Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Document And Entity Information [Line Items] | |||
Entity Registrant Name | Hexcel Corporation | ||
Entity Central Index Key | 0000717605 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 3,776,131,636 | ||
Entity Common Stock, Shares Outstanding | 83,649,842 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity File Number | 1-8472 | ||
Entity Tax Identification Number | 94-1109521 | ||
Entity Address, Address Line One | Two Stamford Plaza | ||
Entity Address, Address Line Two | 281 Tresser Boulevard, 16th Floor | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06901 | ||
City Area Code | (203) | ||
Local Phone Number | 969-0666 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: Portions of Part III will be incorporated by reference to the registrant’s definitive proxy statement, in accordance with Instruction G(3) to Form 10-K, to be filed with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year. | ||
Preferred Shares Purchase Rights | |||
Document And Entity Information [Line Items] | |||
Title of 12(b) Security | PREFERRED SHARE PURCHASE RIGHTS | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE | ||
Common Stock | |||
Document And Entity Information [Line Items] | |||
Title of 12(b) Security | COMMON STOCK, par value $0.01 | ||
Security Exchange Name | NYSE | ||
Trading Symbol | HXL |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 103.3 | $ 64.4 |
Accounts receivable, net | 125.4 | 227.6 |
Inventories | 213.5 | 333.1 |
Contract assets | 43.1 | 52.7 |
Prepaid expenses and other current assets | 38 | 27.1 |
Assets held for sale | 12.6 | |
Total current assets | 535.9 | 704.9 |
Property, plant and equipment | 3,139.7 | 3,075.1 |
Less accumulated depreciation | (1,265.5) | (1,132.3) |
Property, plant and equipment, net | 1,874.2 | 1,942.8 |
Goodwill and other intangible assets | 277.8 | 280.4 |
Investments in affiliated companies | 44.7 | 46.5 |
Other assets | 185.2 | 154 |
Total assets | 2,917.8 | 3,128.6 |
Current liabilities: | ||
Short-term borrowings | 0.9 | 9.5 |
Accounts payable | 70 | 157.6 |
Accrued compensation and benefits | 43.2 | 74.4 |
Financial instruments | 3.6 | 17.7 |
Accrued liabilities | 65.4 | 63.4 |
Total current liabilities | 183.1 | 322.6 |
Long-term debt | 925.5 | 1,050.6 |
Retirement obligations | 53.9 | 53.3 |
Deferred income taxes | 153 | 155.7 |
Other non-current liabilities | 92.1 | 100.3 |
Total liabilities | 1,407.6 | 1,682.5 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 200.0 shares authorized, 109.7 shares and 109.3 shares issued at December 31, 2020 and 2019, respectively | 1.1 | 1.1 |
Additional paid-in capital | 849.7 | 829.9 |
Retained earnings | 1,996.4 | 1,978.9 |
Accumulated other comprehensive loss | (59.6) | (118.7) |
Total stockholders' equity including treasury stock value | 2,787.6 | 2,691.2 |
Less – Treasury stock, at cost, 26.1 shares and 25.7 shares at December 31, 2020 and 2019, respectively | (1,277.4) | (1,245.1) |
Total stockholders' equity | 1,510.2 | 1,446.1 |
Total liabilities and stockholders' equity | $ 2,917.8 | $ 3,128.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 109,700,000 | 109,300,000 |
Treasury stock, shares | 26,100,000 | 25,700,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,502,400,000 | $ 2,355,700,000 | $ 2,189,100,000 |
Cost of sales | 1,262,700,000 | 1,715,300,000 | 1,608,300,000 |
Gross margin | 239,700,000 | 640,400,000 | 580,800,000 |
Selling, general and administrative expenses | 121,100,000 | 158,700,000 | 146,000,000 |
Research and technology expenses | 46,600,000 | 56,500,000 | 55,900,000 |
Other operating expense | 57,900,000 | 0 | 7,700,000 |
Operating income | 14,100,000 | 425,200,000 | 371,200,000 |
Interest expense, net | 41,800,000 | 45,500,000 | 37,700,000 |
(Loss) income before income taxes, and equity in earnings | (27,700,000) | 379,700,000 | 333,500,000 |
Income tax (benefit) expense | (61,000,000) | 76,800,000 | 62,500,000 |
Income before equity in earnings | 33,300,000 | 302,900,000 | 271,000,000 |
(Loss) equity in earnings from affiliated companies | (1,600,000) | 3,700,000 | 5,600,000 |
Net income | $ 31,700,000 | $ 306,600,000 | $ 276,600,000 |
Basic net income per common share: | $ 0.38 | $ 3.61 | $ 3.15 |
Diluted net income per common share: | $ 0.38 | $ 3.57 | $ 3.11 |
Weighted-average common shares: | |||
Basic | 83.8 | 84.9 | 87.9 |
Diluted | 84 | 85.8 | 89 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 31.7 | $ 306.6 | $ 276.6 |
Currency translation adjustments | 54.6 | (2.6) | (45.5) |
Net unrealized pension and other benefit actuarial (loss) gain and prior service credits (net of tax) | (18) | (7) | 3.1 |
Net unrealized gain (loss) on financial instruments (net of tax) | 22.5 | (1.1) | (22.2) |
Total other comprehensive income (loss) | 59.1 | (10.7) | (64.6) |
Comprehensive income | $ 90.8 | $ 295.9 | $ 212 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Par | Common Stock Additional Paid-In Capital | Common Stock Accumulated Retained Earnings | Common Stock Accumulated Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Balance at Dec. 31, 2017 | $ 1,495.1 | $ 3.8 | $ 1.1 | $ 774.3 | $ 1,496.1 | $ 2.2 | $ (45) | $ 1.6 | $ (731.4) |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 276.6 | 276.6 | |||||||
Dividends paid on common stock | (48.4) | (48.4) | |||||||
Change in other comprehensive income – net of tax | (64.6) | (64.6) | |||||||
Stock-based compensation | 24 | 24 | |||||||
Acquisition of treasury stock | (364.5) | (364.5) | |||||||
Balance at Dec. 31, 2018 | 1,322 | 1.1 | 798.3 | 1,726.5 | (108) | (1,095.9) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 306.6 | 306.6 | |||||||
Dividends paid on common stock | (54.2) | (54.2) | |||||||
Change in other comprehensive income – net of tax | (10.7) | (10.7) | |||||||
Stock-based compensation | 31.6 | 31.6 | |||||||
Acquisition of treasury stock | (149.2) | (149.2) | |||||||
Balance at Dec. 31, 2019 | 1,446.1 | 1.1 | 829.9 | 1,978.9 | (118.7) | (1,245.1) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 31.7 | 31.7 | |||||||
Dividends paid on common stock | (14.2) | (14.2) | |||||||
Change in other comprehensive income – net of tax | 59.1 | 59.1 | |||||||
Stock-based compensation | 19.8 | 19.8 | |||||||
Acquisition of treasury stock | (32.3) | (32.3) | |||||||
Balance at Dec. 31, 2020 | $ 1,510.2 | $ 1.1 | $ 849.7 | $ 1,996.4 | $ (59.6) | $ (1,277.4) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 31.7 | $ 306.6 | $ 276.6 |
Reconciliation to net cash provided by operating activities: | |||
Depreciation and amortization | 140.9 | 141.7 | 123.1 |
Amortization of deferred financing costs and debt discount | 1.2 | 0.9 | 1.6 |
Deferred income taxes | (51.4) | 16.3 | 29.3 |
Merger and restructuring expenses, net of payments | 23 | (2.5) | 7.7 |
Equity in earnings from affiliated companies | 1.6 | (3.7) | (5.6) |
Stock-based compensation | 15.4 | 18.3 | 16.2 |
Changes in assets and liabilities: | |||
Decrease (increase) in accounts receivable | 110 | 36.5 | (20.7) |
Decrease (increase) in inventories | 129.4 | (30.4) | (25.2) |
Decrease (increase) in prepaid expenses and other current assets | 11.2 | (5.8) | (8.6) |
(Decrease) increase in accounts payable/accrued liabilities | (134.1) | 12.5 | 23.3 |
Other – net | (14.6) | 0.7 | 3.7 |
Net cash provided by operating activities | 264.3 | 491.1 | 421.4 |
Cash flows from investing activities | |||
Capital expenditures | (50.6) | (204.1) | (184.1) |
Acquisitions and investments in affiliated companies | (163.2) | (3.4) | |
Net cash used for investing activities | (50.6) | (367.3) | (187.5) |
Cash flows from financing activities | |||
Repayments of Euro term loan | (49.9) | (9) | (4.2) |
Change in finance lease obligations | (1) | (0.8) | (0.2) |
Proceeds of other debt, net | 0.8 | 0.2 | |
Dividends paid | (14.2) | (54.2) | (48.4) |
Repurchase of stock | (24.6) | (143) | (357.7) |
Activity under stock plans | (3.3) | 7.1 | 1 |
Net cash used for financing activities | (178.5) | (91.4) | (257.3) |
Effect of exchange rate changes on cash and cash equivalents | 3.7 | (0.7) | (4) |
Net increase (decrease) in cash and cash equivalents | 38.9 | 31.7 | (27.4) |
Cash and cash equivalents at beginning of period | 64.4 | 32.7 | 60.1 |
Cash and cash equivalents at end of period | 103.3 | 64.4 | 32.7 |
Supplemental data: | |||
Accrual basis additions to property, plant and equipment | 42.5 | 191 | 179.1 |
Senior unsecured credit facility | |||
Cash flows from financing activities | |||
Issuance costs related to senior credit facility | (1.3) | (2.5) | |
Senior unsecured credit facility - due 2024 | |||
Cash flows from financing activities | |||
Borrowing from senior unsecured credit facility | 422 | 581 | |
Repayment of senior unsecured credit facility | $ (507) | (268) | |
Senior unsecured credit facility - due 2021 | |||
Cash flows from financing activities | |||
Borrowing from senior unsecured credit facility | 345 | 752 | |
Repayment of senior unsecured credit facility | $ (547) | $ (600) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 — Significant Accounting Policies Nature of Operations Hexcel Corporation and its subsidiaries (herein referred to as “Hexcel”, “the Company”, “we”, “us”, or “our”), is a leading advanced composites company. We develop, manufacture, and market lightweight, high-performance structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, radio frequency/ electromagnetic interference (“RF/EMI”) and microwave absorbing materials, engineered honeycomb and composite structures, for use in Commercial Aerospace, Space & Defense and Industrial Applications. Our products are used in a wide variety of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, a wide variety of recreational products and other industrial applications. We serve international markets through manufacturing facilities, sales offices and representatives located in the Americas, Europe, Asia Pacific, India, and Africa. We are also a partner in a joint venture in Malaysia, Aerospace Composites Malaysia Sdn. Bhd. (“ACM”), which manufactures composite structures for commercial aerospace applications. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Hexcel Corporation and its subsidiaries after elimination of all intercompany accounts, transactions, and profits. At December 31, 2020, we had a 50% equity ownership investment in the joint venture described above and a 25% equity investment in Hexcut Services. These investments are accounted for using the equity method of accounting. Basis of Presentation The accompanying consolidated financial statements have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and are in conformity with U.S. generally accepted accounting principles ("GAAP"). Our fiscal year end is December 31. Unless otherwise stated, all years and dates refer to our fiscal year. Use of Estimates Preparation of the accompanying consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with an original maturity of three months or less when purchased. Our cash equivalents are held in prime money market investments with strong sponsor organizations which are monitored on a continuous basis. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the average cost methods. Inventory is reported at its estimated net realizable value based upon our historical experience with inventory becoming obsolete due to age, changes in technology and other factors. Inventory cost consists of materials, labor, and manufacturing related overhead associated with the purchase and production of inventories. Property, Plant and Equipment Property, plant, and equipment, including capitalized interest applicable to major project expenditures, is recorded at cost. Asset and accumulated depreciation accounts are eliminated for dispositions, with resulting gains or losses reflected in earnings. Depreciation of plant and equipment is provided generally using the straight-line method over the estimated useful lives of the various assets. The estimated useful lives range from 10 to 40 years for buildings and improvements and from 3 to 25 years for machinery and equipment. Repairs and maintenance are expensed as incurred, while major replacements and betterments are capitalized and depreciated over the remaining useful life of the related asset. Leases The Company regularly enters into operating leases for certain buildings, equipment, parcels of land, and vehicles. As of January 1, 2019, we adopted the provisions of Accounting Standards Codification (“ASC”) 842, accounting for leases. Accordingly, we capitalize all agreements with terms for more than one year, where a right of use asset was identified. Generally, amounts capitalized represent the present value of minimum lease payments over the term, and the duration is equivalent to the base agreement, however, management used certain assumptions when determining the value and duration of leases. These assumptions include, but are not limited to, the probability of renewing a lease term, certain future events impacting lease payments, as well as fair values not explicit in an agreement. Such assumptions impacted the duration of many of our building leases, as well as certain of our equipment leases. In addition, we elected certain expedients, such as the election to capitalize lease and non-lease components of an agreement as a single component for purposes of simplicity, with the exception of those related to equipment and machinery. In determining the lease renewal, management considers the need and ability to substitute a given asset, as well as certain conditions such as related contractual obligations to our customers (i.e., a contractual obligation of a customer requiring certain manufacturing proximities). In determining fair value, management considers the stand-alone value of an asset in an ordinary market as well as incurring certain costs to terminate an agreement. Most of our leases do not include variable payments but contain scheduled escalations. Any lease payments tied to certain future indexes are adjusted on a go forward basis as those indexes become known. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. Goodwill is tested for impairment at the reporting unit level annually, in the fourth quarter, or when events or changes in circumstances indicate that goodwill might be impaired. The Company performed a quantitative assessment using market and income approaches and determined that the fair values of our reporting units were not less than their carrying values and that no impairment exists. We amortize the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. We have indefinite lived intangible assets which are not amortized but are tested annually for impairment during the fourth quarter of each year, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of the indefinite lived intangible exceeds the fair value, it is written down to its fair value, which is calculated using a discounted cash flow model. Impairment of Long-Lived Assets The Company reviews long-lived assets, including property, plant and equipment and definite-lived intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. These indicators include, but are not limited to: a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which a long-lived asset is used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount expected for the acquisition or construction of a long-lived asset, a current period operating or cash flow loss combined with a history of losses associated with a long-lived asset and a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated life. Software Development Costs Costs incurred to develop software for internal use are accounted for under ASC 350-40, “Internal-Use Software.” Debt Financing Costs Debt financing costs are deferred and amortized to interest expense over the life of the related debt. We capitalize financing fees related to our revolving credit facility and record them as a non-current asset in our consolidated balance sheets. Financing fees related to our bonds and notes are capitalized and recorded as a non-current contra liability in our consolidated balance sheets. At December 31, 2020 and 2019, deferred financing costs, recorded as a non-current asset were Share-Based Compensation The fair value of Restricted Stock Units (“RSUs”) is equal to the market price of our stock at date of grant and is amortized to expense ratably over the vesting period. Performance restricted stock units (“PRSUs”) are a form of RSUs in which the number of shares ultimately received depends on the extent to which we achieve a specified performance target. The fair value of the PRSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized straight-line over the total vesting period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs. We use the Black-Scholes model to calculate the fair value for all stock option grants, based on the inputs relevant on the date granted, such as the market value of our shares, prevailing risk-free interest rate, etc. The value of the portion of the award, after considering potential forfeitures, that is ultimately expected to vest is recognized as expense in our consolidated statements of operations on a straight-line basis over the requisite service periods. The value of RSUs, PRSUs and non-qualifying options awards for retirement eligible employees is expensed on the grant date as they are fully vested. Currency Translation The assets and liabilities of international subsidiaries are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at average exchange rates during the year. Cumulative currency translation adjustments are included in “accumulated other comprehensive loss” in the stockholders’ equity section of the consolidated balance sheets. Revenue Recognition The Company follows the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Revenue is predominately derived from a single performance obligation under long-term agreements with our customers and pricing is fixed and determinable. We have determined that individual purchase orders (“PO”), whose terms and conditions taken with a master agreement, create the ASC 606 contracts which are generally short-term in nature. For those sales, which are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions. Under ASC 606 we applied the five-step approach resulting in revenue being recognized over time for customer contracts that contain a termination for convenience clause (“T for C’) and the products produced do not have an alternative use. For revenue recognized over time, we estimate the amount of revenue earned at a given point during the production cycle based on certain costs factors such as raw materials and labor, incurred to date, plus a reasonable profit. We believe this method, which is the cost-to-cost input method, best estimates the revenue recognizable for T for C Agreements. All other revenue is recognized at a point in time. We have elected the following practical expedients allowed under ASC 606: • Payment terms with our customers which are one year or less, are not considered a performance obligation. • Shipping and handling fees and costs incurred in connection with products sold are recorded in cost of sales in our consolidated statements of operations and are not considered a performance obligation to our customers. • Our performance obligations on our orders are generally satisfied within one year from a given reporting date therefore we omit disclosure of the transaction price allocated to remaining performance obligations on open orders. Product Warranty We provide for an estimated amount of product warranty at the point a claim is probable and estimable. This estimated amount is provided by product and based on current facts, circumstances, and historical warranty experience. Research and Technology Significant costs are incurred each year in connection with research and technology (“R&T”) programs that are expected to contribute to future earnings. Such costs are related to the development and, in certain instances, the qualification and certification of new and improved products and their uses. R&T costs are expensed as incurred. Income Taxes We provide for income taxes using the asset and liability approach . more likely than not, based on the evaluation of positive and negative evidence, that the deferred tax assets will be realized. The realization of deferred tax assets is dependent upon the timing and magnitude of future taxable income prior to the expiration of the deferred tax assets’ attributes. When events and circumstances so dictate, we evaluate the realizability of our deferred tax assets and the need for a valuation allowance by forecasting future taxable income. Investment tax credits are recorded on a flow-through basis, which reflects the credit in net income as a reduction of the provision for income taxes in the same period as the credit is realized for federal income tax purposes. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable. Two customers and their related subcontractors accounted for approximately 52% of our annual net sales in 2020, 64% in 2019 and 66% in 2018. Refer to Note 18 for further information on significant customers. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables. We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends, and other financial information. As of December 31, 2020 and 2019 the allowance for doubtful accounts was $0.8 million, and $0.6 million, respectively. Bad debt expense was immaterial for all years presented. Derivative Financial Instruments We use various financial instruments, including foreign currency forward exchange contracts, commodity, and interest rate agreements, to manage our exposure to market fluctuations by generating cash flows that offset, in relation to their amount and timing, the cash flows of certain foreign currency denominated transactions or underlying debt instruments. We mark our foreign exchange forward contracts to fair value. When the derivatives qualify, we designate our foreign currency forward exchange contracts as cash flow hedges against forecasted foreign currency denominated transactions and report the changes in fair value of the instruments in “accumulated other comprehensive loss” until the underlying hedged transactions affect income. We designate our interest rate agreements as fair value or cash flow hedges against specific debt instruments and recognize interest differentials as adjustments to interest expense as the differentials may occur; the fair value of the interest rate swaps is recorded in other assets or other long-term liabilities with a corresponding amount to “accumulated other comprehensive loss”. We do not use financial instruments for trading or speculative purposes. In accordance with accounting guidance, we recognize all derivatives as either assets or liabilities on our consolidated balance sheets and measure those instruments at fair value. Self-insurance We are self-insured up to specific levels for certain medical and health insurance and workers’ compensation plans. Accruals are established based on actuarial assumptions and historical claim experience and include estimated amounts for incurred but not reported claims. Asset Held for sale The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. In early November 2020 we closed our wind energy prepreg production facility in Windsor, Colorado and as a result, certain plant assets to be sold have been recorded in “Assets held for sale” in the consolidated Balance Sheets at December 31, 2020. New Accounting Standards Accounting Standards Recently Implemented In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326). The Accounting Standards Codification 326, Financial Instruments- Credit Losses (“ASC 326”) requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. We adopted the update, effective January 1, 2020, applying this standard to our Accounts Receivable and Contract Assets and there was no impact. Our high-quality credit review practice and good customer relationships has resulted in accounts receivable write offs below 0.5% of our annual sales. Due to the requirements of ASC 326, we have reviewed and refined our bad debt reserve process. Management reviews the average annual charge-off rate along with an assessment of current micro and macro-economic factors to determine any required reserves. If at any time management finds that there are significant changes to any of these contributing factors, the reserve will be adjusted accordingly. In the year ended December 31, 2020 we recorded $0.2 million of reserves and there were no write-offs against receivables resulting in a reserve balance of $0.8 million at December 31, 2020 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). approximately $50 million of Accounting Standards to be Implemented In August 2018, the FASB issued ASU No. 2018-14 , Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) , In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 — Inventories December 31, (In millions) 2020 2019 Raw materials $ 94.9 $ 154.9 Work in progress 23.6 40.9 Finished goods 95.0 137.3 Total inventory $ 213.5 $ 333.1 |
Net Property, Plant and Equipme
Net Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Net Property, Plant and Equipment | Note 3 — Net Property, Plant and Equipment December 31, (In millions) 2020 2019 Land $ 107.0 $ 105.4 Buildings 686.5 687.6 Equipment 2,108.8 2,026.9 Construction in progress 231.5 249.3 Finance lease 5.9 5.9 Property, plant and equipment 3,139.7 3,075.1 Less accumulated depreciation (1,265.5 ) (1,132.3 ) Net property, plant and equipment $ 1,874.2 $ 1,942.8 Depreciation expense related to property, plant and equipment for the years ended December 31, 2020, 2019 and 2018, was $133.9 million, $134.7 million and $120.1 million, respectively. Capitalized interest of $13.4 million, $12.7 million and $9.5 million for 2020, 2019 and 2018, respectively, was included in construction in progress. Capitalized costs associated with software developed for internal use were not material for 2020 2019 and 2018. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Note 4 — Goodwill and Purchased Intangible Assets Changes in the carrying amount of gross goodwill and other purchased intangibles for the years ended December 31, 2020 and 2019, by segment, are as follows: (In millions) Composite Materials Engineered Products Total Balance as of December 31, 2018 $ 98.2 $ 44.1 $ 142.3 Amortization expense (2.0 ) (4.9 ) (6.9 ) Additions — 145.1 145.1 Currency translation adjustments and other — (0.1 ) (0.1 ) Balance as of December 31, 2019 $ 96.2 $ 184.2 $ 280.4 Amortization expense (1.9 ) (5.0 ) (6.9 ) Currency translation adjustments and other 4.4 (0.1 ) 4.3 Balance as of December 31, 2020 $ 98.7 $ 179.1 $ 277.8 We performed an annual impairment review of goodwill as of November 30, 2020 and determined that the fair values of our reporting are above their carrying values and that no impairment exists. The goodwill and intangible asset balances as of December 31, 2020 include $9.3 million of indefinite-lived intangible assets, $75.4 million of a definite-lived intangible asset (net of accumulated amortization of $(20.3) million) and $193.1 million of goodwill. Of the $193.1 million of goodwill, $77.7 million is allocated to the Composite Materials segment and $115.4 million to the Engineered Products segment. The weighted average remaining life of the finite lived intangible assets is 13 years. Amortization related to the definite lived intangible assets for the next five years and thereafter is as follows: (In millions) 2021 $ 7.0 2022 7.0 2023 7.0 2024 6.7 2025 6.7 Thereafter 41.0 Total $ 75.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt December 31, December 31, (In millions) 2020 2019 Current portion of finance lease $ 0.9 $ 0.6 Current portion of Euro term loan — 8.9 Current portion of debt 0.9 9.5 Non-current portion of Euro term loan — 41.5 Senior unsecured credit facility 228.0 313.0 4.7% senior notes — due 2025 300.0 300.0 3.95% senior notes — due 2027 400.0 400.0 Senior notes — original issue discount (1.5 ) (1.7 ) Senior notes — deferred financing costs (3.5 ) (4.2 ) Non-current portion of finance leases and other 2.5 2.0 Long-term debt 925.5 1,050.6 Total debt $ 926.4 $ 1,060.1 Senior Unsecured Credit Facility In June 2019, the Company refinanced its senior unsecured credit facility (“the Facility”), increasing borrowing capacity from $ 700 1 June 2024 The Facility agreement contains financial and other covenants, including, but not limited to customary restrictions on the incurrence of debt by our subsidiaries and the granting of liens, as well as the maintenance of an interest coverage ratio and a leverage ratio. As defined in the Facility agreement, we are required to maintain a minimum interest coverage ratio of 3.50 (based on the ratio of earnings before interest tax depreciation and amortization, “EBITDA”, to interest expense). In addition, the maximum leverage ratio must not exceed 3.75 (based on the ratio of total debt to EBITDA) with a step up to 4.25 allowed following certain acquisitions. The Facility agreement contains other customary terms and conditions such as representations and warranties, additional covenants and events of default . As 50 amount available for borrowing under the Facility. As of December 31, 2020, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $772.0 million. The weighted average interest rate for the Facility was 2.16% for the year ended December 31, 2020. The balance of unamortized deferred financing costs related to the Facility was $3.5 million at December 31, 2020 and $3.7 million at December 31, 2019. In September 2020, we amended our Facility (the “Amendment”) to allow for relief from certain terms of the Facility from October 1, 2020 through and including September 30, 2021 (the “Covenant Relief Period”). During the Covenant Relief Period, we are required to maintain a leverage ratio not greater than: 4.25, 5.75, 5.00 and 4.25, respectively, for each of the quarterly test periods from December 31, 2020 through September 30, 2021. During the Covenant Relief Period, consolidated total debt is calculated net of unrestricted cash and cash equivalents in an amount not to exceed $200 million. Additionally, during the Covenant Relief Period, we are subject to (i) limitations on share repurchases, (ii) further limitations on the incurrence of secured indebtedness, and (iii) an increase in pricing based on the then existing leverage ratio. On January 28, 2021 (the “Effective Date”), we entered into the Second Amendment (the “Amendment”) to the Credit Agreement, dated as of June 20, 2019, by and among the Company, as borrower, the lenders party thereto and Citizens Bank, N.A., as administrative agent, as amended by the First Amendment dated September 28, 2020 (the “Credit Agreement” and as amended by the Amendment the “Amended Credit Agreement”). During the Liquidity Covenant Period from January 28, 2021 through and including March 31, 2022, we will not be subject to a maximum leverage ratio covenant but will instead be required to maintain Liquidity (as defined in the Amended Credit Agreement) of at least $250 million. Additionally, during such period, the Company will be subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees are increased; the incremental facility will not be available; and if the Company’s public debt rating is downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we will be required to grant liens on certain of our assets, which liens will be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. The Company’s current public debt rating is BBB-/Baa3. Additionally, the Amendment provides that the Company will not be subject to an interest coverage ratio covenant until the test period ending December 31, 2021. Finally, in connection with the Amendment, revolving commitments under the Amended Credit Agreement were reduced to $750 million. 3.95% Senior Notes In 2017, the Company issued $400 million in aggregate principal amount of 3.95% Senior Unsecured Notes due in 2027. The interest rate on these senior notes may be increased by 0.25% each time a credit rating applicable to the notes is downgraded. The maximum rate is 5.95%. The effective interest rate for 2020 was 3.87% inclusive of approximately a 0.25% benefit of treasury locks. The fair value of the senior notes due in 2027 based on quoted prices utilizing Level 2 inputs (as defined in Note 20) was $432.5 million at December 31, 2020. The balance of unamortized deferred financing costs and debt discount related to the senior notes was $3.4 million at December 31, 2020 and $3.9 million at December 31, 2019. 4.7% Senior Notes In 2015, the Company issued $300.0 million in aggregate principal amount of 4.7% Senior Unsecured Notes due in 2025. The interest rate on these senior notes may be increased by 0.25% each time a credit rating applicable to the notes is downgraded. The maximum rate is 6.7% and the rate at December 31, 2020 remained at 4.7%. The conditions and covenants related to the senior notes are less restrictive than those of our Facility. The effective interest rate for 2020 was 4.83%. The fair value of the senior notes based on quoted prices utilizing level 2 inputs was $336.4 million at December 31, 2020. The balance for unamortized deferred financing costs and debt discount related to the senior notes was $1.7 million at December 31, 2020 and $2.0 million at December 31, 2019. Other Credit Facilities In January 2020, we used $49.9 million to repay and terminate the Euro term loan. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 6 — Leases At December 31, 2020, we had approximately $58.5 million of right of use assets recorded in non-current other assets, and $58.5 million of related liabilities, $46.5 million of which was included in other non-current liabilities with the current portion of $12.0 in accrued liabilities. The weighted average of the remaining lease terms was approximately 8 years. We discount the future lease payments of our leases using the prevailing rates extended to us by our lenders relevant to the period of inception. These rates are comprised of LIBOR plus a stated spread less a component related to collateralization. The rates are relative to the duration of the lease at inception and the country of origin. The weighted average interest rate used in calculating the fair values listed above was 3.0%. The following table lists the schedule of future undiscounted cash payments related to right of use assets by year: (In millions) 2021 $ 12.0 2022 10.1 2023 8.9 2024 7.8 2025 5.7 Thereafter 23.1 Total $ 67.6 Operating lease expense recognized during the year ended December 31, 2020, 2019 and 2018, was $16.2 million, $15.5 million and $13.8 million, respectively. Expense related to operating leases which have a duration of a year or less were not material. Expenses for finance leases for the years ended December 31, 2020, 2019 and 2018 were immaterial. Lease-related assets and liabilities follows: (In millions) Balance Sheet Classification 2020 2019 Operating lease ROU assets Other Assets $ 58.5 $ 66.5 Operating lease current liabilities Other current liabilities 12.0 12.9 Operating lease long-term liabilities Other long-term liabilities 46.5 53.6 Total operating lease liabilities $ 58.5 $ 66.5 Finance lease, gross Property, plant & equipment, net 5.9 5.9 Finance lease accumulated depreciation Property, plant & equipment, net 0.5 0.5 Finance lease, net $ 5.4 $ 5.4 Finance lease current liabilities Other current liabilities 0.9 0.6 Finance lease long-term liabilities Long-term debt 1.3 1.8 Total finance lease liabilities $ 2.2 $ 2.4 |
Retirement and Other Postretire
Retirement and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement and Other Postretirement Benefit Plans | Note 7 — Retirement and Other Postretirement Benefit Plans We maintain qualified defined benefit retirement plans covering certain current and former European employees, as well as nonqualified defined benefit retirement plans, and retirement savings plans covering certain eligible U.S. and European employees and participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations. In addition, we provide certain postretirement health care and life insurance benefits to eligible U.S. retirees. Accounting standards require the use of certain assumptions, such as the expected long-term rate of return, discount rate, rate of compensation increase, healthcare cost trend rates, and retirement and mortality rates, to determine the net periodic costs of such plans. These assumptions are reviewed and set annually at the beginning of each year. In addition, these models use an “attribution approach” that generally spreads individual events, such as plan amendments and changes in actuarial assumptions, over the service lives of the employees in the plan. That is, employees render service over their service lives on a relatively smooth basis and therefore, the income statement effects of retirement and postretirement benefit plans are earned in, and should follow, the same pattern. We use our actual return experience, future expectations of long-term investment returns, and our actual and targeted asset allocations to develop our expected rate of return assumption used in the net periodic cost calculations of our funded European defined benefit retirement plans. Due to the difficulty involved in predicting the market performance of certain assets, there will be a difference in any given year between our expected return on plan assets and the actual return. Following the attribution approach, each year’s difference is amortized over a number of future years. Over time, the expected long-term returns are designed to approximate the actual long-term returns and therefore result in a pattern of income and expense recognition that more closely matches the pattern of the services provided by the employees. We annually set our discount rate assumption for retirement-related benefits accounting to reflect the rates available on high-quality, fixed-income debt instruments. The rate of compensation increases for nonqualified pension plans, which is another significant assumption used in the actuarial model for pension accounting, is determined by us based upon our long-term plans for such increases and assumed inflation. For the postretirement health care and life insurance benefits plan, we review external data and its historical trends for health care costs to determine the health care cost trend rates. Retirement and termination rates are based primarily on actual plan experience. The mortality table used for the U.S. plans is based on the Pri-2012 White Collar Healthy Annuitant Mortality Table with Improvement Scale MP-2019 and for the U.K. Plan the S3PXA base table with future improvements in line with the CMI 2019 projection model with a long-term trend rate of 1.25% p. a. Actual results that differ from our assumptions are accumulated and amortized over future periods and therefore, generally affect the net periodic costs and recorded obligations in such future periods. While we believe that the assumptions used are appropriate, significant changes in economic or other conditions, employee demographics, retirement and mortality rates, and investment performance may materially impact such costs and obligations. U.S. Defined Benefit Retirement Plans We have nonqualified defined benefit retirement plans covering certain current and former U.S. employees that are funded as benefits are incurred. Under the provisions of these plans, we expect to contribute approximately $3.4 million in 2021 to cover unfunded benefits. Multi-Employer Plan The Company is party to a multi-employer pension plan covering certain U.S. employees with union affiliations. The plan is the Western Metal Industry Pension Fund, (“the Plan”). The Plan’s employer identification number is 91-6033499; the Plan number is 001. In 2020, 2019 and 2018 the Plan reported Hexcel Corporation as being an employer that contributed greater than 5% of the Plan’s total contributions. The collective bargaining agreement was renewed on November 20, 2020 retroactively to October 1, 2020 for a five-year term. The Plan has been listed in “critical status” and has been operating in accordance with a Rehabilitation Plan since 2010. The Plan, as amended under the Rehabilitation Plan, reduced the adjustable benefits of the participants, and levied a surcharge on employer contributions. The Company contributed $2.0 million in 2020, $2.5 million in 2019 and $2.1 million in 2018. We expect the Company’s contribution to be about $2.0 million in 2021 and remain at that level over the remaining term. U.S. Retirement Savings Plan Under the retirement savings plan, eligible U.S. employees can contribute up to 75% of their annual compensation to an individual 401(k) retirement savings account. The Company makes matching contributions equal to 50% of employee contributions, not to exceed 3% of employee compensation each year. We also contribute an additional 2% to 4% of each eligible U.S. employee’s salary to an individual 401(k) retirement savings account. This increases the maximum contribution to individual U.S. employee savings accounts to between 5% and 7% per year before any profit-sharing contributions that are made when we meet or exceed certain performance targets that are set annually. These profit-sharing contributions are made at the Company’s discretion and are targeted at 3% of an eligible U.S. employee’s pay, with a maximum of 4.5%. In April 2020, the matching contributions were suspended as a result of the COVID-19 impact, however, as of January 1, 2021 they have been reinstated for all full-time employees . U.S. Postretirement Plans In addition to defined benefit and retirement savings plan benefits, we also provide certain postretirement health care and life insurance benefits to eligible U.S. retirees. Depending upon the plan, benefits are available to eligible employees who retire after meeting certain age and service requirements and were employed by Hexcel as of February 1996. Our funding policy for the postretirement health care and life insurance benefit plans is generally to pay covered expenses as they are incurred. Under the provisions of these plans, we expect to contribute approximately $0.4 million in 2021 to cover unfunded benefits. Non-Qualified Deferred Compensation Plan Under the deferred compensation plan, eligible U.S. employees may make tax-deferred contributions that cannot be made under the 401(k) Plan because of Internal Revenue Service limitations. We match 50% of a participant’s contributions up to 6% of the participants excess compensation pay as well as provide the same fixed and profit-sharing contributions as provided under the 401(k) plan. In April 2020, the matching contributions were suspended as a result of the COVID-19 impact, however, as of January 1, 2021 they have been reinstated for all full-time employees. We have elected to fund our deferred compensation obligation through a rabbi trust. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. Amounts in the rabbi trust are invested in a number of funds based on the funds available under our 401(k) plan, other than the Hexcel stock fund. The securities are carried at fair value and are included in other assets on the consolidated balance sheets. We record trading gains and losses in general and administrative expenses on the consolidated statements of income, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect our exposure to liabilities for payment under the deferred plan. European Defined Benefit Retirement Plans We have defined benefit retirement plans in the United Kingdom, Belgium, France, and Austria covering certain employees of our subsidiaries in those countries. The defined benefit plan in the United Kingdom (the “U.K. Plan”), the largest of the European plans, was terminated in 2011 and replaced with a defined contribution plan. The total assets in the U.K. Plan were held in a variety of investments. Equity investments and growth fund investments are made with the objective of achieving a return on plan assets consistent with the funding requirements of the plan, maximizing portfolio return and minimizing the impact of market fluctuations on the fair value of the plan assets. In 2020, the plan bought an insurance policy referred to as a buy-in which immunized a significant portion of the liability. Liability driven investments are made to further reduce balance sheet volatility. As a result of an annual review of historical returns and market trends, and the insurance policy, the expected long-term weighted average rate of return for the U.K. Plan for the 2021 plan year will be 1.5% and 3.0% for the other European plans as a group. U.K. Defined Contribution Pension Plan Under the Defined Contribution Plan, eligible U.K. employees can belong to the Deferred Contribution Plan on a non-participatory basis or can elect to contribute 3%, 5% or 7% of their pensionable salary. The Company will contribute 5%, 9% and 13% respectively. The plan also provides life insurance and disability insurance benefits for members. Retirement and Other Postretirement Plans – France The employees of our French subsidiaries are entitled to receive a lump-sum payment upon retirement subject to certain service conditions under the provisions of the national chemicals and textile workers collective bargaining agreements. The amounts attributable to the French plans have been included within the total expense and obligation amounts noted for the European plans. Net Periodic Pension Expense Net periodic expense for our U.S. and European qualified and nonqualified defined benefit pension plans and our retirement savings plans for the three years ended December 31, 2020 is detailed in the table below. (In millions) 2020 2019 2018 Defined benefit retirement plans $ 0.1 $ (1.0 ) $ (1.6 ) Union sponsored multi-employer pension plan 2.0 2.5 2.1 Retirement savings plans-matching contributions 5.9 11.4 10.2 Retirement savings plans-profit sharing contributions 2.7 10.4 10.2 Net periodic expense $ 10.7 $ 23.3 $ 20.9 Defined Benefit Retirement and Postretirement Plans Net periodic cost of our defined benefit retirement and postretirement plans for the three years ended December 31, 2020, were: (In millions) U.S. Plans European Plans Defined Benefit Retirement Plans 2020 2019 2018 2020 2019 2018 Service cost $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0 $ 1.1 Interest cost 0.5 0.6 0.6 3.5 4.5 4.4 Expected return on plan assets — — — (6.9 ) (8.7 ) (9.4 ) Net amortization 0.3 0.1 0.2 0.4 0.3 0.3 Termination benefits and settlement losses — — — — — — Net periodic pension cost (income) $ 2.0 $ 1.9 $ 2.0 $ (1.9 ) $ (2.9 ) $ (3.6 ) (In millions) U.S. Postretirement Plans 2020 2019 2018 Interest cost $ 0.1 $ 0.1 $ 0.1 Net amortization and deferral (1.0 ) (1.1 ) (1.0 ) Net periodic postretirement benefit (income) loss $ (0.9 ) $ (1.0 ) $ (0.9 ) Defined Benefit Retirement Plans (In millions) U.S. Plans European Plans Postretirement Plans Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss 2020 2019 2020 2019 2020 2019 Net loss (gain) $ 1.6 $ 0.9 $ 20.2 $ 8.3 $ (0.5 ) $ 0.1 Amortization of actuarial (losses) gains — — (0.5 ) (0.3 ) 1.0 1.1 Prior service cost — — — (0.1 ) — — Effect of foreign exchange — — 1.7 0.8 — — Total recognized in other comprehensive loss, (pre-tax) $ 1.6 $ 0.9 $ 21.4 $ 8.7 $ 0.5 $ 1.2 The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit retirement plans and postretirement plans, as of and for the years ended December 31, 2020 and 2019, were: Defined Benefit Retirement Plans U.S. Plans European Plans Postretirement Plans (In millions) 2020 2019 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation - beginning of year $ 20.3 $ 18.2 $ 188.6 $ 160.9 $ 3.1 $ 3.3 Service cost 1.2 1.2 1.1 1.0 — — Interest cost 0.5 0.6 3.5 4.5 0.1 0.1 Plan participants’ contributions — — — — — 0.3 Actuarial loss (gain) 1.9 0.9 28.7 22.0 (0.5 ) 0.2 Plan amendments and acquisitions — — — — — — Curtailments and settlements — — (3.2 ) (0.4 ) — — Benefits and expenses paid (0.6 ) (0.6 ) (5.7 ) (5.2 ) (0.1 ) (0.8 ) Currency translation adjustments — — 7.9 5.8 — — Benefit obligation - end of year $ 23.3 $ 20.3 $ 220.9 $ 188.6 $ 2.6 $ 3.1 Change in plan assets: Fair value of plan assets - beginning of year $ — — $ 214.3 $ 184.3 $ — — Actual return on plan assets — — 13.2 22.2 — — Employer contributions 0.6 0.6 5.7 5.2 0.1 0.5 Plan participants’ contributions — — — — — 0.3 Benefits and expenses paid (0.6 ) (0.6 ) (5.8 ) (5.2 ) (0.1 ) (0.8 ) Curtailments and settlements — — (0.9 ) (0.2 ) — — Currency translation adjustments — — 7.3 8.0 — — Fair value of plan assets - end of year $ — $ — $ 233.8 $ 214.3 $ — $ — Amounts recognized in Consolidated Balance Sheets: Non-current assets $ — $ — $ 31.5 $ 45.2 $ — $ — Current liabilities $ 3.8 $ 1.4 $ 0.9 $ 0.6 $ 0.4 $ 0.5 Non-current liabilities 19.4 18.9 17.7 18.9 2.2 2.6 Total liabilities (a) $ 23.2 $ 20.3 $ 18.6 $ 19.5 $ 2.6 $ 3.1 Amounts recognized in Accumulated Other Comprehensive Loss: Actuarial net (loss) gain $ (4.5 ) $ (3.0 ) $ (50.1 ) $ (28.8 ) $ 1.6 $ 1.8 Prior service cost — — (1.4 ) (1.3 ) — — Total amounts recognized in accumulated other comprehensive loss $ (4.5 ) $ (3.0 ) $ (51.5 ) $ (30.1 ) $ 1.6 $ 1.8 (a) The current and non-current portions of the accrued benefit costs for the defined benefit retirement plans and postretirement benefit plans are included within “accrued compensation and benefits” and “retirement obligations”, respectively, in the accompanying consolidated balance sheets. For the U.S. and European plans, the actuarial loss for both fiscal 2020 and 2019 was primarily due to a reduction in the discount rates from the rates that were used in the preceding fiscal year. For the Postretirement plans, fiscal year 2020 net actuarial gains in the benefit obligation were primarily the result of actual benefit payments differing from expected, lower than expected per capita claims costs, changes in the participation and mortality assumptions and the census profile different than expected. The measurement date used to determine the benefit obligations and plan assets of the defined benefit retirement and postretirement plans was December 31, 2020. All costs related to our pensions are included as a component of operating income in our consolidated statements of operations. For the years ended December 31, 2020, 2019 and 2018, amounts unrelated to service costs were a benefit of $3.1 million, $4.2 million and $4.8 million, respectively. The total accumulated benefit obligation (“ABO”) for the U.S. defined benefit retirement plans was $23.3 million and $19.9 million as of December 31, 2020 and 2019, respectively . Excluding the U.K. Plan, the European plans’ ABO exceeded plan assets as of December 31, 2020 and 2019, by Benefit payments for the plans are expected to be as follows: European Postretirement (In millions) U.S. Plans Plans Plans 2021 $ 3.4 $ 8.2 $ 0.4 2022 1.9 5.9 0.4 2023 2.0 6.4 0.3 2024 12.5 9.8 0.3 2025 0.2 7.6 0.3 2026-2030 2.3 42.5 0.7 $ 22.3 $ 80.4 $ 2.4 Fair Values of Pension Assets The following table presents pension assets measured at fair value at December 31, 2020 and 2019 utilizing the fair value hierarchy discussed in Note 20: Fair Value Measurements at (In millions) December 31, December 31, 2020 Description 2020 Level 1 Level 2 Level 3 Equity funds $ 17.2 $ — $ 17.2 $ — Diversified growth funds 69.0 — 69.0 — Fixed income gilts — — — — Insurance contracts 94.9 — — 94.9 Liability driven investments 48.0 — 48.0 — Index linked gilts — — — — Diversified investment funds 2.5 — — 2.5 Cash and cash equivalents 2.2 2.2 — — Total assets $ 233.8 $ 2.2 $ 134.2 $ 97.4 Fair Value Measurements at December 31, December 31, 2019 Description 2019 Level 1 Level 2 Level 3 Equity funds $ 28.2 $ — $ 28.2 $ — Diversified growth funds 55.6 — 55.6 — Fixed income gilts 19.9 — 19.9 — Insurance contracts 4.4 — — 4.4 Liability driven investments 29.7 — 29.7 — Index linked gilts 73.5 — 73.5 — Diversified investment funds 2.4 — — 2.4 Cash and cash equivalents 0.6 0.6 — — Total assets $ 214.3 $ 0.6 $ 206.9 $ 6.8 The U.K. plan invests funds which are not exchange listed and are, therefore, classified as Level 3. Balance at Actual Purchases, Changes due Balance at (In millions) January 1, return on sales and to exchange December 31, Reconciliation of Level 3 Assets 2020 plan assets settlements rates 2020 Diversified investment funds $ 2.4 $ 0.1 $ (0.2 ) $ 0.2 $ 2.5 Insurance contracts 4.4 0.2 88.4 1.9 94.9 Total level 3 assets $ 6.8 $ 0.3 $ 88.2 $ 2.1 $ 97.4 Balance at Actual Purchases, Changes due Balance at January 1, return on sales and to exchange December 31, Reconciliation of Level 3 Assets 2019 plan assets settlements rates 2019 Diversified investment funds $ 2.0 $ 0.3 $ 0.1 $ — $ 2.4 Insurance contracts 4.2 0.1 0.2 (0.1 ) 4.4 Total level 3 assets $ 6.2 $ 0.4 $ 0.3 $ (0.1 ) $ 6.8 Plan assets are invested in a number of units linked pooled funds by an independent asset management group. Equity funds are split 30/70 between U.K. and overseas equity funds (North America, Japan, Asia Pacific and Emerging Markets). The asset management firm uses quoted prices in active markets to value the assets. Diversified growth funds are invested in a broad spectrum of asset classes with reduced dependency on any particular asset class. This approach targets growth asset returns with lower risk resulting from the diversification across different asset classes. The fixed income gilts provide investment in low risk, fixed coupon bonds to reduce the volatility of return on the investments. The insurance contract in the U.K. provides guaranteed income equal to the benefit payments for the membership underwritten by the policy. This provides protection against interest rate movements, inflation, market fluctuations as well as member longevity. Insurance contracts outside of the U.K. contain a minimum guaranteed return. The insurance contracts are Level 3 investments and are valued using unobservable inputs that are based on the best information available. The fair value of the assets is equal to the total amount of all individual technical reserves plus the non-allocated employer’s financing fund reserves at the valuation date. The individual technical and financing fund reserves are equal to the accumulated paid contributions taking into account the insurance tarification and any allocated profit-sharing return. The liability driven investments’ allocation aims to hedge against the exposure to interest rate risk through the use of interest rate swaps. The index-linked gilt allocation provides a partial interest rate and inflation rate hedge against the valuation of the liabilities. The diversified investment funds represent plan assets invested in a Pensionskasse (an Austrian multi-employer pension fund). The main holdings consist of equity, bonds, real estate and bank deposits. The actual allocations for the pension assets at December 31, 2020 and 2019, and target allocations by asset class, are as follows: Percentage Target Percentage Target of Plan Assets Allocations of Plan Assets Allocations Asset Class 2020 2020 2019 2019 Diversified growth funds 29.5 % 27.1 % 25.9 % 22.3 % Index linked gilts — — 34.3 33.4 Fixed interest gilts — — 9.3 9.1 Liability driven investments 20.5 23.9 13.8 16.5 All other regions equity fund 5.1 5.1 9.2 10.8 U.K. equity fund 2.2 2.2 4.0 4.7 Diversified investment funds 1.1 1.1 1.1 1.1 Insurance contracts 40.6 40.6 2.0 2.1 Cash and cash equivalents 1.0 — 0.4 — Total 100 % 100 % 100 % 100 % Assumptions The assumed discount rate for pension plans reflects the market rates for high-quality fixed income debt instruments currently available. A third party provided standard Yield Curve was used for the U.S. non-qualified and postretirement plans. For the U.K. plan, cash flows were not available and therefore we considered the derived yield to market on a representative bond of suitable duration taken from the third-party provider’s synthetic bond yield curve. We believe that the timing and amount of cash flows related to these instruments is expected to match the estimated defined benefit payment streams of our plans. The assumed discount rate for the U.S. non-qualified plans uses individual discount rates for each plan based on their associated cash flows. Salary increase assumptions are based on historical experience and anticipated future management actions. For the postretirement health care and life insurance benefit plans, we review external data and our historical trends for health care costs to determine the health care cost trend rates. Retirement rates are based primarily on actual plan experience and on rates from previously mentioned mortality tables. Actual results that differ from our assumptions are accumulated and amortized over future periods and therefore, generally affect the net periodic costs and recorded obligations in such future periods. While we believe that the assumptions used are appropriate, significant changes in economic or other conditions, employee demographics, retirement and mortality rates, and investment performance may materially impact such costs and obligations. Assumptions used to estimate the actuarial present value of benefit obligations at December 31, 2020, 2019 and 2018 are shown in the following table. These year-end values are the basis for determining net periodic costs for the following year. 2020 2019 2018 U.S. defined benefit retirement plans: Discount rates 0.4% - 1.8% 2.1% - 2.8% 2.8% - 3.2% Rate of increase in compensation 3% 3% 3% European defined benefit retirement plans: Discount rates 0.00% - 1.45% 0.35% - 2.05% 1.25% - 3.05% Rates of increase in compensation 2.75% - 3.0% 2.75% - 3.0% 2.75% - 3.0% Expected long-term rates of return on plan assets 1.45% – 3.0% 2.0% – 3.2% 2.0% – 4.75% Postretirement benefit plans: Discount rates 1.3% 2.5% 3.7% The following table presents the impact that a one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate would have on the 2020 pension expense, and the impact on our retirement obligation as of December 31, 2020 for a one-percentage-point change in the discount rate: U.S. Non-Qualified U S Retiree U.K. (In millions) Pension Plans Medical Plans Retirement Plan Periodic pension expense One-percentage-point increase: Expected long-term rate of return N/A N/A $ (1.4 ) Discount rate $ — $ — $ (0.3 ) One-percentage-point decrease: Expected long-term rate of return N/A N/A $ 1.4 Discount rate $ 0.1 $ — $ 0.2 Retirement obligation One-percentage-point increase in discount rate $ (0.8 ) $ (0.1 ) $ (21.6 ) One-percentage-point decrease in discount rate $ 0.9 $ 0.1 $ 29.0 The annual rate of increase in the per capita cost of covered health care benefits is assumed to be 7.0% for medical and 5.0% for dental and vision for 2020. The medical rates are assumed to gradually decline to 4.75% by 2029, whereas dental and vision rates are assumed to remain constant at 5.0%. A one-percentage-point increase and a one-percentage-point decrease in the assumed health care cost trend would have an insignificant impact on the total of service and interest cost components and would have an immaterial impact on the postretirement benefit obligation for both 2020 and 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 — Income Taxes Income before income taxes and the provision for income taxes, for the three years ended December 31, 2020, were as follows: (In millions) 2020 2019 2018 Income before income taxes: U.S. $ 0.8 $ 284.1 $ 222.9 International (28.5 ) 95.6 110.6 Total (loss) income before income taxes $ (27.7 ) $ 379.7 $ 333.5 Income tax (benefit) expense: Current: U.S. $ (11.3 ) $ 49.1 $ 18.3 International 1.7 11.8 14.9 Current income tax (benefit) expense (9.6 ) 60.9 33.2 Deferred: U.S. 0.1 3.8 26.8 International (51.5 ) 12.1 2.5 Deferred income tax (benefit) expense (51.4 ) 15.9 29.3 Total income tax (benefit) expense $ (61.0 ) $ 76.8 $ 62.5 A reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate of 21.0% to the effective income tax rate, for the year ended December 31, 2020 and 2019, 2018 is as follows: (In millions) 2020 2019 2018 (Benefit) provision for taxes at U.S. federal statutory rate $ (5.8 ) $ 79.7 $ 70.0 State and local taxes, net of federal benefit (4.2 ) 3.6 7.2 Foreign effective rate differential (1.9 ) 5.1 4.6 Tax credits (3.0 ) (8.8 ) (7.8 ) Change in valuation allowance (39.5 ) (1.9 ) (3.4 ) Remeasurement of deferred taxes 3.5 0.4 (9.0 ) Transition tax on undistributed foreign earnings — — 1.6 Excess tax benefits on stock-based compensation (0.9 ) (4.9 ) (4.6 ) Other (4.3 ) 1.0 (0.5 ) (Decrease) increase in reserves for uncertain tax positions (4.9 ) 1.2 (1.3 ) Global intangible low taxed income — 1.4 5.7 Total income tax (benefit) expense $ (61.0 ) $ 76.8 $ 62.5 We do not provide for additional income or withholding taxes for any undistributed foreign earnings as we do not currently have any specific plans to repatriate funds from our international subsidiaries; however, we may do so in the future if a dividend can be remitted with no material tax impact. As of December 31, 2020, we have approximately $720.2 million of unremitted foreign earnings that we intend to keep indefinitely reinvested. Additionally, due to withholding tax, basis computations and other tax related considerations, it is not practicable to estimate any taxes to be provided on outside basis differences at this time. Deferred Income Taxes Deferred income taxes result from tax attributes including foreign tax credits, net operating loss carryforwards and temporary differences between the recognition of items for income tax purposes and financial reporting purposes. Principal components of deferred income taxes as of December 31, 2020 and 2019 are: (In millions) 2020 2019 Assets Net operating loss carryforwards $ 96.5 $ 71.6 Capital loss carryforward 1.6 1.7 ASC 606 - revenue from contracts with customers 8.4 9.9 Tax credit carryforwards 9.9 8.6 Stock-based compensation 7.6 7.7 Other comprehensive income 6.1 6.3 Inventory reserves 9.6 11.8 Reserves and other 5.2 1.5 Subtotal 144.9 119.1 Valuation allowance (6.9 ) (44.7 ) Total assets $ 138.0 $ 74.4 Liabilities Accelerated depreciation (194.5 ) (189.1 ) Accelerated amortization (14.8 ) (13.2 ) Other (8.8 ) (6.0 ) Total liabilities $ (218.1 ) $ (208.3 ) Net deferred tax liabilities $ (80.1 ) $ (133.9 ) Deferred tax assets and deferred tax liabilities as presented in the consolidated balance sheets as of December 31, 2020 and 2019 are as follows and are recorded in other assets and deferred income taxes in the consolidated balance sheets: (In millions) 2020 2019 Long-term deferred tax assets, net $ 72.9 $ 21.8 Long-term deferred tax liability, net (153.0 ) (155.7 ) Net deferred tax liabilities $ (80.1 ) $ (133.9 ) The deferred tax assets for the respective periods were assessed for recoverability and, where applicable, a valuation allowance was recorded to reduce the total deferred tax asset to an amount that will, more likely than not, be realized in the future. The valuation allowance as of December 31, 2020 relates primarily to certain US tax attributes for which we have determined, based upon historical results and projected future book and taxable income levels, that a valuation allowance should continue to be maintained. The valuation allowance decreased by $37.8 million in the current year primarily due to a legal entity rationalization and treasury realignment initiative in the third quarter. The valuation allowance as of December 31, 2019 relates primarily to net operating loss carryforwards of our foreign subsidiaries for which we have determined, based upon historical results, and projected future book and taxable income levels, that a valuation allowance should continue to be maintained. The net change in the total valuation allowance for the years ended December 31, 2020 and 2019, was a decrease of $37.8 million and $4.1 million, respectively. Although realization is not assured, we have concluded that it is more-likely-than-not that the deferred tax assets, for which a valuation allowance was determined to be unnecessary, will be realized in the ordinary course of operations based on the available positive and negative evidence, including scheduling of deferred tax liabilities and projected income from operating activities. The amount of the net deferred tax assets considered realizable, however, could be reduced in the near term if actual future income or income tax rates are lower than estimated, or if there are differences in the timing or amount of future reversals of existing taxable or deductible temporary differences. Net Operating Loss & Tax Credit Carryforwards At December 31, 2020, we had tax credit carryforwards for U.S. and foreign tax purposes of $9.9 million available to offset future income taxes. These credits will begin to expire if not utilized in 2021. We also had net operating loss carryforwards for U.S. state and foreign income tax purposes of $6.7 million and $380.2 million, respectively, for which there were foreign valuation allowances of $0.5 million as of December 31, 2020. Our foreign net operating losses can be carried forward without limitation in Belgium, France, Luxembourg, and the U.K. We have a partial valuation allowance against certain foreign net operating losses for which the Company believes it is not more likely than not that the net operating losses will be utilized. Uncertain Tax Positions Our unrecognized tax benefits at December 31, 2020, relate to various foreign and U.S. jurisdictions. The following table summarizes the activity related to our unrecognized tax benefits. Unrecognized Tax Benefits (In millions) 2020 2019 2018 Balance as of January 1, $ 18.1 $ 7.5 $ 12.3 Additions based on tax positions related to the current year 0.3 11.0 1.1 (Reductions) additions for tax positions of prior years (7.9 ) (0.1 ) (5.7 ) Expiration of the statute of limitations for the assessment of taxes — (0.3 ) (0.3 ) Other, including currency translation — — 0.1 Balance as of December 31, $ 10.5 $ 18.1 $ 7.5 We had unrecognized tax benefits of $10.5 million at December 31, 2020, of which $2.4 million, if recognized, would impact our annual effective tax rate. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. The Company did not recognize any interest expense or penalties related to the above unrecognized tax benefits in 2020 and 2019. During 2020 we reversed $0.2 million of accrued interest related to unrecognized tax benefits. The Company had no accrued interest as of December 31, 2020 and approximately $0.2 million as of December 31, 2019. We are subject to taxation in the U.S. and various states and foreign jurisdictions. The U.S. Federal tax returns have been audited through 2016. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from 3 to 5 years As of December 31, 2020, we had uncertain tax positions for which it is reasonably possible that amounts of unrecognized tax benefits could significantly change over the next year. These uncertain tax positions relate to our tax returns from 2012 onward, some of which are currently under examination by certain U.S. and European tax authorities. We believe it is reasonably possible that the total amount of unrecognized tax benefits disclosed as of December 31, 2020 may decrease by approximately $1.0 million in the fiscal year ending December 31, 2021. Such possible decrease primarily relates to the expiration of statutes of limitation. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Capital Stock | Note 9 — Capital Stock Common Stock Outstanding Common stock outstanding as of December 31, 2020, 2019 and 2018 was as follows: (Number of shares in millions) 2020 2019 2018 Common stock: Balance, beginning of year 109.3 108.5 107.8 Activity under stock plans 0.4 0.8 0.7 Balance, end of year 109.7 109.3 108.5 Treasury stock: Balance, beginning of year 25.7 23.7 18.2 Repurchased 0.4 2.0 5.5 Balance, end of year 26.1 25.7 23.7 Common stock outstanding 83.6 83.6 84.8 In May 2018, our Board authorized the repurchase of $500 million of the Company’s stock (“2018 Repurchase Plan”). During 2020, 2019 and 2018, the Company spent $24.6 million, $143.0 million and $357.7 million to repurchase common stock, respectively. At December 31, 2020, we have $217.2 million remaining under the 2018 Repurchase Plan. Dividends per share of common stock for 2020, 2019, and 2018, were $0.17, $0.64 , and $0.55 , respectively. For the years ended December 31, 2020 and 2019, we paid $14.2 million and $54.2 million in dividends, respectively. In response to the COVID-19 pandemic, we suspended our dividend payments and stock repurchases in April 2020. Rights Plan On April 6, 2020, the Company declared a dividend of one preferred share purchase right (a “right”) for each outstanding share of the Company’s common stock and adopted a stockholder rights plan, as set forth in the rights agreement entered into as of April 6, 2020, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent. The dividend was payable on April 16, 2020 to stockholders of record of the Company’s common stock on such date. In general, the rights plan works by imposing a significant penalty upon any person or group which acquires 15% or more of the outstanding common stock without the prior approval of the board. If the rights become exercisable, each right will allow its holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock for $150.00. This portion of a preferred share will give the stockholder approximately the same dividend, voting and liquidation rights as would one share of common stock. The rights will not be exercisable until ten days after the public announcement that a person or group has become an “acquiring person” (as defined in the rights agreement) by obtaining beneficial ownership of 15% or more of our outstanding common stock. Prior to exercise, the right does not give its holder any dividend, voting, or liquidation rights. The rights will expire on April 6, 2021. The rights were not exercisable at any time through December 31, 2020. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 10 — Revenue We recognize revenue over time for those agreements that are subject to terms similar, or equal to, the Federal Acquisition Regulation Part 52.249-2, which contains a termination for convenience clause, and where the products being produced have no alternative use. The cumulative adjustment to retained earnings upon adoption represents those earnings, which would have been recognized in the previous year had ASC 606 been in effect during that time. As our production cycle is typically six months or less, it is expected that goods related to the revenue represented in that adjustment will be shipped and billed within the next twelve months. Less than half of our agreements contain provisions which would require revenue to be recognized over time. We disaggregate our revenue based on market for analytical purposes. The following table details our revenue by market for the years ended December 31, 2020, 2019 and 2018: (In millions) 2020 2019 2018 Consolidated Net Sales $ 1,502.4 $ 2,355.7 $ 2,189.1 Commercial Aerospace 822.3 1,597.7 1,525.0 Space & Defense 448.5 444.7 369.9 Industrial 231.6 313.3 294.2 Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our consolidated balance sheets as a component of current assets. The activity related to contract assets is as follows Composite Engineered (In millions) Materials Products Total Opening adjustment - January 1, 2019 $ 12.9 $ 37.6 $ 50.5 Net revenue billed (0.1 ) 2.3 2.2 Balance at December 31, 2019 $ 12.8 $ 39.9 $ 52.7 Net revenue billed (5.0 ) (4.6 ) (9.6 ) Balance at December 31, 2020 $ 7.8 $ 35.3 $ 43.1 Contract assets as of December 31, 2020, will be billed and reclassified to accounts receivable during 2021. Accounts receivable, net includes amounts billed to customers where the right to payment is unconditional. |
Other Operating Expense (Income
Other Operating Expense (Income) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating Expense (Income) | Note 11 — Other Operating Expense (Income) We had restructuring charges of $42.8 million for the year ended December 31, 2020 of which $10.1 million related to asset impairments as part of the planned closure of our Windsor, Colorado plant and the remainder was for severance costs related to additional job reductions. Anticipated future cash payments as of December 31, 2020 were $14.2 million. The remaining $15.1 million of other operating expenses relates to the terminated merger with Woodward, Inc. There were no other operating expenses in 2019, however, in 2018 we recorded restructuring expenses of $7.7 million primarily for employee related costs from an action taken at one of our European facilities to improve operational efficiency and productivity. December 31, Restructuring Cash December 31, (In millions) 2019 Charge FX Impact Paid Non-Cash 2020 Employee termination $ 1.6 $ 32.3 $ 0.1 $ (20.6 ) $ 0.8 $ 14.2 Impairment and other — 10.5 — (1.0 ) (9.5 ) — Total $ 1.6 $ 42.8 $ 0.1 $ (21.6 ) $ (8.7 ) $ 14.2 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 12 — Stock-Based Compensation The following table details the stock-based compensation expense by type of award for the years ended December 31, 2020, 2019 and 2018: (In millions) 2020 2019 2018 Non-qualified stock options $ 6.8 $ 4.5 $ 3.6 Restricted stock, service based (“RSUs”) 8.4 6.4 6.1 Restricted stock, performance based (“PRSUs”) (0.7) 6.2 5.8 Employee stock purchase plan 0.2 0.6 0.5 Stock-based compensation expense $ 14.7 $ 17.7 $ 16.0 Tax benefit from stock exercised and converted during the period $ 4.5 $ 9.1 $ 7.8 Non-Qualified Stock Options Non-qualified stock options (“NQOs”) have been granted to our employees and directors under our stock compensation plan. Options granted generally vest over three years and expire ten years from the date of grant. A summary of option activity under the plan for the three years ended December 31, 2020 is as follows: Number of Weighted- Remaining Options Average Contractual Life (In millions) Exercise Price (in years) Outstanding at December 31, 2017 1.7 $ 31.18 5.19 Options granted 0.2 $ 68.15 — Options exercised (0.4 ) $ 16.06 — Outstanding at December 31, 2018 1.5 $ 38.97 5.20 Options granted 0.2 $ 65.56 — Options exercised (0.4 ) $ 25.95 — Outstanding at December 31, 2019 1.3 $ 47.92 5.60 Options granted 0.5 $ 54.82 — Options exercised (0.2 ) $ 32.18 — Outstanding at December 31, 2020 1.6 $ 51.07 6.04 Year Ended December 31, (In millions, except weighted average exercise price) 2020 2019 Aggregate intrinsic value of outstanding options $ 8.3 $ 31.8 Aggregate intrinsic value of exercisable options $ 5.7 $ 28.0 Total intrinsic value of options exercised $ 2.5 $ 22.9 Total number of options exercisable 0.9 0.9 Weighted average exercise price of options exercisable $ 46.29 $ 41.00 Total unrecognized compensation cost on non-vested options (a) $ 3.8 $ 1.5 (a) Unrecognized compensation cost relates to non-vested stock options and is expected to be recognized over the remaining vesting period ranging from one year to three years. Valuation Assumptions in Estimating Fair Value We estimated the fair value of stock options at the grant date using the Black-Scholes option pricing model with the following assumptions for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Risk-free interest rate 0.85 % 2.61 % 2.53 % Expected option life (in years) 5.96 5.99 5.95 Dividend yield 1.1 % 0.8 % 0.7 % Volatility 44.35 % 35.05 % 35.64 % Weighted-average fair value per option granted $ 19.50 $ 22.90 $ 24.36 The weighted-average expected life is derived from the average midpoint between the vesting and the contractual term and considers the effect of both the inclusion and exclusion of post-vesting cancellations during the ten-year Restricted Stock Units — Service Based As of December 31, 2020, a total of 543,391 shares of service based restricted stock units were outstanding, which vest based on years of service under the 2003 and 2013 incentive stock plans. RSUs are granted to key employees, executives, and directors of the Company. The fair value of the RSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized on a straight-line basis over the requisite service period. The stock-based compensation expense recognized is based on an estimate of shares ultimately expected to vest, and therefore it has been reduced for estimated forfeitures. The total compensation expense related to awards granted to retirement-eligible employees is recognized on the grant date. The table presented below provides a summary of the Company’s RSU activity for the years ended December 31, 2020, 2019 and 2018: RSUs Weighted-Average Number of (In millions) Fair Value Grant Date Outstanding at December 31, 2017 0.5 $ 36.75 RSUs granted 0.1 $ 66.63 RSUs issued (0.1 ) $ 41.46 Outstanding at December 31, 2018 0.5 $ 41.65 RSUs granted 0.1 $ 68.85 RSUs issued (0.2 ) $ 44.75 Outstanding at December 31, 2019 0.4 $ 48.06 RSUs granted 0.2 $ 51.51 RSUs issued (0.1 ) $ 51.82 Outstanding at December 31, 2020 0.5 $ 47.98 As of December 31, 2020, there was total unrecognized compensation cost related to non-vested RSUs of $8.8 million, which is to be recognized over the remaining vesting period ranging from one year to three years. Restricted Stock Units — Performance Based As of December 31, 2020, a total of 294,941 shares of performance based restricted stock units were outstanding under the 2003 and 2013 incentive stock plans. The total amount of PRSUs that will ultimately vest is based on the achievement of various financial performance targets set forth by the Company’s Compensation Committee on the date of grant. PRSUs are based on a three-year The table presented below provides a summary, of the Company’s PRSU activity, at original grant amounts, for the years ended December 31, 2020, 2019 and 2018: Weighted- Number of Average PRSUs Grant Date (In millions) Fair Value Outstanding at December 31, 2017 0.4 $ 45.35 PRSUs granted 0.1 $ 68.15 PRSUs issued (0.2 ) $ 43.96 Outstanding at December 31, 2018 0.3 $ 51.75 PRSUs granted 0.1 $ 65.56 PRSUs issued (0.1 ) $ 41.71 Outstanding at December 31, 2019 0.3 $ 60.48 PRSUs granted 0.1 $ 74.74 PRSUs issued (0.1 ) $ 50.50 Outstanding at December 31, 2020 0.3 $ 68.77 As of December 31, 2020, there was total unrecognized compensation cost related to non-vested PRSUs of $1.7 million, which is to be recognized over the remaining vesting period ranging from one year to three years. The final amount of compensation cost to be recognized is dependent upon our financial performance. Stock-Based Compensation Cash Activity During 2020, 2019 and 2018 cash received from stock option exercises was $3.3 million, $10.7 million and $5.1 million, respectively. We used $7.7 million, $6.2 million and $5.9 million in cash related to the shares withheld to satisfy employee tax obligations for RSUs and PRSUs converted during the years ended December 31, 2020, 2019 and 2018, respectively. We classify the cash flows resulting from these tax benefits as financing cash flows. We either issue new shares of our common stock or utilize treasury shares upon the exercise of stock options or the conversion of stock units. Shares Authorized for Grant In January 2019, the Compensation Committee of the Board of Directors of Hexcel Corporation adopted, and stockholders subsequently approved in May 2019, an amendment to the Hexcel Corporation 2013 Incentive Stock Plan (the “Plan”) that increased the number of shares of the Company’s common stock authorized for issuance under the Plan by 3,300,000 shares. As of December 31, 2020, an aggregate of 4.0 million shares were authorized for future grant under our stock plan, which covers stock options, RSUs, PRSUs and at the discretion of Hexcel, could result in the issuance of other types of stock-based awards. Employee Stock Purchase Plan (“ESPP”) The Company offered an ESPP, which allowed for eligible employees to contribute up to 10% of their base earnings, to a maximum of $25,000 in a calendar year, toward the quarterly purchase of our common stock at a purchase price equal to 85% of the fair market value of the common stock. There were 35,000 and 48,236 ESPP shares purchased in 2020 and 2019, respectively. The ESPP was suspended in April 2020 in response to the COVID pandemic. |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Note 13 — Net Income Per Common Share Computations of basic and diluted net income per common share for the years ended December 31, 2020, 2019 and 2018, are as follows: (In millions, except per share data) 2020 2019 2018 Basic net income per common share: Net income $ 31.7 $ 306.6 $ 276.6 Weighted average common shares outstanding 83.8 84.9 87.9 Basic net income per common share $ 0.38 $ 3.61 $ 3.15 Diluted net income per common share: Weighted average common shares outstanding — Basic 83.8 84.9 87.9 Plus incremental shares from assumed conversions: Restricted stock units 0.1 0.3 0.4 Stock options 0.1 0.6 0.7 Weighted average common shares outstanding — Dilutive 84.0 85.8 89.0 Dilutive net income per common share $ 0.38 $ 3.57 $ 3.11 Anti-dilutive shares outstanding, excluded from computation 0.9 0.1 0.2 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 14 — Derivative Financial Instruments Interest Rate Swap Agreements Prior to January 2020, we had interest rate swaps that swap the EURIBOR on our European term loan for a fixed rate. We terminated these swaps in January 2020 when we repaid the European term loan. These interest rate swaps were designated as cash flow hedges to floating rate bank loans. The Euro swaps had final maturities dates between June 2023 and June 2024, in annual installments. The fair value of interest rate swap agreements was recorded in other assets or as a liability with a corresponding amount to other comprehensive income. At December 31, 2020, we had no interest rate swap agreements outstanding. The fair value of the interest rate swaps was a liability of $0.6 million at December 31, 2019. The Company had treasury lock agreements to protect against unfavorable movements in the benchmark treasury rate related to the issuance . These hedges were designated as cash flow hedges for hedge accounting purposes thus any change in fair value was recorded as a component of other comprehensive income. As part of the issuance of our senior notes, we net settled these derivatives for $10 million in cash. As a result of settling these derivatives the previously deferred gains recorded in other comprehensive income will be released to interest expense over the life of the senior notes. The effect of these settled treasury locks will reduce the effective interest rate on the senior notes by approximately 0.25%. Cross Currency and Interest Rate Swap Agreements In November 2020 we entered into a cross currency and interest rate swap which is designated as a cash flow hedge of a €270 million, 5-year amortizing, intercompany loan between one of our European subsidiaries and the US parent company. Changes in the spot exchange are recorded to the general ledger and offset the fair value re-measurement of the hedged item. The net difference in the interest rates coupons is recorded as a credit to interest expense. The derivative swaps €270 million bearing interest at a fixed rate of 0.30% for $319.9 million plus fixed rate interest of 1.115%. The interest coupons settle semi-annually. The principal will amortize each year on November 15, as follows: for years 1 through 4, beginning November 15, 2021, €50 million versus $59.2 million, and a final settlement on November 15, 2025 of €70 million versus $82.9 million. The carrying value of the derivative at December 31, 2020 is a current asset of $0.3 million and a long-term liability of $11.1 million . Foreign Currency Forward Exchange Contracts A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries’ functional currencies, being either the Euro or the British pound sterling. We entered into contracts to exchange U.S. dollars for Euros and British pound sterling through June 2023. The aggregate notional amount of these contracts was $250.3 million at December 31, 2020 and $426.9 million at December 31, 2019. The purpose of these contracts is to hedge a portion of the forecasted transactions of European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges was a gain of $10.9 million and losses of $11.1 million and $25.8 million, for the years ended December 31, 2020, 2019 and 2018, respectively, and are recorded in other comprehensive income. At December 31, 2020, $16.0 million of the carrying amount of these contracts was classified in other assets ($10.7 million of which was recorded in prepaid expenses and other current assets) and $2.5 million as liabilities (less than $0.1 In addition, we enter into foreign exchange forward contracts which are not designated as hedges. These are used to provide an offset to transactional gains or losses arising from the remeasurement of non-functional monetary assets and liabilities such as accounts receivable. The change in the fair value of the derivatives is recorded in the statement of operations. There are no credit contingency features in these derivatives. During the years ended December 31, 2020, 2019 and 2018, we recognized net foreign exchange losses of $2.4 million, gains of $0.4 million, and losses of $4.3 million, respectively, in the consolidated statements of operations. The carrying amount of the contracts for asset and liability derivatives not designated as hedging instruments was $0.1 million of current liabilities on our consolidated balance sheets. The activity, net of tax, in accumulated other comprehensive loss related to foreign currency forward exchange contracts for the years ended December 31, 2020, 2019 and 2018 was as follows: (In millions) 2020 2019 2018 Unrealized (loss) gain at beginning of period, net of tax $ (8.4 ) $ (10.6 ) $ 8.6 Loss reclassified to net sales 10.9 10.1 0.9 Increase (decrease) in fair value 8.1 (7.9 ) (20.1 ) Unrealized gain (loss) at end of period, net of taxes $ 10.6 $ (8.4 ) $ (10.6 ) Unrealized gain of $6.5 million recorded in accumulated other comprehensive loss, net of tax of $1.8 million, as of December 31, 2020 are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded. The impact of credit risk adjustments was immaterial for the three years. Commodity Swap Agreements On occasion we enter into commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of December 31, 2020, the Company had commodity swap agreements with a notional value of $9.1 million. The swaps mature monthly from January 2021 through June 2022. The swaps are accounted for as a cash flow hedge of our forward raw material purchases. The fair value of the commodity swap agreements was an asset of $2.2 million ($1.5 million of which was recorded in prepaid expenses and other current assets) and a liability of $1.1 million at December 31, 2020 and $5.4 million ($1.1 million of which is in other non-current liabilities) at December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 — Commitments and Contingencies We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment and health and safety matters. While it is impossible to predict the ultimate resolution of litigation, investigations and claims asserted against us , we believe, based upon our examination of currently available information, our experience to date, and advice from legal counsel, that, after taking into account our existing insurance coverage and amounts already provided for, the currently pending legal proceedings against us will not have a material adverse impact on our consolidated results of operations, financial position or cash flows . Lower Passaic River Study Area Hexcel together with approximately 48 other PRPs that comprise the Lower Passaic Cooperating Parties Group (the “CPG”) are subject to a May 2007 Administrative Order on Consent (“AOC”) with the EPA requiring the CPG to perform a Remedial Investigation/Feasibility Study of environmental conditions of a 17-mile stretch of the Passaic River in New Jersey (the “Lower Passaic River”). We were included in the CPG based on our operations at our former manufacturing site in Lodi, New Jersey. In March 2016, the EPA issued a Record of Decision (“ROD”) setting forth the EPA’s selected remedy for the lower eight nine for the lower eight miles of the Lower Passaic River. In December 2020, the allocator issued its non-binding report on PRP liability (including Hexcel’s) to the EPA, which did not result in any change to Hexcel’s accrual for the Passaic matter. We do not know to what extent, if at all, this non-binding report will impact the ultimate outcome of the matter. In October 2016, pursuant to a settlement agreement with the EPA, Occidental Chemical Corporation (“OCC”), one of the PRPs commenced performance of the remedial design required by the ROD, reserving its right of cost contribution from all other PRPs. In June 2018, OCC filed suit against approximately 120 parties, including Hexcel, in the U.S. District Court of the District of New Jersey seeking cost recovery and contribution under CERCLA related to the Lower Passaic River. In July 2019, the court granted in part and denied in part the defendants’ motion to dismiss. In August 2020, the court granted defendants’ motion for summary judgement for certain claims. Discovery for the remaining claims is ongoing. The accrual balance related to the Lower Passaic River site was $2.1 million at December 31, 2020 and December 31, 2019. Given the uncertainty associated with the many elements of the Superfund process for the Lower Passaic River, the amounts accrued may not be indicative of the amounts for which we will ultimately be responsible. Environmental remediation reserve activity for the three years ended December 31, 2020 was as follows: (In millions) 2020 2019 2018 Beginning remediation accrual balance $ 2.5 $ 2.7 2.8 Current period expenses — — 0.3 Cash expenditures (0.1 ) (0.2 ) (0.4 ) Ending remediation accrual balance $ 2.4 $ 2.5 2.7 Summary of Environmental Reserves Our estimate of liability as a PRP and our remaining costs associated with our responsibility to remediate the Lower Passaic River and other sites are accrued in the consolidated balance sheets. As of both December 31, 2020 and December 31, 2019, our aggregate environmental related accruals were $2.4 million and $2.5 million, respectively, of which $0.5 million and $0.6 million, for the aforementioned years, respectively, were included in current other accrued liabilities with the remainder included in other non-current liabilities. As related to certain environmental matters the accrual was estimated at the low end of a range of possible outcomes since no amount within the range is a better estimate than any other amount. If we had accrued, for those sites where we are able to estimate our liability, at the high end of the range of possible outcomes, our accrual would have been $16 million higher at December 31, 2020 and December 31, 2019. These accruals can change significantly from period to period due to such factors as additional information on the nature or extent of contamination, the methods of remediation required, changes in the apportionment of costs among responsible parties and other actions by governmental agencies or private parties, or the impact, if any, of being named in a new matter. Product Warranty Warranty expense for the years ended December 31, 2020, 2019 and 2018, and accrued warranty cost, included in “other accrued liabilities” in the consolidated balance sheets were as follows: Product (In millions) Warranties Balance as of December 31, 2017 $ 3.6 Warranty expense 4.6 Deductions and other (3.4 ) Balance as of December 31, 2018 $ 4.8 Warranty expense 2.9 Deductions and other (2.2 ) Balance as of December 31, 2019 $ 5.5 Warranty expense 1.7 Deductions and other (4.6 ) Balance as of December 31, 2020 $ 2.6 |
Supplemental Cash Flow
Supplemental Cash Flow | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow | Note 16 — Supplemental Cash Flow Supplemental cash flow information, for the years ended December 31, 2020, 2019 and 2018, consisted of the following: (In millions) 2020 2019 2018 Cash paid for: Interest $ 41.6 $ 44.7 $ 37.2 Taxes $ (0.2 ) $ 56.9 $ 36.5 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 17 — Accumulated Other Comprehensive Loss Comprehensive income represents net income and other gains and losses affecting stockholders’ equity that are not reflected in the consolidated statements of operations. The components of accumulated other comprehensive loss as of December 31, 2020 and 2019 were as follows: Unrecognized Net Defined Benefit Change in Fair Value of Derivatives Foreign Currency (In millions) Plan Costs Products Translation Total Balance at December 31, 2018 $ (15.4 ) $ (5.8 ) $ (86.8 ) $ (108.0 ) Other comprehensive loss before reclassifications (6.2 ) (12.8 ) (2.6 ) (21.6 ) Amounts reclassified from accumulated other comprehensive loss (0.8 ) 11.7 - 10.9 Other comprehensive loss (7.0 ) (1.1 ) (2.6 ) (10.7 ) Balance at December 31, 2019 $ (22.4 ) $ (6.9 ) $ (89.4 ) $ (118.7 ) Other comprehensive loss before reclassifications (16.6 ) 0.3 54.6 38.3 Amounts reclassified from accumulated other comprehensive loss (1.4 ) 22.2 — 20.8 Other comprehensive loss (18.0 ) 22.5 54.6 59.1 Balance at December 31, 2020 $ (40.4 ) $ 15.6 $ (34.8 ) $ (59.6 ) The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the year ended December 31, 2020 were net gains of $1.0 million less taxes of $0.2 million. The amounts reclassified to earnings from the change in fair value of the derivatives component of accumulated other comprehensive loss for the year ended December 31, 2020 were net losses of $14.5 million less taxes of $3.5 million related to foreign currency forward exchange contracts, net losses of $9.3 million less taxes of $2.2 million related to interest swaps and net losses of $5.5 million less taxes of $1.3 million related to commodity swaps. The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the year ended December 31, 2019 were $1.0 The amounts reclassified to earnings from the unrecognized net defined benefit plan costs component of accumulated other comprehensive loss for the year ended December 31, 2018 were $0.7 million less taxes of $0.2 million. Amounts reclassified to earnings from the change in fair value of the derivative component of accumulated other comprehensive loss for the year ended December 31, 2018 were not significant. The 2018 amounts include $1.6 million for the reclass to retained earnings as a result of the adoption of ASU No. 2018-02, Income Statement-Reporting Comprehensive Income. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18 — The financial results for our segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our segments based on operating income, and generally account for intersegment sales based on arm’s length prices. We report two segments, Composite Materials and Engineered Products. Corporate and certain other expenses are not allocated to the segments, except to the extent that the expense can be directly attributable to the segment. Corporate & Other is shown to reconcile to Hexcel’s consolidated results. In addition to the product line-based segmentation of our business, we also monitor sales into our principal end markets as a means to understanding demand for our products. The following table presents financial information on our segments as of December 31, 2020, 2019 and 2018, and for the years then ended. (In millions) Composite Materials Engineered Products Corporate & Other Total Third-party sales 2020 $ 1,185.9 $ 316.5 $ — $ 1,502.4 2019 1,863.1 492.6 — 2,355.7 2018 1,770.5 418.6 — 2,189.1 Intersegment sales 2020 $ 53.9 $ 2.5 $ (56.4 ) $ — 2019 83.4 0.8 (84.2 ) — 2018 74.6 0.1 (74.7 ) — Operating income (loss) 2020 $ 60.7 $ 9.4 $ (56.0 ) $ 14.1 2019 411.3 72.0 (58.1 ) 425.2 2018 373.8 50.6 (53.2 ) 371.2 Depreciation and amortization 2020 $ 125.5 $ 15.3 $ 0.1 $ 140.9 2019 126.5 15.1 0.1 141.7 2018 113.9 9.1 0.1 123.1 Equity in earnings from affiliated companies 2020 $ (0.3 ) $ (1.1 ) $ (0.2 ) $ (1.6 ) 2019 (0.3 ) 4.3 (0.3 ) 3.7 2018 — 5.6 — 5.6 Other operating expense 2020 $ 32.1 $ 9.8 $ 16.0 $ 57.9 2019 - - - - 2018 - 7.7 - 7.7 Segment assets 2020 $ 2,382.3 $ 473.8 $ 61.7 $ 2,917.8 2019 2,669.6 465.2 (6.2) 3,128.6 2018 2,501.9 272.9 49.3 2,824.1 Investments in affiliated companies 2020 $ 2.0 $ 35.0 $ 7.7 $ 44.7 2019 2.2 36.1 8.2 46.5 2018 2.4 32.1 14.2 48.7 Accrual basis additions to property, plant and equipment 2020 $ 38.6 $ 3.9 $ — $ 42.5 2019 185.8 5.2 — 191.0 2018 173.5 5.6 — 179.1 Geographic Data Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2020, 2019 and 2018: (In millions) 2020 2019 2018 Net Sales by Geography (a): United States $ 792.6 $ 1,246.9 $ 1,055.9 International France 226.1 364.3 369.8 Spain 101.5 166.6 189.5 Germany 127.1 221.3 216.0 United Kingdom 104.8 168.9 167.3 Austria 83.6 110.1 111.4 Other 66.7 77.6 79.2 Total international 709.8 1,108.8 1,133.2 Total consolidated net sales $ 1,502.4 $ 2,355.7 $ 2,189.1 Net Sales to External Customers (b): United States $ 703.5 $ 1,083.3 $ 909.8 International Germany 124.6 212.8 233.1 France 106.7 191.9 201.7 Spain 107.4 188 194.1 United Kingdom 37.7 77.4 79.0 Other 422.5 602.3 571.4 Total international 798.9 1,272.4 1,279.3 Total $ 1,502.4 $ 2,355.7 $ 2,189.1 Long-lived Assets (c): United States $ 1,523.3 $ 1,609.2 $ 1,332.1 International France 398.5 387.1 397.7 United Kingdom 144.4 151.9 146.1 Spain 57.7 57.2 56.6 Other 86.6 84.3 86.3 Total international 687.2 680.5 686.7 Total consolidated long-lived assets $ 2,210.5 $ 2,289.7 $ 2,018.8 (a) Net sales by geography based on the location in which the product sold was manufactured. (b) Net sales to external customers based on the location to which the product sold was delivered. (c) Long-lived assets primarily consist of property, plant and equipment, net and goodwill at December 31, 2020, 2019 and 2018. Also included at December 31, 2020 and 2019 are right of use assets related to operating leases. Significant Customers and Suppliers Approximately 33% and 39% of our 2020 and 2019 net sales, respectively, were to Airbus and its subcontractors. Of the 33% of overall sales to Airbus and its subcontractors in 2020, 30% related to Commercial Aerospace market applications and 3% related to Space & Defense market applications. Approximately 19% and 25% of our 2020 and 2019 net sales were to Boeing and related subcontractors. Of the 19% of overall sales to Boeing and its subcontractors in 2020, 16% related to Commercial Aerospace market applications and 3% related to Space & Defense market applications. In the Composite Materials segment approximately 13% of sales for 2020, 17% for 2019 and 16% for 2018, were to Boeing and its subcontractors. Approximately 38%, 44% and 46% of sales for 2020, 2019 and 2018, respectively were to Airbus and its subcontractors. In the Engineered Products segment approximately 40%, 55% and 63% of sales for 2020, 2019 and 2018, respectively were to Boeing and its subcontractors . A significant decline in business with Airbus or Boeing could materially impact our business, operating results, prospects and financial condition. Certain key raw materials we consume are available from relatively few sources, and in many cases the cost of product qualification makes it impractical to develop multiple sources of supply. The lack of availability of these materials could under certain circumstances materially impact our consolidated results of operations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 19 — Acquisitions During the first quarter of 2019, we acquired all of the outstanding equity interests in ARC Technologies LLC, a leading supplier of custom RF/EMI and microwave absorbing composite materials for military, aerospace and industrial applications, for $163.2 million. This acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 20— Fair Value Measurements The fair values of our financial instruments are classified into one of the following categories: • Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2: Observable inputs other than quoted prices in active markets but corroborated by market data. • Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk. At December 31, 2020 and 2019, we had one liability which utilized level 3 inputs. For derivative assets and liabilities that utilize Level 2 inputs, we prepare estimates of future cash flows of our derivatives, which are discounted to a net present value. The estimated cash flows and the discount factors used in the valuation model are based on observable inputs, and incorporate non-performance risk (the credit standing of the counterparty when the derivative is in a net asset position, and the credit standing of Hexcel when the derivative is in a net liability position). The fair value of these assets and liabilities was approximately $18.4 million and $14.8 million, and approximately $4.3 million and $21.7 million, respectively, at December 31, 2020 and 2019. In addition, the fair value of these derivative contracts, which are subject to a master netting arrangement under certain circumstances, is presented on a gross basis in the consolidated balance sheet. Below is a summary of valuation techniques for all Level 2 financial assets and liabilities: • Interest rate swap — valued using LIBOR yield curves at the reporting date. No amounts were outstanding as of December 31, 2020. The fair value of the liabilities was $0.6 million at December 31, 2019. • Cross Currency and Interest Rate Swap Agreements — valued using the USD Secured Overnight Financing Rate (“SOFR”) curves and quoted forward foreign exchange prices at the reporting date. The fair value of the assets and liabilities were $0.3 million and $11.1 million at December 31, 2020. No amounts were outstanding as of December 31, 2019. • Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date. The fair value of assets and liabilities at December 31, 2020 was $16.0 million and $2.6 million, respectively. The fair value of the assets and liabilities at December 31, 2019 was $4.3 million and $15.7 million, respectively. • Commodity swap agreements — valued using quoted forward commodity prices at the reporting date. The fair value of the assets and liabilities at December 31, 2020 was $2.2 million and $1.1 million, respectively. The fair value of liabilities at December 31, 2019 was $5.4 million. Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in 2020 that would reduce the receivable amount owed, if any, to the Company. Liabilities classified as Level 3; During 2017, we recorded a contingent consideration liability related to our acquisition of certain assets of Oxford Performance Materials, Inc. for $2.9 million, of which the balance was $3.3 million and $3.1 million at December 31, 2020 and 2019, respectively. Changes to the initial amount recorded relates to interest accretion only. This amount was estimated based on certain contractual stipulations which requires us to make payments to the seller in the future based upon the achievement of certain results. We used our current forecasted results of the acquired operations and discounted these future amounts using an internally derived discount rate. Future amounts payable may differ from this estimate by the difference between the actual and forecasted results. |
Quarterly Financial and Market
Quarterly Financial and Market Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial and Market Data (Unaudited) | Note 21 - Quarterly Financial and Market Data (Unaudited) Quarterly financial and market data for the years ended December 31, 2020 and 2019 were: First Second Third Fourth (In millions, except per share data and market price) Quarter Quarter Quarter Quarter 2020 Net sales $ 541.0 $ 378.7 $ 286.9 $ 295.8 Gross margin 140.9 54.9 13.5 30.4 Operating income (loss) 65.7 6.4 (37.6 ) (20.4 ) Net income (loss) 42.4 (1.0 ) 9.7 (19.4 ) Net income per common share: Basic $ 0.51 $ (0.01 ) $ 0.12 $ (0.23 ) Diluted $ 0.50 $ (0.01 ) $ 0.12 $ (0.23 ) Market price: High $ 79.89 $ 47.91 $ 46.71 $ 56.00 Low $ 29.51 $ 26.75 $ 32.57 $ 31.71 2019 Net sales $ 609.9 $ 609.0 $ 572.5 $ 564.3 Gross margin 167.2 168.8 157.9 146.5 Operating income 102.8 115.1 109.9 97.4 Net income 72.2 80.9 80.3 73.2 Net income per common share: Basic $ 0.85 $ 0.95 $ 0.94 $ 0.87 Diluted $ 0.84 $ 0.94 $ 0.93 $ 0.86 Market price: High $ 72.65 $ 80.88 $ 85.33 $ 80.29 Low $ 56.18 $ 68.00 $ 77.01 $ 73.31 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22 — Subsequent Event On January 28, 2021 (the “Effective Date”), we entered into the Second Amendment (the “Second Amendment”) to the Credit Agreement, dated as of June 20, 2019, by and among the Company, as borrower, the lenders party thereto and Citizens Bank, N.A., as administrative agent, as amended by the First Amendment dated September 28, 2020 (the “Credit Agreement” and as amended by the Amendment the “Amended Credit Agreement”). Pursuant to the Amendment, certain terms of the Credit Agreement were modified for a period beginning on the Effective Date to and including March 31, 2022 (unless earlier terminated by the Company in accordance with the Amended Credit Agreement, (the “Liquidity Covenant Period”). During the Liquidity Covenant Period, we will not be subject to a maximum leverage ratio covenant but will instead be required to maintain Liquidity (as defined in the Amended Credit Agreement) of at least $250 million. Additionally, during such period, the Company will be subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees are increased; the incremental facility will not be available; and if the Company’s public debt rating is downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we will be required to grant liens on certain of our assets, which liens will be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. The Company’s current public debt rating is BBB-/Baa3. Additionally, the Amendment provides that the Company will not be subject to an interest coverage ratio covenant until the test period ending December 31, 2021. Finally, in connection with the Second Amendment, revolving commitments under the Amended Credit Agreement were reduced to $750 million. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Hexcel Corporation and Subsidiaries Valuation and Qualifying Accounts Balance at beginning Charged to Deductions Balance (In millions) of year expense/(recovery) and other at end of year Year Ended December 31, 2020 Allowance for doubtful accounts $ 0.6 $ 0.1 $ 0.1 $ 0.8 Valuation allowance for deferred tax assets 44.7 (39.5 ) 1.7 6.9 Year Ended December 31, 2019 Allowance for doubtful accounts $ 0.3 $ 0.3 $ — $ 0.6 Valuation allowance for deferred tax assets 48.8 (4.1 ) 0.0 44.7 Year Ended December 31, 2018 Allowance for doubtful accounts $ 0.3 $ 1.4 $ (1.4 ) $ 0.3 Valuation allowance for deferred tax assets 54.9 (3.2 ) (2.9 ) 48.8 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Hexcel Corporation and its subsidiaries after elimination of all intercompany accounts, transactions, and profits. At December 31, 2020, we had a 50% equity ownership investment in the joint venture described above and a 25% equity investment in Hexcut Services. These investments are accounted for using the equity method of accounting. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and are in conformity with U.S. generally accepted accounting principles ("GAAP"). Our fiscal year end is December 31. Unless otherwise stated, all years and dates refer to our fiscal year. |
Use of Estimates | Use of Estimates Preparation of the accompanying consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with an original maturity of three months or less when purchased. Our cash equivalents are held in prime money market investments with strong sponsor organizations which are monitored on a continuous basis. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the average cost methods. Inventory is reported at its estimated net realizable value based upon our historical experience with inventory becoming obsolete due to age, changes in technology and other factors. Inventory cost consists of materials, labor, and manufacturing related overhead associated with the purchase and production of inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant, and equipment, including capitalized interest applicable to major project expenditures, is recorded at cost. Asset and accumulated depreciation accounts are eliminated for dispositions, with resulting gains or losses reflected in earnings. Depreciation of plant and equipment is provided generally using the straight-line method over the estimated useful lives of the various assets. The estimated useful lives range from 10 to 40 years for buildings and improvements and from 3 to 25 years for machinery and equipment. Repairs and maintenance are expensed as incurred, while major replacements and betterments are capitalized and depreciated over the remaining useful life of the related asset. |
Leases | Leases The Company regularly enters into operating leases for certain buildings, equipment, parcels of land, and vehicles. As of January 1, 2019, we adopted the provisions of Accounting Standards Codification (“ASC”) 842, accounting for leases. Accordingly, we capitalize all agreements with terms for more than one year, where a right of use asset was identified. Generally, amounts capitalized represent the present value of minimum lease payments over the term, and the duration is equivalent to the base agreement, however, management used certain assumptions when determining the value and duration of leases. These assumptions include, but are not limited to, the probability of renewing a lease term, certain future events impacting lease payments, as well as fair values not explicit in an agreement. Such assumptions impacted the duration of many of our building leases, as well as certain of our equipment leases. In addition, we elected certain expedients, such as the election to capitalize lease and non-lease components of an agreement as a single component for purposes of simplicity, with the exception of those related to equipment and machinery. In determining the lease renewal, management considers the need and ability to substitute a given asset, as well as certain conditions such as related contractual obligations to our customers (i.e., a contractual obligation of a customer requiring certain manufacturing proximities). In determining fair value, management considers the stand-alone value of an asset in an ordinary market as well as incurring certain costs to terminate an agreement. Most of our leases do not include variable payments but contain scheduled escalations. Any lease payments tied to certain future indexes are adjusted on a go forward basis as those indexes become known. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets of an acquired business. Goodwill is tested for impairment at the reporting unit level annually, in the fourth quarter, or when events or changes in circumstances indicate that goodwill might be impaired. The Company performed a quantitative assessment using market and income approaches and determined that the fair values of our reporting units were not less than their carrying values and that no impairment exists. We amortize the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. We have indefinite lived intangible assets which are not amortized but are tested annually for impairment during the fourth quarter of each year, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of the indefinite lived intangible exceeds the fair value, it is written down to its fair value, which is calculated using a discounted cash flow model. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including property, plant and equipment and definite-lived intangible assets, for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. These indicators include, but are not limited to: a significant decrease in the market price of a long-lived asset, a significant change in the extent or manner in which a long-lived asset is used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of a long-lived asset, an accumulation of costs significantly in excess of the amount expected for the acquisition or construction of a long-lived asset, a current period operating or cash flow loss combined with a history of losses associated with a long-lived asset and a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated life. |
Software Development Costs | Software Development Costs Costs incurred to develop software for internal use are accounted for under ASC 350-40, “Internal-Use Software.” |
Debt Financing Costs | Debt Financing Costs Debt financing costs are deferred and amortized to interest expense over the life of the related debt. We capitalize financing fees related to our revolving credit facility and record them as a non-current asset in our consolidated balance sheets. Financing fees related to our bonds and notes are capitalized and recorded as a non-current contra liability in our consolidated balance sheets. At December 31, 2020 and 2019, deferred financing costs, recorded as a non-current asset were |
Share-Based Compensation | Share-Based Compensation The fair value of Restricted Stock Units (“RSUs”) is equal to the market price of our stock at date of grant and is amortized to expense ratably over the vesting period. Performance restricted stock units (“PRSUs”) are a form of RSUs in which the number of shares ultimately received depends on the extent to which we achieve a specified performance target. The fair value of the PRSU is based on the closing market price of the Company’s common stock on the date of grant and is amortized straight-line over the total vesting period. A change in the performance measure expected to be achieved is recorded as an adjustment in the period in which the change occurs. We use the Black-Scholes model to calculate the fair value for all stock option grants, based on the inputs relevant on the date granted, such as the market value of our shares, prevailing risk-free interest rate, etc. The value of the portion of the award, after considering potential forfeitures, that is ultimately expected to vest is recognized as expense in our consolidated statements of operations on a straight-line basis over the requisite service periods. The value of RSUs, PRSUs and non-qualifying options awards for retirement eligible employees is expensed on the grant date as they are fully vested. |
Currency Translation | Currency Translation The assets and liabilities of international subsidiaries are translated into U.S. dollars at year-end exchange rates, and revenues and expenses are translated at average exchange rates during the year. Cumulative currency translation adjustments are included in “accumulated other comprehensive loss” in the stockholders’ equity section of the consolidated balance sheets. |
Revenue Recognition | Revenue Recognition The Company follows the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Revenue is predominately derived from a single performance obligation under long-term agreements with our customers and pricing is fixed and determinable. We have determined that individual purchase orders (“PO”), whose terms and conditions taken with a master agreement, create the ASC 606 contracts which are generally short-term in nature. For those sales, which are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions. Under ASC 606 we applied the five-step approach resulting in revenue being recognized over time for customer contracts that contain a termination for convenience clause (“T for C’) and the products produced do not have an alternative use. For revenue recognized over time, we estimate the amount of revenue earned at a given point during the production cycle based on certain costs factors such as raw materials and labor, incurred to date, plus a reasonable profit. We believe this method, which is the cost-to-cost input method, best estimates the revenue recognizable for T for C Agreements. All other revenue is recognized at a point in time. We have elected the following practical expedients allowed under ASC 606: • Payment terms with our customers which are one year or less, are not considered a performance obligation. • Shipping and handling fees and costs incurred in connection with products sold are recorded in cost of sales in our consolidated statements of operations and are not considered a performance obligation to our customers. • Our performance obligations on our orders are generally satisfied within one year from a given reporting date therefore we omit disclosure of the transaction price allocated to remaining performance obligations on open orders. |
Product Warranty | Product Warranty We provide for an estimated amount of product warranty at the point a claim is probable and estimable. This estimated amount is provided by product and based on current facts, circumstances, and historical warranty experience. |
Research and Technology | Research and Technology Significant costs are incurred each year in connection with research and technology (“R&T”) programs that are expected to contribute to future earnings. Such costs are related to the development and, in certain instances, the qualification and certification of new and improved products and their uses. R&T costs are expensed as incurred. |
Income Taxes | Income Taxes We provide for income taxes using the asset and liability approach . more likely than not, based on the evaluation of positive and negative evidence, that the deferred tax assets will be realized. The realization of deferred tax assets is dependent upon the timing and magnitude of future taxable income prior to the expiration of the deferred tax assets’ attributes. When events and circumstances so dictate, we evaluate the realizability of our deferred tax assets and the need for a valuation allowance by forecasting future taxable income. Investment tax credits are recorded on a flow-through basis, which reflects the credit in net income as a reduction of the provision for income taxes in the same period as the credit is realized for federal income tax purposes. In addition, we recognize interest accrued related to unrecognized tax benefits as a component of interest expense and penalties as a component of income tax expense in the consolidated statements of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable. Two customers and their related subcontractors accounted for approximately 52% of our annual net sales in 2020, 64% in 2019 and 66% in 2018. Refer to Note 18 for further information on significant customers. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables. We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends, and other financial information. As of December 31, 2020 and 2019 the allowance for doubtful accounts was $0.8 million, and $0.6 million, respectively. Bad debt expense was immaterial for all years presented. |
Derivative Financial Instruments | Derivative Financial Instruments We use various financial instruments, including foreign currency forward exchange contracts, commodity, and interest rate agreements, to manage our exposure to market fluctuations by generating cash flows that offset, in relation to their amount and timing, the cash flows of certain foreign currency denominated transactions or underlying debt instruments. We mark our foreign exchange forward contracts to fair value. When the derivatives qualify, we designate our foreign currency forward exchange contracts as cash flow hedges against forecasted foreign currency denominated transactions and report the changes in fair value of the instruments in “accumulated other comprehensive loss” until the underlying hedged transactions affect income. We designate our interest rate agreements as fair value or cash flow hedges against specific debt instruments and recognize interest differentials as adjustments to interest expense as the differentials may occur; the fair value of the interest rate swaps is recorded in other assets or other long-term liabilities with a corresponding amount to “accumulated other comprehensive loss”. We do not use financial instruments for trading or speculative purposes. In accordance with accounting guidance, we recognize all derivatives as either assets or liabilities on our consolidated balance sheets and measure those instruments at fair value. |
Self-insurance | Self-insurance We are self-insured up to specific levels for certain medical and health insurance and workers’ compensation plans. Accruals are established based on actuarial assumptions and historical claim experience and include estimated amounts for incurred but not reported claims. |
Asset Held for Sale | Asset Held for sale The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. In early November 2020 we closed our wind energy prepreg production facility in Windsor, Colorado and as a result, certain plant assets to be sold have been recorded in “Assets held for sale” in the consolidated Balance Sheets at December 31, 2020. |
New Accounting Standards | New Accounting Standards Accounting Standards Recently Implemented In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326). The Accounting Standards Codification 326, Financial Instruments- Credit Losses (“ASC 326”) requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. We adopted the update, effective January 1, 2020, applying this standard to our Accounts Receivable and Contract Assets and there was no impact. Our high-quality credit review practice and good customer relationships has resulted in accounts receivable write offs below 0.5% of our annual sales. Due to the requirements of ASC 326, we have reviewed and refined our bad debt reserve process. Management reviews the average annual charge-off rate along with an assessment of current micro and macro-economic factors to determine any required reserves. If at any time management finds that there are significant changes to any of these contributing factors, the reserve will be adjusted accordingly. In the year ended December 31, 2020 we recorded $0.2 million of reserves and there were no write-offs against receivables resulting in a reserve balance of $0.8 million at December 31, 2020 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). approximately $50 million of Accounting Standards to be Implemented In August 2018, the FASB issued ASU No. 2018-14 , Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) , In December 2019, the FASB issued ASU No. 2019-12 , Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, (In millions) 2020 2019 Raw materials $ 94.9 $ 154.9 Work in progress 23.6 40.9 Finished goods 95.0 137.3 Total inventory $ 213.5 $ 333.1 |
Net Property, Plant and Equip_2
Net Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | December 31, (In millions) 2020 2019 Land $ 107.0 $ 105.4 Buildings 686.5 687.6 Equipment 2,108.8 2,026.9 Construction in progress 231.5 249.3 Finance lease 5.9 5.9 Property, plant and equipment 3,139.7 3,075.1 Less accumulated depreciation (1,265.5 ) (1,132.3 ) Net property, plant and equipment $ 1,874.2 $ 1,942.8 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Goodwill and Other Purchased Intangible Assets | Changes in the carrying amount of gross goodwill and other purchased intangibles for the years ended December 31, 2020 and 2019, by segment, are as follows: (In millions) Composite Materials Engineered Products Total Balance as of December 31, 2018 $ 98.2 $ 44.1 $ 142.3 Amortization expense (2.0 ) (4.9 ) (6.9 ) Additions — 145.1 145.1 Currency translation adjustments and other — (0.1 ) (0.1 ) Balance as of December 31, 2019 $ 96.2 $ 184.2 $ 280.4 Amortization expense (1.9 ) (5.0 ) (6.9 ) Currency translation adjustments and other 4.4 (0.1 ) 4.3 Balance as of December 31, 2020 $ 98.7 $ 179.1 $ 277.8 |
Schedule of Amortization Related to Definite Lived Intangible Assets | Amortization related to the definite lived intangible assets for the next five years and thereafter is as follows: (In millions) 2021 $ 7.0 2022 7.0 2023 7.0 2024 6.7 2025 6.7 Thereafter 41.0 Total $ 75.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Capital Lease Obligations | December 31, December 31, (In millions) 2020 2019 Current portion of finance lease $ 0.9 $ 0.6 Current portion of Euro term loan — 8.9 Current portion of debt 0.9 9.5 Non-current portion of Euro term loan — 41.5 Senior unsecured credit facility 228.0 313.0 4.7% senior notes — due 2025 300.0 300.0 3.95% senior notes — due 2027 400.0 400.0 Senior notes — original issue discount (1.5 ) (1.7 ) Senior notes — deferred financing costs (3.5 ) (4.2 ) Non-current portion of finance leases and other 2.5 2.0 Long-term debt 925.5 1,050.6 Total debt $ 926.4 $ 1,060.1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Undiscounted Cash Payments Related to Right of Use Assets | The following table lists the schedule of future undiscounted cash payments related to right of use assets by year: (In millions) 2021 $ 12.0 2022 10.1 2023 8.9 2024 7.8 2025 5.7 Thereafter 23.1 Total $ 67.6 |
Schedule of Lease-related Assets and Liabilities | Lease-related assets and liabilities follows: (In millions) Balance Sheet Classification 2020 2019 Operating lease ROU assets Other Assets $ 58.5 $ 66.5 Operating lease current liabilities Other current liabilities 12.0 12.9 Operating lease long-term liabilities Other long-term liabilities 46.5 53.6 Total operating lease liabilities $ 58.5 $ 66.5 Finance lease, gross Property, plant & equipment, net 5.9 5.9 Finance lease accumulated depreciation Property, plant & equipment, net 0.5 0.5 Finance lease, net $ 5.4 $ 5.4 Finance lease current liabilities Other current liabilities 0.9 0.6 Finance lease long-term liabilities Long-term debt 1.3 1.8 Total finance lease liabilities $ 2.2 $ 2.4 |
Retirement and Other Postreti_2
Retirement and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Pension Expenses | Net periodic expense for our U.S. and European qualified and nonqualified defined benefit pension plans and our retirement savings plans for the three years ended December 31, 2020 is detailed in the table below. (In millions) 2020 2019 2018 Defined benefit retirement plans $ 0.1 $ (1.0 ) $ (1.6 ) Union sponsored multi-employer pension plan 2.0 2.5 2.1 Retirement savings plans-matching contributions 5.9 11.4 10.2 Retirement savings plans-profit sharing contributions 2.7 10.4 10.2 Net periodic expense $ 10.7 $ 23.3 $ 20.9 |
Schedule of Net Periodic Cost of Defined Benefit Retirement and Postretirement Plans | Net periodic cost of our defined benefit retirement and postretirement plans for the three years ended December 31, 2020, were: (In millions) U.S. Plans European Plans Defined Benefit Retirement Plans 2020 2019 2018 2020 2019 2018 Service cost $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0 $ 1.1 Interest cost 0.5 0.6 0.6 3.5 4.5 4.4 Expected return on plan assets — — — (6.9 ) (8.7 ) (9.4 ) Net amortization 0.3 0.1 0.2 0.4 0.3 0.3 Termination benefits and settlement losses — — — — — — Net periodic pension cost (income) $ 2.0 $ 1.9 $ 2.0 $ (1.9 ) $ (2.9 ) $ (3.6 ) (In millions) U.S. Postretirement Plans 2020 2019 2018 Interest cost $ 0.1 $ 0.1 $ 0.1 Net amortization and deferral (1.0 ) (1.1 ) (1.0 ) Net periodic postretirement benefit (income) loss $ (0.9 ) $ (1.0 ) $ (0.9 ) |
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Defined Benefit Retirement Plans (In millions) U.S. Plans European Plans Postretirement Plans Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss 2020 2019 2020 2019 2020 2019 Net loss (gain) $ 1.6 $ 0.9 $ 20.2 $ 8.3 $ (0.5 ) $ 0.1 Amortization of actuarial (losses) gains — — (0.5 ) (0.3 ) 1.0 1.1 Prior service cost — — — (0.1 ) — — Effect of foreign exchange — — 1.7 0.8 — — Total recognized in other comprehensive loss, (pre-tax) $ 1.6 $ 0.9 $ 21.4 $ 8.7 $ 0.5 $ 1.2 |
Schedule of Benefit Obligation, Fair Value of Plan Assets, Funded Status and Amounts Recognized in the Consolidated Financial Statements | The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit retirement plans and postretirement plans, as of and for the years ended December 31, 2020 and 2019, were: Defined Benefit Retirement Plans U.S. Plans European Plans Postretirement Plans (In millions) 2020 2019 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation - beginning of year $ 20.3 $ 18.2 $ 188.6 $ 160.9 $ 3.1 $ 3.3 Service cost 1.2 1.2 1.1 1.0 — — Interest cost 0.5 0.6 3.5 4.5 0.1 0.1 Plan participants’ contributions — — — — — 0.3 Actuarial loss (gain) 1.9 0.9 28.7 22.0 (0.5 ) 0.2 Plan amendments and acquisitions — — — — — — Curtailments and settlements — — (3.2 ) (0.4 ) — — Benefits and expenses paid (0.6 ) (0.6 ) (5.7 ) (5.2 ) (0.1 ) (0.8 ) Currency translation adjustments — — 7.9 5.8 — — Benefit obligation - end of year $ 23.3 $ 20.3 $ 220.9 $ 188.6 $ 2.6 $ 3.1 Change in plan assets: Fair value of plan assets - beginning of year $ — — $ 214.3 $ 184.3 $ — — Actual return on plan assets — — 13.2 22.2 — — Employer contributions 0.6 0.6 5.7 5.2 0.1 0.5 Plan participants’ contributions — — — — — 0.3 Benefits and expenses paid (0.6 ) (0.6 ) (5.8 ) (5.2 ) (0.1 ) (0.8 ) Curtailments and settlements — — (0.9 ) (0.2 ) — — Currency translation adjustments — — 7.3 8.0 — — Fair value of plan assets - end of year $ — $ — $ 233.8 $ 214.3 $ — $ — Amounts recognized in Consolidated Balance Sheets: Non-current assets $ — $ — $ 31.5 $ 45.2 $ — $ — Current liabilities $ 3.8 $ 1.4 $ 0.9 $ 0.6 $ 0.4 $ 0.5 Non-current liabilities 19.4 18.9 17.7 18.9 2.2 2.6 Total liabilities (a) $ 23.2 $ 20.3 $ 18.6 $ 19.5 $ 2.6 $ 3.1 Amounts recognized in Accumulated Other Comprehensive Loss: Actuarial net (loss) gain $ (4.5 ) $ (3.0 ) $ (50.1 ) $ (28.8 ) $ 1.6 $ 1.8 Prior service cost — — (1.4 ) (1.3 ) — — Total amounts recognized in accumulated other comprehensive loss $ (4.5 ) $ (3.0 ) $ (51.5 ) $ (30.1 ) $ 1.6 $ 1.8 (a) The current and non-current portions of the accrued benefit costs for the defined benefit retirement plans and postretirement benefit plans are included within “accrued compensation and benefits” and “retirement obligations”, respectively, in the accompanying consolidated balance sheets. |
Schedule of Expected Benefit Payments for the Plan | Benefit payments for the plans are expected to be as follows: European Postretirement (In millions) U.S. Plans Plans Plans 2021 $ 3.4 $ 8.2 $ 0.4 2022 1.9 5.9 0.4 2023 2.0 6.4 0.3 2024 12.5 9.8 0.3 2025 0.2 7.6 0.3 2026-2030 2.3 42.5 0.7 $ 22.3 $ 80.4 $ 2.4 |
Schedule of Pension Assets Measured at Fair Value | The following table presents pension assets measured at fair value at December 31, 2020 and 2019 utilizing the fair value hierarchy discussed in Note 20: Fair Value Measurements at (In millions) December 31, December 31, 2020 Description 2020 Level 1 Level 2 Level 3 Equity funds $ 17.2 $ — $ 17.2 $ — Diversified growth funds 69.0 — 69.0 — Fixed income gilts — — — — Insurance contracts 94.9 — — 94.9 Liability driven investments 48.0 — 48.0 — Index linked gilts — — — — Diversified investment funds 2.5 — — 2.5 Cash and cash equivalents 2.2 2.2 — — Total assets $ 233.8 $ 2.2 $ 134.2 $ 97.4 Fair Value Measurements at December 31, December 31, 2019 Description 2019 Level 1 Level 2 Level 3 Equity funds $ 28.2 $ — $ 28.2 $ — Diversified growth funds 55.6 — 55.6 — Fixed income gilts 19.9 — 19.9 — Insurance contracts 4.4 — — 4.4 Liability driven investments 29.7 — 29.7 — Index linked gilts 73.5 — 73.5 — Diversified investment funds 2.4 — — 2.4 Cash and cash equivalents 0.6 0.6 — — Total assets $ 214.3 $ 0.6 $ 206.9 $ 6.8 The U.K. plan invests funds which are not exchange listed and are, therefore, classified as Level 3. Balance at Actual Purchases, Changes due Balance at (In millions) January 1, return on sales and to exchange December 31, Reconciliation of Level 3 Assets 2020 plan assets settlements rates 2020 Diversified investment funds $ 2.4 $ 0.1 $ (0.2 ) $ 0.2 $ 2.5 Insurance contracts 4.4 0.2 88.4 1.9 94.9 Total level 3 assets $ 6.8 $ 0.3 $ 88.2 $ 2.1 $ 97.4 Balance at Actual Purchases, Changes due Balance at January 1, return on sales and to exchange December 31, Reconciliation of Level 3 Assets 2019 plan assets settlements rates 2019 Diversified investment funds $ 2.0 $ 0.3 $ 0.1 $ — $ 2.4 Insurance contracts 4.2 0.1 0.2 (0.1 ) 4.4 Total level 3 assets $ 6.2 $ 0.4 $ 0.3 $ (0.1 ) $ 6.8 |
Schedule of Actual Allocations for Pension Assets and Target Allocations by Asset Class | The actual allocations for the pension assets at December 31, 2020 and 2019, and target allocations by asset class, are as follows: Percentage Target Percentage Target of Plan Assets Allocations of Plan Assets Allocations Asset Class 2020 2020 2019 2019 Diversified growth funds 29.5 % 27.1 % 25.9 % 22.3 % Index linked gilts — — 34.3 33.4 Fixed interest gilts — — 9.3 9.1 Liability driven investments 20.5 23.9 13.8 16.5 All other regions equity fund 5.1 5.1 9.2 10.8 U.K. equity fund 2.2 2.2 4.0 4.7 Diversified investment funds 1.1 1.1 1.1 1.1 Insurance contracts 40.6 40.6 2.0 2.1 Cash and cash equivalents 1.0 — 0.4 — Total 100 % 100 % 100 % 100 % |
Schedule of Assumptions Used to Estimate the Actuarial Present Value of Benefit Obligations | Assumptions used to estimate the actuarial present value of benefit obligations at December 31, 2020, 2019 and 2018 are shown in the following table. These year-end values are the basis for determining net periodic costs for the following year. 2020 2019 2018 U.S. defined benefit retirement plans: Discount rates 0.4% - 1.8% 2.1% - 2.8% 2.8% - 3.2% Rate of increase in compensation 3% 3% 3% European defined benefit retirement plans: Discount rates 0.00% - 1.45% 0.35% - 2.05% 1.25% - 3.05% Rates of increase in compensation 2.75% - 3.0% 2.75% - 3.0% 2.75% - 3.0% Expected long-term rates of return on plan assets 1.45% – 3.0% 2.0% – 3.2% 2.0% – 4.75% Postretirement benefit plans: Discount rates 1.3% 2.5% 3.7% |
Schedule of Impact of One-Percentage-Point Change in Expected Long-term Rate of Return and Discount Rate on Pension Expense and Retirement Obligation | The following table presents the impact that a one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate would have on the 2020 pension expense, and the impact on our retirement obligation as of December 31, 2020 for a one-percentage-point change in the discount rate: U.S. Non-Qualified U S Retiree U.K. (In millions) Pension Plans Medical Plans Retirement Plan Periodic pension expense One-percentage-point increase: Expected long-term rate of return N/A N/A $ (1.4 ) Discount rate $ — $ — $ (0.3 ) One-percentage-point decrease: Expected long-term rate of return N/A N/A $ 1.4 Discount rate $ 0.1 $ — $ 0.2 Retirement obligation One-percentage-point increase in discount rate $ (0.8 ) $ (0.1 ) $ (21.6 ) One-percentage-point decrease in discount rate $ 0.9 $ 0.1 $ 29.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Taxes and Provision for Income Taxes | Income before income taxes and the provision for income taxes, for the three years ended December 31, 2020, were as follows: (In millions) 2020 2019 2018 Income before income taxes: U.S. $ 0.8 $ 284.1 $ 222.9 International (28.5 ) 95.6 110.6 Total (loss) income before income taxes $ (27.7 ) $ 379.7 $ 333.5 Income tax (benefit) expense: Current: U.S. $ (11.3 ) $ 49.1 $ 18.3 International 1.7 11.8 14.9 Current income tax (benefit) expense (9.6 ) 60.9 33.2 Deferred: U.S. 0.1 3.8 26.8 International (51.5 ) 12.1 2.5 Deferred income tax (benefit) expense (51.4 ) 15.9 29.3 Total income tax (benefit) expense $ (61.0 ) $ 76.8 $ 62.5 |
Schedule of a Reconciliation of the Provision for Income Taxes at the U.S. Federal Statutory Income Tax Rate to the Actual Income Tax Provision | A reconciliation of the provision for income taxes at the U.S. federal statutory income tax rate of 21.0% to the effective income tax rate, for the year ended December 31, 2020 and 2019, 2018 is as follows: (In millions) 2020 2019 2018 (Benefit) provision for taxes at U.S. federal statutory rate $ (5.8 ) $ 79.7 $ 70.0 State and local taxes, net of federal benefit (4.2 ) 3.6 7.2 Foreign effective rate differential (1.9 ) 5.1 4.6 Tax credits (3.0 ) (8.8 ) (7.8 ) Change in valuation allowance (39.5 ) (1.9 ) (3.4 ) Remeasurement of deferred taxes 3.5 0.4 (9.0 ) Transition tax on undistributed foreign earnings — — 1.6 Excess tax benefits on stock-based compensation (0.9 ) (4.9 ) (4.6 ) Other (4.3 ) 1.0 (0.5 ) (Decrease) increase in reserves for uncertain tax positions (4.9 ) 1.2 (1.3 ) Global intangible low taxed income — 1.4 5.7 Total income tax (benefit) expense $ (61.0 ) $ 76.8 $ 62.5 |
Schedule of Deferred Income Taxes | Principal components of deferred income taxes as of December 31, 2020 and 2019 are: (In millions) 2020 2019 Assets Net operating loss carryforwards $ 96.5 $ 71.6 Capital loss carryforward 1.6 1.7 ASC 606 - revenue from contracts with customers 8.4 9.9 Tax credit carryforwards 9.9 8.6 Stock-based compensation 7.6 7.7 Other comprehensive income 6.1 6.3 Inventory reserves 9.6 11.8 Reserves and other 5.2 1.5 Subtotal 144.9 119.1 Valuation allowance (6.9 ) (44.7 ) Total assets $ 138.0 $ 74.4 Liabilities Accelerated depreciation (194.5 ) (189.1 ) Accelerated amortization (14.8 ) (13.2 ) Other (8.8 ) (6.0 ) Total liabilities $ (218.1 ) $ (208.3 ) Net deferred tax liabilities $ (80.1 ) $ (133.9 ) |
Schedule of Classification of Deferred Tax Assets and Deferred Tax Liabilities in Consolidated Balance Sheets | Deferred tax assets and deferred tax liabilities as presented in the consolidated balance sheets as of December 31, 2020 and 2019 are as follows and are recorded in other assets and deferred income taxes in the consolidated balance sheets: (In millions) 2020 2019 Long-term deferred tax assets, net $ 72.9 $ 21.8 Long-term deferred tax liability, net (153.0 ) (155.7 ) Net deferred tax liabilities $ (80.1 ) $ (133.9 ) |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits. Unrecognized Tax Benefits (In millions) 2020 2019 2018 Balance as of January 1, $ 18.1 $ 7.5 $ 12.3 Additions based on tax positions related to the current year 0.3 11.0 1.1 (Reductions) additions for tax positions of prior years (7.9 ) (0.1 ) (5.7 ) Expiration of the statute of limitations for the assessment of taxes — (0.3 ) (0.3 ) Other, including currency translation — — 0.1 Balance as of December 31, $ 10.5 $ 18.1 $ 7.5 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Schedule of Common Stock Outstanding | Common stock outstanding as of December 31, 2020, 2019 and 2018 was as follows: (Number of shares in millions) 2020 2019 2018 Common stock: Balance, beginning of year 109.3 108.5 107.8 Activity under stock plans 0.4 0.8 0.7 Balance, end of year 109.7 109.3 108.5 Treasury stock: Balance, beginning of year 25.7 23.7 18.2 Repurchased 0.4 2.0 5.5 Balance, end of year 26.1 25.7 23.7 Common stock outstanding 83.6 83.6 84.8 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue By Market | The following table details our revenue by market for the years ended December 31, 2020, 2019 and 2018: (In millions) 2020 2019 2018 Consolidated Net Sales $ 1,502.4 $ 2,355.7 $ 2,189.1 Commercial Aerospace 822.3 1,597.7 1,525.0 Space & Defense 448.5 444.7 369.9 Industrial 231.6 313.3 294.2 |
Schedule of Activity Related to Contract Assets | The activity related to contract assets is as follows Composite Engineered (In millions) Materials Products Total Opening adjustment - January 1, 2019 $ 12.9 $ 37.6 $ 50.5 Net revenue billed (0.1 ) 2.3 2.2 Balance at December 31, 2019 $ 12.8 $ 39.9 $ 52.7 Net revenue billed (5.0 ) (4.6 ) (9.6 ) Balance at December 31, 2020 $ 7.8 $ 35.3 $ 43.1 |
Other Operating Expense (Inco_2
Other Operating Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Operating Expense (Income) | December 31, Restructuring Cash December 31, (In millions) 2019 Charge FX Impact Paid Non-Cash 2020 Employee termination $ 1.6 $ 32.3 $ 0.1 $ (20.6 ) $ 0.8 $ 14.2 Impairment and other — 10.5 — (1.0 ) (9.5 ) — Total $ 1.6 $ 42.8 $ 0.1 $ (21.6 ) $ (8.7 ) $ 14.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense by Type of Award | The following table details the stock-based compensation expense by type of award for the years ended December 31, 2020, 2019 and 2018: |
Summary of Option Activity | A summary of option activity under the plan for the three years ended December 31, 2020 is as follows: Number of Weighted- Remaining Options Average Contractual Life (In millions) Exercise Price (in years) Outstanding at December 31, 2017 1.7 $ 31.18 5.19 Options granted 0.2 $ 68.15 — Options exercised (0.4 ) $ 16.06 — Outstanding at December 31, 2018 1.5 $ 38.97 5.20 Options granted 0.2 $ 65.56 — Options exercised (0.4 ) $ 25.95 — Outstanding at December 31, 2019 1.3 $ 47.92 5.60 Options granted 0.5 $ 54.82 — Options exercised (0.2 ) $ 32.18 — Outstanding at December 31, 2020 1.6 $ 51.07 6.04 |
Schedule of Other Stock Option Statistics | Year Ended December 31, (In millions, except weighted average exercise price) 2020 2019 Aggregate intrinsic value of outstanding options $ 8.3 $ 31.8 Aggregate intrinsic value of exercisable options $ 5.7 $ 28.0 Total intrinsic value of options exercised $ 2.5 $ 22.9 Total number of options exercisable 0.9 0.9 Weighted average exercise price of options exercisable $ 46.29 $ 41.00 Total unrecognized compensation cost on non-vested options (a) $ 3.8 $ 1.5 (a) Unrecognized compensation cost relates to non-vested stock options and is expected to be recognized over the remaining vesting period ranging from one year to three years. |
Schedule of Assumptions Used in Determining the Estimated the Fair Value of Stock Options | We estimated the fair value of stock options at the grant date using the Black-Scholes option pricing model with the following assumptions for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Risk-free interest rate 0.85 % 2.61 % 2.53 % Expected option life (in years) 5.96 5.99 5.95 Dividend yield 1.1 % 0.8 % 0.7 % Volatility 44.35 % 35.05 % 35.64 % Weighted-average fair value per option granted $ 19.50 $ 22.90 $ 24.36 |
Summary of the Company's Service Based RSU Activity | The table presented below provides a summary of the Company’s RSU activity for the years ended December 31, 2020, 2019 and 2018: RSUs Weighted-Average Number of (In millions) Fair Value Grant Date Outstanding at December 31, 2017 0.5 $ 36.75 RSUs granted 0.1 $ 66.63 RSUs issued (0.1 ) $ 41.46 Outstanding at December 31, 2018 0.5 $ 41.65 RSUs granted 0.1 $ 68.85 RSUs issued (0.2 ) $ 44.75 Outstanding at December 31, 2019 0.4 $ 48.06 RSUs granted 0.2 $ 51.51 RSUs issued (0.1 ) $ 51.82 Outstanding at December 31, 2020 0.5 $ 47.98 |
Summary of the Company's PRSU Activity | The table presented below provides a summary, of the Company’s PRSU activity, at original grant amounts, for the years ended December 31, 2020, 2019 and 2018: Weighted- Number of Average PRSUs Grant Date (In millions) Fair Value Outstanding at December 31, 2017 0.4 $ 45.35 PRSUs granted 0.1 $ 68.15 PRSUs issued (0.2 ) $ 43.96 Outstanding at December 31, 2018 0.3 $ 51.75 PRSUs granted 0.1 $ 65.56 PRSUs issued (0.1 ) $ 41.71 Outstanding at December 31, 2019 0.3 $ 60.48 PRSUs granted 0.1 $ 74.74 PRSUs issued (0.1 ) $ 50.50 Outstanding at December 31, 2020 0.3 $ 68.77 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share Basic and Diluted | Computations of basic and diluted net income per common share for the years ended December 31, 2020, 2019 and 2018, are as follows: (In millions, except per share data) 2020 2019 2018 Basic net income per common share: Net income $ 31.7 $ 306.6 $ 276.6 Weighted average common shares outstanding 83.8 84.9 87.9 Basic net income per common share $ 0.38 $ 3.61 $ 3.15 Diluted net income per common share: Weighted average common shares outstanding — Basic 83.8 84.9 87.9 Plus incremental shares from assumed conversions: Restricted stock units 0.1 0.3 0.4 Stock options 0.1 0.6 0.7 Weighted average common shares outstanding — Dilutive 84.0 85.8 89.0 Dilutive net income per common share $ 0.38 $ 3.57 $ 3.11 Anti-dilutive shares outstanding, excluded from computation 0.9 0.1 0.2 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations | The activity, net of tax, in accumulated other comprehensive loss related to foreign currency forward exchange contracts for the years ended December 31, 2020, 2019 and 2018 was as follows: (In millions) 2020 2019 2018 Unrealized (loss) gain at beginning of period, net of tax $ (8.4 ) $ (10.6 ) $ 8.6 Loss reclassified to net sales 10.9 10.1 0.9 Increase (decrease) in fair value 8.1 (7.9 ) (20.1 ) Unrealized gain (loss) at end of period, net of taxes $ 10.6 $ (8.4 ) $ (10.6 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Environmental Remediation Reserve Activity | Environmental remediation reserve activity for the three years ended December 31, 2020 was as follows: (In millions) 2020 2019 2018 Beginning remediation accrual balance $ 2.5 $ 2.7 2.8 Current period expenses — — 0.3 Cash expenditures (0.1 ) (0.2 ) (0.4 ) Ending remediation accrual balance $ 2.4 $ 2.5 2.7 |
Schedule of Product Warranty | Warranty expense for the years ended December 31, 2020, 2019 and 2018, and accrued warranty cost, included in “other accrued liabilities” in the consolidated balance sheets were as follows: Product (In millions) Warranties Balance as of December 31, 2017 $ 3.6 Warranty expense 4.6 Deductions and other (3.4 ) Balance as of December 31, 2018 $ 4.8 Warranty expense 2.9 Deductions and other (2.2 ) Balance as of December 31, 2019 $ 5.5 Warranty expense 1.7 Deductions and other (4.6 ) Balance as of December 31, 2020 $ 2.6 |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information, for the years ended December 31, 2020, 2019 and 2018, consisted of the following: (In millions) 2020 2019 2018 Cash paid for: Interest $ 41.6 $ 44.7 $ 37.2 Taxes $ (0.2 ) $ 56.9 $ 36.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of December 31, 2020 and 2019 were as follows: Unrecognized Net Defined Benefit Change in Fair Value of Derivatives Foreign Currency (In millions) Plan Costs Products Translation Total Balance at December 31, 2018 $ (15.4 ) $ (5.8 ) $ (86.8 ) $ (108.0 ) Other comprehensive loss before reclassifications (6.2 ) (12.8 ) (2.6 ) (21.6 ) Amounts reclassified from accumulated other comprehensive loss (0.8 ) 11.7 - 10.9 Other comprehensive loss (7.0 ) (1.1 ) (2.6 ) (10.7 ) Balance at December 31, 2019 $ (22.4 ) $ (6.9 ) $ (89.4 ) $ (118.7 ) Other comprehensive loss before reclassifications (16.6 ) 0.3 54.6 38.3 Amounts reclassified from accumulated other comprehensive loss (1.4 ) 22.2 — 20.8 Other comprehensive loss (18.0 ) 22.5 54.6 59.1 Balance at December 31, 2020 $ (40.4 ) $ 15.6 $ (34.8 ) $ (59.6 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents financial information on our segments as of December 31, 2020, 2019 and 2018, and for the years then ended. (In millions) Composite Materials Engineered Products Corporate & Other Total Third-party sales 2020 $ 1,185.9 $ 316.5 $ — $ 1,502.4 2019 1,863.1 492.6 — 2,355.7 2018 1,770.5 418.6 — 2,189.1 Intersegment sales 2020 $ 53.9 $ 2.5 $ (56.4 ) $ — 2019 83.4 0.8 (84.2 ) — 2018 74.6 0.1 (74.7 ) — Operating income (loss) 2020 $ 60.7 $ 9.4 $ (56.0 ) $ 14.1 2019 411.3 72.0 (58.1 ) 425.2 2018 373.8 50.6 (53.2 ) 371.2 Depreciation and amortization 2020 $ 125.5 $ 15.3 $ 0.1 $ 140.9 2019 126.5 15.1 0.1 141.7 2018 113.9 9.1 0.1 123.1 Equity in earnings from affiliated companies 2020 $ (0.3 ) $ (1.1 ) $ (0.2 ) $ (1.6 ) 2019 (0.3 ) 4.3 (0.3 ) 3.7 2018 — 5.6 — 5.6 Other operating expense 2020 $ 32.1 $ 9.8 $ 16.0 $ 57.9 2019 - - - - 2018 - 7.7 - 7.7 Segment assets 2020 $ 2,382.3 $ 473.8 $ 61.7 $ 2,917.8 2019 2,669.6 465.2 (6.2) 3,128.6 2018 2,501.9 272.9 49.3 2,824.1 Investments in affiliated companies 2020 $ 2.0 $ 35.0 $ 7.7 $ 44.7 2019 2.2 36.1 8.2 46.5 2018 2.4 32.1 14.2 48.7 Accrual basis additions to property, plant and equipment 2020 $ 38.6 $ 3.9 $ — $ 42.5 2019 185.8 5.2 — 191.0 2018 173.5 5.6 — 179.1 |
Schedule of Net Sales and Long-Lived Assets, by Geographic Area | Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2020, 2019 and 2018: (In millions) 2020 2019 2018 Net Sales by Geography (a): United States $ 792.6 $ 1,246.9 $ 1,055.9 International France 226.1 364.3 369.8 Spain 101.5 166.6 189.5 Germany 127.1 221.3 216.0 United Kingdom 104.8 168.9 167.3 Austria 83.6 110.1 111.4 Other 66.7 77.6 79.2 Total international 709.8 1,108.8 1,133.2 Total consolidated net sales $ 1,502.4 $ 2,355.7 $ 2,189.1 Net Sales to External Customers (b): United States $ 703.5 $ 1,083.3 $ 909.8 International Germany 124.6 212.8 233.1 France 106.7 191.9 201.7 Spain 107.4 188 194.1 United Kingdom 37.7 77.4 79.0 Other 422.5 602.3 571.4 Total international 798.9 1,272.4 1,279.3 Total $ 1,502.4 $ 2,355.7 $ 2,189.1 Long-lived Assets (c): United States $ 1,523.3 $ 1,609.2 $ 1,332.1 International France 398.5 387.1 397.7 United Kingdom 144.4 151.9 146.1 Spain 57.7 57.2 56.6 Other 86.6 84.3 86.3 Total international 687.2 680.5 686.7 Total consolidated long-lived assets $ 2,210.5 $ 2,289.7 $ 2,018.8 (a) Net sales by geography based on the location in which the product sold was manufactured. (b) Net sales to external customers based on the location to which the product sold was delivered. (c) Long-lived assets primarily consist of property, plant and equipment, net and goodwill at December 31, 2020, 2019 and 2018. Also included at December 31, 2020 and 2019 are right of use assets related to operating leases. |
Quarterly Financial and Marke_2
Quarterly Financial and Market Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial and Market Data | Quarterly financial and market data for the years ended December 31, 2020 and 2019 were: First Second Third Fourth (In millions, except per share data and market price) Quarter Quarter Quarter Quarter 2020 Net sales $ 541.0 $ 378.7 $ 286.9 $ 295.8 Gross margin 140.9 54.9 13.5 30.4 Operating income (loss) 65.7 6.4 (37.6 ) (20.4 ) Net income (loss) 42.4 (1.0 ) 9.7 (19.4 ) Net income per common share: Basic $ 0.51 $ (0.01 ) $ 0.12 $ (0.23 ) Diluted $ 0.50 $ (0.01 ) $ 0.12 $ (0.23 ) Market price: High $ 79.89 $ 47.91 $ 46.71 $ 56.00 Low $ 29.51 $ 26.75 $ 32.57 $ 31.71 2019 Net sales $ 609.9 $ 609.0 $ 572.5 $ 564.3 Gross margin 167.2 168.8 157.9 146.5 Operating income 102.8 115.1 109.9 97.4 Net income 72.2 80.9 80.3 73.2 Net income per common share: Basic $ 0.85 $ 0.95 $ 0.94 $ 0.87 Diluted $ 0.84 $ 0.94 $ 0.93 $ 0.86 Market price: High $ 72.65 $ 80.88 $ 85.33 $ 80.29 Low $ 56.18 $ 68.00 $ 77.01 $ 73.31 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) | Jan. 01, 2020 | Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | Dec. 31, 2018customer | Jan. 01, 2019USD ($) |
Significant Accounting Policies [Line Items] | |||||
Deferred financing costs recorded as a non-current asset | $ 2,700,000 | $ 3,700,000 | |||
Net deferred financing costs recorded as a non-current contra liability | 3,500,000 | 3,700,000 | |||
Short term unamortized deferred financing costs related to facility | 3,500,000 | 3,700,000 | |||
Allowance for doubtful accounts | 800,000 | 600,000 | |||
Operating lease, right of use assets | $ 58,500,000 | $ 66,500,000 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |||
Operating lease, liabilities | $ 58,500,000 | $ 66,500,000 | |||
Accounting Standards Update 2016-13 | |||||
Significant Accounting Policies [Line Items] | |||||
Reserves accounts receivable | 200,000 | ||||
Write-off against accounts receivables | 0 | ||||
Reserve accounts receivable, balance | $ 800,000 | ||||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | ||||
Percentage of accounts receivable write offs | 50.00% | ||||
Accounting Standards Update 2016-02 | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2019 | ||||
Operating lease, right of use assets | $ 50,000,000 | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | ||||
Operating lease, liabilities | $ 50,000,000 | ||||
Operating Lease, Liability, Statement Of Financial Position [Extensible List] | hxl:AccruedLiabilitiesCurrentAndOtherLiabilitiesNonCurrent | ||||
Net sales | Customer concentration | |||||
Significant Accounting Policies [Line Items] | |||||
Number of major customers | customer | 2 | 2 | 2 | ||
Two customers and their related subcontractors | Net sales | Customer concentration | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration percentage (as a percent) | 52.00% | 64.00% | 66.00% | ||
Minimum | Building and improvements | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life | 10 years | ||||
Minimum | Machinery and equipment | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life | 3 years | ||||
Minimum | Software | |||||
Significant Accounting Policies [Line Items] | |||||
Finite lived intangible assets, useful life | 3 years | ||||
Maximum | Building and improvements | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life | 40 years | ||||
Maximum | Machinery and equipment | |||||
Significant Accounting Policies [Line Items] | |||||
Useful life | 25 years | ||||
Maximum | Software | |||||
Significant Accounting Policies [Line Items] | |||||
Finite lived intangible assets, useful life | 10 years | ||||
Aerospace Composites Malaysia Sdn. Bhd. | |||||
Significant Accounting Policies [Line Items] | |||||
Interest in affiliated company, accounted for using equity method of accounting (as a percent) | 50.00% | ||||
Hexcut Services | |||||
Significant Accounting Policies [Line Items] | |||||
Interest in affiliated company, accounted for using equity method of accounting (as a percent) | 25.00% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 94.9 | $ 154.9 |
Work in progress | 23.6 | 40.9 |
Finished goods | 95 | 137.3 |
Total inventory | $ 213.5 | $ 333.1 |
Net Property, Plant and Equip_3
Net Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Net Property, Plant and Equipment | ||
Property, plant and equipment | $ 3,139.7 | $ 3,075.1 |
Less accumulated depreciation | (1,265.5) | (1,132.3) |
Property, plant and equipment, net | 1,874.2 | 1,942.8 |
Land | ||
Net Property, Plant and Equipment | ||
Property, plant and equipment | 107 | 105.4 |
Buildings | ||
Net Property, Plant and Equipment | ||
Property, plant and equipment | 686.5 | 687.6 |
Equipment | ||
Net Property, Plant and Equipment | ||
Property, plant and equipment | 2,108.8 | 2,026.9 |
Construction in progress | ||
Net Property, Plant and Equipment | ||
Property, plant and equipment | 231.5 | 249.3 |
Finance lease | ||
Net Property, Plant and Equipment | ||
Property, plant and equipment | $ 5.9 | $ 5.9 |
Net Property, Plant and Equip_4
Net Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment | $ 133.9 | $ 134.7 | $ 120.1 |
Capitalized interest | $ 13.4 | $ 12.7 | $ 9.5 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets - Schedule of Gross Goodwill and Other Purchased Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | ||
Balance at the beginning of the period | $ 280.4 | $ 142.3 |
Amortization expense | (6.9) | (6.9) |
Additions | 145.1 | |
Currency translation adjustments and other | 4.3 | (0.1) |
Balance at the end of the period | 277.8 | 280.4 |
Composite Materials | ||
Changes in the carrying amount of gross goodwill and other purchased intangibles | ||
Balance at the beginning of the period | 96.2 | 98.2 |
Amortization expense | (1.9) | (2) |
Currency translation adjustments and other | 4.4 | |
Balance at the end of the period | 98.7 | 96.2 |
Engineered Products | ||
Changes in the carrying amount of gross goodwill and other purchased intangibles | ||
Balance at the beginning of the period | 184.2 | 44.1 |
Amortization expense | (5) | (4.9) |
Additions | 145.1 | |
Currency translation adjustments and other | (0.1) | (0.1) |
Balance at the end of the period | $ 179.1 | $ 184.2 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill And Indefinite Lived Intangible Assets By Segment [Line Items] | |
Indefinite-lived intangible assets | $ 9.3 |
Definite-lived intangible asset | 75.4 |
Definite-lived intangible asset, accumulated amortization | (20.3) |
Goodwill | $ 193.1 |
Weighed average remaining life of finite lived intangible assets | 13 years |
Composite Materials | |
Goodwill And Indefinite Lived Intangible Assets By Segment [Line Items] | |
Goodwill | $ 77.7 |
Engineered Products | |
Goodwill And Indefinite Lived Intangible Assets By Segment [Line Items] | |
Goodwill | $ 115.4 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets - Schedule of Amortization Related to Definite Lived Intangible Assets (Details) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 | $ 7 |
2022 | 7 |
2023 | 7 |
2024 | 6.7 |
2025 | 6.7 |
Thereafter | 41 |
Total | $ 75.4 |
Debt - Schedule of Debt and Cap
Debt - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Current portion of finance lease | $ 0.9 | $ 0.6 |
Current portion of Euro term loan | 8.9 | |
Current portion of debt | 0.9 | 9.5 |
Non-current portion of Euro term loan | 41.5 | |
Long-term debt | 925.5 | 1,050.6 |
Non-current portion of finance leases and other | 2.5 | 2 |
Total debt | 926.4 | 1,060.1 |
Senior unsecured credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 228 | 313 |
4.7% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes | 300 | 300 |
4.7% senior notes due 2025 and 3.95% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes — original issue discount | (1.5) | (1.7) |
Senior notes — deferred financing costs | (3.5) | (4.2) |
3.95% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 400 | $ 400 |
Debt - Schedule of Debt and C_2
Debt - Schedule of Debt and Capital Lease Obligations (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
4.7% senior notes due 2025 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 4.70% |
Debt instrument, maturity year | 2025 |
3.95% senior notes due 2027 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 3.95% |
Debt instrument, maturity year | 2027 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jan. 28, 2021 | Jan. 31, 2020 | Jun. 30, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | May 31, 2019 |
Debt Instrument [Line Items] | |||||||||||||
Borrowings | $ 925,500,000 | $ 925,500,000 | $ 1,050,600,000 | ||||||||||
Unamortized deferred financing costs and debt discount | 2,700,000 | 2,700,000 | 3,700,000 | ||||||||||
Repayment and termination of Euro term loan | 49,900,000 | 9,000,000 | $ 4,200,000 | ||||||||||
Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment and termination of Euro term loan | $ 49,900,000 | ||||||||||||
Senior unsecured credit facility- revolving loan due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 700,000,000 | ||||||||||||
Senior unsecured credit facility- revolving loan due 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||
Debt instrument expiration period | 2024-06 | ||||||||||||
Maximum amount available under credit facility agreement to issue letters of credit | 50,000,000 | 50,000,000 | |||||||||||
Letters of credit issued under credit facility | 0 | ||||||||||||
Undrawn availability under credit facility | 772,000,000 | $ 772,000,000 | |||||||||||
Weighted average interest rate | 2.16% | ||||||||||||
Unamortized deferred financing costs and debt discount | 3,500,000 | $ 3,500,000 | 3,700,000 | ||||||||||
Senior unsecured credit facility- revolving loan due 2024 | Level 2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings | $ 228,000,000 | $ 228,000,000 | |||||||||||
Senior unsecured credit facility- revolving loan due 2024 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instruments covenant leverage ratio | 375.00% | ||||||||||||
Debt instruments covenant leverage ratio under certain acquisitions | 425.00% | ||||||||||||
Senior unsecured credit facility- revolving loan due 2024 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest coverage ratio required to be maintained | 350.00% | ||||||||||||
Amended senior unsecured credit facility- revolving loan due 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, covenant terms | During the Covenant Relief Period, we are required to maintain a leverage ratio not greater than: 4.25, 5.75, 5.00 and 4.25, respectively, for each of the quarterly test periods from December 31, 2020 through September 30, 2021. During the Covenant Relief Period, consolidated total debt is calculated net of unrestricted cash and cash equivalents in an amount not to exceed $200 million. | ||||||||||||
Amended senior unsecured credit facility- revolving loan due 2024 | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 750,000,000 | ||||||||||||
Debt instrument, covenant terms | During the Liquidity Covenant Period from January 28, 2021 through and including March 31, 2022, we will not be subject to a maximum leverage ratio covenant but will instead be required to maintain Liquidity (as defined in the Amended Credit Agreement) of at least $250 million. Additionally, during such period, the Company will be subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees are increased; the incremental facility will not be available; and if the Company’s public debt rating is downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we will be required to grant liens on certain of our assets, which liens will be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. The Company’s current public debt rating is BBB-/Baa3. | ||||||||||||
Minimum liquidity amount required to maintain under credit agreement liquidity covenant | $ 250,000,000 | ||||||||||||
Amended senior unsecured credit facility- revolving loan due 2024 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instruments covenant leverage ratio | 425.00% | ||||||||||||
Amended senior unsecured credit facility- revolving loan due 2024 | Maximum | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instruments covenant leverage ratio | 425.00% | 500.00% | 575.00% | ||||||||||
Unrestricted cash and cash equivalents | $ 200,000,000 | ||||||||||||
3.95% senior unsecured notes due 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face value | $ 400,000,000 | ||||||||||||
Unamortized deferred financing costs and debt discount | $ 3,400,000 | $ 3,400,000 | 3,900,000 | ||||||||||
Debt instrument, interest rate | 3.95% | ||||||||||||
Debt instrument, maturity year | 2027 | ||||||||||||
Increase in senior notes interest rate | 0.25% | ||||||||||||
Effective interest rate | 3.87% | 3.87% | |||||||||||
3.95% senior unsecured notes due 2027 | Treasury Lock | Interest Lock Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of effective interest rate benefit | 0.25% | ||||||||||||
3.95% senior unsecured notes due 2027 | Level 2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fair value of senior unsecured notes | $ 432,500,000 | $ 432,500,000 | |||||||||||
3.95% senior unsecured notes due 2027 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate | 5.95% | ||||||||||||
4.7% senior unsecured notes due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face value | $ 300,000,000 | ||||||||||||
Unamortized deferred financing costs and debt discount | $ 1,700,000 | $ 1,700,000 | $ 2,000,000 | ||||||||||
Debt instrument, interest rate | 4.70% | 4.70% | 4.70% | ||||||||||
Debt instrument, maturity year | 2025 | ||||||||||||
Increase in senior notes interest rate | 0.25% | ||||||||||||
Effective interest rate | 4.83% | 4.83% | |||||||||||
4.7% senior unsecured notes due 2025 | Level 2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fair value of senior unsecured notes | $ 336,400,000 | $ 336,400,000 | |||||||||||
4.7% senior unsecured notes due 2025 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate | 6.70% |
Leases - Additional Information
Leases - Additional Information - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease, right of use assets | $ 58.5 | $ 66.5 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |
Operating lease, liabilities | $ 58.5 | $ 66.5 | |
Operating lease, non-current liabilities | $ 46.5 | $ 53.6 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Operating Lease, Liability, Current | $ 12 | $ 12.9 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | |
Operating lease, weighted average remaining lease terms | 8 years | ||
Operating lease, weighted average interest rate | 3.00% | ||
Operating lease expense | $ 16.2 | $ 15.5 | $ 13.8 |
Leases - Schedule of Future Und
Leases - Schedule of Future Undiscounted Cash Payments Related to Right of Use Assets (Details) $ in Millions | Dec. 31, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2021 | $ 12 |
2022 | 10.1 |
2023 | 8.9 |
2024 | 7.8 |
2025 | 5.7 |
Thereafter | 23.1 |
Total | $ 67.6 |
Leases - Schedule of Lease-rela
Leases - Schedule of Lease-related Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease ROU assets | $ 58.5 | $ 66.5 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Operating lease current liabilities | $ 12 | $ 12.9 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Operating lease long-term liabilities | $ 46.5 | $ 53.6 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Total operating lease liabilities | $ 58.5 | $ 66.5 |
Finance lease, gross | 5.9 | 5.9 |
Finance lease accumulated depreciation | 0.5 | 0.5 |
Finance lease, net | $ 5.4 | $ 5.4 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Finance lease current liabilities | $ 0.9 | $ 0.6 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Finance lease long-term liabilities | $ 1.3 | $ 1.8 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Total finance lease liabilities | $ 2.2 | $ 2.4 |
Retirement and Other Postreti_3
Retirement and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Multi-Employer Plan | |||
Minimum percentage of the Plan's total contributions contributed by the entity | 5.00% | 5.00% | 5.00% |
Employer contribution | $ 2 | $ 2.5 | $ 2.1 |
Expected contribution in 2020 | $ 2 | ||
U.S. retirement saving plan | |||
Total plan assets invested in active corporate bond funds (as a percent) | 100.00% | 100.00% | |
Amounts recognized in Accumulated Other Comprehensive Loss: | |||
Fair value of plan assets | $ 233.8 | $ 214.3 | |
Impact of one-percentage-point increase and a one-percentage-point decrease in the discount rate on retirement obligation as of December 31, 2019 | |||
Assumed annual rate of increase in the per capita cost of covered health care benefits for medical care (as a percent) | 7.00% | ||
Assumed annual rate of increase in the per capita cost of covered health care benefits for dental and vision care (as a percent) | 5.00% | ||
Ultimate annual rate of increase in the per capita cost of covered health care benefits for medical care (as a percent) | 4.75% | ||
Ultimate annual rate of increase in the per capita cost of covered health care benefits for dental and vision care (as a percent) | 5.00% | ||
Liability Driven Investments | |||
U.S. retirement saving plan | |||
Total plan assets invested in active corporate bond funds (as a percent) | 20.50% | 13.80% | |
Non-Qualified Deferred Compensation Plan | |||
U.S. retirement saving plan | |||
Employer contribution as a percentage of employee contribution (as a percent) | 50.00% | ||
Maximum | Non-Qualified Deferred Compensation Plan | |||
U.S. retirement saving plan | |||
Employer matching contribution as a percentage of employee's annual compensation (as a percent) | 6.00% | ||
U.S. Retirement Savings Plan | |||
U.S. retirement saving plan | |||
Employer contribution as a percentage of employee contribution (as a percent) | 50.00% | ||
Employer matching contribution as a percentage of employee's annual compensation (as a percent) | 3.00% | ||
Employer matching contribution as a targeted percentage of employee's annual compensation (as a percent) | 3.00% | ||
U.S. Retirement Savings Plan | Maximum | |||
U.S. retirement saving plan | |||
Percentage of employee's annual compensation allowed as contribution to individual 401(k) retirement saving account (as a percent) | 75.00% | ||
Employer matching contribution as a percentage of employee's annual compensation (as a percent) | 4.50% | ||
Additional employer contribution as a percentage of eligible income depending on employee's age (as a percent) | 4.00% | ||
Maximum employer contribution to individual 401(k) retirement saving account, after additional contribution (as a percent) | 7.00% | ||
U.S. Retirement Savings Plan | Minimum | |||
U.S. retirement saving plan | |||
Additional employer contribution as a percentage of eligible income depending on employee's age (as a percent) | 2.00% | ||
Maximum employer contribution to individual 401(k) retirement saving account, after additional contribution (as a percent) | 5.00% | ||
UK Defined Contribution Pension Plan | |||
U.S. retirement saving plan | |||
Percentage of pensionable salary that eligible employees can elect to contribute under the first option | 3.00% | ||
Percentage of pensionable salary that eligible employees can elect to contribute under the second option | 5.00% | ||
Percentage of pensionable salary that eligible employees can elect to contribute under the third option | 7.00% | ||
Company's contribution under the first option (as a percent) | 5.00% | ||
Company's contribution under the second option (as a percent) | 9.00% | ||
Company's contribution under the third option (as a percent) | 13.00% | ||
Collective-Bargaining Arrangement | |||
Multi-Employer Plan | |||
Multiemployer Plans, Collective-Bargaining Arrangement, Description | The collective bargaining agreement was renewed on November 20, 2020 retroactively to October 1, 2020 for a five-year term. | ||
European Plans | |||
U.S. retirement saving plan | |||
Expected long-term weighted average rate of return for next fiscal year (as a percent) | 3.00% | ||
Amounts recognized in Accumulated Other Comprehensive Loss: | |||
Total accumulated benefit obligation | $ 26.1 | $ 21.5 | |
Accumulated benefit obligation in excess of plan assets | $ 18.6 | 14.6 | |
United Kingdom defined benefit plan (the U.K. Plan) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long term trend rate of improvement | 1.25% | ||
Description of long term trend rate of improvement | The mortality table used for the U.S. plans is based on the Pri-2012 White Collar Healthy Annuitant Mortality Table with Improvement Scale MP-2019 and for the U.K. Plan the S3PXA base table with future improvements in line with the CMI 2019 projection model with a long-term trend rate of 1.25% p. a. | ||
U.S. retirement saving plan | |||
Expected long-term weighted average rate of return for next fiscal year (as a percent) | 1.50% | ||
Amounts recognized in Accumulated Other Comprehensive Loss: | |||
Total accumulated benefit obligation | $ 194.7 | 162.3 | |
Fair value of plan assets | 226.3 | 207.5 | |
Defined Benefit Retirement Plans | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | |||
Amounts unrelated to service costs, benefit | 3.1 | 4.2 | 4.8 |
Defined Benefit Retirement Plans | U.S. Plans | |||
Amounts recognized on the balance sheet: | |||
Expected employer contribution in next fiscal year | $ 3.4 | ||
Defined Benefit Plan Tax Status Extensible List | us-gaap:NonqualifiedPlanMember | ||
Amounts recognized in Accumulated Other Comprehensive Loss: | |||
Total accumulated benefit obligation | $ 23.3 | 19.9 | |
Defined Benefit Retirement Plans | European Plans | |||
Amounts recognized in Accumulated Other Comprehensive Loss: | |||
Fair value of plan assets | 233.8 | $ 214.3 | $ 184.3 |
U.S. Postretirement Plans | |||
Amounts recognized on the balance sheet: | |||
Expected employer contribution in next fiscal year | $ 0.4 |
Retirement and Other Postreti_4
Retirement and Other Postretirement Benefit Plans - Schedule of Net Periodic Pension Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Periodic Pension Expense | |||
Defined benefit retirement plans | $ 0.1 | $ (1) | $ (1.6) |
Union sponsored multi-employer pension plan | 2 | 2.5 | 2.1 |
Retirement savings plans-matching contributions | 5.9 | 11.4 | 10.2 |
Retirement savings plans-profit sharing contributions | 2.7 | 10.4 | 10.2 |
Net periodic expense | $ 10.7 | $ 23.3 | $ 20.9 |
Retirement and Other Postreti_5
Retirement and Other Postretirement Benefit Plans - Schedule of Net Periodic Cost of Defined Benefit Retirement and Postretirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net periodic benefit costs of defined benefit retirement plans | |||
Net periodic pension cost (income) | $ 0.1 | $ (1) | $ (1.6) |
Defined Benefit Retirement Plans | U.S. Plans | |||
Net periodic benefit costs of defined benefit retirement plans | |||
Service cost | 1.2 | 1.2 | 1.2 |
Interest cost | 0.5 | 0.6 | 0.6 |
Net amortization | 0.3 | 0.1 | 0.2 |
Net periodic pension cost (income) | 2 | 1.9 | 2 |
Defined Benefit Retirement Plans | European Plans | |||
Net periodic benefit costs of defined benefit retirement plans | |||
Service cost | 1.1 | 1 | 1.1 |
Interest cost | 3.5 | 4.5 | 4.4 |
Expected return on plan assets | (6.9) | (8.7) | (9.4) |
Net amortization | 0.4 | 0.3 | 0.3 |
Net periodic pension cost (income) | (1.9) | (2.9) | (3.6) |
U.S. Postretirement Plans | |||
Net periodic benefit costs of defined benefit retirement plans | |||
Interest cost | 0.1 | 0.1 | 0.1 |
Net amortization | (1) | (1.1) | (1) |
Net periodic pension cost (income) | $ (0.9) | $ (1) | $ (0.9) |
Retirement and Other Postreti_6
Retirement and Other Postretirement Benefit Plans - Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Postretirement Plans | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||
Net loss (gain) | $ (0.5) | $ 0.1 |
Amortization of actuarial (losses) gains | 1 | 1.1 |
Total recognized in other comprehensive loss, (pre-tax) | 0.5 | 1.2 |
U.S. Plans | Defined Benefit Retirement Plans | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||
Net loss (gain) | 1.6 | 0.9 |
Total recognized in other comprehensive loss, (pre-tax) | 1.6 | 0.9 |
European Plans | Defined Benefit Retirement Plans | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss | ||
Net loss (gain) | 20.2 | 8.3 |
Amortization of actuarial (losses) gains | (0.5) | (0.3) |
Prior service cost | (0.1) | |
Effect of foreign exchange | 1.7 | 0.8 |
Total recognized in other comprehensive loss, (pre-tax) | $ 21.4 | $ 8.7 |
Retirement and Other Postreti_7
Retirement and Other Postretirement Benefit Plans - Schedule of Benefit Obligation, Fair Value of Plan Assets, Funded Status and Amounts Recognized in the Consolidated Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Change in plan assets: | ||||
Fair value of plan assets - beginning of year | $ 214.3 | |||
Fair value of plan assets - end of year | 233.8 | $ 214.3 | ||
Amounts recognized in Consolidated Balance Sheets: | ||||
Non-current liabilities | 53.9 | 53.3 | ||
Postretirement Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation - beginning of year | 3.1 | 3.3 | ||
Interest cost | 0.1 | 0.1 | $ 0.1 | |
Plan participants’ contributions | 0.3 | |||
Actuarial loss (gain) | (0.5) | 0.2 | ||
Benefits and expenses paid | (0.1) | (0.8) | ||
Benefit obligation - end of year | 2.6 | 3.1 | 3.3 | |
Change in plan assets: | ||||
Employer contributions | 0.1 | 0.5 | ||
Plan participants’ contributions | 0.3 | |||
Benefits and expenses paid | (0.1) | (0.8) | ||
Amounts recognized in Consolidated Balance Sheets: | ||||
Current liabilities | 0.4 | 0.5 | ||
Non-current liabilities | 2.2 | 2.6 | ||
Total liabilities | [1] | 2.6 | 3.1 | |
Amounts recognized in Accumulated Other Comprehensive Loss: | ||||
Actuarial net (loss) gain | 1.6 | 1.8 | ||
Total amounts recognized in accumulated other comprehensive loss | 1.6 | 1.8 | ||
U.S. Plans | Defined Benefit Retirement Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation - beginning of year | 20.3 | 18.2 | ||
Service cost | 1.2 | 1.2 | 1.2 | |
Interest cost | 0.5 | 0.6 | 0.6 | |
Actuarial loss (gain) | 1.9 | 0.9 | ||
Benefits and expenses paid | (0.6) | (0.6) | ||
Benefit obligation - end of year | 23.3 | 20.3 | 18.2 | |
Change in plan assets: | ||||
Employer contributions | 0.6 | 0.6 | ||
Benefits and expenses paid | (0.6) | (0.6) | ||
Amounts recognized in Consolidated Balance Sheets: | ||||
Current liabilities | 3.8 | 1.4 | ||
Non-current liabilities | 19.4 | 18.9 | ||
Total liabilities | [1] | 23.2 | 20.3 | |
Amounts recognized in Accumulated Other Comprehensive Loss: | ||||
Actuarial net (loss) gain | (4.5) | (3) | ||
Total amounts recognized in accumulated other comprehensive loss | (4.5) | (3) | ||
European Plans | Defined Benefit Retirement Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation - beginning of year | 188.6 | 160.9 | ||
Service cost | 1.1 | 1 | 1.1 | |
Interest cost | 3.5 | 4.5 | 4.4 | |
Actuarial loss (gain) | 28.7 | 22 | ||
Curtailments and settlements | (3.2) | (0.4) | ||
Benefits and expenses paid | (5.7) | (5.2) | ||
Currency translation adjustments | 7.9 | 5.8 | ||
Benefit obligation - end of year | 220.9 | 188.6 | 160.9 | |
Change in plan assets: | ||||
Fair value of plan assets - beginning of year | 214.3 | 184.3 | ||
Actual return on plan assets | 13.2 | 22.2 | ||
Employer contributions | 5.7 | 5.2 | ||
Benefits and expenses paid | (5.8) | (5.2) | ||
Curtailments and settlements | (0.9) | (0.2) | ||
Currency translation adjustments | 7.3 | 8 | ||
Fair value of plan assets - end of year | 233.8 | 214.3 | $ 184.3 | |
Amounts recognized in Consolidated Balance Sheets: | ||||
Non-current assets | 31.5 | 45.2 | ||
Current liabilities | 0.9 | 0.6 | ||
Non-current liabilities | 17.7 | 18.9 | ||
Total liabilities | [1] | 18.6 | 19.5 | |
Amounts recognized in Accumulated Other Comprehensive Loss: | ||||
Actuarial net (loss) gain | (50.1) | (28.8) | ||
Prior service cost | (1.4) | (1.3) | ||
Total amounts recognized in accumulated other comprehensive loss | $ (51.5) | $ (30.1) | ||
[1] | The current and non-current portions of the accrued benefit costs for the defined benefit retirement plans and postretirement benefit plans are included within “accrued compensation and benefits” and “retirement obligations”, respectively, in the accompanying consolidated balance sheets. |
Retirement and Other Postreti_8
Retirement and Other Postretirement Benefit Plans - Schedule of Expected Benefit Payments for the Plan (Details) $ in Millions | Dec. 31, 2020USD ($) |
Postretirement Plans | |
Expected benefit payments for the plans | |
2021 | $ 0.4 |
2022 | 0.4 |
2023 | 0.3 |
2024 | 0.3 |
2025 | 0.3 |
2026-2030 | 0.7 |
Aggregate expected benefit payments | 2.4 |
U.S. Plans | Defined Benefit Retirement Plans | |
Expected benefit payments for the plans | |
2021 | 3.4 |
2022 | 1.9 |
2023 | 2 |
2024 | 12.5 |
2025 | 0.2 |
2026-2030 | 2.3 |
Aggregate expected benefit payments | 22.3 |
European Plans | Defined Benefit Retirement Plans | |
Expected benefit payments for the plans | |
2021 | 8.2 |
2022 | 5.9 |
2023 | 6.4 |
2024 | 9.8 |
2025 | 7.6 |
2026-2030 | 42.5 |
Aggregate expected benefit payments | $ 80.4 |
Retirement and Other Postreti_9
Retirement and Other Postretirement Benefit Plans - Schedule of Pension Assets Measured at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 233.8 | $ 214.3 | |
Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 17.2 | 28.2 | |
Diversified Growth Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 69 | 55.6 | |
Fixed Income Gilts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 19.9 | ||
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 94.9 | 4.4 | |
Liability Driven Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 48 | 29.7 | |
Index Linked Gilts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 73.5 | ||
Diversified Investment, Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2.5 | 2.4 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2.2 | 0.6 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2.2 | 0.6 | |
Level 1 | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2.2 | 0.6 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 134.2 | 206.9 | |
Level 2 | Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 17.2 | 28.2 | |
Level 2 | Diversified Growth Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 69 | 55.6 | |
Level 2 | Fixed Income Gilts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 19.9 | ||
Level 2 | Liability Driven Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 48 | 29.7 | |
Level 2 | Index Linked Gilts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 73.5 | ||
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 97.4 | 6.8 | $ 6.2 |
Actual return on plan assets | 0.3 | 0.4 | |
Purchases, sales and settlements | 88.2 | 0.3 | |
Currency translation adjustments | 2.1 | (0.1) | |
Level 3 | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 94.9 | 4.4 | 4.2 |
Actual return on plan assets | 0.2 | 0.1 | |
Purchases, sales and settlements | 88.4 | 0.2 | |
Currency translation adjustments | 1.9 | (0.1) | |
Level 3 | Diversified Investment, Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 2.5 | 2.4 | $ 2 |
Actual return on plan assets | 0.1 | 0.3 | |
Purchases, sales and settlements | (0.2) | $ 0.1 | |
Currency translation adjustments | $ 0.2 |
Retirement and Other Postret_10
Retirement and Other Postretirement Benefit Plans - Schedule of Actual Allocations for the Pension Assets and Target Allocations by Asset Class (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Change in plan assets: | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Target Allocations | 100.00% | 100.00% |
Diversified Growth Funds | ||
Change in plan assets: | ||
Percentage of Plan Assets | 29.50% | 25.90% |
Target Allocations | 27.10% | 22.30% |
Index Linked Gilts | ||
Change in plan assets: | ||
Percentage of Plan Assets | 34.30% | |
Target Allocations | 33.40% | |
Fixed Interest Gilts | ||
Change in plan assets: | ||
Percentage of Plan Assets | 9.30% | |
Target Allocations | 9.10% | |
Liability Driven Investments | ||
Change in plan assets: | ||
Percentage of Plan Assets | 20.50% | 13.80% |
Target Allocations | 23.90% | 16.50% |
All Other Regions Equity Fund | ||
Change in plan assets: | ||
Percentage of Plan Assets | 5.10% | 9.20% |
Target Allocations | 5.10% | 10.80% |
U.K. Equity Fund | ||
Change in plan assets: | ||
Percentage of Plan Assets | 2.20% | 4.00% |
Target Allocations | 2.20% | 4.70% |
Diversified Investment, Funds | ||
Change in plan assets: | ||
Percentage of Plan Assets | 1.10% | 1.10% |
Target Allocations | 1.10% | 1.10% |
Insurance contracts | ||
Change in plan assets: | ||
Percentage of Plan Assets | 40.60% | 2.00% |
Target Allocations | 40.60% | 2.10% |
Cash and Cash Equivalents | ||
Change in plan assets: | ||
Percentage of Plan Assets | 1.00% | 0.40% |
Retirement and Other Postret_11
Retirement and Other Postretirement Benefit Plans - Schedule of Assumptions Used to Estimate the Actuarial Value of Benefit Obligations (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Retirement Plans | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of increase in compensation | 3.00% | 3.00% | 3.00% |
Defined Benefit Retirement Plans | Minimum | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 0.40% | 2.10% | 2.80% |
Defined Benefit Retirement Plans | Minimum | European Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 0.00% | 0.35% | 1.25% |
Rate of increase in compensation | 2.75% | 2.75% | 2.75% |
Expected long-term rates of return on plan assets | 1.45% | 2.00% | 2.00% |
Defined Benefit Retirement Plans | Maximum | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 1.80% | 2.80% | 3.20% |
Defined Benefit Retirement Plans | Maximum | European Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 1.45% | 2.05% | 3.05% |
Rate of increase in compensation | 3.00% | 3.00% | 3.00% |
Expected long-term rates of return on plan assets | 3.00% | 3.20% | 4.75% |
U.S. Postretirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 1.30% | 2.50% | 3.70% |
Retirement and Other Postret_12
Retirement and Other Postretirement Benefit Plans - Schedule of Impact of One-Percentage-Point Change in Expected Long-term Rate of Return and Discount Rate on Pension Expense and Retirement Obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
U.S. Non-qualified Defined Benefit Retirement Plans | |
Impact of one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate on periodic pension expense in next fiscal year | |
One-percentage-point decrease in discount rate | $ 0.1 |
Impact of one-percentage-point increase and a one-percentage-point decrease in the discount rate on retirement obligation as of December 31, 2019 | |
One-percentage-point increase in discount rate | (0.8) |
One-percentage-point decrease in discount rate | 0.9 |
U.S. Retiree Medical Plans | |
Impact of one-percentage-point increase and a one-percentage-point decrease in the discount rate on retirement obligation as of December 31, 2019 | |
One-percentage-point increase in discount rate | (0.1) |
One-percentage-point decrease in discount rate | 0.1 |
United Kingdom defined benefit Retirement plan (the U.K. Plan) | |
Impact of one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate on periodic pension expense in next fiscal year | |
One-percentage-point increase in expected long-term rate of return | (1.4) |
One-percentage-point increase in discount rate | (0.3) |
One-percentage-point decrease in expected long-term rate of return | 1.4 |
One-percentage-point decrease in discount rate | 0.2 |
Impact of one-percentage-point increase and a one-percentage-point decrease in the discount rate on retirement obligation as of December 31, 2019 | |
One-percentage-point increase in discount rate | (21.6) |
One-percentage-point decrease in discount rate | $ 29 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income before income taxes: | |||
U.S. | $ 0.8 | $ 284.1 | $ 222.9 |
International | (28.5) | 95.6 | 110.6 |
(Loss) income before income taxes, and equity in earnings | (27.7) | 379.7 | 333.5 |
Current: | |||
U.S. | (11.3) | 49.1 | 18.3 |
International | 1.7 | 11.8 | 14.9 |
Current income tax (benefit) expense | (9.6) | 60.9 | 33.2 |
Deferred: | |||
U.S. | 0.1 | 3.8 | 26.8 |
International | (51.5) | 12.1 | 2.5 |
Deferred income tax (benefit) expense | (51.4) | 15.9 | 29.3 |
Total income tax (benefit) expense | $ (61) | $ 76.8 | $ 62.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% | |
Income tax provision for undistributed foreign earnings | $ 0 | |||
Unremitted foreign earnings | 720,200,000 | |||
Net change in the total valuation allowance | 37,800,000 | $ 4,100,000 | ||
Tax credit carryforwards | 9,900,000 | 8,600,000 | ||
Unrecognized tax benefits | 10,500,000 | 18,100,000 | $ 7,500,000 | $ 12,300,000 |
Unrecognized tax benefits that impact on effective tax rate | 2,400,000 | |||
Interest expense (income) related to unrecognized tax benefit | 0 | 0 | ||
Accrued interest related to the unrecognized tax benefit reversed | 200,000 | |||
Interest accrued on unrecognized tax benefits | 0 | $ 200,000 | ||
Decrease in reasonably possible unrecognized tax benefits within next twelve months | 1,000,000 | |||
U.S. | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 6,700,000 | |||
U.S. | Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Statute of limitations on years that can be open for examination | 3 years | |||
U.S. | Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Statute of limitations on years that can be open for examination | 5 years | |||
Foreign country | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 380,200,000 | |||
Valuation allowance on net operating losses | $ 500,000 | |||
Foreign country | Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Statute of limitations on years that can be open for examination | 3 years | |||
Foreign country | Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Statute of limitations on years that can be open for examination | 5 years |
Income Taxes - Schedule of a Re
Income Taxes - Schedule of a Reconciliation of the Provision for Income Taxes at the U.S. Federal Statutory Income Tax Rate to the Actual Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of provision for income taxes at U.S. federal statutory income tax rate to effective income tax rate | |||
(Benefit) provision for taxes at U.S. federal statutory rate | $ (5.8) | $ 79.7 | $ 70 |
State and local taxes, net of federal benefit | (4.2) | 3.6 | 7.2 |
Foreign effective rate differential | (1.9) | 5.1 | 4.6 |
Tax credits | (3) | (8.8) | (7.8) |
Change in valuation allowance | (39.5) | (1.9) | (3.4) |
Remeasurement of deferred taxes | 3.5 | 0.4 | (9) |
Transition tax on undistributed foreign earnings | 1.6 | ||
Excess tax benefits on stock-based compensation | (0.9) | (4.9) | (4.6) |
Other | (4.3) | 1 | (0.5) |
(Decrease) increase in reserves for uncertain tax positions | (4.9) | 1.2 | (1.3) |
Global intangible low taxed income | 1.4 | 5.7 | |
Total income tax (benefit) expense | $ (61) | $ 76.8 | $ 62.5 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Net operating loss carryforwards | $ 96.5 | $ 71.6 |
Capital loss carryforward | 1.6 | 1.7 |
ASC 606 - revenue from contracts with customers | 8.4 | 9.9 |
Tax credit carryforwards | 9.9 | 8.6 |
Stock-based compensation | 7.6 | 7.7 |
Other comprehensive income | 6.1 | 6.3 |
Inventory reserves | 9.6 | 11.8 |
Reserves and other | 5.2 | 1.5 |
Subtotal | 144.9 | 119.1 |
Valuation allowance | (6.9) | (44.7) |
Total assets | 138 | 74.4 |
Liabilities | ||
Accelerated depreciation | (194.5) | (189.1) |
Accelerated amortization | (14.8) | (13.2) |
Other | (8.8) | (6) |
Total liabilities | (218.1) | (208.3) |
Net deferred tax liabilities | $ (80.1) | $ (133.9) |
Income Taxes - Schedule of Clas
Income Taxes - Schedule of Classification of Deferred Tax Assets and Deferred Tax Liabilities in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets and deferred tax liabilities as presented in consolidated balance sheets | ||
Long-term deferred tax assets, net | $ 72.9 | $ 21.8 |
Long-term deferred tax liability, net | (153) | (155.7) |
Net deferred tax liabilities | $ (80.1) | $ (133.9) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity related to unrecognized tax benefit | |||
Balance at the beginning of the period | $ 18.1 | $ 7.5 | $ 12.3 |
Additions based on tax positions related to the current year | 0.3 | 11 | 1.1 |
(Reductions) additions for tax positions of prior years | (7.9) | (0.1) | (5.7) |
Expiration of the statute of limitations for the assessment of taxes | (0.3) | (0.3) | |
Other, including currency translation | 0.1 | ||
Balance at the end of the period | $ 10.5 | $ 18.1 | $ 7.5 |
Capital Stock - Schedule of Com
Capital Stock - Schedule of Common Stock Outstanding (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common stock: | |||
Balance, beginning of year | 109.3 | 108.5 | 107.8 |
Activity under stock plans | 0.4 | 0.8 | 0.7 |
Balance, end of year | 109.7 | 109.3 | 108.5 |
Treasury stock: | |||
Balance, beginning of year | 25.7 | 23.7 | 18.2 |
Repurchased | 0.4 | 2 | 5.5 |
Balance, end of year | 26.1 | 25.7 | 23.7 |
Common stock outstanding | 83.6 | 83.6 | 84.8 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) | Apr. 06, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2018 |
Equity Class Of Treasury Stock [Line Items] | |||||
Total cost of shares repurchased | $ 24,600,000 | $ 143,000,000 | $ 357,700,000 | ||
Dividends per share of common stock | $ 0.17 | $ 0.64 | $ 0.55 | ||
Dividends paid | $ 14,200,000 | $ 54,200,000 | $ 48,400,000 | ||
Dividend Declared | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Dividends payable, date declared | Apr. 6, 2020 | ||||
Number of preferred share purchase right declared as divided per common stock | 1 | ||||
Dividends payable,record date | Apr. 6, 2020 | ||||
Maximum percentage of common stock acquisition allowed by board of directors under rights plan | 15.00% | ||||
Number of days after public announcement rights exercisable for acquiring person | 10 days | ||||
Rights expiration date | Apr. 6, 2021 | ||||
Dividend Declared | Series A Junior Participating Preferred Stock | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Exercise price of rights | $ 150 | ||||
2018 Repurchase Plan | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Authorized amount to repurchase outstanding common stock | $ 500,000,000 | ||||
Remaining authorized amount to repurchase outstanding common stock | $ 217,200,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue recognition, description of timing | As our production cycle is typically six months or less, it is expected that goods related to the revenue represented in that adjustment will be shipped and billed within the next twelve months. |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Market (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Consolidated Net Sales | $ 295.8 | $ 286.9 | $ 378.7 | $ 541 | $ 564.3 | $ 572.5 | $ 609 | $ 609.9 | $ 1,502.4 | $ 2,355.7 | $ 2,189.1 |
Commercial Aerospace | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Consolidated Net Sales | 822.3 | 1,597.7 | 1,525 | ||||||||
Space & Defense | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Consolidated Net Sales | 448.5 | 444.7 | 369.9 | ||||||||
Industrial | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Consolidated Net Sales | $ 231.6 | $ 313.3 | $ 294.2 |
Revenue - Schedule of Activity
Revenue - Schedule of Activity Related to Contract Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer Asset [Line Items] | ||
Beginning Balance | $ 52.7 | $ 50.5 |
Net revenue billed | (9.6) | 2.2 |
Ending Balance | 43.1 | 52.7 |
Composite Materials | ||
Change in Contract with Customer Asset [Line Items] | ||
Beginning Balance | 12.8 | 12.9 |
Net revenue billed | (5) | (0.1) |
Ending Balance | 7.8 | 12.8 |
Engineered Products | ||
Change in Contract with Customer Asset [Line Items] | ||
Beginning Balance | 39.9 | 37.6 |
Net revenue billed | (4.6) | 2.3 |
Ending Balance | $ 35.3 | $ 39.9 |
Other Operating Expense (Inco_3
Other Operating Expense (Income) - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Operating Expense (Income) [Line Items] | |||
Restructuring charge | $ 42,800,000 | $ 7,700,000 | |
Asset impairments | 10,100,000 | ||
Anticipated future cash payments | 14,200,000 | $ 1,600,000 | |
Other operating expenses | (57,900,000) | $ 0 | $ (7,700,000) |
Terminated Merger | Woodward, Inc | |||
Other Operating Expense (Income) [Line Items] | |||
Other operating expenses | $ 15,100,000 |
Other Operating Expense (Inco_4
Other Operating Expense (Income) - Schedule of Other Operating Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Other Operating Expense (Income) [Line Items] | ||
Beginning Balance | $ 1.6 | |
Restructuring Charge | 42.8 | $ 7.7 |
FX Impact | 0.1 | |
Cash Paid | (21.6) | |
Non-Cash | (8.7) | |
Ending Balance | 14.2 | |
Employee termination | ||
Other Operating Expense (Income) [Line Items] | ||
Beginning Balance | 1.6 | |
Restructuring Charge | 32.3 | |
FX Impact | 0.1 | |
Cash Paid | (20.6) | |
Non-Cash | 0.8 | |
Ending Balance | 14.2 | |
Impairment and other | ||
Other Operating Expense (Income) [Line Items] | ||
Restructuring Charge | 10.5 | |
Cash Paid | (1) | |
Non-Cash | $ (9.5) |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense by Type of Award (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 14.7 | $ 17.7 | $ 16 |
Tax benefit from stock exercised and converted during the period | 4.5 | 9.1 | 7.8 |
Non-qualified stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 6.8 | 4.5 | 3.6 |
Restricted stock, service based (“RSUs”) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 8.4 | 6.4 | 6.1 |
Restricted stock, performance based (“PRSUs”) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | (0.7) | 6.2 | 5.8 |
Employee stock purchase plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0.2 | $ 0.6 | $ 0.5 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cash received from stock option exercises | $ 3,300,000 | $ 10,700,000 | $ 5,100,000 | |
Cash used for shares withheld to satisfy employee tax obligations for RSUs and PRSUs converted | $ 7,700,000 | 6,200,000 | $ 5,900,000 | |
Shares authorized for future grant under stock plan (in shares) | 4,000,000 | |||
Non-qualified stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting period | 3 years | |||
Options expiration period | 10 years | |||
Period of historical option activity considered to determine expected option life | 10 years | |||
Unrecognized compensation cost | $ 3,800,000 | $ 1,500,000 | ||
Non-qualified stock options | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period over which unrecognized compensation costs will be recognized | 1 year | |||
Non-qualified stock options | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period over which unrecognized compensation costs will be recognized | 3 years | |||
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares outstanding | 543,391 | 400,000 | 500,000 | 500,000 |
Unrecognized compensation cost | $ 8,800,000 | |||
RSUs | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period over which unrecognized compensation costs will be recognized | 1 year | |||
RSUs | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period over which unrecognized compensation costs will be recognized | 3 years | |||
PRSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares outstanding | 294,941 | 300,000 | 300,000 | 400,000 |
Unrecognized compensation cost | $ 1,700,000 | |||
Performance period | 3 years | 3 years | 3 years | |
Shares authorized for issuance under stock plan | 3,300,000 | |||
PRSUs | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period over which unrecognized compensation costs will be recognized | 1 year | |||
Performance period | 3 years | |||
PRSUs | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period over which unrecognized compensation costs will be recognized | 3 years | |||
Employee stock purchase plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum contribution by eligible employees as percentage of base earnings (as a percent) | 10.00% | |||
Maximum contribution by eligible employees in a calendar year | $ 25,000 | |||
Common stock purchase price as percentage of fair market value (as a percent) | 85.00% | |||
Shares purchased under employee stock purchase plan (in shares) | 35,000 | 48,236 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Details) - Non-qualified stock options - $ / shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options | ||||
Outstanding at the beginning of the period | 1.3 | 1.5 | 1.7 | |
Options granted | 0.5 | 0.2 | 0.2 | |
Options exercised | (0.2) | (0.4) | (0.4) | |
Outstanding at the end of the period | 1.6 | 1.3 | 1.5 | 1.7 |
Weighted-Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 47.92 | $ 38.97 | $ 31.18 | |
Options granted (in dollars per share) | 54.82 | 65.56 | 68.15 | |
Options exercised (in dollars per share) | 32.18 | 25.95 | 16.06 | |
Outstanding at the end of the period (in dollars per share) | $ 51.07 | $ 47.92 | $ 38.97 | $ 31.18 |
Remaining Contractual Life | ||||
Remaining Contractual Life | 6 years 14 days | 5 years 7 months 6 days | 5 years 2 months 12 days | 5 years 2 months 8 days |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Other Stock Option Statistics (Details) - Non-qualified stock options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other disclosures | ||
Aggregate intrinsic value of outstanding options | $ 8.3 | $ 31.8 |
Aggregate intrinsic value of exercisable options | 5.7 | 28 |
Total intrinsic value of options exercised | $ 2.5 | $ 22.9 |
Total number of options exercisable (in shares) | 0.9 | 0.9 |
Weighted average exercise price of options exercisable (in dollars per share) | $ 46.29 | $ 41 |
Total unrecognized compensation cost on nonvested options | $ 3.8 | $ 1.5 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Other Stock Option Statistics (Parenthetical) (Details) - Non-qualified stock options | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Period over which unrecognized compensation costs will be recognized | 1 year |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Period over which unrecognized compensation costs will be recognized | 3 years |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Assumptions Used in Determining the Estimated the Fair Value of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions used in determining the estimated fair value of stock options | |||
Risk-free interest rate (as a percent) | 0.85% | 2.61% | 2.53% |
Expected option life | 5 years 11 months 15 days | 5 years 11 months 26 days | 5 years 11 months 12 days |
Dividend yield (as a percent) | 1.10% | 0.80% | 0.70% |
Volatility (as a percent) | 44.35% | 35.05% | 35.64% |
Weighted-average fair value per option granted | $ 19.50 | $ 22.90 | $ 24.36 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of the Company's Service Based RSU Activity (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of RSUs | |||
Outstanding at the beginning of the period | 400,000 | 500,000 | 500,000 |
Granted | 200,000 | 100,000 | 100,000 |
Issued | (100,000) | (200,000) | (100,000) |
Outstanding at the end of the period | 543,391 | 400,000 | 500,000 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period | $ 48.06 | $ 41.65 | $ 36.75 |
Granted | 51.51 | 68.85 | 66.63 |
Issued | 51.82 | 44.75 | 41.46 |
Outstanding at the end of the period | $ 47.98 | $ 48.06 | $ 41.65 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of the Company's PRSU Activity (Details) - PRSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of PRSUs | |||
Outstanding at the beginning of the period | 300,000 | 300,000 | 400,000 |
Granted | 100,000 | 100,000 | 100,000 |
Issued | (100,000) | (100,000) | (200,000) |
Outstanding at the end of the period | 294,941 | 300,000 | 300,000 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period | $ 60.48 | $ 51.75 | $ 45.35 |
Granted | 74.74 | 65.56 | 68.15 |
Issued | 50.50 | 41.71 | 43.96 |
Outstanding at the end of the period | $ 68.77 | $ 60.48 | $ 51.75 |
Net Income Per Common Share - S
Net Income Per Common Share - Summary of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic net income per common share: | |||
Net income | $ 31.7 | $ 306.6 | $ 276.6 |
Weighted average common shares outstanding - Basic (in shares) | 83.8 | 84.9 | 87.9 |
Basic net income per common share | $ 0.38 | $ 3.61 | $ 3.15 |
Diluted net income per common share: | |||
Weighted average common shares outstanding - Basic (in shares) | 83.8 | 84.9 | 87.9 |
Plus incremental shares from assumed conversions: | |||
Weighted average common shares outstanding -Dilutive (in shares) | 84 | 85.8 | 89 |
Dilutive net income per common share | $ 0.38 | $ 3.57 | $ 3.11 |
Anti-dilutive shares outstanding, excluded from computation (in shares) | 0.9 | 0.1 | 0.2 |
Restricted Stock Units | |||
Plus incremental shares from assumed conversions: | |||
Incremental shares from assumed conversions | 0.1 | 0.3 | 0.4 |
Stock Options | |||
Plus incremental shares from assumed conversions: | |||
Incremental shares from assumed conversions | 0.1 | 0.6 | 0.7 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) € in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2020USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2020EUR (€) | |
Derivative [Line Items] | |||||
Carrying value / fair value of derivative liabilities included in other non-current liabilities | $ 11,100,000 | ||||
Carrying value of derivative current asset | 300,000 | ||||
Foreign currency unrealized gain expected to be reclassified into earnings over next twelve months | 6,500,000 | ||||
Foreign currency unrealized gain expected to be reclassified into earnings over next twelve months, net of tax | 1,800,000 | ||||
3.95% senior unsecured notes due 2027 | |||||
Derivative [Line Items] | |||||
Proceeds from issue of senior notes in settlement of derivatives | 10,000,000 | ||||
Interest Rate Swap Agreements | |||||
Derivative [Line Items] | |||||
Carrying value / fair value of derivative liabilities | $ 0 | $ 600,000 | |||
Treasury Lock | Interest Lock Agreement | 3.95% senior unsecured notes due 2027 | |||||
Derivative [Line Items] | |||||
Percentage of effective interest rate benefit | 0.25% | ||||
Cross Currency and Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Floating rate obligation | $ 319,900,000 | € 270 | |||
Derivative fixed interest rate (as a percent) | 0.30% | 0.30% | |||
Derivative amortization period | 5 years | ||||
Derivative, additional fixed interest rate | 1.115% | 1.115% | |||
Derivative swaps, frequency of periodic payment | semi-annually | ||||
Derivative swaps, principal amortize at Nov. 15, 2021 | $ 59,200,000 | € 50 | |||
Derivative swaps, principal amortize at Nov. 15, 2022 | 59,200,000 | 50 | |||
Derivative swaps, principal amortize at Nov. 15, 2023 | 59,200,000 | 50 | |||
Derivative swaps, principal amortize at Nov. 15, 2024 | 59,200,000 | 50 | |||
Derivative swaps, principal amortize at Nov. 15, 2025 | $ 82,900,000 | € 70 | |||
Foreign Currency Forward Exchange Contracts | |||||
Derivative [Line Items] | |||||
Number of credit contingency features | item | 0 | ||||
Foreign Currency Forward Exchange Contracts | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Gains (losses) in other comprehensive income, effective portion | $ 10,900,000 | (11,100,000) | $ (25,800,000) | ||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Carrying value / fair value of derivative liabilities | 2,500,000 | 15,500,000 | |||
Carrying value / fair value of derivative liabilities included in other non-current liabilities | 2,900,000 | ||||
Notional amount | 250,300,000 | 426,900,000 | |||
Carrying value / fair value of derivative assets | 16,000,000 | 3,700,000 | |||
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets | 10,700,000 | ||||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Maximum | |||||
Derivative [Line Items] | |||||
Carrying value / fair value of derivative liabilities included in other non-current liabilities | 100,000 | ||||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in gross margin | 14,500,000 | 13,100,000 | |||
Foreign Currency Forward Exchange Contracts | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Carrying value / fair value of derivative liabilities | 100,000 | ||||
Foreign exchange net gains (losses) on derivative contracts not designated as hedges | (2,400,000) | 400,000 | $ (4,300,000) | ||
Commodity Swap Agreements | |||||
Derivative [Line Items] | |||||
Carrying value / fair value of derivative liabilities | 1,100,000 | 5,400,000 | |||
Carrying value / fair value of derivative liabilities included in other non-current liabilities | $ 1,100,000 | ||||
Notional amount | 9,100,000 | ||||
Carrying value / fair value of derivative assets | 2,200,000 | ||||
Carrying value / fair value of derivative assets included in prepaid expenses and other current assets | $ 1,500,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Balance | $ 1,446.1 | $ 1,322 | $ 1,495.1 |
Balance | 1,510.2 | 1,446.1 | 1,322 |
Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Balance | (6.9) | (5.8) | |
Balance | 15.6 | (6.9) | (5.8) |
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Balance | (8.4) | (10.6) | 8.6 |
Loss reclassified to net sales | 10.9 | 10.1 | 0.9 |
Increase (decrease) in fair value | 8.1 | (7.9) | (20.1) |
Balance | $ 10.6 | $ (8.4) | $ (10.6) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2017PRP | Mar. 31, 2016USD ($)mi | Dec. 31, 2020USD ($)entitymi | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||
Accrual for environmental loss contingencies | $ 2,400,000 | $ 2,500,000 | $ 2,700,000 | $ 2,800,000 | ||
Aggregate environmental accruals included in current other accrued liabilities | 500,000 | 600,000 | ||||
Amount which is better estimate within range | 0 | 0 | ||||
Remediation accrual balance if accrued at high end of the range of possible outcomes | $ 16,000,000 | 16,000,000 | ||||
Lower Passaic River | ||||||
Loss Contingencies [Line Items] | ||||||
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | entity | 48 | |||||
Length of river to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of environmental conditions | mi | 17 | |||||
Number of identified non governmental potentially responsible parties | PRP | 120 | |||||
Accrual for environmental loss contingencies | $ 2,100,000 | $ 2,100,000 | ||||
Lower Passaic River | Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 8 | |||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 970,000,000 | |||||
Lower Passaic River | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 9 | |||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 2,070,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Environmental Remediation Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Environmental remediation reserve activity | |||
Beginning remediation accrual balance | $ 2.5 | $ 2.7 | $ 2.8 |
Current period expenses | 0.3 | ||
Cash expenditures | (0.1) | (0.2) | (0.4) |
Ending remediation accrual balance | $ 2.4 | $ 2.5 | $ 2.7 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in accrued product warranty cost | |||
Balance at the beginning of the period | $ 5.5 | $ 4.8 | $ 3.6 |
Warranty expense | 1.7 | 2.9 | 4.6 |
Deductions and other | (4.6) | (2.2) | (3.4) |
Balance at the end of the period | $ 2.6 | $ 5.5 | $ 4.8 |
Supplemental Cash Flow - Schedu
Supplemental Cash Flow - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for: | |||
Interest | $ 41.6 | $ 44.7 | $ 37.2 |
Taxes | $ (0.2) | $ 56.9 | $ 36.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 1,446.1 | $ 1,322 | $ 1,495.1 |
Other comprehensive loss before reclassifications | 38.3 | (21.6) | |
Amounts reclassified from accumulated other comprehensive loss | 20.8 | 10.9 | |
Total other comprehensive income (loss) | 59.1 | (10.7) | (64.6) |
Balance | 1,510.2 | 1,446.1 | 1,322 |
Unrecognized Net Defined Benefit Plan Costs | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (22.4) | (15.4) | |
Other comprehensive loss before reclassifications | (16.6) | (6.2) | |
Amounts reclassified from accumulated other comprehensive loss | (1.4) | (0.8) | |
Total other comprehensive income (loss) | (18) | (7) | |
Balance | (40.4) | (22.4) | (15.4) |
Change in Fair Value of Derivatives Products | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (6.9) | (5.8) | |
Other comprehensive loss before reclassifications | 0.3 | (12.8) | |
Amounts reclassified from accumulated other comprehensive loss | 22.2 | 11.7 | |
Total other comprehensive income (loss) | 22.5 | (1.1) | |
Balance | 15.6 | (6.9) | (5.8) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (89.4) | (86.8) | |
Other comprehensive loss before reclassifications | 54.6 | (2.6) | |
Total other comprehensive income (loss) | 54.6 | (2.6) | |
Balance | (34.8) | (89.4) | (86.8) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (118.7) | (108) | (45) |
Total other comprehensive income (loss) | 59.1 | (10.7) | (64.6) |
Balance | $ (59.6) | $ (118.7) | $ (108) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclass to retained earnings as result of adoption of ASU 2018-02 | $ 1.6 | ||
Unrecognized Net Defined Benefit Plan Costs | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification adjustment from AOCI on unrecognized net defined plan costs, net gains | $ 1 | $ 1 | 0.7 |
Reclassification adjustment from AOCI on unrecognized net defined plan costs, tax | 0.2 | 0.2 | $ 0.2 |
Change in Fair Value of Derivatives Products | Foreign Currency Forward Exchange Contracts | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net gains (losses) | (14.5) | (13.1) | |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 3.5 | 3 | |
Change in Fair Value of Derivatives Products | Interest Rate Swap Agreements | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net gains (losses) | (9.3) | 1.3 | |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 2.2 | 0.2 | |
Change in Fair Value of Derivatives Products | Commodity Swaps | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification adjustment from AOCI on derivatives, net gains (losses) | (5.5) | (3.5) | |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | $ 1.3 | $ 0.8 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - item | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Number of reporting segments | 2 | ||
Net sales | Customer concentration | Airbus and its subcontractors | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 33.00% | 39.00% | |
Net sales | Customer concentration | Airbus and its subcontractors | Commercial Aerospace Market Applications | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 30.00% | ||
Net sales | Customer concentration | Airbus and its subcontractors | Space & Defense Market Applications | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 3.00% | ||
Net sales | Customer concentration | Airbus and its subcontractors | Composite Materials | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 38.00% | 44.00% | 46.00% |
Net sales | Customer concentration | Boeing company and its subcontractors | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 19.00% | 25.00% | |
Net sales | Customer concentration | Boeing company and its subcontractors | Commercial Aerospace Market Applications | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 16.00% | ||
Net sales | Customer concentration | Boeing company and its subcontractors | Space & Defense Market Applications | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 3.00% | ||
Net sales | Customer concentration | Boeing company and its subcontractors | Composite Materials | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 13.00% | 17.00% | 16.00% |
Net sales | Customer concentration | Boeing company and its subcontractors | Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Concentration percentage (as a percent) | 40.00% | 55.00% | 63.00% |
Segment Information - Schedule
Segment Information - Schedule of Operating Segment Reporting Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 295,800,000 | $ 286,900,000 | $ 378,700,000 | $ 541,000,000 | $ 564,300,000 | $ 572,500,000 | $ 609,000,000 | $ 609,900,000 | $ 1,502,400,000 | $ 2,355,700,000 | $ 2,189,100,000 |
Operating income (loss) | (20,400,000) | $ (37,600,000) | $ 6,400,000 | $ 65,700,000 | 97,400,000 | $ 109,900,000 | $ 115,100,000 | $ 102,800,000 | 14,100,000 | 425,200,000 | 371,200,000 |
Depreciation and amortization | 140,900,000 | 141,700,000 | 123,100,000 | ||||||||
Equity in earnings from affiliated companies | (1,600,000) | 3,700,000 | 5,600,000 | ||||||||
Other operating expense | 57,900,000 | 0 | 7,700,000 | ||||||||
Segment assets | 2,917,800,000 | 3,128,600,000 | 2,917,800,000 | 3,128,600,000 | 2,824,100,000 | ||||||
Investments in affiliated companies | 44,700,000 | 46,500,000 | 44,700,000 | 46,500,000 | 48,700,000 | ||||||
Accrual basis additions to property, plant and equipment | 42,500,000 | 191,000,000 | 179,100,000 | ||||||||
Corporate & Other and Intersegment Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (56,400,000) | (84,200,000) | (74,700,000) | ||||||||
Operating income (loss) | (56,000,000) | (58,100,000) | (53,200,000) | ||||||||
Depreciation and amortization | 100,000 | 100,000 | 100,000 | ||||||||
Equity in earnings from affiliated companies | (200,000) | (300,000) | |||||||||
Other operating expense | 16,000,000 | ||||||||||
Segment assets | 61,700,000 | (6,200,000) | 61,700,000 | (6,200,000) | 49,300,000 | ||||||
Investments in affiliated companies | 7,700,000 | 8,200,000 | 7,700,000 | 8,200,000 | 14,200,000 | ||||||
Composite Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,185,900,000 | 1,863,100,000 | 1,770,500,000 | ||||||||
Composite Materials | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | 60,700,000 | 411,300,000 | 373,800,000 | ||||||||
Depreciation and amortization | 125,500,000 | 126,500,000 | 113,900,000 | ||||||||
Equity in earnings from affiliated companies | (300,000) | (300,000) | |||||||||
Other operating expense | 32,100,000 | ||||||||||
Segment assets | 2,382,300,000 | 2,669,600,000 | 2,382,300,000 | 2,669,600,000 | 2,501,900,000 | ||||||
Investments in affiliated companies | 2,000,000 | 2,200,000 | 2,000,000 | 2,200,000 | 2,400,000 | ||||||
Accrual basis additions to property, plant and equipment | 38,600,000 | 185,800,000 | 173,500,000 | ||||||||
Composite Materials | Intersegment Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 53,900,000 | 83,400,000 | 74,600,000 | ||||||||
Engineered Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 316,500,000 | 492,600,000 | 418,600,000 | ||||||||
Engineered Products | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | 9,400,000 | 72,000,000 | 50,600,000 | ||||||||
Depreciation and amortization | 15,300,000 | 15,100,000 | 9,100,000 | ||||||||
Equity in earnings from affiliated companies | (1,100,000) | 4,300,000 | 5,600,000 | ||||||||
Other operating expense | 9,800,000 | 7,700,000 | |||||||||
Segment assets | 473,800,000 | 465,200,000 | 473,800,000 | 465,200,000 | 272,900,000 | ||||||
Investments in affiliated companies | $ 35,000,000 | $ 36,100,000 | 35,000,000 | 36,100,000 | 32,100,000 | ||||||
Accrual basis additions to property, plant and equipment | 3,900,000 | 5,200,000 | 5,600,000 | ||||||||
Engineered Products | Intersegment Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 2,500,000 | $ 800,000 | $ 100,000 |
Segment Information - Schedul_2
Segment Information - Schedule of Net Sales and Long-Lived Assets, by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales and long-lived assets | |||||||||||
Net Sales | $ 295.8 | $ 286.9 | $ 378.7 | $ 541 | $ 564.3 | $ 572.5 | $ 609 | $ 609.9 | $ 1,502.4 | $ 2,355.7 | $ 2,189.1 |
Consolidated Long-lived Assets | 2,210.5 | 2,289.7 | 2,210.5 | 2,289.7 | 2,018.8 | ||||||
United States | |||||||||||
Net sales and long-lived assets | |||||||||||
Consolidated Long-lived Assets | 1,523.3 | 1,609.2 | 1,523.3 | 1,609.2 | 1,332.1 | ||||||
United States | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 792.6 | 1,246.9 | 1,055.9 | ||||||||
United States | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 703.5 | 1,083.3 | 909.8 | ||||||||
International | |||||||||||
Net sales and long-lived assets | |||||||||||
Consolidated Long-lived Assets | 687.2 | 680.5 | 687.2 | 680.5 | 686.7 | ||||||
International | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 709.8 | 1,108.8 | 1,133.2 | ||||||||
International | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 798.9 | 1,272.4 | 1,279.3 | ||||||||
France | |||||||||||
Net sales and long-lived assets | |||||||||||
Consolidated Long-lived Assets | 398.5 | 387.1 | 398.5 | 387.1 | 397.7 | ||||||
France | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 226.1 | 364.3 | 369.8 | ||||||||
France | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 106.7 | 191.9 | 201.7 | ||||||||
Germany | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 127.1 | 221.3 | 216 | ||||||||
Germany | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 124.6 | 212.8 | 233.1 | ||||||||
Spain | |||||||||||
Net sales and long-lived assets | |||||||||||
Consolidated Long-lived Assets | 57.7 | 57.2 | 57.7 | 57.2 | 56.6 | ||||||
Spain | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 101.5 | 166.6 | 189.5 | ||||||||
Spain | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 107.4 | 188 | 194.1 | ||||||||
Austria | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 83.6 | 110.1 | 111.4 | ||||||||
United Kingdom | |||||||||||
Net sales and long-lived assets | |||||||||||
Consolidated Long-lived Assets | 144.4 | 151.9 | 144.4 | 151.9 | 146.1 | ||||||
United Kingdom | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 104.8 | 168.9 | 167.3 | ||||||||
United Kingdom | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 37.7 | 77.4 | 79 | ||||||||
Other | |||||||||||
Net sales and long-lived assets | |||||||||||
Consolidated Long-lived Assets | $ 86.6 | $ 84.3 | 86.6 | 84.3 | 86.3 | ||||||
Other | Net sales by Geography | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | 66.7 | 77.6 | 79.2 | ||||||||
Other | Net Sales by External Customers | |||||||||||
Net sales and long-lived assets | |||||||||||
Net Sales | $ 422.5 | $ 602.3 | $ 571.4 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)Business | |
Business Acquisition [Line Items] | ||
Goodwill | $ 193.1 | |
Number of businesses acquired | Business | 0 | |
Engineered Products | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 115.4 | |
ARC Technologies LLC | ||
Business Acquisition [Line Items] | ||
Business acquisition, cash paid | $ 163.2 | |
ARC Technologies LLC | Engineered Products | ||
Business Acquisition [Line Items] | ||
Goodwill | 82.1 | |
Recognized intangible assets and liabilities | $ 63 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)itemLiability | Dec. 31, 2019USD ($)Liability | Dec. 31, 2017USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Number of counterparties, which experienced significant downgrades | item | 0 | ||
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurement with unobservable inputs reconciliation, number of liabilities | Liability | 1 | 1 | |
Level 3 | Acquisition of Oxford Performance Materials, Inc. | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Acquisition of fair value liabilities, contingent consideration | $ 3,300,000 | $ 3,100,000 | $ 2,900,000 |
Level 2 | Fair Value Measured on Recurring Basis | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative assets | 18,400,000 | 4,300,000 | |
Derivative liabilities | 14,800,000 | 21,700,000 | |
Level 2 | Fair Value Measured on Recurring Basis | Interest Rate Swap Agreements | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative liabilities | $ 0 | $ 600,000 | |
Derivative Liability, Measurement Input [Extensible List] | hxl:MeasurementInputLIBORYieldCurveMember | hxl:MeasurementInputLIBORYieldCurveMember | |
Level 2 | Fair Value Measured on Recurring Basis | Foreign Currency Forward Exchange Contracts | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 16,000,000 | $ 4,300,000 | |
Derivative Asset, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | us-gaap:MeasurementInputQuotedPriceMember | |
Derivative liabilities | $ 2,600,000 | $ 15,700,000 | |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | us-gaap:MeasurementInputQuotedPriceMember | |
Level 2 | Fair Value Measured on Recurring Basis | Commodity Swap Agreements | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 2,200,000 | ||
Derivative Asset, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | ||
Derivative liabilities | $ 1,100,000 | $ 5,400,000 | |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputQuotedPriceMember | us-gaap:MeasurementInputQuotedPriceMember | |
Level 2 | Fair Value Measured on Recurring Basis | Cross Currency and Interest Rate Swap | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 300,000 | $ 0 | |
Derivative Asset, Measurement Input [Extensible List] | hxl:USDSecuredOvernightFinancingRateCurvesMember | hxl:USDSecuredOvernightFinancingRateCurvesMember | |
Derivative liabilities | $ 11,100,000 | $ 0 | |
Derivative Liability, Measurement Input [Extensible List] | hxl:USDSecuredOvernightFinancingRateCurvesMember | hxl:USDSecuredOvernightFinancingRateCurvesMember |
Quarterly Financial and Marke_3
Quarterly Financial and Market Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Quarterly Financial Information [Line Items] | |||||||||||
Net sales | $ 295.8 | $ 286.9 | $ 378.7 | $ 541 | $ 564.3 | $ 572.5 | $ 609 | $ 609.9 | $ 1,502.4 | $ 2,355.7 | $ 2,189.1 |
Gross margin | 30.4 | 13.5 | 54.9 | 140.9 | 146.5 | 157.9 | 168.8 | 167.2 | 239.7 | 640.4 | 580.8 |
Operating income (loss) | (20.4) | (37.6) | 6.4 | 65.7 | 97.4 | 109.9 | 115.1 | 102.8 | $ 14.1 | $ 425.2 | $ 371.2 |
Net income (loss) | $ (19.4) | $ 9.7 | $ (1) | $ 42.4 | $ 73.2 | $ 80.3 | $ 80.9 | $ 72.2 | |||
Net income per common share: | |||||||||||
Basic | $ (0.23) | $ 0.12 | $ (0.01) | $ 0.51 | $ 0.87 | $ 0.94 | $ 0.95 | $ 0.85 | |||
Diluted | (0.23) | 0.12 | (0.01) | 0.50 | 0.86 | 0.93 | 0.94 | 0.84 | |||
Maximum | |||||||||||
Market price: | |||||||||||
Common Stock Value during the Period | 56 | 46.71 | 47.91 | 79.89 | 80.29 | 85.33 | 80.88 | 72.65 | |||
Minimum | |||||||||||
Market price: | |||||||||||
Common Stock Value during the Period | $ 31.71 | $ 32.57 | $ 26.75 | $ 29.51 | $ 73.31 | $ 77.01 | $ 68 | $ 56.18 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Second Amended Senior Unsecured Credit Facility - Revolving Loan due 2024 - Subsequent Event | Jan. 28, 2021USD ($) |
Subsequent Event [Line Items] | |
Credit agreement amendment effective date | Mar. 31, 2022 |
Debt instrument, covenant terms | During the Liquidity Covenant Period, we will not be subject to a maximum leverage ratio covenant but will instead be required to maintain Liquidity (as defined in the Amended Credit Agreement) of at least $250 million. Additionally, during such period, the Company will be subject to limitations on share repurchases, cash dividends, and its ability to incur secured debt, in each case subject to certain exceptions; the applicable margin and commitment fees are increased; the incremental facility will not be available; and if the Company’s public debt rating is downgraded to (i) BB or lower by Standard & Poor’s and (ii) Ba2 or lower by Moody’s, we will be required to grant liens on certain of our assets, which liens will be released upon the Company’s public debt rating being upgraded to BB+ or higher by Standard & Poor’s or Ba1 or higher by Moody’s. The Company’s current public debt rating is BBB-/Baa3. |
Minimum liquidity amount required to maintain under credit agreement liquidity covenant | $ 250,000,000 |
Maximum borrowing capacity | $ 750,000,000 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts | |||
Changes in valuation allowances and reserves | |||
Balance at beginning of year | $ 0.6 | $ 0.3 | $ 0.3 |
Charged to expense/(recovery) | 0.1 | 0.3 | 1.4 |
Deductions and other | 0.1 | (1.4) | |
Balance at end of year | 0.8 | 0.6 | 0.3 |
Valuation Allowance for Deferred Tax Assets | |||
Changes in valuation allowances and reserves | |||
Balance at beginning of year | 44.7 | 48.8 | 54.9 |
Charged to expense/(recovery) | (39.5) | (4.1) | (3.2) |
Deductions and other | 1.7 | 0 | (2.9) |
Balance at end of year | $ 6.9 | $ 44.7 | $ 48.8 |