Consumer Domestic segment, was determined utilizing the last-in, first-out (“LIFO”) method. The cost of the remaining inventory was determined using the first-in, first-out (“FIFO”) method. The Company identifies any slow moving, obsolete or excess inventory to determine whether an adjustment is required to establish a new carrying value. The determination of whether inventory items are slow moving, obsolete or in excess of needs requires estimates and assumptions about the future demand for the Company’s products, technological changes, and new product introductions. Estimates as to the future demand used in the valuation of inventory involve judgments regarding the ongoing success of the Company’s products. The Company evaluates its inventory levels and expected usage on a periodic basis and records adjustments as required. Adjustments to reflect inventory at net realizable value were $10.5 at December 31, 2016, and $12.6 at December 31, 2015. Property, Plant and Equipment Property, Plant and Equipment (“PP&E”) are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for building and improvements, machinery and equipment, and office equipment range from 9-40, 3-20 and 3-10 years, respectively. Routine repairs and maintenance are expensed when incurred. Leasehold improvements are depreciated over a period no longer than the respective lease term, except where a lease renewal has been determined to be reasonably assured and failure to renew the lease results in a significant penalty to the Company. PP&E are reviewed annually and whenever events or changes in circumstances indicate that possible impairment exists. The Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of Company assets and liabilities. The analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates. The Company conducts annual reviews to identify idle and underutilized equipment, and reviews business plans for possible impairment. Impairment occurs when the carrying value of the asset exceeds the future undiscounted cash flows. When an impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset and an impairment charge is recorded for the difference between the carrying value and the net present value of estimated future cash flows. Software The Company capitalizes certain costs of developing computer software. Amortization is recorded using the straight‑line method over the estimated useful life of the software, which is estimated to be no longer than 10 years. Fair Value of Financial Instruments Certain financial instruments are required to be recorded at fair value. The estimated fair values of such financial instruments (including investment securities and other derivatives) have been determined using market information and valuation methodologies. Changes in assumptions or estimation methods could affect the fair value estimates. Other financial instruments, including cash equivalents and short-term debt, are recorded at cost, which approximates fair value. Additional information regarding the Company’s risk management activities, including derivative instruments and hedging activities, are separately disclosed. See Notes 2 and 3. Goodwill and Other Intangible Assets Carrying values of goodwill, trade names and other indefinite lived intangible assets are reviewed periodically for possible impairment. The Company’s impairment analysis is based on a discounted cash flow approach that requires significant judgment with respect to unit volume, revenue and expense growth rates, and the selection of an appropriate discount rate. Management uses estimates based on expected trends in making these assumptions. With respect to goodwill, impairment occurs when the carrying value of the reporting unit exceeds the discounted present value of cash flows for that reporting unit. For trade names and other intangible assets, an impairment charge is recorded for the difference between the carrying value and the net present value of estimated future cash flows, which represents the estimated fair value of the asset. Judgment is required in assessing whether assets may have become impaired between annual valuations. Indicators such as unexpected adverse economic factors, unanticipated technological change, distribution losses, or competitive activities and acts by governments and courts may indicate that an asset has become impaired. Intangible assets with finite lives are amortized over their estimated useful lives, which range from 3-20 years, using the straight-line method, and reviewed for impairment when changes in market circumstances occur. It is possible that the Company’s conclusions regarding impairment or recoverability of goodwill or other intangible assets could change in future periods if, for example, (i) the businesses or brands do not perform as projected, (ii) overall economic conditions in 2017 or future years vary from current assumptions (including changes in discount rates), (iii) business conditions or strategies change from current assumptions, (iv) investors require higher rates of return on equity investments in the marketplace or (v) enterprise values of comparable publicly traded companies, or actual sales transactions of comparable companies, were to decline, resulting in lower multiples of revenues and EBITDA. Research and Development The Company incurred research and development expenses in the amount of $63.2, $64.7 and $59.8 in 2016, 2015 and 2014, respectively. These expenses are included in SG&A expenses and are expensed as incurred. Earnings Per Share (“EPS”) Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted-average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the exercise of outstanding stock options. The following table sets forth a reconciliation of the weighted-average number of shares of Common Stock outstanding to the weighted-average number of shares outstanding on a diluted basis: 2016 2015 2014 Weighted average common shares outstanding - basic 257.6 262.2 270.2 Dilutive effect of stock options 4.5 5.0 4.8 Weighted average common shares outstanding - diluted 262.1 267.2 275.0 Antidilutive stock options outstanding 1.4 2.2 2.4 Employee and Director Stock Option Based Compensation The fair value of share-based compensation is determined at the grant date and the related expense is recognized over the required employee service period in which the share-based compensation vests. The following table presents the pre-tax expense associated with the fair value of unvested stock options and restricted stock awards included in SG&A expenses and in cost of sales: For the Year Ended December 31, 2016 2015 2014 Cost of sales $ 1.9 $ 1.6 $ 1.6 Selling, general and administrative expenses 14.1 14.5 15.4 Total $ 16.0 $ 16.1 $ 17.0 Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized. The Company records liabilities for potential assessments in various tax jurisdictions in accordance with accounting principles generally accepted in the U.S. (GAAP). The liabilities relate to tax return positions that, although supportable by the Company, may be challenged by the tax authorities and do not meet the minimum recognition threshold required under applicable accounting guidance for the related tax benefit to be recognized in the income statement. The Company adjusts this liability as a result of changes in tax legislation, interpretations of laws by courts, rulings by tax authorities, changes in estimates and the expiration of the statute of limitations. Many of the judgments involved in adjusting the liability involve assumptions and estimates that are highly uncertain and subject to change. In this regard, settlement of any issue with, or an adverse determination in litigation against, a taxing authority could require the use of cash and result in an increase in the Company’s annual tax rate. Conversely, favorable resolution of an issue with a taxing authority would be recognized as a reduction to the Company’s annual tax rate. New Accounting Pronouncements Issued In August 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance seeking to eliminate diversity in practice related to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments address eight specific cash flow issues and are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The guidance will be applied on a retrospective basis beginning with the earliest period presented. This guidance is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In March, April, and May of 2016, the FASB issued amended guidance that clarifies the principles for recognizing revenue. The amendments clarify the guidance for identifying performance obligations, licensing arrangements and principal versus agent considerations. The amendments additionally provide clarification on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. The guidance is effective for annual periods, including interim reporting periods within those periods, beginning after December 15, 2017, and allows companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption. The new standard will be effective for the Company at the beginning of its first quarter of fiscal year 2018. The guidance is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. In March 2016, the FASB issued new accounting guidance that makes modifications to how companies account for certain aspects of share-based payment awards to employees, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as the classification of excess tax benefits in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2016. The Company will adopt the standard in the first quarter of fiscal year 2017 and will elect to adopt the cash flow presentation of the excess tax benefits prospectively. The Company has also elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The adoption is expected to impact the Company's income tax provision on its Consolidated Statements of Income and its operating and financing cash flows on its Consolidated Statements of Cash Flows. The impact of adopting this standard on the consolidated financial statements will be dependent on the timing and intrinsic value of future share-based compensation award exercises. In February 2016, the FASB issued new lease accounting guidance, requiring lessees to recognize right-of-use lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases, with a term greater than a year. The new guidance also expands the required quantitative and qualitative disclosures surrounding leases. The guidance is effective for annual and interim periods beginning after December 15, 2018, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact that adoption of the guidance will have on its consolidated financial position, results of operations and cash flows. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements Fair Value Hierarchy Accounting guidance on fair value measurements and disclosures establishes a hierarchy that prioritizes the inputs used to measure fair value (generally, assumptions that market participants would use in pricing an asset or liability) based on the quality and reliability of the information provided by the inputs, as follows: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair Values of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at December 31, 2016 and December 31, 2015: December 31, 2016 December 31, 2015 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 72.4 $ 72.4 $ 89.3 $ 89.3 Financial Liabilities: Short-term borrowings Level 2 426.8 426.8 357.2 357.2 2.875% Senior notes Level 2 399.8 396.9 399.7 390.5 2.45% Senior notes Level 2 299.9 302.0 299.9 296.0 Fair value adjustment asset (liability) related to hedged fixed rate debt instrument Level 2 0.2 0.2 1.3 1.3 The Company recognizes transfers between input levels as of the actual date of the event. There were no transfers between input levels during the twelve months ended December 31, 2016. The following methods and assumptions were used to estimate the fair value of each class of financial instruments reflected in the Consolidated Balance Sheets: Cash Equivalents: Cash equivalents consist of highly liquid short-term investments and term bank deposits, which mature within three months. The estimated fair value of the Company’s cash equivalents approximates their carrying value. Short-Term Borrowings: The carrying amounts of the Company’s unsecured lines of credit and commercial paper issuances approximates fair value because of their short maturities and variable interest rates. Senior Notes: The Company determines the fair value of its senior notes based on their quoted market value or broker quotes, when possible. In the absence of observable market quotes, the notes are valued using non-binding market consensus prices that the Company seeks to corroborate with observable market data. Hedged Fixed Rated Debt: The interest rate swap agreements convert the fixed interest rate to a variable rate based on LIBOR. These agreements are designated as hedges of the changes in fair value of the underlying debt obligation attributable to changes in interest rates and are accounted for as fair value hedges. The fair value of these interest rate swap agreements is reflected in the Consolidated Balance Sheet within Other Assets or Deferred and Other Long-term Liabilities, with an offsetting amount recorded in long-term debt to adjust the carrying amount of the hedged debt obligation. Other : The carrying amounts of accounts receivable, and accounts payable and accrued expenses, approximated estimated fair values as of December 31, 2016 and 2015. |
Derivative Instruments and Risk
Derivative Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Risk Management | 3. Derivative Instruments and Risk Management Changes in interest rates, foreign exchange rates, the price of the Common Stock and commodity prices expose the Company to market risk. The Company manages these risks by the use of derivative instruments, such as cash flow and fair value hedges, diesel hedge contracts, equity derivatives and foreign exchange forward contracts. The Company does not use derivatives for trading or speculative purposes. The Company formally designates and documents qualifying instruments as hedges of underlying exposures when it enters into derivative arrangements. Changes in the fair value of derivatives designated as hedges and qualifying for hedge accounting are recorded in other comprehensive income and reclassified into earnings during the period in which the hedged exposure affects earnings. The Company reviews the effectiveness of its hedging instruments on a quarterly basis. If the Company determines that a derivative instrument is no longer highly effective in offsetting changes in fair values or cash flows, it recognizes the hedge ineffectiveness in current period earnings and discontinues hedge accounting with respect to the derivative instrument. Changes in the fair value of derivatives not designated as hedges or those not qualifying for hedge accounting are recognized in current period earnings. Upon termination of cash flow hedges, the Company reclassifies gains and losses from other comprehensive income based on the timing of the underlying cash flows, unless the termination results from the failure of the intended transaction to occur in the expected timeframe. Such untimely transactions require immediate recognition in earnings of gains and losses previously recorded in other comprehensive income. During 2016 and 2015, the Company used derivative instruments to mitigate risk, some of which were designated as hedging instruments. The tables following the discussion of the derivative instruments below summarize the fair value of the Company’s derivative instruments and the effect of derivative instruments on the Company’s consolidated statements of income and on other comprehensive income. Derivatives Designated as Hedging Instruments Diesel Fuel Hedges The Company uses independent freight carriers to deliver its products. These carriers currently charge the Company a basic rate per mile for diesel fuel price increases. During 2016 and 2015, the Company entered into hedge agreements with counterparties to mitigate the volatility of diesel fuel prices, and not to speculate in the future price of diesel fuel. Under the hedge agreements, the Company agreed to pay a fixed price per gallon of diesel fuel determined at the time the agreements were executed and to receive a floating rate payment that is determined on a monthly basis based on the average price of the Department of Energy’s Diesel Fuel Index during the applicable month and is designed to offset any increase or decrease in fuel costs that the Company pays to it common carriers. The agreements covered approximately 32% of the Company’s 2016 diesel fuel requirements and are expected to cover approximately 32% of the Company’s estimated diesel fuel requirements for 2017. These diesel fuel hedge agreements qualify for hedge accounting. Therefore, changes in the fair value of such agreements are recorded under Accumulated Other Comprehensive Income (Loss) on the balance sheet. Foreign Currency The Company is subject to exposure from fluctuations in foreign currency exchange rates, primarily U.S. Dollar/Euro, U.S. Dollar/ Pound, U.S. Dollar/Canadian Dollar, U.S. Dollar/Mexican Peso, U.S. Dollar/Australian Dollar, U.S. Dollar/Brazilian Real and U.S. Dollar/Chinese Yuan. The Company enters into forward exchange contracts to reduce the impact of foreign exchange rate fluctuations related to anticipated but not yet committed sales or purchases denominated in U.S. Dollar, Canadian Dollar, Pound and Euro. The Company entered into forward exchange contracts to hedge itself from the risk that, due to fluctuations in currency exchange rates, it would be adversely affected by net cash outflows. The face value of the unexpired contracts as of December 31, 2016 totaled $95.9 in U.S. Dollars, of which $94.1 qualify as foreign currency cash flow hedges and, therefore, changes in the fair value of the contracts are recorded in Other Comprehensive Income (Loss) and reclassified to earnings when the hedged transaction affected earnings. Interest Rate Swaps On December 9, 2014, the Company entered into interest rate swap agreements that effectively convert the interest rate on the $300.0 aggregate principal amount of 2.45% senior notes, due December 15, 2019, to a floating rate of three-month LIBOR plus a fixed spread of 0.756%. These interest rate swap agreements have been designated as hedges of the changes in fair value of the underlying debt obligation attributable to changes in interest rates and are accounted as fair value hedges. The fair value of these interest rate swap agreements is reflected in the Consolidated Balance Sheet within Other Assets or Deferred and Other Long-term Liabilities, with an offsetting amount recorded in long-term debt to adjust the carrying amount of the hedged debt obligation. Derivatives not Designated as Hedging Instruments Equity Derivatives The Company has entered into equity derivative contracts covering the Common Stock in order to minimize its liability under its Executive Deferred Compensation Plan resulting from changes in the quoted fair values of the Common Stock to participants who have investments under the Plan in a notional Common Stock fund. The contracts are settled in cash. Since the equity derivatives contracts do not qualify for hedge accounting, The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table: Notional Notional Amount Amount December 31, 2016 December 31, 2015 Derivatives designated as hedging instruments Foreign exchange contracts $ 94.1 $ 118.0 Interest rate swap $ 300.0 $ 300.0 Diesel fuel contracts 2.0 gallons 2.0 gallons Derivatives not designated as hedging instruments Foreign exchange contracts $ 1.8 $ 33.2 Equity derivatives $ 34.4 $ 32.4 The fair values and amount of gain (loss) recognized in income and other comprehensive income associated with the derivative instruments disclosed above do not have a material impact on the Company’s consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following: December 31, December 31, 2016 2015 Raw materials and supplies $ 69.8 $ 84.6 Work in process 28.8 33.1 Finished goods 159.6 156.3 Total $ 258.2 $ 274.0 Inventories valued using the LIFO method totaled $51.8 and $53.2 at December 31, 2016 and 2015, respectively, and would have been approximately $4.2 and $3.8 higher, respectively, had they been valued using the FIFO method. The amount of LIFO liquidations in 2016 and 2015 were immaterial. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net ("PP&E") | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net ("PP&E") | 5. Property, Plant and Equipment, Net (“PP&E”) PP&E consist of the following: December 31, December 31, 2016 2015 Land $ 25.1 $ 25.2 Buildings and improvements 284.7 277.3 Machinery and equipment 680.1 665.2 Software 90.4 84.9 Office equipment and other assets 60.8 59.2 Construction in progress 24.2 33.2 Gross PP&E 1,165.3 1,145.0 Less accumulated depreciation and amortization 576.7 535.4 Net PP&E $ 588.6 $ 609.6 For the Year Ended December 31, 2016 2015 2014 Depreciation and amortization on PP&E $ 59.7 $ 58.3 $ 57.1 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions On December 22, 2016, the Company acquired the ANUSOL and RECTINOL (the “Anusol Acquisition”) business from Johnson & Johnson, Inc. for $130. These are the leading hemorrhoid care brands in each market in which they operate, primarily in the U.K., Canada, Australia and South Africa with total annual sales of $24 in 2016. The acquisition was funded with additional short-term borrowings and will be managed in the Consumer International segment. The preliminary fair values of the net assets acquired are set forth as follows: 2016 Anusol Inventory and other working capital $ 0.5 Trade names and other intangibles 91.7 Goodwill 37.8 Cash purchase price $ 130.0 The life of the amortizable intangible assets recognized from the Anusol Acquisition ranges from 15 - 20 years. The goodwill is a result of expected synergies from combined operations of the acquisition and the Company. Pro forma results are not presented because the impact is not material to the Company’s consolidated financial results. On January 4, 2016, the Company acquired Spencer Forrest, Inc., the maker of TOPPIK, (the “ The fair values of the net assets acquired are set forth as follows: 2016 Toppik Inventory and other working capital $ 9.3 Property, plant and equipment and other long-term assets 0.2 Trade names and other intangibles 115.8 Goodwill 52.3 Current liabilities (2.3 ) Cash purchase price (net of cash acquired) $ 175.3 The life of the amortizable intangible assets recognized from the Toppik Acquisition ranges from 10 - 20 years. The goodwill is a result of expected synergies from combined operations of the acquisition and the Company. On January 2, 2015, the Company acquired VI-COR, a manufacturer and seller of feed ingredients for cows, beef cattle, poultry and other livestock for cash consideration of $74.9, and a $5.0 payment to be made after one year if a certain operating performance is achieved. The Company financed the acquisition with available cash. Based on 2015 operating results, the Company made a $4.6 payment in 2016. These brands are managed within the SPD segment. The fair values of the net assets acquired are set forth as follows: 2015 VI-COR Inventory and other working capital $ 1.1 Property, plant and equipment 6.4 Trade names and other intangibles 42.1 Goodwill 29.9 Purchase Price $ 79.5 Fair value of contingent payment due in one year (4.6 ) Cash purchase price $ 74.9 The life of the amortizable intangible assets recognized from the VI-COR Acquisition ranges from 5 - 15 years. The goodwill is a result of expected synergies from combined operations of the acquired assets and the Company. Pro forma results are not presented because the impact is not material to the Company’s consolidated financial results. On September 19, 2014, the Company acquired certain feminine care brands, including REPHRESH and REPLENS, from Lil’ Drug Store Products, Inc., (“Lil’ Drug Store Brands Acquisition”) for cash consideration of $215.7. The Company paid for the acquisition with additional debt. The fair values of the net assets acquired are set forth as follows: 2014 Lil' Drug Store Inventory and other working capital $ 3.2 Property, plant and equipment 0.7 Trade names and other intangibles 109.0 Goodwill 102.8 Purchase Price $ 215.7 The life of the amortizable intangible assets recognized from the Lil’ Drug Store Brands Acquisition ranges from 5 - 20 years. The goodwill is a result of expected synergies from combined operations of the acquisition and the Company. Pro forma results are not presented because the impact is not material to the Company’s consolidated financial results. The goodwill and other intangible assets associated with the Anusol Acquisition, the Toppik Acquisition, the VI-COR Acquisition, and Lil’ Drug Store Brands Acquisition are deductible for U.S. tax purposes. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | 7. Goodwill and Other Intangibles, Net The following table provides information related to the carrying value of all intangible assets, other than goodwill: December 31, 2016 December 31, 2015 Gross Amortization Gross Carrying Accumulated Period Carrying Accumulated Amount Amortization Net (Years) Amount Amortization Net Amortizable intangible assets: Trade names $ 442.6 $ (115.0 ) $ 327.6 3-20 $ 259.5 $ (96.4 ) $ 163.1 Customer Relationships 384.4 (164.2 ) 220.2 15-20 372.4 (141.8 ) 230.6 Patents/Formulas 68.7 (45.4 ) 23.3 4-20 57.4 (41.9 ) 15.5 Non Compete Agreement 1.8 (1.6 ) 0.2 5-10 1.8 (1.5 ) 0.3 Total $ 897.5 $ (326.2 ) $ 571.3 $ 691.1 $ (281.6 ) $ 409.5 Indefinite lived intangible assets - Carrying value December 31, December 31, 2016 2015 Trade names $ 860.5 $ 860.0 The increase in indefinite lived intangible assets is due to changes in foreign exchange rates. In 2014, the Company recorded an impairment charge of $5.0 for an intangible asset related to the Consumer Domestic segment. This charge is included in selling, general and administrative expenses in this segment and was the result of reduced sales and profitability related to the product line. The amount of the charge was determined from estimating that future cash flows would not be sufficient to recover the carrying amount of the asset. The Company determined that the carrying value of all trade names as of December 31, 2016 and 2015, was recoverable based upon the forecasted cash flows and profitability of the brands. The Company continues to monitor performance and should there be any significant change in forecasted assumptions or estimates, including sales, profitability and discount rate, the Company may be required to recognize an impairment charge. Intangible amortization expense amounted to approximately $46.0 for 2016, $39.9 for 2015 and $31.7 for 2014, respectively. The Company estimates that intangible amortization expense will be approximately $49.0 in 2017 and approximately $40.0 to $50.0 annually over the next five years. The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 are as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2014 $ 1,242.2 $ 62.6 $ 20.2 $ 1,325.0 VI-COR acquired goodwill 0.0 0.0 29.9 29.9 Balance at December 31, 2015 $ 1,242.2 $ 62.6 $ 50.1 $ 1,354.9 Toppik acquired goodwill 38.7 13.6 0.0 52.3 Anusol acquired goodwill 0.0 37.8 0.0 37.8 Other (0.8 ) (0.1 ) 0.0 (0.9 ) Balance at December 31, 2016 $ 1,280.1 $ 113.9 $ 50.1 $ 1,444.1 The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2016, determined that the estimated fair value substantially exceeded the carrying values of all reporting units. The determination of fair value contains numerous variables that are subject to change as business conditions change and therefore could impact fair value in the future. The Company has never incurred a goodwill impairment charge. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 8. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: December 31, December 31, 2016 2015 Trade accounts payable $ 331.6 $ 293.9 Accrued marketing and promotion costs 82.0 91.5 Accrued wages and related benefit costs 73.2 59.4 Other accrued current liabilities 82.1 63.5 Total $ 568.9 $ 508.3 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | 9. Short Short-term borrowings and long-term debt consist of the following: December 31, December 31, 2016 2015 Short-term borrowings Commercial paper issuances $ 420.0 $ 354.5 Various debt due to international banks 6.8 2.7 Total short-term borrowings $ 426.8 $ 357.2 Long-term debt 2.875% Senior notes due October 1, 2022 $ 400.0 $ 400.0 Less: Discount (0.2 ) (0.3 ) 2.45% Senior notes due December 15, 2019 300.0 300.0 Less: Discount (0.1 ) (0.1 ) Debt issuance costs, net (6.5 ) (8.1 ) Fair value adjustment related to hedged fixed rate debt instrument 0.2 1.3 Net long-term debt $ 693.4 $ 692.8 Revolving Credit Facility On December 4, 2015, the Company replaced its former $600.0 unsecured revolving credit facility with a $1,000.0 unsecured revolving credit facility (as amended, the “Credit Agreement”). Under the Credit Agreement, the Company has the ability to increase its borrowing up to an additional $600.0, subject to lender commitments and certain conditions as described in the Credit Agreement. Borrowings under the Credit Agreement are available for general corporate purposes, and are used to support the Company’s $1,000.0 commercial paper program (the “Program”). Unless extended, the Credit Agreement will terminate and all amounts outstanding thereunder will be due and payable on December 4, 2020. Interest on the Company’s borrowings under the Credit Agreement will accrue at a per annum rate equal to the sum of (x) either (at the Company’s option) (i) the adjusted LIBOR rate (generally, the LIBOR rate for an interest period selected by the Company and adjusted for statutory reserves) or (ii) the Base Rate (generally the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America’s “prime rate” and (c) the LIBOR rate for an interest period of one month plus 1.00%) plus (y) the applicable margin. The applicable margin is determined based upon the corporate credit rating of the Company and ranges from 0.875% to 1.75% per annum, in the case of any borrowing bearing interest by reference to the adjusted LIBOR rate, and 0% to 0.75%, in the case of any borrowing bearing interest by reference to the Base Rate. The Credit Agreement contains customary affirmative and negative covenants, including without limitation, restrictions on the indebtedness, liens, investments, asset dispositions, fundamental changes, changes in the nature of the business conducted, affiliate transactions, burdensome agreements and use of proceeds. Under the Credit Agreement, the Company is required to maintain its leverage ratio, defined as the ratio of Consolidated Funded Indebtedness (as defined in the Credit Agreement) to Consolidated EBITDA, at a level no greater than 3.50 to 1.00. However, if the Company consummates a material acquisition, the maximum leverage ratio increases to a level of 3.75 to 1.00 during the twelve month period commencing on the date of such acquisition. The Company was in compliance with the financial covenant in the Credit Agreement as of December 31, 2016. The Credit Agreement also contains customary events of default, including without limitation, failure to make certain payments when due, materially incorrect representations and warranties, breach of covenants, events of bankruptcy, default on other indebtedness, changes in control with respect to the Company, material adverse judgments, certain events relating to pension plans and the failure of any of the loan documents relating to the Credit Agreement to remain in full force and effect. Certain parties to the Credit Agreement, and affiliates of those parties, provide banking, investment banking and other financial services to the Company from time to time. 2.45% Senior Notes On December 9, 2014, the Company issued $300.0 aggregate principal amount of 2.45% Senior Notes due 2019 (the “2019 Notes”). The 2019 Notes were issued under the first supplemental indenture (the “First Supplemental Indenture”), dated December 9, 2014, to the indenture dated December 9, 2014 (the “Base Indenture”), between the Company and Wells Fargo Bank, N.A., as trustee. Interest on the 2019 Notes is payable semi-annually, on each June 15 and December 1. The 2019 Notes will mature on December 15, 2019, unless earlier retired or redeemed as described below. The Company may redeem the 2019 Notes, at any time in whole or from time to time in part, prior to their maturity date at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2019 Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the First Supplemental Indenture), plus 15 basis points. In addition, at any time on or after November 15, 2019 (one month prior to the maturity date of the notes), the Company may redeem the notes in whole or in part, at a redemption price equal to 100% of the principal amount of the notes to be redeemed. The 2019 Notes are senior unsecured obligations and rank equal in right of payment to the Company’s other senior unsecured debt from time to time outstanding. The 2019 Notes are effectively subordinated to any secured debt the Company incurs to the extent of the collateral securing such secured debt, and will be structurally subordinated to all future and existing obligations of the Company’s subsidiaries. The Base Indenture and the First Supplemental Indenture contain covenants that, among other things, restrict the Company’s ability to create liens and engage in sale-leaseback transactions, consolidations, mergers and dispositions of all or substantially all of the Company's assets. These covenants are subject to a number of exceptions and qualifications. 2.875% Senior Notes On September 26, 2012, the Company issued $400.0 aggregate principal amount of 2.875% Senior Notes due 2022 (the “2022 Notes”). The 2022 Notes were issued under the second supplemental indenture dated September 26, 2012 (the “BNY Mellon Second Supplemental Indenture”) to the indenture dated December 15, 2010 (the “BNY Mellon Base Indenture”) between the Company and The Bank of New York Mellon Trust Company, N.A. (“BNY Mellon”), as trustee. Interest on the 2022 Notes is payable semi-annually, on each April 1 and October 1. The 2022 Notes will mature on October 1, 2022, unless earlier retired or redeemed as described below. The Company may redeem the 2022 Notes, at any time in whole or from time to time in part, prior to their maturity date at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2022 Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the BNY Mellon Second Supplemental Indenture), plus 20 basis points. In addition, if the Company undergoes a “change of control” (as defined in the BNY Mellon Second Supplemental Indenture), and if, generally within 60 days thereafter, the 2022 Notes are rated below investment grade by each of the rating agencies designated in the BNY Mellon Second Supplemental Indenture, the Company will be required to offer to repurchase the 2022 Notes at 101% of par plus accrued and unpaid interest to the date of repurchase. The 2022 Notes are senior unsecured obligations and rank equal in right of payment to the Company’s other senior unsecured debt from time to time outstanding. The 2022 Notes are effectively subordinated to any secured debt the Company incurs to the extent of the collateral securing such secured debt, and will be structurally subordinated to all future and existing obligations of the Company’s subsidiaries. The BNY Mellon Base Indenture and the BNY Mellon Second Supplemental Indenture contain covenants that, among other things, restrict the Company’s ability to create liens and engage in sale-leaseback transactions, consolidations, mergers and dispositions of all or substantially all of the Company's assets. These covenants are subject to a number of exceptions and qualifications. Commercial Paper The Company has an agreement with two banks to establish a commercial paper program (the “Program”). Under the Program, the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of $1,000.0. The maturities of the notes will vary but may not exceed 397 days. The notes will be sold under customary terms in the commercial paper market and will be issued at a discount to par or, alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis. The interest rates will vary based on market conditions and the ratings assigned to the notes by the rating agencies designated in the agreement at the time of issuance. Subject to market conditions, the Company intends to utilize the Program as its primary short-term borrowing facility and does not intend to sell unsecured commercial paper notes in excess of the available amount under the revolving credit agreement. If, for any reason, the Company is unable to access the commercial paper market, the revolving credit facility would be utilized to meet the Company’s short-term liquidity needs. The Company had $420.0 of commercial paper outstanding as of December 31, 2016 with a weighted-average interest rate of approximately 1.0% and $354.5 as of December 31, 2015 with a weighted-average interest rate less than 0.8%. Interest Rate Swaps Concurrent with the 2019 Notes offering, the Company entered into interest rate swaps to hedge changes in the fair value of the 2019 Notes. Under the terms of the swaps, the counterparties will pay the Company a fixed rate of 2.45% and the Company will pay interest at a floating rate of three-month LIBOR plus a fixed spread of 0.756%. The fair value of these interest rate swap agreements is reflected in the Consolidated Balance Sheet within Other Assets or Deferred and Other Long-term Liabilities, with an offsetting amount recorded in long-term debt to adjust the carrying amount of the hedged debt obligation. Other Debt The Company’s Brazilian subsidiary has lines of credit that enable it to borrow in its local currency subject to various interest rates that fluctuate with the interbank interest rate. The various credit lines expire and are renewed on a regular basis. Amounts available under the lines of credit total $3.1 at current exchange rates. There were borrowings of $2.5 and $2.7 outstanding as of December 31, 2016 and 2015, respectively, under the lines of credit. In addition, this subsidiary has taken out three fixed term, fixed interest loans totaling $4.3, at the current exchange rate, with guarantees from the Company. These loans will come due in the first, second and third quarters of 2017. During the fourth quarter of 2016, the Company decided to sell its Brazilian chemical business to focus on its Brazilian consumer business. The Company anticipates the transaction to close during the first quarter of 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of income before taxes are as follows: 2016 2015 2014 Domestic $ 665.0 $ 595.6 $ 574.1 Foreign 40.9 39.8 50.8 Total $ 705.9 $ 635.4 $ 624.9 The following table summarizes the provision for U.S. federal, state and foreign income taxes: 2016 2015 2014 Current: U.S. federal $ 183.4 $ 161.4 $ 159.0 State 27.2 25.5 24.4 Foreign 11.4 14.1 14.9 222.0 201.0 198.3 Deferred: U.S. federal 19.2 22.8 11.5 State 4.1 3.3 1.1 Foreign 1.6 (2.1 ) 0.1 24.9 24.0 12.7 Total provision $ 246.9 $ 225.0 $ 211.0 Deferred tax assets (liabilities) consist of the following at December 31: 2016 2015 Deferred tax assets: Accounts receivable $ 4.8 $ 4.6 Deferred compensation 69.7 67.9 Pension, postretirement and postemployment benefits 7.7 8.7 Investment in Natronx 7.7 7.7 Other 30.8 24.4 Tax credit carryforwards/other tax attributes 12.8 14.4 International operating loss carryforwards 8.0 6.2 Total gross deferred tax assets 141.5 133.9 Valuation allowances (20.2 ) (16.3 ) Total deferred tax assets 121.3 117.6 Deferred tax liabilities: Goodwill (212.3 ) (193.5 ) Trade names and other intangibles (322.9 ) (312.4 ) Property, plant and equipment (97.1 ) (95.6 ) Total deferred tax liabilities (632.3 ) (601.5 ) Net deferred tax liability $ (511.0 ) $ (483.9 ) Long term net deferred tax asset 1.2 0.9 Long term net deferred tax liability (512.2 ) (484.8 ) Net deferred tax liability $ (511.0 ) $ (483.9 ) The difference between tax expense and the tax that would result from the application of the federal statutory rate is as follows: 2016 2015 2014 Statutory rate 35 % 35 % 35 % Tax that would result from use of the federal statutory rate $ 247.1 $ 222.4 $ 218.7 State and local income tax, net of federal effect 20.3 18.7 16.5 Varying tax rates of foreign affiliates (4.1 ) (2.6 ) (3.6 ) Benefit from domestic manufacturing deduction (14.2 ) (14.4 ) (14.3 ) Resolution of tax contingencies 0.0 0.0 (1.5 ) Valuation Allowances 2.9 8.5 0.9 Other (5.1 ) (7.6 ) (5.7 ) Recorded tax expense $ 246.9 $ 225.0 $ 211.0 Effective tax rate 35.0 % 35.4 % 33.8 % At December 31, 2016, certain foreign subsidiaries of the Company had net operating loss carryforwards of approximately $26.3. Approximately $1.0 of such net operating loss carryforwards expire on various dates through December 31, 2021. The remaining net operating loss carryforwards are not subject to expiration. The Company believes that it is more likely than not that the benefit from these net operating loss carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $8.0 and $6.2 at December 31, 2016 and 2015, respectively, on the deferred tax asset relating to these net operating loss carryforwards. The Company also believes that it is more likely than not that the benefit from certain additional deferred tax assets of a foreign subsidiary will not be realized. In recognition of this risk, the Company maintains a valuation allowance of $4.5 and $2.4 at December 31, 2016 and 2015, respectively, on these deferred tax assets. In 2015, the Company reported an impairment charge relating to its investment in Natronx. The Company believes that it is more likely than not that a tax benefit relating to the impairment will not be realized. In recognition of this risk, the Company established a valuation allowance of $7.7 in 2015, and maintains a valuation allowance of $7.7 at December 31, 2016. In 2015, the Company liquidated its subsidiary in the Netherlands and decided that the earnings of its subsidiary in France would no longer be permanently reinvested outside of the U.S. As a result, the Company repatriated cash of $93.0. The funds repatriated were used to reduce outstanding commercial paper. As a result of liquidating its subsidiary in the Netherlands, the Company recorded a tax benefit of $2.7 in the 2015 Consolidated Statement of Income and a deferred tax benefit of $11.6 through Accumulated Other Comprehensive Income . The Company had undistributed earnings of foreign subsidiaries of approximately $142.9 at December 31, 2016 for which U.S deferred taxes have not been provided. These earnings, which are considered to be permanently reinvested, would be subject to U.S. tax if they were remitted as dividends. It is not practicable to determine the deferred tax liability on these earnings because of the large number of assumptions necessary to compute the tax. The Company continues to monitor events or circumstances that may change its intention to remit undistributed earnings. In prior years, the Company has recorded liabilities in connection with uncertain tax positions, which, although supportable by the Company, may be challenged by tax authorities. Under applicable accounting guidance, these tax positions do not meet the minimum threshold required for the related tax benefit to be recognized in the income statement. The Company has no uncertain tax positions or unrecognized tax benefits at December 31, 2016. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Unrecognized tax benefits at January 1 $ 0.0 $ 4.0 $ 5.9 Gross increases - tax positions in prior period 0.0 0.0 0.0 Gross decreases - tax positions in prior period 0.0 (3.7 ) (1.5 ) Settlements 0.0 0.0 0.0 Lapse of statute of limitations 0.0 (0.3 ) (0.4 ) Unrecognized tax benefits at December 31 $ 0.0 $ 0.0 $ 4.0 In 2014, the Company recognized a benefit from the reversal of approximately $1.7 in income tax expense and $0.1 in interest expense associated with certain tax liabilities as the result of the settlement of an IRS audit for the years 2010, 2011 and 2012 and the lapse of applicable statutes of limitation of several state taxing authorities. The Company is subject to U.S. federal income tax as well as income tax in multiple state and international jurisdictions. The IRS has completed its audit of tax years through 2012. The Company is currently under audit by several state and international taxing authorities for the years 2013 through 2015. The Company does not anticipate that the settlement of audits within the next twelve months will result in a significant change in unrecognized tax benefits. The Company’s policy for recording interest associated with uncertain tax positions is to record interest as a component of income before income taxes. During the twelve months ended December 31, 2016, the Company did not recognize any interest expense relating to uncertain tax positions. During the twelve months ended December 31, 2015 and December 31, 2014, the Company recognized a net reversal of accrued interest expense associated with uncertain tax positions of approximately |
Stock Based Compensation Plans
Stock Based Compensation Plans and Other Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation Plans and Other Benefit Plans | 11. The Company has options outstanding under four equity compensation plans. Under the Amended and Restated Omnibus Equity Plan, the Company may grant options and other stock-based awards to employees and directors. Under the 1983 Stock Option Plan and the Stock Award Plan, the Company granted options to key management employees. Under the Stock Option Plan for Directors, the Company granted options to non‑employee directors. Following adoption of the original Omnibus Equity Plan by stockholders in 2008, no further grants were permitted under the other equity compensation plans. Options outstanding under the plans are issued at market value on the date of grant, vest on the third anniversary of the date of grant and must be exercised within ten years of the date of grant. If, upon termination of a participant’s employment (other than a termination for cause), a participant is at least 55 years old, has at least five years of service, and the sum of the participant’s age and years of service is at least 65, the participant may exercise any stock options granted in 2007 or later within a period of three years from the date of termination or, if earlier, the date such stock options otherwise would have expired, subject to specified conditions. Stock option transactions for the three years ended December 31, 2016 were as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding as of December 31, 2013 17.5 $ 19.74 Granted 2.3 34.81 Exercised (2.6 ) 12.57 Cancelled (0.2 ) 28.16 Outstanding as of December 31, 2014 17.0 $ 22.75 Granted 2.2 41.91 Exercised (1.8 ) 15.56 Cancelled (0.2 ) 30.95 Outstanding as of December 31, 2015 17.2 $ 25.89 Granted 2.1 46.75 Exercised (3.0 ) 16.96 Cancelled (0.3 ) 39.60 Outstanding as of December 31, 2016 16.0 $ 30.06 5.8 $ 233.5 Exercisable as of December 31, 2016 9.7 $ 22.91 4.3 $ 207.0 The following table summarizes information relating to options outstanding and exercisable as of December 31, 2016: Options Outstanding Options Exercisable Weighted Weighted Weighted Outstanding Average Average Exercisable Average Range of as of Remaining Exercise as of Exercise Exercise Prices 12/31/2016 Contractual Price 12/31/2016 Price $10.01 - $15.00 2.2 1.8 $ 13.58 2.2 $ 13.58 $15.01 - $20.00 1.2 3.4 $ 16.68 1.2 $ 16.68 $20.01 - $25.00 1.4 4.3 $ 20.32 1.4 $ 20.32 $25.01 - $30.00 2.3 5.2 $ 26.91 2.3 $ 26.91 $30.01 - $35.00 4.8 6.4 $ 32.65 2.6 $ 30.98 $40.01 - $45.00 2.8 8.4 $ 41.88 0.0 $ 0.00 $45.01 - $50.00 1.3 9.4 $ 49.36 0.0 $ 0.00 16.0 5.8 $ 30.06 9.7 $ 22.91 The table above represents the Company’s estimate of options fully vested and expected to vest. Expected forfeitures are not material and, therefore, are not reflected in the table above. The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: 2016 2015 2014 Intrinsic Value of Stock Options Exercised $ 91.5 $ 49.0 $ 58.0 Stock Compensation Expense Related to Stock Option Awards $ 14.4 $ 14.8 $ 15.2 Issued Stock Options 2.1 2.2 2.3 Weighted Average Fair Value of Stock Options issued (per share) $ 7.57 $ 6.85 $ 6.41 Fair Value of Stock Options Issued $ 16.1 $ 15.3 $ 15.0 The following table provides a summary of the assumptions used in the valuation of issued stock options: 2016 2015 2014 Risk-free interest rate 1.7 % 2.0 % 2.0 % Expected life in years 6.8 6.3 6.2 Expected volatility 17.0 % 17.2 % 20.4 % Dividend yield 1.5 % 1.6 % 1.8 % The fair value of stock options is based upon the Black Scholes option pricing model. The Company determined the stock options’ lives based on historical exercise behavior and their expected volatility and dividend yield based on the historical changes in stock price and dividend payments. The risk free interest rate is based on the yield of an applicable term Treasury instrument. As of December 31, 2016, there was a fair value of $8.9 related to unamortized stock option compensation expense, which is expected to be recognized over the next three years. The Company’s Consolidated Statements of Cash Flow reflect an add back to Net Cash Provided by Operating Activities of $16.0, $16.1 and $17.0 in 2016, 2015 and 2014, respectively, for non-cash compensation expense, primarily stock option expense. Cash flow from Financing Activities includes $30.0, $15.8 and $18.5 in 2016, 2015 and 2014, respectively, of excess tax benefits on stock options exercised. The total tax benefit for 2016, 2015 and 2014 was $30.0, $15.8 and $18.8, respectively. Other Benefit Plans International Pension Plan Terminations In 2016 the Company authorized the termination of international defined benefit pension plans under which approximately 336 participants, including 53 active employees, have accrued benefits. The Company anticipates completing the termination of this plan by the end of the second quarter of 2017, once regulatory approvals are obtained. In addition to plan assets, the Company will need to make a one-time payment of $20.0 to $26.0 ($14.0 to $19.0 after tax) to purchase annuities for participants. The Company estimates that it will incur a one-time expense of $49.0 to $55.0 ($40.0 to $45.0 after tax) in 2017 when the plan settlement is completed. This expense primarily includes the effect of the additional cash payment required at settlement and pension settlement accounting rules which require accelerated recognition of actuarial losses that were to be amortized over the expected benefit lives of participants. The estimated expense is subject to change based on valuations at the actual date of settlement. Upon the termination of these plans in 2017, the Company will have no further obligations with respect to material defined benefit pension plans. On December 31, 2014, the Company terminated an international defined benefit pension plan under which approximately 270 participants, including approximately 90 active employees, had accrued benefits. The Company completed the termination of this plan in the second quarter of 2015, after regulatory approvals were obtained. The Company made a cash contribution of $0.5 to provide for final accrued benefits and recorded a one-time expense in SG&A of $8.9 ($6.7 after tax) in the Consumer International segment when the plan settlement was completed. This expense is primarily attributable to pension settlement accounting rules which require accelerated recognition of actuarial losses that were to be amortized over the expected benefit lives of participants. Deferred Compensation Plans The Company maintains a deferred compensation plan under which certain members of management are eligible to defer a maximum of 85% of their regular compensation (i.e. salary) and incentive bonus. The amounts deferred under this plan are credited with earnings or losses based upon changes in values of notional investments elected by the plan participant. The investment options available include notional investments in various stock, bond and money market funds as well as Common Stock. Each plan participant is fully vested in the amounts the participant defers. The plan also functions as an “excess” plan whereby profit sharing contributions that cannot otherwise be contributed to the qualified savings and profit sharing plan due to limitations under Department of Treasury regulations are credited to this plan. These contributions vest under the same vesting schedule applicable to the qualified plan. The liability to plan participants for contributions designated for notional investment in Common Stock is based on the quoted fair value of the Common Stock plus any dividends credited. The Company uses cash-settled hedging instruments to minimize the cost related to the volatility of Common Stock. At December 31, 2016 and 2015, the amount of the Company’s liability under the deferred compensation plan is included in Deferred and Other Long-term Liabilities and was $98.3 and $95.8, respectively and the funded balances recorded in Other Assets amounted to $73.9 and $70.6, respectively. The amounts charged to earnings, including the effect of the hedges, totaled $2.3, $2.1, and $1.8 in 2016, 2015 and 2014, respectively. Non-employee members of the Company’s Board are eligible to defer up to 100% of their directors’ compensation into a similar plan; however, the only option for investment is Common Stock. Members of the Board are fully vested in their account balance. As of December 31, 2016, there were approximately 307 thousand shares of Common Stock from shares held as Treasury Stock in a rabbi trust to protect the interest of the directors’ deferred compensation plan participants in the event of a change of control. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2016 | |
Payments For Repurchase Of Equity [Abstract] | |
Share Repurchases | 1 2 . Share Repurchases On November 2, 2016, the Board authorized a new share repurchase program, under which the Company may repurchase up to $500 million in shares of Common Stock (the “2016 Share Repurchase Program”). The 2016 Share Repurchase Program does not have an expiration and replaced the 2015 Share Repurchase Program. The Company also continued its evergreen share repurchase program, authorized by the Board on January 29, 2014, under which the Company may repurchase, from time to time, Common Stock to reduce or eliminate dilution associated with issuances of Common Stock under the Company’s incentive plans. In 2016, the Company purchased approximately 9.0 million shares of Common Stock for $400.0, of which $103.0 was purchased under the evergreen share repurchase program, $200.0 was purchased under the 2016 Share Repurchase Program, and $97.0 was purchased under the 2015 Share Repurchase Program. As a result of the Company’s purchases, there remained $300.0 under the 2016 Share Repurchase Program as of December 31, 2016. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) Comprehensive income is defined as net income and other changes in stockholders’ equity from transactions and other events from sources other than stockholders. The components of changes in accumulated other comprehensive income (“AOCI”) are as follows: Accumulated Foreign Defined Other Currency Benefit Derivative Comprehensive Adjustments Plans Agreements Income (Loss) Balance December 31, 2013 $ 12.7 $ (13.0 ) $ 0.5 $ 0.2 Other comprehensive income before reclassifications (29.1 ) (7.7 ) (0.8 ) (37.6 ) Amounts reclassified to consolidated statement of income (a) 0.0 0.8 (1.4 ) (0.6 ) Tax benefit (expense) 0.0 2.2 1.1 3.3 Other comprehensive income (loss) (29.1 ) (4.7 ) (1.1 ) (34.9 ) Balance December 31, 2014 $ (16.4 ) $ (17.7 ) $ (0.6 ) $ (34.7 ) Other comprehensive income before reclassifications (35.8 ) 3.0 9.6 (23.2 ) Amounts reclassified to consolidated statement of income (a) 0.0 5.2 (3.0 ) 2.2 Tax benefit (expense) 13.7 (2.0 ) (1.9 ) 9.8 Other comprehensive income (loss) (22.1 ) 6.2 4.7 (11.2 ) Balance December 31, 2015 $ (38.5 ) $ (11.5 ) $ 4.1 $ (45.9 ) Other comprehensive income before reclassifications (12.1 ) (2.2 ) (5.9 ) (20.2 ) Amounts reclassified to consolidated statement of income (a) 0.0 0.0 (0.1 ) (0.1 ) Tax benefit (expense) 0.6 0.5 1.3 2.4 Other comprehensive income (loss) (11.5 ) (1.7 ) (4.7 ) (17.9 ) Balance December 31, 2016 $ (50.0 ) $ (13.2 ) $ (0.6 ) $ (63.8 ) (a) Amounts reclassified to cost of sales and selling, general and administrative expenses. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | 14. Commitments, Contingencies and Guarantees Commitments a. Operating lease rent expense, included in income from operations, amounted to $18.8, $18.5 and $19.7 in 2016, 2015 and 2014, respectively. Beginning January 1, 2013, financing lease expense was recorded primarily for the Company’s Corporate Headquarters building. In 2016, interest expense associated with this lease amounted to $4.0 and depreciation expense amounted to $2.5. The Company is obligated to pay minimum annual rentals under different operating and financing lease agreements as follows: Operating Financing Leases Leases Total 2017 $ 18.6 $ 5.7 $ 24.3 2018 16.9 6.0 22.9 2019 14.3 6.0 20.3 2020 10.8 6.0 16.8 2021 7.6 6.0 13.6 2022 and thereafter 13.4 67.3 80.7 Total future minimum lease commitments $ 81.6 $ 97.0 $ 178.6 b. The Company has a partnership with a supplier of raw materials that mines and processes sodium-based mineral deposits. The Company purchases the majority of its sodium-based raw material requirements from the partnership. The partnership agreement for the partnership terminates upon two years’ written notice by either partner. Under the partnership agreement, the Company has an annual commitment to purchase 240,000 tons of sodium-based raw materials at the prevailing market price. With the exception of the Natronx Technologies LLC (“Natronx”) joint venture, in which the Company and the partner supplier are each one-third owners, the Company is not engaged in any other material transactions with the partnership or the partner supplier. c. As of December 31, 2016, the Company had commitments of approximately $223.9. These commitments include the purchase of raw materials, packaging supplies and services from its vendors at market prices to enable the Company to respond quickly to changes in customer orders or requirements, as well as costs associated with licensing and promotion agreements. d. As of December 31, 2016, the Company had various guarantees and letters of credit of approximately $21.2. e. On November 8, 2011, the Company acquired a license for certain oral care technology for cash consideration of $4.3. In addition to this initial payment, the Company was required to make advance royalty payments of up to $5.5 upon the launch of a product utilizing the licensed technology, of which the entire $5.5 had been made as of December 31, 2015. As of December 31, 2016, no additional payments are required under the license agreement. However, upon the approval of certain New Drug Applications by the U.S. Food and Drug Administration for products incorporating the acquired technology, the Company would be required to make an additional $7.0 license payment. Legal proceedings f. The Company has been named as a defendant in a breach of contract action filed by Scantibodies Laboratory, Inc. (the “Plaintiff”) on April 1, 2014 in the U.S. District Court for the Southern District of New York. The complaint alleges, among other things, that the Company (i) breached two agreements for the manufacture and supply of pregnancy and ovulation test kits by switching suppliers, (ii) failed to give Plaintiff the proper notice, (iii) failed to reimburse Plaintiff for costs and expenses under the agreements and (iv) misrepresented its future requirements. The complaint seeks compensatory and punitive damages in an amount in excess of $20.0, as well as declaratory relief, statutory prejudgment interest and attorneys’ fees and costs. The Company is vigorously defending itself in this matter. On , the Company filed an answer to the complaint denying all of the Plaintiff’s material allegations . The parties have been engaged in fact and expert discovery, which is ongoing. In connection with this matter, the Company has reserved an amount that it does not believe is material. Although any damages ultimately paid by the Company may exceed this amount, it is not currently possible to estimate the amount of any such excess; however, any such excess could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. g. In addition, in conjunction with the Company’s acquisition and divestiture activities, the Company entered into select guarantees and indemnifications of performance with respect to the fulfillment of the Company’s commitments under applicable purchase and sale agreements. The arrangements generally indemnify the buyer or seller for damages associated with breach of contract, inaccuracies in representations and warranties surviving the closing date and satisfaction of liabilities and commitments retained under the applicable contract. Representations and warranties that survive the closing date generally survive for periods up to five years or the expiration of the applicable statutes of limitations. Potential losses under the indemnifications are generally limited to a portion of the original transaction price, or to other lesser specific dollar amounts for select provisions. With respect to sale transactions, the Company also routinely enters into non-competition agreements for varying periods of time. Guarantees and indemnifications with respect to acquisition and divestiture activities, if triggered, could have a materially adverse impact on the Company’s financial condition and results of operations. h. employment matters, antitrust, environmental, health, safety and other compliance related matters. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions The following summarizes the balances and transactions between the Company and each of (i) Armand and ArmaKleen, in which the Company holds a 50% ownership interest, and (ii) Natronx, in which the Company holds a one-third ownership interest: Armand ArmaKleen Natronx Year Ended December 31, Year Ended December 31, Year 2016 2015 2014 2016 2015 2014 2016 2015 2014 Purchases by Company $ 20.9 $ 24.2 $ 26.4 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.0 $ 1.0 $ 1.3 $ 1.2 $ 0.8 $ 2.1 $ 2.0 Outstanding Accounts Receivable $ 0.5 $ 0.5 $ 0.6 $ 0.7 $ 0.6 $ 0.8 $ 0.0 $ 0.1 $ 0.1 Outstanding Accounts Payable $ 1.7 $ 1.8 $ 2.1 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 2.3 $ 2.3 $ 2.1 $ 2.0 $ 2.0 $ 2.0 $ 0.4 $ 0.8 $ 0.8 (1) Billed by Company and recorded as a reduction of selling, general and administrative expenses. During 2015, the Company impaired its remaining investment in Natronx and recorded a $17.0 charge. This charge is primarily a result of lower than expected demand for the joint venture’s products as a result of a shift in the electric utility industry from coal-fired to natural gas-supplied power plants, continued delays in the implementation of updated federal regulations, and indirectly, the recent U.S. Supreme Court ruling against the Environmental Protection Agency (“EPA”) where the court stated that the EPA failed to properly consider the costs to implement the regulations. The Company believed that the foregoing factors would likely further delay the demand for these products. The Company assessed the value of the investment using both income and market based valuation methods. The charge was recorded in the Corporate segment in Equity in Earnings (Losses) of Affiliates. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segments | 16. Segments Segment Information The Company operates three reportable segments: Consumer Domestic, Consumer International and Specialty Products Division. These segments are determined based on differences in the nature of products and organizational and ownership structures. The Company also has a Corporate segment. Segment revenues are derived from the sale of the following products: Segment Products Consumer Domestic Household and personal care products Consumer International Primarily personal care products SPD Specialty chemical products The Corporate segment income consists of equity in earnings (losses) of affiliates. As of December 31 Some of the subsidiaries that are included in the Consumer International segment manufacture and sell personal care products to the Consumer Domestic segment. These sales are eliminated from the Consumer International segment results set forth in the table below. The following table presents selected financial information relating to the Company’s segments for each of the three years in the period ended December 31, 2016: Consumer Consumer Domestic International SPD Corporate (1) As Net sales 2016 $ 2,677.8 $ 525.2 $ 290.1 $ 0.0 $ 3,493.1 2015 2,581.6 501.0 312.2 0.0 3,394.8 2014 2,471.6 535.2 290.8 0.0 3,297.6 Gross profit 2016 1,308.8 235.4 83.0 (36.6 ) 1,590.6 2015 1,215.7 226.8 101.9 (32.6 ) 1,511.8 2014 1,160.9 242.1 76.6 (26.7 ) 1,452.9 Marketing Expenses 2016 345.2 78.2 3.8 0.0 427.2 2015 336.5 76.6 4.4 0.0 417.5 2014 333.2 80.5 3.2 0.0 416.9 Selling, General and Administrative Expenses 2016 350.7 89.0 36.1 (36.6 ) 439.2 2015 326.2 93.3 33.2 (32.6 ) 420.1 2014 302.0 93.9 25.6 (26.7 ) 394.8 Income from Operations 2016 612.9 68.2 43.1 0.0 724.2 2015 553.0 56.9 64.3 0.0 674.2 2014 525.7 67.6 47.9 0.0 641.2 Equity in Earnings (Losses) of Affiliates 2016 0.0 0.0 0.0 9.2 9.2 2015 0.0 0.0 0.0 (5.8 ) (5.8 ) 2014 0.0 0.0 0.0 11.6 11.6 Income Before Income Taxes 2016 590.6 66.3 39.8 9.2 705.9 2015 529.4 54.5 57.3 (5.8 ) 635.4 2014 502.8 64.7 45.8 11.6 624.9 Identifiable Assets 2016 3,374.4 714.5 181.3 83.9 4,354.1 2015 3,449.9 521.0 206.5 79.5 4,256.9 2014 3,502.9 619.8 135.1 101.4 4,359.2 Capital Expenditures 2016 34.9 8.8 6.1 0.0 49.8 2015 51.5 7.2 3.1 0.0 61.8 2014 59.2 8.4 2.9 0.0 70.5 Depreciation & Amortization 2016 87.8 9.5 8.6 1.7 107.6 2015 82.6 7.9 8.5 2.0 101.0 2014 76.7 7.6 5.2 1.7 91.2 (1) The Corporate segment reflects the following: (A) (B) (C) Other than the differences noted in footnote (1) (2) Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table above, were $3.4, $5.3 and $1.9 for the twelve months ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively. Product line revenues from external customers for each of the three years ended December 31, 2016, December 31, 2015 and December 31, 2014 were as follows: 2016 2015 2014 Household Products $ 1,593.4 $ 1,544.3 $ 1,466.2 Personal Care Products 1,084.4 1,037.3 1,005.4 Total Consumer Domestic 2,677.8 2,581.6 2,471.6 Total Consumer International 525.2 501.0 535.2 Total SPD 290.1 312.2 290.8 Total Consolidated Net Sales $ 3,493.1 $ 3,394.8 $ 3,297.6 Household Products include laundry, deodorizing, and cleaning products. Personal Care Products include condoms, pregnancy kits, oral care products, skin care products, hair care products and gummy dietary supplements. Geographic Information Approximately 84%, 83% and 81% of the net sales reported in the accompanying consolidated financial statements in 2016, 2015 and 2014, respectively, were to customers in the U.S. Approximately 98%, 96% and 96% of long-lived assets were located in the U.S. at December 31, 2016, 2015 and 2014, respectively. Other than the U.S., no one country accounts for more than 5% of consolidated net sales and 5% of total assets. Customers A group of three customers accounted for approximately 35%, 35% and 36% of consolidated net sales in 2016, 2015 and 2014, respectively, of which a single customer (Wal-Mart Stores, Inc. and its affiliates) accounted for approximately 24%, 24% and 25% in 2016, 2015 and 2014, respectively. |
Brazil_s Chemical Business
Brazil’s Chemical Business | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Brazil's Chemical Business | 17. During fourth quarter of 2016, the Company decided to sell its Brazilian chemical business to focus on its Brazilian consumer business, resulting in a plant impairment charge of $4.9 recognized in the fourth quarter of 2016 based upon an anticipated selling price. During the first quarter of 2017, the Company signed an agreement to sell the business, resulting in an approximate $5.0 expense for severance and other charges. Sales for the Brazilian chemical business in 2016 were approximately $22.0. The Company anticipates the transaction to close during the first quarter. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 18. Viviscal Acquisition On January 17, 2017, the Company acquired the VIVISCAL business (“the Viviscal Acquisition”) from Lifes2Good Holdings Limited for approximately $160.0. Viviscal is the number one hair care supplement brand both in the U.S. and the United Kingdom with global annual sales of $44.0 in 2016. This brand is complementary to the Company’s global BATISTE dry shampoo and TOPPIK hair care business. The acquisition was funded with short-term borrowings and will be managed in the Consumer Domestic and Consumer International segments. |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | 19. Unaudited Quarterly Financial Information The unaudited quarterly results of operations are prepared in conformity with generally accepted accounting principles and reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results of operations for the periods presented. Adjustments are of a normal, recurring nature, except as discussed in the accompanying notes. Due to rounding differences, the sum of the quarterly amounts may not add precisely to the annual amounts. First Second Third Fourth Full Quarter Quarter Quarter Quarter Year 2016 Net Sales $ 849.0 $ 877.4 $ 870.7 $ 896.0 $ 3,493.1 Gross Profit 379.0 408.0 395.6 408.0 1,590.6 Income from Operations 179.5 175.3 196.0 173.4 724.2 Net Income 113.0 111.6 124.0 110.4 459.0 Net Income per Share-Basic $ 0.44 $ 0.43 $ 0.48 $ 0.43 $ 1.78 Net Income per Share-Diluted $ 0.43 $ 0.43 $ 0.47 $ 0.42 $ 1.75 2015 Net Sales $ 812.3 $ 847.1 $ 861.8 $ 873.6 $ 3,394.8 Gross Profit 355.5 373.1 385.8 397.4 1,511.8 Income from Operations 172.1 142.3 190.6 169.2 674.2 Net Income (1) 107.2 73.7 120.4 109.1 410.4 Net Income per Share-Basic (1) (2) $ 0.41 $ 0.28 $ 0.46 $ 0.42 $ 1.57 Net Income per Share-Diluted (1) (2) $ 0.40 $ 0.28 $ 0.45 $ 0.41 $ 1.54 (1) The second quarter of 2015 Net Income includes a $17.0 or $0.06 per share impairment charge to write-off the remaining investment in Natronx. (2) The second quarter of 2015 Income from Operations includes an $8.9 pre-tax charge or $0.03 per share to terminate an international defined benefit pension plan. |
SCHEDULE II-Valuation and Quali
SCHEDULE II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II-Valuation and Qualifying Accounts | SCHEDULE II - Valuation and Qualifying Accounts For each of the three years in the period ended December 31, 2016 (Dollars in millions) Additions Deductions Beginning Charged to Amounts Foreign Ending Balance Expenses Acquired Written Off Exchange Balance Allowance for Doubtful Accounts 2016 $ 1.0 $ 1.3 $ 0.0 $ (0.3 ) $ 0.1 $ 2.1 2015 1.9 0.3 0.0 (1.0 ) (0.2 ) 1.0 2014 0.8 1.5 0.0 (0.2 ) (0.2 ) 1.9 Allowance for Cash Discounts 2016 $ 4.6 $ 69.8 $ 0.0 $ (69.8 ) $ 0.0 $ 4.6 2015 5.2 68.6 0.0 (69.2 ) 0.0 4.6 2014 5.1 66.9 0.0 (67.0 ) 0.2 5.2 Sales Returns and Allowances 2016 $ 11.9 $ 56.7 $ 0.0 $ (56.8 ) $ 0.3 $ 12.1 2015 11.9 67.4 0.0 (67.4 ) 0.0 11.9 2014 11.6 58.6 0.0 (58.1 ) (0.2 ) 11.9 |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Business | Business The Company, founded in 1846, develops, manufactures and markets a broad range of household, personal care and specialty products. The Company sells its consumer products under a variety of brands through a broad distribution platform that includes supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar, pet and other specialty stores and websites, all of which sell the products to consumers. The Company also sells specialty products to industrial customers and distributors. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the U.S. and include the accounts of the Company and its majority‑owned subsidiaries. For equity investments in which the Company does not control or have the ability to exert significant influence over the investee, which generally is when the Company has less than a 20% ownership interest, the investments are accounted for under the cost method. In circumstances where the Company has greater than a 20% ownership interest and has the ability to exercise significant influence over, but does not control, the investee, the investment is accounted for under the equity method. As a result, the Company accounts for its 50% interest in its Armand Products Company (“Armand”) joint venture and its 50% interest in The ArmaKleen Company (“ArmaKleen”) joint venture under the equity method. The Company’s one-third interest in its Natronx Technologies, LLC (“Natronx”) joint venture was accounted for under the equity method until the remaining investment in it was fully impaired in 2015. Armand, ArmaKleen and Natronx are specialty chemical businesses. The Company’s equity in earnings (losses) of Armand and ArmaKleen for the year ended December 31, 2016 and Armand, ArmaKleen and Natronx for the years ended December 31, 2015 and 2014 are included in the Corporate segment, as described in Note 16. On August 4, 2016, the Company announced a two-for-one stock split of the Company’s common stock (“Common Stock”). The stock split was structured in the form of a 100% stock dividend, payable on September 1, 2016 to stockholders of record as of August 15, 2016. All applicable amounts in the consolidated financial statements and related disclosures have been retroactively adjusted to reflect the stock split. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Management makes estimates regarding inventory valuation, promotional and sales returns reserves, the carrying amount of goodwill and other intangible assets, the realization of deferred tax assets, tax reserves, liabilities related to pensions and other postretirement benefit obligations and other matters that affect the reported amounts and other disclosures in the financial statements. These estimates are based on judgment and available information. Actual results could differ materially from those estimates, and it is possible that changes in such estimates could occur in the near term. |
Revenue Recognition | R ev Revenue is recognized when finished goods are delivered to the Company’s customers or when finished goods are picked up by a customer or a customer’s carrier. |
Promotional and Sales Returns Reserves | Promotional and Sales Returns Reserves The Company conducts extensive promotional activities, primarily through the use of off-list discounts, slotting, coupons, cooperative advertising, periodic price reduction arrangements, and end-aisle and other in-store displays. The costs of such activities are netted against sales. Slotting costs are recorded when the product is delivered to the customer. Costs associated with coupon redemption are recorded when coupons are circulated. Cooperative advertising costs are recorded when the customer places the advertisement for the Company’s products. Discounts relating to price reduction arrangements are recorded when the related sale takes place. Costs associated with end-aisle or other in-store displays are recorded when the revenue from the product that is subject to the promotion is recognized. The reserves for sales returns and consumer and trade promotion liabilities are established based on the Company’s best estimate of the amounts necessary to settle future and existing obligations for products sold as of the balance sheet date. The Company uses historical trend experience and coupon redemption provider input in arriving at coupon reserve requirements, and uses forecasted appropriations, customer and sales organization inputs, and historical trend analysis in determining the reserves for other promotional activities and sales returns. |
Sales of Accounts Receivable | Sales of Accounts Receivable The Company entered into a factoring agreement with a financial institution to sell certain customer receivables at discounted rates in 2015. Transactions under this agreement are accounted for as sales of accounts receivable and were removed from the Consolidated Balance Sheet at the time of the sales transaction. The Company factored an additional $22.3 in 2016, resulting in a total of $60.1 and $37.8 as of December 31, 2016 and 2015, respectively. |
Cost of Sales | Cost of Sales, Marketing and Selling, General and Administrative Expenses Cost of sales include costs related to the manufacture of the Company’s products, including raw material, inbound freight, direct labor (including employee compensation benefits) and indirect plant costs such as plant supervision, receiving, inspection, maintenance labor and materials, depreciation, taxes and insurance, purchasing, production planning, operations management, logistics, freight to customers, warehousing costs, internal transfer freight costs and plant impairment charges. |
Marketing | Marketing expenses include costs for advertising (excluding the costs of cooperative advertising programs, which are reflected in net sales), costs for coupon insertion (mainly the cost of printing and distribution), consumer promotion costs (such as on-shelf advertisements and floor ads), public relations, package design expense and market research costs. |
Selling, General and Administrative Expenses | Selling, general and administrative expenses (“SG&A”) expenses include, among others, costs related to functions such as sales, corporate management, research and development, marketing administration, information technology and legal. Such costs include salary compensation related costs (such as benefits, incentive compensation and profit sharing), stock option costs, depreciation, travel and entertainment related expenses, professional and other consulting fees and amortization of intangible assets. |
Foreign Currency Translation | Foreign Currency Translation Unrealized gains and losses related to currency translation are recorded in Accumulated Other Comprehensive Income (Loss). Gains and losses on foreign currency transactions are recorded in the Consolidated Statements of Income. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid short-term investments and term bank deposits, which mature within three months of their original maturity date. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Approximately 20% and 19% of the inventory at December 31, 2016 and 2015, respectively, including substantially all inventory in the Company’s Specialty Products Division (“SPD”) segment as well as domestic inventory sold primarily under the ARM & HAMMER trademark in the Consumer Domestic segment, was determined utilizing the last-in, first-out (“LIFO”) method. The cost of the remaining inventory was determined using the first-in, first-out (“FIFO”) method. The Company identifies any slow moving, obsolete or excess inventory to determine whether an adjustment is required to establish a new carrying value. The determination of whether inventory items are slow moving, obsolete or in excess of needs requires estimates and assumptions about the future demand for the Company’s products, technological changes, and new product introductions. Estimates as to the future demand used in the valuation of inventory involve judgments regarding the ongoing success of the Company’s products. The Company evaluates its inventory levels and expected usage on a periodic basis and records adjustments as required. Adjustments to reflect inventory at net realizable value were $10.5 at December 31, 2016, and $12.6 at December 31, 2015. |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment (“PP&E”) are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives of the respective assets. Estimated useful lives for building and improvements, machinery and equipment, and office equipment range from 9-40, 3-20 and 3-10 years, respectively. Routine repairs and maintenance are expensed when incurred. Leasehold improvements are depreciated over a period no longer than the respective lease term, except where a lease renewal has been determined to be reasonably assured and failure to renew the lease results in a significant penalty to the Company. PP&E are reviewed annually and whenever events or changes in circumstances indicate that possible impairment exists. The Company’s impairment review is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of Company assets and liabilities. The analysis requires management judgment with respect to changes in technology, the continued success of product lines, and future volume, revenue and expense growth rates. The Company conducts annual reviews to identify idle and underutilized equipment, and reviews business plans for possible impairment. Impairment occurs when the carrying value of the asset exceeds the future undiscounted cash flows. When an impairment is indicated, the estimated future cash flows are then discounted to determine the estimated fair value of the asset and an impairment charge is recorded for the difference between the carrying value and the net present value of estimated future cash flows. |
Software | Software The Company capitalizes certain costs of developing computer software. Amortization is recorded using the straight‑line method over the estimated useful life of the software, which is estimated to be no longer than 10 years. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Certain financial instruments are required to be recorded at fair value. The estimated fair values of such financial instruments (including investment securities and other derivatives) have been determined using market information and valuation methodologies. Changes in assumptions or estimation methods could affect the fair value estimates. Other financial instruments, including cash equivalents and short-term debt, are recorded at cost, which approximates fair value. Additional information regarding the Company’s risk management activities, including derivative instruments and hedging activities, are separately disclosed. See Notes 2 and 3. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Carrying values of goodwill, trade names and other indefinite lived intangible assets are reviewed periodically for possible impairment. The Company’s impairment analysis is based on a discounted cash flow approach that requires significant judgment with respect to unit volume, revenue and expense growth rates, and the selection of an appropriate discount rate. Management uses estimates based on expected trends in making these assumptions. With respect to goodwill, impairment occurs when the carrying value of the reporting unit exceeds the discounted present value of cash flows for that reporting unit. For trade names and other intangible assets, an impairment charge is recorded for the difference between the carrying value and the net present value of estimated future cash flows, which represents the estimated fair value of the asset. Judgment is required in assessing whether assets may have become impaired between annual valuations. Indicators such as unexpected adverse economic factors, unanticipated technological change, distribution losses, or competitive activities and acts by governments and courts may indicate that an asset has become impaired. Intangible assets with finite lives are amortized over their estimated useful lives, which range from 3-20 years, using the straight-line method, and reviewed for impairment when changes in market circumstances occur. It is possible that the Company’s conclusions regarding impairment or recoverability of goodwill or other intangible assets could change in future periods if, for example, (i) the businesses or brands do not perform as projected, (ii) overall economic conditions in 2017 or future years vary from current assumptions (including changes in discount rates), (iii) business conditions or strategies change from current assumptions, (iv) investors require higher rates of return on equity investments in the marketplace or (v) enterprise values of comparable publicly traded companies, or actual sales transactions of comparable companies, were to decline, resulting in lower multiples of revenues and EBITDA. |
Research and Development | Research and Development The Company incurred research and development expenses in the amount of $63.2, $64.7 and $59.8 in 2016, 2015 and 2014, respectively. These expenses are included in SG&A expenses and are expensed as incurred. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is calculated based on income available to holders of the Company’s common stock (“Common Stock”) and the weighted-average number of shares outstanding during the reported period. Diluted EPS includes additional dilution from potential Common Stock issuable pursuant to the exercise of outstanding stock options. The following table sets forth a reconciliation of the weighted-average number of shares of Common Stock outstanding to the weighted-average number of shares outstanding on a diluted basis: 2016 2015 2014 Weighted average common shares outstanding - basic 257.6 262.2 270.2 Dilutive effect of stock options 4.5 5.0 4.8 Weighted average common shares outstanding - diluted 262.1 267.2 275.0 Antidilutive stock options outstanding 1.4 2.2 2.4 |
Employee and Director Stock Option Based Compensation | Employee and Director Stock Option Based Compensation The fair value of share-based compensation is determined at the grant date and the related expense is recognized over the required employee service period in which the share-based compensation vests. The following table presents the pre-tax expense associated with the fair value of unvested stock options and restricted stock awards included in SG&A expenses and in cost of sales: For the Year Ended December 31, 2016 2015 2014 Cost of sales $ 1.9 $ 1.6 $ 1.6 Selling, general and administrative expenses 14.1 14.5 15.4 Total $ 16.0 $ 16.1 $ 17.0 |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled. Management provides a valuation allowance against deferred tax assets for amounts which are not considered “more likely than not” to be realized. The Company records liabilities for potential assessments in various tax jurisdictions in accordance with accounting principles generally accepted in the U.S. (GAAP). The liabilities relate to tax return positions that, although supportable by the Company, may be challenged by the tax authorities and do not meet the minimum recognition threshold required under applicable accounting guidance for the related tax benefit to be recognized in the income statement. The Company adjusts this liability as a result of changes in tax legislation, interpretations of laws by courts, rulings by tax authorities, changes in estimates and the expiration of the statute of limitations. Many of the judgments involved in adjusting the liability involve assumptions and estimates that are highly uncertain and subject to change. In this regard, settlement of any issue with, or an adverse determination in litigation against, a taxing authority could require the use of cash and result in an increase in the Company’s annual tax rate. Conversely, favorable resolution of an issue with a taxing authority would be recognized as a reduction to the Company’s annual tax rate. |
New Accounting Pronouncements Adopted and Issued | New Accounting Pronouncements Issued In August 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance seeking to eliminate diversity in practice related to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments address eight specific cash flow issues and are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The guidance will be applied on a retrospective basis beginning with the earliest period presented. This guidance is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In March, April, and May of 2016, the FASB issued amended guidance that clarifies the principles for recognizing revenue. The amendments clarify the guidance for identifying performance obligations, licensing arrangements and principal versus agent considerations. The amendments additionally provide clarification on how to assess collectability, present sales tax, treat noncash consideration, and account for completed and modified contracts at the time of transition. The guidance is effective for annual periods, including interim reporting periods within those periods, beginning after December 15, 2017, and allows companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption. The new standard will be effective for the Company at the beginning of its first quarter of fiscal year 2018. The guidance is not expected to have a material impact on its consolidated financial position, results of operations or cash flows. In March 2016, the FASB issued new accounting guidance that makes modifications to how companies account for certain aspects of share-based payment awards to employees, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as the classification of excess tax benefits in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2016. The Company will adopt the standard in the first quarter of fiscal year 2017 and will elect to adopt the cash flow presentation of the excess tax benefits prospectively. The Company has also elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The adoption is expected to impact the Company's income tax provision on its Consolidated Statements of Income and its operating and financing cash flows on its Consolidated Statements of Cash Flows. The impact of adopting this standard on the consolidated financial statements will be dependent on the timing and intrinsic value of future share-based compensation award exercises. In February 2016, the FASB issued new lease accounting guidance, requiring lessees to recognize right-of-use lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases, with a term greater than a year. The new guidance also expands the required quantitative and qualitative disclosures surrounding leases. The guidance is effective for annual and interim periods beginning after December 15, 2018, and requires a modified retrospective adoption, with early adoption permitted. The Company is currently evaluating the impact that adoption of the guidance will have on its consolidated financial position, results of operations and cash flows. There have been no other accounting pronouncements issued but not yet adopted by the Company which are expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Significant Accounting Polici30
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Reconciliation Of Weighted Average Number Of Common Shares Outstanding | . The following table sets forth a reconciliation of the weighted-average number of shares of Common Stock outstanding to the weighted-average number of shares outstanding on a diluted basis: 2016 2015 2014 Weighted average common shares outstanding - basic 257.6 262.2 270.2 Dilutive effect of stock options 4.5 5.0 4.8 Weighted average common shares outstanding - diluted 262.1 267.2 275.0 Antidilutive stock options outstanding 1.4 2.2 2.4 |
Summary of Pre-Tax Expense Associated with Fair value of Unvested Stock Options and Restricted Stock Awards | The following table presents the pre-tax expense associated with the fair value of unvested stock options and restricted stock awards included in SG&A expenses and in cost of sales: For the Year Ended December 31, 2016 2015 2014 Cost of sales $ 1.9 $ 1.6 $ 1.6 Selling, general and administrative expenses 14.1 14.5 15.4 Total $ 16.0 $ 16.1 $ 17.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments at December 31, 2016 and December 31, 2015: December 31, 2016 December 31, 2015 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 72.4 $ 72.4 $ 89.3 $ 89.3 Financial Liabilities: Short-term borrowings Level 2 426.8 426.8 357.2 357.2 2.875% Senior notes Level 2 399.8 396.9 399.7 390.5 2.45% Senior notes Level 2 299.9 302.0 299.9 296.0 Fair value adjustment asset (liability) related to hedged fixed rate debt instrument Level 2 0.2 0.2 1.3 1.3 |
Derivative Instruments and Ri32
Derivative Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts | The notional amount of a derivative instrument is the nominal or face amount used to calculate payments made on that instrument. Notional amounts are presented in the following table: Notional Notional Amount Amount December 31, 2016 December 31, 2015 Derivatives designated as hedging instruments Foreign exchange contracts $ 94.1 $ 118.0 Interest rate swap $ 300.0 $ 300.0 Diesel fuel contracts 2.0 gallons 2.0 gallons Derivatives not designated as hedging instruments Foreign exchange contracts $ 1.8 $ 33.2 Equity derivatives $ 34.4 $ 32.4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: December 31, December 31, 2016 2015 Raw materials and supplies $ 69.8 $ 84.6 Work in process 28.8 33.1 Finished goods 159.6 156.3 Total $ 258.2 $ 274.0 |
Property, Plant and Equipment34
Property, Plant and Equipment, Net ("PP&E") (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | PP&E consist of the following: December 31, December 31, 2016 2015 Land $ 25.1 $ 25.2 Buildings and improvements 284.7 277.3 Machinery and equipment 680.1 665.2 Software 90.4 84.9 Office equipment and other assets 60.8 59.2 Construction in progress 24.2 33.2 Gross PP&E 1,165.3 1,145.0 Less accumulated depreciation and amortization 576.7 535.4 Net PP&E $ 588.6 $ 609.6 For the Year Ended December 31, 2016 2015 2014 Depreciation and amortization on PP&E $ 59.7 $ 58.3 $ 57.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Anusol Acquisition | |
Fair Values of Assets Acquired | The preliminary fair values of the net assets acquired are set forth as follows: 2016 Anusol Inventory and other working capital $ 0.5 Trade names and other intangibles 91.7 Goodwill 37.8 Cash purchase price $ 130.0 |
Spencer Forrest, Inc | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2016 Toppik Inventory and other working capital $ 9.3 Property, plant and equipment and other long-term assets 0.2 Trade names and other intangibles 115.8 Goodwill 52.3 Current liabilities (2.3 ) Cash purchase price (net of cash acquired) $ 175.3 |
VI-COR | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2015 VI-COR Inventory and other working capital $ 1.1 Property, plant and equipment 6.4 Trade names and other intangibles 42.1 Goodwill 29.9 Purchase Price $ 79.5 Fair value of contingent payment due in one year (4.6 ) Cash purchase price $ 74.9 |
Lil Drug Store Brands | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2014 Lil' Drug Store Inventory and other working capital $ 3.2 Property, plant and equipment 0.7 Trade names and other intangibles 109.0 Goodwill 102.8 Purchase Price $ 215.7 |
Goodwill and Other Intangible36
Goodwill and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | The following table provides information related to the carrying value of all intangible assets, other than goodwill: December 31, 2016 December 31, 2015 Gross Amortization Gross Carrying Accumulated Period Carrying Accumulated Amount Amortization Net (Years) Amount Amortization Net Amortizable intangible assets: Trade names $ 442.6 $ (115.0 ) $ 327.6 3-20 $ 259.5 $ (96.4 ) $ 163.1 Customer Relationships 384.4 (164.2 ) 220.2 15-20 372.4 (141.8 ) 230.6 Patents/Formulas 68.7 (45.4 ) 23.3 4-20 57.4 (41.9 ) 15.5 Non Compete Agreement 1.8 (1.6 ) 0.2 5-10 1.8 (1.5 ) 0.3 Total $ 897.5 $ (326.2 ) $ 571.3 $ 691.1 $ (281.6 ) $ 409.5 |
Indefinite Lived Intangible Assets | Indefinite lived intangible assets - Carrying value December 31, December 31, 2016 2015 Trade names $ 860.5 $ 860.0 |
Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 are as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2014 $ 1,242.2 $ 62.6 $ 20.2 $ 1,325.0 VI-COR acquired goodwill 0.0 0.0 29.9 29.9 Balance at December 31, 2015 $ 1,242.2 $ 62.6 $ 50.1 $ 1,354.9 Toppik acquired goodwill 38.7 13.6 0.0 52.3 Anusol acquired goodwill 0.0 37.8 0.0 37.8 Other (0.8 ) (0.1 ) 0.0 (0.9 ) Balance at December 31, 2016 $ 1,280.1 $ 113.9 $ 50.1 $ 1,444.1 |
Accounts Payable and Accrued 37
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: December 31, December 31, 2016 2015 Trade accounts payable $ 331.6 $ 293.9 Accrued marketing and promotion costs 82.0 91.5 Accrued wages and related benefit costs 73.2 59.4 Other accrued current liabilities 82.1 63.5 Total $ 568.9 $ 508.3 |
Short-Term Borrowings and Lon38
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Short-Term Borrowings and Long-Term Debt | Short-term borrowings and long-term debt consist of the following: December 31, December 31, 2016 2015 Short-term borrowings Commercial paper issuances $ 420.0 $ 354.5 Various debt due to international banks 6.8 2.7 Total short-term borrowings $ 426.8 $ 357.2 Long-term debt 2.875% Senior notes due October 1, 2022 $ 400.0 $ 400.0 Less: Discount (0.2 ) (0.3 ) 2.45% Senior notes due December 15, 2019 300.0 300.0 Less: Discount (0.1 ) (0.1 ) Debt issuance costs, net (6.5 ) (8.1 ) Fair value adjustment related to hedged fixed rate debt instrument 0.2 1.3 Net long-term debt $ 693.4 $ 692.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Taxes | The components of income before taxes are as follows: 2016 2015 2014 Domestic $ 665.0 $ 595.6 $ 574.1 Foreign 40.9 39.8 50.8 Total $ 705.9 $ 635.4 $ 624.9 |
Schedule of U.S. Federal, State and Foreign Income Taxes | The following table summarizes the provision for U.S. federal, state and foreign income taxes: 2016 2015 2014 Current: U.S. federal $ 183.4 $ 161.4 $ 159.0 State 27.2 25.5 24.4 Foreign 11.4 14.1 14.9 222.0 201.0 198.3 Deferred: U.S. federal 19.2 22.8 11.5 State 4.1 3.3 1.1 Foreign 1.6 (2.1 ) 0.1 24.9 24.0 12.7 Total provision $ 246.9 $ 225.0 $ 211.0 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consist of the following at December 31: 2016 2015 Deferred tax assets: Accounts receivable $ 4.8 $ 4.6 Deferred compensation 69.7 67.9 Pension, postretirement and postemployment benefits 7.7 8.7 Investment in Natronx 7.7 7.7 Other 30.8 24.4 Tax credit carryforwards/other tax attributes 12.8 14.4 International operating loss carryforwards 8.0 6.2 Total gross deferred tax assets 141.5 133.9 Valuation allowances (20.2 ) (16.3 ) Total deferred tax assets 121.3 117.6 Deferred tax liabilities: Goodwill (212.3 ) (193.5 ) Trade names and other intangibles (322.9 ) (312.4 ) Property, plant and equipment (97.1 ) (95.6 ) Total deferred tax liabilities (632.3 ) (601.5 ) Net deferred tax liability $ (511.0 ) $ (483.9 ) Long term net deferred tax asset 1.2 0.9 Long term net deferred tax liability (512.2 ) (484.8 ) Net deferred tax liability $ (511.0 ) $ (483.9 ) |
Effective Tax Rate Reconciliation | The difference between tax expense and the tax that would result from the application of the federal statutory rate is as follows: 2016 2015 2014 Statutory rate 35 % 35 % 35 % Tax that would result from use of the federal statutory rate $ 247.1 $ 222.4 $ 218.7 State and local income tax, net of federal effect 20.3 18.7 16.5 Varying tax rates of foreign affiliates (4.1 ) (2.6 ) (3.6 ) Benefit from domestic manufacturing deduction (14.2 ) (14.4 ) (14.3 ) Resolution of tax contingencies 0.0 0.0 (1.5 ) Valuation Allowances 2.9 8.5 0.9 Other (5.1 ) (7.6 ) (5.7 ) Recorded tax expense $ 246.9 $ 225.0 $ 211.0 Effective tax rate 35.0 % 35.4 % 33.8 % |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Unrecognized tax benefits at January 1 $ 0.0 $ 4.0 $ 5.9 Gross increases - tax positions in prior period 0.0 0.0 0.0 Gross decreases - tax positions in prior period 0.0 (3.7 ) (1.5 ) Settlements 0.0 0.0 0.0 Lapse of statute of limitations 0.0 (0.3 ) (0.4 ) Unrecognized tax benefits at December 31 $ 0.0 $ 0.0 $ 4.0 |
Stock Based Compensation Plan40
Stock Based Compensation Plans and Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity | Stock option transactions for the three years ended December 31, 2016 were as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value Outstanding as of December 31, 2013 17.5 $ 19.74 Granted 2.3 34.81 Exercised (2.6 ) 12.57 Cancelled (0.2 ) 28.16 Outstanding as of December 31, 2014 17.0 $ 22.75 Granted 2.2 41.91 Exercised (1.8 ) 15.56 Cancelled (0.2 ) 30.95 Outstanding as of December 31, 2015 17.2 $ 25.89 Granted 2.1 46.75 Exercised (3.0 ) 16.96 Cancelled (0.3 ) 39.60 Outstanding as of December 31, 2016 16.0 $ 30.06 5.8 $ 233.5 Exercisable as of December 31, 2016 9.7 $ 22.91 4.3 $ 207.0 |
Summary of Information Relating to Options Outstanding and Exercisable | The following table summarizes information relating to options outstanding and exercisable as of December 31, 2016: Options Outstanding Options Exercisable Weighted Weighted Weighted Outstanding Average Average Exercisable Average Range of as of Remaining Exercise as of Exercise Exercise Prices 12/31/2016 Contractual Price 12/31/2016 Price $10.01 - $15.00 2.2 1.8 $ 13.58 2.2 $ 13.58 $15.01 - $20.00 1.2 3.4 $ 16.68 1.2 $ 16.68 $20.01 - $25.00 1.4 4.3 $ 20.32 1.4 $ 20.32 $25.01 - $30.00 2.3 5.2 $ 26.91 2.3 $ 26.91 $30.01 - $35.00 4.8 6.4 $ 32.65 2.6 $ 30.98 $40.01 - $45.00 2.8 8.4 $ 41.88 0.0 $ 0.00 $45.01 - $50.00 1.3 9.4 $ 49.36 0.0 $ 0.00 16.0 5.8 $ 30.06 9.7 $ 22.91 |
Information Regarding Intrinsic Value of Stock Options Exercised and Stock Compensation Expense Related to Stock Option Awards | The following table provides information regarding the intrinsic value of stock options exercised and stock compensation expense related to stock option awards: 2016 2015 2014 Intrinsic Value of Stock Options Exercised $ 91.5 $ 49.0 $ 58.0 Stock Compensation Expense Related to Stock Option Awards $ 14.4 $ 14.8 $ 15.2 Issued Stock Options 2.1 2.2 2.3 Weighted Average Fair Value of Stock Options issued (per share) $ 7.57 $ 6.85 $ 6.41 Fair Value of Stock Options Issued $ 16.1 $ 15.3 $ 15.0 |
Assumptions Used in Valuation of Issued Stock Options | The following table provides a summary of the assumptions used in the valuation of issued stock options: 2016 2015 2014 Risk-free interest rate 1.7 % 2.0 % 2.0 % Expected life in years 6.8 6.3 6.2 Expected volatility 17.0 % 17.2 % 20.4 % Dividend yield 1.5 % 1.6 % 1.8 % |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Components of Changes in Accumulated Other Comprehensive Income | The components of changes in accumulated other comprehensive income (“AOCI”) are as follows: Accumulated Foreign Defined Other Currency Benefit Derivative Comprehensive Adjustments Plans Agreements Income (Loss) Balance December 31, 2013 $ 12.7 $ (13.0 ) $ 0.5 $ 0.2 Other comprehensive income before reclassifications (29.1 ) (7.7 ) (0.8 ) (37.6 ) Amounts reclassified to consolidated statement of income (a) 0.0 0.8 (1.4 ) (0.6 ) Tax benefit (expense) 0.0 2.2 1.1 3.3 Other comprehensive income (loss) (29.1 ) (4.7 ) (1.1 ) (34.9 ) Balance December 31, 2014 $ (16.4 ) $ (17.7 ) $ (0.6 ) $ (34.7 ) Other comprehensive income before reclassifications (35.8 ) 3.0 9.6 (23.2 ) Amounts reclassified to consolidated statement of income (a) 0.0 5.2 (3.0 ) 2.2 Tax benefit (expense) 13.7 (2.0 ) (1.9 ) 9.8 Other comprehensive income (loss) (22.1 ) 6.2 4.7 (11.2 ) Balance December 31, 2015 $ (38.5 ) $ (11.5 ) $ 4.1 $ (45.9 ) Other comprehensive income before reclassifications (12.1 ) (2.2 ) (5.9 ) (20.2 ) Amounts reclassified to consolidated statement of income (a) 0.0 0.0 (0.1 ) (0.1 ) Tax benefit (expense) 0.6 0.5 1.3 2.4 Other comprehensive income (loss) (11.5 ) (1.7 ) (4.7 ) (17.9 ) Balance December 31, 2016 $ (50.0 ) $ (13.2 ) $ (0.6 ) $ (63.8 ) (a) Amounts reclassified to cost of sales and selling, general and administrative expenses. |
Commitments, Contingencies an42
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Non-Cancelable Long-Term Operating Leases And Capital Lease | The Company is obligated to pay minimum annual rentals under different operating and financing lease agreements as follows: Operating Financing Leases Leases Total 2017 $ 18.6 $ 5.7 $ 24.3 2018 16.9 6.0 22.9 2019 14.3 6.0 20.3 2020 10.8 6.0 16.8 2021 7.6 6.0 13.6 2022 and thereafter 13.4 67.3 80.7 Total future minimum lease commitments $ 81.6 $ 97.0 $ 178.6 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes the balances and transactions between the Company and each of (i) Armand and ArmaKleen, in which the Company holds a 50% ownership interest, and (ii) Natronx, in which the Company holds a one-third ownership interest: Armand ArmaKleen Natronx Year Ended December 31, Year Ended December 31, Year 2016 2015 2014 2016 2015 2014 2016 2015 2014 Purchases by Company $ 20.9 $ 24.2 $ 26.4 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.0 $ 1.0 $ 1.3 $ 1.2 $ 0.8 $ 2.1 $ 2.0 Outstanding Accounts Receivable $ 0.5 $ 0.5 $ 0.6 $ 0.7 $ 0.6 $ 0.8 $ 0.0 $ 0.1 $ 0.1 Outstanding Accounts Payable $ 1.7 $ 1.8 $ 2.1 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 2.3 $ 2.3 $ 2.1 $ 2.0 $ 2.0 $ 2.0 $ 0.4 $ 0.8 $ 0.8 (1) Billed by Company and recorded as a reduction of selling, general and administrative expenses. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Selected Financial Information Relating To Company's Segments | The following table presents selected financial information relating to the Company’s segments for each of the three years in the period ended December 31, 2016: Consumer Consumer Domestic International SPD Corporate (1) As Net sales 2016 $ 2,677.8 $ 525.2 $ 290.1 $ 0.0 $ 3,493.1 2015 2,581.6 501.0 312.2 0.0 3,394.8 2014 2,471.6 535.2 290.8 0.0 3,297.6 Gross profit 2016 1,308.8 235.4 83.0 (36.6 ) 1,590.6 2015 1,215.7 226.8 101.9 (32.6 ) 1,511.8 2014 1,160.9 242.1 76.6 (26.7 ) 1,452.9 Marketing Expenses 2016 345.2 78.2 3.8 0.0 427.2 2015 336.5 76.6 4.4 0.0 417.5 2014 333.2 80.5 3.2 0.0 416.9 Selling, General and Administrative Expenses 2016 350.7 89.0 36.1 (36.6 ) 439.2 2015 326.2 93.3 33.2 (32.6 ) 420.1 2014 302.0 93.9 25.6 (26.7 ) 394.8 Income from Operations 2016 612.9 68.2 43.1 0.0 724.2 2015 553.0 56.9 64.3 0.0 674.2 2014 525.7 67.6 47.9 0.0 641.2 Equity in Earnings (Losses) of Affiliates 2016 0.0 0.0 0.0 9.2 9.2 2015 0.0 0.0 0.0 (5.8 ) (5.8 ) 2014 0.0 0.0 0.0 11.6 11.6 Income Before Income Taxes 2016 590.6 66.3 39.8 9.2 705.9 2015 529.4 54.5 57.3 (5.8 ) 635.4 2014 502.8 64.7 45.8 11.6 624.9 Identifiable Assets 2016 3,374.4 714.5 181.3 83.9 4,354.1 2015 3,449.9 521.0 206.5 79.5 4,256.9 2014 3,502.9 619.8 135.1 101.4 4,359.2 Capital Expenditures 2016 34.9 8.8 6.1 0.0 49.8 2015 51.5 7.2 3.1 0.0 61.8 2014 59.2 8.4 2.9 0.0 70.5 Depreciation & Amortization 2016 87.8 9.5 8.6 1.7 107.6 2015 82.6 7.9 8.5 2.0 101.0 2014 76.7 7.6 5.2 1.7 91.2 (1) The Corporate segment reflects the following: (A) (B) (C) |
Product Line Revenues From External Customers | Product line revenues from external customers for each of the three years ended December 31, 2016, December 31, 2015 and December 31, 2014 were as follows: 2016 2015 2014 Household Products $ 1,593.4 $ 1,544.3 $ 1,466.2 Personal Care Products 1,084.4 1,037.3 1,005.4 Total Consumer Domestic 2,677.8 2,581.6 2,471.6 Total Consumer International 525.2 501.0 535.2 Total SPD 290.1 312.2 290.8 Total Consolidated Net Sales $ 3,493.1 $ 3,394.8 $ 3,297.6 |
Unaudited Quarterly Financial45
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | First Second Third Fourth Full Quarter Quarter Quarter Quarter Year 2016 Net Sales $ 849.0 $ 877.4 $ 870.7 $ 896.0 $ 3,493.1 Gross Profit 379.0 408.0 395.6 408.0 1,590.6 Income from Operations 179.5 175.3 196.0 173.4 724.2 Net Income 113.0 111.6 124.0 110.4 459.0 Net Income per Share-Basic $ 0.44 $ 0.43 $ 0.48 $ 0.43 $ 1.78 Net Income per Share-Diluted $ 0.43 $ 0.43 $ 0.47 $ 0.42 $ 1.75 2015 Net Sales $ 812.3 $ 847.1 $ 861.8 $ 873.6 $ 3,394.8 Gross Profit 355.5 373.1 385.8 397.4 1,511.8 Income from Operations 172.1 142.3 190.6 169.2 674.2 Net Income (1) 107.2 73.7 120.4 109.1 410.4 Net Income per Share-Basic (1) (2) $ 0.41 $ 0.28 $ 0.46 $ 0.42 $ 1.57 Net Income per Share-Diluted (1) (2) $ 0.40 $ 0.28 $ 0.45 $ 0.41 $ 1.54 (1) The second quarter of 2015 Net Income includes a $17.0 or $0.06 per share impairment charge to write-off the remaining investment in Natronx. (2) The second quarter of 2015 Income from Operations includes an $8.9 pre-tax charge or $0.03 per share to terminate an international defined benefit pension plan. |
Significant Accounting Polici46
Significant Accounting Policies - Additional Information (Details) $ in Millions | Aug. 04, 2016 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Significant Accounting Policies [Line Items] | ||||
Additional proceed from sale of accounts receivable | $ 22.3 | |||
Proceed from sale of accounts receivable | $ 60.1 | $ 37.8 | ||
Percentage of inventory determined using LIFO | 20.00% | 19.00% | ||
Adjustments to reflect inventory at net realizable value | $ 10.5 | $ 12.6 | ||
Research and development expenses | $ 63.2 | $ 64.7 | $ 59.8 | |
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful life (years) | 3 years | |||
Minimum | Building and Building Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 9 years | |||
Minimum | Machinery and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Minimum | Office Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful life (years) | 20 years | |||
Maximum | Software | ||||
Significant Accounting Policies [Line Items] | ||||
Intangible assets, estimated useful life (years) | 10 years | |||
Maximum | Building and Building Improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | |||
Maximum | Machinery and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 20 years | |||
Maximum | Office Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 10 years | |||
Common Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Common stock split ratio | 2 | |||
Stock dividend payable percentage of common stock | 100.00% | |||
Stock dividend payable date | Sep. 1, 2016 | |||
Stock dividend record date | Aug. 15, 2016 | |||
Armand Products Company | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | |
ArmaKleen Company | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | |
Natronx Technologies LLC | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest | 33.33% | 33.33% | 33.33% |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Weighted average common shares outstanding - basic | 257.6 | 262.2 | 270.2 |
Dilutive effect of stock options | 4.5 | 5 | 4.8 |
Weighted average common shares outstanding - diluted | 262.1 | 267.2 | 275 |
Antidilutive stock options outstanding | 1.4 | 2.2 | 2.4 |
Summary of Pre-Tax Expense Asso
Summary of Pre-Tax Expense Associated with Fair value of Unvested Stock Options and Restricted Stock Awards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | $ 14.4 | $ 14.8 | $ 15.2 |
Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | 1.9 | 1.6 | 1.6 |
Selling, General and Administrative Expenses | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | 14.1 | 14.5 | 15.4 |
Unvested Stock Options Fair Value | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | $ 16 | $ 16.1 | $ 17 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term borrowings | $ 426.8 | $ 357.2 |
Fair Value, Inputs, Level 1 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 72.4 | 89.3 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 72.4 | 89.3 |
Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term borrowings | 426.8 | 357.2 |
Fair value adjustment asset (liability) related to hedged fixed rate debt instrument | 0.2 | 1.3 |
Fair Value, Inputs, Level 2 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustment asset (liability) related to hedged fixed rate debt instrument | 0.2 | 1.3 |
Short-term borrowings | 426.8 | 357.2 |
2.875% Senior notes due October 1, 2022 | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 399.8 | 399.7 |
2.875% Senior notes due October 1, 2022 | Fair Value, Inputs, Level 2 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 396.9 | 390.5 |
2.45% Senior notes due December 15, 2019 | Fair Value, Inputs, Level 2 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 299.9 | 299.9 |
2.45% Senior notes due December 15, 2019 | Fair Value, Inputs, Level 2 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 302 | $ 296 |
Carrying Amounts and Estimate50
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Parenthetical) (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
2.875% Senior notes due October 1, 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
2.875% Senior notes due October 1, 2022 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
2.45% Senior notes due December 15, 2019 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.45% Senior notes due December 15, 2019 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
Derivative Instruments and Ri51
Derivative Instruments and Risk Management - Additional Information (Details) - USD ($) $ in Millions | Dec. 09, 2014 | Dec. 31, 2016 |
2.45% Senior notes due December 15, 2019 | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Interest rate of debt | 2.45% | |
Maturity date of debt | Dec. 15, 2019 | |
Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Face value of unexpired foreign currency contracts | $ 95.9 | |
Interest Rate Swaps | LIBOR-Based Rate | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Interest rate, spread | 0.756% | |
Interest Rate Swaps | 2.45% Senior notes due December 15, 2019 | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Senior notes | $ 300 | |
Interest rate of debt | 2.45% | |
Maturity date of debt | Dec. 15, 2019 | |
Interest Rate Swaps | 2.45% Senior notes due December 15, 2019 | LIBOR-Based Rate | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Interest rate, spread | 0.756% | |
Designated as Hedging Instrument | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative hedging agreements covering diesel fuel requirements | 32.00% | |
Derivative hedging agreements covering diesel fuel requirements, year 2017 | 32.00% | |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Face value of unexpired foreign currency contracts | $ 94.1 |
Schedule of Notional Amounts (D
Schedule of Notional Amounts (Details) gal in Millions, $ in Millions | Dec. 31, 2016USD ($)gal | Dec. 31, 2015USD ($)gal |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 94.1 | $ 118 |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 300 | $ 300 |
Designated as Hedging Instrument | Diesel fuel contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | gal | 2 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 1.8 | $ 33.2 |
Not Designated as Hedging Instrument | Equity derivatives | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount | $ 34.4 | $ 32.4 |
Components of Inventories (Deta
Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Finished Goods and Work in Process, Net of Reserves [Abstract] | ||
Raw materials and supplies | $ 69.8 | $ 84.6 |
Work in process | 28.8 | 33.1 |
Finished goods | 159.6 | 156.3 |
Total | $ 258.2 | $ 274 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
LIFO inventory amount | $ 51.8 | $ 53.2 |
Excess of FIFO over LIFO amount | $ 4.2 | $ 3.8 |
Components of Property, Plant a
Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 1,165.3 | $ 1,145 |
Less accumulated depreciation and amortization | 576.7 | 535.4 |
Net PP&E | 588.6 | 609.6 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 25.1 | 25.2 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 284.7 | 277.3 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 680.1 | 665.2 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 90.4 | 84.9 |
Office equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 60.8 | 59.2 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 24.2 | $ 33.2 |
Depreciation and Interest Charg
Depreciation and Interest Charges on Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization on PP&E | $ 59.7 | $ 58.3 | $ 57.1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Dec. 22, 2016 | Jan. 04, 2016 | Jan. 02, 2015 | Sep. 19, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 | ||||
Cash consideration | $ 305.3 | 74.9 | $ 215.7 | ||||||||||||
Anusol Acquisition | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Date of business acquisition | Dec. 22, 2016 | ||||||||||||||
Purchase price | $ 130 | ||||||||||||||
Net Sales | $ 24 | ||||||||||||||
Anusol Acquisition | Minimum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||
Anusol Acquisition | Maximum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 20 years | ||||||||||||||
Spencer Forrest, Inc | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Date of business acquisition | Jan. 4, 2016 | ||||||||||||||
Purchase price | $ 175.3 | ||||||||||||||
Spencer Forrest, Inc | Minimum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 10 years | ||||||||||||||
Spencer Forrest, Inc | Maximum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 20 years | ||||||||||||||
VI-COR | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Date of business acquisition | Jan. 2, 2015 | ||||||||||||||
Cash consideration | $ 74.9 | ||||||||||||||
Payment after one year if certain operating performance is achieved | $ 5 | ||||||||||||||
Business combination, contingent payment made | $ 4.6 | $ 4.6 | $ 4.6 | $ 4.6 | |||||||||||
VI-COR | Minimum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 5 years | ||||||||||||||
VI-COR | Maximum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||
Lil Drug Store Brands | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Date of business acquisition | Sep. 19, 2014 | ||||||||||||||
Cash consideration | $ 215.7 | ||||||||||||||
Lil Drug Store Brands | Minimum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 5 years | ||||||||||||||
Lil Drug Store Brands | Maximum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Average life of the amortizable intangible assets, years | 20 years |
Fair Values of Net Assets Acqui
Fair Values of Net Assets Acquired (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,444.1 | $ 1,354.9 | $ 1,325 |
Anusol Acquisition | |||
Business Acquisition [Line Items] | |||
Inventory and other working capital | 0.5 | ||
Trade names and other intangibles | 91.7 | ||
Goodwill | 37.8 | ||
Cash purchase price | 130 | ||
Spencer Forrest, Inc | |||
Business Acquisition [Line Items] | |||
Inventory and other working capital | 9.3 | ||
Property, plant and equipment and other long-term assets | 0.2 | ||
Trade names and other intangibles | 115.8 | ||
Goodwill | 52.3 | ||
Current liabilities | (2.3) | ||
Cash purchase price | 175.3 | ||
VI-COR | |||
Business Acquisition [Line Items] | |||
Inventory and other working capital | 1.1 | ||
Property, plant and equipment | 6.4 | ||
Trade names and other intangibles | 42.1 | ||
Goodwill | 29.9 | ||
Purchase Price | 79.5 | ||
Fair value of contingent payment due in one year | $ (4.6) | (4.6) | |
Cash purchase price | $ 74.9 | ||
Lil Drug Store Brands | |||
Business Acquisition [Line Items] | |||
Inventory and other working capital | 3.2 | ||
Property, plant and equipment | 0.7 | ||
Trade names and other intangibles | 109 | ||
Goodwill | 102.8 | ||
Purchase Price | $ 215.7 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 897.5 | $ 691.1 |
Accumulated Amortization | (326.2) | (281.6) |
Net | $ 571.3 | 409.5 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 3 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 442.6 | 259.5 |
Accumulated Amortization | (115) | (96.4) |
Net | $ 327.6 | 163.1 |
Trade Names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 3 years | |
Trade Names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 384.4 | 372.4 |
Accumulated Amortization | (164.2) | (141.8) |
Net | $ 220.2 | 230.6 |
Customer Relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 15 years | |
Customer Relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 68.7 | 57.4 |
Accumulated Amortization | (45.4) | (41.9) |
Net | $ 23.3 | 15.5 |
Patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 4 years | |
Patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 20 years | |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1.8 | 1.8 |
Accumulated Amortization | (1.6) | (1.5) |
Net | $ 0.2 | $ 0.3 |
Noncompete Agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 5 years | |
Noncompete Agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period (Years) | 10 years |
Indefinite Lived Intangible Ass
Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Value, Trade names | $ 860.5 | $ 860 |
Goodwill and Other Intangible61
Goodwill and Other Intangibles, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Impairment charge of intangible asset | $ 5.6 | $ 19.2 | $ 6.4 |
Amortization expense of intangible assets | 46 | $ 39.9 | 31.7 |
Estimated amortization expense, 2017 | 49 | ||
Minimum | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2018 | 40 | ||
Estimated amortization expense, 2019 | 40 | ||
Estimated amortization expense, 2020 | 40 | ||
Estimated amortization expense, 2021 | 40 | ||
Estimated amortization expense, 2022 | 40 | ||
Maximum | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2018 | 50 | ||
Estimated amortization expense, 2019 | 50 | ||
Estimated amortization expense, 2020 | 50 | ||
Estimated amortization expense, 2021 | 50 | ||
Estimated amortization expense, 2022 | $ 50 | ||
Consumer Domestic | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Impairment charge of intangible asset | $ 5 |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning balance | $ 1,354.9 | $ 1,325 |
Other | (0.9) | |
Ending balance | 1,444.1 | 1,354.9 |
VI-COR | ||
Goodwill [Line Items] | ||
Beginning balance | 29.9 | |
Goodwill acquired during the period | 29.9 | |
Ending balance | 29.9 | |
Spencer Forrest, Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 52.3 | |
Ending balance | 52.3 | |
Anusol Acquisition | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 37.8 | |
Ending balance | 37.8 | |
Consumer Domestic | ||
Goodwill [Line Items] | ||
Beginning balance | 1,242.2 | 1,242.2 |
Other | (0.8) | |
Ending balance | 1,280.1 | 1,242.2 |
Consumer Domestic | VI-COR | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Consumer Domestic | Spencer Forrest, Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 38.7 | |
Consumer Domestic | Anusol Acquisition | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Consumer International | ||
Goodwill [Line Items] | ||
Beginning balance | 62.6 | 62.6 |
Other | (0.1) | |
Ending balance | 113.9 | 62.6 |
Consumer International | VI-COR | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Consumer International | Spencer Forrest, Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 13.6 | |
Consumer International | Anusol Acquisition | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 37.8 | |
Specialty Products | ||
Goodwill [Line Items] | ||
Beginning balance | 50.1 | 20.2 |
Other | 0 | |
Ending balance | 50.1 | 50.1 |
Specialty Products | VI-COR | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | $ 29.9 | |
Specialty Products | Spencer Forrest, Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Specialty Products | Anusol Acquisition | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | $ 0 |
Accounts Payable and Accrued 63
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Trade accounts payable | $ 331.6 | $ 293.9 |
Accrued marketing and promotion costs | 82 | 91.5 |
Accrued wages and related benefit costs | 73.2 | 59.4 |
Other accrued current liabilities | 82.1 | 63.5 |
Total | $ 568.9 | $ 508.3 |
Summary of Short-Term Borrowing
Summary of Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term borrowings | ||
Commercial paper issuances | $ 420 | $ 354.5 |
Various debt due to international banks | 6.8 | 2.7 |
Total short-term borrowings | 426.8 | 357.2 |
Long-term debt | ||
Debt issuance costs, net | (6.5) | (8.1) |
Fair value adjustment related to hedged fixed rate debt instrument | 0.2 | 1.3 |
Net long-term debt | 693.4 | 692.8 |
2.875% Senior notes due October 1, 2022 | ||
Long-term debt | ||
Senior notes | 400 | 400 |
Less: Discount | (0.2) | (0.3) |
2.45% Senior notes due December 15, 2019 | ||
Long-term debt | ||
Senior notes | 300 | 300 |
Less: Discount | $ (0.1) | $ (0.1) |
Summary of Short-Term Borrowi65
Summary of Short-Term Borrowings and Long-Term Debt (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
2.875% Senior notes due October 1, 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 2.875% | 2.875% |
Maturity date of debt | Oct. 1, 2022 | Oct. 1, 2022 |
2.45% Senior notes due December 15, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
Maturity date of debt | Dec. 15, 2019 | Dec. 15, 2019 |
Short-Term Borrowings and Lon66
Short-Term Borrowings and Long-Term Debt - Additional Information (Details) - USD ($) $ in Millions | Dec. 09, 2014 | Sep. 26, 2012 | Sep. 30, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 04, 2015 |
Debt Instrument [Line Items] | ||||||
Consolidated funded indebtedness to EBITDA ratio | 3.50 | |||||
Maximum leverage ratio related to material acquisition | 3.75 | |||||
Commercial paper issuances | $ 420 | $ 354.5 | ||||
Various debt due to international banks | $ 6.8 | $ 2.7 | ||||
Interest Rate Swaps | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, swap | 2.45% | |||||
2.45% Senior notes due December 15, 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of debt | Dec. 15, 2019 | |||||
Aggregate principal amount | $ 300 | |||||
Interest rate of debt | 2.45% | |||||
Interest payment frequency | payable semi-annually, on each June 15 and December 1 | |||||
Debt repayment terms | The Company may redeem the 2019 Notes, at any time in whole or from time to time in part, prior to their maturity date at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2019 Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the First Supplemental Indenture), plus 15 basis points. In addition, at any time on or after November 15, 2019 (one month prior to the maturity date of the notes), the Company may redeem the notes in whole or in part, at a redemption price equal to 100% of the principal amount of the notes to be redeemed. In addition, if the Company undergoes a “change of control” (as defined in the First Supplemental Indenture), and if, generally within 60 days thereafter, the 2019 Notes are rated below investment grade by each of the rating agencies designated in the First Supplemental Indenture, the Company will be required to offer to repurchase the 2019 Notes at 101% of par plus accrued and unpaid interest to the date of repurchase. | |||||
2.45% Senior notes due December 15, 2019 | Interest Rate Swaps | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of debt | Dec. 15, 2019 | |||||
Interest rate of debt | 2.45% | |||||
2.45% Senior notes due December 15, 2019 | Repayment Terms | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of principal amount of notes being redeemed | 100.00% | |||||
Percentage of principal amount of notes required if rated below investment grade | 101.00% | |||||
2.875% Senior notes due October 1, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of debt | Oct. 1, 2022 | |||||
Aggregate principal amount | $ 400 | |||||
Interest rate of debt | 2.875% | |||||
Interest payment frequency | payable semi-annually, on each April 1 and October 1 | |||||
Debt repayment terms | The Company may redeem the 2022 Notes, at any time in whole or from time to time in part, prior to their maturity date at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2022 Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the BNY Mellon Second Supplemental Indenture), plus 20 basis points. In addition, if the Company undergoes a “change of control” (as defined in the BNY Mellon Second Supplemental Indenture), and if, generally within 60 days thereafter, the 2022 Notes are rated below investment grade by each of the rating agencies designated in the BNY Mellon Second Supplemental Indenture, the Company will be required to offer to repurchase the 2022 Notes at 101% of par plus accrued and unpaid interest to the date of repurchase. | |||||
2.875% Senior notes due October 1, 2022 | Repayment Terms | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of principal amount of notes being redeemed | 100.00% | |||||
Percentage of principal amount of notes required if rated below investment grade | 101.00% | |||||
Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 0.50% | |||||
LIBOR-Based Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 1.00% | |||||
LIBOR-Based Rate | Interest Rate Swaps | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, spread | 0.756% | |||||
LIBOR-Based Rate | 2.45% Senior notes due December 15, 2019 | Interest Rate Swaps | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, spread | 0.756% | |||||
Treasury Rate | 2.45% Senior notes due December 15, 2019 | Repayment Terms | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 0.15% | |||||
Treasury Rate | 2.875% Senior notes due October 1, 2022 | Repayment Terms | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 0.20% | |||||
Maximum | LIBOR-Based Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 1.75% | |||||
Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 0.75% | |||||
Minimum | LIBOR-Based Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 0.875% | |||||
Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, variable interest rate | 0.00% | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000 | |||||
Weighted average interest rate | 1.00% | |||||
Notes maximum maturity days | 397 days | |||||
Commercial Paper | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 0.80% | |||||
Unsecured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 600 | |||||
Line of credit facility, current borrowing capacity | 1,000 | |||||
Additional borrowing capacity | $ 600 | |||||
Maturity date of debt | Dec. 4, 2020 | |||||
Other Debt | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | $ 3.1 | |||||
Various debt due to international banks | 2.5 | $ 2.7 | ||||
Fixed Interest Loans | ||||||
Debt Instrument [Line Items] | ||||||
Various debt due to international banks | $ 4.3 |
Components of Income Before Tax
Components of Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 665 | $ 595.6 | $ 574.1 |
Foreign | 40.9 | 39.8 | 50.8 |
Income before Income Taxes | $ 705.9 | $ 635.4 | $ 624.9 |
Schedule of U.S. Federal, State
Schedule of U.S. Federal, State and Foreign Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal | $ 183.4 | $ 161.4 | $ 159 |
State, Current | 27.2 | 25.5 | 24.4 |
Foreign, Current | 11.4 | 14.1 | 14.9 |
Current income tax expense (benefit) | 222 | 201 | 198.3 |
U.S. federal, Deferred | 19.2 | 22.8 | 11.5 |
State, Deferred | 4.1 | 3.3 | 1.1 |
Foreign, Deferred | 1.6 | (2.1) | 0.1 |
Deferred income tax expense (benefit) | 24.9 | 24 | 12.7 |
Recorded tax expense | $ 246.9 | $ 225 | $ 211 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Accounts receivable | $ 4.8 | $ 4.6 |
Deferred compensation | 69.7 | 67.9 |
Pension, postretirement and postemployment benefits | 7.7 | 8.7 |
Investment in Natronx | 7.7 | 7.7 |
Other | 30.8 | 24.4 |
Tax credit carryforwards/other tax attributes | 12.8 | 14.4 |
International operating loss carryforwards | 8 | 6.2 |
Total gross deferred tax assets | 141.5 | 133.9 |
Valuation allowances | (20.2) | (16.3) |
Total deferred tax assets | 121.3 | 117.6 |
Goodwill | (212.3) | (193.5) |
Trade names and other intangibles | (322.9) | (312.4) |
Property, plant and equipment | (97.1) | (95.6) |
Total deferred tax liabilities | (632.3) | (601.5) |
Net deferred tax liability | (511) | (483.9) |
Long term net deferred tax asset | 1.2 | 0.9 |
Long term net deferred tax liability | $ (512.2) | $ (484.8) |
Effective Tax Rate Reconciliati
Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
Tax that would result from use of the federal statutory rate | $ 247.1 | $ 222.4 | $ 218.7 |
State and local income tax, net of federal effect | 20.3 | 18.7 | 16.5 |
Varying tax rates of foreign affiliates | (4.1) | (2.6) | (3.6) |
Benefit from domestic manufacturing deduction | (14.2) | (14.4) | (14.3) |
Resolution of tax contingencies | 0 | 0 | (1.5) |
Valuation Allowances | 2.9 | 8.5 | 0.9 |
Other | (5.1) | (7.6) | (5.7) |
Recorded tax expense | $ 246.9 | $ 225 | $ 211 |
Effective tax rate | 35.00% | 35.40% | 33.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||||
Valuation allowance | $ 8 | $ 6.2 | ||
Deferred tax assets, valuation allowances | 20.2 | 16.3 | ||
Repatriation of foreign cash | 93 | |||
Income taxes | 246.9 | 225 | $ 211 | |
Deferred tax benefit | (2.4) | (9.8) | (3.3) | |
Undistributed earnings of foreign subsidiaries | 142.9 | |||
Uncertain tax positions or unrecognized tax benefits | 0 | 0 | 4 | $ 5.9 |
Interest expense associated with uncertain tax positions | 0 | 0.2 | 0.1 | |
Accrued interest expense associated with uncertain tax positions | 0 | 0 | ||
Reversal Of Income Tax Expense | ||||
Income Tax [Line Items] | ||||
Tax adjustments from settlement and lapse of applicable statutes of limitation | 1.7 | |||
Reversal Of Pretax Interest Expense | ||||
Income Tax [Line Items] | ||||
Tax adjustments from settlement and lapse of applicable statutes of limitation | $ 0.1 | |||
Foreign Cash Repatriated | ||||
Income Tax [Line Items] | ||||
Income taxes | 2.7 | |||
Deferred tax benefit | 11.6 | |||
Natronx Technologies LLC | ||||
Income Tax [Line Items] | ||||
Deferred tax assets, valuation allowances | 7.7 | 7.7 | ||
Quimica Geral Do Nordeste Sa | ||||
Income Tax [Line Items] | ||||
Deferred tax assets, valuation allowances | 4.5 | $ 2.4 | ||
Foreign Tax Authority | ||||
Income Tax [Line Items] | ||||
Loss carryforward | 26.3 | |||
Loss carryforward subject to expiration | $ 1 | |||
Loss carryforward expiration date | Dec. 31, 2021 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at January 1 | $ 0 | $ 4 | $ 5.9 |
Gross increases - tax positions in prior period | 0 | 0 | 0 |
Gross decreases - tax positions in prior period | 0 | (3.7) | (1.5) |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | 0 | (0.3) | (0.4) |
Unrecognized tax benefits at December 31 | $ 0 | $ 0 | $ 4 |
Stock Based Compensation Plan73
Stock Based Compensation Plans and Other Benefit Plans - Additional Information (Details) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)CompensationPlanParticipantsEmployeeshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)ParticipantsEmployee | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of compensation plans | CompensationPlan | 4 | ||
Compensation cost not yet recognized | $ 8.9 | ||
Period of amortization expected to be recognized | 3 years | ||
Non-cash compensation expense | $ 16 | $ 16.1 | $ 17 |
Excess tax benefit on stock options exercised | 30 | 15.8 | 18.5 |
Tax benefit from stock options exercised | 30 | 15.8 | 18.8 |
Deferred Compensation Plans | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Deferred compensation liability | 98.3 | 95.8 | |
Amounts charged to earnings | $ 2.3 | 2.1 | $ 1.8 |
Shares held in rabbi trust | shares | 307 | ||
Deferred Compensation Plans | Other Assets | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Funded balances | $ 73.9 | $ 70.6 | |
Deferred Compensation Plans | Management | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of compensation contribution | 85.00% | ||
Deferred Compensation Plans | Director | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of compensation contribution | 100.00% | ||
Foreign Pension Plan, Defined Benefit | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Defined benefit plan, number of plan participants | Participants | 336 | 270 | |
Defined benefit plan, plan participants, number of active employees | Employee | 53 | 90 | |
Foreign Pension Plan, Defined Benefit | Consumer International | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
One-time settlement expense | $ 8.9 | ||
One-time settlement expense, net of tax | 6.7 | ||
Cash contribution for final accrued benefits | $ 0.5 | ||
Foreign Pension Plan, Defined Benefit | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Estimated one time termination payment to purchase annuities | $ 20 | ||
Estimated one time termination payment to purchase annuities, net of tax | 14 | ||
One-time settlement expense | 49 | ||
One-time settlement expense, net of tax | 40 | ||
Foreign Pension Plan, Defined Benefit | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Estimated one time termination payment to purchase annuities | 26 | ||
Estimated one time termination payment to purchase annuities, net of tax | 19 | ||
One-time settlement expense | 55 | ||
One-time settlement expense, net of tax | $ 45 | ||
Exercise Options Granted In Two Thousand Seven Or Latter Within Three Year From Date Of Termination | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Minimum required participant age and years of service | 65 years | ||
Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock exercise period, years | 10 years | ||
Vesting period | 3 years | ||
Minimum service period, years | 5 years | ||
Minimum required participant age with five years of service | 55 years |
Summary of Option Activity (Det
Summary of Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning Balance, Options | 17.2 | 17 | 17.5 |
Granted, Options | 2.1 | 2.2 | 2.3 |
Exercised, Options | (3) | (1.8) | (2.6) |
Cancelled, Options | (0.3) | (0.2) | (0.2) |
Ending Balance, Options | 16 | 17.2 | 17 |
Exercisable as of December 31, 2016, Options | 9.7 | ||
Beginning Balance, Weighted-Average Exercise Price | $ 25.89 | $ 22.75 | $ 19.74 |
Granted, Weighted-Average Exercise Price | 46.75 | 41.91 | 34.81 |
Exercised, Weighted-Average Exercise Price | 16.96 | 15.56 | 12.57 |
Cancelled, Weighted-Average Exercise Price | 39.60 | 30.95 | 28.16 |
Ending Balance, Weighted-Average Exercise Price | 30.06 | $ 25.89 | $ 22.75 |
Exercisable as of December 31, 2016, Weighted-Average Exercise Price | $ 22.91 | ||
Outstanding as of December 31, 2016, Weighted-Average Remaining Contractual Term, years | 5 years 9 months 18 days | ||
Exercisable as of December 31, 2016, Weighted-Average Remaining Contractual Term, years | 4 years 3 months 18 days | ||
Outstanding as of December 31, 2016, Aggregate Intrinsic Value | $ 233.5 | ||
Exercisable as of December 31, 2016, Aggregate Intrinsic Value | $ 207 |
Summary of Information Relating
Summary of Information Relating to Options Outstanding and Exercisable (Details) - $ / shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding as of 12/31/2016 | 16 | |||
Weighted Average Remaining Contractual Life | 5 years 9 months 18 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 30.06 | $ 25.89 | $ 22.75 | $ 19.74 |
Exercisable as of 12/31/2016 | 9.7 | |||
Options Exercisable Weighted-Average Exercise Price | $ 22.91 | |||
$10.01 - $15.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 10.01 | |||
Range of Exercise Prices, Upper Limit | $ 15 | |||
Outstanding as of 12/31/2016 | 2.2 | |||
Weighted Average Remaining Contractual Life | 1 year 9 months 18 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 13.58 | |||
Exercisable as of 12/31/2016 | 2.2 | |||
Options Exercisable Weighted-Average Exercise Price | $ 13.58 | |||
$15.01 - $20.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 15.01 | |||
Range of Exercise Prices, Upper Limit | $ 20 | |||
Outstanding as of 12/31/2016 | 1.2 | |||
Weighted Average Remaining Contractual Life | 3 years 4 months 24 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 16.68 | |||
Exercisable as of 12/31/2016 | 1.2 | |||
Options Exercisable Weighted-Average Exercise Price | $ 16.68 | |||
$20.01 - $25.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 20.01 | |||
Range of Exercise Prices, Upper Limit | $ 25 | |||
Outstanding as of 12/31/2016 | 1.4 | |||
Weighted Average Remaining Contractual Life | 4 years 3 months 18 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 20.32 | |||
Exercisable as of 12/31/2016 | 1.4 | |||
Options Exercisable Weighted-Average Exercise Price | $ 20.32 | |||
$25.01 - $30.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 25.01 | |||
Range of Exercise Prices, Upper Limit | $ 30 | |||
Outstanding as of 12/31/2016 | 2.3 | |||
Weighted Average Remaining Contractual Life | 5 years 2 months 12 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 26.91 | |||
Exercisable as of 12/31/2016 | 2.3 | |||
Options Exercisable Weighted-Average Exercise Price | $ 26.91 | |||
$30.01 - $35.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 30.01 | |||
Range of Exercise Prices, Upper Limit | $ 35 | |||
Outstanding as of 12/31/2016 | 4.8 | |||
Weighted Average Remaining Contractual Life | 6 years 4 months 24 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 32.65 | |||
Exercisable as of 12/31/2016 | 2.6 | |||
Options Exercisable Weighted-Average Exercise Price | $ 30.98 | |||
$40.01 - $45.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 40.01 | |||
Range of Exercise Prices, Upper Limit | $ 45 | |||
Outstanding as of 12/31/2016 | 2.8 | |||
Weighted Average Remaining Contractual Life | 8 years 4 months 24 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 41.88 | |||
Exercisable as of 12/31/2016 | 0 | |||
Options Exercisable Weighted-Average Exercise Price | $ 0 | |||
$45.01 - $50.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 45.01 | |||
Range of Exercise Prices, Upper Limit | $ 50 | |||
Outstanding as of 12/31/2016 | 1.3 | |||
Weighted Average Remaining Contractual Life | 9 years 4 months 24 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 49.36 | |||
Exercisable as of 12/31/2016 | 0 | |||
Options Exercisable Weighted-Average Exercise Price | $ 0 |
Schedule of Share Based Compens
Schedule of Share Based Compensation Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic Value of Stock Options Exercised | $ 91.5 | $ 49 | $ 58 |
Stock Compensation Expense Related to Stock Option Awards | $ 14.4 | $ 14.8 | $ 15.2 |
Issued Stock Options | 2.1 | 2.2 | 2.3 |
Weighted Average Fair Value of Stock Options issued (per share) | $ 7.57 | $ 6.85 | $ 6.41 |
Fair Value of Stock Options Issued | $ 16.1 | $ 15.3 | $ 15 |
Assumptions Used in Valuation o
Assumptions Used in Valuation of Issued Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.70% | 2.00% | 2.00% |
Expected life in years | 6 years 9 months 18 days | 6 years 3 months 18 days | 6 years 2 months 12 days |
Expected volatility | 17.00% | 17.20% | 20.40% |
Dividend yield | 1.50% | 1.60% | 1.80% |
Share Repurchases - Additional
Share Repurchases - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 02, 2016 | |
Accelerated Share Repurchases [Line Items] | ||||
Stock repurchase program, authorized amount | $ 500 | |||
Stock purchases, shares | 9 | |||
Payment for share repurchase | $ 400 | $ 363.1 | $ 478.8 | |
Evergreen Program | ||||
Accelerated Share Repurchases [Line Items] | ||||
Payment for share repurchase | 103 | |||
2015 Repurchase Program | ||||
Accelerated Share Repurchases [Line Items] | ||||
Payment for share repurchase | 97 | |||
Repurchase Program | ||||
Accelerated Share Repurchases [Line Items] | ||||
Payment for share repurchase | 200 | |||
Remaining amount for share repurchase program | $ 300 |
Components of Changes in Accumu
Components of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ (45.9) | $ (34.7) | $ 0.2 | |
Other comprehensive income before reclassifications | (20.2) | (23.2) | (37.6) | |
Amounts reclassified to consolidated statement of income | [1] | (0.1) | 2.2 | (0.6) |
Tax benefit (expense) | 2.4 | 9.8 | 3.3 | |
Other comprehensive (loss) income | (17.9) | (11.2) | (34.9) | |
Ending balance | (63.8) | (45.9) | (34.7) | |
Foreign Currency Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (38.5) | (16.4) | 12.7 | |
Other comprehensive income before reclassifications | (12.1) | (35.8) | (29.1) | |
Amounts reclassified to consolidated statement of income | [1] | 0 | 0 | 0 |
Tax benefit (expense) | 0.6 | 13.7 | 0 | |
Other comprehensive (loss) income | (11.5) | (22.1) | (29.1) | |
Ending balance | (50) | (38.5) | (16.4) | |
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (11.5) | (17.7) | (13) | |
Other comprehensive income before reclassifications | (2.2) | 3 | (7.7) | |
Amounts reclassified to consolidated statement of income | [1] | 0 | 5.2 | 0.8 |
Tax benefit (expense) | 0.5 | (2) | 2.2 | |
Other comprehensive (loss) income | (1.7) | 6.2 | (4.7) | |
Ending balance | (13.2) | (11.5) | (17.7) | |
Derivative Agreements | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 4.1 | (0.6) | 0.5 | |
Other comprehensive income before reclassifications | (5.9) | 9.6 | (0.8) | |
Amounts reclassified to consolidated statement of income | [1] | (0.1) | (3) | (1.4) |
Tax benefit (expense) | 1.3 | (1.9) | 1.1 | |
Other comprehensive (loss) income | (4.7) | 4.7 | (1.1) | |
Ending balance | $ (0.6) | $ 4.1 | $ (0.6) | |
[1] | Amounts reclassified to cost of sales and selling, general and administrative expenses |
Commitments, Contingencies an80
Commitments, Contingencies and Guarantees - Additional Information (Details) $ in Millions | Nov. 08, 2011USD ($) | Dec. 31, 2016USD ($)T | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Commitments And Contingencies Disclosure [Line Items] | ||||
Rent expense | $ 18.8 | $ 18.5 | $ 19.7 | |
Interest expense associated with financing lease | 4 | |||
Depreciation expense associated with financing lease | $ 2.5 | |||
Annual purchase commitment, in tons | T | 240,000 | |||
Commitments | $ 223.9 | |||
Outstanding guarantees and letters of credit | 21.2 | |||
Estimated minimum compensatory punitive damages | 20 | |||
Oral Care Technology | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Cash consideration to acquired a license for certain oral care technology | $ 4.3 | |||
Royalty guarantees commitments amount | 5.5 | |||
Potential license payment | $ 7 | $ 0 | ||
Advance royalty payments | $ 5.5 |
Future Minimum Rental Commitmen
Future Minimum Rental Commitments Under Non-Cancelable Long-Term Operating Leases And Capital Lease (Details) $ in Millions | Dec. 31, 2016USD ($) |
Operating lease | |
2,017 | $ 18.6 |
2,018 | 16.9 |
2,019 | 14.3 |
2,020 | 10.8 |
2,021 | 7.6 |
2022 and thereafter | 13.4 |
Total future minimum lease commitments | 81.6 |
Financing leases | |
2,017 | 5.7 |
2,018 | 6 |
2,019 | 6 |
2,020 | 6 |
2,021 | 6 |
2022 and thereafter | 67.3 |
Total future minimum lease commitments | 97 |
Total | |
2,017 | 24.3 |
2,018 | 22.9 |
2,019 | 20.3 |
2,020 | 16.8 |
2,021 | 13.6 |
2022 and thereafter | 80.7 |
Total future minimum lease commitments | $ 178.6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Armand Products Company | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% |
ArmaKleen Company | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% |
Natronx Technologies LLC | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest | 33.33% | 33.33% | 33.33% |
Impairment charge on investment | $ 17 |
Balance and Transactions Betwee
Balance and Transactions Between Company and Related Party (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Armand Products Company | ||||
Related Party Transaction [Line Items] | ||||
Purchases by Company | $ 20.9 | $ 24.2 | $ 26.4 | |
Sales by Company | 0 | 0 | 0 | |
Outstanding Accounts Receivable | 0.5 | 0.5 | 0.6 | |
Outstanding Accounts Payable | 1.7 | 1.8 | 2.1 | |
Administration & Management Oversight Services | [1] | 2.3 | 2.3 | 2.1 |
ArmaKleen Company | ||||
Related Party Transaction [Line Items] | ||||
Purchases by Company | 0 | 0 | 0 | |
Sales by Company | 1 | 1.3 | 1.2 | |
Outstanding Accounts Receivable | 0.7 | 0.6 | 0.8 | |
Outstanding Accounts Payable | 0 | 0 | 0 | |
Administration & Management Oversight Services | [1] | 2 | 2 | 2 |
Natronx Technologies LLC | ||||
Related Party Transaction [Line Items] | ||||
Purchases by Company | 0 | 0 | 0 | |
Sales by Company | 0.8 | 2.1 | 2 | |
Outstanding Accounts Receivable | 0 | 0.1 | 0.1 | |
Outstanding Accounts Payable | 0 | 0 | 0 | |
Administration & Management Oversight Services | [1] | $ 0.4 | $ 0.8 | $ 0.8 |
[1] | Billed by Company and recorded as a reduction of selling, general and administrative expenses. |
Segments - Additional Informati
Segments - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)SegmentCustomer | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | Segment | 3 | ||||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 |
Geographic Concentration Risk | Sales Revenue, Goods, Net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 5.00% | ||||||||||
Geographic Concentration Risk | Long Lived Assets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 5.00% | ||||||||||
Customer Concentration Risk | Sales Revenue, Goods, Net | Major Customers Group | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 35.00% | 35.00% | 36.00% | ||||||||
Number of major customers | Customer | 3 | 3 | 3 | ||||||||
Customer Concentration Risk | Sales Revenue, Goods, Net | Wal-Mart Stores Inc And Affiliates | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 24.00% | 24.00% | 25.00% | ||||||||
Customer name | Wal-Mart Stores, Inc. and its affiliates | ||||||||||
UNITED STATES | Geographic Concentration Risk | Sales Revenue, Goods, Net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 84.00% | 83.00% | 81.00% | ||||||||
UNITED STATES | Geographic Concentration Risk | Long Lived Assets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 98.00% | 96.00% | 96.00% | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 3.4 | $ 5.3 | $ 1.9 | ||||||||
Armand Products Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
ArmaKleen Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of ownership interest | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||||
Natronx Technologies LLC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of ownership interest | 33.33% | 33.33% | 33.33% | 33.33% | 33.33% |
Selected Financial Information
Selected Financial Information Relating To Company's Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 | |
Gross profit | 408 | 395.6 | 408 | 379 | 397.4 | 385.8 | 373.1 | 355.5 | 1,590.6 | 1,511.8 | 1,452.9 | |
Marketing Expenses | 427.2 | 417.5 | 416.9 | |||||||||
Selling, General and Administrative Expenses | 439.2 | 420.1 | 394.8 | |||||||||
Income from Operations | 173.4 | $ 196 | $ 175.3 | $ 179.5 | 169.2 | $ 190.6 | $ 142.3 | $ 172.1 | 724.2 | 674.2 | 641.2 | |
Equity in Earnings (Losses) of Affiliates | 9.2 | (5.8) | 11.6 | |||||||||
Income Before Income Taxes | 705.9 | 635.4 | 624.9 | |||||||||
Identifiable Assets | 4,354.1 | 4,256.9 | 4,354.1 | 4,256.9 | 4,359.2 | |||||||
Capital Expenditures | 49.8 | 61.8 | 70.5 | |||||||||
Depreciation & Amortization | 107.6 | 101 | 91.2 | |||||||||
Operating Segments | Consumer Domestic | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 2,677.8 | 2,581.6 | 2,471.6 | |||||||||
Gross profit | 1,308.8 | 1,215.7 | 1,160.9 | |||||||||
Marketing Expenses | 345.2 | 336.5 | 333.2 | |||||||||
Selling, General and Administrative Expenses | 350.7 | 326.2 | 302 | |||||||||
Income from Operations | 612.9 | 553 | 525.7 | |||||||||
Equity in Earnings (Losses) of Affiliates | 0 | 0 | 0 | |||||||||
Income Before Income Taxes | 590.6 | 529.4 | 502.8 | |||||||||
Identifiable Assets | 3,374.4 | 3,449.9 | 3,374.4 | 3,449.9 | 3,502.9 | |||||||
Capital Expenditures | 34.9 | 51.5 | 59.2 | |||||||||
Depreciation & Amortization | 87.8 | 82.6 | 76.7 | |||||||||
Operating Segments | Consumer International | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 525.2 | 501 | 535.2 | |||||||||
Gross profit | 235.4 | 226.8 | 242.1 | |||||||||
Marketing Expenses | 78.2 | 76.6 | 80.5 | |||||||||
Selling, General and Administrative Expenses | 89 | 93.3 | 93.9 | |||||||||
Income from Operations | 68.2 | 56.9 | 67.6 | |||||||||
Equity in Earnings (Losses) of Affiliates | 0 | 0 | 0 | |||||||||
Income Before Income Taxes | 66.3 | 54.5 | 64.7 | |||||||||
Identifiable Assets | 714.5 | 521 | 714.5 | 521 | 619.8 | |||||||
Capital Expenditures | 8.8 | 7.2 | 8.4 | |||||||||
Depreciation & Amortization | 9.5 | 7.9 | 7.6 | |||||||||
Operating Segments | Specialty Products | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 290.1 | 312.2 | 290.8 | |||||||||
Gross profit | 83 | 101.9 | 76.6 | |||||||||
Marketing Expenses | 3.8 | 4.4 | 3.2 | |||||||||
Selling, General and Administrative Expenses | 36.1 | 33.2 | 25.6 | |||||||||
Income from Operations | 43.1 | 64.3 | 47.9 | |||||||||
Equity in Earnings (Losses) of Affiliates | 0 | 0 | 0 | |||||||||
Income Before Income Taxes | 39.8 | 57.3 | 45.8 | |||||||||
Identifiable Assets | 181.3 | 206.5 | 181.3 | 206.5 | 135.1 | |||||||
Capital Expenditures | 6.1 | 3.1 | 2.9 | |||||||||
Depreciation & Amortization | 8.6 | 8.5 | 5.2 | |||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | [1] | 0 | 0 | 0 | ||||||||
Gross profit | [1] | (36.6) | (32.6) | (26.7) | ||||||||
Marketing Expenses | [1] | 0 | 0 | 0 | ||||||||
Selling, General and Administrative Expenses | [1] | (36.6) | (32.6) | (26.7) | ||||||||
Income from Operations | [1] | 0 | 0 | 0 | ||||||||
Equity in Earnings (Losses) of Affiliates | [1] | 9.2 | (5.8) | 11.6 | ||||||||
Income Before Income Taxes | [1] | 9.2 | (5.8) | 11.6 | ||||||||
Identifiable Assets | [1] | $ 83.9 | $ 79.5 | 83.9 | 79.5 | 101.4 | ||||||
Capital Expenditures | [1] | 0 | 0 | 0 | ||||||||
Depreciation & Amortization | [1] | $ 1.7 | $ 2 | $ 1.7 | ||||||||
[1] | The Corporate segment reflects the following: (A) The administrative costs of the production planning and logistics functions are included in segment Selling, General and Administrative expenses but are elements of Cost of Sales in the Company’s Consolidated Statements of Income. Such amounts were $36.6, $32.6, and $26.7 for 2016, 2015 and 2014, respectively. (B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2016 and Armand, ArmaKleen and Natronx for the years ended December 31, 2015 and 2014. (C) Corporate assets include notes receivable, domestic deferred income taxes, deferred compensation investments and the Company's investment in unconsolidated affiliates. |
Selected Financial Informatio86
Selected Financial Information Relating To Company's Segments (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expenses | $ 439.2 | $ 420.1 | $ 394.8 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expenses | [1] | (36.6) | (32.6) | (26.7) |
Corporate | Cost of Sales | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expenses | $ 36.6 | $ 32.6 | $ 26.7 | |
[1] | The Corporate segment reflects the following: (A) The administrative costs of the production planning and logistics functions are included in segment Selling, General and Administrative expenses but are elements of Cost of Sales in the Company’s Consolidated Statements of Income. Such amounts were $36.6, $32.6, and $26.7 for 2016, 2015 and 2014, respectively. (B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2016 and Armand, ArmaKleen and Natronx for the years ended December 31, 2015 and 2014. (C) Corporate assets include notes receivable, domestic deferred income taxes, deferred compensation investments and the Company's investment in unconsolidated affiliates. |
Product Line Revenues from Exte
Product Line Revenues from External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 |
Operating Segments | Consumer Domestic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,677.8 | 2,581.6 | 2,471.6 | ||||||||
Operating Segments | Consumer Domestic | Household Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,593.4 | 1,544.3 | 1,466.2 | ||||||||
Operating Segments | Consumer Domestic | Personal Care Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,084.4 | 1,037.3 | 1,005.4 | ||||||||
Operating Segments | Consumer International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 525.2 | 501 | 535.2 | ||||||||
Operating Segments | Specialty Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 290.1 | $ 312.2 | $ 290.8 |
Brazil's Chemical Business - Ad
Brazil's Chemical Business - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Asset impairment charge and other asset write-offs | $ 5.6 | $ 19.2 | $ 6.4 | |||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | 3,493.1 | $ 3,394.8 | $ 3,297.6 | |
Brazilian Chemical | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Asset impairment charge and other asset write-offs | $ 4.9 | |||||||||||
Net Sales | $ 22 | |||||||||||
Subsequent Event | Brazilian Chemical | ||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Severance and other charges | $ 5 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ in Millions | Jan. 17, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 | |
VIVISCAL | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Net Sales | $ 44 | |||||||||||
Subsequent Event | VIVISCAL | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Date of business acquisition | Jan. 17, 2017 | |||||||||||
Purchase price | $ 160 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Net Sales | $ 896 | $ 870.7 | $ 877.4 | $ 849 | $ 873.6 | $ 861.8 | $ 847.1 | $ 812.3 | $ 3,493.1 | $ 3,394.8 | $ 3,297.6 | |||||
Gross profit | 408 | 395.6 | 408 | 379 | 397.4 | 385.8 | 373.1 | 355.5 | 1,590.6 | 1,511.8 | 1,452.9 | |||||
Income from Operations | 173.4 | 196 | 175.3 | 179.5 | 169.2 | 190.6 | 142.3 | 172.1 | 724.2 | 674.2 | $ 641.2 | |||||
Net Income | $ 110.4 | $ 124 | $ 111.6 | $ 113 | $ 109.1 | [1] | $ 120.4 | [1] | $ 73.7 | [1] | $ 107.2 | [1] | $ 459 | $ 410.4 | [1] | |
Net Income per share - Basic, Reported | $ 0.43 | $ 0.48 | $ 0.43 | $ 0.44 | $ 0.42 | [1],[2] | $ 0.46 | [1],[2] | $ 0.28 | [1],[2] | $ 0.41 | [1],[2] | $ 1.78 | $ 1.57 | [1],[2] | $ 1.53 |
Net Income per share - Diluted, Reported | $ 0.42 | $ 0.47 | $ 0.43 | $ 0.43 | $ 0.41 | [1],[2] | $ 0.45 | [1],[2] | $ 0.28 | [1],[2] | $ 0.40 | [1],[2] | $ 1.75 | $ 1.54 | [1],[2] | $ 1.51 |
[1] | The second quarter of 2015 Net Income includes a $17.0 or $0.06 per share impairment charge to write-off the remaining investment in Natronx. | |||||||||||||||
[2] | The second quarter of 2015 Income from Operations includes an $8.9 pre-tax charge or $0.03 per share to terminate an international defined benefit pension plan. |
Schedule of Quarterly Financi91
Schedule of Quarterly Financial Information (Parenthetical) (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Jun. 30, 2015USD ($)$ / shares | |
Natronx Technologies L L C | |
Schedule Of Quarterly Financial Information [Line Items] | |
Impairment charges per share | $ / shares | $ 0.06 |
Impairment charge on investment | $ | $ 17 |
Foreign Pension Plan | Consumer International | |
Schedule Of Quarterly Financial Information [Line Items] | |
Pension charges per share | $ / shares | $ 0.03 |
Settlement loss | $ | $ 8.9 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 1 | $ 1.9 | $ 0.8 |
Additions, Charged to Expenses | 1.3 | 0.3 | 1.5 |
Additions, Acquired | 0 | 0 | 0 |
Deductions, Amounts Written Off | (0.3) | (1) | (0.2) |
Foreign Exchange | 0.1 | (0.2) | (0.2) |
Ending Balance | 2.1 | 1 | 1.9 |
Allowance for Cash Discounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 4.6 | 5.2 | 5.1 |
Additions, Charged to Expenses | 69.8 | 68.6 | 66.9 |
Additions, Acquired | 0 | 0 | 0 |
Deductions, Amounts Written Off | (69.8) | (69.2) | (67) |
Foreign Exchange | 0 | 0 | 0.2 |
Ending Balance | 4.6 | 4.6 | 5.2 |
Sales Returns and Allowances | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 11.9 | 11.9 | 11.6 |
Additions, Charged to Expenses | 56.7 | 67.4 | 58.6 |
Additions, Acquired | 0 | 0 | 0 |
Deductions, Amounts Written Off | (56.8) | (67.4) | (58.1) |
Foreign Exchange | 0.3 | 0 | (0.2) |
Ending Balance | $ 12.1 | $ 11.9 | $ 11.9 |