Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 245,901,066 | ||
Entity Public Float | $ 12.5 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net Sales | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 |
Cost of sales | 2,305.1 | 2,046.6 | 1,902.5 |
Gross Profit | 1,840.8 | 1,729.6 | 1,590.6 |
Marketing expenses | 483.2 | 454.2 | 427.2 |
Selling, general and administrative expenses | 565.9 | 542.7 | 439.2 |
Income from Operations | 791.7 | 732.7 | 724.2 |
Equity in earnings of affiliates | 9.2 | 10.8 | 9.2 |
Investment earnings | 1.9 | 2.1 | 1.7 |
Other income (expense), net | (3.9) | (0.3) | (1.5) |
Interest expense | (79.4) | (52.6) | (27.7) |
Income before Income Taxes | 719.5 | 692.7 | 705.9 |
Income taxes | 150.9 | (50.7) | 246.9 |
Net Income | $ 568.6 | $ 743.4 | $ 459 |
Weighted average shares outstanding - Basic | 245.5 | 250.6 | 257.6 |
Weighted average shares outstanding - Diluted | 250.7 | 256.1 | 262.1 |
Net income per share - Basic | $ 2.32 | $ 2.97 | $ 1.78 |
Net income per share - Diluted | 2.27 | 2.90 | 1.75 |
Cash dividends per share | $ 0.87 | $ 0.76 | $ 0.71 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 568.6 | $ 743.4 | $ 459 |
Other comprehensive income, net of tax: | |||
Foreign exchange translation adjustments | (10.6) | 18.4 | (11.5) |
Defined benefit plan adjustments gain (loss) | 1.4 | 12.6 | (1.7) |
Income (loss) from derivative agreements | (7.4) | (3.6) | (4.7) |
Other comprehensive (loss) income | (16.6) | 27.4 | (17.9) |
Comprehensive income | $ 552 | $ 770.8 | $ 441.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 316.7 | $ 278.9 |
Accounts receivable, less allowances of $3.1 and $2.9 | 345.3 | 345.9 |
Inventories | 382.8 | 330.7 |
Other current assets | 33.4 | 44.7 |
Total Current Assets | 1,078.2 | 1,000.2 |
Property, Plant and Equipment, Net | 598.2 | 607.7 |
Equity Investment in Affiliates | 8.5 | 9.3 |
Trade Names and Other Intangibles, Net | 2,274 | 2,320.5 |
Goodwill | 1,992.9 | 1,958.9 |
Other Assets | 117.4 | 118.2 |
Total Assets | 6,069.2 | 6,014.8 |
Current Liabilities | ||
Short-term borrowings | 1.8 | 270.9 |
Current portion of long-term debt | 596.5 | 0 |
Accounts payable and accrued expenses | 725.1 | 659.1 |
Income taxes payable | 2.9 | 5 |
Total Current Liabilities | 1,326.3 | 935 |
Long-term Debt | 1,508.8 | 2,103.4 |
Deferred Income Taxes | 576.4 | 561.2 |
Deferred and Other Long-term Liabilities | 203.9 | 197.2 |
Total Liabilities | 3,615.4 | 3,796.8 |
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 600,000,000 shares; 292,855,100 shares issued as of December 31, 2018 and 2017 | 292.8 | 292.8 |
Additional paid-in capital | 280.8 | 264.6 |
Retained earnings | 3,832.6 | 3,479 |
Accumulated other comprehensive loss | (53.6) | (36.4) |
Common stock in treasury, at cost: 45,969,515 shares as of December 31, 2018 and 45,225,202 shares as of December 31, 2017 | (1,898.8) | (1,782) |
Total Stockholders' Equity | 2,453.8 | 2,218 |
Total Liabilities and Stockholders’ Equity | $ 6,069.2 | $ 6,014.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 3.1 | $ 2.9 |
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 | 600,000,000 | 600,000,000 |
Common Stock, shares issued | 292,855,100 | 292,855,100 |
Common stock in treasury, shares | 45,969,515 | 45,225,202 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flow From Operating Activities | |||
Net Income | $ 568.6 | $ 743.4 | $ 459 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 64.4 | 60.9 | 59.7 |
Amortization expense | 76.7 | 64.5 | 47.9 |
Deferred income taxes | 11.1 | (237.6) | 24.9 |
Equity in net earnings of affiliates | (9.2) | (10.8) | (9.2) |
Distributions from unconsolidated affiliates | 10.1 | 10.1 | 9 |
Non-cash compensation expense | 23.3 | 18.1 | 16 |
Non-cash pension settlement charge | 0 | 31.7 | 0 |
Asset impairment charge and other asset write-offs | 3.6 | 2.1 | 5.6 |
Other | 1 | (1.7) | (1.8) |
Change in assets and liabilities: | |||
Accounts receivable | (3.4) | (9.7) | (12.7) |
Inventories | (55.1) | (25.2) | 19.2 |
Other current assets | 18.9 | 10.2 | 2.1 |
Accounts payable and accrued expenses | 54.9 | 30.3 | 50.5 |
Income taxes payable | (6.1) | (11.2) | 32.8 |
Excess tax benefit on stock options exercised | 0 | 0 | (30) |
Other operating assets and liabilities, net | 4.8 | 6.4 | (17.7) |
Net Cash Provided By Operating Activities | 763.6 | 681.5 | 655.3 |
Cash Flow From Investing Activities | |||
Additions to property, plant and equipment | (60.4) | (45) | (49.8) |
Acquisitions | (49.8) | (1,260) | (305.3) |
Other | (1.9) | 1.6 | 0.5 |
Net Cash Used In Investing Activities | (112.1) | (1,303.4) | (354.6) |
Cash Flow From Financing Activities | |||
Long-term debt borrowings | 0 | 1,621.3 | 0 |
Long-term debt (repayments) | 0 | (200) | 0 |
Short-term debt (repayments), net of borrowings | (268.8) | (155.8) | 68.9 |
Proceeds from stock options exercised | 76.6 | 42.1 | 50.5 |
Excess tax benefit on stock options exercised | 0 | 0 | 30 |
Payment of cash dividends | (213.3) | (190.4) | (183) |
Purchase of treasury stock | (200) | (400) | (400) |
Deferred financing and other | (3.5) | (18.3) | (6) |
Net Cash (Used In) Provided By Financing Activities | (609) | 698.9 | (439.6) |
Effect of exchange rate changes on cash and cash equivalents | (4.7) | 14.1 | (3.3) |
Net Change In Cash and Cash Equivalents | 37.8 | 91.1 | (142.2) |
Cash and Cash Equivalents at Beginning of Period | 278.9 | 187.8 | 330 |
Cash and Cash Equivalents at End of Period | 316.7 | 278.9 | 187.8 |
Cash paid during the year for: | |||
Interest (net of amounts capitalized) | 74.9 | 33.3 | 25.6 |
Income taxes | 116.8 | 198.1 | 188.4 |
Supplemental disclosure of non-cash investing activities: | |||
Property, plant and equipment expenditures included in Accounts Payable | $ 6.9 | $ 7.7 | $ 3.4 |
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) |
Beginning Balance at Dec. 31, 2015 | $ 2,023.2 | $ 292.8 | $ (1,103.7) | $ 230 | $ 2,650 | $ (45.9) |
Beginning Balance (in shares) at Dec. 31, 2015 | 292.8 | (32.8) | ||||
Net Income | 459 | $ 0 | $ 0 | 0 | 459 | 0 |
Other comprehensive (loss) income | (17.9) | 0 | 0 | 0 | 0 | (17.9) |
Cash dividends | (183) | 0 | 0 | 0 | (183) | 0 |
Stock purchases | (400) | $ 0 | $ (400) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (9) | ||||
Stock based compensation expense and stock option plan transactions | 96.6 | $ 0 | $ 75.2 | 21.4 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (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) |
Ending Balance (in shares) at Dec. 31, 2016 | 292.8 | (38.9) | ||||
Net Income | 743.4 | $ 0 | $ 0 | 0 | 743.4 | 0 |
Other comprehensive (loss) income | 27.4 | 0 | 0 | 0 | 0 | 27.4 |
Cash dividends | (190.4) | 0 | 0 | 0 | (190.4) | 0 |
Stock purchases | (400) | $ 0 | $ (400) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (8.2) | ||||
Stock based compensation expense and stock option plan transactions | 59.7 | $ 0 | $ 46.5 | 13.2 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 1.9 | ||||
Ending Balance at Dec. 31, 2017 | 2,218 | $ 292.8 | $ (1,782) | 264.6 | 3,479 | (36.4) |
Ending Balance (in shares) at Dec. 31, 2017 | 292.8 | (45.2) | ||||
Adoption of new accounting pronouncements (Note 1) | (2.3) | $ 0 | $ 0 | 0 | (1.7) | (0.6) |
Net Income | 568.6 | 0 | 0 | 0 | 568.6 | 0 |
Other comprehensive (loss) income | (16.6) | 0 | 0 | 0 | 0 | (16.6) |
Cash dividends | (213.3) | 0 | 0 | 0 | (213.3) | 0 |
Stock purchases | (200) | $ 0 | $ (200) | 0 | 0 | 0 |
Stock purchases (in shares) | 0 | (4.1) | ||||
Stock based compensation expense and stock option plan transactions | 99.4 | $ 0 | $ 83.2 | 16.2 | 0 | 0 |
Stock based compensation expense and stock option plan transactions (in shares) | 0 | 3.3 | ||||
Ending Balance at Dec. 31, 2018 | $ 2,453.8 | $ 292.8 | $ (1,898.8) | $ 280.8 | $ 3,832.6 | $ (53.6) |
Ending Balance (in shares) at Dec. 31, 2018 | 292.8 | (46) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Business The Company, founded in 1846, develops, manufactures and markets a broad range of household, personal care and specialty products focused on animal productivity, chemicals and cleaners. 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 and other e-commerce channels, all of which sell the products to consumers. The Company also sells specialty products to industrial customers, livestock producers and through 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. Armand and ArmaKleen are specialty chemical businesses. The Company’s equity in earnings of Armand and ArmaKleen are included in the Corporate segment, as described in Note 16. In March 2016, the Financial Accounting Standards Board (“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 Company prospectively adopted the standard in the first quarter of 2017. The adoption resulted in excess tax benefits of $22.1 and $15.1 or approximately $0.08 and $0.05 per share recorded in the provision for income taxes rather than in the Company’s Stockholders’ Equity section of the Balance Sheet for the years ended December 31, 2018 and 2017, respectively. It also resulted in an increase to both net cash provided by operating activities and net cash provided by financing activities of $22.1 and $15.1 for the twelve months ended December 31, 2018 and 2017, respectively. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share, which did not have a material impact on the Company’s diluted earnings per share for the three and twelve months ended December 31, 2018 and 2017. 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. 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 Revenue is recognized when control of a promised good is transferred to a customer in an amount that reflects the consideration that the Company expects to be entitled to in exchange for that good. This usually occurs 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. Adoption of the new revenue recognition pronouncement as discussed below did not have a significant impact on the Company’s consolidated financial statements. The adoption required the Company to recognize certain costs earlier, primarily due to the timing of coupon expense recognition, which was not material. Refer to the table below on page 58 for a presentation of the impacts of adoption of the guidance on the Company’s January 1, 2018 balance sheet. a. Nature of Goods and Services The Company primarily ships finished goods to its customers and operates in three segments: Consumer Domestic, Consumer International and Specialty Products Division (“SPD”). The segments are based on differences in the nature of products and organizational and ownership structures. The Consumer Domestic and Consumer International segments market a variety of personal care and household products and over-the-counter products, including but not limited to baking soda, cat litter, laundry detergent, condoms, stain removers, hair removal, gummy dietary supplements, dry shampoo, water flossers and showerheads. The SPD segment focuses on sales to businesses and participates in three product areas: Animal Productivity, Specialty Chemicals and Specialty Cleaners. The Company’s products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation. The Company sells 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 and other e-commerce channels, all of which sell our products to consumers. The Company sells its specialty products to industrial customers, livestock producers and through distributors. Refer to Note 16 for disaggregated revenue information with respect to each of our segments. b. When Performance Obligations are Satisfied For performance obligations related to the shipping and invoicing of products, control transfers at the point in time upon which finished goods are delivered to the Company’s customers or when finished goods are picked up by a customer or a customer’s carrier. Once a product has been delivered or picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset. The Company considers control to have transferred upon delivery or customer receipt because the Company has an enforceable right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risk and rewards of ownership of the asset. c. Variable Consideration 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 and are recorded when the related sale takes place. 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 inputs 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. d. Practical Expedients The Company expenses incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place. These costs are recorded in SG&A expenses in the accompanying consolidated statements of income. The Company accounts for shipping and handling costs as fulfillment activities which are therefore recognized upon shipment of the goods. The Company has applied the portfolio approach to all open contracts as they have similar characteristics and can reasonably expect that the effects on the financial statements of applying this new guidance to the portfolio of contracts would not differ materially from applying this guidance to the individual contracts within the portfolio. The Company excludes from its revenue any amounts collected from customers for sales (and similar) taxes. 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 $7.5 in 2018, resulting in a total of $112.9 and $105.4 as of December 31, 2018 and 2017, 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 (net realizable value, which reflects any costs to sell or dispose). 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 $17.0 at December 31, 2018, and $12.8 at December 31, 2017. On April 1, 2018, the Company changed its method of accounting for inventories from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”) for the approximately 17% of consolidated inventory not previously valued using FIFO. Substantially all of the Company’s SPD segment inventory, as well as domestic inventory sold primarily under the ARM & HAMMER trademark in the Consumer Domestic segment, was previously determined using LIFO. After this change, the value of all of the Company’s inventory was determined by the FIFO method. The Company believes this change is preferable as the predominant method to value inventory has been FIFO, which will provide a uniform costing method across all inventory. Prior financial statements have not been retroactively adjusted due to immateriality. The cumulative effect of the change in accounting principle of approximately $4.0 pre-tax was recorded as a decrease to cost of goods sold for the quarter ending June 30, 2018 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 and indefinite-lived tradenames 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 2019 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 $89.7, $70.8 and $63.2 in 2018, 2017 and 2016, 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: 2018 2017 2016 Weighted average common shares outstanding - basic 245.5 250.6 257.6 Dilutive effect of stock options 5.2 5.5 4.5 Weighted average common shares outstanding - diluted 250.7 256.1 262.1 Antidilutive stock options outstanding 1.9 3.2 1.4 Employee and Director Stock 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, 2018 2017 2016 Cost of sales $ 2.6 $ 1.8 $ 1.9 Selling, general and administrative expenses 22.3 16.3 14.1 Total $ 24.9 $ 18.1 $ 16.0 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. Recently Adopted Accounting Pronouncements In August 2018, the FASB issued new accounting guidance requiring a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company has adopted this new standard during the third quarter of 2018 and elected to use the prospective approach. In February 2018, the FASB issued new accounting guidance which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) and requires certain disclosures regarding stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company adopted this change using the modified retrospective approach by adjusting certain December 31, 2017 stockholders’ equity accounts (see below). In 2016, the FASB issued 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 new standard was adopted by the Company using the modified retrospective approach in the first quarter of 2018. See page 54 for the Company’s revenue recognition accounting policy. The effects of the recently adopted accounting pronouncements to the Company’s consolidated balance sheet as of January 1, 2018 is as follows: Balance at New Revenue New Tax Balance at December 31, Standard Reform January 1, 2017 Adjustment Adjustment 2018 Accounts payable and accrued expenses $ 659.1 $ 3.0 $ 0.0 $ 662.1 Income taxes payable 5.0 (0.7 ) 0.0 4.3 Retained earnings 3,479.0 (2.3 ) 0.6 3,477.3 Accumulated other comprehensive loss (36.4 ) 0.0 (0.6 ) (37.0 ) The adoption had no impact on the Company’s results of operations or cash flow. Recent Accounting Pronouncements Not Yet Adopted In August 2017 and October 2018, the FASB issued new accounting guidance, which is intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. These amendments also make targeted improvements to simplify the application of the hedge accounting. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The standard is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In February 2016 and July 2018, 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 allows companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption. The Company adopted the new standard on January 1, 2019 on a modified retrospective basis and will elect the package of practical expedients permitted under the transition guidance, which eliminates the reassessment of past leases, classification, and initial direct costs. The Company has implemented the appropriate internal controls and tools to monitor and record historical and future lease arrangements and required disclosures. For all existing operating leases as of December 31, 2018, the Company anticipates recording Right of Use Assets of approximately $55 and corresponding lease liabilities of approximately $57 with an offset to Deferred and Other Long-term Liabilities of approximately $2 to eliminate deferred rent on the consolidated balance sheet. In addition, based on the transition guidance surrounding failed sale-and-leaseback transactions, the Company re-evaluated its Corporate Headquarters lease. This lease was previously considered a failed sale-and-leaseback transaction under ASC 840 because of continuing involvement. The re-evaluation resulted in a change in classification from a finance transaction to an operating lease. The Corporate Headquarters building, which has a book value of approximately $35 recorded in Property, Plant and Equipment as of December 31, 2018, was derecognized on January 1, 2019 and a Right of Use Asset of approximately $52 will be recorded with an offset to Deferred Income Taxes of $4 and Retained Earnings of $13. The Lease Liability pertaining to this asset of $52 remains unchanged. In total, at the adoption of the new accounting guidance there will be a Right of Use Asset of approximately $107 and a corresponding Lease Liability of $109. 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, 2018 | |
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, 2018 and December 31, 2017: December 31, 2018 December 31, 2017 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 234.6 $ 234.6 $ 95.8 $ 95.8 Financial Liabilities: Short-term borrowings Level 2 1.8 1.8 270.9 270.9 Floating Rate Senior notes due January 25, 2019 Level 2 300.0 299.9 300.0 299.9 2.45% Senior notes due December 15, 2019 Level 2 300.0 297.4 299.9 300.9 2.45% Senior notes due August 1, 2022 Level 2 299.7 289.7 299.7 296.1 2.875% Senior notes due October 1, 2022 Level 2 399.9 393.0 399.8 400.2 3.15% Senior notes due August 1, 2027 Level 2 424.6 400.0 424.6 417.8 3.95% Senior notes due August 1, 2047 Level 2 397.2 363.7 397.1 397.4 Contingent Consideration Level 3 23.0 23.0 23.2 23.2 Fair value adjustment (liability) asset related to hedged fixed rate debt instrument Level 2 (3.0 ) (3.0 ) (2.2 ) (2.2 ) Interest Rate Swap Lock Agreement Level 2 (7.0 ) (7.0 ) 0.0 0.0 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, 2018. 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 Current Assets or Accounts Payable and Accrued Expenses, with an offsetting amount recorded in the Current portion of long-term debt to adjust the carrying amount of the hedged debt obligation. Interest Rate Swap Lock Agreement: The Company entered into interest rate swap lock agreements to hedge the risk of changes in the interest payments attributable to changes in the benchmark LIBOR interest rate associated with anticipated issuances of debt . The notional amount of the interest rate swap lock agreements is $250.0. These interest rate swap lock 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 lock agreements is reflected in the Consolidated Balance Sheet within Deferred and Other Long-term Liabilities. Other : The carrying amounts of accounts receivable, and accounts payable and accrued expenses, approximated estimated fair values as of December 31, 2018 and 2017. |
Derivative Instruments and Risk
Derivative Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
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 and commodity 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 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 2018 and 2017, 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 2018 and 2017, 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 64% of the Company’s 2018 diesel fuel requirements and are expected to cover approximately 79% and 50% of the Company’s estimated diesel fuel requirements for 2019 and 2020, respectively. 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 Consolidated 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, and U.S. Dollar/Australian Dollar. 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, Euro, Mexican Peso, and Australian Dollar. 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, 2018 totaled $146.6 in U.S. Dollars, of which 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 Current Assets or Accounts Payable and Accrued Expenses, with an offsetting amount recorded in the Current portion of long-term debt to adjust the carrying amount of the hedged debt obligation. Interest Rate Swap Lock Agreement The Company entered into interest rate swap lock agreements to hedge the risk of changes in the interest payments attributable to changes in the benchmark LIBOR interest rate associated with anticipated issuances of debt The notional amount of the interest rate swap locks is $250.0. Commodity Hedges The Company is subject to exposure due to changes in prices of commodities used in production. To limit the effects of fluctuations in the future market price paid and related volatility in cash flows, the Company enters into Over-the-Counter commodity forward swap contracts. These agreements cover approximately 60% of the Company’s 2018 and 2019 exposure. These hedges are designated as cash flow hedges for accounting purposes and, therefore, changes in the fair value of the contracts are recorded in Accumulated Other Comprehensive Income (Loss) and reclassified to earnings when the hedged transaction affected earnings. The fair value of these commodity hedge agreements is reflected in the Consolidated Balance Sheet within Other Current Assets and Accounts Payable and Accrued Expenses. 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, 2018 December 31, 2017 Derivatives designated as hedging instruments Foreign exchange contracts $ 146.6 $ 91.6 Interest rate swap $ 300.0 $ 300.0 Interest rate swap lock $ 250.0 $ 0.0 Diesel fuel contracts 8.2 gallons 3.0 gallons Commodities contracts 94.7 pounds 28.3 pounds Derivatives not designated as hedging instruments Equity derivatives $ 21.0 $ 22.2 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, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following: December 31, December 31, 2018 2017 Raw materials and supplies $ 84.4 $ 85.6 Work in process 34.1 30.8 Finished goods 264.3 214.3 Total $ 382.8 $ 330.7 On April 1, 2018, the Company changed its method of accounting for inventories from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”) for the approximately 17% of consolidated inventory not previously valued using FIFO. Substantially all of the Company’s Specialty Products Division segment inventory as well as domestic inventory sold primarily under the ARM & HAMMER trademark in the Consumer Domestic segment was previously determined using LIFO. After this change, the value of all of the Company’s inventory was determined by the FIFO method. The Company believes this change is preferable as the predominant method to value inventory has been FIFO, which will provide a uniform costing method across all inventory. Prior financial statements have not been retroactively adjusted due to immateriality. The cumulative effect of the change in accounting principle of approximately $4.0 pre-tax was recorded as a decrease to cost of goods sold for the quarter ending June 30, 2018 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net ("PP&E") | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Land $ 27.8 $ 27.9 Buildings and improvements 301.3 300.3 Machinery and equipment 716.7 699.3 Software 97.9 95.8 Office equipment and other assets 73.8 66.7 Construction in progress 49.7 36.4 Gross PP&E 1,267.2 1,226.4 Less accumulated depreciation and amortization 669.0 618.7 Net PP&E $ 598.2 $ 607.7 For the Year Ended December 31, 2018 2017 2016 Depreciation and amortization on PP&E $ 64.4 $ 60.9 $ 59.7 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions On March 8, 2018, the Company purchased Passport Food Safety Solutions, Inc. (“Passport”). Passport sells products for pre- and post-harvest treatment in the poultry, swine, and beef production markets (the “Passport Acquisition”). The total purchase price was approximately $50.0, which is subject to an additional payment of up to $25.0 based on sales performance through 2020. Passport’s annual sales were approximately $21.0 in 2017. The Passport Acquisition was funded with The fair values of the net assets acquired are set forth as follows: 2018 Passport Inventory and other working capital $ 3.3 Long-term assets 1.0 Trade names and other intangibles 28.5 Goodwill 32.5 Current liabilities (1.1 ) Long-term liabilities (7.1 ) Contingent consideration (7.3 ) Cash purchase price (net of cash acquired) $ 49.8 The life of the amortizable intangible assets recognized from the Passport Acquisition ranges from 10 - 15 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 August 7, 2017, the Company acquired Pik Holdings, Inc. (“Waterpik”), a water-jet technology company that designs and sells both oral water flossers and replacement showerheads (the “Waterpik Acquisition”). The total purchase price was $1,024.6 (net of cash acquired). Waterpik’s annual sales were approximately $265.0 for the trailing twelve months through June 30, 2017. The Company financed the Waterpik Acquisition with proceeds from its underwritten public offering of $1,425.0 aggregate principal amount of Senior Notes (as defined in Note 9) completed on July 25, 2017. Subsequent to the Waterpik Acquisition, Waterpik is managed by the Consumer Domestic and Consumer International segments. The fair values of the net assets acquired are set forth as follows: 2017 Waterpik Current assets $ 95.4 Property, plant and equipment 28.4 Trade name (indefinite lived) 644.7 Other intangible assets 146.1 Goodwill 425.8 Current liabilities (31.8 ) Long-term liabilities (284.0 ) Cash purchase price (net of cash acquired) $ 1,024.6 The life of the amortizable intangible assets recognized from the Waterpik Acquisition will be amortized over The following unaudited pro forma information is based on the Company’s historical data and assumptions for consolidated results of operations, and gives effect to the Waterpik Acquisition as if the acquisition occurred on January 1, 2016. These unaudited pro forma results include adjustments having a continuing impact on the Company’s consolidated statements of income. These adjustments primarily consist of adjustments to depreciation for the fair value and depreciable lives of property and equipment, amortization of intangible assets, stock compensation expense, interest expense and adjustments to tax expense based on condensed consolidated pro forma results. These results have been prepared using assumptions the Company’s management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2016, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to the realization of operating synergies that the Company may realize as a result of the acquisition. Unaudited condensed consolidated pro forma results Twelve Months Ended Twelve Months Ended December 31, December 31, 2017 2016 Reported Pro forma Reported Pro forma Net Sales $ 3,776.2 $ 3,936.2 $ 3,493.1 $ 3,739.3 Net Income $ 743.4 $ 753.4 $ 459.0 $ 467.2 Net income per share - Basic $ 2.97 $ 3.01 $ 1.78 $ 1.81 Net income per share - Diluted $ 2.90 $ 2.94 $ 1.75 $ 1.78 On May 1, 2017, the Company acquired Agro BioSciences, Inc. (“Agro”), an innovator and leader in developing custom probiotic products for poultry, cattle and swine (the “Agro Acquisition”). The total purchase price was approximately $75.0, and an additional payment of up to $25.0 after 3 years based on sales performance. Agro’s annual sales were approximately $11.0 in 2016. The Agro Acquisition was funded with short-term borrowings and is managed in the SPD segment. The fair values of the net assets acquired are set forth as follows: 2017 Agro Inventory and other assets $ 2.5 Trade names and other intangibles 37.0 Goodwill 53.4 Contingent consideration (17.8 ) Cash purchase price (net of cash acquired) $ 75.1 The life of the amortizable intangible assets recognized from the Agro Acquisition ranges from However in 2018, the Company lowered its estimate by $7.5 to $15.7 based on updated sales forecasts. On January 17, 2017, the Company acquired the Viviscal business (“VIVISCAL”) from Lifes2Good Holdings Limited for $160.3 (the “Viviscal Acquisition”). VIVISCAL is a leading hair care supplement brand both in the U.S. and the U.K. with global annual sales of $44.0 in 2016. The VIVISCAL brand is complementary to the Company’s global BATISTE dry shampoo and TOPPIK hair care business. The Viviscal Acquisition was funded with short-term borrowings and is managed by the Consumer Domestic and Consumer International segments. The fair values of the net assets acquired are set forth as follows: 2017 Viviscal Inventory and other working capital $ 10.3 Trade names and other intangibles 119.6 Goodwill 36.9 Current liabilities (6.5 ) Cash purchase price (net of cash acquired) $ 160.3 The life of the amortizable intangible assets recognized from the Viviscal Acquisition ranges from On December 22, 2016, the Company acquired the ANUSOL and RECTINOL business from Johnson & Johnson, Inc. for $130 (the “Anusol Acquisition”). ANUSOL and RECTINOL 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 Anusol Acquisition was funded with additional short-term borrowings and is managed in the Consumer International segment. The 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 operations of the acquisition and the Company. The goodwill and other intangible assets associated with the Waterpik Acquisition and the Passport Acquisition are not deductible for U.S. tax purposes. The goodwill and other intangible assets associated with the Agro, Viviscal, Anusol, and Toppik Acquisitions are deductible for U.S. tax purposes. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Gross Amortization Gross Carrying Accumulated Period Carrying Accumulated Amount Amortization Net (Years) Amount Amortization Net Amortizable intangible assets: Trade names $ 578.6 $ (175.2 ) $ 403.4 3-20 $ 576.7 $ (145.2 ) $ 431.5 Customer Relationships 506.3 (220.8 ) 285.5 15-20 480.5 (190.2 ) 290.3 Patents/Formulas 165.4 (61.5 ) 103.9 4-20 165.4 (51.7 ) 113.7 Non-Compete Agreement 0.4 (0.3 ) 0.1 5-10 0.4 (0.2 ) 0.2 Total $ 1,250.7 $ (457.8 ) $ 792.9 $ 1,223.0 $ (387.3 ) $ 835.7 Indefinite lived intangible assets - Carrying value December 31, December 31, 2018 2017 Trade names $ 1,481.1 $ 1,484.8 The Company determined that the carrying value of its trade names as of December 31, 2018 and 2017, was recoverable based upon the forecasted cash flows and profitability of the brands. In 2017 there was a personal care trade name that, based on recent performance, had experienced sales and profit declines that had eroded a significant portion of the excess between fair and carrying value, which could potentially result in an impairment of the asset. In 2017, this excess had been reduced due in large part to an increased competitive market environment therefore resulting in reduced cash flow projections. The performance of the tradename improved in 2018, thereby increasing the excess between fair value and carrying value. 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 $71.2 for 2018, $61.0 for 2017 and $46.0 for 2016, respectively. The Company estimates that intangible amortization expense will be approximately $70.0 in 2019 and approximately $68.0 to $59.0 annually over the next five years. During the fourth quarter of 2017, the Company determined that a Consumer Domestic tradename should be re-characterized from indefinite lived to finite lived assets. This conclusion was based upon lower forecasted sales and profitability and competitive pressures. This change was made after the annual impairment test was performed in which an impairment was not indicated. The carrying value of this tradename as of December 31, 2017 was approximately $22.0 million and is being amortized over 20 years based upon the estimated cash flows. The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2016 $ 1,280.1 $ 113.9 $ 50.1 $ 1,444.1 VIVISCAL acquired goodwill 29.5 7.4 0.0 $ 36.9 Agro acquired goodwill 0.0 0.0 53.4 $ 53.4 Waterpik acquired goodwill 322.5 101.8 0.0 $ 424.3 Other 0.0 0.2 0.0 0.2 Balance at December 31, 2017 $ 1,632.1 $ 223.3 $ 103.5 $ 1,958.9 Passport acquired goodwill 0.0 0.0 32.5 32.5 Waterpik adjustment 1.1 0.4 0.0 1.5 Balance at December 31, 2018 $ 1,633.2 $ 223.7 $ 136.0 $ 1,992.9 The result of the Company’s annual goodwill impairment test, performed in the beginning of the second quarter of 2018, 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, 2018 | |
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, 2018 2017 Trade accounts payable $ 430.2 $ 398.9 Accrued marketing and promotion costs 116.2 108.4 Accrued wages and related benefit costs 84.2 61.8 Other accrued current liabilities 94.5 90.0 Total $ 725.1 $ 659.1 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | 9. Short-Term Borrowings and Long-Term Debt Short-term borrowings and long-term debt consist of the following: December 31, December 31, 2018 2017 Short-term borrowings Commercial paper issuances $ 0.0 $ 268.7 Various debt due to international banks 1.8 2.2 Total short-term borrowings $ 1.8 $ 270.9 Long-term debt Floating Rate Senior notes due January 25, 2019 $ 300.0 $ 300.0 2.45% Senior notes due December 15, 2019 300.0 300.0 Less: Discount 0.0 (0.1 ) 2.45% Senior notes due August 1, 2022 300.0 300.0 Less: Discount (0.3 ) (0.3 ) 2.875% Senior notes due October 1, 2022 400.0 400.0 Less: Discount (0.1 ) (0.2 ) 3.15% Senior notes due August 1, 2027 425.0 425.0 Less: Discount (0.4 ) (0.4 ) 3.95% Senior notes due August 1, 2047 400.0 400.0 Less: Discount (2.8 ) (2.9 ) Debt issuance costs, net (13.1 ) (15.5 ) Fair value adjustment asset (liability) related to hedged fixed rate debt instrument (3.0 ) (2.2 ) Total long-term debt 2,105.3 2,103.4 Less: current maturities (596.5 ) 0.0 Net long-term debt $ 1,508.8 $ 2,103.4 Revolving Credit Facility On March 29, 2018, we replaced our former $1,000.0 unsecured revolving credit facility that was scheduled to terminate on December 4, 2020 with a new $1,000.0 unsecured revolving credit facility (the “Credit Agreement”). Under the Credit Agreement, we have the ability to increase our 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 our $1,000.0 commercial paper program. Unless extended, the Credit Agreement will terminate and all amounts outstanding thereunder will be due and payable on March 29, 2023. 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 equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America’s “prime rate” and (c) the adjusted LIBOR rate for an interest period of one-month plus 1.00%), in any case not less than zero, 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 1.500% per annum, in the case of any borrowing bearing interest by reference to the adjusted LIBOR rate, and 0% to 0.50%, in the case of any borrowing bearing interest by reference to the Base Rate. In addition, the Company will bear certain customary fees, including a commitment fee, determined based upon the corporate credit rating of the Company and ranging from 0.070% to 0.175% per annum on the aggregate unused commitments under the Credit Agreement, and additional issuance fees and participation fees in respect of any letters of credit issued under the Credit Agreement. 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 its Consolidated Funded Indebtedness (as defined in the Credit Agreement) to EBITDA, at a level no greater than 3.75 to 1.00 (or, to the extent the Company or any Subsidiary has consummated a material acquisition , (i) at a level no greater than 4.25:1.00 for the 12 month period commencing on the date the Company or any Subsidiary consummates the first material acquisition after the closing date and (ii) at a level no greater than 4.25:1.00 for the 12 month period commencing on the date the Company or any Subsidiary consummates any additional material acquisition, provided that the Company has maintained a leverage ratio of 3:75:1.00 or less during each of the immediately preceding four consecutive fiscal quarters before the date of such additional material acquisition). The Credit Agreement also contains customary events of default, including failure to make certain payments under the Credit Agreement when due, breach of covenants, materially incorrect representations and warranties, default on other material indebtedness, events of bankruptcy, material adverse judgments, certain events relating to pension plans, the failure of any of the loan documents to remain in full force and effect and the occurrence of any change in control with respect to the Company. $1.425M Senior Notes The Company financed the Waterpik Acquisition with a portion of the proceeds from an underwritten public offering of $1,425.0 aggregate principal amount of Senior Notes completed on July 25, 2017, consisting of $300.0 aggregate principal amount of Floating Rate Senior Notes due 2019, $300.0 aggregate principal amount of 2.45% Senior Notes due 2022, $425.0 aggregate principal amount of 3.15% Senior Notes due 2027 and $400.0 aggregate principal amount of 3.95% Senior Notes due 2047 (collectively, the “Senior Notes”). The Floating Rate Senior Notes which matured and were repaid in full on January 25, 2019, bore interest at a rate, reset quarterly, equal to three-month U.S. Dollar London Interbank Offered Rate (“LIBOR”) plus 0.15%. The remaining proceeds of the offering of the Senior Notes were used to pay down in its entirety and terminate the Company’s $200.0 term loan borrowed in the second quarter of 2017 and to repay a portion of the Company’s outstanding commercial paper borrowings. 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. 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. Commercial Paper The Company has an agreement with four 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 Program was amended on February 23, 2017 to increase the amount from $500.0 to $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 did not have any commercial paper outstanding as of December 31, 2018 and had $268.7 as of December 31, 2017 with a weighted-average interest rate of approximately 1.6%. 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 Current Assets or Accounts Payable and Accrued Expenses, with an offsetting amount recorded in the Current portion of long-term debt to adjust the carrying amount of the hedged debt obligation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of income before taxes are as follows: 2018 2017 2016 Domestic $ 671.8 $ 683.2 $ 665.0 Foreign 47.7 9.5 40.9 Total $ 719.5 $ 692.7 $ 705.9 The following table summarizes the provision for U.S. federal, state and foreign income taxes: 2018 2017 2016 Current: U.S. federal $ 103.4 $ 146.7 $ 183.4 State 23.4 29.0 27.2 Foreign 13.0 11.2 11.4 139.8 186.9 222.0 Deferred: U.S. federal 5.4 (235.0 ) 19.2 State 4.6 3.8 4.1 Foreign 1.1 (6.4 ) 1.6 11.1 (237.6 ) 24.9 Total provision $ 150.9 $ (50.7 ) $ 246.9 Deferred tax assets (liabilities) consist of the following at December 31: 2018 2017 Deferred tax assets: Accounts receivable $ 3.4 $ 3.7 Deferred compensation 44.8 45.5 Pension, postretirement and postemployment benefits 5.8 7.5 Other 22.1 23.4 Tax credit carryforwards/other tax attributes 10.7 3.9 International operating loss carryforwards 10.8 11.6 Total gross deferred tax assets 97.6 95.6 Valuation allowances (24.5 ) (23.5 ) Total deferred tax assets 73.1 72.1 Deferred tax liabilities: Goodwill (165.6 ) (153.6 ) Trade names and other intangibles (420.1 ) (411.8 ) Property, plant and equipment (62.1 ) (65.8 ) Total deferred tax liabilities (647.8 ) (631.2 ) Net deferred tax liability $ (574.7 ) $ (559.1 ) Long term net deferred tax asset 1.7 2.1 Long term net deferred tax liability (576.4 ) (561.2 ) Net deferred tax liability $ (574.7 ) $ (559.1 ) The difference between tax expense and the tax that would result from the application of the federal statutory rate is as follows: 2018 2017 2016 Statutory rate 21 % 35 % 35 % Tax that would result from use of the federal statutory rate $ 151.1 $ 242.4 $ 247.1 State and local income tax, net of federal effect 22.1 21.4 20.3 Varying tax rates of foreign affiliates 3.3 (0.1 ) (4.1 ) Benefit from domestic manufacturing deduction 0.0 (15.2 ) (14.2 ) Valuation Allowances 1.0 (6.2 ) 2.9 Stock Options Exercised (22.1 ) (15.1 ) 0.0 US Tax Reform 0.0 (272.9 ) 0.0 Other (4.5 ) (5.0 ) (5.1 ) Recorded tax expense $ 150.9 $ (50.7 ) $ 246.9 Effective tax rate 21.0 % -7.3 % 35.0 % On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act significantly changed the U.S. corporate income tax regime by, among other things, lowering U.S. corporate income tax rates to 21%. However, the Tax Act eliminated the domestic manufacturing deduction and moves toward a territorial system, which also eliminated the ability to credit certain foreign taxes that existed prior to enactment of the Tax Act. As part of the transition to the new territorial tax system, the Tax Act imposed a one-time repatriation tax on a deemed repatriation of historical earnings of foreign subsidiaries. In the year ended December 31, 2018, the Company repatriated approximately $150.0 of its non-U.S. earnings and paid the associated withholding tax. The changes included in the Tax Act are broad and complex. The Commission has issued guidance that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the provisional tax impact originally recorded in the quarter and year ended December 31, 2017. This measurement period expired in the fourth quarter of 2018, and there were no adjustments to the provisional tax impact of approximately $273.0 recorded in the quarter and year ended December 31, 2017. At December 31, 2018, certain foreign subsidiaries of the Company had net operating loss carryforwards of approximately $34.0. Approximately $0.6 of such net operating loss carryforwards expire on various dates through December 31, 2023. 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 most of these net operating loss carryforwards will not be realized. In recognition of this risk, the Company has provided a valuation allowance of $10.3 and $11.2 at December 31, 2018 and 2017, 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 $1.9 and $2.4 at December 31, 2018 and 2017, respectively, on these deferred tax assets. Due to changes in the ability to credit certain foreign taxes resulting from the Tax Act, the Company determined that it is more likely than not that the benefit from certain foreign tax credit carryforwards will not be realized. In recognition of this risk, the Company established a valuation allowance of $9.9 at December 31, 2017 and maintained a valuation allowance of $12.3 at December 31, 2018 on the deferred tax asset relating to these foreign tax credit carryforwards. In 2015, the Company reported an impairment charge relating to its investment in Natronx. At the time, the Company believed that it was more likely than not that a tax benefit relating to the impairment would not be realized. In recognition of this risk, the Company established a valuation allowance of $7.7 in 2015. The Company has since determined that it was more likely than not that the tax benefit relating to the impairment would be realized and reversed the valuation allowance in 2017. The Tax Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries in 2017, and moved toward a territorial tax system. As a result, the Company will no longer have undistributed earnings of foreign subsidiaries that are considered to be permanently reinvested outside of the U.S. 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 had no uncertain tax positions or unrecognized tax benefits at December 31, 2017 and 2016. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Unrecognized tax benefits at January 1 $ 0.0 $ 0.0 $ 0.0 Gross increases - tax positions in prior period 5.1 0.0 0.0 Gross decreases - tax positions in prior period 0.0 0.0 0.0 Settlements 0.0 0.0 0.0 Lapse of statute of limitations (0.4 ) 0.0 0.0 Unrecognized tax benefits at December 31 $ 4.7 $ 0.0 $ 0.0 Included in the balance of unrecognized tax benefits at December 31, 2018 is $3.9 of tax benefits that, if recognized, would affect the effective tax rate. Also included in the balance of unrecognized tax benefits at December 31, 2018 is $0.8 of tax benefits that, if recognized, would result in adjustments to deferred taxes. 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 2014. The Company is currently under audit by several state and international taxing authorities for the years 2013 through 2016. In addition, certain statutes of limitations are scheduled to expire in the near future. It is reasonably possible that a decrease of approximately $0.4 in the unrecognized tax benefits may occur within the next twelve months related to the settlement of these audits or the lapse of applicable statutes of limitations. The Company’s policy for recording interest associated with income tax examinations is to record interest as a component of Income before Income Taxes. During the twelve months ended December 31, 2018, the Company recognized approximately $0.2 in interest expense associated with uncertain tax positions. As of December 31, 2018, the Company had $0.3 in accrued interest expense related to unrecognized tax benefits. |
Stock Based Compensation Plans
Stock Based Compensation Plans and Other Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation Plans and Other Benefit Plans | 11. Stock Based Compensation Plans and Other Benefit Plans 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 (with the exception of options granted to former Waterpik employees as part of the Waterpik Acquisition), vest on the third anniversary of the date of grant and must be exercised within 10 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, 2018 were as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value 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 Granted 2.1 48.39 Exercised (1.8 ) 23.06 Cancelled (0.2 ) 43.64 Outstanding as of December 31, 2017 16.1 $ 33.11 Granted 2.0 50.77 Exercised (3.3 ) 23.07 Cancelled (0.1 ) 48.54 Outstanding as of December 31, 2018 14.7 $ 37.63 5.6 $ 412.5 Exercisable as of December 31, 2018 8.8 $ 29.82 4.0 $ 314.7 The following table summarizes information relating to options outstanding and exercisable as of December 31, 2018: Options Outstanding Options Exercisable Weighted Weighted Weighted Outstanding Average Average Exercisable Average Range of as of Remaining Exercise as of Exercise Exercise Prices 12/31/2018 Contractual Price 12/31/2018 Price $0.01 - $25.00 2.3 1.9 $ 17.04 2.2 $ 17.66 $25.01 - $30.00 1.4 3.4 $ 26.92 1.4 $ 26.92 $30.01 - $35.00 3.5 4.7 $ 32.73 3.5 $ 32.73 $35.01 - $40.00 0.0 5.8 $ 36.06 0.0 $ 36.06 $40.01 - $45.00 2.4 6.3 $ 41.88 1.7 $ 41.92 $45.01 - $50.00 1.4 6.7 $ 49.15 0.0 $ 46.64 $50.01 - $55.00 3.6 8.7 $ 51.93 0.0 $ 0.0 $55.01 - $60.00 0.1 9.8 $ 59.42 0.0 $ 0.0 14.7 5.6 $ 37.63 8.8 $ 29.82 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: 2018 2017 2016 Intrinsic Value of Stock Options Exercised $ 109.6 $ 48.0 $ 91.5 Stock Compensation Expense Related to Stock Option Awards $ 21.3 $ 15.7 $ 14.4 Issued Stock Options 2.0 2.1 2.1 Weighted Average Fair Value of Stock Options issued (per share) $ 9.79 $ 12.90 $ 7.57 Fair Value of Stock Options Issued $ 19.4 $ 27.8 $ 16.1 The following table provides a summary of the assumptions used in the valuation of issued stock options: 2018 2017 2016 Risk-free interest rate 2.9 % 2.0 % 1.7 % Expected life in years 7.3 6.9 6.8 Expected volatility 17.1 % 16.7 % 17.0 % Dividend yield 1.7 % 1.4 % 1.5 % 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, 2018, there was a fair value of $15.3 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 $23.3, $18.1 and $16.0 in 2018, 2017 and 2016, respectively, for non-cash compensation expense, primarily stock option expense. The excess tax benefits on stock options exercised for 2018, 2017 and 2016 was $22.1, $15.1 and $30.0, respectively. During 2018, the Company issued cash settled restricted shares to all employees. These shares follow the vesting schedule under the Amended and Restated Omnibus Equity Plan. As a result, the Company recorded stock compensation expense and a corresponding liability of $1.6. The unamortized amount is approximately $3.1 based on the year-end stock price. Other Benefit Plans International Pension Plan Termination In 2016, the Company authorized the termination of international defined benefit pension plans under which approximately 336 participants, including 53 active employees, had accrued benefits. The Company completed the termination of this plan in the second quarter of 2017. In addition to plan assets, the Company made a one-time payment of $7.5 to purchase annuities for participants. The Company recorded a one-time SG&A expense of $39.2 ($31.5 after tax) in the Consumer International segment in the second quarter of 2017. This expense primarily included 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. As of June 30, 2017, the Company had no further obligations with respect to material defined benefit pension plans. 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 our 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, 2018 and 2017, the amount of the Company’s liability under the deferred compensation plan is included in Current and Deferred and Other Long-term Liabilities and was $92.7 and $90.6, respectively and the funded balances recorded in Other Assets amounted to $79.4 and $81.4, respectively. The amounts charged to earnings, including the effect of the hedges, totaled $2.4, $1.9, and $2.3 in 2018, 2017 and 2016, 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, 2018, there were approximately 280,000 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, 2018 | |
Payments For Repurchase Of Equity [Abstract] | |
Share Repurchases | 12. Share Repurchases On November 1, 2017, the Board authorized a new share repurchase program, under which the Company may repurchase up to $500.0 in shares of Common Stock (the “2017 Share Repurchase Program”). The 2017 Share Repurchase Program does not have an expiration and will replace the 2016 Share Repurchase Program. In December of 2017, the Company entered into an accelerated share (“ASR”) contract with a commercial bank to |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
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, 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 ) Other comprehensive income before reclassifications 20.0 3.3 (7.9 ) 15.4 Amounts reclassified to consolidated statement of income (a)(b) 0.0 11.9 2.6 14.5 Tax benefit (expense) (1.6 ) (2.6 ) 1.7 (2.5 ) Other comprehensive income (loss) 18.4 12.6 (3.6 ) 27.4 Balance December 31, 2017 $ (31.6 ) $ (0.6 ) $ (4.2 ) $ (36.4 ) Adoption of new accounting pronouncements (Note 1) $ (0.3 ) $ 0.1 $ (0.4 ) $ (0.6 ) Other comprehensive income before reclassifications (10.6 ) 1.9 (9.7 ) (18.4 ) Amounts reclassified to consolidated statement of income (c) 0.0 0.0 0.0 0.0 Tax benefit (expense) 0.0 (0.5 ) 2.3 1.8 Other comprehensive income (loss) (10.6 ) 1.4 (7.4 ) (16.6 ) Balance December 31, 2018 $ (42.5 ) $ 0.9 $ (12.0 ) $ (53.6 ) (a) Amounts reclassified to cost of sales or selling, general and administrative expenses. (b) In connection with the termination of international defined benefit pension plans, $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales (c) Amounts reclassified to cost of sales or interest expense. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
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 $24.5, $24.5 and $18.8 in 2018, 2017 and 2016, respectively. Beginning January 1, 2013, financing lease expense was recorded primarily for the Company’s Corporate Headquarters building. In 2018, interest expense associated with this lease amounted to $3.8 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 2019 $ 18.7 $ 6.0 $ 24.7 2020 14.6 5.8 20.4 2021 12.2 5.7 17.9 2022 10.9 5.7 16.6 2023 6.4 6.0 12.4 2024 and thereafter 10.5 55.3 65.8 Total future minimum lease commitments $ 73.3 $ 84.5 $ 157.8 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 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. The Company is not engaged in any other material transactions with the partnership or the partner supplier. c. As of December 31, 2018, the Company had commitments of approximately $262.5. 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, 2018, the Company had various guarantees and letters of credit totaling $5.2. e. In connection with Agro Acquisition, the Company is obligated to pay an additional amount of up to $25.0 based on sales performance in 2019. The initial fair value of this contingent liability was $17.8, which was established in the purchase price allocation. Subsequent to the Agro Acquisition, the Company increased the estimate of the contingent consideration liability $5.4 in the fourth quarter of 2017 from $17.8 to $23.2 based on updated sales forecasts. However in 2018, the Company lowered its estimate by $7.5 to $15.7 based on updated sales forecasts. The reduction was recorded in SG&A in the SPD segment. The liability will be assessed for re-measurement at each balance sheet date leading up to the end of the 3-year period. In connection with the Passport Acquisition, the Company is obligated to pay an additional amount of up to $25.0 based on sales performance through 2020. The initial fair value of this contingent liability was $7.3, which was established in the purchase price allocation. The liability will be assessed for re-measurement at each balance sheet date leading up to December 31, 2020. 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, as well as declaratory relief, statutory prejudgment interest and attorneys’ fees and costs. The Company is vigorously defending itself in this matter. On September 19, 2018, the court granted the Company’s motion for summary judgment, dismissing all claims brought by the Plaintiff. The Plaintiff has filed an appeal. In connection with this matter, the Company has reserved an amount that is immaterial. However, it is reasonably possible that the Company may ultimately be required to pay all or substantially all of the damages and other amounts sought by Plaintiff in the event the summary judgment entered in favor of the Company is reversed. 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, results of operations and cash flows. h. In addition to the matters described above, from time to time in the ordinary course of its business the Company is the subject of, or party to, various pending or threatened legal, regulatory or governmental actions or other proceedings, including, without limitation, those relating to, intellectual property, commercial transactions, product liability, purported consumer class actions, employment matters, antitrust, environmental, health, safety and other compliance related matters. Such proceedings are generally subject to considerable uncertainty and their outcomes, and any related damages, may not be reasonably predictable or estimable. While any such proceedings could result in an adverse outcome for the Company, any such adverse outcome is not expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions The following summarizes the balances and transactions between the Company and each of Armand and ArmaKleen, in which the Company holds a 50% ownership interest: Armand ArmaKleen Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Purchases by Company $ 15.6 $ 20.5 $ 20.9 $ 0.0 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.0 $ 1.2 $ 1.2 $ 1.0 Outstanding Accounts Receivable $ 0.8 $ 0.7 $ 0.5 $ 0.7 $ 0.8 $ 0.7 Outstanding Accounts Payable $ 1.0 $ 1.7 $ 1.7 $ 0.0 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 2.5 $ 2.4 $ 2.3 $ 2.1 $ 2.0 $ 2.0 (1) Billed by Company and recorded as a reduction of SG&A expenses. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2018 | |
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 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, 2018: Consumer Consumer Domestic International SPD Corporate (1) As Net sales 2018 $ 3,129.9 $ 709.5 $ 306.5 $ 0.0 $ 4,145.9 2017 2,854.9 621.1 300.2 0.0 3,776.2 2016 2,677.8 525.2 290.1 0.0 3,493.1 Gross profit 2018 1,448.9 318.4 117.5 (44.0 ) 1,840.8 2017 1,380.1 281.0 101.3 (32.8 ) 1,729.6 2016 1,308.8 235.4 83.0 (36.6 ) 1,590.6 Marketing Expenses 2018 383.3 95.4 4.5 0.0 483.2 2017 364.1 85.7 4.4 0.0 454.2 2016 345.2 78.2 3.8 0.0 427.2 Selling, General and Administrative Expenses 2018 422.7 131.6 55.6 (44.0 ) 565.9 2017 366.6 158.5 50.4 (32.8 ) 542.7 2016 350.7 89.0 36.1 (36.6 ) 439.2 Income from Operations 2018 642.9 91.4 57.4 0.0 791.7 2017 649.4 36.8 46.5 0.0 732.7 2016 612.9 68.2 43.1 0.0 724.2 Equity in Earnings of Affiliates 2018 0.0 0.0 0.0 9.2 9.2 2017 0.0 0.0 0.0 10.8 10.8 2016 0.0 0.0 0.0 9.2 9.2 Income Before Income Taxes 2018 577.2 81.5 51.6 9.2 719.5 2017 606.4 32.0 43.5 10.8 692.7 2016 590.6 66.3 39.8 9.2 705.9 Identifiable Assets 2018 4,642.4 991.6 347.4 87.8 6,069.2 2017 4,543.2 1,112.4 268.5 90.7 6,014.8 2016 3,374.4 714.5 181.3 83.9 4,354.1 Capital Expenditures 2018 36.0 12.5 11.9 0.0 60.4 2017 30.6 8.9 5.5 0.0 45.0 2016 34.9 8.8 6.1 0.0 49.8 Depreciation & Amortization 2018 103.5 19.9 13.5 4.2 141.1 2017 95.5 16.8 10.3 2.8 125.4 2016 87.8 9.5 8.6 1.7 107.6 (1) The Corporate segment reflects the following: (A) (B) (C) Other than the differences noted in the footnote above, the accounting policies followed by each of the segments, including intersegment transactions, are substantially consistent with the accounting policies described in Note 1. Intersegment sales from Consumer International to Consumer Domestic, which are not reflected in the table above, were $5.7, $4.5 and $3.4 for the twelve months ended December 31, 2018, December 31, 2017 and December 31, 2016, respectively. Product line revenues from external customers for each of the three years ended December 31, 2018, December 31, 2017 and December 31, 2016 were as follows: 2018 2017 2016 Household Products $ 1,725.5 $ 1,640.0 $ 1,593.4 Personal Care Products 1,404.4 1,214.9 1,084.4 Total Consumer Domestic 3,129.9 2,854.9 2,677.8 Total Consumer International 709.5 621.1 525.2 Total SPD 306.5 300.2 290.1 Total Consolidated Net Sales $ 4,145.9 $ 3,776.2 $ 3,493.1 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 82%, 83% and 84% of the net sales reported in the accompanying consolidated financial statements in 2018, 2017 and 2016, respectively, were to customers in the U.S. Approximately 95%, 95% and 98% of long-lived assets were located in the U.S. at December 31, 2018, 2017 and 2016, 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 36%, 36% and 35% of consolidated net sales in 2018, 2017 and 2016, respectively, of which a single customer (Walmart Inc. and its affiliates) accounted for approximately 23%, 24% and 24% in 2018, 2017 and 2016, respectively. |
Brazilian Chemical Business
Brazilian Chemical Business | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Brazilian Chemical Business | 17. During the fourth quarter of 2016, the Company decided to sell its Brazilian chemical business, resulting in a plant impairment charge of $4.9 recognized in the fourth quarter of 2016 based upon an expected sales price. During the first quarter of 2017, the Company sold the business for approximately $4.5, and recorded an approximate $3.5 expense for severance and other charges for the three months ended March 31, 2017. These charges were included in the SPD segment. Sales for the Brazilian chemical business in 2016 were approximately $22.0. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 18. In connection with the evergreen repurchase program, in January 2019, the Company executed open market purchases of $100.0 of Common Stock. |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Net Sales $ 1,006.0 $ 1,027.9 $ 1,037.6 $ 1,074.4 $ 4,145.9 Gross Profit 451.5 454.9 460.1 474.3 1,840.8 Income from Operations 220.3 173.8 204.2 193.4 791.7 Net Income 157.8 121.7 146.3 142.8 568.6 Net Income per Share-Basic $ 0.64 $ 0.50 $ 0.60 $ 0.58 $ 2.32 Net Income per Share-Diluted $ 0.63 $ 0.49 $ 0.58 $ 0.57 $ 2.27 2017 Net Sales $ 877.2 $ 898.0 $ 967.9 $ 1,033.1 $ 3,776.2 Gross Profit 399.3 410.4 438.5 481.4 1,729.6 Income from Operations 196.1 123.2 198.7 214.7 732.7 Net Income 131.5 72.9 133.4 405.6 743.4 Net Income per Share-Basic $ 0.52 $ 0.29 $ 0.53 $ 1.63 $ 2.97 Net Income per Share-Diluted $ 0.51 $ 0.29 $ 0.52 $ 1.60 $ 2.90 |
SCHEDULE II-Valuation and Quali
SCHEDULE II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II-Valuation and Qualifying Accounts | For each of the three years in the period ended December 31, 2018 (Dollars in millions) Additions Deductions Beginning Charged to Amounts Foreign Ending Balance Expenses Acquired Written Off Exchange Balance Allowance for Doubtful Accounts 2018 $ 2.9 $ 1.1 $ 0.0 $ (0.8 ) $ (0.1 ) $ 3.1 2017 2.1 1.2 0.2 (0.6 ) 0.0 2.9 2016 1.0 1.3 0.0 (0.3 ) 0.1 2.1 Allowance for Cash Discounts 2018 $ 5.1 $ 83.8 $ 0.0 $ (83.8 ) $ (0.1 ) $ 5.0 2017 4.6 75.5 0.7 (75.8 ) 0.1 5.1 2016 4.6 69.8 0.0 (69.8 ) 0.0 4.6 Sales Returns and Allowances 2018 $ 13.9 $ 93.3 $ 0.0 $ (95.0 ) $ (0.1 ) $ 12.1 2017 12.1 74.9 0.1 (73.4 ) 0.2 13.9 2016 11.9 56.7 0.0 (56.8 ) 0.3 12.1 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Business | Business The Company, founded in 1846, develops, manufactures and markets a broad range of household, personal care and specialty products focused on animal productivity, chemicals and cleaners. 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 and other e-commerce channels, all of which sell the products to consumers. The Company also sells specialty products to industrial customers, livestock producers and through 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. Armand and ArmaKleen are specialty chemical businesses. The Company’s equity in earnings of Armand and ArmaKleen are included in the Corporate segment, as described in Note 16. In March 2016, the Financial Accounting Standards Board (“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 Company prospectively adopted the standard in the first quarter of 2017. The adoption resulted in excess tax benefits of $22.1 and $15.1 or approximately $0.08 and $0.05 per share recorded in the provision for income taxes rather than in the Company’s Stockholders’ Equity section of the Balance Sheet for the years ended December 31, 2018 and 2017, respectively. It also resulted in an increase to both net cash provided by operating activities and net cash provided by financing activities of $22.1 and $15.1 for the twelve months ended December 31, 2018 and 2017, respectively. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share, which did not have a material impact on the Company’s diluted earnings per share for the three and twelve months ended December 31, 2018 and 2017. 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. |
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 | Revenue Recognition Revenue is recognized when control of a promised good is transferred to a customer in an amount that reflects the consideration that the Company expects to be entitled to in exchange for that good. This usually occurs 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. Adoption of the new revenue recognition pronouncement as discussed below did not have a significant impact on the Company’s consolidated financial statements. The adoption required the Company to recognize certain costs earlier, primarily due to the timing of coupon expense recognition, which was not material. Refer to the table below on page 58 for a presentation of the impacts of adoption of the guidance on the Company’s January 1, 2018 balance sheet. a. Nature of Goods and Services The Company primarily ships finished goods to its customers and operates in three segments: Consumer Domestic, Consumer International and Specialty Products Division (“SPD”). The segments are based on differences in the nature of products and organizational and ownership structures. The Consumer Domestic and Consumer International segments market a variety of personal care and household products and over-the-counter products, including but not limited to baking soda, cat litter, laundry detergent, condoms, stain removers, hair removal, gummy dietary supplements, dry shampoo, water flossers and showerheads. The SPD segment focuses on sales to businesses and participates in three product areas: Animal Productivity, Specialty Chemicals and Specialty Cleaners. The Company’s products are distinct and separately identifiable on customer contracts or invoices, with each product sale representing a separate performance obligation. The Company sells 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 and other e-commerce channels, all of which sell our products to consumers. The Company sells its specialty products to industrial customers, livestock producers and through distributors. Refer to Note 16 for disaggregated revenue information with respect to each of our segments. b. When Performance Obligations are Satisfied For performance obligations related to the shipping and invoicing of products, control transfers at the point in time upon which finished goods are delivered to the Company’s customers or when finished goods are picked up by a customer or a customer’s carrier. Once a product has been delivered or picked up by the customer, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset. The Company considers control to have transferred upon delivery or customer receipt because the Company has an enforceable right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risk and rewards of ownership of the asset. c. Variable Consideration 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 and are recorded when the related sale takes place. 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 inputs 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. d. Practical Expedients The Company expenses incremental direct costs of obtaining a contract (broker commissions) when the related sale takes place. These costs are recorded in SG&A expenses in the accompanying consolidated statements of income. The Company accounts for shipping and handling costs as fulfillment activities which are therefore recognized upon shipment of the goods. The Company has applied the portfolio approach to all open contracts as they have similar characteristics and can reasonably expect that the effects on the financial statements of applying this new guidance to the portfolio of contracts would not differ materially from applying this guidance to the individual contracts within the portfolio. The Company excludes from its revenue any amounts collected from customers for sales (and similar) taxes. |
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 $7.5 in 2018, resulting in a total of $112.9 and $105.4 as of December 31, 2018 and 2017, 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 (net realizable value, which reflects any costs to sell or dispose). 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 $17.0 at December 31, 2018, and $12.8 at December 31, 2017. On April 1, 2018, the Company changed its method of accounting for inventories from last-in-first-out (“LIFO”) to first-in-first-out (“FIFO”) for the approximately 17% of consolidated inventory not previously valued using FIFO. Substantially all of the Company’s SPD segment inventory, as well as domestic inventory sold primarily under the ARM & HAMMER trademark in the Consumer Domestic segment, was previously determined using LIFO. After this change, the value of all of the Company’s inventory was determined by the FIFO method. The Company believes this change is preferable as the predominant method to value inventory has been FIFO, which will provide a uniform costing method across all inventory. Prior financial statements have not been retroactively adjusted due to immateriality. The cumulative effect of the change in accounting principle of approximately $4.0 pre-tax was recorded as a decrease to cost of goods sold for the quarter ending June 30, 2018 |
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 and indefinite-lived tradenames 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 2019 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 $89.7, $70.8 and $63.2 in 2018, 2017 and 2016, 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: 2018 2017 2016 Weighted average common shares outstanding - basic 245.5 250.6 257.6 Dilutive effect of stock options 5.2 5.5 4.5 Weighted average common shares outstanding - diluted 250.7 256.1 262.1 Antidilutive stock options outstanding 1.9 3.2 1.4 |
Employee and Director Stock Option Based Compensation | Employee and Director Stock 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, 2018 2017 2016 Cost of sales $ 2.6 $ 1.8 $ 1.9 Selling, general and administrative expenses 22.3 16.3 14.1 Total $ 24.9 $ 18.1 $ 16.0 |
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 | Recently Adopted Accounting Pronouncements In August 2018, the FASB issued new accounting guidance requiring a customer in a hosting arrangement that is a service contract to apply the guidance on internal-use software to determine which implementation costs to recognize as an asset and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company has adopted this new standard during the third quarter of 2018 and elected to use the prospective approach. In February 2018, the FASB issued new accounting guidance which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) and requires certain disclosures regarding stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company adopted this change using the modified retrospective approach by adjusting certain December 31, 2017 stockholders’ equity accounts (see below). In 2016, the FASB issued 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 new standard was adopted by the Company using the modified retrospective approach in the first quarter of 2018. See page 54 for the Company’s revenue recognition accounting policy. The effects of the recently adopted accounting pronouncements to the Company’s consolidated balance sheet as of January 1, 2018 is as follows: Balance at New Revenue New Tax Balance at December 31, Standard Reform January 1, 2017 Adjustment Adjustment 2018 Accounts payable and accrued expenses $ 659.1 $ 3.0 $ 0.0 $ 662.1 Income taxes payable 5.0 (0.7 ) 0.0 4.3 Retained earnings 3,479.0 (2.3 ) 0.6 3,477.3 Accumulated other comprehensive loss (36.4 ) 0.0 (0.6 ) (37.0 ) The adoption had no impact on the Company’s results of operations or cash flow. Recent Accounting Pronouncements Not Yet Adopted In August 2017 and October 2018, the FASB issued new accounting guidance, which is intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. These amendments also make targeted improvements to simplify the application of the hedge accounting. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The standard is not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. In February 2016 and July 2018, 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 allows companies to apply the requirements retrospectively, either to all prior periods presented or through a cumulative adjustment in the year of adoption. The Company adopted the new standard on January 1, 2019 on a modified retrospective basis and will elect the package of practical expedients permitted under the transition guidance, which eliminates the reassessment of past leases, classification, and initial direct costs. The Company has implemented the appropriate internal controls and tools to monitor and record historical and future lease arrangements and required disclosures. For all existing operating leases as of December 31, 2018, the Company anticipates recording Right of Use Assets of approximately $55 and corresponding lease liabilities of approximately $57 with an offset to Deferred and Other Long-term Liabilities of approximately $2 to eliminate deferred rent on the consolidated balance sheet. In addition, based on the transition guidance surrounding failed sale-and-leaseback transactions, the Company re-evaluated its Corporate Headquarters lease. This lease was previously considered a failed sale-and-leaseback transaction under ASC 840 because of continuing involvement. The re-evaluation resulted in a change in classification from a finance transaction to an operating lease. The Corporate Headquarters building, which has a book value of approximately $35 recorded in Property, Plant and Equipment as of December 31, 2018, was derecognized on January 1, 2019 and a Right of Use Asset of approximately $52 will be recorded with an offset to Deferred Income Taxes of $4 and Retained Earnings of $13. The Lease Liability pertaining to this asset of $52 remains unchanged. In total, at the adoption of the new accounting guidance there will be a Right of Use Asset of approximately $107 and a corresponding Lease Liability of $109. 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 Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 2016 Weighted average common shares outstanding - basic 245.5 250.6 257.6 Dilutive effect of stock options 5.2 5.5 4.5 Weighted average common shares outstanding - diluted 250.7 256.1 262.1 Antidilutive stock options outstanding 1.9 3.2 1.4 |
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, 2018 2017 2016 Cost of sales $ 2.6 $ 1.8 $ 1.9 Selling, general and administrative expenses 22.3 16.3 14.1 Total $ 24.9 $ 18.1 $ 16.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and December 31, 2017: December 31, 2018 December 31, 2017 Input Carrying Fair Carrying Fair Level Amount Value Amount Value Financial Assets: Cash equivalents Level 1 $ 234.6 $ 234.6 $ 95.8 $ 95.8 Financial Liabilities: Short-term borrowings Level 2 1.8 1.8 270.9 270.9 Floating Rate Senior notes due January 25, 2019 Level 2 300.0 299.9 300.0 299.9 2.45% Senior notes due December 15, 2019 Level 2 300.0 297.4 299.9 300.9 2.45% Senior notes due August 1, 2022 Level 2 299.7 289.7 299.7 296.1 2.875% Senior notes due October 1, 2022 Level 2 399.9 393.0 399.8 400.2 3.15% Senior notes due August 1, 2027 Level 2 424.6 400.0 424.6 417.8 3.95% Senior notes due August 1, 2047 Level 2 397.2 363.7 397.1 397.4 Contingent Consideration Level 3 23.0 23.0 23.2 23.2 Fair value adjustment (liability) asset related to hedged fixed rate debt instrument Level 2 (3.0 ) (3.0 ) (2.2 ) (2.2 ) Interest Rate Swap Lock Agreement Level 2 (7.0 ) (7.0 ) 0.0 0.0 |
Derivative Instruments and Ri_2
Derivative Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Derivatives designated as hedging instruments Foreign exchange contracts $ 146.6 $ 91.6 Interest rate swap $ 300.0 $ 300.0 Interest rate swap lock $ 250.0 $ 0.0 Diesel fuel contracts 8.2 gallons 3.0 gallons Commodities contracts 94.7 pounds 28.3 pounds Derivatives not designated as hedging instruments Equity derivatives $ 21.0 $ 22.2 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: December 31, December 31, 2018 2017 Raw materials and supplies $ 84.4 $ 85.6 Work in process 34.1 30.8 Finished goods 264.3 214.3 Total $ 382.8 $ 330.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net ("PP&E") (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | PP&E consist of the following: December 31, December 31, 2018 2017 Land $ 27.8 $ 27.9 Buildings and improvements 301.3 300.3 Machinery and equipment 716.7 699.3 Software 97.9 95.8 Office equipment and other assets 73.8 66.7 Construction in progress 49.7 36.4 Gross PP&E 1,267.2 1,226.4 Less accumulated depreciation and amortization 669.0 618.7 Net PP&E $ 598.2 $ 607.7 For the Year Ended December 31, 2018 2017 2016 Depreciation and amortization on PP&E $ 64.4 $ 60.9 $ 59.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Unaudited Pro Forma Results | The following unaudited pro forma information is based on the Company’s historical data and assumptions for consolidated results of operations, and gives effect to the Waterpik Acquisition as if the acquisition occurred on January 1, 2016. These unaudited pro forma results include adjustments having a continuing impact on the Company’s consolidated statements of income. These adjustments primarily consist of adjustments to depreciation for the fair value and depreciable lives of property and equipment, amortization of intangible assets, stock compensation expense, interest expense and adjustments to tax expense based on condensed consolidated pro forma results. These results have been prepared using assumptions the Company’s management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2016, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to the realization of operating synergies that the Company may realize as a result of the acquisition. Unaudited condensed consolidated pro forma results Twelve Months Ended Twelve Months Ended December 31, December 31, 2017 2016 Reported Pro forma Reported Pro forma Net Sales $ 3,776.2 $ 3,936.2 $ 3,493.1 $ 3,739.3 Net Income $ 743.4 $ 753.4 $ 459.0 $ 467.2 Net income per share - Basic $ 2.97 $ 3.01 $ 1.78 $ 1.81 Net income per share - Diluted $ 2.90 $ 2.94 $ 1.75 $ 1.78 |
Passport Food Safety Solutions, Inc. | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2018 Passport Inventory and other working capital $ 3.3 Long-term assets 1.0 Trade names and other intangibles 28.5 Goodwill 32.5 Current liabilities (1.1 ) Long-term liabilities (7.1 ) Contingent consideration (7.3 ) Cash purchase price (net of cash acquired) $ 49.8 |
Water Pik Inc | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2017 Waterpik Current assets $ 95.4 Property, plant and equipment 28.4 Trade name (indefinite lived) 644.7 Other intangible assets 146.1 Goodwill 425.8 Current liabilities (31.8 ) Long-term liabilities (284.0 ) Cash purchase price (net of cash acquired) $ 1,024.6 |
Agro Bio Sciences Inc | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2017 Agro Inventory and other assets $ 2.5 Trade names and other intangibles 37.0 Goodwill 53.4 Contingent consideration (17.8 ) Cash purchase price (net of cash acquired) $ 75.1 |
VIVISCAL | |
Fair Values of Assets Acquired | The fair values of the net assets acquired are set forth as follows: 2017 Viviscal Inventory and other working capital $ 10.3 Trade names and other intangibles 119.6 Goodwill 36.9 Current liabilities (6.5 ) Cash purchase price (net of cash acquired) $ 160.3 |
Anusol Acquisition | |
Fair Values of Assets Acquired | The 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Gross Amortization Gross Carrying Accumulated Period Carrying Accumulated Amount Amortization Net (Years) Amount Amortization Net Amortizable intangible assets: Trade names $ 578.6 $ (175.2 ) $ 403.4 3-20 $ 576.7 $ (145.2 ) $ 431.5 Customer Relationships 506.3 (220.8 ) 285.5 15-20 480.5 (190.2 ) 290.3 Patents/Formulas 165.4 (61.5 ) 103.9 4-20 165.4 (51.7 ) 113.7 Non-Compete Agreement 0.4 (0.3 ) 0.1 5-10 0.4 (0.2 ) 0.2 Total $ 1,250.7 $ (457.8 ) $ 792.9 $ 1,223.0 $ (387.3 ) $ 835.7 |
Indefinite Lived Intangible Assets | Indefinite lived intangible assets - Carrying value December 31, December 31, 2018 2017 Trade names $ 1,481.1 $ 1,484.8 |
Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 are as follows: Consumer Consumer Specialty Domestic International Products Total Balance at December 31, 2016 $ 1,280.1 $ 113.9 $ 50.1 $ 1,444.1 VIVISCAL acquired goodwill 29.5 7.4 0.0 $ 36.9 Agro acquired goodwill 0.0 0.0 53.4 $ 53.4 Waterpik acquired goodwill 322.5 101.8 0.0 $ 424.3 Other 0.0 0.2 0.0 0.2 Balance at December 31, 2017 $ 1,632.1 $ 223.3 $ 103.5 $ 1,958.9 Passport acquired goodwill 0.0 0.0 32.5 32.5 Waterpik adjustment 1.1 0.4 0.0 1.5 Balance at December 31, 2018 $ 1,633.2 $ 223.7 $ 136.0 $ 1,992.9 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: December 31, December 31, 2018 2017 Trade accounts payable $ 430.2 $ 398.9 Accrued marketing and promotion costs 116.2 108.4 Accrued wages and related benefit costs 84.2 61.8 Other accrued current liabilities 94.5 90.0 Total $ 725.1 $ 659.1 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Short-term borrowings Commercial paper issuances $ 0.0 $ 268.7 Various debt due to international banks 1.8 2.2 Total short-term borrowings $ 1.8 $ 270.9 Long-term debt Floating Rate Senior notes due January 25, 2019 $ 300.0 $ 300.0 2.45% Senior notes due December 15, 2019 300.0 300.0 Less: Discount 0.0 (0.1 ) 2.45% Senior notes due August 1, 2022 300.0 300.0 Less: Discount (0.3 ) (0.3 ) 2.875% Senior notes due October 1, 2022 400.0 400.0 Less: Discount (0.1 ) (0.2 ) 3.15% Senior notes due August 1, 2027 425.0 425.0 Less: Discount (0.4 ) (0.4 ) 3.95% Senior notes due August 1, 2047 400.0 400.0 Less: Discount (2.8 ) (2.9 ) Debt issuance costs, net (13.1 ) (15.5 ) Fair value adjustment asset (liability) related to hedged fixed rate debt instrument (3.0 ) (2.2 ) Total long-term debt 2,105.3 2,103.4 Less: current maturities (596.5 ) 0.0 Net long-term debt $ 1,508.8 $ 2,103.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Taxes | The components of income before taxes are as follows: 2018 2017 2016 Domestic $ 671.8 $ 683.2 $ 665.0 Foreign 47.7 9.5 40.9 Total $ 719.5 $ 692.7 $ 705.9 |
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: 2018 2017 2016 Current: U.S. federal $ 103.4 $ 146.7 $ 183.4 State 23.4 29.0 27.2 Foreign 13.0 11.2 11.4 139.8 186.9 222.0 Deferred: U.S. federal 5.4 (235.0 ) 19.2 State 4.6 3.8 4.1 Foreign 1.1 (6.4 ) 1.6 11.1 (237.6 ) 24.9 Total provision $ 150.9 $ (50.7 ) $ 246.9 |
Components of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consist of the following at December 31: 2018 2017 Deferred tax assets: Accounts receivable $ 3.4 $ 3.7 Deferred compensation 44.8 45.5 Pension, postretirement and postemployment benefits 5.8 7.5 Other 22.1 23.4 Tax credit carryforwards/other tax attributes 10.7 3.9 International operating loss carryforwards 10.8 11.6 Total gross deferred tax assets 97.6 95.6 Valuation allowances (24.5 ) (23.5 ) Total deferred tax assets 73.1 72.1 Deferred tax liabilities: Goodwill (165.6 ) (153.6 ) Trade names and other intangibles (420.1 ) (411.8 ) Property, plant and equipment (62.1 ) (65.8 ) Total deferred tax liabilities (647.8 ) (631.2 ) Net deferred tax liability $ (574.7 ) $ (559.1 ) Long term net deferred tax asset 1.7 2.1 Long term net deferred tax liability (576.4 ) (561.2 ) Net deferred tax liability $ (574.7 ) $ (559.1 ) |
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: 2018 2017 2016 Statutory rate 21 % 35 % 35 % Tax that would result from use of the federal statutory rate $ 151.1 $ 242.4 $ 247.1 State and local income tax, net of federal effect 22.1 21.4 20.3 Varying tax rates of foreign affiliates 3.3 (0.1 ) (4.1 ) Benefit from domestic manufacturing deduction 0.0 (15.2 ) (14.2 ) Valuation Allowances 1.0 (6.2 ) 2.9 Stock Options Exercised (22.1 ) (15.1 ) 0.0 US Tax Reform 0.0 (272.9 ) 0.0 Other (4.5 ) (5.0 ) (5.1 ) Recorded tax expense $ 150.9 $ (50.7 ) $ 246.9 Effective tax rate 21.0 % -7.3 % 35.0 % |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Unrecognized tax benefits at January 1 $ 0.0 $ 0.0 $ 0.0 Gross increases - tax positions in prior period 5.1 0.0 0.0 Gross decreases - tax positions in prior period 0.0 0.0 0.0 Settlements 0.0 0.0 0.0 Lapse of statute of limitations (0.4 ) 0.0 0.0 Unrecognized tax benefits at December 31 $ 4.7 $ 0.0 $ 0.0 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans and Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity | Stock option transactions for the three years ended December 31, 2018 were as follows: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value 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 Granted 2.1 48.39 Exercised (1.8 ) 23.06 Cancelled (0.2 ) 43.64 Outstanding as of December 31, 2017 16.1 $ 33.11 Granted 2.0 50.77 Exercised (3.3 ) 23.07 Cancelled (0.1 ) 48.54 Outstanding as of December 31, 2018 14.7 $ 37.63 5.6 $ 412.5 Exercisable as of December 31, 2018 8.8 $ 29.82 4.0 $ 314.7 |
Summary of Information Relating to Options Outstanding and Exercisable | The following table summarizes information relating to options outstanding and exercisable as of December 31, 2018: Options Outstanding Options Exercisable Weighted Weighted Weighted Outstanding Average Average Exercisable Average Range of as of Remaining Exercise as of Exercise Exercise Prices 12/31/2018 Contractual Price 12/31/2018 Price $0.01 - $25.00 2.3 1.9 $ 17.04 2.2 $ 17.66 $25.01 - $30.00 1.4 3.4 $ 26.92 1.4 $ 26.92 $30.01 - $35.00 3.5 4.7 $ 32.73 3.5 $ 32.73 $35.01 - $40.00 0.0 5.8 $ 36.06 0.0 $ 36.06 $40.01 - $45.00 2.4 6.3 $ 41.88 1.7 $ 41.92 $45.01 - $50.00 1.4 6.7 $ 49.15 0.0 $ 46.64 $50.01 - $55.00 3.6 8.7 $ 51.93 0.0 $ 0.0 $55.01 - $60.00 0.1 9.8 $ 59.42 0.0 $ 0.0 14.7 5.6 $ 37.63 8.8 $ 29.82 |
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: 2018 2017 2016 Intrinsic Value of Stock Options Exercised $ 109.6 $ 48.0 $ 91.5 Stock Compensation Expense Related to Stock Option Awards $ 21.3 $ 15.7 $ 14.4 Issued Stock Options 2.0 2.1 2.1 Weighted Average Fair Value of Stock Options issued (per share) $ 9.79 $ 12.90 $ 7.57 Fair Value of Stock Options Issued $ 19.4 $ 27.8 $ 16.1 |
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: 2018 2017 2016 Risk-free interest rate 2.9 % 2.0 % 1.7 % Expected life in years 7.3 6.9 6.8 Expected volatility 17.1 % 16.7 % 17.0 % Dividend yield 1.7 % 1.4 % 1.5 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 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 ) Other comprehensive income before reclassifications 20.0 3.3 (7.9 ) 15.4 Amounts reclassified to consolidated statement of income (a)(b) 0.0 11.9 2.6 14.5 Tax benefit (expense) (1.6 ) (2.6 ) 1.7 (2.5 ) Other comprehensive income (loss) 18.4 12.6 (3.6 ) 27.4 Balance December 31, 2017 $ (31.6 ) $ (0.6 ) $ (4.2 ) $ (36.4 ) Adoption of new accounting pronouncements (Note 1) $ (0.3 ) $ 0.1 $ (0.4 ) $ (0.6 ) Other comprehensive income before reclassifications (10.6 ) 1.9 (9.7 ) (18.4 ) Amounts reclassified to consolidated statement of income (c) 0.0 0.0 0.0 0.0 Tax benefit (expense) 0.0 (0.5 ) 2.3 1.8 Other comprehensive income (loss) (10.6 ) 1.4 (7.4 ) (16.6 ) Balance December 31, 2018 $ (42.5 ) $ 0.9 $ (12.0 ) $ (53.6 ) (a) Amounts reclassified to cost of sales or selling, general and administrative expenses. (b) In connection with the termination of international defined benefit pension plans, $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales (c) Amounts reclassified to cost of sales or interest expense. |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2019 $ 18.7 $ 6.0 $ 24.7 2020 14.6 5.8 20.4 2021 12.2 5.7 17.9 2022 10.9 5.7 16.6 2023 6.4 6.0 12.4 2024 and thereafter 10.5 55.3 65.8 Total future minimum lease commitments $ 73.3 $ 84.5 $ 157.8 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following summarizes the balances and transactions between the Company and each of Armand and ArmaKleen, in which the Company holds a 50% ownership interest: Armand ArmaKleen Year Ended December 31, Year Ended December 31, 2018 2017 2016 2018 2017 2016 Purchases by Company $ 15.6 $ 20.5 $ 20.9 $ 0.0 $ 0.0 $ 0.0 Sales by Company $ 0.0 $ 0.0 $ 0.0 $ 1.2 $ 1.2 $ 1.0 Outstanding Accounts Receivable $ 0.8 $ 0.7 $ 0.5 $ 0.7 $ 0.8 $ 0.7 Outstanding Accounts Payable $ 1.0 $ 1.7 $ 1.7 $ 0.0 $ 0.0 $ 0.0 Administration & Management Oversight Services (1) $ 2.5 $ 2.4 $ 2.3 $ 2.1 $ 2.0 $ 2.0 (1) Billed by Company and recorded as a reduction of SG&A expenses. |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Consumer Consumer Domestic International SPD Corporate (1) As Net sales 2018 $ 3,129.9 $ 709.5 $ 306.5 $ 0.0 $ 4,145.9 2017 2,854.9 621.1 300.2 0.0 3,776.2 2016 2,677.8 525.2 290.1 0.0 3,493.1 Gross profit 2018 1,448.9 318.4 117.5 (44.0 ) 1,840.8 2017 1,380.1 281.0 101.3 (32.8 ) 1,729.6 2016 1,308.8 235.4 83.0 (36.6 ) 1,590.6 Marketing Expenses 2018 383.3 95.4 4.5 0.0 483.2 2017 364.1 85.7 4.4 0.0 454.2 2016 345.2 78.2 3.8 0.0 427.2 Selling, General and Administrative Expenses 2018 422.7 131.6 55.6 (44.0 ) 565.9 2017 366.6 158.5 50.4 (32.8 ) 542.7 2016 350.7 89.0 36.1 (36.6 ) 439.2 Income from Operations 2018 642.9 91.4 57.4 0.0 791.7 2017 649.4 36.8 46.5 0.0 732.7 2016 612.9 68.2 43.1 0.0 724.2 Equity in Earnings of Affiliates 2018 0.0 0.0 0.0 9.2 9.2 2017 0.0 0.0 0.0 10.8 10.8 2016 0.0 0.0 0.0 9.2 9.2 Income Before Income Taxes 2018 577.2 81.5 51.6 9.2 719.5 2017 606.4 32.0 43.5 10.8 692.7 2016 590.6 66.3 39.8 9.2 705.9 Identifiable Assets 2018 4,642.4 991.6 347.4 87.8 6,069.2 2017 4,543.2 1,112.4 268.5 90.7 6,014.8 2016 3,374.4 714.5 181.3 83.9 4,354.1 Capital Expenditures 2018 36.0 12.5 11.9 0.0 60.4 2017 30.6 8.9 5.5 0.0 45.0 2016 34.9 8.8 6.1 0.0 49.8 Depreciation & Amortization 2018 103.5 19.9 13.5 4.2 141.1 2017 95.5 16.8 10.3 2.8 125.4 2016 87.8 9.5 8.6 1.7 107.6 (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, 2018, December 31, 2017 and December 31, 2016 were as follows: 2018 2017 2016 Household Products $ 1,725.5 $ 1,640.0 $ 1,593.4 Personal Care Products 1,404.4 1,214.9 1,084.4 Total Consumer Domestic 3,129.9 2,854.9 2,677.8 Total Consumer International 709.5 621.1 525.2 Total SPD 306.5 300.2 290.1 Total Consolidated Net Sales $ 4,145.9 $ 3,776.2 $ 3,493.1 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | First Second Third Fourth Full Quarter Quarter Quarter Quarter Year 2018 Net Sales $ 1,006.0 $ 1,027.9 $ 1,037.6 $ 1,074.4 $ 4,145.9 Gross Profit 451.5 454.9 460.1 474.3 1,840.8 Income from Operations 220.3 173.8 204.2 193.4 791.7 Net Income 157.8 121.7 146.3 142.8 568.6 Net Income per Share-Basic $ 0.64 $ 0.50 $ 0.60 $ 0.58 $ 2.32 Net Income per Share-Diluted $ 0.63 $ 0.49 $ 0.58 $ 0.57 $ 2.27 2017 Net Sales $ 877.2 $ 898.0 $ 967.9 $ 1,033.1 $ 3,776.2 Gross Profit 399.3 410.4 438.5 481.4 1,729.6 Income from Operations 196.1 123.2 198.7 214.7 732.7 Net Income 131.5 72.9 133.4 405.6 743.4 Net Income per Share-Basic $ 0.52 $ 0.29 $ 0.53 $ 1.63 $ 2.97 Net Income per Share-Diluted $ 0.51 $ 0.29 $ 0.52 $ 1.60 $ 2.90 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Segment$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Apr. 01, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Excess tax benefit from operating activities | $ 0 | $ 0 | $ 30 | ||
Excess tax benefit on stock options exercised | $ 0 | 0 | 30 | ||
Number of reportable segments | Segment | 3 | ||||
Number of product | 3 | ||||
Additional proceed from sale of accounts receivable | $ 7.5 | ||||
Proceed from sale of accounts receivable | 112.9 | 105.4 | |||
Adjustments to reflect inventory at net realizable value | 17 | 12.8 | |||
Percentage of inventory determined using FIFO | 17.00% | ||||
Cumulative effect of pre-tax change in accounting principle of decrease to cost of goods sold | $ 4 | ||||
Research and development expenses | 89.7 | 70.8 | $ 63.2 | ||
Operating leases, Right of Use Assets | 55 | ||||
Operating lease liabilities | 57 | ||||
Deferred rent | 2 | ||||
Deferred Income Taxes | 576.4 | 561.2 | |||
Retained earnings | $ 3,832.6 | 3,479 | |||
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 | ||||
ASU 2016-09 | |||||
Significant Accounting Policies [Line Items] | |||||
Excess tax benefit from operating activities | $ 22.1 | $ 15.1 | |||
Excess tax benefit per share from operating activities | $ / shares | $ 0.08 | $ 0.05 | |||
Excess tax benefit on stock options exercised | $ 22.1 | $ 15.1 | |||
Excess tax benefit per share from financing activities | $ / shares | $ 0.08 | $ 0.05 | |||
Operating leases, Right of Use Assets | $ 107 | ||||
Operating lease liabilities | 109 | ||||
ASC 840 | |||||
Significant Accounting Policies [Line Items] | |||||
Operating leases, Right of Use Assets | 52 | ||||
Book value of property plant and equipment | 35 | ||||
Deferred Income Taxes | 4 | ||||
Retained earnings | $ 13 | ||||
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% |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted average common shares outstanding - basic | 245.5 | 250.6 | 257.6 |
Dilutive effect of stock options | 5.2 | 5.5 | 4.5 |
Weighted average common shares outstanding - diluted | 250.7 | 256.1 | 262.1 |
Antidilutive stock options outstanding | 1.9 | 3.2 | 1.4 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | $ 21.3 | $ 15.7 | $ 14.4 |
Cost of Sales | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | 2.6 | 1.8 | 1.9 |
Selling, General and Administrative Expenses | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | 22.3 | 16.3 | 14.1 |
Unvested Stock Options Fair Value | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock compensation expense | $ 24.9 | $ 18.1 | $ 16 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term borrowings | $ 1.8 | $ 270.9 |
Senior Notes | 2,105.3 | 2,103.4 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 234.6 | 95.8 |
Short-term borrowings | 1.8 | 270.9 |
Contingent Consideration | 23 | 23.2 |
Fair value adjustment (liability) asset related to hedged fixed rate debt instrument | (3) | (2.2) |
Fair Value | Fair Value, Inputs, Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 234.6 | 95.8 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value adjustment (liability) asset related to hedged fixed rate debt instrument | (3) | (2.2) |
Short-term borrowings | 1.8 | 270.9 |
Fair Value | Fair Value, Inputs, Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Contingent Consideration | 23 | 23.2 |
Interest Rate Swap Lock Agreement | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Lock Agreement | (7) | 0 |
Interest Rate Swap Lock Agreement | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Lock Agreement | (7) | 0 |
Floating Rate Senior notes due January 25, 2019 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 300 | 300 |
Floating Rate Senior notes due January 25, 2019 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 299.9 | 299.9 |
2.45% Senior notes due December 15, 2019 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 300 | 299.9 |
2.45% Senior notes due December 15, 2019 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 297.4 | 300.9 |
2.45% Senior notes due August 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 299.7 | 299.7 |
2.45% Senior notes due August 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 289.7 | 296.1 |
2.875% Senior notes due October 1, 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 399.9 | 399.8 |
2.875% Senior notes due October 1, 2022 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 393 | 400.2 |
3.15% Senior notes due August 1, 2027 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 424.6 | 424.6 |
3.15% Senior notes due August 1, 2027 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 400 | 417.8 |
3.95% Senior notes due August 1, 2047 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Notes | 397.2 | 397.1 |
3.95% Senior notes due August 1, 2047 | Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 363.7 | $ 397.4 |
Carrying Amounts and Estimate_2
Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Parenthetical) (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
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% |
2.45% Senior notes due August 1, 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
2.45% Senior notes due August 1, 2022 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
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% |
3.15% Senior notes due August 1, 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
3.15% Senior notes due August 1, 2027 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
3.95% Senior notes due August 1, 2047 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
3.95% Senior notes due August 1, 2047 | Fair Value, Inputs, Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
Derivative Instruments and Ri_3
Derivative Instruments and Risk Management - Additional Information (Details) - USD ($) $ in Millions | Dec. 09, 2014 | Dec. 31, 2018 | Dec. 31, 2017 |
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 | $ 146.6 | ||
Interest Rate Swap Lock Agreement | LIBOR-Based Rate | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Interest rate, spread | 0.756% | ||
Interest Rate Swap Lock Agreement | 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 Swap Lock Agreement | 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 | 64.00% | ||
Derivative hedging agreements covering diesel fuel requirements, year 2019 | 79.00% | ||
Derivative hedging agreements covering diesel fuel requirements, year 2020 | 50.00% | ||
Derivative hedging agreements covering exposure | 60.00% | ||
Derivative hedging agreements covering exposure, year 2019 | 60.00% | ||
Designated as Hedging Instrument | Interest Rate Swap Lock | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 250 | $ 0 | |
Designated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | 146.6 | 91.6 | |
Designated as Hedging Instrument | Interest Rate Swap Lock Agreement | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Derivative, Notional Amount | $ 300 | $ 300 |
Schedule of Notional Amounts (D
Schedule of Notional Amounts (Details) lb in Millions, gal in Millions, $ in Millions | Dec. 31, 2018USD ($)gallb | Dec. 31, 2017USD ($)gallb |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 146.6 | $ 91.6 |
Designated as Hedging Instrument | Interest Rate Swap Lock Agreement | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | 300 | 300 |
Designated as Hedging Instrument | Interest Rate Swap Lock | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 250 | $ 0 |
Designated as Hedging Instrument | Diesel fuel contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | gal | 8.2 | 3 |
Designated as Hedging Instrument | Commodities Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivatives, Notional Amount, Volume | lb | 94.7 | 28.3 |
Not Designated as Hedging Instrument | Equity derivatives | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 21 | $ 22.2 |
Components of Inventories (Deta
Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Finished Goods and Work in Process, Net of Reserves [Abstract] | ||
Raw materials and supplies | $ 84.4 | $ 85.6 |
Work in process | 34.1 | 30.8 |
Finished goods | 264.3 | 214.3 |
Total | $ 382.8 | $ 330.7 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | ||
Percentage of inventory determined using FIFO | 17.00% | |
Cumulative effect of pre-tax change in accounting principle of decrease to cost of goods sold | $ 4 |
Components of Property, Plant a
Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 1,267.2 | $ 1,226.4 |
Less accumulated depreciation and amortization | 669 | 618.7 |
Net PP&E | 598.2 | 607.7 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 27.8 | 27.9 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 301.3 | 300.3 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 716.7 | 699.3 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 97.9 | 95.8 |
Office equipment and other assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | 73.8 | 66.7 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross PP&E | $ 49.7 | $ 36.4 |
Depreciation and Interest Charg
Depreciation and Interest Charges on Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization on PP&E | $ 64.4 | $ 60.9 | $ 59.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | Mar. 08, 2018 | Aug. 07, 2017 | May 01, 2017 | Jan. 17, 2017 | Dec. 22, 2016 | Jan. 04, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 | ||||||
Passport Food Safety Solutions, Inc. | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Purchase price subject to working capital adjustment | $ 50 | ||||||||||||||||
Date of business acquisition | Mar. 8, 2018 | ||||||||||||||||
Contingent consideration arrangements, basis for amount | additional payment of up to $25.0 based on sales performance through 2020 | ||||||||||||||||
Payment to be made if certain operating performance is achieved | 7.3 | $ 7.3 | |||||||||||||||
Net Sales | 21 | ||||||||||||||||
Passport Food Safety Solutions, Inc. | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payment to be made if certain operating performance is achieved | $ 25 | 25 | $ 25 | ||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||||
Passport Food Safety Solutions, Inc. | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 10 years | ||||||||||||||||
Water Pik Inc | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Purchase price subject to working capital adjustment | $ 1,024.6 | ||||||||||||||||
Net Sales | $ 265 | 3,776.2 | 3,493.1 | ||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||||
Proceeds from underwritten public offering | $ 1,425 | ||||||||||||||||
Senior notes acquisitions completed date | Jul. 25, 2017 | ||||||||||||||||
Agro Bio Sciences Inc | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Purchase price subject to working capital adjustment | $ 75 | ||||||||||||||||
Date of business acquisition | May 1, 2017 | ||||||||||||||||
Contingent consideration arrangements, basis for amount | additional payment of up to $25.0 after 3 years based on sales performance. | ||||||||||||||||
Payment to be made if certain operating performance is achieved | 17.8 | 17.8 | $ 17.8 | 17.8 | |||||||||||||
Net Sales | 11 | ||||||||||||||||
Payment period for achieving certain operating performance target | 3 years | ||||||||||||||||
Increased and decreased estimate of contingent consideration liability | (7.5) | ||||||||||||||||
Agro Bio Sciences Inc | Updated Financial Performance Forecasts | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payment to be made if certain operating performance is achieved | 15.7 | $ 23.2 | 15.7 | 23.2 | |||||||||||||
Agro Bio Sciences Inc | Updated Financial Performance Forecasts | Selling, General and Administrative Expenses | Specialty Products | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Increased and decreased estimate of contingent consideration liability | $ 5.4 | ||||||||||||||||
Agro Bio Sciences Inc | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Payment to be made if certain operating performance is achieved | $ 25 | $ 25 | $ 25 | ||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||||
Agro Bio Sciences Inc | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 5 years | ||||||||||||||||
VIVISCAL | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Date of business acquisition | Jan. 17, 2017 | ||||||||||||||||
Net Sales | $ 44 | ||||||||||||||||
Purchase price | $ 160.3 | ||||||||||||||||
VIVISCAL | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 20 years | ||||||||||||||||
VIVISCAL | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||||
Anusol Acquisition | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Date of business acquisition | Dec. 22, 2016 | ||||||||||||||||
Net Sales | $ 24 | ||||||||||||||||
Purchase price | $ 130 | ||||||||||||||||
Anusol Acquisition | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 20 years | ||||||||||||||||
Anusol Acquisition | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 15 years | ||||||||||||||||
Spencer Forrest, Inc | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Date of business acquisition | Jan. 4, 2016 | ||||||||||||||||
Purchase price | $ 175.3 | ||||||||||||||||
Spencer Forrest, Inc | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 20 years | ||||||||||||||||
Spencer Forrest, Inc | Minimum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Average life of the amortizable intangible assets, years | 10 years |
Fair Values of Net Assets Acqui
Fair Values of Net Assets Acquired (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,992.9 | $ 1,958.9 | $ 1,444.1 |
Passport Food Safety Solutions, Inc. | |||
Business Acquisition [Line Items] | |||
Current assets | 3.3 | ||
Long-term assets | 1 | ||
Trade names and other intangibles | 28.5 | ||
Goodwill | 32.5 | ||
Current liabilities | (1.1) | ||
Long-term liabilities | (7.1) | ||
Contingent consideration | (7.3) | ||
Cash purchase price (net of cash acquired) | 49.8 | ||
Water Pik Inc | |||
Business Acquisition [Line Items] | |||
Current assets | 95.4 | ||
Property, plant and equipment | 28.4 | ||
Trade name (indefinite lived) | 644.7 | ||
Other intangible assets | 146.1 | ||
Goodwill | 425.8 | ||
Current liabilities | (31.8) | ||
Long-term liabilities | (284) | ||
Cash purchase price (net of cash acquired) | 1,024.6 | ||
Agro Bio Sciences Inc | |||
Business Acquisition [Line Items] | |||
Current assets | 2.5 | ||
Trade names and other intangibles | 37 | ||
Goodwill | 53.4 | ||
Contingent consideration | $ (17.8) | (17.8) | |
Cash purchase price (net of cash acquired) | 75.1 | ||
VIVISCAL | |||
Business Acquisition [Line Items] | |||
Current assets | 10.3 | ||
Trade names and other intangibles | 119.6 | ||
Goodwill | 36.9 | ||
Current liabilities | (6.5) | ||
Cash purchase price (net of cash acquired) | $ 160.3 | ||
Anusol Acquisition | |||
Business Acquisition [Line Items] | |||
Current assets | 0.5 | ||
Trade names and other intangibles | 91.7 | ||
Goodwill | 37.8 | ||
Cash purchase price (net of cash acquired) | 130 | ||
Spencer Forrest, Inc | |||
Business Acquisition [Line Items] | |||
Current assets | 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 |
Schedule of Unaudited Pro Forma
Schedule of Unaudited Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 07, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 | |
Net income per share - Basic | $ 0.58 | $ 0.60 | $ 0.50 | $ 0.64 | $ 1.63 | $ 0.53 | $ 0.29 | $ 0.52 | $ 2.32 | $ 2.97 | $ 1.78 | |
Net income per share - Diluted | $ 0.57 | $ 0.58 | $ 0.49 | $ 0.63 | $ 1.60 | $ 0.52 | $ 0.29 | $ 0.51 | $ 2.27 | $ 2.90 | $ 1.75 | |
Water Pik Inc | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net Sales | $ 265 | $ 3,776.2 | $ 3,493.1 | |||||||||
Net Income | $ 743.4 | $ 459 | ||||||||||
Net income per share - Basic | $ 2.97 | $ 1.78 | ||||||||||
Net income per share - Diluted | $ 2.90 | $ 1.75 | ||||||||||
Net Sales, Pro forma | $ 3,936.2 | $ 3,739.3 | ||||||||||
Net Income, Pro forma | $ 753.4 | $ 467.2 | ||||||||||
Net income per share - Basic, Pro forma | $ 3.01 | $ 1.81 | ||||||||||
Net income per share - Diluted, Pro forma | $ 2.94 | $ 1.78 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,250.7 | $ 1,223 |
Accumulated Amortization | (457.8) | (387.3) |
Net | $ 792.9 | 835.7 |
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 | $ 578.6 | 576.7 |
Accumulated Amortization | (175.2) | (145.2) |
Net | $ 403.4 | 431.5 |
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 | $ 506.3 | 480.5 |
Accumulated Amortization | (220.8) | (190.2) |
Net | $ 285.5 | 290.3 |
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 | $ 165.4 | 165.4 |
Accumulated Amortization | (61.5) | (51.7) |
Net | $ 103.9 | 113.7 |
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 | $ 0.4 | 0.4 |
Accumulated Amortization | (0.3) | (0.2) |
Net | $ 0.1 | $ 0.2 |
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, 2018 | Dec. 31, 2017 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Value, Trade names | $ 1,481.1 | $ 1,484.8 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization expense of intangible assets | $ 71.2 | $ 61 | $ 46 |
Estimated amortization expense, 2019 | 70 | ||
Carrying value | 1,250.7 | 1,223 | |
Consumer Domestic Tradename | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Carrying value | $ 22 | ||
Amortization Period (Years) | 20 years | ||
Minimum | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2020 | 68 | ||
Estimated amortization expense, 2021 | 68 | ||
Estimated amortization expense, 2022 | 68 | ||
Estimated amortization expense, 2023 | 68 | ||
Estimated amortization expense, 2024 | $ 68 | ||
Amortization Period (Years) | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2020 | $ 59 | ||
Estimated amortization expense, 2021 | 59 | ||
Estimated amortization expense, 2022 | 59 | ||
Estimated amortization expense, 2023 | 59 | ||
Estimated amortization expense, 2024 | $ 59 | ||
Amortization Period (Years) | 20 years |
Carrying Amount of Goodwill (De
Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
Beginning balance | $ 1,958.9 | $ 1,444.1 |
Other | 0.2 | |
Ending balance | 1,992.9 | 1,958.9 |
Water Pik Inc | ||
Goodwill [Line Items] | ||
Beginning balance | 425.8 | |
Goodwill acquired during the period | 424.3 | |
Goodwill adjustment | 1.5 | |
Ending balance | 425.8 | |
Agro Bio Sciences Inc | ||
Goodwill [Line Items] | ||
Beginning balance | 53.4 | |
Goodwill acquired during the period | 53.4 | |
Ending balance | 53.4 | |
VIVISCAL | ||
Goodwill [Line Items] | ||
Beginning balance | 36.9 | |
Goodwill acquired during the period | 36.9 | |
Ending balance | 36.9 | |
Passport Food Safety Solutions, Inc. | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 32.5 | |
Ending balance | 32.5 | |
Consumer Domestic | ||
Goodwill [Line Items] | ||
Beginning balance | 1,632.1 | 1,280.1 |
Other | 0 | |
Ending balance | 1,633.2 | 1,632.1 |
Consumer Domestic | Water Pik Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 322.5 | |
Goodwill adjustment | 1.1 | |
Consumer Domestic | Agro Bio Sciences Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Consumer Domestic | VIVISCAL | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 29.5 | |
Consumer Domestic | Passport Food Safety Solutions, Inc. | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Consumer International | ||
Goodwill [Line Items] | ||
Beginning balance | 223.3 | 113.9 |
Other | 0.2 | |
Ending balance | 223.7 | 223.3 |
Consumer International | Water Pik Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 101.8 | |
Goodwill adjustment | 0.4 | |
Consumer International | Agro Bio Sciences Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Consumer International | VIVISCAL | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 7.4 | |
Consumer International | Passport Food Safety Solutions, Inc. | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Specialty Products | ||
Goodwill [Line Items] | ||
Beginning balance | 103.5 | 50.1 |
Other | 0 | |
Ending balance | 136 | 103.5 |
Specialty Products | Water Pik Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 0 | |
Goodwill adjustment | 0 | |
Specialty Products | Agro Bio Sciences Inc | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | 53.4 | |
Specialty Products | VIVISCAL | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | $ 0 | |
Specialty Products | Passport Food Safety Solutions, Inc. | ||
Goodwill [Line Items] | ||
Goodwill acquired during the period | $ 32.5 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Trade accounts payable | $ 430.2 | $ 398.9 |
Accrued marketing and promotion costs | 116.2 | 108.4 |
Accrued wages and related benefit costs | 84.2 | 61.8 |
Other accrued current liabilities | 94.5 | 90 |
Total | $ 725.1 | $ 659.1 |
Summary of Short-Term Borrowing
Summary of Short-Term Borrowings and Long-Term Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term borrowings | ||
Commercial paper issuances | $ 0 | $ 268,700,000 |
Various debt due to international banks | 1,800,000 | 2,200,000 |
Total short-term borrowings | 1,800,000 | 270,900,000 |
Long-term debt | ||
Debt issuance costs, net | (13,100,000) | (15,500,000) |
Fair value adjustment asset (liability) related to hedged fixed rate debt instrument | (3,000,000) | (2,200,000) |
Total long-term debt | 2,105,300,000 | 2,103,400,000 |
Less: current maturities | (596,500,000) | 0 |
Net long-term debt | 1,508,800,000 | 2,103,400,000 |
Floating Rate Senior notes due January 25, 2019 | ||
Long-term debt | ||
Senior notes | 300,000,000 | 300,000,000 |
2.45% Senior notes due December 15, 2019 | ||
Long-term debt | ||
Senior notes | 300,000,000 | 300,000,000 |
Less: Discount | 0 | (100,000) |
2.45% Senior notes due August 1, 2022 | ||
Long-term debt | ||
Senior notes | 300,000,000 | 300,000,000 |
Less: Discount | (300,000) | (300,000) |
2.875% Senior notes due October 1, 2022 | ||
Long-term debt | ||
Senior notes | 400,000,000 | 400,000,000 |
Less: Discount | (100,000) | (200,000) |
3.15% Senior notes due August 1, 2027 | ||
Long-term debt | ||
Senior notes | 425,000,000 | 425,000,000 |
Less: Discount | (400,000) | (400,000) |
3.95% Senior notes due August 1, 2047 | ||
Long-term debt | ||
Senior notes | 400,000,000 | 400,000,000 |
Less: Discount | $ (2,800,000) | $ (2,900,000) |
Summary of Short-Term Borrowi_2
Summary of Short-Term Borrowings and Long-Term Debt (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 |
2.45% Senior notes due August 1, 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 2.45% | 2.45% |
Maturity date of debt | Aug. 1, 2022 | Aug. 1, 2022 |
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 |
3.15% Senior notes due August 1, 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 3.15% | 3.15% |
Maturity date of debt | Aug. 1, 2027 | Aug. 1, 2027 |
3.95% Senior notes due August 1, 2047 | ||
Debt Instrument [Line Items] | ||
Interest rate of debt | 3.95% | 3.95% |
Maturity date of debt | Aug. 1, 2047 | Aug. 1, 2047 |
Floating Rate Senior notes due January 25, 2019 | ||
Debt Instrument [Line Items] | ||
Maturity date of debt | Jan. 25, 2019 | Jan. 25, 2019 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt - Additional Information (Details) - USD ($) | Jan. 25, 2019 | Jul. 25, 2017 | Dec. 09, 2014 | Sep. 26, 2012 | Sep. 30, 2011 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 29, 2018 | Feb. 23, 2017 |
Debt Instrument [Line Items] | ||||||||||
Maximum leverage ratio related to material acquisition | 4.25 | |||||||||
Maximum leverage ratio related to additional material acquisition | 4.25 | |||||||||
Long-term debt borrowings | $ 0 | $ 1,621,300,000 | $ 0 | |||||||
Repayments of long-term debt | 0 | 200,000,000 | $ 0 | |||||||
Commercial paper issuances | $ 0 | $ 268,700,000 | ||||||||
Interest Rate Swap Lock Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, swap | 2.45% | |||||||||
Floating Rate Senior notes due January 25, 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Jan. 25, 2019 | Jan. 25, 2019 | ||||||||
2.45% Senior notes due August 1, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Aug. 1, 2022 | Aug. 1, 2022 | ||||||||
Interest rate of debt | 2.45% | 2.45% | ||||||||
3.15% Senior notes due August 1, 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Aug. 1, 2027 | Aug. 1, 2027 | ||||||||
Interest rate of debt | 3.15% | 3.15% | ||||||||
3.95% Senior notes due August 1, 2047 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Aug. 1, 2047 | Aug. 1, 2047 | ||||||||
Interest rate of debt | 3.95% | 3.95% | ||||||||
$1.425 M Senior Notes | Water Pik Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt borrowings | $ 1,425,000,000 | |||||||||
Floating rate senior notes, description | three-month U.S. Dollar London Interbank Offered Rate (“LIBOR”) plus 0.15% | |||||||||
Repayments of debt | 200,000,000 | |||||||||
$1.425 M Senior Notes | Water Pik Inc | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | $ 300,000,000 | |||||||||
$1.425 M Senior Notes | Floating Rate Senior notes due January 25, 2019 | Water Pik Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 300,000,000 | |||||||||
$1.425 M Senior Notes | 2.45% Senior notes due August 1, 2022 | Water Pik Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 300,000,000 | |||||||||
Interest rate of debt | 2.45% | |||||||||
$1.425 M Senior Notes | 3.15% Senior notes due August 1, 2027 | Water Pik Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 425,000,000 | |||||||||
Interest rate of debt | 3.15% | |||||||||
$1.425 M Senior Notes | 3.95% Senior notes due August 1, 2047 | Water Pik Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 400,000,000 | |||||||||
Interest rate of debt | 3.95% | |||||||||
2.45% Senior notes due December 15, 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Dec. 15, 2019 | |||||||||
Aggregate principal amount | $ 300,000,000 | |||||||||
Interest rate of debt | 2.45% | |||||||||
Interest payment frequency | payable semi-annually, on each June 15 and December 1 | |||||||||
2.45% Senior notes due December 15, 2019 | Interest Rate Swap Lock Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Dec. 15, 2019 | |||||||||
Interest rate of debt | 2.45% | |||||||||
2.875% Senior notes due October 1, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of debt | Oct. 1, 2022 | |||||||||
Aggregate principal amount | $ 400,000,000 | |||||||||
Interest rate of debt | 2.875% | |||||||||
Interest payment frequency | payable semi-annually, on each April 1 and October 1 | |||||||||
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 Swap Lock Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, spread | 0.756% | |||||||||
LIBOR-Based Rate | $1.425 M Senior Notes | Water Pik Inc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate | 0.15% | |||||||||
LIBOR-Based Rate | 2.45% Senior notes due December 15, 2019 | Interest Rate Swap Lock Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, spread | 0.756% | |||||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Customary fees, including commitment fee | 0.07% | |||||||||
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% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Customary fees, including commitment fee | 0.175% | |||||||||
Consolidated funded indebtedness to EBITDA ratio | 3.75 | |||||||||
Maximum | LIBOR-Based Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate | 1.50% | |||||||||
Maximum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate | 0.50% | |||||||||
Commercial Paper | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||
Weighted average interest rate | 1.60% | |||||||||
Notes maximum maturity days | 397 days | |||||||||
Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||
Line of credit facility, current borrowing capacity | 1,000,000,000 | |||||||||
Additional borrowing capacity | $ 600,000,000 | |||||||||
Maturity date of debt | Mar. 29, 2023 |
Components of Income Before Tax
Components of Income Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 671.8 | $ 683.2 | $ 665 |
Foreign | 47.7 | 9.5 | 40.9 |
Income before Income Taxes | $ 719.5 | $ 692.7 | $ 705.9 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal | $ 103.4 | $ 146.7 | $ 183.4 |
State, Current | 23.4 | 29 | 27.2 |
Foreign, Current | 13 | 11.2 | 11.4 |
Current income tax expense (benefit) | 139.8 | 186.9 | 222 |
U.S. federal, Deferred | 5.4 | (235) | 19.2 |
State, Deferred | 4.6 | 3.8 | 4.1 |
Foreign, Deferred | 1.1 | (6.4) | 1.6 |
Deferred income tax expense (benefit) | 11.1 | (237.6) | 24.9 |
Recorded tax expense | $ 150.9 | $ (50.7) | $ 246.9 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Accounts receivable | $ 3.4 | $ 3.7 |
Deferred compensation | 44.8 | 45.5 |
Pension, postretirement and postemployment benefits | 5.8 | 7.5 |
Other | 22.1 | 23.4 |
Tax credit carryforwards/other tax attributes | 10.7 | 3.9 |
International operating loss carryforwards | 10.8 | 11.6 |
Total gross deferred tax assets | 97.6 | 95.6 |
Valuation allowances | (24.5) | (23.5) |
Total deferred tax assets | 73.1 | 72.1 |
Goodwill | (165.6) | (153.6) |
Trade names and other intangibles | (420.1) | (411.8) |
Property, plant and equipment | (62.1) | (65.8) |
Total deferred tax liabilities | (647.8) | (631.2) |
Net deferred tax liability | (574.7) | (559.1) |
Long term net deferred tax asset | 1.7 | 2.1 |
Long term net deferred tax liability | $ (576.4) | $ (561.2) |
Effective Tax Rate Reconciliati
Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Statutory rate | 21.00% | 35.00% | 35.00% | |
Tax that would result from use of the federal statutory rate | $ 151.1 | $ 242.4 | $ 247.1 | |
State and local income tax, net of federal effect | 22.1 | 21.4 | 20.3 | |
Varying tax rates of foreign affiliates | 3.3 | (0.1) | (4.1) | |
Benefit from domestic manufacturing deduction | 0 | (15.2) | (14.2) | |
Valuation Allowances | 1 | (6.2) | 2.9 | |
Stock Options Exercised | (22.1) | (15.1) | 0 | |
US Tax Reform | $ (273) | 0 | (272.9) | 0 |
Other | (4.5) | (5) | (5.1) | |
Recorded tax expense | $ 150.9 | $ (50.7) | $ 246.9 | |
Effective tax rate | 21.00% | (7.30%) | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||||
Corporate income tax rates | 21.00% | 35.00% | 35.00% | ||
Repatriation of foreign cash | $ 150,000,000 | ||||
Reduction of tax expense to deferred tax assets liabilities | $ 273,000,000 | 0 | $ 272,900,000 | $ 0 | |
Valuation allowance | 11,200,000 | 10,300,000 | 11,200,000 | ||
Deferred tax assets, valuation allowances | 23,500,000 | 24,500,000 | 23,500,000 | ||
Undistributed earnings of foreign subsidiaries | 0 | ||||
Uncertain tax positions or unrecognized tax benefits | 0 | 4,700,000 | 0 | $ 0 | $ 0 |
Uncertain tax positions that would affect the effective tax rate | 3,900,000 | ||||
Uncertain tax positions that would reult in adjustments to deferred taxes | 800,000 | ||||
Unrecognized Tax Benefits, possible decrease | 400,000 | ||||
Interest expense associated with uncertain tax positions | 200,000 | ||||
Unrecognized Tax Benefits, accrued interest expense | 300,000 | ||||
Natronx Technologies LLC | |||||
Income Tax [Line Items] | |||||
Deferred tax assets, valuation allowances | $ 7,700,000 | ||||
Quimica Geral Do Nordeste Sa | |||||
Income Tax [Line Items] | |||||
Deferred tax assets, valuation allowances | 2,400,000 | 1,900,000 | 2,400,000 | ||
Foreign Tax Authority | |||||
Income Tax [Line Items] | |||||
Loss carryforward | 34,000,000 | ||||
Loss carryforward subject to expiration | $ 600,000 | ||||
Loss carryforward expiration date | Dec. 31, 2023 | ||||
Foreign Tax Authority | Unrealized Foreign Tax Credit Carryforwards | |||||
Income Tax [Line Items] | |||||
Deferred tax assets, valuation allowances | $ 9,900,000 | $ 12,300,000 | $ 9,900,000 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at January 1 | $ 0 | $ 0 | $ 0 |
Gross increases - tax positions in prior period | 5.1 | 0 | 0 |
Gross decreases - tax positions in prior period | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse of statute of limitations | (0.4) | 0 | 0 |
Unrecognized tax benefits at December 31 | $ 4.7 | $ 0 | $ 0 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans and Other Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)CompensationPlanshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)ParticipantsEmployee | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of compensation plans | CompensationPlan | 4 | ||
Compensation cost not yet recognized | $ 15.3 | ||
Period of amortization expected to be recognized | 3 years | ||
Non-cash compensation expense | $ 23.3 | $ 18.1 | $ 16 |
Excess tax benefits on stock options exercised | 22.1 | 15.1 | 30 |
Restricted shares, stock compensation expense | 1.6 | ||
Deferred Compensation Plans | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock compensation, liability | 92.7 | 90.6 | |
Amounts charged to earnings | $ 2.4 | 1.9 | $ 2.3 |
Shares held in rabbi trust | shares | 280,000 | ||
Deferred Compensation Plans | Other Assets | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Funded balances | $ 79.4 | $ 81.4 | |
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% | ||
Pension Plan, Defined Benefit | Foreign Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Defined benefit plan, number of plan participants | Participants | 336 | ||
Defined benefit plan, plan participants, number of active employees | Employee | 53 | ||
One time termination payment to purchase annuities | $ 7.5 | ||
Pension Plan, Defined Benefit | Foreign Plan | Consumer International | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
One-time settlement expense | 39.2 | ||
One-time settlement expense, net of tax | $ 31.5 | ||
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 | ||
Restricted Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock compensation, liability | $ 1.6 | ||
Stock compensation, unamortized amount | $ 3.1 |
Summary of Option Activity (Det
Summary of Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Beginning Balance, Options | 16.1 | 16 | 17.2 |
Granted, Options | 2 | 2.1 | 2.1 |
Exercised, Options | (3.3) | (1.8) | (3) |
Cancelled, Options | (0.1) | (0.2) | (0.3) |
Ending Balance, Options | 14.7 | 16.1 | 16 |
Exercisable as of December 31, 2017, Options | 8.8 | ||
Beginning Balance, Weighted-Average Exercise Price | $ 33.11 | $ 30.06 | $ 25.89 |
Granted, Weighted-Average Exercise Price | 50.77 | 48.39 | 46.75 |
Exercised, Weighted-Average Exercise Price | 23.07 | 23.06 | 16.96 |
Cancelled, Weighted-Average Exercise Price | 48.54 | 43.64 | 39.60 |
Ending Balance, Weighted-Average Exercise Price | 37.63 | $ 33.11 | $ 30.06 |
Exercisable as of December 31, 2017, Weighted-Average Exercise Price | $ 29.82 | ||
Outstanding as of December 31, 2017, Weighted-Average Remaining Contractual Term, years | 5 years 7 months 6 days | ||
Exercisable as of December 31, 2017, Weighted-Average Remaining Contractual Term, years | 4 years | ||
Outstanding as of December 31, 2017, Aggregate Intrinsic Value | $ 412.5 | ||
Exercisable as of December 31, 2017, Aggregate Intrinsic Value | $ 314.7 |
Summary of Information Relating
Summary of Information Relating to Options Outstanding and Exercisable (Details) - $ / shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding as of 12/31/2017 | 14.7 | |||
Weighted Average Remaining Contractual Life | 5 years 7 months 6 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 37.63 | $ 33.11 | $ 30.06 | $ 25.89 |
Exercisable as of 12/31/2017 | 8.8 | |||
Options Exercisable Weighted-Average Exercise Price | $ 29.82 | |||
$0.01 - $25.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 0.01 | |||
Range of Exercise Prices, Upper Limit | $ 25 | |||
Outstanding as of 12/31/2017 | 2.3 | |||
Weighted Average Remaining Contractual Life | 1 year 10 months 24 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 17.04 | |||
Exercisable as of 12/31/2017 | 2.2 | |||
Options Exercisable Weighted-Average Exercise Price | $ 17.66 | |||
$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 12/31/2017 | 1.4 | |||
Weighted Average Remaining Contractual Life | 3 years 4 months 24 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 26.92 | |||
Exercisable as of 12/31/2017 | 1.4 | |||
Options Exercisable Weighted-Average Exercise Price | $ 26.92 | |||
$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 12/31/2017 | 3.5 | |||
Weighted Average Remaining Contractual Life | 4 years 8 months 12 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 32.73 | |||
Exercisable as of 12/31/2017 | 3.5 | |||
Options Exercisable Weighted-Average Exercise Price | $ 32.73 | |||
$35.01 - $40.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 35.01 | |||
Range of Exercise Prices, Upper Limit | $ 40 | |||
Outstanding as of 12/31/2017 | 0 | |||
Weighted Average Remaining Contractual Life | 5 years 9 months 18 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 36.06 | |||
Exercisable as of 12/31/2017 | 0 | |||
Options Exercisable Weighted-Average Exercise Price | $ 36.06 | |||
$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 12/31/2017 | 2.4 | |||
Weighted Average Remaining Contractual Life | 6 years 3 months 18 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 41.88 | |||
Exercisable as of 12/31/2017 | 1.7 | |||
Options Exercisable Weighted-Average Exercise Price | $ 41.92 | |||
$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 12/31/2017 | 1.4 | |||
Weighted Average Remaining Contractual Life | 6 years 8 months 12 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 49.15 | |||
Exercisable as of 12/31/2017 | 0 | |||
Options Exercisable Weighted-Average Exercise Price | $ 46.64 | |||
$50.01 - $55.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 50.01 | |||
Range of Exercise Prices, Upper Limit | $ 55 | |||
Outstanding as of 12/31/2017 | 3.6 | |||
Weighted Average Remaining Contractual Life | 8 years 8 months 12 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 51.93 | |||
Exercisable as of 12/31/2017 | 0 | |||
Options Exercisable Weighted-Average Exercise Price | $ 0 | |||
$55.01 - $60.00 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Range of Exercise Prices, Lower Limit | 55.01 | |||
Range of Exercise Prices, Upper Limit | $ 60 | |||
Outstanding as of 12/31/2017 | 0.1 | |||
Weighted Average Remaining Contractual Life | 9 years 9 months 18 days | |||
Options Outstanding Weighted-Average Exercise Price | $ 59.42 | |||
Exercisable as of 12/31/2017 | 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Intrinsic Value of Stock Options Exercised | $ 109.6 | $ 48 | $ 91.5 |
Stock Compensation Expense Related to Stock Option Awards | $ 21.3 | $ 15.7 | $ 14.4 |
Issued Stock Options | 2 | 2.1 | 2.1 |
Weighted Average Fair Value of Stock Options issued (per share) | $ 9.79 | $ 12.90 | $ 7.57 |
Fair Value of Stock Options Issued | $ 19.4 | $ 27.8 | $ 16.1 |
Assumptions Used in Valuation o
Assumptions Used in Valuation of Issued Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 2.90% | 2.00% | 1.70% |
Expected life in years | 7 years 3 months 18 days | 6 years 10 months 24 days | 6 years 9 months 18 days |
Expected volatility | 17.10% | 16.70% | 17.00% |
Dividend yield | 1.70% | 1.40% | 1.50% |
Share Repurchases - Additional
Share Repurchases - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 01, 2017 | |
Accelerated Share Repurchases [Line Items] | |||||
Stock repurchase program, authorized amount | $ 500 | ||||
Accelerated share repurchase contract amount | $ 200 | ||||
Stock purchases, shares | 4.1 | ||||
Payment for share repurchase | $ 200 | $ 200 | $ 400 | $ 400 | |
Evergreen Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Payment for share repurchase | 110 | ||||
Repurchase Program | |||||
Accelerated Share Repurchases [Line Items] | |||||
Payment for share repurchase | $ 90 | ||||
Remaining amount for share repurchase program | $ 310 |
Components of Changes in Accumu
Components of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning Balance | $ 2,218 | $ 1,977.9 | $ 2,023.2 | |||
Adoption of new accounting pronouncements (Note 1) | (0.6) | |||||
Other comprehensive income before reclassifications | (18.4) | 15.4 | (20.2) | |||
Amounts reclassified to consolidated statement of income | 0 | [1] | 14.5 | [2],[3] | (0.1) | [2] |
Tax benefit (expense) | 1.8 | (2.5) | 2.4 | |||
Other comprehensive (loss) income | (16.6) | 27.4 | (17.9) | |||
Ending Balance | 2,453.8 | 2,218 | 1,977.9 | |||
Foreign Currency Adjustments | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning Balance | (31.6) | (50) | (38.5) | |||
Adoption of new accounting pronouncements (Note 1) | (0.3) | |||||
Other comprehensive income before reclassifications | (10.6) | 20 | (12.1) | |||
Amounts reclassified to consolidated statement of income | 0 | [1] | 0 | [2],[3] | 0 | [2] |
Tax benefit (expense) | 0 | (1.6) | 0.6 | |||
Other comprehensive (loss) income | (10.6) | 18.4 | (11.5) | |||
Ending Balance | (42.5) | (31.6) | (50) | |||
Defined Benefit Plans | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning Balance | (0.6) | (13.2) | (11.5) | |||
Adoption of new accounting pronouncements (Note 1) | 0.1 | |||||
Other comprehensive income before reclassifications | 1.9 | 3.3 | (2.2) | |||
Amounts reclassified to consolidated statement of income | 0 | [1] | 11.9 | [2],[3] | 0 | [2] |
Tax benefit (expense) | (0.5) | (2.6) | 0.5 | |||
Other comprehensive (loss) income | 1.4 | 12.6 | (1.7) | |||
Ending Balance | 0.9 | (0.6) | (13.2) | |||
Derivative Agreements | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning Balance | (4.2) | (0.6) | 4.1 | |||
Adoption of new accounting pronouncements (Note 1) | (0.4) | |||||
Other comprehensive income before reclassifications | (9.7) | (7.9) | (5.9) | |||
Amounts reclassified to consolidated statement of income | 0 | [1] | 2.6 | [2],[3] | (0.1) | [2] |
Tax benefit (expense) | 2.3 | 1.7 | 1.3 | |||
Other comprehensive (loss) income | (7.4) | (3.6) | (4.7) | |||
Ending Balance | (12) | (4.2) | (0.6) | |||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning Balance | (36.4) | (63.8) | (45.9) | |||
Other comprehensive (loss) income | (16.6) | 27.4 | (17.9) | |||
Ending Balance | $ (53.6) | $ (36.4) | $ (63.8) | |||
[1] | (c)Amounts reclassified to cost of sales or interest expense. | |||||
[2] | Amounts reclassified to cost of sales or selling, general and administrative expenses. | |||||
[3] | In connection with the termination of international defined benefit pension plans, $11.9 was reclassified to SG&A. All other amounts were reclassified to Cost of Sales |
Components of Changes in Accu_2
Components of Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
International Defined Benefit Pension Plans | Selling, General and Administrative Expenses | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Amounts loss (gain) reclassified to consolidated statement of income | $ (11.9) |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)T | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 08, 2018USD ($) | May 01, 2017USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||||
Rent expense | $ 24.5 | $ 24.5 | $ 18.8 | |||
Interest expense associated with financing lease | 3.8 | |||||
Depreciation expense associated with financing lease | $ 2.5 | |||||
Annual purchase commitment, in tons | T | 240,000 | |||||
Commitments | $ 262.5 | |||||
Outstanding guarantees and letters of credit | 5.2 | |||||
Estimated minimum compensatory punitive damages | 20 | |||||
Agro Bio Sciences Inc | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Payment to be made if certain operating performance is achieved | $ 17.8 | $ 17.8 | 17.8 | |||
Payment year of achieving certain operating performance | 2,019 | |||||
Increased and decreased estimate of contingent consideration liability | $ (7.5) | |||||
Remeasurement period for liability assessed at each end of balance sheet | 3 years | |||||
Passport Food Safety Solutions, Inc. | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Payment to be made if certain operating performance is achieved | $ 7.3 | |||||
Payment year of achieving certain operating performance | 2,020 | |||||
Maximum | Agro Bio Sciences Inc | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Payment to be made if certain operating performance is achieved | $ 25 | $ 25 | ||||
Maximum | Passport Food Safety Solutions, Inc. | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Payment to be made if certain operating performance is achieved | 25 | $ 25 | ||||
Updated Sales Forecasts | Agro Bio Sciences Inc | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Payment to be made if certain operating performance is achieved | 23.2 | 15.7 | $ 23.2 | |||
Updated Sales Forecasts | Selling, General and Administrative Expenses | Specialty Products | Agro Bio Sciences Inc | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Increased and decreased estimate of contingent consideration liability | $ 5.4 | $ (7.5) |
Future Minimum Rental Commitmen
Future Minimum Rental Commitments Under Non-Cancelable Long-Term Operating Leases And Capital Lease (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating lease | |
2,019 | $ 18.7 |
2,020 | 14.6 |
2,021 | 12.2 |
2,022 | 10.9 |
2,023 | 6.4 |
2024 and thereafter | 10.5 |
Total future minimum lease commitments | 73.3 |
Financing leases | |
2,019 | 6 |
2,020 | 5.8 |
2,021 | 5.7 |
2,022 | 5.7 |
2,023 | 6 |
2024 and thereafter | 55.3 |
Total future minimum lease commitments | 84.5 |
Total | |
2,019 | 24.7 |
2,020 | 20.4 |
2,021 | 17.9 |
2,022 | 16.6 |
2,023 | 12.4 |
2024 and thereafter | 65.8 |
Total future minimum lease commitments | $ 157.8 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
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% |
Balance and Transactions Betwee
Balance and Transactions Between Company and Related Party (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Armand Products Company | ||||
Related Party Transaction [Line Items] | ||||
Purchases by Company | $ 15.6 | $ 20.5 | $ 20.9 | |
Sales by Company | 0 | 0 | 0 | |
Outstanding Accounts Receivable | 0.8 | 0.7 | 0.5 | |
Outstanding Accounts Payable | 1 | 1.7 | 1.7 | |
Administration & Management Oversight Services | [1] | 2.5 | 2.4 | 2.3 |
ArmaKleen Company | ||||
Related Party Transaction [Line Items] | ||||
Purchases by Company | 0 | 0 | 0 | |
Sales by Company | 1.2 | 1.2 | 1 | |
Outstanding Accounts Receivable | 0.7 | 0.8 | 0.7 | |
Outstanding Accounts Payable | 0 | 0 | 0 | |
Administration & Management Oversight Services | [1] | $ 2.1 | $ 2 | $ 2 |
[1] | Billed by Company and recorded as a reduction of SG&A expenses. |
Segments - Additional Informati
Segments - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)SegmentCustomer | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($)Customer | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | Segment | 3 | ||||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 |
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 | 36.00% | 36.00% | 35.00% | ||||||||
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 | 23.00% | 24.00% | 24.00% | ||||||||
Customer name | Walmart Inc. and its affiliates | ||||||||||
UNITED STATES | Geographic Concentration Risk | Sales Revenue, Goods, Net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 82.00% | 83.00% | 84.00% | ||||||||
UNITED STATES | Geographic Concentration Risk | Long Lived Assets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 95.00% | 95.00% | 98.00% | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 5.7 | $ 4.5 | $ 3.4 | ||||||||
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% |
Selected Financial Information
Selected Financial Information Relating To Company's Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 | ||
Gross profit | 474.3 | 460.1 | 454.9 | 451.5 | 481.4 | 438.5 | 410.4 | 399.3 | 1,840.8 | 1,729.6 | 1,590.6 | ||
Marketing Expenses | 483.2 | 454.2 | 427.2 | ||||||||||
Selling, General and Administrative Expenses | 565.9 | 542.7 | 439.2 | ||||||||||
Income from Operations | 193.4 | $ 204.2 | $ 173.8 | $ 220.3 | 214.7 | $ 198.7 | $ 123.2 | $ 196.1 | 791.7 | 732.7 | 724.2 | ||
Equity in Earnings (Losses) of Affiliates | $ 9.2 | 9.2 | 10.8 | 9.2 | |||||||||
Income Before Income Taxes | 719.5 | 692.7 | 705.9 | ||||||||||
Identifiable Assets | 6,069.2 | 6,014.8 | 4,354.1 | 6,069.2 | 6,014.8 | 4,354.1 | |||||||
Capital Expenditures | 60.4 | 45 | 49.8 | ||||||||||
Depreciation & Amortization | 141.1 | 125.4 | 107.6 | ||||||||||
Operating Segments | Consumer Domestic | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 3,129.9 | 2,854.9 | 2,677.8 | ||||||||||
Gross profit | 1,448.9 | 1,380.1 | 1,308.8 | ||||||||||
Marketing Expenses | 383.3 | 364.1 | 345.2 | ||||||||||
Selling, General and Administrative Expenses | 422.7 | 366.6 | 350.7 | ||||||||||
Income from Operations | 642.9 | 649.4 | 612.9 | ||||||||||
Equity in Earnings (Losses) of Affiliates | 0 | 0 | 0 | ||||||||||
Income Before Income Taxes | 577.2 | 606.4 | 590.6 | ||||||||||
Identifiable Assets | 4,642.4 | 4,543.2 | 3,374.4 | 4,642.4 | 4,543.2 | 3,374.4 | |||||||
Capital Expenditures | 36 | 30.6 | 34.9 | ||||||||||
Depreciation & Amortization | 103.5 | 95.5 | 87.8 | ||||||||||
Operating Segments | Consumer International | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 709.5 | 621.1 | 525.2 | ||||||||||
Gross profit | 318.4 | 281 | 235.4 | ||||||||||
Marketing Expenses | 95.4 | 85.7 | 78.2 | ||||||||||
Selling, General and Administrative Expenses | 131.6 | 158.5 | 89 | ||||||||||
Income from Operations | 91.4 | 36.8 | 68.2 | ||||||||||
Equity in Earnings (Losses) of Affiliates | 0 | 0 | 0 | ||||||||||
Income Before Income Taxes | 81.5 | 32 | 66.3 | ||||||||||
Identifiable Assets | 991.6 | 1,112.4 | 714.5 | 991.6 | 1,112.4 | 714.5 | |||||||
Capital Expenditures | 12.5 | 8.9 | 8.8 | ||||||||||
Depreciation & Amortization | 19.9 | 16.8 | 9.5 | ||||||||||
Operating Segments | Specialty Products | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 306.5 | 300.2 | 290.1 | ||||||||||
Gross profit | 117.5 | 101.3 | 83 | ||||||||||
Marketing Expenses | 4.5 | 4.4 | 3.8 | ||||||||||
Selling, General and Administrative Expenses | 55.6 | 50.4 | 36.1 | ||||||||||
Income from Operations | 57.4 | 46.5 | 43.1 | ||||||||||
Equity in Earnings (Losses) of Affiliates | 0 | 0 | 0 | ||||||||||
Income Before Income Taxes | 51.6 | 43.5 | 39.8 | ||||||||||
Identifiable Assets | 347.4 | 268.5 | 181.3 | 347.4 | 268.5 | 181.3 | |||||||
Capital Expenditures | 11.9 | 5.5 | 6.1 | ||||||||||
Depreciation & Amortization | 13.5 | 10.3 | 8.6 | ||||||||||
Corporate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 0 | 0 | 0 | |||||||||
Gross profit | [1] | (44) | (32.8) | (36.6) | |||||||||
Marketing Expenses | [1] | 0 | 0 | 0 | |||||||||
Selling, General and Administrative Expenses | [1] | (44) | (32.8) | (36.6) | |||||||||
Income from Operations | [1] | 0 | 0 | 0 | |||||||||
Equity in Earnings (Losses) of Affiliates | [1] | 9.2 | 9.2 | 10.8 | |||||||||
Income Before Income Taxes | [1] | 9.2 | 10.8 | 9.2 | |||||||||
Identifiable Assets | [1] | $ 87.8 | $ 90.7 | $ 83.9 | 87.8 | 90.7 | 83.9 | ||||||
Capital Expenditures | [1] | 0 | 0 | 0 | |||||||||
Depreciation & Amortization | [1] | $ 4.2 | $ 2.8 | $ 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 $44.0, $32.8, and $36.6 for 2018, 2017 and 2016, respectively. (B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2018, 2017 and 2016. (C) Corporate assets include deferred compensation investments and the Company's investment in unconsolidated affiliates. |
Selected Financial Informatio_2
Selected Financial Information Relating To Company's Segments (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expenses | $ 565.9 | $ 542.7 | $ 439.2 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expenses | [1] | (44) | (32.8) | (36.6) |
Corporate | Cost of Sales | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general and administrative expenses | $ 44 | $ 32.8 | $ 36.6 | |
[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 $44.0, $32.8, and $36.6 for 2018, 2017 and 2016, respectively. (B) Equity in earnings (loss) of affiliates from Armand and ArmaKleen for the year ended December 31, 2018, 2017 and 2016. (C) Corporate assets include deferred compensation investments and the Company's investment in unconsolidated affiliates. |
Product Line Revenues from Exte
Product Line Revenues from External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 |
Operating Segments | Consumer Domestic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 3,129.9 | 2,854.9 | 2,677.8 | ||||||||
Operating Segments | Consumer Domestic | Household Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,725.5 | 1,640 | 1,593.4 | ||||||||
Operating Segments | Consumer Domestic | Personal Care Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,404.4 | 1,214.9 | 1,084.4 | ||||||||
Operating Segments | Consumer International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 709.5 | 621.1 | 525.2 | ||||||||
Operating Segments | Specialty Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 306.5 | $ 300.2 | $ 290.1 |
Brazilian Chemical Business - A
Brazilian Chemical Business - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||
Asset impairment charge and other asset write-offs | $ 3.6 | $ 2.1 | $ 5.6 | |||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | 3,493.1 | |
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 | |||||||||||
Sale of business | 4.5 | |||||||||||
Severance and other charges | $ 3.5 | |||||||||||
Net Sales | $ 22 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) $ in Millions | Jan. 02, 2019USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Open market share repurchase | $ 100 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net Sales | $ 1,074.4 | $ 1,037.6 | $ 1,027.9 | $ 1,006 | $ 1,033.1 | $ 967.9 | $ 898 | $ 877.2 | $ 4,145.9 | $ 3,776.2 | $ 3,493.1 |
Gross Profit | 474.3 | 460.1 | 454.9 | 451.5 | 481.4 | 438.5 | 410.4 | 399.3 | 1,840.8 | 1,729.6 | 1,590.6 |
Income from Operations | 193.4 | 204.2 | 173.8 | 220.3 | 214.7 | 198.7 | 123.2 | 196.1 | 791.7 | 732.7 | 724.2 |
Net Income | $ 142.8 | $ 146.3 | $ 121.7 | $ 157.8 | $ 405.6 | $ 133.4 | $ 72.9 | $ 131.5 | $ 568.6 | $ 743.4 | $ 459 |
Net Income per Share-Basic | $ 0.58 | $ 0.60 | $ 0.50 | $ 0.64 | $ 1.63 | $ 0.53 | $ 0.29 | $ 0.52 | $ 2.32 | $ 2.97 | $ 1.78 |
Net Income per Share-Diluted | $ 0.57 | $ 0.58 | $ 0.49 | $ 0.63 | $ 1.60 | $ 0.52 | $ 0.29 | $ 0.51 | $ 2.27 | $ 2.90 | $ 1.75 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 2.9 | $ 2.1 | $ 1 |
Additions, Charged to Expenses | 1.1 | 1.2 | 1.3 |
Additions, Acquired | 0 | 0.2 | 0 |
Deductions, Amounts Written Off | (0.8) | (0.6) | (0.3) |
Foreign Exchange | (0.1) | 0 | 0.1 |
Ending Balance | 3.1 | 2.9 | 2.1 |
Allowance for Cash Discounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 5.1 | 4.6 | 4.6 |
Additions, Charged to Expenses | 83.8 | 75.5 | 69.8 |
Additions, Acquired | 0 | 0.7 | 0 |
Deductions, Amounts Written Off | (83.8) | (75.8) | (69.8) |
Foreign Exchange | (0.1) | 0.1 | 0 |
Ending Balance | 5 | 5.1 | 4.6 |
Sales Returns and Allowances | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 13.9 | 12.1 | 11.9 |
Additions, Charged to Expenses | 93.3 | 74.9 | 56.7 |
Additions, Acquired | 0 | 0.1 | 0 |
Deductions, Amounts Written Off | (95) | (73.4) | (56.8) |
Foreign Exchange | (0.1) | 0.2 | 0.3 |
Ending Balance | $ 12.1 | $ 13.9 | $ 12.1 |