x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2015
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Ohio
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34-0183970
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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5995 Mayfair Road,
P.O. Box 3077, North Canton, Ohio
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44720-8077
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(Address of principal
executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Shares $1.25 Par Value
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New York Stock Exchange
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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•
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Cost
- Streamline the cost structure and improve near-term delivery and execution.
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•
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Cash
- Generate increased free cash flow in order to fund the investments necessary to drive profitable growth, while preserving the ability to return value to shareholders.
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•
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Talent
- Attract and retain the talent necessary to drive innovation and the execution of the transformation strategy.
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•
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Growth
- Return Diebold to a sustainable and profitable growth trajectory.
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•
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On March 16, 2015 - Diebold acquired Phoenix.
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•
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During the first half of 2015, Diebold divested its Venezuela business.
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•
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On October 25, 2015 - Diebold entered into an agreement to divest its North America electronic security business to Securitas AB.
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•
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During 2015 - Diebold narrowed its scope in the Brazil other business to primarily focus on lottery and elections.
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•
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On November 23, 2015 - Diebold and Wincor Nixdorf entered into a business combination agreement (Business Combination) to create a premier self-service company for financial and retail markets.
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•
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On December 18, 2015 - Diebold announced it is forming a new joint venture with Inspur, one of China’s leading IT companies, to provide ATMs and kiosks to the China market.
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•
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Managed Services and Outsourcing
- The Company provides end-to-end managed services and full outsourcing solutions, which include remote monitoring, troubleshooting for self-service customers, transaction processing, currency management, maintenance services and full support via person-to-person or online communication. This helps customers maximize their self-service channel by incorporating new technology, meeting compliance and regulatory mandates, protecting their institutions and reducing costs, all while ensuring a high level of service for their customers. The Company provides value to its customers by offering a comprehensive array of hardware-agnostic managed services and support.
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•
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Professional Services
- The Company’s service organization provides strategic analysis and planning of new systems, systems integration, architectural engineering, consulting and project management that encompass all facets — services, software and technology — of a successful self-service implementation. The Company’s Advisory Services team collaborates with our clients to help define the ideal customer experience, modify processes, refine existing staffing models and deploy technology to meet branch automation objectives.
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•
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Multi-vendor Services -
The Company recently sharpened its focus on securing multi-vendor services contracts primarily in North America. With the prevalence of mixed ATM fleets at financial institutions, the ability to service competitive units allows the Company to offer a differentiated, full service solution to its customers.
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•
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managing a significantly larger combined company;
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•
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integrating and unifying the offerings and services available to customers and coordinating distribution and marketing efforts;
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•
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coordinating corporate and administrative infrastructures and harmonizing insurance coverage;
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•
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unanticipated issues in coordinating accounting, information technology, communications, administration and other systems;
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•
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difficulty addressing possible differences in corporate cultures and management philosophies;
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•
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challenges associated with changing Wincor Nixdorf’s financial reporting from International Financial Reporting Standards (IFRS) to accounting principles generally accepted in the U.S. (U.S GAAP) and compliance with the Sarbanes-Oxley Act of 2002, as amended, and the rules promulgated thereunder by the SEC;
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•
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legal and regulatory compliance;
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•
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creating and implementing uniform standards, controls, procedures and policies;
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•
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litigation relating to the transactions contemplated by a potential post-completion reorganization, including shareholder litigation;
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•
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diversion of management’s attention from other operations;
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•
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maintaining existing agreements and relationships with customers, distributors, providers and vendors and avoiding delays in entering into new agreements with prospective customers, distributors, providers and vendors;
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•
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realizing benefits as a combined company from Wincor Nixdorf’s restructuring program, which Wincor Nixdorf refers to as the Delta Program, and the shift to providing information technology from hardware;
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•
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unforeseen and unexpected liabilities related to the Business Combination, including the risk that certain of the Company's executive officers who will become members of Wincor Nixdorf’s supervisory board may be subject to additional fiduciary duties and liability;
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•
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identifying and eliminating redundant and underperforming functions and assets;
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•
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effecting actions that may be required in connection with obtaining regulatory approvals; and
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•
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a deterioration of credit ratings.
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•
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make it more difficult for the Company to pay or refinance its debts as they become due during adverse economic and industry conditions because the Company may not have sufficient cash flows to make its scheduled debt payments;
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•
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cause the Company to use a larger portion of its cash flow to fund interest and principal payments, reducing the availability of cash to fund working capital, capital expenditures, research and development and other business activities;
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•
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limit the Company’s ability to take advantage of significant business opportunities, such as acquisition opportunities, and to react to changes in market or industry conditions;
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•
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cause the Company to be more vulnerable to general adverse economic and industry conditions;
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•
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cause the Company to be disadvantaged compared to competitors with less leverage;
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•
|
result in a downgrade in the credit rating of the Company or indebtedness of the Company or its subsidiaries, which could increase the cost of borrowings; and
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•
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limit the Company’s ability to borrow additional monies in the future to fund working capital, capital expenditures, research and development and other general corporate purposes.
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•
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combining service and product offerings and entering into new markets in which we are not experienced;
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•
|
convincing customers and distributors that any such transaction will not diminish client service standards or business focus, preventing customers and distributors from deferring purchasing decisions or switching to other suppliers or service providers (which could result in additional obligations to address customer uncertainty), and coordinating service, sales, marketing and distribution efforts;
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•
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consolidating and rationalizing corporate information technology infrastructure, which may include multiple legacy systems from various acquisitions and integrating software code;
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•
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minimizing the diversion of management attention from ongoing business concerns;
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•
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persuading employees that business cultures are compatible, maintaining employee morale and retaining key employees, integrating employees into our company, correctly estimating employee benefit costs and implementing restructuring programs;
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•
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coordinating and combining administrative, service, manufacturing, research and development and other operations, subsidiaries, facilities and relationships with third parties in accordance with local laws and other obligations while maintaining adequate standards, controls and procedures;
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•
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achieving savings from supply chain and administration integration; and
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•
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efficiently divesting combined business operations which may cause increased costs as divested businesses are de-integrated from embedded systems and operations.
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•
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changes in the market acceptance of our services and products;
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•
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customer and competitor consolidation;
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•
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changes in customer preferences;
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•
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declines in general economic conditions;
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•
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changes in environmental regulations that would limit our ability to service and sell products in specific markets;
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•
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macro-economic factors affecting banks, credit unions and other FIs may lead to cost-cutting efforts by customers, which could cause us to lose current or potential customers or achieve less revenue per customer; and
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•
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availability of purchased products.
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•
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fluctuations in currency exchange rates, particularly in China (renminbi), Brazil (real) and EMEA (primarily the euro);
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•
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transportation delays and interruptions;
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•
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political and economic instability and disruptions;
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•
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the failure of foreign governments to abide by international agreements and treaties;
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•
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restrictions on the transfer of funds;
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•
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the imposition of duties, tariffs and other taxes;
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•
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import and export controls;
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•
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changes in governmental policies and regulatory environments;
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•
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ensuring our compliance with U.S. laws and regulations and applicable laws and regulations in other jurisdictions, including the Foreign Corrupt Practices Act (FCPA), the UK Bribery Act, and applicable laws and regulations in other jurisdictions;
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•
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labor unrest and current and changing regulatory environments;
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•
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the uncertainty of product acceptance by different cultures;
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•
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the risks of divergent business expectations or cultural incompatibility inherent in establishing joint ventures with foreign partners;
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•
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difficulties in staffing and managing multi-national operations;
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•
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limitations on the ability to enforce legal rights and remedies;
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•
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reduced protection for intellectual property rights in some countries; and
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•
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potentially adverse tax consequences, including repatriation of profits.
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2015
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|
2014
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2013
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||||||||||||||||||
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High
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Low
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High
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Low
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High
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Low
|
||||||||||||
1st Quarter
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$
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36.49
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$
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30.63
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$
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40.78
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$
|
32.05
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|
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$
|
33.30
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|
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$
|
27.59
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2nd Quarter
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$
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38.94
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$
|
33.21
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$
|
41.45
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$
|
36.20
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|
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$
|
33.95
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|
|
$
|
28.26
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3rd Quarter
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$
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35.79
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$
|
29.16
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$
|
40.90
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$
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35.00
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|
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$
|
35.40
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|
|
$
|
27.89
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4th Quarter
|
$
|
37.98
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|
$
|
29.60
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|
|
$
|
38.67
|
|
|
$
|
32.31
|
|
|
$
|
34.44
|
|
|
$
|
28.88
|
|
Full Year
|
$
|
38.94
|
|
|
$
|
29.16
|
|
|
$
|
41.45
|
|
|
$
|
32.05
|
|
|
$
|
35.40
|
|
|
$
|
27.59
|
|
Period
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans
(2)
|
|||||
October
|
|
137
|
|
|
$
|
37.47
|
|
|
—
|
|
|
2,426,177
|
|
November
|
|
2,871
|
|
|
$
|
33.80
|
|
|
—
|
|
|
2,426,177
|
|
December
|
|
425
|
|
|
$
|
30.80
|
|
|
—
|
|
|
2,426,177
|
|
Total
|
|
3,433
|
|
|
$
|
33.64
|
|
|
—
|
|
|
|
(1)
|
All shares were surrendered or deemed surrendered to the Company in connection with the Company’s stock-based compensation plans.
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(2)
|
The total number of shares repurchased as part of the publicly announced share repurchase plan was 13,450,772 as of
December 31, 2015
. The plan was approved by the Board of Directors in April 1997. The Company may purchase shares from time to time in open market purchases or privately negotiated transactions. The Company may make all or part of the purchases pursuant to accelerated share repurchases or Rule 10b5-1 plans. The plan has no expiration date. The following table provides a summary of Board of Director approvals to repurchase the Company's outstanding common shares:
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|
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Total Number of Shares
Approved for Repurchase
|
1997
|
|
2,000,000
|
2004
|
|
2,000,000
|
2005
|
|
6,000,000
|
2007
|
|
2,000,000
|
2011
|
|
1,876,949
|
2012
|
|
2,000,000
|
|
|
15,876,949
|
(1)
|
There are twenty-five companies included in the Company's first customized peer group (New Peer Group) which are: Actuant Corp., Allegion PLC, Benchmark Electronics Inc., Brady Corp., Convergys Corp., DST Systems, Fidelity National Information Services, Fiserv Inc., Global Payments Inc., Harris Corp., International Game Technology PLC, Intuit Inc., Lexmark International Inc., Logitech International SA, Mettler Toledo International Inc., NCR Corp., Netapp Inc., Outerwall Inc., Pitney-Bowes Inc., Sensata Technologies Holding NV, The Brinks Company, The Timken Company, Unisys Corp., Western Union Company (The) and Woodward Inc.
|
(2)
|
The twenty-five companies included in the Company's second customized peer group (Old Peer Group) are: Actuant Corp., Benchmark Electronics Inc., Brady Corp., Convergys Corp., DST Systems, Fidelity National Information Services, Fiserv Inc., Flowserve Corp., Global Payments Inc., Harris Corp., International Game Technology PLC, Intuit Inc., Lexmark International Inc., Logitech International SA, Mettler Toledo International Inc., NCR Corp., Outerwall Inc., Pitney-Bowes Inc., Sensata Technologies Holding NV, SPX Corp., The Brinks Company, The Timken Company, Unisys Corp., Western Union Company (The) and Woodward Inc.
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
|
(in millions, except per share data)
|
||||||||||||||||||
Results of operations
|
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Net sales
|
$
|
2,419.3
|
|
|
$
|
2,734.8
|
|
|
$
|
2,582.7
|
|
|
$
|
2,724.3
|
|
|
$
|
2,577.4
|
|
Cost of sales
|
1,767.3
|
|
|
2,008.6
|
|
|
1,996.7
|
|
|
2,044.1
|
|
|
1,862.4
|
|
|||||
Gross profit
|
$
|
652.0
|
|
|
$
|
726.2
|
|
|
$
|
586.0
|
|
|
$
|
680.2
|
|
|
$
|
715.0
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amounts attributable to Diebold, Incorporated
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations, net of tax
|
$
|
57.8
|
|
|
$
|
104.7
|
|
|
$
|
(195.3
|
)
|
|
$
|
62.6
|
|
|
$
|
151.8
|
|
Income (loss) from discontinued operations, net of tax
|
15.9
|
|
|
9.7
|
|
|
13.7
|
|
|
11.0
|
|
|
(7.6
|
)
|
|||||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
73.7
|
|
|
$
|
114.4
|
|
|
$
|
(181.6
|
)
|
|
$
|
73.6
|
|
|
$
|
144.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations, net of tax
|
$
|
0.89
|
|
|
$
|
1.62
|
|
|
$
|
(3.06
|
)
|
|
$
|
1.00
|
|
|
$
|
2.36
|
|
Income (loss) from discontinued operations, net of tax
|
0.24
|
|
|
0.15
|
|
|
0.21
|
|
|
$
|
0.17
|
|
|
(0.12
|
)
|
||||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
1.13
|
|
|
$
|
1.77
|
|
|
$
|
(2.85
|
)
|
|
$
|
1.17
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations, net of tax
|
$
|
0.88
|
|
|
$
|
1.61
|
|
|
$
|
(3.06
|
)
|
|
$
|
0.98
|
|
|
$
|
2.35
|
|
Income (loss) from discontinued operations, net of tax
|
0.24
|
|
|
0.15
|
|
|
0.21
|
|
|
$
|
0.17
|
|
|
$
|
(0.12
|
)
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
1.12
|
|
|
$
|
1.76
|
|
|
$
|
(2.85
|
)
|
|
$
|
1.15
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic shares
|
64.9
|
|
|
64.5
|
|
|
63.7
|
|
|
63.1
|
|
|
64.2
|
|
|||||
Diluted shares
|
65.6
|
|
|
65.2
|
|
|
63.7
|
|
|
63.9
|
|
|
64.8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends
|
|
|
|
|
|
|
|
|
|
||||||||||
Common dividends paid
|
$
|
75.6
|
|
|
$
|
74.9
|
|
|
$
|
74.0
|
|
|
$
|
72.8
|
|
|
$
|
72.9
|
|
Common dividends paid per share
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
1.14
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated balance sheet data (as of period end)
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
||||||||||
Current assets
|
$
|
1,643.6
|
|
|
$
|
1,655.5
|
|
|
$
|
1,555.4
|
|
|
$
|
1,814.9
|
|
|
$
|
1,732.3
|
|
Current liabilities
|
$
|
955.8
|
|
|
$
|
1,027.8
|
|
|
$
|
893.8
|
|
|
$
|
838.8
|
|
|
$
|
837.9
|
|
Net working capital
|
$
|
687.8
|
|
|
$
|
627.7
|
|
|
$
|
661.6
|
|
|
$
|
976.1
|
|
|
$
|
894.4
|
|
Property, plant and equipment, net
|
$
|
175.3
|
|
|
$
|
165.7
|
|
|
$
|
160.9
|
|
|
$
|
184.3
|
|
|
$
|
192.7
|
|
Total long-term liabilities
|
$
|
858.0
|
|
|
$
|
759.5
|
|
|
$
|
668.9
|
|
|
$
|
908.8
|
|
|
$
|
834.9
|
|
Total assets
|
$
|
2,249.3
|
|
|
$
|
2,342.1
|
|
|
$
|
2,183.5
|
|
|
$
|
2,592.9
|
|
|
$
|
2,517.4
|
|
Total equity
|
$
|
435.5
|
|
|
$
|
554.8
|
|
|
$
|
620.8
|
|
|
$
|
845.3
|
|
|
$
|
844.6
|
|
•
|
Cost
- Streamline the cost structure and improve near-term delivery and execution.
|
•
|
Cash
- Generate increased free cash flow in order to fund the investments necessary to drive profitable growth, while preserving the ability to return value to shareholders in the form of reliable dividends and, as appropriate, share repurchases.
|
•
|
Talent
- Attract and retain the talent necessary to drive innovation and the focused execution of the transformation strategy.
|
•
|
Growth
- Return Diebold to a sustainable, profitable growth trajectory.
|
•
|
demand for services and software, including managed services and professional services;
|
•
|
timing of self-service equipment upgrades and/or replacement cycles;
|
•
|
demand for products and solutions related to bank branch automation opportunities;
|
•
|
demand for security products and services for the financial and commercial sectors; and
|
•
|
high levels of deployment growth for new self-service products in emerging markets.
|
|
Year ended December 31,
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||
|
|
|
% of Net Sales
|
|
% Change
|
|
|
|
% of Net Sales
|
|
% Change
|
|
|
|
% of Net Sales
|
||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Services
|
$
|
1,394.2
|
|
|
57.6
|
|
(2.7)
|
|
$
|
1,432.8
|
|
|
52.4
|
|
0.8
|
|
$
|
1,420.8
|
|
|
55.0
|
Products
|
1,025.1
|
|
|
42.4
|
|
(21.3)
|
|
1,302.0
|
|
|
47.6
|
|
12.1
|
|
1,161.9
|
|
|
45.0
|
|||
|
2,419.3
|
|
|
100.0
|
|
(11.5)
|
|
2,734.8
|
|
|
100.0
|
|
5.9
|
|
2,582.7
|
|
|
100.0
|
|||
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Services
|
932.8
|
|
|
38.6
|
|
(4.3)
|
|
974.8
|
|
|
35.6
|
|
(7.0)
|
|
1,048.3
|
|
|
40.6
|
|||
Products
|
834.5
|
|
|
34.5
|
|
(19.3)
|
|
1,033.8
|
|
|
37.8
|
|
9.0
|
|
948.4
|
|
|
36.7
|
|||
|
1,767.3
|
|
|
73.1
|
|
(12.0)
|
|
2,008.6
|
|
|
73.4
|
|
0.6
|
|
1,996.7
|
|
|
77.3
|
|||
Gross profit
|
652.0
|
|
|
26.9
|
|
(10.2)
|
|
726.2
|
|
|
26.6
|
|
23.9
|
|
586.0
|
|
|
22.7
|
|||
Selling and administrative expense
|
488.2
|
|
|
20.2
|
|
2.0
|
|
478.4
|
|
|
17.5
|
|
(15.3)
|
|
564.5
|
|
|
21.9
|
|||
Research, development and engineering expense
|
86.9
|
|
|
3.6
|
|
(7.2)
|
|
93.6
|
|
|
3.4
|
|
1.5
|
|
92.2
|
|
|
3.6
|
|||
Impairment of assets
|
18.9
|
|
|
0.8
|
|
N/M
|
|
2.1
|
|
|
0.1
|
|
(97.1)
|
|
72.0
|
|
|
2.8
|
|||
Gain on sale of assets, net
|
(0.6
|
)
|
|
—
|
|
(95.3)
|
|
(12.9
|
)
|
|
(0.5)
|
|
N/M
|
|
(2.4
|
)
|
|
(0.1)
|
|||
|
593.4
|
|
|
24.5
|
|
5.7
|
|
561.2
|
|
|
20.5
|
|
(22.7)
|
|
726.3
|
|
|
28.1
|
|||
Operating profit (loss)
|
58.6
|
|
|
2.4
|
|
(64.5)
|
|
165.0
|
|
|
6.0
|
|
N/M
|
|
(140.3
|
)
|
|
(5.4)
|
|||
Other expense, net
|
(12.8
|
)
|
|
(0.5)
|
|
24.3
|
|
(10.3
|
)
|
|
(0.4)
|
|
N/M
|
|
(1.5
|
)
|
|
(0.1)
|
|||
Income (loss) from continuing operations before taxes
|
45.8
|
|
|
1.9
|
|
(70.4)
|
|
154.7
|
|
|
5.7
|
|
N/M
|
|
(141.8
|
)
|
|
(5.5)
|
|||
Income tax (benefit) expense
|
(13.7
|
)
|
|
(0.6)
|
|
N/M
|
|
47.4
|
|
|
1.7
|
|
(2.1)
|
|
48.4
|
|
|
1.9
|
|||
Income (loss) from continuing operations
|
59.5
|
|
|
2.5
|
|
(44.5)
|
|
107.3
|
|
|
3.9
|
|
N/M
|
|
(190.2
|
)
|
|
(7.4)
|
|||
Income from discontinued operations, net of tax
|
15.9
|
|
|
0.6
|
|
63.9
|
|
9.7
|
|
|
0.4
|
|
(29.2)
|
|
13.7
|
|
|
0.6
|
|||
Net income (loss)
|
75.4
|
|
|
3.1
|
|
(35.6)
|
|
117.0
|
|
|
4.3
|
|
N/M
|
|
(176.5
|
)
|
|
(6.8)
|
|||
Net income attributable to noncontrolling interests
|
1.7
|
|
|
0.1
|
|
(34.6)
|
|
2.6
|
|
|
0.1
|
|
(49.0)
|
|
5.1
|
|
|
0.2
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
73.7
|
|
|
3.0
|
|
(35.6)
|
|
$
|
114.4
|
|
|
4.2
|
|
N/M
|
|
$
|
(181.6
|
)
|
|
(7.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amounts attributable to Diebold, Incorporated
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income (loss) from continuing operations, net of tax
|
$
|
57.8
|
|
|
2.4
|
|
|
|
$
|
104.7
|
|
|
3.8
|
|
|
|
$
|
(195.3
|
)
|
|
(7.6)
|
Income from discontinued operations, net of tax
|
15.9
|
|
|
0.6
|
|
|
|
9.7
|
|
|
0.4
|
|
|
|
13.7
|
|
|
0.6
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
73.7
|
|
|
3.0
|
|
|
|
$
|
114.4
|
|
|
4.2
|
|
|
|
$
|
(181.6
|
)
|
|
(7.0)
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Total financial self-service
|
$
|
2,108.7
|
|
|
$
|
2,197.2
|
|
|
$
|
(88.5
|
)
|
|
(4.0)
|
Total security
|
292.8
|
|
|
312.4
|
|
|
(19.6
|
)
|
|
(6.3)
|
|||
Total financial self-service & security
|
2,401.5
|
|
|
2,509.6
|
|
|
(108.1
|
)
|
|
(4.3)
|
|||
Brazil other
|
17.8
|
|
|
225.2
|
|
|
(207.4
|
)
|
|
(92.1)
|
|||
Total net sales
|
$
|
2,419.3
|
|
|
$
|
2,734.8
|
|
|
$
|
(315.5
|
)
|
|
(11.5)
|
•
|
NA FSS sales increased $6.4 or 0.7 percent due primarily to increased volume in Canada from a large deposit automation upgrade project combined with the incremental sales from the acquisition of Phoenix in the first quarter of 2015. The United States (U.S.) experienced growth in multi-vendor services within the national bank space as significant contracts were won in the first, third and fourth quarters of 2015. This favorability was partially offset by a product volume decline related to two large enterprise accounts in the U.S. and the winding down of the Agilis 3 and Windows 7 upgrade project in the U.S. regional bank space.
|
•
|
Asia Pacific (AP) FSS sales decreased $55.9 or 11.7 percent impacted by $17.8 in unfavorable currency. The decline was primarily attributable to a decrease in product revenue in China where the government is encouraging banks to increase their use of domestic ATM suppliers. This decline was partially offset by an increase in service revenue as India, Philippines and China have experienced growth in their service installation base as well as higher professional services volume across a majority of the region.
|
•
|
EMEA FSS sales decreased $28.3 or 6.7 percent inclusive of a $66.6 unfavorable currency impact mainly related to the weakening of the euro. Excluding the unfavorable currency impact, EMEA FSS sales increased $38.3 due to higher product volume in Turkey and with European distributors, as well as a full year benefit of Cryptera, which was acquired in the third quarter of 2014. In addition to the unfavorable currency, offsetting declines occurred in Italy due to lower product volume while Belgium, Austria and the UK had large projects in 2014.
|
•
|
Latin America (LA) FSS sales decreased $10.7 or 2.5 percent inclusive of $69.5 unfavorable currency impact mainly related to the weakening of the Brazil real. Excluding the unfavorable currency impact, LA FSS sales increased $58.8 due to growth across a majority of the region, including Mexico which experienced double digit growth related to several customers renewing their existing ATM fleets. This was offset by the unfavorable currency impact and the sale of the Company’s equity interest in the Venezuelan joint venture.
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Gross profit - services
|
$
|
461.4
|
|
|
$
|
458.0
|
|
|
$
|
3.4
|
|
|
0.7
|
Gross profit - products
|
190.6
|
|
|
268.2
|
|
|
(77.6
|
)
|
|
(28.9)
|
|||
Total gross profit
|
$
|
652.0
|
|
|
$
|
726.2
|
|
|
$
|
(74.2
|
)
|
|
(10.2)
|
|
|
|
|
|
|
|
|
||||||
Gross margin - services
|
33.1
|
%
|
|
32.0
|
%
|
|
|
|
|
||||
Gross margin - products
|
18.6
|
%
|
|
20.6
|
%
|
|
|
|
|
|
|||
Total gross margin
|
26.9
|
%
|
|
26.6
|
%
|
|
|
|
|
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Selling and administrative expense
|
$
|
488.2
|
|
|
$
|
478.4
|
|
|
$
|
9.8
|
|
|
2.0
|
Research, development and engineering expense
|
86.9
|
|
|
93.6
|
|
|
(6.7
|
)
|
|
(7.2)
|
|||
Impairment of assets
|
18.9
|
|
|
2.1
|
|
|
16.8
|
|
|
N/M
|
|||
Gain on sale of assets, net
|
(0.6
|
)
|
|
(12.9
|
)
|
|
12.3
|
|
|
(95.3)
|
|||
Total operating expenses
|
$
|
593.4
|
|
|
$
|
561.2
|
|
|
$
|
32.2
|
|
|
5.7
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Operating profit
|
$
|
58.6
|
|
|
$
|
165.0
|
|
|
$
|
(106.4
|
)
|
|
(64.5)
|
Operating profit margin
|
2.4
|
%
|
|
6.0
|
%
|
|
|
|
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Investment income
|
$
|
26.0
|
|
|
$
|
34.5
|
|
|
$
|
(8.5
|
)
|
|
(24.6)
|
Interest expense
|
(32.5
|
)
|
|
(31.4
|
)
|
|
(1.1
|
)
|
|
3.5
|
|||
Foreign exchange loss, net
|
(10.0
|
)
|
|
(11.8
|
)
|
|
1.8
|
|
|
(15.3)
|
|||
Miscellaneous, net
|
3.7
|
|
|
(1.6
|
)
|
|
5.3
|
|
|
N/M
|
|||
Other (expense) income
|
$
|
(12.8
|
)
|
|
$
|
(10.3
|
)
|
|
$
|
(2.5
|
)
|
|
24.3
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Net income (loss)
|
$
|
59.5
|
|
|
$
|
107.3
|
|
|
$
|
(47.8
|
)
|
|
(44.5)
|
Percent of net sales
|
2.5
|
%
|
|
3.9
|
%
|
|
|
|
|
||||
Effective tax rate
|
(29.9
|
)%
|
|
30.6
|
%
|
|
|
|
|
|
North America:
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
$
|
1,094.5
|
|
|
$
|
1,091.4
|
|
|
$
|
3.1
|
|
|
0.3
|
Segment operating profit
|
$
|
250.1
|
|
|
$
|
266.3
|
|
|
$
|
(16.2
|
)
|
|
(6.1)
|
Segment operating profit margin
|
22.9
|
%
|
|
24.4
|
%
|
|
|
|
|
Asia Pacific:
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
$
|
439.6
|
|
|
$
|
500.3
|
|
|
$
|
(60.7
|
)
|
|
(12.1)
|
Segment operating profit
|
$
|
63.1
|
|
|
$
|
66.4
|
|
|
$
|
(3.3
|
)
|
|
(5.0)
|
Segment operating profit margin
|
14.4
|
%
|
|
13.3
|
%
|
|
|
|
|
Europe, Middle East and Africa:
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
$
|
393.1
|
|
|
$
|
421.2
|
|
|
$
|
(28.1
|
)
|
|
(6.7)
|
Segment operating profit
|
$
|
55.3
|
|
|
$
|
61.4
|
|
|
$
|
(6.1
|
)
|
|
(9.9)
|
Segment operating profit margin
|
14.1
|
%
|
|
14.6
|
%
|
|
|
|
|
Latin America:
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
$
|
492.1
|
|
|
$
|
721.9
|
|
|
$
|
(229.8
|
)
|
|
(31.8)
|
Segment operating profit
|
$
|
37.4
|
|
|
$
|
68.7
|
|
|
$
|
(31.3
|
)
|
|
(45.6)
|
Segment operating profit margin
|
7.6
|
%
|
|
9.5
|
%
|
|
|
|
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Total financial self-service
|
$
|
2,197.2
|
|
|
$
|
2,166.4
|
|
|
$
|
30.8
|
|
|
1.4
|
Total security
|
312.4
|
|
|
344.3
|
|
|
(31.9
|
)
|
|
(9.3)
|
|||
Brazil other
|
225.2
|
|
|
72.0
|
|
|
153.2
|
|
|
N/M
|
|||
Total net sales
|
$
|
2,734.8
|
|
|
$
|
2,582.7
|
|
|
$
|
152.1
|
|
|
5.9
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Gross profit - services
|
$
|
458.0
|
|
|
$
|
372.5
|
|
|
$
|
85.5
|
|
|
23.0
|
Gross profit - products
|
268.2
|
|
|
213.5
|
|
|
54.7
|
|
|
25.6
|
|||
Total gross profit
|
$
|
726.2
|
|
|
$
|
586.0
|
|
|
$
|
140.2
|
|
|
23.9
|
|
|
|
|
|
|
|
|
||||||
Gross margin - services
|
32.0
|
%
|
|
26.2
|
%
|
|
|
|
|
||||
Gross margin - products
|
20.6
|
%
|
|
18.4
|
%
|
|
|
|
|
||||
Total gross margin
|
26.6
|
%
|
|
22.7
|
%
|
|
|
|
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Selling and administrative expense
|
$
|
478.4
|
|
|
$
|
564.5
|
|
|
$
|
(86.1
|
)
|
|
(15.3)
|
Research, development and engineering expense
|
93.6
|
|
|
92.2
|
|
|
1.4
|
|
|
1.5
|
|||
Impairment of assets
|
2.1
|
|
|
72.0
|
|
|
(69.9
|
)
|
|
(97.1)
|
|||
Gain on sale of assets, net
|
(12.9
|
)
|
|
(2.4
|
)
|
|
(10.5
|
)
|
|
N/M
|
|||
Total operating expenses
|
$
|
561.2
|
|
|
$
|
726.3
|
|
|
$
|
(165.1
|
)
|
|
(22.7)
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Operating profit (loss)
|
$
|
165.0
|
|
|
$
|
(140.3
|
)
|
|
$
|
305.3
|
|
|
N/M
|
Operating profit (loss) margin
|
6.0
|
%
|
|
(5.4
|
)%
|
|
|
|
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Investment income
|
$
|
34.5
|
|
|
$
|
27.6
|
|
|
$
|
6.9
|
|
|
25.0
|
Interest expense
|
(31.4
|
)
|
|
(29.2
|
)
|
|
(2.2
|
)
|
|
7.5
|
|||
Foreign exchange (loss) gain, net
|
(11.8
|
)
|
|
0.2
|
|
|
(12.0
|
)
|
|
N/M
|
|||
Miscellaneous, net
|
(1.6
|
)
|
|
(0.1
|
)
|
|
(1.5
|
)
|
|
N/M
|
|||
Other (expense) income
|
$
|
(10.3
|
)
|
|
$
|
(1.5
|
)
|
|
$
|
(8.8
|
)
|
|
N/M
|
North America:
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
|
$
|
1,091.4
|
|
|
$
|
1,140.2
|
|
|
$
|
(48.8
|
)
|
|
(4.3)
|
Segment operating profit
|
|
$
|
266.3
|
|
|
$
|
232.4
|
|
|
$
|
33.9
|
|
|
14.6
|
Segment operating profit margin
|
|
24.4
|
%
|
|
20.4
|
%
|
|
|
|
|
Asia Pacific:
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
|
$
|
500.3
|
|
|
$
|
479.1
|
|
|
$
|
21.2
|
|
|
4.4
|
Segment operating profit
|
|
$
|
66.4
|
|
|
$
|
62.8
|
|
|
$
|
3.6
|
|
|
5.7
|
Segment operating profit margin
|
|
13.3
|
%
|
|
13.1
|
%
|
|
|
|
|
Europe, Middle East and Africa:
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
|
$
|
421.2
|
|
|
$
|
362.2
|
|
|
$
|
59.0
|
|
|
16.3
|
Segment operating profit
|
|
$
|
61.4
|
|
|
$
|
44.0
|
|
|
$
|
17.4
|
|
|
39.5
|
Segment operating profit margin
|
|
14.6
|
%
|
|
12.1
|
%
|
|
|
|
|
Latin America:
|
|
2014
|
|
2013
|
|
$ Change
|
|
% Change
|
||||||
Revenue
|
|
$
|
721.9
|
|
|
$
|
601.1
|
|
|
$
|
120.8
|
|
|
20.1
|
Segment operating profit
|
|
$
|
68.7
|
|
|
$
|
41.5
|
|
|
$
|
27.2
|
|
|
65.5
|
Segment operating profit margin
|
|
9.5
|
%
|
|
6.9
|
%
|
|
|
|
|
|
2015
|
|
2014
|
||||
Cash and cash equivalents
|
$
|
313.6
|
|
|
$
|
326.1
|
|
Additional cash availability from
|
|
|
|
||||
Short-term uncommitted lines of credit
|
69.0
|
|
|
115.2
|
|
||
Five-year credit facility
|
352.0
|
|
|
280.0
|
|
||
Short-term investments
|
39.9
|
|
|
136.7
|
|
||
Total global liquidity
|
$
|
774.5
|
|
|
$
|
858.0
|
|
Net cash flow provided by (used in)
|
2015
|
|
2014
|
|
2013
|
||||||
Operating activities - continuing operations
|
$
|
31.6
|
|
|
$
|
189.1
|
|
|
$
|
122.9
|
|
Investing activities - continuing operations
|
(62.4
|
)
|
|
15.1
|
|
|
(51.1
|
)
|
|||
Financing activities - continuing operations
|
42.2
|
|
|
(81.2
|
)
|
|
(204.5
|
)
|
|||
Discontinued operations, net
|
2.6
|
|
|
(3.5
|
)
|
|
(0.3
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(23.9
|
)
|
|
(28.2
|
)
|
|
(5.1
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
$
|
(9.9
|
)
|
|
$
|
91.3
|
|
|
$
|
(138.1
|
)
|
•
|
Cash flows from continuing operating activities during the year ended
December 31, 2015
compared to the year ended
December 31, 2014
were negatively impacted by a
$47.8
decrease in income from continuing operations, net of tax, primarily related to the aforementioned market-specific economic and political factors affecting the purchasing environment in Brazil, bad debt and inventory reserve increases related to the cancellation of certain projects in connection with the current Brazil economic and political environment,
$18.9
impairment of assets, the adverse impact of foreign currency compared to the same period of 2014, and the gain on sale of assets of $13.7 in the second quarter of 2014 which resulted from the Company's divestiture of its Eras subsidiary. The decrease in share-based compensation expense to
$12.4
in 2015 from
$21.5
in 2014 was primarily due to changes in the assumptions related to performance shares. The impairment of assets, primarily in the first quarter of 2015, related to the sale of the Company's equity interest in Venezuela as well as impairment of redundant legacy Diebold internally-developed software as a result of the acquisition of Phoenix.
|
•
|
Accounts receivable and inventory used an aggregate of $107.6 during the year ended
December 31, 2015
compared to the $81.0 during the year ended
December 31, 2014
. The $26.6 increase related to an increase in accounts receivable related to unbilled work which impacted the timing of cash collections and a build up in inventory related to securing multi-vendor services contracts in North America.
|
•
|
Deferred revenue used
$14.7
of operating cash during the year ended
December 31, 2015
, compared to
$50.7
provided in the year ended
December 31, 2014
. The decrease in cash flow associated with deferred revenue is due to a reduction of prepayments, primarily in China, received from customers on service contracts and product sales compared to the same period of 2014 and higher installations in 2015.
|
•
|
The aggregate of refundable and deferred income taxes used
$46.4
of operating cash during the year ended
December 31, 2015
, compared to
$1.7
used in 2014. This increase in cash used in operating activities is a result of the timing of cash payments for income taxes related to 2014 and the increase in deferred tax assets related to foreign tax credits and credits related to research and development activities primarily in the U.S.
|
|
|
|
Payment due by period
|
||||||||||||||||
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
Debt
|
$
|
645.1
|
|
|
$
|
207.0
|
|
|
$
|
51.6
|
|
|
$
|
386.5
|
|
|
$
|
—
|
|
Interest on debt
(1)
|
49.8
|
|
|
14.8
|
|
|
20.4
|
|
|
14.6
|
|
|
—
|
|
|||||
Minimum operating lease obligations
|
128.1
|
|
|
43.4
|
|
|
47.8
|
|
|
24.2
|
|
|
12.7
|
|
|||||
Purchase commitments
|
9.3
|
|
|
9.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deal related costs
|
29.0
|
|
|
29.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
861.3
|
|
|
$
|
303.5
|
|
|
$
|
119.8
|
|
|
$
|
425.3
|
|
|
$
|
12.7
|
|
(1)
|
Amounts represent estimated contractual interest payments on outstanding long-term debt and notes payable. Rates in effect as of
December 31, 2015
are used for variable rate debt.
|
|
2015
|
|
2014
|
||
Healthcare cost trend rate assumed for next year
|
7.0
|
%
|
|
7.5
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
5.0
|
%
|
|
5.0
|
%
|
Year that rate reaches ultimate trend rate
|
2020
|
|
|
2020
|
|
•
|
the Company’s ability to successfully consummate the Business Combination, including obtaining and consummating the necessary financing, hedging transactions and satisfying closing conditions;
|
•
|
the ultimate outcome and results of integrating the operations of the Company and Wincor Nixdorf, the ultimate outcome of the Company’s pricing and operating strategy applied to Wincor Nixdorf and the ultimate ability to realize synergies;
|
•
|
the effects of the Business Combination, including the Company’s future financial condition, operating results, strategy and plans;
|
•
|
the effects of governmental regulation on the Company’s businesses or potential business combination transactions;
|
•
|
the ability to obtain regulatory approvals and meet other conditions to the Business Combination on a timely basis;
|
•
|
the success of the Company’s strategic business alliance with Securitas AB;
|
•
|
the Company's ability to extract costs related to its electronic security business from its ongoing operations;
|
•
|
competitive pressures, including pricing pressures and technological developments;
|
•
|
changes in the Company’s relationships with customers, suppliers, distributors and/or partners in its business ventures;
|
•
|
changes in political, economic or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in the Company’s operations;
|
•
|
global economic conditions, including any additional deterioration and disruptions in the financial markets, including bankruptcies, restructurings or consolidations of financial institutions, which could reduce the Company’s customer base and/or adversely affect its customers’ ability to make capital expenditures, as well as adversely impact the availability and cost of credit;
|
•
|
acceptance of the Company’s product and technology introductions in the marketplace;
|
•
|
the Company’s ability to maintain effective internal controls;
|
•
|
changes in the Company’s intention to further repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions could negatively impact foreign and domestic taxes;
|
•
|
unanticipated litigation, claims or assessments, as well as the outcome/impact of any current/pending litigation, claims or assessments, including, but not limited to, the Company’s Brazil tax dispute;
|
•
|
variations in consumer demand for FSS technologies, products and services;
|
•
|
potential security violations to the Company’s information technology systems;
|
•
|
the investment performance of the Company’s pension plan assets, which could require the Company and to increase its pension contributions, and significant changes in healthcare costs, including those that may result from government action;
|
•
|
the amount and timing of repurchases of common shares, if any;
|
•
|
the Company's ability to achieve benefits from its cost-reduction initiatives and other strategic changes, including its multi-year realignment plan and other restructuring actions, as well as its business process outsourcing initiative; and
|
•
|
the risk factors described above under "Part I - Item 1A - Risk Factors” of this Form 10-K.
|
FINANCIAL STATEMENTS
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
313.6
|
|
|
$
|
326.1
|
|
Short-term investments
|
39.9
|
|
|
136.7
|
|
||
Trade receivables, less allowances for doubtful accounts of $31.7 and $20.9, respectively
|
413.9
|
|
|
403.3
|
|
||
Inventories
|
369.3
|
|
|
374.7
|
|
||
Deferred income taxes
|
168.8
|
|
|
111.0
|
|
||
Prepaid expenses
|
23.6
|
|
|
21.2
|
|
||
Refundable income taxes
|
18.0
|
|
|
11.7
|
|
||
Current assets held for sale
|
148.2
|
|
|
106.2
|
|
||
Other current assets
|
148.3
|
|
|
164.6
|
|
||
Total current assets
|
1,643.6
|
|
|
1,655.5
|
|
||
Securities and other investments
|
85.2
|
|
|
83.6
|
|
||
Property, plant and equipment, net
|
175.3
|
|
|
165.7
|
|
||
Goodwill
|
161.5
|
|
|
138.1
|
|
||
Deferred income taxes
|
65.3
|
|
|
86.5
|
|
||
Finance lease receivables
|
36.5
|
|
|
90.4
|
|
||
Other assets
|
81.9
|
|
|
122.3
|
|
||
Total assets
|
$
|
2,249.3
|
|
|
$
|
2,342.1
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Notes payable
|
$
|
32.0
|
|
|
$
|
25.6
|
|
Accounts payable
|
281.7
|
|
|
248.6
|
|
||
Deferred revenue
|
229.2
|
|
|
260.8
|
|
||
Payroll and other benefits liabilities
|
76.5
|
|
|
109.4
|
|
||
Current liabilities held for sale
|
49.4
|
|
|
39.1
|
|
||
Other current liabilities
|
287.0
|
|
|
344.3
|
|
||
Total current liabilities
|
955.8
|
|
|
1,027.8
|
|
||
Long-term debt
|
613.1
|
|
|
479.8
|
|
||
Pensions and other benefits
|
195.6
|
|
|
211.0
|
|
||
Post-retirement and other benefits
|
18.7
|
|
|
20.8
|
|
||
Deferred income taxes
|
1.9
|
|
|
6.5
|
|
||
Other liabilities
|
28.7
|
|
|
41.4
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Equity
|
|
|
|
||||
Diebold, Incorporated shareholders' equity
|
|
|
|
||||
Preferred shares, no par value, 1,000,000 authorized shares, none issued
|
—
|
|
|
—
|
|
||
Common shares, $1.25 par value, 125,000,000 authorized shares, 79,696,694 and 79,238,759 issued shares, 65,001,602 and 64,632,400 outstanding shares, respectively
|
99.6
|
|
|
99.0
|
|
||
Additional capital
|
430.8
|
|
|
418.0
|
|
||
Retained earnings
|
760.3
|
|
|
762.2
|
|
||
Treasury shares, at cost (14,695,092 and 14,606,359 shares, respectively)
|
(560.2
|
)
|
|
(557.2
|
)
|
||
Accumulated other comprehensive loss
|
(318.1
|
)
|
|
(190.5
|
)
|
||
Total Diebold, Incorporated shareholders' equity
|
412.4
|
|
|
531.5
|
|
||
Noncontrolling interests
|
23.1
|
|
|
23.3
|
|
||
Total equity
|
435.5
|
|
|
554.8
|
|
||
Total liabilities and equity
|
$
|
2,249.3
|
|
|
$
|
2,342.1
|
|
|
Year ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Net sales
|
|
|
|
|
|
||||||
Services
|
$
|
1,394.2
|
|
|
$
|
1,432.8
|
|
|
$
|
1,420.8
|
|
Products
|
1,025.1
|
|
|
1,302.0
|
|
|
1,161.9
|
|
|||
|
2,419.3
|
|
|
2,734.8
|
|
|
2,582.7
|
|
|||
Cost of sales
|
|
|
|
|
|
||||||
Services
|
932.8
|
|
|
974.8
|
|
|
1,048.3
|
|
|||
Products
|
834.5
|
|
|
1,033.8
|
|
|
948.4
|
|
|||
|
1,767.3
|
|
|
2,008.6
|
|
|
1,996.7
|
|
|||
Gross profit
|
652.0
|
|
|
726.2
|
|
|
586.0
|
|
|||
Selling and administrative expense
|
488.2
|
|
|
478.4
|
|
|
564.5
|
|
|||
Research, development and engineering expense
|
86.9
|
|
|
93.6
|
|
|
92.2
|
|
|||
Impairment of assets
|
18.9
|
|
|
2.1
|
|
|
72.0
|
|
|||
Gain on sale of assets, net
|
(0.6
|
)
|
|
(12.9
|
)
|
|
(2.4
|
)
|
|||
|
593.4
|
|
|
561.2
|
|
|
726.3
|
|
|||
Operating profit (loss)
|
58.6
|
|
|
165.0
|
|
|
(140.3
|
)
|
|||
Other income (expense)
|
|
|
|
|
|
||||||
Investment income
|
26.0
|
|
|
34.5
|
|
|
27.6
|
|
|||
Interest expense
|
(32.5
|
)
|
|
(31.4
|
)
|
|
(29.2
|
)
|
|||
Foreign exchange (loss) gain, net
|
(10.0
|
)
|
|
(11.8
|
)
|
|
0.2
|
|
|||
Miscellaneous, net
|
3.7
|
|
|
(1.6
|
)
|
|
(0.1
|
)
|
|||
Income (loss) from continuing operations before taxes
|
45.8
|
|
|
154.7
|
|
|
(141.8
|
)
|
|||
Income tax (benefit) expense
|
(13.7
|
)
|
|
47.4
|
|
|
48.4
|
|
|||
Income (loss) from continuing operations, net of tax
|
59.5
|
|
|
107.3
|
|
|
(190.2
|
)
|
|||
Income from discontinued operations, net of tax
|
15.9
|
|
|
9.7
|
|
|
13.7
|
|
|||
Net income (loss)
|
75.4
|
|
|
117.0
|
|
|
(176.5
|
)
|
|||
Income attributable to noncontrolling interests, net of tax
|
1.7
|
|
|
2.6
|
|
|
5.1
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
73.7
|
|
|
$
|
114.4
|
|
|
$
|
(181.6
|
)
|
|
|
|
|
|
|
||||||
Basic weighted-average shares outstanding
|
64.9
|
|
|
64.5
|
|
|
63.7
|
|
|||
Diluted weighted-average shares outstanding
|
65.6
|
|
|
65.2
|
|
|
63.7
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings (loss) per share
|
|
|
|
|
|
||||||
Income (loss) before discontinued operations, net of tax
|
$
|
0.89
|
|
|
$
|
1.62
|
|
|
$
|
(3.06
|
)
|
Income from discontinued operations, net of tax
|
0.24
|
|
|
0.15
|
|
|
0.21
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
1.13
|
|
|
$
|
1.77
|
|
|
$
|
(2.85
|
)
|
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share
|
|
|
|
|
|
||||||
Income (loss) before discontinued operations, net of tax
|
$
|
0.88
|
|
|
$
|
1.61
|
|
|
$
|
(3.06
|
)
|
Income from discontinued operations, net of tax
|
0.24
|
|
|
0.15
|
|
|
0.21
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
1.12
|
|
|
$
|
1.76
|
|
|
$
|
(2.85
|
)
|
|
|
|
|
|
|
||||||
Amounts attributable to Diebold, Incorporated
|
|
|
|
|
|
||||||
Income (loss) before discontinued operations, net of tax
|
$
|
57.8
|
|
|
$
|
104.7
|
|
|
$
|
(195.3
|
)
|
Income from discontinued operations, net of tax
|
15.9
|
|
|
9.7
|
|
|
13.7
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
73.7
|
|
|
$
|
114.4
|
|
|
$
|
(181.6
|
)
|
|
|
|
|
|
|
||||||
Cash dividends declared and paid per share
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
$
|
1.15
|
|
|
Year ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Net income (loss)
|
$
|
75.4
|
|
|
$
|
117.0
|
|
|
$
|
(176.5
|
)
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
||||||
Translation adjustment (net of tax of $5.3, $3.6, and $2.1, respectively)
|
(141.3
|
)
|
|
(73.7
|
)
|
|
(70.3
|
)
|
|||
Foreign currency hedges (net of tax of $(4.0), $(0.3), and $(1.7), respectively)
|
6.4
|
|
|
0.5
|
|
|
2.9
|
|
|||
Interest rate hedges:
|
|
|
|
|
|
||||||
Net income recognized in other comprehensive income (net of tax of $(0.3), $(0.4), and $(0.5), respectively)
|
0.8
|
|
|
0.7
|
|
|
0.7
|
|
|||
Less: reclassification adjustments for amounts recognized in net income (net of tax of $(0.2), $(0.1), and $(0.1), respectively)
|
0.4
|
|
|
0.2
|
|
|
0.2
|
|
|||
|
0.4
|
|
|
0.5
|
|
|
0.5
|
|
|||
Pension and other post-retirement benefits:
|
|
|
|
|
|
||||||
Prior service credit recognized during the year (net of tax of $0.1, $0.1, and $0.3, respectively)
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.5
|
)
|
|||
Net actuarial losses recognized during the year (net of tax of $(2.7), $(1.2), and $(5.8), respectively)
|
4.2
|
|
|
2.0
|
|
|
9.1
|
|
|||
Net actuarial gain (loss) occurring during the year (net of tax of $(1.3), $39.3, and $(28.3), respectively)
|
2.1
|
|
|
(63.7
|
)
|
|
44.8
|
|
|||
Prior service cost recognized due to curtailment (net of tax of $0.0, $0.0, and $(0.8), respectively
|
—
|
|
|
—
|
|
|
1.3
|
|
|||
Net actuarial losses recognized due to curtailment (net of tax of $0.0, $0.0, and $(21.1), respectively)
|
—
|
|
|
—
|
|
|
33.4
|
|
|||
Settlements (net of tax of $0.0, $0.0, and $(7.8), respectively)
|
—
|
|
|
—
|
|
|
12.3
|
|
|||
|
6.2
|
|
|
(62.0
|
)
|
|
100.4
|
|
|||
Unrealized (loss) gain on securities, net:
|
|
|
|
|
|
||||||
Net (loss) gain recognized in other comprehensive income (net of tax of $0.0, $0.0 and $(0.1), respectively)
|
—
|
|
|
(0.5
|
)
|
|
3.9
|
|
|||
Less: reclassification adjustments for amounts recognized in net income (net of tax)
|
—
|
|
|
2.2
|
|
|
1.3
|
|
|||
|
—
|
|
|
(2.7
|
)
|
|
2.6
|
|
|||
Other
|
0.1
|
|
|
—
|
|
|
1.2
|
|
|||
Other comprehensive (loss) income, net of tax
|
(128.2
|
)
|
|
(137.4
|
)
|
|
37.3
|
|
|||
Comprehensive loss
|
(52.8
|
)
|
|
(20.4
|
)
|
|
(139.2
|
)
|
|||
Less: comprehensive income attributable to noncontrolling interests
|
3.2
|
|
|
1.4
|
|
|
5.7
|
|
|||
Comprehensive loss attributable to Diebold, Incorporated
|
$
|
(56.0
|
)
|
|
$
|
(21.8
|
)
|
|
$
|
(144.9
|
)
|
|
Common Shares
|
|
|
|
|
|
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Total Diebold, Incorporated Shareholders' Equity
|
|
|
|
|
|||||||||||||||||||
|
Number
|
|
$1.25 Par Value
|
|
Additional
Capital
|
|
Retained
Earnings
|
|
Treasury
Shares
|
|
|
|
Non-controlling
Interests
|
|
Total
Equity
|
|||||||||||||||||||
Balance, January 1, 2013
|
77.7
|
|
|
$
|
97.1
|
|
|
$
|
358.3
|
|
|
$
|
978.3
|
|
|
$
|
(551.2
|
)
|
|
$
|
(91.0
|
)
|
|
$
|
791.5
|
|
|
$
|
35.3
|
|
|
$
|
826.8
|
|
Net (loss) income
|
|
|
|
|
|
|
(181.6
|
)
|
|
|
|
|
|
(181.6
|
)
|
|
5.1
|
|
|
(176.5
|
)
|
|||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
36.7
|
|
|
36.7
|
|
|
0.6
|
|
|
37.3
|
|
|||||||||||||
Stock options exercised
|
0.5
|
|
|
0.7
|
|
|
16.0
|
|
|
|
|
|
|
|
|
16.7
|
|
|
|
|
16.7
|
|
||||||||||||
Restricted stock units issued
|
0.3
|
|
|
0.4
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
Other share-based compensation
|
0.1
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
Income tax detriment from share-based compensation
|
|
|
|
|
(3.9
|
)
|
|
|
|
|
|
|
|
(3.9
|
)
|
|
|
|
(3.9
|
)
|
||||||||||||||
Share-based compensation expense
|
|
|
|
|
15.4
|
|
|
|
|
|
|
|
|
15.4
|
|
|
|
|
15.4
|
|
||||||||||||||
Dividends paid
|
|
|
|
|
|
|
(74.0
|
)
|
|
|
|
|
|
(74.0
|
)
|
|
|
|
(74.0
|
)
|
||||||||||||||
Treasury shares (0.1 shares)
|
|
|
|
|
|
|
|
|
(4.1
|
)
|
|
|
|
(4.1
|
)
|
|
|
|
(4.1
|
)
|
||||||||||||||
Distributions to noncontrolling interest holders, net
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(16.9
|
)
|
|
(16.9
|
)
|
||||||||||||||
Balance, December 31, 2013
|
78.6
|
|
|
$
|
98.3
|
|
|
$
|
385.3
|
|
|
$
|
722.7
|
|
|
$
|
(555.3
|
)
|
|
$
|
(54.3
|
)
|
|
$
|
596.7
|
|
|
$
|
24.1
|
|
|
$
|
620.8
|
|
Net income
|
|
|
|
|
|
|
114.4
|
|
|
|
|
|
|
114.4
|
|
|
2.6
|
|
|
117.0
|
|
|||||||||||||
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
(136.2
|
)
|
|
(136.2
|
)
|
|
(1.2
|
)
|
|
(137.4
|
)
|
|||||||||||||
Stock options exercised
|
0.4
|
|
|
0.5
|
|
|
14.1
|
|
|
|
|
|
|
|
|
14.6
|
|
|
|
|
14.6
|
|
||||||||||||
Restricted stock units issued
|
0.2
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
Income tax detriment from share-based compensation
|
|
|
|
|
(2.7
|
)
|
|
|
|
|
|
|
|
(2.7
|
)
|
|
|
|
(2.7
|
)
|
||||||||||||||
Share-based compensation expense
|
|
|
|
|
21.5
|
|
|
|
|
|
|
|
|
21.5
|
|
|
|
|
21.5
|
|
||||||||||||||
Dividends paid
|
|
|
|
|
|
|
(74.9
|
)
|
|
|
|
|
|
(74.9
|
)
|
|
|
|
(74.9
|
)
|
||||||||||||||
Treasury shares (0.2 shares)
|
|
|
|
|
|
|
|
|
(1.9
|
)
|
|
|
|
(1.9
|
)
|
|
|
|
(1.9
|
)
|
||||||||||||||
Distributions to noncontrolling interest holders, net
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(2.2
|
)
|
|
(2.2
|
)
|
||||||||||||||
Balance, December 31, 2014
|
79.2
|
|
|
$
|
99.0
|
|
|
$
|
418.0
|
|
|
$
|
762.2
|
|
|
$
|
(557.2
|
)
|
|
$
|
(190.5
|
)
|
|
$
|
531.5
|
|
|
$
|
23.3
|
|
|
$
|
554.8
|
|
Net income
|
|
|
|
|
|
|
73.7
|
|
|
|
|
|
|
73.7
|
|
|
1.7
|
|
|
75.4
|
|
|||||||||||||
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
(127.6
|
)
|
|
(127.6
|
)
|
|
1.5
|
|
|
(126.1
|
)
|
|||||||||||||
Stock options exercised
|
0.1
|
|
|
0.2
|
|
|
3.3
|
|
|
|
|
|
|
|
|
3.5
|
|
|
|
|
3.5
|
|
||||||||||||
Restricted stock units issued
|
0.2
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
Other share-based compensation
|
0.2
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||||||||||
Income tax detriment from share-based compensation
|
|
|
|
|
(2.5
|
)
|
|
|
|
|
|
|
|
(2.5
|
)
|
|
|
|
(2.5
|
)
|
||||||||||||||
Share-based compensation expense
|
|
|
|
|
12.4
|
|
|
|
|
|
|
|
|
12.4
|
|
|
|
|
12.4
|
|
||||||||||||||
Dividends paid
|
|
|
|
|
|
|
(75.6
|
)
|
|
|
|
|
|
(75.6
|
)
|
|
|
|
(75.6
|
)
|
||||||||||||||
Treasury shares (0.1 shares)
|
|
|
|
|
|
|
|
|
(3.0
|
)
|
|
|
|
(3.0
|
)
|
|
|
|
(3.0
|
)
|
||||||||||||||
Distributions to noncontrolling interest holders, net
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(3.4
|
)
|
|
(3.4
|
)
|
||||||||||||||
Balance, December 31, 2015
|
79.7
|
|
|
$
|
99.6
|
|
|
$
|
430.8
|
|
|
$
|
760.3
|
|
|
$
|
(560.2
|
)
|
|
$
|
(318.1
|
)
|
|
$
|
412.4
|
|
|
$
|
23.1
|
|
|
$
|
435.5
|
|
|
Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Cash flow from operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
75.4
|
|
|
$
|
117.0
|
|
|
$
|
(176.5
|
)
|
Income from discontinued operations, net of tax
|
15.9
|
|
|
9.7
|
|
|
13.7
|
|
|||
Income (loss) from continuing operations, net of tax
|
59.5
|
|
|
107.3
|
|
|
(190.2
|
)
|
|||
Adjustments to reconcile net income (loss) to cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
64.0
|
|
|
73.4
|
|
|
82.4
|
|
|||
Share-based compensation expense
|
12.4
|
|
|
21.5
|
|
|
15.4
|
|
|||
Excess tax benefits from share-based compensation
|
(0.5
|
)
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||
Impairment of assets
|
18.9
|
|
|
2.1
|
|
|
72.0
|
|
|||
Pension curtailment, settlement and special termination
|
—
|
|
|
—
|
|
|
69.6
|
|
|||
Devaluation of Venezuelan balance sheet
|
7.5
|
|
|
12.1
|
|
|
1.6
|
|
|||
Gain on sale of assets, net
|
(0.6
|
)
|
|
(12.9
|
)
|
|
(2.4
|
)
|
|||
Gain on foreign currency option contracts
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|||
Cash flow from changes in certain assets and liabilities, net of the effects of acquisitions
|
|
|
|
|
|
||||||
Trade receivables
|
(56.4
|
)
|
|
(38.2
|
)
|
|
35.5
|
|
|||
Inventories
|
(51.2
|
)
|
|
(42.8
|
)
|
|
21.3
|
|
|||
Prepaid expenses
|
(3.1
|
)
|
|
(2.6
|
)
|
|
13.5
|
|
|||
Refundable income taxes
|
(6.3
|
)
|
|
9.6
|
|
|
(4.9
|
)
|
|||
Other current assets
|
9.6
|
|
|
(40.1
|
)
|
|
(10.3
|
)
|
|||
Accounts payable
|
57.6
|
|
|
55.2
|
|
|
(10.5
|
)
|
|||
Deferred revenue
|
(14.7
|
)
|
|
50.7
|
|
|
16.6
|
|
|||
Accrued salaries, wages and commissions
|
(22.1
|
)
|
|
23.4
|
|
|
20.2
|
|
|||
Deferred income taxes
|
(40.1
|
)
|
|
(11.3
|
)
|
|
(15.1
|
)
|
|||
Finance lease receivables
|
30.8
|
|
|
(61.6
|
)
|
|
(32.6
|
)
|
|||
Certain other assets and liabilities
|
(26.7
|
)
|
|
43.8
|
|
|
41.3
|
|
|||
Net cash provided by operating activities - continuing operations
|
31.6
|
|
|
189.1
|
|
|
122.9
|
|
|||
Net cash provided by (used in) operating activities - discontinued operations
|
5.1
|
|
|
(2.2
|
)
|
|
1.3
|
|
|||
Net cash provided by operating activities
|
36.7
|
|
|
186.9
|
|
|
124.2
|
|
|||
|
|
|
|
|
|
||||||
Cash flow from investing activities
|
|
|
|
|
|
||||||
Payments for acquisitions, net of cash acquired
|
(59.4
|
)
|
|
(11.7
|
)
|
|
—
|
|
|||
Proceeds from maturities of investments
|
176.1
|
|
|
477.4
|
|
|
464.3
|
|
|||
Proceeds from sale of investments
|
—
|
|
|
39.6
|
|
|
56.0
|
|
|||
Payments for purchases of investments
|
(125.5
|
)
|
|
(428.7
|
)
|
|
(537.7
|
)
|
|||
Proceeds from sale of assets
|
5.0
|
|
|
18.4
|
|
|
7.5
|
|
|||
Capital expenditures
|
(52.3
|
)
|
|
(60.1
|
)
|
|
(33.8
|
)
|
|||
Increase in certain other assets
|
(6.3
|
)
|
|
(19.8
|
)
|
|
(13.7
|
)
|
|||
Purchase of finance receivables, net of cash collections
|
—
|
|
|
—
|
|
|
6.3
|
|
|||
Net cash (used in) provided by investing activities - continuing operations
|
(62.4
|
)
|
|
15.1
|
|
|
(51.1
|
)
|
|||
Net cash used in investing activities - discontinued operations
|
(2.5
|
)
|
|
(1.3
|
)
|
|
(1.6
|
)
|
|||
Net cash (used in) provided by investing activities
|
$
|
(64.9
|
)
|
|
$
|
13.8
|
|
|
$
|
(52.7
|
)
|
|
Year Ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Cash flow from financing activities
|
|
|
|
|
|
||||||
Dividends paid
|
$
|
(75.6
|
)
|
|
$
|
(74.9
|
)
|
|
$
|
(74.0
|
)
|
Debt issuance costs
|
(6.0
|
)
|
|
(1.4
|
)
|
|
—
|
|
|||
Revolving debt borrowings (repayments), net
|
155.8
|
|
|
2.0
|
|
|
(56.0
|
)
|
|||
Other debt borrowings
|
135.8
|
|
|
157.6
|
|
|
51.2
|
|
|||
Other debt repayments
|
(168.7
|
)
|
|
(175.5
|
)
|
|
(121.9
|
)
|
|||
Distributions to noncontrolling interest holders
|
(0.1
|
)
|
|
(2.2
|
)
|
|
(16.9
|
)
|
|||
Excess tax benefits from share-based compensation
|
0.5
|
|
|
0.5
|
|
|
0.5
|
|
|||
Issuance of common shares
|
3.5
|
|
|
14.6
|
|
|
16.7
|
|
|||
Repurchase of common shares
|
(3.0
|
)
|
|
(1.9
|
)
|
|
(4.1
|
)
|
|||
Net cash provided by (used in) financing activities - continuing operations
|
42.2
|
|
|
(81.2
|
)
|
|
(204.5
|
)
|
|||
Net cash provided by (used in) financing activities - discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
42.2
|
|
|
(81.2
|
)
|
|
(204.5
|
)
|
|||
Effect of exchange rate changes on cash
|
(23.9
|
)
|
|
(28.2
|
)
|
|
(5.1
|
)
|
|||
(Decrease) increase in cash and cash equivalents
|
(9.9
|
)
|
|
91.3
|
|
|
(138.1
|
)
|
|||
Add: Cash overdraft included in assets held for sale at beginning of year
|
(4.1
|
)
|
|
(0.6
|
)
|
|
(0.2
|
)
|
|||
Less: Cash overdraft included in assets held for sale at end of year
|
(1.5
|
)
|
|
(4.1
|
)
|
|
(0.6
|
)
|
|||
Cash and cash equivalents at the beginning of the year
|
326.1
|
|
|
231.3
|
|
|
369.0
|
|
|||
Cash and cash equivalents at the end of the year
|
$
|
313.6
|
|
|
$
|
326.1
|
|
|
$
|
231.3
|
|
Cash paid for
|
|
|
|
|
|
||||||
Income taxes
|
$
|
64.8
|
|
|
$
|
49.2
|
|
|
$
|
76.5
|
|
Interest
|
$
|
32.6
|
|
|
$
|
31.2
|
|
|
$
|
29.5
|
|
Valuation technique
|
|
Description
|
Market approach
|
|
Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
|
Cost approach
|
|
Amount that would be required to replace the service capacity of an asset (replacement cost).
|
Income approach
|
|
Techniques to convert future amounts to a single present amount based upon market expectations.
|
Fair value level
|
|
Description
|
Level 1
|
|
Unadjusted quoted prices in active markets for identical assets or liabilities.
|
Level 2
|
|
Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
|
Level 3
|
|
Unobservable inputs for which there is little or no market data.
|
|
2015
|
|
2014
|
|
2013
|
||||||
Numerator
|
|
|
|
|
|
||||||
Income (loss) used in basic and diluted earnings (loss) per share
|
|
|
|
|
|
||||||
Income (loss) from continuing operations, net of tax
|
$
|
59.5
|
|
|
$
|
107.3
|
|
|
$
|
(190.2
|
)
|
Income attributable to noncontrolling interests, net of tax
|
1.7
|
|
|
2.6
|
|
|
5.1
|
|
|||
Income (loss) before discontinued operations, net of tax
|
57.8
|
|
|
104.7
|
|
|
(195.3
|
)
|
|||
Income from discontinued operations, net of tax
|
15.9
|
|
|
9.7
|
|
|
13.7
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
73.7
|
|
|
$
|
114.4
|
|
|
$
|
(181.6
|
)
|
Denominator
|
|
|
|
|
|
||||||
Weighted-average number of common shares used in basic earnings (loss) per share
|
64.9
|
|
|
64.5
|
|
|
63.7
|
|
|||
Effect of dilutive shares
(1)
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|||
Weighted-average number of shares used in diluted earnings (loss) per share
|
65.6
|
|
|
65.2
|
|
|
63.7
|
|
|||
Basic earnings (loss) per share
|
|
|
|
|
|
||||||
Income (loss) before discontinued operations, net of tax
|
$
|
0.89
|
|
|
$
|
1.62
|
|
|
$
|
(3.06
|
)
|
Income from discontinued operations, net of tax
|
0.24
|
|
|
0.15
|
|
|
0.21
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
1.13
|
|
|
$
|
1.77
|
|
|
$
|
(2.85
|
)
|
Diluted earnings (loss) per share
|
|
|
|
|
|
||||||
Income (loss) before discontinued operations, net of tax
|
$
|
0.88
|
|
|
$
|
1.61
|
|
|
$
|
(3.06
|
)
|
Income from discontinued operations, net of tax
|
0.24
|
|
|
0.15
|
|
|
0.21
|
|
|||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
1.12
|
|
|
$
|
1.76
|
|
|
$
|
(2.85
|
)
|
|
|
|
|
|
|
||||||
Anti-dilutive shares
|
|
|
|
|
|
||||||
Anti-dilutive shares not used in calculating diluted weighted-average shares
|
1.5
|
|
|
1.1
|
|
|
2.6
|
|
(1)
|
Incremental shares of
0.5
were excluded from the computation of diluted loss per share for the year ended December 31, 2013 because their effect is anti-dilutive due to the loss from continuing operations.
|
|
Translation
|
|
Foreign Currency Hedges
|
|
Interest Rate Hedges
|
|
Pension and Other Post-Retirement Benefits
|
|
Unrealized Gain on Securities, Net
|
|
Other
|
|
Accumulated Other Comprehensive Loss
|
||||||||||||||
Balance at December 31, 2013
|
$
|
(2.4
|
)
|
|
$
|
(1.9
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
(52.0
|
)
|
|
$
|
2.7
|
|
|
$
|
0.3
|
|
|
$
|
(54.3
|
)
|
Other comprehensive (loss) income before reclassifications
(1)
|
(72.5
|
)
|
|
0.5
|
|
|
0.7
|
|
|
(63.7
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
(135.5
|
)
|
|||||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
1.7
|
|
|
(2.2
|
)
|
|
—
|
|
|
(0.7
|
)
|
|||||||
Net current period other comprehensive (loss) income
|
(72.5
|
)
|
|
0.5
|
|
|
0.5
|
|
|
(62.0
|
)
|
|
(2.7
|
)
|
|
—
|
|
|
(136.2
|
)
|
|||||||
Balance at December 31, 2014
|
$
|
(74.9
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(114.0
|
)
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
(190.5
|
)
|
Other comprehensive (loss) income before reclassifications
(1)
|
(140.7
|
)
|
|
6.4
|
|
|
0.8
|
|
|
2.1
|
|
|
—
|
|
|
0.1
|
|
|
(131.3
|
)
|
|||||||
Amounts reclassified from AOCI
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|||||||
Net current period other comprehensive (loss) income
|
(140.7
|
)
|
|
6.4
|
|
|
0.4
|
|
|
6.2
|
|
|
—
|
|
|
0.1
|
|
|
(127.6
|
)
|
|||||||
Balance at December 31, 2015
|
$
|
(215.6
|
)
|
|
$
|
5.0
|
|
|
$
|
(0.1
|
)
|
|
$
|
(107.8
|
)
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
(318.1
|
)
|
(1)
|
Other comprehensive (loss) income before reclassifications within the translation component excludes losses of
$0.6
and
$1.2
and translation attributable to noncontrolling interests for December 31, 2015 and 2014, respectively.
|
|
2015
|
|
2014
|
|
|
||||
|
Amount Reclassified from AOCI
|
|
Amount Reclassified from AOCI
|
|
Affected Line Item in the Statement of Operations
|
||||
Interest rate hedges (net of tax of $0.2 and $0.1, respectively)
|
$
|
(0.4
|
)
|
|
$
|
(0.2
|
)
|
|
Interest expense
|
Pension and post-retirement benefits:
|
|
|
|
|
|
||||
Net prior service benefit amortization (net of tax of $0.1 and $0.1, respectively)
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(1)
|
||
Net actuarial losses recognized during the year (net of tax of $(2.7) and $(1.2), respectively)
|
4.2
|
|
|
2.0
|
|
|
(1)
|
||
|
4.1
|
|
|
1.7
|
|
|
|
||
Unrealized loss on securities (net of tax of $(0.0) and $(0.0), respectively)
|
—
|
|
|
(2.2
|
)
|
|
Investment income
|
||
Total reclassifications for the period
|
$
|
3.7
|
|
|
$
|
(0.7
|
)
|
|
|
(1)
|
Pension and other post-retirement benefits AOCI components are included in the computation of net periodic benefit cost (refer to note 13 to the consolidated financial statements).
|
|
2015
|
|
2014
|
|
2013
|
||||||
Stock options
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
3.6
|
|
|
$
|
2.7
|
|
|
$
|
6.0
|
|
Tax benefit
|
(1.3
|
)
|
|
(1.0
|
)
|
|
(2.2
|
)
|
|||
Stock option expense, net of tax
|
$
|
2.3
|
|
|
$
|
1.7
|
|
|
$
|
3.8
|
|
|
|
|
|
|
|
||||||
Restricted stock units
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
8.6
|
|
|
$
|
6.0
|
|
|
$
|
5.6
|
|
Tax benefit
|
(2.4
|
)
|
|
(1.9
|
)
|
|
(1.7
|
)
|
|||
RSU expense, net of tax
|
$
|
6.2
|
|
|
$
|
4.1
|
|
|
$
|
3.9
|
|
|
|
|
|
|
|
||||||
Performance shares
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
0.2
|
|
|
$
|
12.5
|
|
|
$
|
2.2
|
|
Tax benefit
|
(0.1
|
)
|
|
(4.2
|
)
|
|
(0.8
|
)
|
|||
Performance share expense, net of tax
|
$
|
0.1
|
|
|
$
|
8.3
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
||||||
Director deferred shares
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
1.1
|
|
Tax benefit
|
—
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|||
Director deferred share expense, net of tax
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
0.7
|
|
|
|
|
|
|
|
||||||
Total share-based compensation
|
|
|
|
|
|
||||||
Pre-tax compensation expense
|
$
|
12.4
|
|
|
$
|
21.5
|
|
|
$
|
14.9
|
|
Tax benefit
|
(3.8
|
)
|
|
(7.2
|
)
|
|
(5.1
|
)
|
|||
Total share-based compensation, net of tax
|
$
|
8.6
|
|
|
$
|
14.3
|
|
|
$
|
9.8
|
|
|
Unrecognized
Cost |
|
Weighted-Average Period
|
||
|
|
|
(years)
|
||
Stock options
|
$
|
2.9
|
|
|
1.3
|
RSUs
|
12.1
|
|
|
1.8
|
|
Performance shares
|
4.9
|
|
|
1.7
|
|
|
$
|
19.9
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
|||
Expected life (in years)
|
6
|
|
|
5
|
|
|
6
|
|
Weighted-average volatility
|
31
|
%
|
|
31
|
%
|
|
38
|
%
|
Risk-free interest rate
|
1.50
|
%
|
|
1.47-1.66%
|
|
|
1.08-1.27%
|
|
Expected dividend yield
|
3.12
|
%
|
|
3.59
|
%
|
|
3.23-3.59%
|
|
|
Number of Shares
|
|
Weighted-Average Exercise Price
|
|
Weighted-Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value
(1)
|
|||||
|
|
|
(per share)
|
|
(in years)
|
|
|
|||||
Outstanding at January 1, 2015
|
1.6
|
|
|
$
|
37.11
|
|
|
|
|
|
||
Expired or forfeited
|
(0.3
|
)
|
|
$
|
48.64
|
|
|
|
|
|
||
Exercised
|
(0.1
|
)
|
|
$
|
29.55
|
|
|
|
|
|
||
Granted
|
0.5
|
|
|
$
|
32.33
|
|
|
|
|
|
||
Outstanding at December 31, 2015
|
1.7
|
|
|
$
|
34.21
|
|
|
7
|
|
$
|
0.2
|
|
Options exercisable at December 31, 2015
|
0.9
|
|
|
$
|
35.47
|
|
|
5
|
|
$
|
0.2
|
|
Options vested and expected to vest
(2)
at December 31, 2015
|
1.6
|
|
|
$
|
34.25
|
|
|
7
|
|
$
|
0.2
|
|
(1)
|
The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company’s closing share price on the last trading day of the year in
2015
and the exercise price, multiplied by the number of “in-the-money” options) that would have been received by the option holders had all option holders exercised their options on
December 31, 2015
. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s common shares.
|
(2)
|
The expected to vest options are the result of applying the pre-vesting forfeiture rate assumption to total outstanding non-vested options.
|
|
Number of
Shares |
|
Weighted-Average
Grant-Date Fair Value |
|||
Non-vested at January 1, 2015
|
0.7
|
|
|
$
|
33.72
|
|
Forfeited
|
(0.1
|
)
|
|
$
|
33.64
|
|
Vested
|
(0.2
|
)
|
|
$
|
36.03
|
|
Granted
(1)
|
0.5
|
|
|
$
|
32.74
|
|
Non-vested at December 31, 2015
|
0.9
|
|
|
$
|
32.53
|
|
(1)
|
The RSUs granted during the year ended
December 31, 2015
include
33 thousand
1
-year RSUs to non-employee directors under the 1991 Plan. These RSUs have a weighted-average grant-date fair value between
$33.85
and
$35.92
.
|
|
Number of
Shares |
|
Weighted-Average
Grant-Date Fair Value |
|||
Non-vested at January 1, 2014
(1)
|
1.1
|
|
|
$
|
37.38
|
|
Forfeited
|
(0.7
|
)
|
|
$
|
34.72
|
|
Vested
|
(0.1
|
)
|
|
$
|
35.55
|
|
Granted
|
0.5
|
|
|
$
|
32.50
|
|
Non-vested at December 31, 2015
|
0.8
|
|
|
$
|
34.06
|
|
(1)
|
Non-vested performance shares are based on a maximum potential payout. Actual shares vested at the end of the performance period may be less than the maximum potential payout level depending on achievement of the performance objectives, as determined by the Board of Directors.
|
|
2015
|
|
2014
|
|
2013
|
||||||
Domestic
|
$
|
(56.6
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
(193.1
|
)
|
Foreign
|
102.4
|
|
|
170.0
|
|
|
51.3
|
|
|||
Total
|
$
|
45.8
|
|
|
$
|
154.7
|
|
|
$
|
(141.8
|
)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Current
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
(2.0
|
)
|
|
$
|
0.3
|
|
|
$
|
3.2
|
|
Foreign
|
38.2
|
|
|
61.5
|
|
|
59.3
|
|
|||
State and local
|
(0.6
|
)
|
|
—
|
|
|
2.4
|
|
|||
Total current
|
35.6
|
|
|
61.8
|
|
|
64.9
|
|
|||
Deferred
|
|
|
|
|
|
||||||
U.S. federal
|
(38.3
|
)
|
|
(2.6
|
)
|
|
(20.2
|
)
|
|||
Foreign
|
(11.1
|
)
|
|
(9.4
|
)
|
|
9.7
|
|
|||
State and local
|
0.1
|
|
|
(2.4
|
)
|
|
(6.0
|
)
|
|||
Total deferred
|
(49.3
|
)
|
|
(14.4
|
)
|
|
(16.5
|
)
|
|||
Income tax (benefit) expense
|
$
|
(13.7
|
)
|
|
$
|
47.4
|
|
|
$
|
48.4
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Statutory tax expense (benefit)
|
$
|
16.0
|
|
|
$
|
54.1
|
|
|
$
|
(49.6
|
)
|
Brazil non-taxable incentive
|
(4.2
|
)
|
|
(15.5
|
)
|
|
(7.8
|
)
|
|||
Valuation allowance
|
(0.7
|
)
|
|
9.5
|
|
|
43.9
|
|
|||
Brazil tax goodwill amortization
|
—
|
|
|
(1.5
|
)
|
|
(3.8
|
)
|
|||
Foreign tax rate differential
|
(19.4
|
)
|
|
(14.9
|
)
|
|
(12.4
|
)
|
|||
Foreign subsidiary earnings
|
(9.1
|
)
|
|
14.6
|
|
|
59.3
|
|
|||
Accrual adjustments
|
1.5
|
|
|
2.2
|
|
|
5.8
|
|
|||
Non-deductible goodwill
|
—
|
|
|
—
|
|
|
5.2
|
|
|||
FCPA provision, nondeductible portion
|
—
|
|
|
—
|
|
|
5.4
|
|
|||
Business tax credits
|
(1.4
|
)
|
|
(2.4
|
)
|
|
(2.1
|
)
|
|||
Non-deductible (non-taxable) items
|
4.2
|
|
|
—
|
|
|
5.4
|
|
|||
Other
|
(0.6
|
)
|
|
1.3
|
|
|
(0.9
|
)
|
|||
Income tax (benefit) expense
|
$
|
(13.7
|
)
|
|
$
|
47.4
|
|
|
$
|
48.4
|
|
|
2015
|
|
2014
|
||||
Balance at January 1
|
$
|
15.0
|
|
|
$
|
16.6
|
|
Decreases related to prior year tax positions
|
(0.4
|
)
|
|
0.3
|
|
||
Increases related to current year tax positions
|
0.9
|
|
|
0.7
|
|
||
Settlements
|
(0.2
|
)
|
|
(2.5
|
)
|
||
Reduction due to lapse of applicable statute of limitations
|
(2.2
|
)
|
|
(0.1
|
)
|
||
Balance at December 31
|
$
|
13.1
|
|
|
$
|
15.0
|
|
|
2015
|
|
2014
|
||||
Deferred tax assets
|
|
|
|
||||
Accrued expenses
|
$
|
40.8
|
|
|
$
|
56.7
|
|
Warranty accrual
|
22.0
|
|
|
35.6
|
|
||
Deferred compensation
|
14.0
|
|
|
15.8
|
|
||
Allowance for doubtful accounts
|
11.9
|
|
|
9.1
|
|
||
Inventories
|
12.7
|
|
|
14.1
|
|
||
Deferred revenue
|
20.1
|
|
|
12.5
|
|
||
Pension and post-retirement benefits
|
70.4
|
|
|
73.0
|
|
||
Tax credits
|
62.5
|
|
|
33.4
|
|
||
Net operating loss carryforwards
|
58.5
|
|
|
68.9
|
|
||
Capital loss carryforwards
|
1.9
|
|
|
—
|
|
||
State deferred taxes
|
16.3
|
|
|
17.4
|
|
||
Other
|
12.1
|
|
|
3.4
|
|
||
|
343.2
|
|
|
339.9
|
|
||
Valuation allowance
|
(63.9
|
)
|
|
(88.0
|
)
|
||
Net deferred tax assets
|
$
|
279.3
|
|
|
$
|
251.9
|
|
|
|
|
|
||||
Deferred tax liabilities
|
|
|
|
||||
Property, plant and equipment
|
$
|
20.5
|
|
|
$
|
18.3
|
|
Goodwill and intangible assets
|
17.6
|
|
|
17.5
|
|
||
Partnership interest
|
7.7
|
|
|
13.1
|
|
||
Undistributed earnings
|
7.3
|
|
|
14.3
|
|
||
Net deferred tax liabilities
|
53.1
|
|
|
63.2
|
|
||
Net deferred tax asset
|
$
|
226.2
|
|
|
$
|
188.7
|
|
|
2015
|
|
2014
|
||||
Deferred income taxes - current assets
|
$
|
168.8
|
|
|
$
|
111.0
|
|
Deferred income taxes - long-term assets
|
65.3
|
|
|
86.5
|
|
||
Other current liabilities
|
(6.0
|
)
|
|
(2.3
|
)
|
||
Deferred income taxes - long-term liabilities
|
(1.9
|
)
|
|
(6.5
|
)
|
||
Net deferred tax asset
|
$
|
226.2
|
|
|
$
|
188.7
|
|
|
Cost Basis
|
|
Unrealized Gain
|
|
Fair Value
|
||||||
As of December 31, 2015
|
|
|
|
|
|
||||||
Short-term investments
|
|
|
|
|
|
||||||
Certificates of deposit
|
$
|
39.9
|
|
|
$
|
—
|
|
|
$
|
39.9
|
|
Long-term investments
|
|
|
|
|
|
||||||
Assets held in a rabbi trust
|
$
|
9.3
|
|
|
$
|
—
|
|
|
$
|
9.3
|
|
|
|
|
|
|
|
||||||
As of December 31, 2014
|
|
|
|
|
|
||||||
Short-term investments
|
|
|
|
|
|
||||||
Certificates of deposit
|
$
|
136.7
|
|
|
$
|
—
|
|
|
$
|
136.7
|
|
Long-term investments:
|
|
|
|
|
|
||||||
Assets held in a rabbi trust
|
$
|
9.3
|
|
|
$
|
0.4
|
|
|
$
|
9.7
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Finance lease receivables sold
|
$
|
10.6
|
|
|
$
|
22.0
|
|
|
$
|
—
|
|
|
2015
|
|
2014
|
||||
Gross minimum lease receivable
|
$
|
76.0
|
|
|
$
|
161.2
|
|
Allowance for credit losses
|
(0.5
|
)
|
|
(0.4
|
)
|
||
Estimated unguaranteed residual values
|
5.2
|
|
|
6.1
|
|
||
|
80.7
|
|
|
166.9
|
|
||
Less:
|
|
|
|
||||
Unearned interest income
|
(4.4
|
)
|
|
(1.3
|
)
|
||
Unearned residuals
|
(1.4
|
)
|
|
(7.3
|
)
|
||
|
(5.8
|
)
|
|
(8.6
|
)
|
||
Total
|
$
|
74.9
|
|
|
$
|
158.3
|
|
2016
|
$
|
44.8
|
|
2017
|
22.1
|
|
|
2018
|
4.7
|
|
|
2019
|
2.2
|
|
|
2020
|
1.2
|
|
|
Thereafter
|
1.0
|
|
|
|
$
|
76.0
|
|
|
|
Finance
Leases |
|
Notes
Receivable |
|
Total
|
||||||
Allowance for credit losses
|
|
|
|
|
|
|
||||||
Balance at January 1, 2014
|
|
$
|
0.4
|
|
|
$
|
4.1
|
|
|
$
|
4.5
|
|
Provision for credit losses
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
Write-offs
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
|||
Balance at December 31, 2014
|
|
$
|
0.4
|
|
|
$
|
4.1
|
|
|
$
|
4.5
|
|
Provision for credit losses
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|||
Write-offs
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|||
Balance at December 31, 2015
|
|
$
|
0.5
|
|
|
$
|
4.1
|
|
|
$
|
4.6
|
|
|
|
December 31,
|
||||||
|
|
2015
|
|
2014
|
||||
30-59 days past due
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
60-89 days past due
|
|
—
|
|
|
—
|
|
||
> 89 days past due
|
|
3.0
|
|
|
1.5
|
|
||
Total past due
|
|
$
|
3.1
|
|
|
$
|
1.6
|
|
|
2015
|
|
2014
|
||||
Finished goods
|
$
|
145.8
|
|
|
$
|
194.8
|
|
Service parts
|
175.4
|
|
|
107.7
|
|
||
Raw materials and work in process
|
48.1
|
|
|
72.2
|
|
||
Total inventories
|
$
|
369.3
|
|
|
$
|
374.7
|
|
|
Estimated Useful Life
(years) |
|
2015
|
|
2014
|
||||
Land and land improvements
|
0-15
|
|
$
|
6.1
|
|
|
$
|
7.0
|
|
Buildings and building equipment
|
15
|
|
57.7
|
|
|
59.5
|
|
||
Machinery, tools and equipment
|
5-12
|
|
83.5
|
|
|
86.0
|
|
||
Leasehold improvements
(1)
|
10
|
|
22.1
|
|
|
24.1
|
|
||
Computer equipment
|
3-5
|
|
58.4
|
|
|
56.6
|
|
||
Computer software
|
5-10
|
|
188.4
|
|
|
160.2
|
|
||
Furniture and fixtures
|
5-8
|
|
62.0
|
|
|
63.6
|
|
||
Tooling
|
3-5
|
|
104.5
|
|
|
94.6
|
|
||
Construction in progress
|
|
|
26.3
|
|
|
53.2
|
|
||
Total property plant and equipment, at cost
|
|
|
$
|
609.0
|
|
|
$
|
604.8
|
|
Less accumulated depreciation and amortization
|
|
|
433.7
|
|
|
439.1
|
|
||
Total property plant and equipment, net
|
|
|
$
|
175.3
|
|
|
$
|
165.7
|
|
(1)
|
The estimated useful life for leasehold improvements is the lesser of 10 years or the term of the lease.
|
|
NA
|
|
AP
|
|
EMEA
|
|
LA
|
|
Total
|
||||||||||
Goodwill
|
$
|
112.1
|
|
|
$
|
41.3
|
|
|
$
|
168.7
|
|
|
$
|
148.5
|
|
|
$
|
470.6
|
|
Assets held for sale
|
(33.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.9
|
)
|
|||||
Accumulated impairment losses
|
(13.2
|
)
|
|
—
|
|
|
(168.7
|
)
|
|
(108.8
|
)
|
|
(290.7
|
)
|
|||||
Balance at January 1, 2014
|
65.0
|
|
|
41.3
|
|
|
—
|
|
|
39.7
|
|
|
146.0
|
|
|||||
Divestiture
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
|||||
Currency translation adjustment
|
(0.2
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
(6.3
|
)
|
|||||
Goodwill
|
76.4
|
|
|
40.0
|
|
|
168.7
|
|
|
143.7
|
|
|
428.8
|
|
|||||
Accumulated impairment losses
|
(13.2
|
)
|
|
—
|
|
|
(168.7
|
)
|
|
(108.8
|
)
|
|
(290.7
|
)
|
|||||
Balance at December 31, 2014
|
63.2
|
|
|
40.0
|
|
|
—
|
|
|
34.9
|
|
|
138.1
|
|
|||||
Goodwill acquired
|
39.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39.7
|
|
|||||
Currency translation adjustment
|
(3.4
|
)
|
|
(2.4
|
)
|
|
—
|
|
|
(10.5
|
)
|
|
(16.3
|
)
|
|||||
Goodwill
|
112.7
|
|
|
37.6
|
|
|
168.7
|
|
|
133.2
|
|
|
452.2
|
|
|||||
Accumulated impairment losses
|
(13.2
|
)
|
|
—
|
|
|
(168.7
|
)
|
|
(108.8
|
)
|
|
(290.7
|
)
|
|||||
Balance at December 31, 2015
|
$
|
99.5
|
|
|
$
|
37.6
|
|
|
$
|
—
|
|
|
$
|
24.4
|
|
|
$
|
161.5
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Internally-developed
software
|
$
|
92.4
|
|
|
$
|
(48.5
|
)
|
|
$
|
43.9
|
|
|
$
|
102.1
|
|
|
$
|
(65.8
|
)
|
|
$
|
36.3
|
|
Other intangibles
|
36.7
|
|
|
(16.3
|
)
|
|
20.4
|
|
|
42.6
|
|
|
(18.9
|
)
|
|
23.7
|
|
||||||
Total
|
$
|
129.1
|
|
|
$
|
(64.8
|
)
|
|
$
|
64.3
|
|
|
$
|
144.7
|
|
|
$
|
(84.7
|
)
|
|
$
|
60.0
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
Notes payable – current
|
|
|
|
||||
Uncommitted lines of credit
|
$
|
19.2
|
|
|
$
|
24.8
|
|
Term loan
|
11.5
|
|
|
—
|
|
||
Other
|
1.3
|
|
|
0.8
|
|
||
|
$
|
32.0
|
|
|
$
|
25.6
|
|
Long-term debt
|
|
|
|
||||
Credit facility
|
$
|
168.0
|
|
|
$
|
240.0
|
|
Term loan
|
218.5
|
|
|
—
|
|
||
Senior notes
|
225.0
|
|
|
225.0
|
|
||
Industrial development revenue bonds
|
—
|
|
|
11.9
|
|
||
Other
|
1.6
|
|
|
2.9
|
|
||
|
$
|
613.1
|
|
|
$
|
479.8
|
|
|
Maturities of
Long-Term Debt |
||
2016
|
$
|
175.0
|
|
2017
|
1.2
|
|
|
2018
|
50.4
|
|
|
2019
|
0.1
|
|
|
Thereafter
|
386.4
|
|
|
|
$
|
613.1
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Change in benefit obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
578.0
|
|
|
$
|
469.0
|
|
|
$
|
14.5
|
|
|
$
|
13.1
|
|
Service cost
|
3.7
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
23.8
|
|
|
23.0
|
|
|
0.6
|
|
|
0.6
|
|
||||
Actuarial (gain) loss
|
(29.8
|
)
|
|
112.6
|
|
|
(1.4
|
)
|
|
1.9
|
|
||||
Plan participant contributions
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
Medicare retiree drug subsidy reimbursements
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
||||
Benefits paid
|
(29.3
|
)
|
|
(29.5
|
)
|
|
(1.3
|
)
|
|
(1.4
|
)
|
||||
Benefit obligation at end of year
|
546.4
|
|
|
578.0
|
|
|
12.7
|
|
|
14.5
|
|
||||
Change in plan assets
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
$
|
364.2
|
|
|
$
|
346.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
(0.6
|
)
|
|
37.5
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
13.6
|
|
|
9.6
|
|
|
1.2
|
|
|
1.3
|
|
||||
Plan participant contributions
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
||||
Benefits paid
|
(29.3
|
)
|
|
(29.5
|
)
|
|
(1.3
|
)
|
|
(1.4
|
)
|
||||
Fair value of plan assets at end of year
|
347.9
|
|
|
364.2
|
|
|
—
|
|
|
—
|
|
||||
Funded status
|
$
|
(198.5
|
)
|
|
$
|
(213.8
|
)
|
|
$
|
(12.7
|
)
|
|
$
|
(14.5
|
)
|
Amounts recognized in balance sheets
|
|
|
|
|
|
|
|
||||||||
Current liabilities
|
$
|
3.5
|
|
|
$
|
3.5
|
|
|
$
|
1.2
|
|
|
$
|
1.4
|
|
Noncurrent liabilities
(1)
|
195.0
|
|
|
210.3
|
|
|
11.3
|
|
|
13.1
|
|
||||
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
||||||||
Unrecognized net actuarial loss
(2)
|
(167.5
|
)
|
|
(176.1
|
)
|
|
(2.5
|
)
|
|
(4.3
|
)
|
||||
Unrecognized prior service (cost) benefit
(2)
|
(0.1
|
)
|
|
(0.1
|
)
|
|
0.1
|
|
|
0.2
|
|
||||
Net amount recognized
|
$
|
30.9
|
|
|
$
|
37.6
|
|
|
$
|
10.1
|
|
|
$
|
10.4
|
|
Change in accumulated other comprehensive loss
|
|
|
|
|
|
|
|||||||||
Balance at beginning of year
|
$
|
(176.2
|
)
|
|
$
|
(77.9
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
(2.2
|
)
|
Prior service credit recognized during the year
|
—
|
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||
Net actuarial losses recognized during the year
|
6.6
|
|
|
3.0
|
|
|
0.3
|
|
|
0.2
|
|
||||
Net actuarial gains (losses) occurring during the year
|
2.0
|
|
|
(101.1
|
)
|
|
1.4
|
|
|
(1.9
|
)
|
||||
Balance at end of year
|
$
|
(167.6
|
)
|
|
$
|
(176.2
|
)
|
|
$
|
(2.6
|
)
|
|
$
|
(4.1
|
)
|
(1)
|
Included in the consolidated balance sheets in pensions and other benefits and other post-retirement benefits are international plans.
|
(2)
|
Represents amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service cost
|
$
|
3.7
|
|
|
$
|
2.9
|
|
|
$
|
11.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
23.8
|
|
|
23.0
|
|
|
27.6
|
|
|
0.6
|
|
|
0.6
|
|
|
0.6
|
|
||||||
Expected return on plan assets
|
(27.0
|
)
|
|
(25.8
|
)
|
|
(35.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost
(1)
|
—
|
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
||||||
Recognized net actuarial loss
|
6.6
|
|
|
3.0
|
|
|
14.5
|
|
|
0.3
|
|
|
0.2
|
|
|
0.4
|
|
||||||
Curtailment loss
|
—
|
|
|
—
|
|
|
10.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlement loss
|
—
|
|
|
—
|
|
|
20.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Special termination benefits
|
—
|
|
|
—
|
|
|
38.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
7.1
|
|
|
$
|
2.9
|
|
|
$
|
87.3
|
|
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
(1)
|
The annual amortization of prior service cost is determined as the increase in projected benefit obligation due to the plan change divided by the average remaining service period of participating employees expected to receive benefits under the plan.
|
|
2015
|
|
2014
|
||||
Projected benefit obligation
|
$
|
546.4
|
|
|
$
|
578.0
|
|
Accumulated benefit obligation
|
$
|
546.1
|
|
|
$
|
577.6
|
|
Fair value of plan assets
|
$
|
347.9
|
|
|
$
|
364.2
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Discount rate
|
4.62
|
%
|
|
4.21
|
%
|
|
4.62
|
%
|
|
4.21
|
%
|
Rate of compensation increase
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Discount rate
|
4.21
|
%
|
|
5.09
|
%
|
|
4.21
|
%
|
|
5.09
|
%
|
Expected long-term return on plan assets
|
7.75
|
%
|
|
7.95
|
%
|
|
N/A
|
|
|
N/A
|
|
Rate of compensation increase
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
2015
|
|
2014
|
||
Healthcare cost trend rate assumed for next year
|
7.0
|
%
|
|
7.5
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
5.0
|
%
|
|
5.0
|
%
|
Year that rate reaches ultimate trend rate
|
2020
|
|
|
2020
|
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash and other
|
|
$
|
3.4
|
|
|
$
|
3.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
|
14.7
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. mid cap value
|
|
13.2
|
|
|
13.2
|
|
|
—
|
|
|
—
|
|
||||
U.S. small cap core
|
|
16.9
|
|
|
16.9
|
|
|
—
|
|
|
—
|
|
||||
International developed markets
|
|
34.0
|
|
|
34.0
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate bonds
|
|
47.4
|
|
|
—
|
|
|
47.4
|
|
|
—
|
|
||||
International corporate bonds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
U.S. government
|
|
3.3
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
||||
Other fixed income
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Emerging markets
|
|
17.8
|
|
|
—
|
|
|
17.8
|
|
|
—
|
|
||||
Common collective trusts
|
|
|
|
|
|
|
|
|
||||||||
Real estate (a)
|
|
19.6
|
|
|
—
|
|
|
—
|
|
|
19.6
|
|
||||
Other (b)
|
|
143.4
|
|
|
—
|
|
|
143.4
|
|
|
—
|
|
||||
Alternative investments
|
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge funds (c)
|
|
17.2
|
|
|
—
|
|
|
—
|
|
|
17.2
|
|
||||
Private equity funds (d)
|
|
16.5
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
||||
Fair value of plan assets at end of year
|
|
$
|
347.9
|
|
|
$
|
82.2
|
|
|
$
|
212.4
|
|
|
$
|
53.3
|
|
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash and other
|
|
$
|
3.9
|
|
|
$
|
3.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
|
15.3
|
|
|
15.3
|
|
|
—
|
|
|
—
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. mid cap value
|
|
13.9
|
|
|
13.9
|
|
|
—
|
|
|
—
|
|
||||
U.S. small cap core
|
|
18.5
|
|
|
18.5
|
|
|
—
|
|
|
—
|
|
||||
International developed markets
|
|
33.9
|
|
|
33.9
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. corporate bonds
|
|
51.7
|
|
|
—
|
|
|
51.7
|
|
|
—
|
|
||||
International corporate bonds
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
U.S. government
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Other fixed income
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Emerging markets
|
|
16.7
|
|
|
—
|
|
|
16.7
|
|
|
—
|
|
||||
Common collective trusts
|
|
|
|
|
|
|
|
|
||||||||
Real estate (a)
|
|
16.7
|
|
|
—
|
|
|
—
|
|
|
16.7
|
|
||||
Other (b)
|
|
153.8
|
|
|
—
|
|
|
153.8
|
|
|
—
|
|
||||
Alternative investments
|
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge funds (c)
|
|
16.6
|
|
|
—
|
|
|
—
|
|
|
16.6
|
|
||||
Private equity funds (d)
|
|
20.8
|
|
|
—
|
|
|
—
|
|
|
20.8
|
|
||||
Fair value of plan assets at end of year
|
|
$
|
364.2
|
|
|
$
|
85.5
|
|
|
$
|
224.6
|
|
|
$
|
54.1
|
|
(a)
|
Real estate common collective trust.
The objective of the real estate common collective trust (CCT) is to achieve long-term returns through investments in a broadly diversified portfolio of improved properties with stabilized occupancies. As of
December 31, 2015
, investments in this CCT included approximately
48 percent
office,
20 percent
residential,
24 percent
retail and
8 percent
industrial, cash and other. As of
December 31, 2014
, investments in this CCT included approximately
44 percent
office,
21 percent
residential,
24 percent
retail and
11 percent
industrial, cash and other. Investments in the real estate CCT can be redeemed once per quarter subject to available cash, with a
45-day notice
.
|
(b)
|
Other common collective trusts.
At
December 31, 2015
, approximately
59 percent
of the other CCTs are invested in fixed income securities including approximately
25 percent
in mortgage-backed securities,
45 percent
in corporate bonds and
30 percent
in U.S. Treasury and other. Approximately
41 percent
of the other CCTs at
December 31, 2015
are invested in Russell 1000 Fund large cap index funds. At
December 31, 2014
, approximately
58 percent
of the other CCTs are invested in fixed-income securities including approximately
27 percent
in mortgage-backed securities,
47 percent
in corporate bonds and
26 percent
in U.S. Treasury and other. Approximately
42 percent
of the other CCTs at
December 31, 2014
are invested in Russell 1000 Fund large cap index funds. Investments in fixed-income securities can be redeemed
daily
.
|
(c)
|
Multi-strategy hedge funds.
The objective of the multi-strategy hedge funds is to diversify risks and reduce volatility. At
December 31, 2015
and
2014
, investments in this class include approximately
53 percent
and
46 percent
long/short equity, respectively,
40 percent
and
44 percent
arbitrage and event investments, respectively, and
7 percent
and
10 percent
in directional trading, fixed income and other, respectively. Investments in the multi-strategy hedge fund can be redeemed semi-annually with
a 95-day notice
.
|
(d)
|
Private equity funds.
The objective of the private equity funds is to achieve long-term returns through investments in a diversified portfolio of private equity limited partnerships that offer a variety of investment strategies, targeting low volatility and low correlation to traditional asset classes. As of
December 31, 2015
and
2014
, investments in these private equity funds include approximately
50 percent
, in both years, in buyout private equity funds that usually invest in mature companies with established business plans, approximately
25 percent
in both years, in special situations private equity and debt funds that focus on niche investment strategies and approximately
25 percent
in both years, in venture private equity funds that invest in early development or expansion of business. Investments in the private equity fund can be redeemed only with written consent from the general partner, which may or may not be granted. At
December 31, 2015
and
2014
, the Company had unfunded commitments of underlying funds of
$5.5
in both years.
|
|
|
2015
|
|
2014
|
||||
Balance, January 1
|
|
$
|
54.1
|
|
|
$
|
73.4
|
|
Dispositions
|
|
(6.1
|
)
|
|
(26.2
|
)
|
||
Realized and unrealized gain, net
|
|
5.3
|
|
|
6.9
|
|
||
Balance, December 31
|
|
$
|
53.3
|
|
|
$
|
54.1
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||
Amount of net prior service credit
|
$
|
—
|
|
|
$
|
—
|
|
Amount of net loss
|
$
|
5.5
|
|
|
$
|
0.2
|
|
|
Pension Benefits
|
|
Other Benefits
|
|
Other Benefits
after Medicare Part D Subsidy |
||||||
2016
|
$
|
27.2
|
|
|
$
|
1.4
|
|
|
$
|
1.3
|
|
2017
|
$
|
27.4
|
|
|
$
|
1.4
|
|
|
$
|
1.3
|
|
2018
|
$
|
27.9
|
|
|
$
|
1.3
|
|
|
$
|
1.2
|
|
2019
|
$
|
28.4
|
|
|
$
|
1.3
|
|
|
$
|
1.2
|
|
2020
|
$
|
29.2
|
|
|
$
|
1.2
|
|
|
$
|
1.1
|
|
2021-2025
|
$
|
155.5
|
|
|
$
|
5.4
|
|
|
$
|
4.9
|
|
|
Employees hired prior
to July 1, 2003 |
|
Employees hired on
or after July 1, 2003 |
Effective January 1, 2012 - December 31, 2013
|
30% of first 6%
|
|
60% of first 6%
|
Effective January 1, 2014 - December 31, 2015
|
60% of first 6%
|
|
60% of first 6%
|
|
Total
|
|
Real Estate
|
|
Vehicles and Equipment (a)
|
||||||
2016
|
$
|
43.4
|
|
|
$
|
25.9
|
|
|
$
|
17.5
|
|
2017
|
27.9
|
|
|
19.0
|
|
|
8.9
|
|
|||
2018
|
19.9
|
|
|
14.3
|
|
|
5.6
|
|
|||
2019
|
13.6
|
|
|
11.8
|
|
|
1.8
|
|
|||
2020
|
10.6
|
|
|
10.0
|
|
|
0.6
|
|
|||
Thereafter
|
12.7
|
|
|
12.6
|
|
|
0.1
|
|
|||
|
$
|
128.1
|
|
|
$
|
93.6
|
|
|
$
|
34.5
|
|
(a)
|
The Company leases vehicles with contractual terms of
36
to
60 months
that are cancellable after
12 months
without penalty. Future minimum lease payments reflect only the minimum payments during the initial
12-month non-cancellable term
.
|
|
2015
|
|
2014
|
||||
Balance at January 1
|
$
|
113.3
|
|
|
$
|
83.2
|
|
Current period accruals
|
35.7
|
|
|
92.6
|
|
||
Current period settlements
|
(49.1
|
)
|
|
(51.2
|
)
|
||
Currency translation
|
(26.3
|
)
|
|
(11.3
|
)
|
||
Balance at December 31
|
$
|
73.6
|
|
|
$
|
113.3
|
|
Derivative instrument
|
|
Classification on consolidated statement operations
|
|
2015
|
|
2014
|
|
2013
|
||||||
Cash flow hedges
|
|
Interest expense
|
|
$
|
(4.2
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
(6.4
|
)
|
Foreign exchange option contracts gain
|
|
Miscellaneous, net
|
|
7.0
|
|
|
—
|
|
|
—
|
|
|||
Foreign exchange forward contracts
|
|
Foreign exchange (loss) gain, net
|
|
10.7
|
|
|
21.1
|
|
|
10.9
|
|
|||
Total
|
|
|
|
$
|
13.5
|
|
|
$
|
14.8
|
|
|
$
|
4.5
|
|
|
|
|
|
Notional Amounts
|
|||||||
Instrument
|
|
Number of Instruments
|
|
Call
|
|
Put
|
|||||
Foreign currency option contracts
|
|
2
|
|
|
€
|
1,416.0
|
|
|
$
|
1,547.1
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Cost of sales - services
|
$
|
3.1
|
|
|
$
|
0.5
|
|
|
$
|
25.6
|
|
Cost of sales - products
|
1.4
|
|
|
1.2
|
|
|
1.2
|
|
|||
Selling and administrative expense
|
16.1
|
|
|
—
|
|
|
20.4
|
|
|||
Research, development and engineering expense
|
0.6
|
|
|
9.9
|
|
|
6.0
|
|
|||
Total
|
$
|
21.2
|
|
|
$
|
11.6
|
|
|
$
|
53.2
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Severance
|
|
|
|
|
|
||||||
NA
|
$
|
10.6
|
|
|
$
|
4.1
|
|
|
$
|
42.8
|
|
AP
|
1.2
|
|
|
0.4
|
|
|
2.0
|
|
|||
EMEA
|
3.8
|
|
|
0.5
|
|
|
1.2
|
|
|||
LA
|
5.6
|
|
|
6.6
|
|
|
4.1
|
|
|||
Total severance
|
21.2
|
|
|
11.6
|
|
|
50.1
|
|
|||
|
|
|
|
|
|
||||||
Other
|
|
|
|
|
|
||||||
NA
|
—
|
|
|
—
|
|
|
2.0
|
|
|||
AP
|
—
|
|
|
—
|
|
|
0.6
|
|
|||
EMEA
|
—
|
|
|
—
|
|
|
0.5
|
|
|||
Total other
|
—
|
|
|
—
|
|
|
3.1
|
|
|||
Total
|
$
|
21.2
|
|
|
$
|
11.6
|
|
|
$
|
53.2
|
|
Cumulative total restructuring costs from continuing operations for the multi-year realignment plan
|
Severance
|
|
Other
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
NA
|
$
|
67.9
|
|
|
$
|
2.0
|
|
|
$
|
69.9
|
|
AP
|
3.8
|
|
|
0.6
|
|
|
4.4
|
|
|||
EMEA
|
5.6
|
|
|
0.9
|
|
|
6.5
|
|
|||
LA
|
20.0
|
|
|
—
|
|
|
20.0
|
|
|||
Total
|
$
|
97.3
|
|
|
$
|
3.5
|
|
|
$
|
100.8
|
|
Balance at January 1, 2013
|
$
|
10.5
|
|
Liabilities incurred
|
53.2
|
|
|
Liabilities paid/settled
|
(32.0
|
)
|
|
Balance at December 31, 2013
|
$
|
31.7
|
|
Liabilities incurred
|
11.6
|
|
|
Liabilities paid/settled
|
(35.7
|
)
|
|
Balance at December 31, 2014
|
$
|
7.6
|
|
Liabilities incurred
|
21.2
|
|
|
Liabilities paid/settled
|
(24.1
|
)
|
|
Balance at December 31, 2015
|
$
|
4.7
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
|
|
Fair Value Measurements Using
|
|
|
|
Fair Value Measurements Using
|
||||||||||||||||
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Certificates of deposit
|
$
|
39.9
|
|
|
$
|
39.9
|
|
|
$
|
—
|
|
|
$
|
136.7
|
|
|
$
|
136.7
|
|
|
$
|
—
|
|
Assets held in rabbi trusts
|
9.3
|
|
|
9.3
|
|
|
—
|
|
|
9.7
|
|
|
9.7
|
|
|
—
|
|
||||||
Foreign exchange forward contracts
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
||||||
Foreign exchange option contracts
|
7.0
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
59.7
|
|
|
$
|
49.2
|
|
|
$
|
10.5
|
|
|
$
|
149.4
|
|
|
$
|
146.4
|
|
|
$
|
3.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred compensation
|
$
|
9.3
|
|
|
$
|
9.3
|
|
|
$
|
—
|
|
|
$
|
9.7
|
|
|
$
|
9.7
|
|
|
$
|
—
|
|
Foreign exchange forward contracts
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
||||||
Interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
||||||
Total
|
$
|
10.8
|
|
|
$
|
9.3
|
|
|
$
|
1.5
|
|
|
$
|
11.9
|
|
|
$
|
9.7
|
|
|
$
|
2.2
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
||||||||
Notes payable
|
$
|
32.0
|
|
|
$
|
32.0
|
|
|
$
|
25.6
|
|
|
$
|
25.6
|
|
Long-term debt
|
613.0
|
|
|
613.1
|
|
|
483.6
|
|
|
479.8
|
|
||||
Total debt instruments
|
$
|
645.0
|
|
|
$
|
645.1
|
|
|
$
|
509.2
|
|
|
$
|
505.4
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Revenue summary by segment
|
|
|
|
|
|
||||||
NA
|
$
|
1,094.5
|
|
|
$
|
1,091.4
|
|
|
$
|
1,140.2
|
|
AP
|
439.6
|
|
|
500.3
|
|
|
479.1
|
|
|||
EMEA
|
393.1
|
|
|
421.2
|
|
|
362.2
|
|
|||
LA
|
492.1
|
|
|
721.9
|
|
|
601.1
|
|
|||
Total customer revenues
|
$
|
2,419.3
|
|
|
$
|
2,734.8
|
|
|
$
|
2,582.6
|
|
|
|
|
|
|
|
||||||
Intersegment revenues
|
|
|
|
|
|
||||||
NA
|
$
|
81.4
|
|
|
$
|
68.4
|
|
|
$
|
76.3
|
|
AP
|
99.7
|
|
|
85.4
|
|
|
99.3
|
|
|||
EMEA
|
73.4
|
|
|
56.6
|
|
|
46.0
|
|
|||
LA
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|||
Total intersegment revenues
|
$
|
255.0
|
|
|
$
|
210.9
|
|
|
$
|
221.6
|
|
|
|
|
|
|
|
||||||
Segment operating profit
|
|
|
|
|
|
||||||
NA
|
$
|
250.1
|
|
|
$
|
266.3
|
|
|
$
|
232.4
|
|
AP
|
63.1
|
|
|
66.4
|
|
|
62.8
|
|
|||
EMEA
|
55.3
|
|
|
61.4
|
|
|
44.0
|
|
|||
LA
|
37.4
|
|
|
68.7
|
|
|
41.5
|
|
|||
Total segment operating profit
|
$
|
405.9
|
|
|
$
|
462.8
|
|
|
$
|
380.7
|
|
|
|
|
|
|
|
|
|
|
|||
Corporate charges not allocated to segments
(1)
|
(270.8
|
)
|
|
(296.6
|
)
|
|
(267.8
|
)
|
|||
Impairment of assets
|
(18.9
|
)
|
|
(2.1
|
)
|
|
(72.0
|
)
|
|||
Restructuring charges
|
(21.2
|
)
|
|
(11.6
|
)
|
|
(53.2
|
)
|
|||
Net non-routine (expense) income
|
(36.4
|
)
|
|
12.5
|
|
|
(128.0
|
)
|
|||
|
(347.3
|
)
|
|
(297.8
|
)
|
|
(521.0
|
)
|
|||
Operating profit (loss)
|
58.6
|
|
|
165.0
|
|
|
(140.3
|
)
|
|||
Other income (expense)
|
(12.8
|
)
|
|
(10.3
|
)
|
|
(1.5
|
)
|
|||
Income (loss) from continuing operations before taxes
|
$
|
45.8
|
|
|
$
|
154.7
|
|
|
$
|
(141.8
|
)
|
(1)
|
Corporate charges not allocated to segments include headquarter based costs associated with manufacturing administration, procurement, human resources, compensation and benefits, finance and accounting, global development/engineering, global strategy/mergers and acquisitions, global information technology, tax, treasury and legal.
|
|
2015
|
|
2014
|
|
2013
|
||||||
Segment depreciation and amortization expense
|
|
|
|
|
|
||||||
NA
|
$
|
9.7
|
|
|
$
|
8.7
|
|
|
$
|
12.1
|
|
AP
|
6.9
|
|
|
7.7
|
|
|
7.7
|
|
|||
EMEA
|
3.1
|
|
|
4.0
|
|
|
3.7
|
|
|||
LA
|
6.9
|
|
|
12.0
|
|
|
11.6
|
|
|||
Total segment depreciation and amortization expense
|
26.6
|
|
|
32.4
|
|
|
35.1
|
|
|||
Corporate depreciation and amortization expense
|
37.4
|
|
|
41.0
|
|
|
47.3
|
|
|||
Total depreciation and amortization expense
|
$
|
64.0
|
|
|
$
|
73.4
|
|
|
$
|
82.4
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Segment property, plant and equipment, at cost
|
|
|
|
|
|
|
||||||
NA
|
|
$
|
110.7
|
|
|
$
|
120.6
|
|
|
$
|
131.0
|
|
AP
|
|
53.3
|
|
|
46.9
|
|
|
46.1
|
|
|||
EMEA
|
|
35.2
|
|
|
38.2
|
|
|
40.7
|
|
|||
LA
|
|
51.9
|
|
|
78.7
|
|
|
89.6
|
|
|||
Total segment property, plant and equipment, at cost
|
|
251.1
|
|
|
284.4
|
|
|
307.4
|
|
|||
Corporate property, plant and equipment, at cost, not allocated to segments
|
|
357.9
|
|
|
320.4
|
|
|
285.0
|
|
|||
Total property, plant and equipment, at cost
|
|
$
|
609.0
|
|
|
$
|
604.8
|
|
|
$
|
592.4
|
|
Revenue summary by service and product solution
|
|
2015
|
|
2014
|
|
2013
|
||||||
Financial self-service
|
|
|
|
|
|
|
||||||
Services
|
|
$
|
1,185.0
|
|
|
$
|
1,219.9
|
|
|
$
|
1,188.7
|
|
Products
|
|
923.7
|
|
|
977.3
|
|
|
977.7
|
|
|||
Total financial self-service
|
|
2,108.7
|
|
|
2,197.2
|
|
|
2,166.4
|
|
|||
Security
|
|
|
|
|
|
|
||||||
Services
|
|
209.3
|
|
|
212.9
|
|
|
232.1
|
|
|||
Products
|
|
83.5
|
|
|
99.5
|
|
|
112.2
|
|
|||
Total security
|
|
292.8
|
|
|
312.4
|
|
|
344.3
|
|
|||
Total financial self-service & security
|
|
2,401.5
|
|
|
2,509.6
|
|
|
2,510.7
|
|
|||
Brazil other
|
|
17.8
|
|
|
225.2
|
|
|
72.0
|
|
|||
|
|
$
|
2,419.3
|
|
|
$
|
2,734.8
|
|
|
$
|
2,582.7
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Net sales
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
1,014.3
|
|
|
$
|
1,035.9
|
|
|
$
|
1,105.2
|
|
Brazil
|
|
211.5
|
|
|
482.5
|
|
|
359.4
|
|
|||
China
|
|
279.0
|
|
|
314.2
|
|
|
319.1
|
|
|||
Other international
|
|
914.5
|
|
|
902.2
|
|
|
799.0
|
|
|||
Total net sales
|
|
$
|
2,419.3
|
|
|
$
|
2,734.8
|
|
|
$
|
2,582.7
|
|
|
|
2015
|
|
2014
|
|
2013
|
||||||
Property, plant and equipment, net
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
130.4
|
|
|
$
|
116.5
|
|
|
$
|
101.4
|
|
Brazil
|
|
12.9
|
|
|
17.2
|
|
|
20.7
|
|
|||
Other international
|
|
32.0
|
|
|
32.0
|
|
|
35.7
|
|
|||
Total property, plant and equipment, net
|
|
$
|
175.3
|
|
|
$
|
165.7
|
|
|
$
|
157.8
|
|
|
Year ended December 31,
|
||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||
Net sales
|
|
|
|
|
|
||||||
Services
|
$
|
221.5
|
|
|
$
|
204.8
|
|
|
$
|
216.3
|
|
Products
|
127.0
|
|
|
111.4
|
|
|
58.6
|
|
|||
|
348.5
|
|
|
316.2
|
|
|
274.9
|
|
|||
Cost of sales
|
|
|
|
|
|
||||||
Services
|
181.1
|
|
|
172.6
|
|
|
174.5
|
|
|||
Products
|
102.2
|
|
|
90.5
|
|
|
46.1
|
|
|||
|
283.3
|
|
|
263.1
|
|
|
220.6
|
|
|||
Gross profit
|
65.2
|
|
|
53.1
|
|
|
54.3
|
|
|||
Selling and administrative expense
|
39.7
|
|
|
37.2
|
|
|
32.3
|
|
|||
Income from discontinued operations before taxes
|
25.5
|
|
|
15.9
|
|
|
22.0
|
|
|||
Income tax expense
|
9.6
|
|
|
6.2
|
|
|
8.3
|
|
|||
Income from discontinued operations, net of tax
|
$
|
15.9
|
|
|
$
|
9.7
|
|
|
$
|
13.7
|
|
|
December 31,
|
||||||
|
2015
|
|
2014
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
(1.5
|
)
|
|
$
|
(4.1
|
)
|
Trade receivables, less allowances for doubtful accounts of $4.0 and $2.1, respectively
|
75.6
|
|
|
74.6
|
|
||
Inventories
|
29.1
|
|
|
30.4
|
|
||
Prepaid expenses
|
0.9
|
|
|
0.8
|
|
||
Other current assets
|
5.0
|
|
|
4.5
|
|
||
Total current assets
|
109.1
|
|
|
106.2
|
|
||
Property, plant and equipment, net
|
5.2
|
|
|
3.8
|
|
||
Goodwill
|
33.9
|
|
|
33.9
|
|
||
Other assets
|
—
|
|
|
1.0
|
|
||
Assets held for sale
|
$
|
148.2
|
|
|
$
|
144.9
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
24.8
|
|
|
$
|
13.1
|
|
Deferred revenue
|
13.3
|
|
|
14.3
|
|
||
Payroll and other benefits liabilities
|
6.6
|
|
|
7.4
|
|
||
Other current liabilities
|
4.7
|
|
|
4.3
|
|
||
Total current liabilities
|
49.4
|
|
|
39.1
|
|
||
Other long-term liabilities
|
—
|
|
|
0.1
|
|
||
Liabilities held for sale
|
$
|
49.4
|
|
|
$
|
39.2
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Net sales
|
$
|
574.8
|
|
|
$
|
614.2
|
|
|
$
|
644.5
|
|
|
$
|
654.4
|
|
|
$
|
589.6
|
|
|
$
|
687.6
|
|
|
$
|
610.4
|
|
|
$
|
778.6
|
|
Gross profit
|
159.3
|
|
|
150.3
|
|
|
170.8
|
|
|
174.0
|
|
|
150.3
|
|
|
187.9
|
|
|
171.6
|
|
|
214.0
|
|
||||||||
Income (loss) from continuing operations, net of tax
|
(10.2
|
)
|
|
2.0
|
|
|
19.7
|
|
|
40.9
|
|
|
18.3
|
|
|
33.1
|
|
|
31.7
|
|
|
31.3
|
|
||||||||
Income from discontinued operations, net of tax
|
4.5
|
|
|
2.9
|
|
|
4.3
|
|
|
2.2
|
|
|
4.5
|
|
|
1.8
|
|
|
2.6
|
|
|
2.8
|
|
||||||||
Net income (loss)
|
(5.7
|
)
|
|
4.9
|
|
|
24.0
|
|
|
43.1
|
|
|
22.8
|
|
|
34.9
|
|
|
34.3
|
|
|
34.1
|
|
||||||||
Net income (loss) attributable to noncontrolling interests
|
(2.9
|
)
|
|
(4.9
|
)
|
|
1.8
|
|
|
1.5
|
|
|
1.1
|
|
|
1.9
|
|
|
1.7
|
|
|
4.1
|
|
||||||||
Net income (loss) attributable to Diebold, Incorporated
|
$
|
(2.8
|
)
|
|
$
|
9.8
|
|
|
$
|
22.2
|
|
|
$
|
41.6
|
|
|
$
|
21.7
|
|
|
$
|
33.0
|
|
|
$
|
32.6
|
|
|
$
|
30.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income (loss) from continuing operations, net of tax
|
$
|
(0.11
|
)
|
|
$
|
0.10
|
|
|
$
|
0.27
|
|
|
$
|
0.61
|
|
|
$
|
0.26
|
|
|
$
|
0.48
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Income from discontinued operations, net of tax
|
0.07
|
|
|
0.05
|
|
|
0.07
|
|
|
0.03
|
|
|
0.07
|
|
|
0.03
|
|
|
0.04
|
|
|
0.04
|
|
||||||||
Net income (loss) attributable to Diebold, Incorporated (basic)
|
$
|
(0.04
|
)
|
|
$
|
0.15
|
|
|
$
|
0.34
|
|
|
$
|
0.64
|
|
|
$
|
0.33
|
|
|
$
|
0.51
|
|
|
$
|
0.50
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income (loss) from continuing operations, net of tax
|
$
|
(0.11
|
)
|
|
$
|
0.11
|
|
|
$
|
0.27
|
|
|
$
|
0.61
|
|
|
$
|
0.26
|
|
|
$
|
0.48
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Income from discontinued operations, net of tax
|
0.07
|
|
|
0.04
|
|
|
0.07
|
|
|
0.03
|
|
|
0.07
|
|
|
0.03
|
|
|
0.04
|
|
|
0.04
|
|
||||||||
Net income (loss) attributable to Diebold, Incorporated (diluted)
|
$
|
(0.04
|
)
|
|
$
|
0.15
|
|
|
$
|
0.34
|
|
|
$
|
0.64
|
|
|
$
|
0.33
|
|
|
$
|
0.51
|
|
|
$
|
0.50
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic weighted-average shares outstanding
|
64.7
|
|
|
64.3
|
|
|
64.9
|
|
|
64.6
|
|
|
65.0
|
|
|
64.6
|
|
|
65.0
|
|
|
64.6
|
|
||||||||
Diluted weighted-average shares outstanding
|
64.7
|
|
|
64.8
|
|
|
65.6
|
|
|
65.2
|
|
|
65.6
|
|
|
65.3
|
|
|
65.7
|
|
|
65.4
|
|
Name, Age, Title and Year Elected to Present Office
|
Other Positions Held Last Five Years
|
Andreas W. Mattes
— 54
President and Chief Executive Officer
Year elected: 2013 |
2011-Jun 2013:
Senior Vice President, Global Strategic Partnerships, Violin Memory (computer storage systems);
2008 - 2011:
Senior Vice President and General Manager of Enterprise Services for the Americas, Hewlett-Packard Co. (computer technologies)
|
Christopher A. Chapman — 41
Senior Vice President and Chief Financial Officer
Year elected: 2014 |
2011 - Jun 2014:
Vice President, Global Finance,
2004- 2011:
Vice President, Controller, International Operations
|
Stefan E. Merz — 51
Senior Vice President, Strategic Projects
Year elected: 2013
|
2011-Aug 2013:
Vice President, Sales, Strategy and Operations, Enterprise Group, Hewlett-Packard Co. (computer technologies);
2009 - 2011:
Vice President Strategy and Operations, Enterprise Operations, Enterprise services for Americas, Hewlett-Packard Co.
|
Jonathan B. Leiken — 44
Senior Vice President, Chief Legal Officer and Secretary
Year elected: 2014
|
2008 - May 2014:
Partner, Jones Day (global legal services)
|
John D. Kristoff — 48
Vice President, Chief Communications Officer
Year elected: 2006
|
|
Sheila M. Rutt — 47
Vice President, Chief Human Resources Officer
Year elected: 2005
|
|
Plan Category
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)
|
|
Weighted-average exercise price of outstanding options, warrants and rights (b)
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
|
|||||
|
Equity compensation plans approved by security holders
|
|
|
|
|
|
|
||||
|
Stock options
|
|
1,677,548
|
|
|
$
|
34.21
|
|
|
N/A
|
|
|
Restricted stock units
|
|
867,828
|
|
|
N/A
|
|
|
N/A
|
|
|
|
Performance shares
|
|
833,427
|
|
|
N/A
|
|
|
N/A
|
|
|
|
Non-employee director deferred shares
|
|
134,200
|
|
|
N/A
|
|
|
N/A
|
|
|
|
Deferred compensation
|
|
17,681
|
|
|
N/A
|
|
|
N/A
|
|
|
|
Total equity compensation plans approved by security holders
|
|
3,530,684
|
|
|
$
|
34.21
|
|
|
5,000,000
|
|
|
|
|
|
|
|
|
|
||||
|
Equity compensation plans not approved by security holders
|
|
|
|
|
|
|
||||
|
Warrants
|
|
34,789
|
|
|
$
|
46.00
|
|
|
N/A
|
|
|
Total equity compensation plans not approved by security holders
|
|
34,789
|
|
|
$
|
46.00
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
||||
|
Total
|
|
3,565,473
|
|
|
$
|
37.30
|
|
|
5,000,000
|
|
|
|
|
|
|
|
|
|
||||
|
In column (b), the weighted-average exercise price is only applicable to stock options. In column (c), the number of securities remaining available for future issuance for stock options, restricted stock units, performance shares and non-employee director deferred shares is approved in total and not individually.
|
•
|
Reports of Independent Registered Public Accounting Firm
|
•
|
Consolidated Balance Sheets at December 31,
2015
and
2014
|
•
|
Consolidated Statements of Operations for the Years Ended December 31,
2015
,
2014
and
2013
|
•
|
Consolidated Statements of Comprehensive Loss for the Years Ended December 31,
2015
,
2014
and
2013
|
•
|
Consolidated Statements of Equity for the Years Ended December 31,
2015
,
2014
and
2013
|
•
|
Consolidated Statements of Cash Flows for the Years Ended December 31,
2015
,
2014
and
2013
|
•
|
Notes to Consolidated Financial Statements
|
•
|
Schedule II - Valuation and Qualifying Accounts
|
32.1
|
Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
|
32.2
|
Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Reflects management contract or other compensatory arrangement required to be filed as an exhibit pursuant to Item 15(b) of this annual report.
|
|
|
(b)
|
Refer to page
107
of this annual report on Form 10-K for an index of exhibits, which is incorporated herein by reference.
|
Signature
|
Title
|
Date
|
|||
|
|
|
|||
/s/ Andreas W. Mattes
|
President and Chief Executive Officer
(Principal Executive Officer)
|
February 29, 2016
|
|||
Andreas W. Mattes
|
|
||||
|
|
|
|||
/s/ Christopher A. Chapman
|
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
February 29, 2016
|
|||
Christopher A. Chapman
|
|
||||
|
|
|
|||
*
|
Director
|
|
February 29, 2016
|
||
Patrick W. Allender
|
|
|
|
||
|
|
|
|||
*
|
Director
|
|
February 29, 2016
|
||
Phillip R. Cox
|
|
|
|
||
|
|
|
|||
*
|
Director
|
|
February 29, 2016
|
||
Richard L. Crandall
|
|
|
|
||
|
|
|
|||
*
|
Director
|
|
February 29, 2016
|
||
Gale S. Fitzgerald
|
|
|
|
||
|
|
|
|||
*
|
Director
|
February 29, 2016
|
|||
Gary G. Greenfield
|
|
|
|||
|
|
|
|||
*
|
Director
|
February 29, 2016
|
|||
Robert S. Prather, Jr.
|
|
|
|||
|
|
|
|||
*
|
Director
|
February 29, 2016
|
|||
Rajesh K. Soin
|
|
|
|||
|
|
|
|
||
*
|
Director
|
|
February 29, 2016
|
||
Henry D.G. Wallace
|
|
|
|
|
|
|
|
|
|
||
*
|
Director
|
|
February 29, 2016
|
||
Alan J. Weber
|
|
|
|
|
*
|
The undersigned, by signing his name hereto, does sign and execute this Annual Report on Form 10-K pursuant to the Powers of Attorney executed by the above-named officers and directors of the Registrant and filed with the Securities and Exchange Commission on behalf of such officers and directors.
|
|
|
|
Additions
|
|
|
|
|
|||||||||
|
Balance at beginning of year
|
|
Charged to costs and expenses
|
|
Charged to other accounts
(1)
|
|
Deductions
(2)
|
|
Balance at
end of year
|
|||||||
Year ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|||||||
Allowance for doubtful accounts
|
$
|
20.9
|
|
|
15.8
|
|
|
(4.0
|
)
|
|
1.0
|
|
|
$
|
31.7
|
|
Year ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|||||||
Allowance for doubtful accounts
|
$
|
23.3
|
|
|
13.4
|
|
|
(1.7
|
)
|
|
14.1
|
|
|
$
|
20.9
|
|
Year ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|||||||
Allowance for doubtful accounts
|
$
|
26.7
|
|
|
13.4
|
|
|
(2.7
|
)
|
|
14.1
|
|
|
$
|
23.3
|
|
EXHIBIT NO.
|
DOCUMENT DESCRIPTION
|
10.27
|
Form of Performance Share Agreement
|
10.28
|
Form of Nonqualified Stock Option Agreement
|
10.29
|
Form of Restricted Stock Unit Agreement - Cliff Vesting
|
10.30
|
Form of Restricted Stock Unit Agreement - Ratable Vesting
|
10.31
|
Form of Restricted Share Agreement
|
21.1
|
Subsidiaries of the Registrant as of December 31, 2015
|
23.1
|
Consent of Independent Registered Public Accounting Firm
|
24.1
|
Power of Attorney
|
31.1
|
Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
|
32.2
|
Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
DIEBOLD, INCORPORATED
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Date:
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Participant
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Date:
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Optionee
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Date:
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Participant
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DIEBOLD, INCORPORATED
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[ ]
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[ ]
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7.
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Form and Time of Payment of RSUs
.
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8.
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Detrimental Activity
.
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Date:
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Participant
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DIEBOLD, INCORPORATED
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[ ]
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[ ]
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12.
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Data Privacy
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Date:
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Participant
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DIEBOLD, INCORPORATED
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By:
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[name of signatory]
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[title of signatory]
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Domestic
|
Jurisdiction under which organized
|
Percent of voting securities owned by Registrant
|
Diebold Australia Holding Company, Inc.
|
Delaware
|
100%
|
Diebold China Security Holding Company, Inc.
|
Delaware
|
100%
|
Diebold Enterprise Security Systems, Inc.
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New York
|
100%
|
Diebold Global Finance Corporation
|
Delaware
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100%
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Diebold Holding Company, Inc.
|
Delaware
|
100%
|
Diebold Latin America Holding Company, LLC
|
Delaware
|
100%
|
Diebold Mexico Holding Company, Inc.
|
Delaware
|
100%
|
Diebold Netherlands Holding Company, LLC
|
Delaware
|
100%(1)
|
Diebold Self-Service Systems
|
New York
|
100%(2)
|
Diebold Software Solutions, Inc.
|
Delaware
|
100%
|
Diebold SST Holding Company, Inc.
|
Delaware
|
100%
|
Diebold Transaction Services, Inc.
|
Delaware
|
100%
|
Impexa LLC
|
Texas
|
100%(3)
|
Mayfair Software Distribution, Inc.
|
Delaware
|
100%
|
Phoenix Interactive USA Inc
|
Delaware
|
100%(39)
|
VDM Holding Company, Inc.
|
Delaware
|
100%
|
Verdi & Associates, Inc.
|
New York
|
100%
|
|
|
|
International
|
Jurisdiction under which organized
|
Percent of voting securities owned by Registrant
|
1932780 Ontario Inc.
|
Canada
|
100%(40)
|
Altus Bilisim Hizmetleri Anonim Sirketi
|
Turkey
|
100%(36)
|
Bitelco Diebold Chile Limitada
|
Chile
|
100%(21)
|
C.R. Panama, Inc.
|
Panama
|
100%(11)
|
Cable Print B.V.B.A.
|
Belgium
|
100%(38)
|
Caribbean Self Service and Security LTD.
|
Barbados
|
50%(10)
|
Central de Alarmas Adler, S.A. de C.V.
|
Mexico
|
100%(20)
|
Cryptera A/S
|
Denmark
|
100%(27)
|
D&G ATMS y Seguridad de Costa Rica Ltda.
|
Costa Rica
|
99.99%(34)
|
D&G Centroamerica y GBM de Nicaragua y Compañia Ltda.
|
Nicaragua
|
99%(32)
|
D&G Centroamerica, S. de R.L.
|
Panama
|
51%(30)
|
D&G Dominicana S.A.
|
Dominican Republic
|
99.85%(33)
|
D&G Honduras S. de R.L.
|
Honduras
|
99%(32)
|
D&G Panama S. de R.L.
|
Panama
|
99.99%(34)
|
DB & GB de El Salvador Limitada
|
El Salvador
|
99%(32)
|
DB&G ATMs Seguridad de Guatemala, Limitada
|
Guatemala
|
99%(32)
|
DBD EMEA Holding C.V.
|
The Netherlands
|
100%(28)
|
DCHC, S.A.
|
Panama
|
100%(11)
|
Diamond UK Holdings LLP
|
United Kingdom
|
100%(43)
|
Diebold Africa (Pty) Ltd.
|
South Africa
|
100%(18)
|
Diebold Africa Investment Holdings Pty. Ltd.
|
South Africa
|
100%(27)
|
Diebold Argentina, S.A.
|
Argentina
|
100%(11)
|
Diebold ATM Cihazlari Sanayi Ve Ticaret A.S.
|
Turkey
|
100%(16)
|
Diebold Australia Pty. Ltd.
|
Australia
|
100%(4)
|
Diebold (Barbados) Holdings 1 Corp.
|
Barbados
|
100%
|
Diebold (Barbados) Holdings 2 Corp.
|
Barbados
|
100%
|
Diebold (Barbados) Holdings 3 Corp.
|
Barbados
|
100%(44)
|
Diebold Belgium B.V.B.A
|
Belgium
|
100%(17)
|
Diebold Bolivia S.R. L.
|
Bolivia
|
100%(31)
|
Diebold Brasil LTDA
|
Brazil
|
100%(29)
|
Diebold Brasil Servicos de Tecnologia e Participacoes Ltda
|
Brazil
|
100%(23)
|
Diebold Canada Holding Company Inc.
|
Canada
|
100%
|
Diebold Colombia S.A.
|
Colombia
|
100%(14)
|
Diebold - Corp Systems Sdn. Bhd.
|
Malaysia
|
100%
|
Diebold Ecuador SA
|
Ecuador
|
100%(19)
|
Diebold EMEA Processing Centre Limited
|
United Kingdom
|
100%
|
Diebold Financial Equipment Company (China), Ltd.
|
Peoples Republic of China
|
85%(25)
|
Diebold France SARL
|
France
|
100%(5)
|
Diebold Germany GmbH
|
Germany
|
100%(5)
|
Diebold Holding Germany Inc. & Co. KGaA
|
Germany
|
100%
|
Diebold Hungary Trading & Servicing LLC
|
Hungary
|
100%(37)
|
Diebold Hungary Self-Service Solutions, Ltd.
|
Hungary
|
100%
|
Diebold International Limited
|
United Kingdom
|
100%(5)
|
Diebold Italia S.p.A.
|
Italy
|
100%(13)
|
Diebold Kazakhstan LLP
|
Kazakhstan
|
100%(5)
|
Diebold Mexico, S.A. de C.V.
|
Mexico
|
100%(3)
|
Diebold Netherlands B.V.
|
The Netherlands
|
100%(5)
|
Diebold One UK Limited
|
United Kingdom
|
100%
|
Diebold Osterreich Selbstbedienungssysteme GmbH
|
Austria
|
100%(5)
|
Diebold Pacific, Limited
|
Hong Kong
|
100%
|
Diebold Panama, Inc.
|
Panama
|
100%(11)
|
Diebold Paraguay S.A.
|
Paraguay
|
100%(21)
|
Diebold Peru S.r.l
|
Peru
|
100%(11)
|
Diebold Philippines, Inc.
|
Philippines
|
100%
|
Diebold Poland S.p. z.o.o.
|
Poland
|
100%(5)
|
Diebold Portugal — Solucoes de Automatizacao, Limitada
|
Portugal
|
100%(5)
|
Diebold Selbstbedienyngssysteme (Schweiz) GmbH
|
Switzerland
|
100%(5)
|
Diebold Self Service Solutions Limited Liability Company
|
Switzerland
|
100%(15)
|
Diebold Self Service Solutions Namibia (Pty) Ltd.
|
Namibia
|
100%(41)
|
Diebold Self-Service Ltd.
|
Russia
|
100%(5)
|
Diebold Self-Service Solutions Industrial and Servicing Rom Srl.
|
Romania
|
100%(42)
|
Diebold Singapore Pte. Ltd.
|
Singapore
|
100%
|
Diebold Software Solutions UK Ltd.
|
United Kingdom
|
100%(9)
|
Diebold South Africa (Pty) Ltd.
|
South Africa
|
74.9%(26)
|
Diebold Spain, S.L.
|
Spain
|
100%(22)
|
Diebold Switzerland Holding Company, LLC
|
Switzerland
|
100%
|
Diebold Systems Private Limited
|
India
|
100%(8)
|
Diebold (Thailand) Company Limited
|
Thailand
|
100%(4)
|
Diebold Uruguay S.A.
|
Uruguay
|
100%(11)
|
Diebold Vietnam Company Limited
|
Vietnam
|
100%
|
GAS Informática Ltda.
|
Brazil
|
100%(35)
|
J.J.F. Panama, Inc.
|
Panama
|
100%(11)
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Phoenix Interactive (Aust) Pty Ltd.
|
Australia
|
100%(39)
|
Phoenix Interactive Design Inc.
|
Canada
|
100%(39)
|
Phoenix Interactive (UK)
|
United Kingdom
|
100%(39)
|
P.T. Diebold Indonesia
|
Indonesia
|
100%(6)
|
Procomp Amazonia Industria Eletronica S.A.
|
Brazil
|
100%(12)
|
Procomp Industria Eletronica LTDA
|
Brazil
|
100%(24)
|
SIAB (HK) Ltd.
|
Hong Kong
|
100%(7)
|
The Diebold Company of Canada, Ltd.
|
Canada
|
100%
|
(1
|
)
|
100 percent of voting securities are owned by Diebold Australia Holding Company, LLC, which is 100% owned by Registrant.
|
|
|
|
(2
|
)
|
70 percent of partnership interest is owned by Diebold Holding Company, Inc., which is 100 percent owned by Registrant, while the remaining 30 percent partnership interest is owned by Diebold SST Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(3
|
)
|
100 percent of voting securities are owned by Diebold Mexico Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(4
|
)
|
100 percent of voting securities are owned by Diebold EMEA Holding C.V. (refer to 28 for ownership).
|
|
|
|
(5
|
)
|
100 percent of voting securities are owned by Diebold Self-Service Solutions Limited Liability Company, which is 100 percent owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(6
|
)
|
88.9 percent of voting securities are owned by Registrant, and 11.1 percent of voting securities are owned by Diebold Pacific, Limited, which is 100 percent owned by Registrant.
|
|
|
|
(7
|
)
|
100 percent of voting securities are owned by Diebold Self-Service Systems (refer to 2 for ownership).
|
|
|
|
(8
|
)
|
70.70 percent of voting securities are owned by Registrant; 21.55 percent of voting securities are owned by Diebold Self-service Solutions Limited Liability Company (refer to 15 for ownership); 7.73 percent of voting securities are owned by Diebold Switzerland Holding Company, LLC, which is 100% owned by Registrant and the remaining .02 percent of voting securities is owned by Diebold Holding Company, Inc., which is 100% owned by Registrant.
|
|
|
|
(9
|
)
|
100 percent of voting securities are owned by Diebold Software Solutions, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(10
|
)
|
50 percent of voting securities are owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(11
|
)
|
100 percent of voting securities are owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(12
|
)
|
99.99 percent of voting securities are owned by Diebold Brasil LTDA, which is 100 percent owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant, while the remaining .01 percent is owned by Registrant.
|
|
|
|
(13
|
)
|
100 percent of voting securities are owned by Diebold International Limited, which is 100 percent owned by Diebold Self-Service Solutions Limited Liability Company, which is 100 percent owned by Diebold Switzerland Holding Company, LLC., which is 100 percent owned by Registrant.
|
|
|
|
(14
|
)
|
21.44 percent of voting securities are owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant; 16.78 percent of voting securities are owned by Diebold Panama, Inc., which is 100 percent owned by Diebold Latin America Holding Company, Inc., which is 100 percent owned by Registrant; 16.78 percent of voting securities are owned by DCHC SA, which is 100 percent owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant; 13.5 percent of voting securities are owned by J.J.F. Panama, Inc, which is 100 percent owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant; and the remaining 31.5 percent of voting securities are owned by C.R. Panama, Inc., which is 100 percent owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(15
|
)
|
100 percent of voting securities are owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
(16
|
)
|
50 percent of voting securities are owned by Diebold Netherlands B.V., which is 100 percent owned by Diebold Self-Service Solutions Limited Liability Company, while the remaining 50 percent of voting securities are owned by Diebold Self-Service Solutions Limited Liability Company, which is 100 percent owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(17
|
)
|
10 percent of voting securities are owned by Diebold Selbstbedienungssysteme GmbH, which is 100 percent owned by Diebold Self Service Solutions Limited Liability Company, while the remaining 90 percent of voting securities are owned by Diebold Self -Service Solutions Limited Liability Company, which is 100 percent owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(18
|
)
|
100 percent of voting securities are owned by Diebold Africa Investment Holdings Pty. Ltd., which is 100 percent owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(19
|
)
|
99.99 percent of voting securities are owned by Diebold Colombia SA (refer to 14 for ownership), while the remaining 0.01 percent of voting securities are owned by Diebold Latin America Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(20
|
)
|
.01 percent of voting securities are owned by Registrant, while 99.99 percent of voting securities are owned by Impexa LLC, which is 100 percent owned by Diebold Mexico Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(21
|
)
|
1 percent of voting securities are owned by Registrant, while 99 percent of voting securities are owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(22
|
)
|
100 percent of voting securities are owned by VDM Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(23
|
)
|
99.99 percent of voting securities are owned by Diebold Canada Holding Company Inc., which is 100 percent owned by Registrant, while the remaining .01 percent is owned by Procomp Amazonia Industria Eletronica S.A. (refer to 12 for ownership).
|
|
|
|
(24
|
)
|
99.99 percent of voting securities are owned by Diebold Brasil Servicos e Participacoes Limitada (refer to 23 for ownership), while the remaining .01 percent are owned by Registrant.
|
|
|
|
(25
|
)
|
85 percent of voting securities are owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(26
|
)
|
74.9 percent of voting securities are owned by Diebold Africa Investment Holdings Pty. Ltd., which is 100 percent owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(27
|
)
|
100 percent of voting securities are owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Registrant.
|
|
|
|
(28
|
)
|
99 percent of voting securities are owned by Diebold Australia Holding Company, Inc., which is 100 percent owned by Registrant, and the remaining 1 percent is owned by Diebold Netherlands Holding Company, LLC (refer to 1 for ownership).
|
|
|
|
(29
|
)
|
99.99 percent of voting securities are owned by Diebold Latin America Holding Company, LLC, which is 100 percent owned by Registrant, while the remaining .01 percent are owned by Registrant.
|
|
|
|
(30
|
)
|
51 percent of voting securities are owned by Diebold Latin America Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(31
|
)
|
60 percent of voting securities are owned by Diebold Colombia, S.A. (refer to 14 for ownership) and 40 percent owned by Diebold Peru, S.r.L. (refer to 11 for ownership).
|
|
|
|
(32
|
)
|
99 percent of voting securities are owned by D&G Centroamerica, S. de R. L. (refer to 30 for ownership).
|
|
|
|
(33
|
)
|
99.85 percent of voting securities are owned by D&G Centroamerica, S. de R. L. (refer to 30 for ownership).
|
|
|
|
(34
|
)
|
99.99 percent of voting securities are owned by D&G Centroamerica, S. de R. L. (refer to 30 for ownership).
|
|
|
|
(35
|
)
|
99.99 percent of voting securities are owned by Procomp Industria Eletronica Ltda (refer to 24 for ownership), while the remaining .01 percent is owned by Diebold Brasil Ltda (refer to 29 for ownership).
|
|
|
|
(36
|
)
|
100 percent of voting securities are owned by Diebold ATM Cihazlari Sanayi Ve Ticaret A.S. (refer to 16 for ownership).
|
|
|
|
(37
|
)
|
99.98 percent of voting securities are owned by Diebold Self-Service Solutions Limited Liability Company (refer to 15 for ownership), while the remaining .02 percent is owned by Diebold Poland S.p. z.o.o. (refer to 5 for ownership).
|
|
|
|
(38
|
)
|
99.99 percent of voting securities are owned by Registrant, while the remaining .01 percent is owned by Diebold Holding Company, Inc., which is 100 percent owned by Registrant.
|
|
|
|
(39
|
)
|
100 percent of voting securities are owned by 1932780 Ontario Inc., which is 100 percent owned by The Diebold Company of Canada, Ltd., which is 100 percent owned by Diebold.
|
|
|
(40
|
)
|
100 percent of voting securities is owned by The Diebold Company of Canada, Ltd., which is 100 percent owned by Diebold.
|
|
|
|
(41
|
)
|
100 percent of voting securities are owned by Diebold Africa (Proprietary) Limited, which is 100 percent owned by Diebold Africa Investment Holdings (Proprietary) Limited, which is 100 percent owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Diebold.
|
|
|
|
(42
|
)
|
99.99 percent of voting securities are owned by Diebold Self-Service Solutions Limited Liability Company (refer to 15 for ownership), while the remaining .01 percent is owned by Diebold Switzerland Holding Company, LLC, which is 100 percent owned by Diebold.
|
|
|
|
(43
|
)
|
99.5 percent of voting securities are owned by Diebold, while the remaining 0.5 percent is owned by Diebold Netherlands Holding Company, LLC (refer to 1 for ownership).
|
|
|
|
(44
|
)
|
100 percent of voting securities are owned by Diebold (Barbados) Holdings 2 Corp., which is 100 percent owned by Diebold.
|
|
|
Signature
|
|
Date
|
|
|
|
/s/ Patrick W. Allender
|
February 21, 2016
|
|
Patrick W. Allender
|
|
|
|
|
|
/s/ Phillip R. Cox
|
February 11, 2016
|
|
Phillip R. Cox
|
|
|
|
|
|
/s/ Richard L. Crandall
|
February 10, 2016
|
|
Richard L. Crandall
|
|
|
|
|
|
/s/ Gale S. Fitzgerald
|
February 11, 2016
|
|
Gale S. Fitzgerald
|
|
|
|
|
|
/s/ Gary G. Greenfield
|
February 11, 2016
|
|
Gary G. Greenfield
|
|
|
|
|
|
/s/ Robert S. Prather, Jr.
|
February 11, 2016
|
|
Robert S. Prather, Jr.
|
|
|
|
|
|
/s/ Rajesh K. Soin
|
February 10, 2016
|
|
Rajesh K. Soin
|
|
|
|
|
|
/s/ Henry D.G. Wallace
|
February 11, 2016
|
|
Henry D.G. Wallace
|
|
|
|
|
|
/s/ Alan J. Weber
|
February 18, 2016
|
|
Alan J. Weber
|
|
1)
|
I have reviewed this annual report on Form 10-K of Diebold, Incorporated;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3)
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4)
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5)
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1)
|
I have reviewed this annual report on Form 10-K of Diebold, Incorporated;
|
2)
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3)
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4)
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5)
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
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1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
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