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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2014	Oct. 15, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	ALSN
Entity Registrant Name	ALLISON TRANSMISSION HOLDINGS INC
Entity Central Index Key	0001411207
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		177,527,712

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 208.1	$ 184.7
Accounts receivables - net of allowance for doubtful accounts of $0.4 and $0.4, respectively	240.0	175.1
Inventories	161.5	160.4
Deferred income taxes, net	103.8	58.1
Other current assets	29.5	28.6
Total Current Assets	742.9	606.9
Property, plant and equipment, net	526.7	563.4
Intangible assets, net	1,536.7	1,610.8
Goodwill	1,941.0	1,941.0
Deferred income taxes, net	1.0	1.1
Other non-current assets	75.9	89.4
TOTAL ASSETS	4,824.2	4,812.6
Current Liabilities
Accounts payable	182.9	150.4
Product warranty liability	23.2	37.4
Current portion of long-term debt	17.9	17.9
Deferred revenue	21.2	29.2
Other current liabilities	141.6	152.3
Total Current Liabilities	386.8	387.2
Product warranty liability	62.2	53.1
Deferred revenue	47.9	43.2
Long-term debt	2,572.0	2,660.4
Deferred income taxes	212.1	76.2
Other non-current liabilities	189.7	153.7
TOTAL LIABILITIES	3,470.7	3,373.8
Commitments and contingencies (see NOTE O)
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding
Paid in capital	1,618.1	1,631.8
Accumulated deficit	(239.1)	(173.8)
Accumulated other comprehensive loss, net of tax	(27.3)	(21.0)
TOTAL STOCKHOLDERS' EQUITY	1,353.5	1,438.8
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	4,824.2	4,812.6
Common Stock
STOCKHOLDERS' EQUITY
Common stock	$ 1.8	1.8
Non-voting Common Stock
STOCKHOLDERS' EQUITY
Common stock		$ 0.0

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Allowance for doubtful accounts receivables	$ 0.4	$ 0.4
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,880,000,000	1,880,000,000
Common stock, shares issued	177,524,277	183,375,436
Common stock, shares outstanding	177,524,277	183,375,436
Non-voting Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	0	1,185
Common stock, shares outstanding	0	1,185

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net sales	$ 553.3	$ 466.3	$ 1,583.0	$ 1,435.8
Cost of sales	294.0	260.2	862.7	805.3
Gross profit	259.3	206.1	720.3	630.5
Selling, general and administrative expenses	87.5	74.0	255.8	247.5
Engineering - research and development	24.5	20.9	70.2	72.7
Operating income	147.3	111.2	394.3	310.3
Interest income	0.3	0.2	0.7	0.6
Interest expense	(29.6)	(37.5)	(101.7)	(105.1)
Other expense, net	(1.7)	(1.5)	(3.0)	(7.2)
Income before income taxes	116.3	72.4	290.3	198.6
Income tax expense	(47.5)	(27.9)	(112.2)	(76.1)
Net income	$ 68.8	$ 44.5	$ 178.1	$ 122.5
Basic earnings per share attributable to common stockholders	$ 0.38	$ 0.24	$ 0.99	$ 0.66
Diluted earnings per share attributable to common stockholders	0.38	0.24	0.97	0.65
Dividends declared per common share	$ 0.12	$ 0.12	$ 0.36	$ 0.30
Comprehensive income, net of tax	$ 60.6	$ 47.0	$ 171.8	$ 115.9

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 178.1	$ 122.5
Add (deduct) items included in net income not using (providing) cash:
Deferred income taxes	105.2	77.8
Amortization of intangible assets	74.1	80.1
Depreciation of property, plant and equipment	71.0	74.1
Unrealized gain on derivatives	(12.8)	(22.2)
Excess tax benefit from stock-based compensation	(12.8)	(9.3)
Stock-based compensation	11.1	10.7
Amortization of deferred financing costs	6.2	8.4
Other	5.8	5.2
Changes in assets and liabilities:
Accounts receivable	(67.4)	(33.6)
Inventories	(3.7)	(10.0)
Accounts payable	33.0	31.0
Other assets and liabilities	28.2	(19.3)
Net cash provided by operating activities	416.0	315.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions of long-lived assets	(37.6)	(41.2)
Investments in technology-related initiatives	(5.8)	(6.3)
Collateral for interest rate derivatives	1.7	1.3
Proceeds from disposal of assets	0.3	0.4
Net cash used for investing activities	(41.4)	(45.8)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock	(249.8)	(99.5)
Dividend payments	(64.7)	(55.2)
Proceeds from exercise of stock options	34.6	33.5
Payments on long-term debt	(88.4)	(89.6)
Excess tax benefit from stock-based compensation	12.8	9.3
Taxes paid related to net share settlement of equity awards	(1.1)	(3.6)
Debt financing fees	(1.0)	(2.6)
Net cash used for financing activities	(357.6)	(207.7)
Effect of exchange rate changes on cash	6.4	10.2
Net increase in cash and cash equivalents	23.4	72.1
Cash and cash equivalents at beginning of period	184.7	80.2
Cash and cash equivalents at end of period	208.1	152.3
Supplemental disclosures:
Interest paid	103.3	112.9
Income taxes paid	$ 3.5	$ 3.5

OVERVIEW

9 Months Ended

Sep. 30, 2014

OVERVIEW

NOTE A. OVERVIEW

Overview

Allison Transmission Holdings, Inc. and its subsidiaries (the “Company” or “Allison”), design and manufacture commercial and defense fully-automatic transmissions.

The business was founded in 1915 and has been headquartered in Indianapolis, Indiana since inception. The Company has 13 different transmission product lines. Although approximately 77% of revenues were generated in North America in 2013, the Company has a global presence by serving customers in Europe, Asia, South America and Africa. The Company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations worldwide.

Since the introduction of the Company’s first fully-automatic transmission over 60 years ago, the Company’s products have gained acceptance in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (primarily energy, mining and construction) and defense vehicles (wheeled and tracked). The Company has developed over 100 different product models that are used in more than 2,500 different vehicle configurations, which are compatible with more than 500 combinations of engine brands, models and ratings. The Company also sells support equipment and Allison-branded replacement parts for the Company’s transmissions and remanufactured transmissions for use in the vehicle aftermarket.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2014 and 2013 have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair statement of the results for the periods presented. The condensed consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated.

These condensed consolidated financial statements present the financial position, results of operations and cash flows of the Company. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission (“SEC”) on February 24, 2014. Certain immaterial reclassifications have been made in the condensed consolidated financial statements of prior periods to conform to the current period presentation. These reclassifications have no impact on previously reported net income, total stockholders’ equity or cash flows. The interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Significant estimates include, but are not limited to, allowance for doubtful accounts, sales allowances, government price adjustments, fair market values and future cash flows associated with goodwill, indefinite life intangibles, long-lived asset impairment tests, useful lives for depreciation and amortization, warranty liability, determination of discount and other assumptions for pension and other postretirement benefit expense, income taxes and deferred tax valuation allowances, derivative valuation, and contingencies. The Company’s accounting policies involve the application of judgments and assumptions made by management that include inherent risks and uncertainties. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur.

Recently Issued Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The guidance requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that financial statements are available to be issued when applicable) and to provide related footnote disclosures. The guidance is effective prospectively for fiscal years beginning after December 15, 2016, but can be early-adopted. While the adoption of this guidance is not expected to have an effect on the Company’s consolidated financial statements, it could affect the disclosure applied under these circumstances in the future.

In May 2014, the FASB issued authoritative accounting guidance on a company’s accounting for revenue from contracts with customers. The guidance applies to all companies that enter into contracts with customers to transfer goods, service or nonfinancial assets. The guidance requires these companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires improved disclosures regarding the nature, timing, amount and uncertainty of revenue that is recognized. The guidance is effective prospectively for fiscal years beginning after December 15, 2016. Management is currently assessing the potential impact of the adoption of this guidance on the Company’s consolidated financial statements.

INVENTORIES

9 Months Ended

Sep. 30, 2014

INVENTORIES

NOTE C. INVENTORIES

Inventories consisted of the following components (dollars in millions):


	September 30, 2014		December 31, 2013
Purchased parts and raw materials	$	84.2	$	79.7
Work in progress		6.1		5.7
Service parts		44.9		45.8
Finished goods		26.3		29.2

Total inventories	$	161.5	$	160.4

Inventory components shipped to third parties, primarily cores, parts to re-manufacturers, and parts to contract manufacturers, in which the Company has an obligation to buy back, are included in purchased parts and raw materials, with an offsetting liability in Other current liabilities.

GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2014

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE D. GOODWILL AND OTHER INTANGIBLE ASSETS

As of September 30, 2014 and December 31, 2013, the carrying amount of the Company’s Goodwill was $1,941.0 million. The following presents a summary of other intangible assets (dollars in millions):


	September 30, 2014							December 31, 2013
	Intangible assets, gross		Accumulated amortization			Intangible assets, net		Intangible assets, gross		Accumulated amortization			Intangible assets, net
Other intangible assets:
Trade name	$	870.0	$	—		$	870.0	$	870.0	$	—		$	870.0
Customer relationships — defense		62.3		(27.0	)		35.3		62.3		(24.4	)		37.9
Customer relationships — commercial		831.8		(413.8	)		418.0		831.8		(374.9	)		456.9
Proprietary technology		476.3		(272.5	)		203.8		476.3		(243.9	)		232.4
Non-compete agreement		17.3		(12.4	)		4.9		17.3		(11.1	)		6.2
Patented technology — defense		28.2		(23.7	)		4.5		28.2		(21.2	)		7.0
Tooling rights		4.5		(4.3	)		0.2		4.5		(4.1	)		0.4
Patented technology — commercial		260.6		(260.6	)		—		260.6		(260.6	)		—

Total	$	2,551.0	$	(1,014.3	)	$	1,536.7	$	2,551.0	$	(940.2	)	$1,	610.8

As of September 30, 2014 and December 31, 2013, the net carrying value of our Goodwill and other intangibles was $3,477.7 million and $3,551.8 million, respectively.

Amortization expense related to other intangible assets for the next five years and thereafter is expected to be (dollars in millions):


	2015		2016		2017		2018		2019		Thereafter
Amortization expense	$	97.1	$	92.4	$	89.7	$	87.2	$	85.7	$	189.9

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2014

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE E. FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with the FASB’s authoritative accounting guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and utilizes the best available information that maximizes the use of observable inputs and minimizes the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The accounting guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy defined by the relevant guidance are as follows:

Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, listed equities and publicly traded bonds.

Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.

Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At each balance sheet date, the Company performs an analysis of all instruments subject to authoritative accounting guidance and includes, in Level 3, all of those whose fair value is based on significant unobservable inputs. As of September 30, 2014 and December 31, 2013, the Company did not have any Level 3 financial assets or liabilities.

The Company’s assets and liabilities that are measured at fair value include cash and cash equivalents, available-for-sale securities, derivative instruments, assets held in a rabbi trust and a deferred compensation obligation. The Company’s cash equivalents consist of short-term U.S. government backed securities. The Company’s available-for-sale securities consist of ordinary shares of Torotrak plc (“Torotrak”) associated with a license and exclusivity agreement with Torotrak. Torotrak’s listed shares are traded on the London Stock Exchange under the ticker symbol “TRK.” The Company’s derivative instruments consist of interest rate swaps, foreign currency forward contracts and commodity swaps. The Company’s assets held in the rabbi trust consist principally of publicly available mutual funds and target date retirement funds. The Company’s deferred compensation obligation is directly related to the fair value of assets held in the rabbi trust.

The Company’s valuation techniques used to calculate the fair value of cash and cash equivalents, available-for-sale securities, assets held in the rabbi trust and the deferred compensation obligation represent a market approach in active markets for identical assets that qualifies as Level 1 in the fair value hierarchy. The Company’s valuation techniques used to calculate the fair value of derivative instruments represent a market approach with observable inputs that qualify as Level 2 in the fair value hierarchy.

The foreign currency contracts consist of forward rate contracts which are intended to hedge exposure of transactions denominated in certain currencies and reduce the impact of currency price volatility on the Company’s financial results. The commodity contracts consist of forward rate contracts which are intended to hedge exposure of transactions involving purchases of component parts and energy to power our facilities, reducing the impact of commodity price volatility on the Company’s financial results.

For the fair value measurement of foreign currency derivatives, the Company uses forward foreign exchange rates received from the issuing financial institution. These rates are periodically corroborated by comparing to third-party broker quotes. The foreign currency hedges are accounted for within the authoritative accounting guidance set forth on accounting for derivative instruments and hedging activities and have been recorded at fair value based upon quoted market rates. The fair values are included in Other current and non-current assets and liabilities in the Condensed Consolidated Balance Sheets. The Company generally does not elect to apply hedge accounting for these foreign currency contracts, and as a result, unrealized fair value adjustments and realized gains and losses are recorded in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income during the period of change.

For the fair value measurement of commodity derivatives, the Company uses forward prices received from the issuing financial institution. These rates are periodically corroborated by comparing to third-party broker quotes. The commodity derivatives are accounted for within the authoritative accounting guidance set forth on accounting for derivative instruments and hedging activities and have been recorded at fair value based upon quoted market rates. The fair values are included in Other current and non-current assets and liabilities in the Condensed Consolidated Balance Sheets. The Company has either not qualified for or not elected hedge accounting treatment for these commodity contracts, and as a result, unrealized fair value adjustments and realized gains and losses are recorded in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income.

For the fair value measurement of interest rate derivatives, the Company uses valuations from the issuing financial institution. The Company corroborates the valuation through the use of third-party valuation services using a standard replacement valuation model. The floating-to-fixed interest rate swaps are based on the London Interbank Offered Rate (“LIBOR”) which is observable at commonly quoted intervals. The fair values are included in other current and non-current assets and liabilities in the Condensed Consolidated Balance Sheets. The Company has not qualified for hedge accounting treatment for the interest rate swaps and, as a result, fair value adjustments are charged directly to Interest expense in the Condensed Consolidated Statements of Comprehensive Income.

The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of September 30, 2014 and December 31, 2013 (dollars in millions):


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						TOTAL
	September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013
Cash and cash equivalents	$	208.1		$	184.7		$	—		$	—		$	208.1		$	184.7
Available-for-sale securities		9.7			8.2			—			—			9.7			8.2
Rabbi trust assets		2.8			1.3			—			—			2.8			1.3
Deferred compensation obligation		(2.8	)		(1.3	)		—			—			(2.8	)		(1.3	)
Derivative assets		—			—			0.8			1.6			0.8			1.6
Derivative liabilities		—			—			(7.8	)		(21.4	)		(7.8	)		(21.4	)

Total	$	217.8		$	192.9		$	(7.0	)	$	(19.8	)	$	210.8		$	173.1

Of the available Cash and cash equivalents, approximately $203.1 million and $179.7 million was deposited in operating accounts while approximately $5.0 million and $5.0 million was invested in U.S. government backed securities as of September 30, 2014 and December 31, 2013, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DEBT

9 Months Ended

Sep. 30, 2014

DEBT

NOTE F. DEBT

Long-term debt and maturities are as follows (dollars in millions):


	September 30, 2014		December 31, 2013
Long-term debt:
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017	$	348.4	$	423.5
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019		1,770.2		1,783.5
Senior Notes, fixed 7.125%, due 2019		471.3		471.3

Total long-term debt	$	2,589.9	$	2,678.3
Less: current maturities of long-term debt		17.9		17.9

Total long-term debt less current portion	$	2,572.0	$	2,660.4

As of September 30, 2014, the Company had $348.4 million of indebtedness associated with Allison Transmission, Inc.’s (“ATI”), the Company’s wholly-owned subsidiary, Senior Secured Credit Facility Term B-2 Loan due 2017 (“Term B-2 Loan”) and $1,770.2 million of indebtedness associated with ATI’s Senior Secured Credit Facility Term B-3 Loan due 2019 (“Term B-3 Loan”) (together the Term B-2 Loan, Term B-3 Loan and revolving credit facility defined as the “Senior Secured Credit Facility”). The Company also had indebtedness of $471.3 million of ATI’s 7.125% senior cash pay notes due May 2019 (“7.125% Senior Notes”).

The fair value of the Company’s long-term debt obligations as of September 30, 2014 was $2,588.5 million. The fair value is based on quoted Level 1 market prices of the Company’s debt as of September 30, 2014. It is not expected that the Company would be able to repurchase a significant amount of its debt at these levels. The difference between the fair value and carrying value of the long-term debt is driven primarily by trends in the financial markets.

Senior Secured Credit Facility

The Senior Secured Credit Facility is collateralized by a lien on substantially all assets of the Company including all of ATI’s capital stock and all of the capital stock or other equity interest held by the Company, ATI and each of the Company’s existing and future U.S. subsidiary guarantors (subject to certain limitations for equity interests of foreign subsidiaries and other exceptions set forth in the terms of the Senior Secured Credit Facility). In the second quarter of 2014, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance Term B-2 Loan. The interest rate margin applicable to such refinanced loan is at the Company’s option, either (a) 2.75% over the LIBOR or (b) 1.75% over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50%. The Company recorded $0.3 million of new deferred financing fees in the condensed consolidated financial statements. Interest on the Term B-3 Loan, as of September 30, 2014, is equal to the LIBOR (which may not be less than 1.00%) plus 2.75% based on the Company’s total leverage ratio. As of September 30, 2014, these rates were approximately 2.91% and 3.75% on the Term B-2 Loan and Term B-3 Loan, respectively, and the weighted average rate on the Senior Secured Credit Facility was approximately 3.61%. The Senior Secured Credit Facility requires minimum quarterly principal payments on the Term B-2 Loan and Term B-3 Loan as well as prepayments from certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events and from a percentage of excess cash flow, if applicable. Due to voluntary prepayments, the Company has fulfilled all Term B-2 Loan required quarterly payments through its maturity date of 2017. During the third quarter of 2014, the Company made a principal payment of $75.0 million on the Term B-2 Loan, resulting in a loss of $0.3 million associated with the write off of related deferred debt issuance costs. The minimum required quarterly principal payment on the Term B-3 Loan is $4.5 million and remains through its maturity date of 2019. As of September 30, 2014, there had been no payments required for certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events. The remaining principal balance on each loan is due upon maturity.

The Senior Secured Credit Facility also provides for revolving credit borrowings. In the first quarter of 2014, ATI increased the revolving commitments available under the revolving portion of the Senior Secured Credit Facility to $465.0 million, net of an allowance for up to $75.0 million in outstanding letters of credit commitments. The increase was treated as a modification of debt under GAAP, and thus the Company recorded $0.6 million of new deferred financing fees in the condensed consolidated financial statements. For the nine months ended September 30, 2014, the Company made one withdrawal and payment on the revolving credit facility as part of its debt management plans. The maximum amount outstanding at any time on the revolving credit facility was $40.0 million, and the entire balance was repaid within the quarter it was borrowed. As of September 30, 2014, the Company had $455.1 million available under the revolving credit facility, net of $9.9 million in letters of credit. Revolving credit borrowings bear interest at a variable base rate plus an applicable margin based on the Company’s total leverage ratio. As of September 30, 2014, this rate would have been between approximately 2.16% and 4.25%. In addition, there is an annual commitment fee, based on the Company’s total leverage ratio, which as of September 30, 2014, was equal to 0.375% of the average unused revolving credit borrowings available under the Senior Secured Credit Facility. Revolving credit borrowings are payable at the option of the Company throughout the term of the Senior Secured Credit Facility with the balance due in January 2019.

The revolving portion of the Senior Secured Credit Facility requires the Company to maintain a specified maximum total senior secured leverage ratio of 5.50x when revolving loan commitments remain outstanding at the end of a fiscal quarter. On March 12, 2014, however, the revolving lenders holding a majority of the revolving loan commitments permanently waived and agreed that no event of default would result from any non-compliance so long as there were no revolving loans outstanding as of the last day of any fiscal quarter. As of September 30, 2014, the Company had no revolving loans outstanding, however the Company would have been in compliance with the maximum total senior secured leverage ratio, achieving a 2.70x ratio. Additionally within the terms of the Senior Secured Credit Facility, a senior secured leverage ratio at or below 3.50x results in the elimination of excess cash flow payments on the Senior Secured Credit Facility for the applicable year. The Senior Secured Credit Facility also provides certain financial incentives based on our total leverage ratio. A total leverage ratio at or below 4.00x results in a 25 basis point reduction to the applicable margin on the revolving credit facility, and a total leverage ratio at or below 3.50x results in a 12.5 basis point reduction to the revolving credit facility commitment fee and an additional 25 basis point reduction to the applicable margin on the revolving credit facility. A total leverage ratio at or below 3.25x results in a 25 basis point reduction to the applicable margin on our Term B-3 Loan. These reductions would remain in effect as long as the Company achieves a total leverage ratio at or below the related threshold. As of September 30, 2014, the total leverage ratio was 3.37x.

In addition, the Senior Secured Credit Facility, among other things, includes customary restrictions (subject to certain exceptions) on the Company’s ability to incur certain indebtedness, grant certain liens, make certain investments or declare or pay certain dividends. As of September 30, 2014, the Company is in compliance with all covenants under the Senior Secured Credit Facility.

DERIVATIVES

9 Months Ended

Sep. 30, 2014

DERIVATIVES

NOTE G. DERIVATIVES

The Company is exposed to certain financial risk from volatility in interest rates, foreign exchange rates and commodity prices. The risk is managed through the use of financial derivative instruments including interest rate swaps, foreign currency forward contracts and commodity swaps. The Company’s current derivative instruments are used strictly as an economic hedge and not for speculative purposes. As necessary, the Company adjusts the values of the derivative instruments for counter-party or credit risk.

Interest Rate

The Company is subject to interest rate risk related to the Senior Secured Credit Facility and enters into interest rate swap contracts that are based on the LIBOR to manage a portion of this exposure. The Company has not elected hedge accounting treatment for these derivatives, and as a result, fair value adjustments are charged directly to Interest expense in the Condensed Consolidated Statements of Comprehensive Income. A summary of the Company’s interest rate derivatives as of September 30, 2014 and December 31, 2013 follows (dollars in millions):


	September 30, 2014					December 31, 2013
	Notional Amount		Fair Value			Notional Amount		Fair Value
3.75% Interest Rate Swap H, due August 2014	$	—	$	—		$	350.0	$	(7.2	)
3.77% Interest Rate Swap I, due August 2014		—		—			350.0		(7.2	)
2.96% Interest Rate Swap J, due August 2014		—		—			125.0		(2.0	)
3.05% Interest Rate Swap K, due August 2014		—		—			125.0		(2.0	)
3.44% Interest Rate Swap L, due August 2019*		75.0		(1.5	)		75.0		(0.4	)
3.43% Interest Rate Swap M, due August 2019*		100.0		(2.0	)		100.0		(0.4	)
3.37% Interest Rate Swap N, due August 2019*		75.0		(1.4	)		75.0		(0.2	)
3.19% Interest Rate Swap O, due August 2019*		75.0		(1.0	)		75.0		0.2
3.08% Interest Rate Swap P, due August 2019*		75.0		(0.7	)		75.0		0.4
2.99% Interest Rate Swap Q, due August 2019*		50.0		(0.4	)		50.0		0.4
2.98% Interest Rate Swap R, due August 2019*		50.0		(0.3	)		50.0		0.4
2.73% Interest Rate Swap S, due August 2019*		50.0		—			0.0		0.0
2.74% Interest Rate Swap T, due August 2019*		75.0		—			0.0		0.0
2.66% Interest Rate Swap U, due August 2019*		50.0		0.1			0.0		0.0
2.60% Interest Rate Swap V, due August 2019*		50.0		0.2			0.0		0.0

* includes LIBOR floor of 1.00%	$	725.0	$	(7.0	)	$	1,450.0	$	(18.0	)

In July 2014, the Company entered into two new interest rate swaps to hedge its variable interest rate exposure on the Senior Secured Credit Facility. Interest Rate Swap S has a notional amount of $50.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 2.73% and a LIBOR floor of 1.00% with no independent collateral requirement. Interest Rate Swap T has a notional amount of $75.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 2.74% and a LIBOR floor of 1.00% with no independent collateral requirement.

In August 2014, the Company entered into two new interest rate swaps to hedge its variable interest rate exposure on the Senior Secured Credit Facility. Interest Rate Swap U has a notional amount of $50.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 2.66% and a LIBOR floor of 1.00% with no independent collateral requirement. Interest Rate Swap V has a notional amount of $50.0 million and is effective from August 2016 to August 2019 at an all-in fixed rate of 2.60% and a LIBOR floor of 1.00% with no independent collateral requirement.

As of September 30, 2014, the Company did not have any interest rate derivatives subject to credit-risk or collateral requirement. As of December 31, 2013, certain of the Company’s interest rate derivatives contained credit-risk and collateral contingent features under which downgrades in the Company’s credit rating would have required the Company to increase its collateral. As of December 31, 2013, certain interest rate derivatives also contained provisions under which the Company was required to post additional collateral if the LIBOR interest rate curve reached certain levels.

As of September 30, 2014 and December 31, 2013, the Company had recorded cash collateral of $0.0 million and $1.7 million, respectively, in Other current assets in the Condensed Consolidated Balance Sheets, as the balances are subject to frequent change.

Currency Exchange

The Company’s business is subject to foreign exchange rate risk. As a result, the Company enters into various forward rate contracts that qualify as derivatives under the authoritative accounting guidance to manage certain of these exposures. Forward contracts are used to hedge forecasted transactions and known exposure of payables denominated in a foreign currency. The Company generally has not elected to apply hedge accounting under the authoritative accounting guidance and recorded the unrealized fair value adjustments and realized gains and losses associated with these contracts in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income during the period of change.

The following table summarizes the outstanding foreign currency forward contracts as of September 30, 2014 and December 31, 2013 (amounts in millions):


	September 30, 2014					December 31, 2013
	Notional Amount		Fair Value			Notional Amount		Fair Value
Japanese Yen (JPY)	¥	600.0	$	(0.2	)	¥	600.0	$	(0.3	)

			$	(0.2	)			$	(0.3	)

Commodity

The Company’s business is subject to commodity price risk, primarily with component suppliers. As a result, the Company enters into various commodity swap contracts that qualify as derivatives under the authoritative accounting guidance to manage certain of these exposures. Swap contracts are used to hedge forecasted transactions either of the commodity or of components containing the commodity. The Company has not qualified for hedge accounting treatment for these commodity contracts, and as a result, unrealized fair value adjustments and realized gains and losses associated with these contracts were charged directly to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income during the period of change.

The following table summarizes the outstanding commodity swaps as of September 30, 2014 and December 31, 2013 (dollars in millions):


	September 30, 2014					December 31, 2013
	Notional Amount		Quantity	Fair Value		Notional Amount		Quantity	Fair Value
Aluminum	$	14.8	7,500 metric tons	$	0.1	$	23.8	11,875 metric tons	$	(1.6	)
Natural Gas		0.2	40,000 MMBtu		—		0.3	90,000 MMBtu		0.0

				$	0.1				$	(1.6	)

The following tabular disclosures further describe the Company’s derivative instruments and their impact on the financial condition of the Company (dollars in millions):


	September 30, 2014				December 31, 2013
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current liabilities	$	(0.2	)	Other current liabilities	$	(0.3	)
Commodity contracts	Other current and non-current assets		0.4		Other current and non-current assets		0.1
	Other current liabilities		(0.3	)	Other current and non-current liabilities		(1.7	)
Interest rate contracts	Other non-current assets		0.4		Other non-current assets		1.5
	Other non-current liabilities		(7.3	)	Other current and non-current liabilities		(19.5	)

Total derivatives not designated as hedging instruments		$	(7.0	)		$	(19.9	)

The fair values of the derivatives are recorded between Other current and non-current assets and Other current and non-current liabilities as appropriate in the Condensed Consolidated Balance Sheets. As of September 30, 2014, the amount recorded to Other current liabilities for foreign currency contracts was ($0.2) million. The amount recorded to Other current and non-current assets for commodity contracts was $0.4 million and the amount recorded to Other current liabilities for commodity contracts was ($0.3) million. The amount recorded to Other non-current assets for interest rate contracts was $0.4 million and the amount recorded to Other non-current liabilities for interest rate contracts was ($7.3) million.

As of December 31, 2013, the amount recorded to Other current liabilities for foreign currency contracts was ($0.3) million. The amounts recorded to Other current and non-current assets for commodity contracts were $0.1 million and $0.0 million, respectively. The amounts recorded to Other current and non-current liabilities for commodity contracts were ($1.5) million and ($0.2) million, respectively. The amount recorded to Other non-current assets for interest rate contracts was $1.5 million. The amounts recorded to Other current and non-current liabilities for interest rate contracts were ($18.5) million and ($1.0) million, respectively.

The impact on the Company’s Condensed Consolidated Statements of Comprehensive Income related to foreign currency and commodity contracts can be found in NOTE J, and the following tabular disclosure describes the location and impact on the Company’s results of operations related to unrealized gain on interest rate derivatives (dollars in millions):


	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Interest expense	$	4.6	$	5.1	$	11.1	$	23.3

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
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-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

PRODUCT WARRANTY LIABILITIES

9 Months Ended

Sep. 30, 2014

PRODUCT WARRANTY LIABILITIES

NOTE H. PRODUCT WARRANTY LIABILITIES

Product warranty liability activities consist of the following (dollars in millions):


	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Beginning balance	$	86.7		$	105.6		$	90.5		$	109.7
Payments		(7.9	)		(10.1	)		(27.0	)		(30.4	)
Increase in liability (warranty issued during period)		7.2			7.5			20.0			20.8
Net adjustments to liability		(0.7	)		(11.4	)		1.5			(8.9	)
Accretion (for Predecessor liabilities)		0.1			0.1			0.4			0.5

Ending balance	$	85.4		$	91.7		$	85.4		$	91.7

As of September 30, 2014, the current and non-current liabilities were $23.2 million and $62.2 million, respectively. As of September 30, 2013, the current and non-current liabilities were $38.6 million and $53.1 million, respectively.

During the third quarter of 2013, the Company completed an analysis of its Dual Power Inverter Module (“DPIM”) extended coverage program and determined, that based on additional claims data and field information, the product warranty liability should be reduced by $8.2 million.

DEFERRED REVENUE

9 Months Ended

Sep. 30, 2014

DEFERRED REVENUE

NOTE I. DEFERRED REVENUE

As of September 30, 2014, the current and non-current liabilities related to deferred revenue for Extended Transmission Coverage (“ETC”) were $20.1 million and $47.9 million, respectively. As of September 30, 2013, the current and non-current liabilities related to deferred revenue for ETC were $21.3 million and $41.7 million, respectively.

Deferred revenue for ETC activity (dollars in millions):


	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Beginning balance	$	66.8		$	61.1		$	63.6		$	63.5
Increases		6.3			7.6			20.1			15.7
Revenue earned		(5.1	)		(5.7	)		(15.7	)		(16.2	)

Ending balance	$	68.0		$	63.0		$	68.0		$	63.0

During 2014 and 2013, the Company recorded deferred revenue for payments received from the U.S. government for certain tracked transmissions that were not shipped at the request of the U.S. government. Deferred revenue recorded in current liabilities related to unearned net sales for defense contracts as of September 30, 2014 and 2013 was approximately $1.1 million and $0.3 million, respectively.

OTHER EXPENSE, NET

9 Months Ended

Sep. 30, 2014

OTHER EXPENSE, NET

NOTE J. OTHER EXPENSE, NET

Other expense, net consists of the following (dollars in millions):


	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Loss on intercompany foreign exchange	$	(1.6	)	$	(2.3	)	$	(3.4	)	$	(2.3	)
Grant program income		0.7			0.9			2.1			4.1
Gain on negotiation of commercial agreement		2.0			—			2.0			—
Impairment loss on investments in technology-related initiatives		(2.0	)		—			(2.0	)		(2.5	)
Unrealized gain (loss) on derivative contracts (see NOTE G)		0.2			1.3			1.7			(1.1	)
Public offering fees and expenses		(0.3	)		(0.3	)		(1.4	)		(0.9	)
Realized loss on derivative contracts (see NOTE G)		(0.0	)		(0.7	)		(1.0	)		(2.3	)
Gain (loss) on foreign exchange		—			0.1			(0.5	)		(1.8	)
Loss on repayments and redemptions of long-term debt		(0.3	)		(0.5	)		(0.3	)		(0.5	)
Other		(0.4	)		—			(0.2	)		0.1

Total	$	(1.7	)	$	(1.5	)	$	(3.0	)	$	(7.2	)

For the three months ended September 30, 2014, the Company recorded a loss of $1.6 million resulting from intercompany financing transactions related to our India facility, all of which was from the revaluation of the remaining intercompany liability. For the nine months ended September 30, 2014, the Company recorded a loss of $3.4 million resulting from intercompany financing transactions related to our India facility, of which $0.2 million was foreign exchange loss on an intercompany payment and $3.2 million was from the revaluation of the remaining intercompany liability.

During the nine months ended September 30, 2014, the Company completed four secondary public offerings in September, June, April and February of 5,392,499, 40,250,000, 25,000,000, and 28,750,000 shares of its common stock held by investment funds affiliated with The Carlyle Group and Onex Corporation (collectively, the “Sponsors”) at public offering prices, less underwriting discounts and commissions, of $30.46, $29.95, $29.78 and $29.17 per share, respectively. In connection with certain of the offerings, the Company repurchased from the underwriters 5,000,000 shares in June 2014 and 3,428,179 shares in February 2014 at the prices paid by the underwriters and subsequently retired those shares. For the three and nine months ended September 30, 2014, the Company incurred $0.3 million and $1.4 million, respectively, of expenses related to these public offerings.

During the nine months ended September 30, 2013, the Company completed one secondary public offering in September of 23,805,000 shares of its common stock held by investment funds affiliated with the Sponsors at a public offering price, less underwriting discounts and commissions, of $21.175 per share. In connection with the offering, the Company repurchased from the underwriters 4,700,000 shares at the price paid by the underwriters and subsequently retired those shares. For the three and nine months ended September 30, 2013, the Company incurred $0.3 million and $0.9 million, respectively, of expenses related to this public offering and a proposed secondary offering in April 2013.

In 2009, the Company was notified by the U.S. Department of Energy that it was selected to receive matching funds from a grant program funded by the American Recovery and Reinvestment Act for the development of Hybrid manufacturing capacity in the U.S. (the “Grant Program”). All applicable costs associated with the Grant Program have been charged to Engineering — research and development while the Government’s matching reimbursement is recorded to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income. Since inception of the Grant Program, the Company has recorded $48.1 million of Grant Program income to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income.

For the three months ended September 30, 2014 and 2013, the Company recorded $0.0 million and $0.2 million, respectively, as a reduction of the basis of capital assets purchased under the Grant Program. For the nine months ended September 30, 2014 and 2013, the Company recorded $0.0 million and $2.9 million, respectively, as a reduction of the basis of capital assets purchased under the Grant Program. Under the Grant Program, the Company has acquired approximately $7.1 million of assets that have been placed in service, resulting in related depreciation of $0.0 million and $0.1 million for the three months ended September 30, 2014 and 2013, respectively, and $0.2 million and $0.2 million for the nine months ended September 30, 2014 and 2013, respectively.

OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2014

OTHER CURRENT LIABILITIES

NOTE K. OTHER CURRENT LIABILITIES

Other current liabilities consist of the following (dollars in millions):


	As of September 30, 2014		As of December 31, 2013
Payroll and related costs	$	48.2	$	37.6
Sales allowances		25.3		26.9
Accrued interest payable		13.9		11.2
Vendor buyback obligation		12.6		11.8
Defense price reduction reserve		12.0		26.8
Taxes payable		12.3		8.6
Research and development payable		1.7		—
Derivative liabilities		0.4		20.2
Other accruals		15.2		9.2

Total	$	141.6	$	152.3

EMPLOYEE BENEFIT PLANS

9 Months Ended

Sep. 30, 2014

EMPLOYEE BENEFIT PLANS

NOTE L. EMPLOYEE BENEFIT PLANS

Components of net periodic benefit cost consist of the following (dollars in millions):


	Pension Plans						Post-retirement Benefits
	Three months ended September 30,						Three months ended September 30,
	2014			2013			2014			2013
Net periodic benefit cost:
Service cost	$	3.3		$	4.1		$	0.5		$	0.8
Interest cost		1.3			1.0			1.5			1.5
Expected return on assets		(1.9	)		(1.6	)		—			—
Prior service cost		0.0			0.1			(0.9	)		(0.9	)
Loss (gain)		—			0.2			(0.2	)		—

Net periodic benefit cost	$	2.7		$	3.8		$	0.9		$	1.4


	Pension Plans						Post-retirement Benefits
	Nine months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Net periodic benefit cost:
Service cost	$	9.9		$	12.3		$	1.6		$	2.4
Interest cost		3.8			3.0			4.4			4.4
Expected return on assets		(5.7	)		(5.0	)		—			—
Prior service cost		0.0			0.1			(2.7	)		(2.7	)
Loss (gain)		—			0.5			(0.6	)		—

Net periodic benefit cost	$	8.0		$	10.9		$	2.7		$	4.1

INCOME TAXES

9 Months Ended

Sep. 30, 2014

INCOME TAXES

NOTE M. INCOME TAXES

For the three and nine months ended September 30, 2014, the Company recorded total tax expense of $47.5 million and $112.2 million, respectively. The effective tax rate for the three and nine months ended September 30, 2014 was 40.8% and 38.6%, respectively. For the three and nine months ended September 30, 2013, the Company recorded a total tax expense of $27.9 million and $76.1 million, respectively. The effective tax rate for the three and nine months ended September 30, 2013 was 38.5% and 38.3%, respectively.

The need to establish a valuation allowance against the deferred tax assets is assessed periodically based on a more-likely-than-not realization threshold, in accordance with authoritative accounting guidance. Appropriate consideration is given to all positive and negative evidence related to that realization. This assessment considers, among other matters, the nature, frequency and severity of losses, forecasts of future profitability, the duration of statutory carryforward periods, experience with tax attributes expiring unused, and tax planning alternatives. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

The Company has determined, based on the evaluation of both objective and subjective evidence available, that the domestic valuation allowance is not necessary and that it is more likely than not that the deferred tax assets are fully realizable. The Company has reached a sustained period of profitability and objectively measured positive evidence outweighed the negative evidence. The Company continues to provide for a valuation allowance on certain of its foreign deferred tax assets.

In accordance with the FASB’s authoritative guidance on accounting for uncertainty in income taxes, the Company recorded a liability for unrecognized tax benefits related to a 2010 Research & Development Credit as of September 30, 2014 and December 31, 2013. The accounting guidance prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For the year ended December 31, 2013, the return will remain subject to examination by the various taxing authorities for the duration of the applicable statute of limitations (generally three years from the later of the date of filing or the due date of the return).

ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Sep. 30, 2014

ACCUMULATED OTHER COMPREHENSIVE LOSS

NOTE N. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables reconcile changes in Accumulated other comprehensive loss (“AOCL”) by component (net of tax, dollars in millions):


	Three months ended
	Available-for- sale securities			Defined benefit pension items			Foreign currency items			Total
AOCL as of June 30, 2013	$	2.0		$	(37.7	)	$	(17.3	)	$	(53.0	)

Other comprehensive income before reclassifications		0.1			—			2.9			3.0
Amounts reclassified from AOCL		—			(0.7	)		—			(0.7	)
Income tax		—			0.2			—			0.2

Net current period other comprehensive income	$	0.1		$	(0.5	)	$	2.9		$	2.5

AOCL as of September 30, 2013	$	2.1		$	(38.2	)	$	(14.4	)	$	(50.5	)


AOCL as of June 30, 2014	$	0.6		$	(9.1	)	$	(10.6	)	$	(19.1	)

Other comprehensive loss before reclassifications		(1.5	)		—			(6.6	)		(8.1	)
Amounts reclassified from AOCL		—			(1.1	)		—			(1.1	)
Income tax		0.6			0.4			—			1.0

Net current period other comprehensive loss	$	(0.9	)	$	(0.7	)	$	(6.6	)	$	(8.2	)

AOCL as of September 30, 2014	$	(0.3	)	$	(9.8	)	$	(17.2	)	$	(27.3	)


	Nine months ended
	Available-for- sale securities			Defined benefit pension items			Foreign currency items			Total
AOCL as of December 31, 2012	$	2.2		$	(36.9	)	$	(9.2	)	$	(43.9	)

Other comprehensive loss before reclassifications		(0.3	)		—			(5.2	)		(5.5	)
Amounts reclassified from AOCL		—			(2.1	)		—			(2.1	)
Income tax		0.2			0.8			—			1.0

Net current period other comprehensive loss	$	(0.1	)	$	(1.3	)	$	(5.2	)	$	(6.6	)

AOCL as of September 30, 2013	$	2.1		$	(38.2	)	$	(14.4	)	$	(50.5	)


AOCL as of December 31, 2013	$	1.1		$	(7.9	)	$	(14.2	)	$	(21.0	)

Other comprehensive loss before reclassifications		(2.2	)		—			(3.0	)		(5.2	)
Amounts reclassified from AOCL		—			(3.1	)		—			(3.1	)
Income tax		0.8			1.2			—			2.0

Net current period other comprehensive loss	$	(1.4	)	$	(1.9	)	$	(3.0	)	$	(6.3	)

AOCL as of September 30, 2014	$	(0.3	)	$	(9.8	)	$	(17.2	)	$	(27.3	)

The following tables show the location in the Condensed Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions):


	Amounts reclassified from AOCL						Affected line item in the Condensed Consolidated Statements of Comprehensive Income
	Three months ended			Three months ended
AOCL Components	September 30, 2014			September 30, 2013
Amortization of defined benefit pension items:
Prior service cost	$	0.8		$	0.7		Cost of sales
		0.1			0.2		Selling, general and administrative
		0.0			—		Engineering – research and development
Actuarial loss		0.2			—		Cost of sales
		0.0			(0.1	)	Selling, general and administrative
		0.0			(0.1	)	Engineering – research and development

Total reclassifications, before tax	$	1.1		$	0.7		Income before income taxes
Income tax		(0.4	)		(0.2	)	Tax expense

Total reclassifications	$	0.7		$	0.5		Net of tax


	Amounts reclassified from AOCL						Affected line item in the Condensed Consolidated Statements of Comprehensive Income
	Nine months ended			Nine months ended
AOCL Components	September 30, 2014			September 30, 2013
Amortization of defined benefit pension items:
Prior service cost	$	2.4		$	2.1		Cost of sales
		0.2			0.6		Selling, general and administrative
		0.0			—		Engineering –research and development
Actuarial loss		0.5			(0.3	)	Cost of sales
		0.0			—		Selling, general and administrative
		0.0			(0.3	)	Engineering –research and development

Total reclassifications, before tax	$	3.1		$	2.1		Income before income taxes
Income tax		(1.2	)		(0.8	)	Tax expense

Total reclassifications	$	1.9		$	1.3		Net of tax

Prior service cost and actuarial loss are included in the computation of the Company’s net periodic benefit cost. Please see NOTE L for additional details.

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2014

COMMITMENTS AND CONTINGENCIES

NOTE O. COMMITMENTS AND CONTINGENCIES

Claims, Disputes, and Litigation

The Company is party to various legal actions and administrative proceedings and subject to various claims arising in the ordinary course of business. These proceedings primarily involve commercial claims, product liability claims, personal injury claims and workers’ compensation claims. The Company believes that the ultimate liability, if any, in excess of amounts already provided for in the condensed consolidated financial statements or covered by insurance on the disposition of these matters will not have a material adverse effect on the financial position, results of operations or cash flows of the Company.

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2014

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

NOTE P. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

As of September 30, 2014, investment funds affiliated with the Sponsors no longer own any shares of the Company’s outstanding common stock. Pursuant to an amended and restated stockholders agreement, a majority of the Board of Directors had previously been designated by the Sponsors; however, as a result of their no longer owning any shares of the Company’s common stock, the Sponsors no longer have the right to designate members of the Board of Directors.

Senior Notes Held by Executive Officers

As of September 30, 2014, Lawrence E. Dewey, our Chairman, President and Chief Executive Officer, and David S. Graziosi, our Executive Vice President, Chief Financial Officer and Treasurer, held approximately $100,000 and $450,000, respectively, in aggregate principal amount of the 7.125% Senior Notes.

Repurchase of Common Stock held by Sponsors

During the nine months ended September 30, 2014, the Company completed four secondary public offerings in September, June, April and February of 5,392,499, 40,250,000, 25,000,000, and 28,750,000 shares of its common stock held by investment funds affiliated with the Sponsors at public offering prices, less underwriting discounts and commissions, of $30.46, $29.95, $29.78 and $29.17 per share, respectively. In connection with certain of the offerings, the Company repurchased from the underwriters 5,000,000 shares in June 2014 and 3,428,179 shares in February 2014 at the prices paid by the underwriters and subsequently retired those shares.

During the nine months ended September 30, 2013, the Company completed a secondary offering of 23,805,000 shares of its common stock held by investment funds affiliated with the Sponsors to the underwriters in the public offering at the public offering price, less the underwriting discounts and commissions, or $21.175 per share. The Company received no proceeds from the sale. In connection with the offering, the Company repurchased from the underwriters 4,700,000 shares of the 23,805,000 shares at the price paid by the underwriters and subsequently retired those shares.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE

NOTE Q. EARNINGS PER SHARE

The Company presents both basic and diluted earnings per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted EPS is calculated by dividing net income by the weighted average number of common shares and common equivalent shares outstanding during the reporting period that are calculated using the treasury stock method for stock-based awards. The treasury stock method assumes that the Company uses the proceeds from the exercise of awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the grantee will pay in the future, compensation cost for future service that the Company has not yet recognized and any tax benefits that would be credited to additional paid-in-capital when the award generates a tax deduction. If there would be a shortfall resulting in a charge to additional paid-in-capital, such an amount would be a reduction of the proceeds to the extent of the gains. The diluted weighted-average common shares outstanding exclude the anti-dilutive effect of certain stock options since such options had an exercise price in excess of the monthly average market value of our common stock. For the three months ended September 30, 2014, 0.4 million of outstanding stock options were not included in the diluted EPS computation because they were anti-dilutive.

The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data):


	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Net income	$	68.8	$	44.5	$	178.1	$	122.5

Weighted average shares of common stock outstanding		178.8		184.4		179.9		185.0
Dilutive effect stock-based awards		2.1		3.6		2.9		3.6

Diluted weighted average shares of common stock outstanding		180.9		188.0		182.8		188.6

Basic earnings per share attributable to common stockholders	$	0.38	$	0.24	$	0.99	$	0.66

Diluted earnings per share attributable to common stockholders	$	0.38	$	0.24	$	0.97	$	0.65

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2014
Basis of Presentation and Principles of Consolidation	*Basis of Presentation and Principles of Consolidation* The condensed consolidated financial statements as of and for the three and nine months ended September 30, 2014 and 2013 have been prepared in accordance with accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The information herein reflects all normal recurring material adjustments, which are, in the opinion of management, necessary for the fair statement of the results for the periods presented. The condensed consolidated financial statements herein consist of all wholly-owned domestic and foreign subsidiaries with all significant intercompany transactions eliminated. These condensed consolidated financial statements present the financial position, results of operations and cash flows of the Company. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission (“SEC”) on February 24, 2014. Certain immaterial reclassifications have been made in the condensed consolidated financial statements of prior periods to conform to the current period presentation. These reclassifications have no impact on previously reported net income, total stockholders’ equity or cash flows. The interim period financial results for the three and nine month periods presented are not necessarily indicative of results to be expected for any other interim period or for the entire year.
Use of Estimates	*Use of Estimates* The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Significant estimates include, but are not limited to, allowance for doubtful accounts, sales allowances, government price adjustments, fair market values and future cash flows associated with goodwill, indefinite life intangibles, long-lived asset impairment tests, useful lives for depreciation and amortization, warranty liability, determination of discount and other assumptions for pension and other postretirement benefit expense, income taxes and deferred tax valuation allowances, derivative valuation, and contingencies. The Company’s accounting policies involve the application of judgments and assumptions made by management that include inherent risks and uncertainties. Actual results could differ materially from these estimates. Changes in estimates are recorded in results of operations in the period that the events or circumstances giving rise to such changes occur.
Recently Issued Accounting Pronouncements	*Recently Issued Accounting Pronouncements* In August 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. The guidance requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that financial statements are available to be issued when applicable) and to provide related footnote disclosures. The guidance is effective prospectively for fiscal years beginning after December 15, 2016, but can be early-adopted. While the adoption of this guidance is not expected to have an effect on the Company’s consolidated financial statements, it could affect the disclosure applied under these circumstances in the future. In May 2014, the FASB issued authoritative accounting guidance on a company’s accounting for revenue from contracts with customers. The guidance applies to all companies that enter into contracts with customers to transfer goods, service or nonfinancial assets. The guidance requires these companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires improved disclosures regarding the nature, timing, amount and uncertainty of revenue that is recognized. The guidance is effective prospectively for fiscal years beginning after December 15, 2016. Management is currently assessing the potential impact of the adoption of this guidance on the Company’s consolidated financial statements.

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2014

Components of Inventories

Inventories consisted of the following components (dollars in millions):


	September 30, 2014		December 31, 2013
Purchased parts and raw materials	$	84.2	$	79.7
Work in progress		6.1		5.7
Service parts		44.9		45.8
Finished goods		26.3		29.2

Total inventories	$	161.5	$	160.4

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Other Intangible Assets

The following presents a summary of other intangible assets (dollars in millions):


	September 30, 2014							December 31, 2013
	Intangible assets, gross		Accumulated amortization			Intangible assets, net		Intangible assets, gross		Accumulated amortization			Intangible assets, net
Other intangible assets:
Trade name	$	870.0	$	—		$	870.0	$	870.0	$	—		$	870.0
Customer relationships — defense		62.3		(27.0	)		35.3		62.3		(24.4	)		37.9
Customer relationships — commercial		831.8		(413.8	)		418.0		831.8		(374.9	)		456.9
Proprietary technology		476.3		(272.5	)		203.8		476.3		(243.9	)		232.4
Non-compete agreement		17.3		(12.4	)		4.9		17.3		(11.1	)		6.2
Patented technology — defense		28.2		(23.7	)		4.5		28.2		(21.2	)		7.0
Tooling rights		4.5		(4.3	)		0.2		4.5		(4.1	)		0.4
Patented technology — commercial		260.6		(260.6	)		—		260.6		(260.6	)		—

Total	$	2,551.0	$	(1,014.3	)	$	1,536.7	$	2,551.0	$	(940.2	)	$1,	610.8

Amortization Expense Related to Other Intangible Assets for Next Five Years and Thereafter

Amortization expense related to other intangible assets for the next five years and thereafter is expected to be (dollars in millions):


	2015		2016		2017		2018		2019		Thereafter
Amortization expense	$	97.1	$	92.4	$	89.7	$	87.2	$	85.7	$	189.9

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Fair Value of Financial Assets and (Liabilities)

The following table summarizes the fair value of the Company’s financial assets and (liabilities) as of September 30, 2014 and December 31, 2013 (dollars in millions):


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						TOTAL
	September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013			September 30, 2014			December 31, 2013
Cash and cash equivalents	$	208.1		$	184.7		$	—		$	—		$	208.1		$	184.7
Available-for-sale securities		9.7			8.2			—			—			9.7			8.2
Rabbi trust assets		2.8			1.3			—			—			2.8			1.3
Deferred compensation obligation		(2.8	)		(1.3	)		—			—			(2.8	)		(1.3	)
Derivative assets		—			—			0.8			1.6			0.8			1.6
Derivative liabilities		—			—			(7.8	)		(21.4	)		(7.8	)		(21.4	)

Total	$	217.8		$	192.9		$	(7.0	)	$	(19.8	)	$	210.8		$	173.1

DEBT (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Long-Term Debt and Maturities

Long-term debt and maturities are as follows (dollars in millions):


	September 30, 2014		December 31, 2013
Long-term debt:
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017	$	348.4	$	423.5
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019		1,770.2		1,783.5
Senior Notes, fixed 7.125%, due 2019		471.3		471.3

Total long-term debt	$	2,589.9	$	2,678.3
Less: current maturities of long-term debt		17.9		17.9

Total long-term debt less current portion	$	2,572.0	$	2,660.4

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Topic 505
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Company's Interest Rate Derivatives

A summary of the Company’s interest rate derivatives as of September 30, 2014 and December 31, 2013 follows (dollars in millions):


	September 30, 2014					December 31, 2013
	Notional Amount		Fair Value			Notional Amount		Fair Value
3.75% Interest Rate Swap H, due August 2014	$	—	$	—		$	350.0	$	(7.2	)
3.77% Interest Rate Swap I, due August 2014		—		—			350.0		(7.2	)
2.96% Interest Rate Swap J, due August 2014		—		—			125.0		(2.0	)
3.05% Interest Rate Swap K, due August 2014		—		—			125.0		(2.0	)
3.44% Interest Rate Swap L, due August 2019*		75.0		(1.5	)		75.0		(0.4	)
3.43% Interest Rate Swap M, due August 2019*		100.0		(2.0	)		100.0		(0.4	)
3.37% Interest Rate Swap N, due August 2019*		75.0		(1.4	)		75.0		(0.2	)
3.19% Interest Rate Swap O, due August 2019*		75.0		(1.0	)		75.0		0.2
3.08% Interest Rate Swap P, due August 2019*		75.0		(0.7	)		75.0		0.4
2.99% Interest Rate Swap Q, due August 2019*		50.0		(0.4	)		50.0		0.4
2.98% Interest Rate Swap R, due August 2019*		50.0		(0.3	)		50.0		0.4
2.73% Interest Rate Swap S, due August 2019*		50.0		—			0.0		0.0
2.74% Interest Rate Swap T, due August 2019*		75.0		—			0.0		0.0
2.66% Interest Rate Swap U, due August 2019*		50.0		0.1			0.0		0.0
2.60% Interest Rate Swap V, due August 2019*		50.0		0.2			0.0		0.0

* includes LIBOR floor of 1.00%	$	725.0	$	(7.0	)	$	1,450.0	$	(18.0	)

Derivative Instruments and their Impact on the Financial Condition

The following tabular disclosures further describe the Company’s derivative instruments and their impact on the financial condition of the Company (dollars in millions):


	September 30, 2014				December 31, 2013
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current liabilities	$	(0.2	)	Other current liabilities	$	(0.3	)
Commodity contracts	Other current and non-current assets		0.4		Other current and non-current assets		0.1
	Other current liabilities		(0.3	)	Other current and non-current liabilities		(1.7	)
Interest rate contracts	Other non-current assets		0.4		Other non-current assets		1.5
	Other non-current liabilities		(7.3	)	Other current and non-current liabilities		(19.5	)

Total derivatives not designated as hedging instruments		$	(7.0	)		$	(19.9	)

Interest Rate Derivative Instruments and their Impact on the Results of Operations


	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Interest expense	$	4.6	$	5.1	$	11.1	$	23.3

Foreign Currency Forward Contract

Notional Amount and Fair Value of Derivatives

The following table summarizes the outstanding foreign currency forward contracts as of September 30, 2014 and December 31, 2013 (amounts in millions):


	September 30, 2014					December 31, 2013
	Notional Amount		Fair Value			Notional Amount		Fair Value
Japanese Yen (JPY)	¥	600.0	$	(0.2	)	¥	600.0	$	(0.3	)

			$	(0.2	)			$	(0.3	)

Commodity contracts

Notional Amount and Fair Value of Derivatives

The following table summarizes the outstanding commodity swaps as of September 30, 2014 and December 31, 2013 (dollars in millions):


	September 30, 2014					December 31, 2013
	Notional Amount		Quantity	Fair Value		Notional Amount		Quantity	Fair Value
Aluminum	$	14.8	7,500 metric tons	$	0.1	$	23.8	11,875 metric tons	$	(1.6	)
Natural Gas		0.2	40,000 MMBtu		—		0.3	90,000 MMBtu		0.0

				$	0.1				$	(1.6	)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

PRODUCT WARRANTY LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2014

Product Warranty Liability Activities

Product warranty liability activities consist of the following (dollars in millions):


	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Beginning balance	$	86.7		$	105.6		$	90.5		$	109.7
Payments		(7.9	)		(10.1	)		(27.0	)		(30.4	)
Increase in liability (warranty issued during period)		7.2			7.5			20.0			20.8
Net adjustments to liability		(0.7	)		(11.4	)		1.5			(8.9	)
Accretion (for Predecessor liabilities)		0.1			0.1			0.4			0.5

Ending balance	$	85.4		$	91.7		$	85.4		$	91.7

DEFERRED REVENUE (Tables)

9 Months Ended

Sep. 30, 2014

Deferred Revenue for Extended Transmission Coverage Activity

Deferred revenue for ETC activity (dollars in millions):


	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Beginning balance	$	66.8		$	61.1		$	63.6		$	63.5
Increases		6.3			7.6			20.1			15.7
Revenue earned		(5.1	)		(5.7	)		(15.7	)		(16.2	)

Ending balance	$	68.0		$	63.0		$	68.0		$	63.0

OTHER EXPENSE, NET (Tables)

9 Months Ended

Sep. 30, 2014

Computation of Other Expense, Net

Other expense, net consists of the following (dollars in millions):


	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Loss on intercompany foreign exchange	$	(1.6	)	$	(2.3	)	$	(3.4	)	$	(2.3	)
Grant program income		0.7			0.9			2.1			4.1
Gain on negotiation of commercial agreement		2.0			—			2.0			—
Impairment loss on investments in technology-related initiatives		(2.0	)		—			(2.0	)		(2.5	)
Unrealized gain (loss) on derivative contracts (see NOTE G)		0.2			1.3			1.7			(1.1	)
Public offering fees and expenses		(0.3	)		(0.3	)		(1.4	)		(0.9	)
Realized loss on derivative contracts (see NOTE G)		(0.0	)		(0.7	)		(1.0	)		(2.3	)
Gain (loss) on foreign exchange		—			0.1			(0.5	)		(1.8	)
Loss on repayments and redemptions of long-term debt		(0.3	)		(0.5	)		(0.3	)		(0.5	)
Other		(0.4	)		—			(0.2	)		0.1

Total	$	(1.7	)	$	(1.5	)	$	(3.0	)	$	(7.2	)

OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Other Current Liabilities

Other current liabilities consist of the following (dollars in millions):


	As of September 30, 2014		As of December 31, 2013
Payroll and related costs	$	48.2	$	37.6
Sales allowances		25.3		26.9
Accrued interest payable		13.9		11.2
Vendor buyback obligation		12.6		11.8
Defense price reduction reserve		12.0		26.8
Taxes payable		12.3		8.6
Research and development payable		1.7		—
Derivative liabilities		0.4		20.2
Other accruals		15.2		9.2

Total	$	141.6	$	152.3

EMPLOYEE BENEFIT PLANS (Tables)

9 Months Ended

Sep. 30, 2014

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost consist of the following (dollars in millions):


	Pension Plans						Post-retirement Benefits
	Three months ended September 30,						Three months ended September 30,
	2014			2013			2014			2013
Net periodic benefit cost:
Service cost	$	3.3		$	4.1		$	0.5		$	0.8
Interest cost		1.3			1.0			1.5			1.5
Expected return on assets		(1.9	)		(1.6	)		—			—
Prior service cost		0.0			0.1			(0.9	)		(0.9	)
Loss (gain)		—			0.2			(0.2	)		—

Net periodic benefit cost	$	2.7		$	3.8		$	0.9		$	1.4


	Pension Plans						Post-retirement Benefits
	Nine months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Net periodic benefit cost:
Service cost	$	9.9		$	12.3		$	1.6		$	2.4
Interest cost		3.8			3.0			4.4			4.4
Expected return on assets		(5.7	)		(5.0	)		—			—
Prior service cost		0.0			0.1			(2.7	)		(2.7	)
Loss (gain)		—			0.5			(0.6	)		—

Net periodic benefit cost	$	8.0		$	10.9		$	2.7		$	4.1

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2014

Changes in Accumulated Other Comprehensive Loss by Component

The following tables reconcile changes in Accumulated other comprehensive loss (“AOCL”) by component (net of tax, dollars in millions):


	Three months ended
	Available-for- sale securities			Defined benefit pension items			Foreign currency items			Total
AOCL as of June 30, 2013	$	2.0		$	(37.7	)	$	(17.3	)	$	(53.0	)

Other comprehensive income before reclassifications		0.1			—			2.9			3.0
Amounts reclassified from AOCL		—			(0.7	)		—			(0.7	)
Income tax		—			0.2			—			0.2

Net current period other comprehensive income	$	0.1		$	(0.5	)	$	2.9		$	2.5

AOCL as of September 30, 2013	$	2.1		$	(38.2	)	$	(14.4	)	$	(50.5	)


AOCL as of June 30, 2014	$	0.6		$	(9.1	)	$	(10.6	)	$	(19.1	)

Other comprehensive loss before reclassifications		(1.5	)		—			(6.6	)		(8.1	)
Amounts reclassified from AOCL		—			(1.1	)		—			(1.1	)
Income tax		0.6			0.4			—			1.0

Net current period other comprehensive loss	$	(0.9	)	$	(0.7	)	$	(6.6	)	$	(8.2	)

AOCL as of September 30, 2014	$	(0.3	)	$	(9.8	)	$	(17.2	)	$	(27.3	)


	Nine months ended
	Available-for- sale securities			Defined benefit pension items			Foreign currency items			Total
AOCL as of December 31, 2012	$	2.2		$	(36.9	)	$	(9.2	)	$	(43.9	)

Other comprehensive loss before reclassifications		(0.3	)		—			(5.2	)		(5.5	)
Amounts reclassified from AOCL		—			(2.1	)		—			(2.1	)
Income tax		0.2			0.8			—			1.0

Net current period other comprehensive loss	$	(0.1	)	$	(1.3	)	$	(5.2	)	$	(6.6	)

AOCL as of September 30, 2013	$	2.1		$	(38.2	)	$	(14.4	)	$	(50.5	)


AOCL as of December 31, 2013	$	1.1		$	(7.9	)	$	(14.2	)	$	(21.0	)

Other comprehensive loss before reclassifications		(2.2	)		—			(3.0	)		(5.2	)
Amounts reclassified from AOCL		—			(3.1	)		—			(3.1	)
Income tax		0.8			1.2			—			2.0

Net current period other comprehensive loss	$	(1.4	)	$	(1.9	)	$	(3.0	)	$	(6.3	)

AOCL as of September 30, 2014	$	(0.3	)	$	(9.8	)	$	(17.2	)	$	(27.3	)

Condensed Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL

The following tables show the location in the Condensed Consolidated Statements of Comprehensive Income affected by reclassifications from AOCL (dollars in millions):


	Amounts reclassified from AOCL						Affected line item in the Condensed Consolidated Statements of Comprehensive Income
	Three months ended			Three months ended
AOCL Components	September 30, 2014			September 30, 2013
Amortization of defined benefit pension items:
Prior service cost	$	0.8		$	0.7		Cost of sales
		0.1			0.2		Selling, general and administrative
		0.0			—		Engineering – research and development
Actuarial loss		0.2			—		Cost of sales
		0.0			(0.1	)	Selling, general and administrative
		0.0			(0.1	)	Engineering – research and development

Total reclassifications, before tax	$	1.1		$	0.7		Income before income taxes
Income tax		(0.4	)		(0.2	)	Tax expense

Total reclassifications	$	0.7		$	0.5		Net of tax


	Amounts reclassified from AOCL						Affected line item in the Condensed Consolidated Statements of Comprehensive Income
	Nine months ended			Nine months ended
AOCL Components	September 30, 2014			September 30, 2013
Amortization of defined benefit pension items:
Prior service cost	$	2.4		$	2.1		Cost of sales
		0.2			0.6		Selling, general and administrative
		0.0			—		Engineering –research and development
Actuarial loss		0.5			(0.3	)	Cost of sales
		0.0			—		Selling, general and administrative
		0.0			(0.3	)	Engineering –research and development

Total reclassifications, before tax	$	3.1		$	2.1		Income before income taxes
Income tax		(1.2	)		(0.8	)	Tax expense

Total reclassifications	$	1.9		$	1.3		Net of tax

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2014

Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS

The following table reconciles the numerators and denominators used to calculate basic EPS and diluted EPS (in millions, except per share data):


	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Net income	$	68.8	$	44.5	$	178.1	$	122.5

Weighted average shares of common stock outstanding		178.8		184.4		179.9		185.0
Dilutive effect stock-based awards		2.1		3.6		2.9		3.6

Diluted weighted average shares of common stock outstanding		180.9		188.0		182.8		188.6

Basic earnings per share attributable to common stockholders	$	0.38	$	0.24	$	0.99	$	0.66

Diluted earnings per share attributable to common stockholders	$	0.38	$	0.24	$	0.97	$	0.65

Overview - Additional Information (Detail)	9 Months Ended	12 Months Ended
Overview - Additional Information (Detail)	Sep. 30, 2014 Vehicle Customer Product Brand	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Transmission product lines	13
Worldwide independent distributor and dealer locations \| Customer	1,400
Product models	100
Vehicle configurations \| Vehicle	2,500
Combinations of engine brands, models and ratings \| Brand	500
Year of introduction of Company's automatic products	60 years
Revenues \| North America
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Concentration of risk, percentage		77.00%

Components of Inventories (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Inventory [Line Items]
Purchased parts and raw materials	$ 84.2	$ 79.7
Work in progress	6.1	5.7
Service parts	44.9	45.8
Finished goods	26.3	29.2
Total inventories	$ 161.5	$ 160.4

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Goodwill [Line Items]
Goodwill	$ 1,941.0	$ 1,941.0
Net carrying value of Goodwill and other intangible assets	$ 3,477.7	$ 3,551.8

Summary of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Line Items]
Trade name	$ 870.0	$ 870.0
Intangible assets, gross	2,551.0	2,551.0
Accumulated amortization	(1,014.3)	(940.2)
Intangible assets, net	1,536.7	1,610.8
Customer relationships - defense
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	62.3	62.3
Accumulated amortization	(27.0)	(24.4)
Intangible assets, net	35.3	37.9
Customer relationships - commercial
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	831.8	831.8
Accumulated amortization	(413.8)	(374.9)
Intangible assets, net	418.0	456.9
Proprietary technology
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	476.3	476.3
Accumulated amortization	(272.5)	(243.9)
Intangible assets, net	203.8	232.4
Non-compete agreement
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	17.3	17.3
Accumulated amortization	(12.4)	(11.1)
Intangible assets, net	4.9	6.2
Patented technology - defense
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	28.2	28.2
Accumulated amortization	(23.7)	(21.2)
Intangible assets, net	4.5	7.0
Tooling rights
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	4.5	4.5
Accumulated amortization	(4.3)	(4.1)
Intangible assets, net	0.2	0.4
Patented technology - commercial
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	260.6	260.6
Accumulated amortization	$ (260.6)	$ (260.6)

Expected Amortization Expense Related to Other Intangible Assets (Detail) $ in Millions	Sep. 30, 2014 USD ($)
Finite-Lived Intangible Assets
2015	$ 97.1
2016	92.4
2017	89.7
2018	87.2
2019	85.7
Thereafter	$ 189.9

Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 208.1	$ 184.7
Available-for-sale securities	9.7	8.2
Rabbi trust assets	2.8	1.3
Deferred compensation obligation	(2.8)	(1.3)
Derivative assets	0.8	1.6
Derivative liabilities	(7.8)	(21.4)
Total	210.8	173.1
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	208.1	184.7
Available-for-sale securities	9.7	8.2
Rabbi trust assets	2.8	1.3
Deferred compensation obligation	(2.8)	(1.3)
Total	217.8	192.9
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0.8	1.6
Derivative liabilities	(7.8)	(21.4)
Total	$ (7.0)	$ (19.8)

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deposited in operating accounts	$ 203.1	$ 179.7
Investment in U.S. government backed securities	$ 5.0	$ 5.0

Long Term Debt and Maturities (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total long-term debt	$ 2,589.9	$ 2,678.3
Less: current maturities of long-term debt	17.9	17.9
Total long-term debt less current portion	2,572.0	2,660.4
Total long-term debt	2,589.9	2,678.3
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017
Debt Instrument [Line Items]
Total long-term debt	348.4	423.5
Total long-term debt	348.4	423.5
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019
Debt Instrument [Line Items]
Total long-term debt	1,770.2	1,783.5
Total long-term debt	1,770.2	1,783.5
Senior Notes, fixed 7.125%, due 2019
Debt Instrument [Line Items]
Total long-term debt	471.3	471.3
Total long-term debt	$ 471.3	$ 471.3

Long Term Debt and Maturities (Parenthetical) (Detail)	9 Months Ended
Long Term Debt and Maturities (Parenthetical) (Detail)	Sep. 30, 2014
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017
Debt Instrument [Line Items]
Debt instrument, due date	2017
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019
Debt Instrument [Line Items]
Debt instrument, due date	2019
Senior Notes, fixed 7.125%, due 2019
Debt Instrument [Line Items]
Interest rate of Senior Notes	7.125%
Debt instrument, due date	2019

Debt - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Debt Instrument [Line Items]
Total long-term debt	$ 2,589.9				$ 2,589.9		$ 2,678.3
Fair value of long-term debt obligations	2,588.5				2,588.5
Deferred financing fees					6.2	$ 8.4
Long-term debt repayment					88.4	89.6
Losses associated with deferred debt issuance costs on principal payments	$ 0.3			$ 0.5	$ 0.3	$ 0.5
Total leverage ratio	337.00%				337.00%
Line of Credit
Debt Instrument [Line Items]
Weighted average rate on the Senior Secured Credit Facility	3.61%				3.61%
Revolving Credit Facility
Debt Instrument [Line Items]
Deferred financing fees			$ 0.6
Revolving credit borrowings			465.0
Maximum amount of letters of credit commitments available under the revolving credit facility			$ 75.0
Maximum amount outstanding at any time on the revolving credit facility					$ 40.0
Available revolving credit facility	$ 455.1				455.1
Letters of Credit	$ 9.9				$ 9.9
Line of Credit Facility, commitment fee percentage					0.375%
Maturity date of revolving credit borrowings					2019-01
Required senior secured leverage ratio	550.00%				550.00%
Achieved senior secured leverage ratio	270.00%				270.00%
Minimum senior secured leverage ratio	350.00%				350.00%
Basis point reduction to applicable margin, resulting from total leverage ratio below minimum					0.25%
Basis point reduction to commitment fee, resulting from total leverage ratio below minimum					0.125%
Revolving Credit Facility \| Minimum
Debt Instrument [Line Items]
Revolving credit borrowings, interest rate	2.16%				2.16%
Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Revolving credit borrowings, interest rate	4.25%				4.25%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017
Debt Instrument [Line Items]
Total long-term debt	$ 348.4				$ 348.4		423.5
Variable interest rate, description					The interest rate margin applicable to such refinanced loan is at the Company's option, either (a) 2.75% over the LIBOR or (b) 1.75% over the greater of the prime lending rate provided by the British Banking Association or the federal funds effective rate published by the Federal Reserve Bank of New York plus 0.50%.
Deferred financing fees		$ 0.3
Total interest rate for term loan	2.91%				2.91%
Debt instrument, due date					2017
Long-term debt repayment	$ 75.0
Losses associated with deferred debt issuance costs on principal payments	0.3
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| LIBOR
Debt Instrument [Line Items]
Applicable margin over base rate		2.75%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Prime Rate or Federal Funds Rate
Debt Instrument [Line Items]
Applicable margin over base rate		1.75%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Federal Funds Rate
Debt Instrument [Line Items]
Applicable margin over base rate		0.50%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019
Debt Instrument [Line Items]
Total long-term debt	$ 1,770.2				$ 1,770.2		1,783.5
Variable interest rate, description					Interest on the Term B-3 Loan, as of September 30, 2014, is equal to the LIBOR (which may not be less than 1.00%) plus 2.75%
Total interest rate for term loan	3.75%				3.75%
Principal payments on term loans					$ 4.5
Debt instrument, due date					2019
Basis point reduction to applicable margin, resulting from total leverage ratio below minimum					0.25%
Total leverage ratio	325.00%				325.00%
Senior Notes, fixed 7.125%, due 2019
Debt Instrument [Line Items]
Total long-term debt	$ 471.3				$ 471.3		$ 471.3
Interest rate of Senior Notes	7.125%				7.125%
Debt instrument, due date					2019

Summary of Company's Interest Rate Derivatives (Detail) - Derivatives not designated as hedging instruments - USD ($)
$ in Millions

Sep. 30, 2014

Aug. 31, 2014

Jul. 31, 2014

Dec. 31, 2013

Summary of Company's Interest Rate Derivatives (Parenthetical) (Detail) - Derivatives not designated as hedging instruments	Sep. 30, 2014	Aug. 31, 2014	Jul. 31, 2014	Dec. 31, 2013
LIBOR
Derivatives, Fair Value [Line Items]
LIBOR floor	1.00%			1.00%
Interest Rate Swap H, due August 2014
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.75%			3.75%
Interest Rate Swap I, due August 2014
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.77%			3.77%
Interest Rate Swap J, due August 2014
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.96%			2.96%
Interest Rate Swap K, due August 2014
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.05%			3.05%
Interest Rate Swap L, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.44%			3.44%
Interest Rate Swap M, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.43%			3.43%
Interest Rate Swap N, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.37%			3.37%
Interest Rate Swap O, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.19%			3.19%
Interest Rate Swap P, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	3.08%			3.08%
Interest Rate Swap Q, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.99%			2.99%
Interest Rate Swap R, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.98%			2.98%
Interest Rate Swap S, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.73%		2.73%	2.73%
Interest Rate Swap S, due August 2019 \| LIBOR
Derivatives, Fair Value [Line Items]
LIBOR floor			1.00%
Interest Rate Swap T, due August 2019
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.74%		2.74%	2.74%
Interest Rate Swap T, due August 2019 \| LIBOR
Derivatives, Fair Value [Line Items]
LIBOR floor			1.00%
Interest Rate Swap U Due August Two Thousand Nineteen
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.66%	2.66%		2.66%
Interest Rate Swap U Due August Two Thousand Nineteen \| LIBOR
Derivatives, Fair Value [Line Items]
LIBOR floor		1.00%
Interest Rate Swap V Due August Two Thousand Nineteen
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate	2.60%	2.60%		2.60%
Interest Rate Swap V Due August Two Thousand Nineteen \| LIBOR
Derivatives, Fair Value [Line Items]
LIBOR floor		1.00%

Summary of Outstanding Foreign Currency Forward Contracts (Detail) - Derivatives not designated as hedging instruments - Foreign currency contracts - Japanese Yen ¥ in Millions, $ in Millions	Sep. 30, 2014 USD ($)	Sep. 30, 2014 JPY (¥)	Dec. 31, 2013 USD ($)	Dec. 31, 2013 JPY (¥)
Derivatives, Fair Value [Line Items]
Assets Fair Value	$ (0.2)
Assets Fair Value	$ (0.2)
Liabilities Fair Value			$ (0.3)
Liabilities Fair Value			$ (0.3)
Notional Amount \| ¥		¥ 600.0		¥ 600.0

Summary of Outstanding Commodity Swaps (Detail) - Derivatives not designated as hedging instruments $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2014 USD ($) MMBTU t	Dec. 31, 2013 USD ($) MMBTU t
Derivative Instruments, Gain (Loss) [Line Items]
Fair value	$ (7.0)	$ (19.9)
Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Fair value	0.1	(1.6)
Commodity contracts \| Aluminum
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 14.8	$ 23.8
Quantity \| t	7,500	11,875
Fair value	$ 0.1	$ (1.6)
Commodity contracts \| Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 0.2	$ 0.3
Quantity \| MMBTU	40,000	90,000
Fair value		$ 0.0

Company's Derivative Instruments and their Impact on Financial Condition of Company (Detail) - Derivatives not designated as hedging instruments - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Derivative [Line Items]
Total derivatives not designated as hedging instruments	$ (7.0)	$ (19.9)
Foreign currency contracts \| Other current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value	(0.2)	(0.3)
Commodity contracts
Derivative [Line Items]
Total derivatives not designated as hedging instruments	0.1	(1.6)
Commodity contracts \| Other current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value	(0.3)	(1.5)
Commodity contracts \| Other current and non-current assets
Derivative [Line Items]
Derivative Assets, Fair Value	0.4	0.1
Commodity contracts \| Other current and non-current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value		(1.7)
Commodity contracts \| Other non-current assets
Derivative [Line Items]
Derivative Assets, Fair Value		0.0
Commodity contracts \| Other non-current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value		(0.2)
Interest rate contracts \| Other current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value		(18.5)
Interest rate contracts \| Other current and non-current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value		(19.5)
Interest rate contracts \| Other non-current assets
Derivative [Line Items]
Derivative Assets, Fair Value	0.4	1.5
Interest rate contracts \| Other non-current liabilities
Derivative [Line Items]
Derivative Liability, Fair Value	$ (7.3)	$ (1.0)

Deferred Revenue - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Deferred Revenue [Line Items]
Deferred revenue current liabilities	$ 21.2	$ 29.2
Deferred revenue non-current liabilities	47.9	$ 43.2
Extended Transmission Coverage
Deferred Revenue [Line Items]
Deferred revenue current liabilities	20.1		$ 21.3
Deferred revenue non-current liabilities	47.9		41.7
U S Government Contracts
Deferred Revenue [Line Items]
Deferred revenue current liabilities	$ 1.1		$ 0.3

Other Expense Net (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		69 Months Ended
Other Expense Net (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Components of Other Income (Expense) [Line Items]
Loss on intercompany foreign exchange	$ (1.6)	$ (2.3)	$ (3.4)	$ (2.3)
Grant program income	0.7	0.9	2.1	4.1	$ 48.1
Gain on negotiation of commercial agreement	2.0		2.0
Impairment loss on investments in technology-related initiatives	(2.0)		(2.0)	(2.5)
Unrealized gain (loss) on derivative contracts (see NOTE G)	0.2	1.3	1.7	(1.1)
Public offering fees and expenses	(0.3)	(0.3)	(1.4)	(0.9)
Realized loss on derivative contracts (see NOTE G)	0.0	(0.7)	(1.0)	(2.3)
Gain (loss) on foreign exchange		0.1	(0.5)	(1.8)
Loss on repayments and redemptions of long-term debt	(0.3)	(0.5)	(0.3)	(0.5)
Other	(0.4)		(0.2)	0.1
Total	$ (1.7)	$ (1.5)	$ (3.0)	$ (7.2)

Other Expense, Net - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended		69 Months Ended
	Jun. 30, 2014	Feb. 28, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Other Income Expense [Line Items]
Loss on intercompany foreign exchange			$ 1.6	$ 2.3	$ 3.4	$ 2.3
Foreign exchange loss on intercompany payment					0.2
Revaluation of the remaining intercompany liability					3.2
Public offering fees and expenses			0.3	0.3	1.4	0.9
Grant program income			0.7	0.9	2.1	4.1	$ 48.1
Reduction of basis of capital assets purchased under Grant program			0.0	0.2	0.0	2.9
Assets acquired under Grant Program			7.1		7.1		$ 7.1
Grant Program, related depreciation			$ 0.0	$ 0.1	$ 0.2	$ 0.2
Secondary Public Offering in September
Other Income Expense [Line Items]
Secondary offering of common stock					5,392,499
Common stock, price per share			$ 30.46		$ 30.46		$ 30.46
Secondary Public Offering in June
Other Income Expense [Line Items]
Secondary offering of common stock					40,250,000
Common stock, price per share			29.95		$ 29.95		29.95
Secondary Public Offering in April
Other Income Expense [Line Items]
Secondary offering of common stock					25,000,000
Common stock, price per share			29.78		$ 29.78		29.78
Secondary Public Offering in February
Other Income Expense [Line Items]
Secondary offering of common stock					28,750,000
Common stock, price per share			$ 29.17		$ 29.17		$ 29.17
Secondary Public Offering
Other Income Expense [Line Items]
Secondary offering of common stock						23,805,000
Common stock, price per share				$ 21.175		$ 21.175
Stock repurchased from underwriter	5,000,000	3,428,179				4,700,000
Public offering fees and expenses			$ 0.3		$ 1.4

Other Current Liabilities (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Dec. 31, 2013
Other Current Liabilities [Line Items]
Payroll and related costs	$ 48.2	$ 37.6
Sales allowances	25.3	26.9
Accrued interest payable	13.9	11.2
Vendor buyback obligation	12.6	11.8
Defense price reduction reserve	12.0	26.8
Taxes payable	12.3	8.6
Research and development payable	1.7
Derivative liabilities	0.4	20.2
Other accruals	15.2	9.2
Total	$ 141.6	$ 152.3

Employee Benefit Plans (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Employee Benefit Plans (Detail) - USD ($) $ in Millions	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Pension Plans
Schedule of Employee Benefit Plans [Line Items]
Service cost	$ 3.3	$ 4.1	$ 9.9	$ 12.3
Interest cost	1.3	1.0	3.8	3.0
Expected return on assets	(1.9)	(1.6)	(5.7)	(5.0)
Prior service cost	0.0	0.1	0.0	0.1
Loss (gain)		0.2		0.5
Net periodic benefit cost	2.7	3.8	8.0	10.9
Post-retirement Benefits
Schedule of Employee Benefit Plans [Line Items]
Service cost	0.5	0.8	1.6	2.4
Interest cost	1.5	1.5	4.4	4.4
Prior service cost	(0.9)	(0.9)	(2.7)	(2.7)
Loss (gain)	(0.2)		(0.6)
Net periodic benefit cost	$ 0.9	$ 1.4	$ 2.7	$ 4.1

Earnings Per Share - Additional Information (Detail) shares in Millions	3 Months Ended
	Sep. 30, 2014 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock options not included in the diluted EPS computation	0.4