XML 40 R24.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2015
Financial Instruments |
Financial Instruments | (16) Financial Instruments Fair Value The carrying amounts of cash and cash equivalents, short-term investments, trade receivables and trade payables approximate fair value because of the short maturity of these financial instruments. The fair value of the Company's 5.85% senior notes due 2016 and 5.05% senior notes due 2020 is based on quoted market prices of similar notes (level 2). The fair value of the Company's borrowings outstanding under the Credit Agreement and the Company's variable rate debt approximates its carrying value. The carrying amount and the estimated fair market value of the Company's long-term debt, including the current portion, are as follows:
|  | December 31, |
|  | 2015 |  | 2014 |
|  | (in millions) |
Carrying amount |  | $ | 577.3 |  | $ | 579.7 |
Estimated fair value |  | $ | 586.1 |  | $ | 599.3 |
Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including foreign currency derivatives, deferred compensation plan assets and related liability. There are no cash flow hedges as of December 31, 2015. The fair value of these certain financial assets and liabilities were determined using the following inputs at December 31, 2015 and 2014:
|  | Fair Value Measurements at December 31, 2015 Using: |
|  |  |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs |
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |
|  | (in millions) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Plan asset for deferred compensation(1) |  | $ | 3.3 |  | $ | 3.3 |  | $ | — |  | $ | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total assets |  | $ | 3.3 |  | $ | 3.3 |  | $ | — |  | $ | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Plan liability for deferred compensation(2) |  | $ | 3.3 |  | $ | 3.3 |  | $ | — |  | $ | — |
Redeemable financial instrument(3) |  | $ | 5.7 |  | $ | — |  | $ | — |  | $ | 5.7 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total liabilities |  | $ | 9.0 |  | $ | 3.3 |  | $ | — |  | $ | 5.7 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
|  | Fair Value Measurements at December 31, 2014 Using: |
|  |  |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs |
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |
|  | (in millions) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |
Plan asset for deferred compensation(1) |  | $ | 4.0 |  | $ | 4.0 |  | $ | — |  | $ | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total assets |  | $ | 4.0 |  | $ | 4.0 |  | $ | — |  | $ | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |
Plan liability for deferred compensation(2) |  | $ | 4.0 |  | $ | 4.0 |  | $ | — |  | $ | — |
Contingent consideration(4) |  |  | 2.5 |  |  | — |  |  | — |  |  | 2.5 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total liabilities |  | $ | 6.5 |  | $ | 4.0 |  | $ | — |  | $ | 2.5 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) | Included on the Company's consolidated balance sheet in other assets (other, net).
(2) | Included on the Company's consolidated balance sheet in accrued compensation and benefits.
(3) | Included on the Company's consolidated balance sheet in other noncurrent liabilities as of December 31, 2015 and relates to a mandatorily redeemable equity instrument as part of the Apex acquisition in 2015.
(4) | Included on the Company's consolidated balance sheet in accrued expenses and other liabilities as of December 31, 2014 and relates to the contingent consideration remaining from the Tekmar acquisition.
The table below provides a summary of the changes in fair value of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period December 31, 2014 to December 31, 2015.
|  |  |  |  |  |  |  | Total realized and unrealized (gains) losses included in: |  |  |
|  | Balance December 31, 2014 |  | Settlements |  | Purchases |  | Net earnings adjustments |  | Comprehensive income |  | Balance December 31, 2015 |
|  | (in millions) |
Contingent consideration |  | $ | 2.5 |  | $ | (2.3 | ) |  |  |  |  | — |  | $ | (0.2 | ) |  | — |
Redeemable financial instrument |  |  | — |  |  | — |  | $ | 5.5 |  |  | — |  | $ | 0.2 |  | $ | 5.7 |
In connection with the acquisition of Apex, a liability of $5.5 million was recognized as the estimate of the acquisition date fair value of the mandatorily redeemable equity instrument. This liability is classified as Level 3 under the fair value hierarchy as it is based on the commitment to purchase the remaining 20% of Apex shares within the next three years, which is not observable in the market. The $2.5 million contingent consideration liability balance at December 31, 2014 related to the Tekmar Control Systems acquisition in 2012. This liability was classified as Level 3 under the fair value hierarchy as it was based on the probability of achievement of a future performance metric as of the date of the acquisition, which was not observable in the market. The final contingent consideration payment of $2.3 million was made in the second quarter of 2015. Cash equivalents consist of instruments with remaining maturities of three months or less at the date of purchase and consist primarily of certificates of deposit and money market funds, for which the carrying amount is a reasonable estimate of fair value. The Company uses financial instruments from time to time to enhance its ability to manage risk, including foreign currency and commodity pricing exposures, which exist as part of its ongoing business operations. The use of derivatives exposes the Company to counterparty credit risk for nonperformance and to market risk related to changes in currency exchange rates and commodity prices. The Company manages its exposure to counterparty credit risk through diversification of counterparties. The Company's counterparties in derivative transactions are substantial commercial banks with significant experience using such derivative instruments. The impact of market risk on the fair value and cash flows of the Company's derivative instruments is monitored and the Company restricts the use of derivative financial instruments to hedging activities. The Company does not enter into contracts for trading purposes nor does the Company enter into any contracts for speculative purposes. The use of derivative instruments is approved by senior management under written guidelines. The Company has exposure to a number of foreign currency rates, including the Canadian dollar, the euro, the Chinese yuan and the British pound. To manage this risk, the Company generally uses a layering methodology whereby at the end of any quarter, the Company has generally entered into forward exchange contracts which hedge approximately 50% of the projected intercompany purchase transactions for the next twelve months. The Company primarily uses this strategy for the purchases between Canada and the U.S. The average volume of contracts can vary but generally approximates $0 to $10.0 million in open contracts at the end of any given quarter. At December 31, 2015 and 2014, the Company did not have any open forward exchange contracts. At December 31, 2013, the Company had contracts for notional amounts aggregating approximately $1.0 million. The Company accounts for the forward exchange contracts as an economic hedge and has elected not to designate its derivative instruments as hedging instruments. Realized and unrealized gains and losses on the contracts are recognized in other (income) expense in the consolidated statement of operations. These contracts do not subject the Company to significant market risk from exchange movement because they primarily offset gains and losses on the related foreign currency denominated transactions. The impact of derivative instruments in the consolidated statements of operations was immaterial for 2015, 2014 and 2013. Leases The Company leases certain manufacturing facilities, sales offices, warehouses, and equipment. Generally, the leases carry renewal provisions and require the Company to pay maintenance costs. Future minimum lease payments under capital leases and non-cancelable operating leases as of December 31, 2015 are as follows:
|  | Capital Leases |  | Operating Leases |
|  | (in millions) |
2016 |  | $ | 1.2 |  | $ | 8.8 |
2017 |  |  | 1.2 |  |  | 5.9 |
2018 |  |  | 1.2 |  |  | 3.8 |
2019 |  |  | 1.1 |  |  | 2.7 |
2020 |  |  | 1.0 |  |  | 2.0 |
Thereafter |  |  | 0.2 |  |  | 4.9 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total |  | $ | 5.9 |  | $ | 28.1 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less amount representing interest (at rates ranging from 4.3% to 7.0%) |  |  | 0.4 |  |  |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Present value of net minimum capital lease payments |  |  | 5.5 |  |  |  |
Less current installments of obligations under capital leases |  |  | 1.1 |  |  |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations under capital leases, excluding current installments |  | $ | 4.4 |  |  |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Carrying amounts of assets under capital lease include:
|  | December 31, |
|  | 2015 |  | 2014 |
|  | (in millions) |
Buildings |  |  | 13.8 |  | $ | 15.4 |
Machinery and equipment |  |  | 1.7 |  |  | 1.7 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
|  |  | 15.5 |  |  | 17.1 |
Less accumulated depreciation |  |  | (5.1 | ) |  | (5.0 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
|  |  | 10.4 |  | $ | 12.1 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration