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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2013	Jul. 16, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
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	Non-accelerated Filer
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		186,455,855
Non-voting Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,185

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 227.4	$ 80.2
Accounts receivables - net of allowance for doubtful accounts of $1.2 and $0.9, respectively	208.5	165.0
Inventories	162.9	157.1
Deferred income taxes, net	56.7	55.3
Other current assets	31.1	32.7
Total Current Assets	686.6	490.3
Property, plant and equipment, net	563.3	596.2
Intangible assets, net	1,661.1	1,716.1
Goodwill	1,941.0	1,941.0
Deferred income taxes, net	1.1	32.3
Other non-current assets	84.7	90.1
TOTAL ASSETS	4,937.8	4,866.0
Current Liabilities
Accounts payable	168.4	133.1
Product warranty liability	35.8	36.2
Current portion of long-term debt	23.5	19.5
Deferred revenue	21.3	21.6
Other current liabilities	165.0	167.4
Total Current Liabilities	414.0	377.8
Product warranty liability	69.8	73.5
Deferred revenue	40.2	42.6
Long-term debt	2,785.5	2,801.3
Deferred income taxes	10.4	0.1
Other non-current liabilities	188.9	213.8
TOTAL LIABILITIES	3,508.8	3,509.1
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding
Treasury stock	(0.2)	(0.2)
Paid in capital	1,638.0	1,601.5
Accumulated deficit	(157.7)	(202.3)
Accumulated other comprehensive loss, net of tax	(53.0)	(43.9)
TOTAL STOCKHOLDERS' EQUITY	1,429.0	1,356.9
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	4,937.8	4,866.0
Common Stock
STOCKHOLDERS' EQUITY
Common stock	1.9	1.8
Non-voting Common Stock
STOCKHOLDERS' EQUITY
Common stock	$ 0.0	$ 0.0

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Allowance for doubtful accounts receivables	$ 1.2	$ 0.9
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	186,170,611	186,170,611
Common stock, shares outstanding	186,146,911	186,146,911
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	1,185	1,185
Common stock, shares outstanding	1,185	1,185

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net sales	$ 512.1	$ 559.4	$ 969.5	$ 1,161.3
Cost of sales	286.0	307.5	545.1	625.6
Gross profit	226.1	251.9	424.4	535.7
Selling, general and administrative expenses	85.6	109.1	173.5	210.3
Engineering - research and development	22.8	23.2	51.8	51.1
Operating income	117.7	119.6	199.1	274.3
Interest income	0.2	0.3	0.4	0.6
Interest expense	(33.5)	(34.4)	(67.6)	(75.4)
Other expense, net	(2.6)	(22.8)	(5.7)	(53.6)
Income before income taxes	81.8	62.7	126.2	145.9
Income tax (expense) benefit	(31.3)	350.1	(48.2)	324.9
Net income	$ 50.5	$ 412.8	$ 78.0	$ 470.8
Basic earnings per share attributable to common stockholders	$ 0.27	$ 2.28	$ 0.42	$ 2.60
Diluted earnings per share attributable to common stockholders	0.26	2.21	0.41	2.55
Dividends declared per common share	$ 0.12	$ 0.06	$ 0.18	$ 0.06
Comprehensive income	$ 44.0	$ 404.6	$ 68.9	$ 469.5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 78.0	$ 470.8
Add (deduct) items included in net income not using (providing) cash:
Amortization of intangible assets	55.0	75.0
Depreciation of property, plant and equipment	49.7	49.9
Deferred income taxes	49.0	(330.8)
Unrealized gain on derivatives	(15.7)	(10.3)
Stock-based compensation	7.7	3.5
Excess tax benefit from stock-based compensation	(7.0)
Amortization of deferred financing costs	4.7	4.6
Impairment loss on investment in technology-related initiatives	2.5	8.0
Loss on repayments and redemptions of long-term debt		21.1
Loss on re-measurement of employee benefit plan		2.3
Other	(0.2)	(0.2)
Changes in assets and liabilities:
Accounts receivable	(44.2)	(42.0)
Inventories	(7.8)	(14.2)
Accounts payable	35.6	23.9
Other assets and liabilities	(22.9)	(15.1)
Net cash provided by operating activities	184.4	246.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions of long-lived assets	(25.8)	(62.5)
Investments in technology-related initiatives	(6.3)	(8.0)
Collateral for interest rate derivatives	1.3	0.1
Proceeds from disposal of assets	0.2	0.4
Net cash used for investing activities	(30.6)	(70.0)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend payments	(33.4)	(10.9)
Proceeds from exercise of stock options	25.2
Payments on long-term debt	(11.8)	(45.5)
Excess tax benefit from stock-based compensation	7.0
Taxes paid related to net share settlement of equity awards	(3.1)
Debt financing fees	(1.6)	(2.3)
Redemptions of long-term debt		(326.9)
Payments on notes payable		(2.5)
Net cash used for financing activities	(17.7)	(388.1)
Effect of exchange rate changes on cash	11.1	9.7
Net increase (decrease) in cash and cash equivalents	147.2	(201.9)
Cash and cash equivalents at beginning of period	80.2	314.0
Cash and cash equivalents at end of period	227.4	112.1
Supplemental disclosures:
Interest paid	79.6	88.8
Income taxes paid	$ 3.0	$ 6.4

Overview

6 Months Ended

Jun. 30, 2013

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 12 different transmission product lines. Although approximately 78% of revenues were generated in North America in 2012, 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 (principally school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (principally 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

6 Months Ended

Jun. 30, 2013

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 six months ended June 30, 2013 and 2012 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 presentation 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, 2012 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2013. The interim period financial results for the three and six 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 March 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance clarifies that when a parent company ceases to have a controlling financial interest in a subsidiary or group of assets, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for fiscal years beginning after December 15, 2013. While the adoption of this guidance is not expected to have an effect on the Company’s condensed consolidated financial statements, it could affect the accounting treatment applied under these circumstances in the future.

In February 2013, the FASB issued authoritative accounting guidance on presentation and disclosure of reclassifications out of accumulated other comprehensive income. The guidance gives an entity the option to present significant amounts reclassified out of each component of accumulated other comprehensive income and the income statement line items affected by the reclassification either parenthetically on the face of the financial statements or in the footnotes to the financial statements. The guidance became effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements; however, it requires the Company to present additional disclosures in the footnotes to the condensed consolidated financial statements when significant amounts are reclassified out of accumulated other comprehensive income.

In January 2013, the FASB issued authoritative accounting guidance clarifying the scope of new balance sheet offsetting disclosures issued in December 2011 for derivatives, repurchase agreements and securities lending transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. The guidance became effective for interim and annual periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements.

In December 2011, the FASB issued authoritative accounting guidance on enhancing disclosures to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The guidance requires improved information and disclosures about gross and net amounts of recognized assets and liabilities of financial and derivative instruments that are offset in an entity’s statement of financial position. The guidance applies retrospectively for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements.

Inventories

6 Months Ended

Jun. 30, 2013

Inventories

NOTE C. INVENTORIES

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


	June 30, 2013		December 31, 2012
Purchased parts and raw materials	$	79.0	$	80.6
Work in progress		8.1		7.5
Service parts		45.5		44.5
Finished goods		30.3		24.5

Total inventories	$	162.9	$	157.1

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

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2013

Goodwill and Other Intangible Assets

NOTE D. GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2013 and December 31, 2012, 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):


	June 30, 2013							December 31, 2012
	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		(22.6	)		39.7		62.3		(20.8	)		41.5
Customer relationships — commercial		831.8		(348.1	)		483.7		831.8		(321.2	)		510.6
Proprietary technology		476.3		(224.8	)		251.5		476.3		(205.8	)		270.5
Non-compete agreement		17.3		(10.2	)		7.1		17.3		(9.4	)		7.9
Patented technology — defense		28.2		(19.6	)		8.6		28.2		(17.9	)		10.3
Tooling rights		4.5		(4.0	)		0.5		4.5		(3.9	)		0.6
Patented technology — commercial		260.6		(260.6	)		—		260.6		(255.9	)		4.7

Total	$	2,551.0	$	(889.9	)	$	1,661.1	$	2,551.0	$	(834.9	)	$	1,716.1

As of June 30, 2013 and December 31, 2012, the net carrying value of our Goodwill and other intangibles was $3,602.1 million and $3,657.1 million, respectively.

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


	2014		2015		2016		2017		2018		Thereafter
Amortization expense	$	98.8	$	97.1	$	92.4	$	89.7	$	87.2	$	275.5

- 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

6 Months Ended

Jun. 30, 2013

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 (exit 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 principally 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 principally 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 principally 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 June 30, 2013 and December 31, 2012, 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 fair value 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 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 June 30, 2013 and December 31, 2012 (dollars in millions):


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						TOTAL
	June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012
Cash and cash equivalents	$	227.4		$	80.2		$	—		$	—		$	227.4		$	80.2
Available-for-sale securities		9.6			6.1			—			—			9.6			6.1
Rabbi trust assets		0.8			0.2			—			—			0.8			0.2
Deferred compensation obligation		(0.8	)		(0.2	)		—			—			(0.8	)		(0.2	)
Derivative assets		—			—			0.0			0.2			0.0			0.2
Derivative liabilities		—			—			(36.9	)		(52.9	)		(36.9	)		(52.9	)

Total	$	237.0		$	86.3		$	(36.9	)	$	(52.7	)	$	200.1		$	33.6

Of the available Cash and cash equivalents, approximately $222.4 million and $75.2 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 June 30, 2013 and December 31, 2012, 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

6 Months Ended

Jun. 30, 2013

Debt

NOTE F. DEBT

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


	June 30, 2013		December 31, 2012
Long-term debt:
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014	$	—	$	411.4
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017		1,198.5		793.1
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019		1,139.2		1,145.0
Senior Notes, fixed 7.125%, due 2019		471.3		471.3

Total long-term debt		2,809.0		2,820.8
Less: current maturities of long-term debt		23.5		19.5

Total long-term debt less current portion	$	2,785.5	$	2,801.3

As of June 30, 2013, the Company had $1,198.5 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 $1,139.2 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 are 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 June 30, 2013 was $2,841.9 million. The fair value is based on quoted Level 1 market prices of the Company’s debt as of June 30, 2013. 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 principally by trends in the financial markets.

Senior Secured Credit Facility

In 2007, ATI entered into a Senior Secured Credit Facility having a term loan in the amount of $3,100.0 million with a maturity date of August 2014. In March 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $801.1 million in principal amount of term loan debt from August 2014 to August 2017 and to increase the applicable margin at the Company’s option to either (a) 3.50% over the LIBOR or (b) 2.50% 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%. As a result of the debt modification, the Company recorded an additional $2.3 million as deferred financing fees in the Condensed Consolidated Balance Sheets and extended the amortization period of $5.1 million of deferred financing fees from 2014 to 2017.

In August 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $850.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company’s option to either (a) 3.25% or 3.00%, subject to the Company’s total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 2.25% or 2.00%, subject to the Company’s total leverage ratio, 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 0.5% (which may not be less than 2.00%). The amendment was treated as an extinguishment of debt under GAAP, and thus the Company expensed $4.5 million of deferred financing fees and recorded $16.1 million of new deferred financing fees in the condensed consolidated financial statements.

In October 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $300.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company’s option to either (a) 3.25% or 3.00%, subject to the Company’s total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 2.25% or 2.00%, subject to the Company’s total leverage ratio, 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% (which may not be less than 2.00%). The amendment was treated as an extinguishment of debt under GAAP, and thus the Company expensed $1.4 million of deferred financing fees and recorded $1.8 million of new deferred financing fees in the condensed consolidated financial statements.

In February 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance $793.1 million of term loan debt and decrease the applicable margin at the Company’s option to either (a) 3.00% over the LIBOR or (b) 2.00% 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%. In February 2013, ATI also entered into an additional amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $411.4 million of term loan debt from August 2014 to August 2017 and to increase the applicable margin at the Company’s option to either (a) 3.00% over the LIBOR or (b) 2.00% 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 February 2013 amendments were treated as a modification of debt under GAAP, and the Company expensed $1.0 million of deferred financing fees and recorded $1.6 million of new deferred financing fees in the condensed consolidated financial statements.

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). Interest on the Term B-2 Loan, as of June 30, 2013, is equal to the LIBOR plus 3.00% and interest on the Term B-3 Loan, as of June 30, 2013, is equal to the LIBOR (which may not be less than 1.00%) plus 3.25% based on the Company’s total leverage ratio. As of June 30, 2013, these rates were approximately 3.20% and 4.25% 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 3.71%. The Senior Secured Credit Facility requires minimum quarterly principal payments of $3.0 million and $2.9 million on the Term B-2 Loan and Term B-3 Loan, respectively, 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. As of June 30, 2013, there had been no payments required for certain net cash proceeds of non-ordinary course asset sales and casualty and condemnation events. The minimum required quarterly principal payments on the Term B-2 Loan and Term B-3 Loan remain through the maturity dates of 2017 and 2019, respectively, and the remaining principal balance on each loan is due upon maturity.

In accordance with the Senior Secured Credit Facility, net cash proceeds of non-ordinary course asset sales and casualty and condemnation events will only be required to prepay the term loan if the Company does not reinvest or commit to reinvest such net cash proceeds in assets to be used in its business or to make certain other permitted investments within 15 months of the related transactions or events, subject to certain limitations. The Company must apply 50% of its annual excess cash flow (as defined in the Senior Secured Credit Facility) to the prepayment of the Senior Secured Credit Facility, however this percentage reduces to certain levels and eventually to zero upon achievement of certain total senior secured leverage ratios. For the year ended December 31, 2012, the excess cash flow percentage was 0%, and as a result, the Company was not required to make an excess cash flow payment.

The Senior Secured Credit Facility also provides for $400.0 million in revolving credit borrowings, net of an allowance for up to $50.0 million in outstanding letter of credit commitments. Throughout the six months ended June 30, 2013, the Company made periodic withdrawals and payments 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 $20.0 million, and all balances were repaid within the quarter they were borrowed. As of June 30, 2013, the Company had $375.4 million available under the revolving credit facility, net of $24.6 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 senior secured leverage ratio. As of June 30, 2013, this rate would have been between approximately 2.95% and 5.00%. In addition, there is an annual commitment fee, based on the Company’s total senior secured leverage ratio, which as of June 30, 2013, was equal to 0.5% 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 August 2016.

The Senior Secured Credit Facility requires the Company to maintain a specified maximum total senior secured leverage ratio. As of June 30, 2013, the Company was in compliance with the maximum total senior secured leverage ratio achieving a 3.50x ratio versus a 5.50x requirement threshold. Within the terms of the Senior Secured Credit Facility, a senior secured leverage ratio above 3.50x results in a 0.5% commitment fee on the revolving credit facility and requires excess cash flow payments on the term loans for the applicable year. A senior secured leverage ratio at or below 3.50x would result in a 12.5 basis point reduction to the revolving credit facility commitment fee and elimination of excess cash flow payments. Additionally, the Company achieved a total leverage ratio of 4.28x as of June 30, 2013. Within the terms of the Senior Secured Credit Facility, a total leverage ratio at or below 3.25x would result in a 25 basis point reduction to the applicable margin on the Term B-3 Loan. This reduction would remain in effect as long as we achieve a total leverage ratio at or below 3.25x.

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 June 30, 2013, the Company is in compliance with all covenants under the Senior Secured Credit Facility.

7.125% Senior Notes

In May 2011, the Company completed an offering of $500.0 million of the 7.125% Senior Notes. The Company may from time to time seek to retire the 7.125% Senior Notes through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, contractual redemptions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Prior to May 15, 2015, the Company may redeem some or all of the 7.125% Senior Notes by paying the applicable “make-whole” premium. At any time on or after May 15, 2015, the Company may redeem some or all of the 7.125% Senior Notes at specified redemption prices in the governing indenture.

The 7.125% Senior Notes are unsecured and guaranteed by the subsidiaries that guarantee the Senior Secured Credit Facility and will be unconditionally guaranteed, jointly and severally, by any future domestic subsidiaries that guarantee the Senior Secured Credit Facility.

Derivatives

6 Months Ended

Jun. 30, 2013

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 to manage a portion of this exposure. The Company does not qualify for 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 June 30, 2013 and December 31, 2012 follows (dollars in millions):


	June 30, 2013					December 31, 2012
	Notional Amount		Fair Value			Notional Amount		Fair Value
Interest Rate Swap D, due 2013	$	125.0	$	(0.2	)	$	125.0	$	(2.8	)
Interest Rate Swap E, due 2013		150.0		(0.5	)		150.0		(2.3	)
Interest Rate Swap F, due 2013		75.0		(0.2	)		75.0		(1.1	)
Interest Rate Swap G, due 2013		75.0		(0.3	)		75.0		(1.2	)
Interest Rate Swap H, due 2014		350.0		(13.1	)		350.0		(19.0	)
Interest Rate Swap I, due 2014		350.0		(13.2	)		350.0		(19.2	)
Interest Rate Swap J, due 2014		125.0		(3.3	)		125.0		(3.3	)
Interest Rate Swap K, due 2014		125.0		(3.4	)		125.0		(3.4	)

	$	1,375.0	$	(34.2	)	$	1,375.0	$	(52.3	)

Certain of the Company’s interest rate derivatives contain credit-risk and collateral contingent features under which downgrades in the Company’s credit rating could require the Company to increase its collateral. Certain interest rate derivatives also contain provisions under which the Company may be required to post additional collateral if the LIBOR interest rate curve reaches certain levels.

As of June 30, 2013 and December 31, 2012, the Company had recorded cash collateral of $1.7 million and $3.0 million, respectively, in Other current assets in the Condensed Consolidated Balance Sheets, as the balances are subject to frequent change. The Company has also posted $20.0 million of collateral in the form of letters of credit.

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 does not elect to apply hedge accounting under the authoritative accounting guidance and records 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 June 30, 2013 and December 31, 2012 (amounts in millions):


	June 30, 2013					December 31, 2012
	Notional Amount		Fair Value			Notional Amount		Fair Value
Japanese Yen (JPY)	¥	550.0	$	(0.7	)	¥	675.0	$	(0.2	)

			$	(0.7	)			$	(0.2	)

Commodity

The Company’s business is subject to commodity price risk, principally 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 are 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 June 30, 2013 and December 31, 2012 (dollars in millions):


	June 30, 2013						December 31, 2012
	Notional Amount		Quantity	Fair Value			Notional Amount		Quantity	Fair Value
Aluminum	$	14.5	6,850 metric tons	$	(2.0	)	$	19.4	9,050 metric tons	$	(0.1	)
Steel		N/A	N/A		—			0.2	340 metric tons		(0.1	)
Natural Gas		N/A	N/A		—			0.3	80,000 MMBtu		0.0

				$	(2.0	)				$	(0.2	)

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


	June 30, 2013				December 31, 2012
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current liabilities	$	(0.7	)	Other current liabilities	$	(0.2	)
Commodity contracts	Other current assets		0.0		Other current and non-current assets		0.2
	Other current and non- current liabilities		(2.0	)	Other current and non-current liabilities		(0.4	)
Interest rate contracts	Other current and non- current liabilities		(34.2	)	Other current and non-current liabilities		(52.3	)

Total derivatives not designated as hedging instruments		$	(36.9	)		$	(52.7	)

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 June 30, 2013, the amount recorded to Other current liabilities for foreign currency contracts was ($0.7) million. The amount recorded to Other current assets for commodity contracts was $0.0 million, and the amounts recorded to Other current and non-current liabilities for commodity contracts were ($1.5) million and ($0.5) million, respectively. The amounts recorded to Other current and non-current liabilities for interest rate contracts were ($31.2) million and ($3.0) million, respectively.

As of December 31, 2012, the amount recorded to Other current liabilities for foreign currency contracts was ($0.2) million. The amounts recorded to Other current and non-current assets and Other current and non-current liabilities for commodity contracts were $0.1 million, $0.1 million, ($0.3) million and ($0.1) million, respectively. The amounts recorded to Other current and non-current liabilities for interest rate contracts were ($31.2) million and ($21.1) million, respectively.

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

Three months ended
June 30, 2013

Three months ended
June 30, 2012

Location of
(loss)/gain
recognized on
derivatives

Amount of
(loss)/gain
recognized on
derivatives

Location of
gain (loss)
recognized on
derivatives

Amount of
gain (loss)
recognized on
derivatives

Derivatives not designated as hedging instruments

Foreign currency contracts

Other expense, net

(0.6

)

Other expense, net

0.1

Commodity contracts

Other expense, net

(0.9

)

Other expense, net

(2.1

)

Interest rate contracts

Interest expense

8.9

Interest expense

6.8

Total gain recognized on derivatives not designated as hedging instruments

7.4

4.8

Six months ended
June 30, 2013

Six months ended
June 30, 2012

Location of
(loss)/gain
recognized on
derivatives

Amount of
(loss)/gain
recognized on
derivatives

Location of
gain (loss)
recognized on
derivatives

Amount of
gain (loss)
recognized on
derivatives

Derivatives not designated as hedging instruments

Foreign currency contracts

Other expense, net

(1.5

)

Other expense, net

0.3

Commodity contracts

Other expense, net

(2.5

)

Other expense, net

(1.5

)

Interest rate contracts

Interest expense

18.1

Interest expense

11.3

Total gain recognized on derivatives not designated as hedging instruments

14.1

10.1

- 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
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-Section 45
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-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Product Warranty Liabilities

6 Months Ended

Jun. 30, 2013

Product Warranty Liabilities

NOTE H. PRODUCT WARRANTY LIABILITIES

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


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Beginning balance	$	107.5		$	113.6		$	109.7		$	115.4
Payments		(10.4	)		(13.3	)		(20.3	)		(22.2	)
Increase in liability (warranty issued during period)		7.8			7.4			13.3			14.5
Net adjustment to liability		0.5			3.2			2.5			3.0
Accretion (for Predecessor liabilities)		0.2			0.2			0.4			0.4

Ending balance	$	105.6		$	111.1		$	105.6		$	111.1

As of June 30, 2013, the current and non-current liabilities were $35.8 million and $69.8 million, respectively. As of June 30, 2012, the current and non-current liabilities were $33.9 million and $77.2 million, respectively.

Deferred revenue for extended transmission coverage activity (dollars in millions):


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Beginning balance	$	61.6		$	61.2		$	63.5		$	60.7
Increases		4.8			7.3			8.1			12.8
Revenue earned		(5.3	)		(4.9	)		(10.5	)		(9.9	)

Ending balance	$	61.1		$	63.6		$	61.1		$	63.6

As of June 30, 2013, the current and non-current liabilities were $20.9 million and $40.2 million, respectively. As of June 30, 2012, the current and non-current liabilities were $20.2 million and $43.4 million, respectively. The activity above excludes deferred revenue related to defense contracts, which was $0.4 million as of June 30, 2013.

Other Expense, Net

6 Months Ended

Jun. 30, 2013

Other Expense, Net

NOTE I. OTHER EXPENSE, NET

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


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Grant Program income	$	2.0		$	1.3		$	3.2		$	4.1
Impairment loss on investments in technology-related initiatives		—			(8.0	)		(2.5	)		(8.0	)
Unrealized loss on derivative contracts (see NOTE G)		(0.5	)		(1.7	)		(2.4	)		(1.0	)
Loss on foreign exchange		(2.5	)		(3.7	)		(1.9	)		(3.0	)
Realized loss on derivative contracts (see NOTE G)		(1.0	)		(0.3	)		(1.6	)		(0.2	)
Public offering fees and expenses		(0.6	)		(0.4	)		(0.6	)		(6.1	)
Loss on repayments and redemptions of long-term debt		—			(7.6	)		—			(21.1	)
Termination of Sponsor services agreement		—			—			—			(16.0	)
Loss on re-measurement of employee benefit plans (see NOTE K)		—			(2.3	)		—			(2.3	)
Other		—			(0.1	)		0.1			—

Total	$	(2.6	)	$	(22.8	)	$	(5.7	)	$	(53.6	)

During the second quarter of 2013, the Company announced a proposed secondary offering of its common stock by investment funds affiliated with The Carlyle Group and Onex Corporation (collectively, the “Sponsors”). The Company subsequently announced that the investment funds affiliated with the Sponsors would not proceed with the previously announced secondary offering of common stock due to market conditions. The registration statement for these offerings or distributions remains on file with the SEC. For the three and six months ended June 30, 2013, the Company incurred $0.6 million and $0.6 million, respectively, of expenses related to this public offering.

During the first quarter of 2013, the Company made a $2.5 million investment as part of a co-development agreement signed in 2012 to expand our position in transmission technologies. Due to various uncertainties surrounding the investment including, but not limited to, the startup nature of the underlying business, its continued negative cash flow, undercapitalization and unproven business plan, the Company has impaired the investment to zero as of June 30, 2013. The related charge of $2.5 million was recorded in Other expense, net in the Condensed Consolidated Statements of Comprehensive Income for the six months ended June 30, 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 U.S. 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 $44.0 million of Grant Program income to Other expense, net in the Condensed Consolidated Statements of Comprehensive Income.

For the three months ended June 30, 2013 and 2012, the Company recorded $1.3 million and $0.7 million, respectively, as a reduction of the basis of capital assets purchased under the Grant Program. For the six months ended June 30, 2013 and 2012, the Company recorded $2.7 million and $2.2 million, respectively, as a reduction of the basis of capital assets purchased under the Grant Program. Since inception of the Grant Program, the Company has placed approximately $7.1 million of assets in service under the Grant Program, resulting in related depreciation of $0.0 million and $0.2 million for the three months ended June 30, 2013 and 2012, respectively, and $0.1 million and $0.3 million for the six months ended June 30, 2013 and 2012, respectively.

Other Current Liabilities

6 Months Ended

Jun. 30, 2013

Other Current Liabilities

NOTE J. OTHER CURRENT LIABILITIES

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


	As of June 30, 2013		As of December 31, 2012
Derivative liabilities	$	33.4	$	34.6
Payroll and related costs		33.3		47.5
Defense price reduction reserve		28.0		12.0
Sales allowances		25.8		27.0
Accrued interest payable		15.2		14.2
Vendor buyback obligation		9.7		13.9
Taxes payable		8.3		6.9
Research and development payable		3.1		—
Other accruals		8.2		11.3

Total	$	165.0	$	167.4

Employee Benefit Plans

6 Months Ended

Jun. 30, 2013

Employee Benefit Plans

NOTE K. EMPLOYEE BENEFIT PLANS

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


	Pension Plans						Post-retirement Benefits
	Three months ended June 30,						Three months ended June 30,
	2013			2012			2013			2012
Net periodic benefit cost:
Service cost	$	4.1		$	4.1		$	0.8		$	0.9
Interest cost		1.0			1.2			1.4			1.8
Expected return on assets		(1.8	)		(1.6	)		—			—
Prior service cost		0.0			0.0			(0.9	)		—
Loss		0.1			0.3			—			—
Settlement loss		—			2.3			—			—

Net periodic benefit cost	$	3.4		$	6.3		$	1.3		$	2.7


	Pension Plans						Post-retirement Benefits
	Six months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Net periodic benefit cost:
Service cost	$	8.2		$	8.2		$	1.6		$	1.9
Interest cost		2.0			2.3			2.9			3.6
Expected return on assets		(3.4	)		(3.1	)		—			—
Prior service cost		0.0			0.0			(1.8	)		—
Loss		0.3			0.7			—			—
Settlement loss		—			2.3			—			—

Net periodic benefit cost	$	7.1		$	10.4		$	2.7		$	5.5

Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes

NOTE L. INCOME TAXES

The effective tax rate for the three and six months ended June 30, 2013 was (38.3%) and (38.2%), respectively. For the three and six months ended June 30, 2013, the Company recorded total tax expense of ($31.3) million and ($48.2) million, respectively. The effective tax rate for the three and six months ended June 30, 2012 was 558.4% and 222.7%, respectively. For the three and six months ended June 30, 2012, the Company recorded a total tax benefit of $350.1 million and $324.9 million, respectively. The change in the effective tax rates from 2012 to 2013 was principally driven by the release of the domestic valuation allowance on the Company’s deferred tax assets in the second quarter of 2012 resulting in an income tax benefit of $384.8 million.

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. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent 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. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

Management has determined, based on the evaluation of both objective and subjective evidence available, that a 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 believes its objectively measured positive evidence outweighs 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 had no liability for unrecognized tax benefits as of June 30, 2013 and December 31, 2012. 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, 2012, 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

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Loss

NOTE M. ACCUMULATED OTHER COMPREHENSIVE LOSS

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

Six months ended June 30, 2013

Available-for-
sale securities

Defined
benefit
pension items

Foreign
currency items

Total

Beginning balance of AOCL

2.2

(36.9

)

(9.2

)

(43.9

)

Other comprehensive loss before reclassifications

(0.2

)

—

(8.1

)

(8.3

)

Amounts reclassified from AOCL

—

(0.8

)

—

(0.8

)

Net current period other comprehensive loss

(0.2

)

(0.8

)

(8.1

)

(9.1

)

Total AOCL

2.0

(37.7

)

(17.3

)

(53.0

)

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


	Three months ended June 30, 2013
AOCL Components	Amount reclassified from AOCL			Affected line item in the condensed consolidated statements of comprehensive income
Amortization of defined benefit pension items:
Prior service cost	$	0.7		Cost of sales
		0.2		Selling, general and administrative
Actuarial loss		(0.1	)	Selling, general and administrative
		(0.1	)	Engineering – research and development

Total reclassifications, before tax		0.7		Income before income taxes
Income tax expense		(0.3	)	Tax expense

Total reclassifications	$	0.4		Net of tax


	Six months ended June 30, 2013
AOCL Components	Amount reclassified from AOCL			Affected line item in the condensed consolidated statements of comprehensive income
Amortization of defined benefit pension items:
Prior service cost	$	1.4		Cost of sales
		0.4		Selling, general and administrative
Actuarial loss		(0.2	)	Selling, general and administrative
		(0.2	)	Engineering – research and development

Total reclassifications, before tax		1.4		Income before income taxes
Income tax expense		(0.6	)	Tax expense

Total reclassifications	$	0.8		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 K 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=28358780&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=28358780&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=28358780&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=28358780&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=28358780&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=28358780&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=28358780&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

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies

NOTE N. COMMITMENTS AND CONTINGENCIES

Claims, Disputes, and Litigation

The Company is party to various legal actions, administrative proceedings and claims arising in the ordinary course of business. These proceedings principally 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 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

6 Months Ended

Jun. 30, 2013

Certain Relationships and Related Party Transactions

NOTE O. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

As of June 30, 2013, investment funds affiliated with the Sponsors owned a total of approximately 81.0% of the Company’s equity. Pursuant to an amended and restated stockholders agreement, a majority of the Board of Directors has been designated by the Sponsors and is affiliated with the Sponsors. As a result, the Sponsors or their nominees to the Board of Directors have the ability to control the appointment of management, the entering into of mergers, sales of substantially all of the Company’s assets and other extraordinary transactions and influence amendments to the Company’s certificate of incorporation. So long as the Sponsors continue to own a majority of the Company’s equity, they will have the ability to control the vote in any election of directors and will have the ability to prevent any transaction that requires stockholder approval regardless of whether others believe the transaction is in the Company’s best interests. The interests of the Sponsors could conflict with those of the Company’s other stockholders. In addition, the Sponsors may in the future own businesses that directly compete with the Company.

7.125% Senior Notes Held by Executive Officers

As of June 30, 2013, Lawrence E. Dewey, our Chairman, President and Chief Executive Officer, David S. Graziosi, our Executive Vice President, Chief Financial Officer and Treasurer, and Robert M. Price, our Vice President, Human Resources, held approximately $100,000, $450,000, and $150,000, respectively, in aggregate principal amount of the 7.125% Senior Notes.

- 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

6 Months Ended

Jun. 30, 2013

Earnings Per Share

NOTE P. 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. For the three months and six months ended June 30, 2013, 0.4 million 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 June 30,				Six months ended June 30,
	2013		2012		2013		2012
Net income	$	50.5	$	412.8	$	78.0	$	470.8

Weighted average shares of common stock outstanding		185.9		181.4		185.3		181.4
Dilutive effect stock-based awards		4.0		5.0		3.6		3.0

Diluted weighted average shares of common stock outstanding		189.9		186.4		188.9		184.4

Basic earnings per share attributable to common stockholders	$	0.27	$	2.28	$	0.42	$	2.60

Diluted earnings per share attributable to common stockholders	$	0.26	$	2.21	$	0.41	$	2.55

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2013
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 six months ended June 30, 2013 and 2012 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 presentation 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, 2012 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2013. The interim period financial results for the three and six 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 March 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative accounting guidance on a parent company’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance clarifies that when a parent company ceases to have a controlling financial interest in a subsidiary or group of assets, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance is effective for fiscal years beginning after December 15, 2013. While the adoption of this guidance is not expected to have an effect on the Company’s condensed consolidated financial statements, it could affect the accounting treatment applied under these circumstances in the future. In February 2013, the FASB issued authoritative accounting guidance on presentation and disclosure of reclassifications out of accumulated other comprehensive income. The guidance gives an entity the option to present significant amounts reclassified out of each component of accumulated other comprehensive income and the income statement line items affected by the reclassification either parenthetically on the face of the financial statements or in the footnotes to the financial statements. The guidance became effective for interim and annual reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements; however, it requires the Company to present additional disclosures in the footnotes to the condensed consolidated financial statements when significant amounts are reclassified out of accumulated other comprehensive income. In January 2013, the FASB issued authoritative accounting guidance clarifying the scope of new balance sheet offsetting disclosures issued in December 2011 for derivatives, repurchase agreements and securities lending transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. The guidance became effective for interim and annual periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements. In December 2011, the FASB issued authoritative accounting guidance on enhancing disclosures to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. The guidance requires improved information and disclosures about gross and net amounts of recognized assets and liabilities of financial and derivative instruments that are offset in an entity’s statement of financial position. The guidance applies retrospectively for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of this guidance did not have a material effect on the Company’s condensed consolidated financial statements.

Inventories (Tables)

6 Months Ended

Jun. 30, 2013

Components of Inventories

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


	June 30, 2013		December 31, 2012
Purchased parts and raw materials	$	79.0	$	80.6
Work in progress		8.1		7.5
Service parts		45.5		44.5
Finished goods		30.3		24.5

Total inventories	$	162.9	$	157.1

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Other Intangible Assets

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


	June 30, 2013							December 31, 2012
	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		(22.6	)		39.7		62.3		(20.8	)		41.5
Customer relationships — commercial		831.8		(348.1	)		483.7		831.8		(321.2	)		510.6
Proprietary technology		476.3		(224.8	)		251.5		476.3		(205.8	)		270.5
Non-compete agreement		17.3		(10.2	)		7.1		17.3		(9.4	)		7.9
Patented technology — defense		28.2		(19.6	)		8.6		28.2		(17.9	)		10.3
Tooling rights		4.5		(4.0	)		0.5		4.5		(3.9	)		0.6
Patented technology — commercial		260.6		(260.6	)		—		260.6		(255.9	)		4.7

Total	$	2,551.0	$	(889.9	)	$	1,661.1	$	2,551.0	$	(834.9	)	$	1,716.1

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):


	2014		2015		2016		2017		2018		Thereafter
Amortization expense	$	98.8	$	97.1	$	92.4	$	89.7	$	87.2	$	275.5

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30, 2013 and December 31, 2012 (dollars in millions):


	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						TOTAL
	June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012			June 30, 2013			December 31, 2012
Cash and cash equivalents	$	227.4		$	80.2		$	—		$	—		$	227.4		$	80.2
Available-for-sale securities		9.6			6.1			—			—			9.6			6.1
Rabbi trust assets		0.8			0.2			—			—			0.8			0.2
Deferred compensation obligation		(0.8	)		(0.2	)		—			—			(0.8	)		(0.2	)
Derivative assets		—			—			0.0			0.2			0.0			0.2
Derivative liabilities		—			—			(36.9	)		(52.9	)		(36.9	)		(52.9	)

Total	$	237.0		$	86.3		$	(36.9	)	$	(52.7	)	$	200.1		$	33.6

Debt (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Long-Term Debt and Maturities

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


	June 30, 2013		December 31, 2012
Long-term debt:
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014	$	—	$	411.4
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017		1,198.5		793.1
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019		1,139.2		1,145.0
Senior Notes, fixed 7.125%, due 2019		471.3		471.3

Total long-term debt		2,809.0		2,820.8
Less: current maturities of long-term debt		23.5		19.5

Total long-term debt less current portion	$	2,785.5	$	2,801.3

- 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)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: 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.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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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)

6 Months Ended

Jun. 30, 2013

Summary of Company's Interest Rate Derivatives

A summary of the Company’s interest rate derivatives as of June 30, 2013 and December 31, 2012 follows (dollars in millions):


	June 30, 2013					December 31, 2012
	Notional Amount		Fair Value			Notional Amount		Fair Value
Interest Rate Swap D, due 2013	$	125.0	$	(0.2	)	$	125.0	$	(2.8	)
Interest Rate Swap E, due 2013		150.0		(0.5	)		150.0		(2.3	)
Interest Rate Swap F, due 2013		75.0		(0.2	)		75.0		(1.1	)
Interest Rate Swap G, due 2013		75.0		(0.3	)		75.0		(1.2	)
Interest Rate Swap H, due 2014		350.0		(13.1	)		350.0		(19.0	)
Interest Rate Swap I, due 2014		350.0		(13.2	)		350.0		(19.2	)
Interest Rate Swap J, due 2014		125.0		(3.3	)		125.0		(3.3	)
Interest Rate Swap K, due 2014		125.0		(3.4	)		125.0		(3.4	)

	$	1,375.0	$	(34.2	)	$	1,375.0	$	(52.3	)

Derivative Instruments and Their Impact on Results of Operations

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


	June 30, 2013				December 31, 2012
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Derivatives not designated as hedging instruments
Foreign currency contracts	Other current liabilities	$	(0.7	)	Other current liabilities	$	(0.2	)
Commodity contracts	Other current assets		0.0		Other current and non-current assets		0.2
	Other current and non- current liabilities		(2.0	)	Other current and non-current liabilities		(0.4	)
Interest rate contracts	Other current and non- current liabilities		(34.2	)	Other current and non-current liabilities		(52.3	)

Total derivatives not designated as hedging instruments		$	(36.9	)		$	(52.7	)

Company's Derivative Instruments and Their Impact on Financial Condition of Company

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

Three months ended
June 30, 2013

Three months ended
June 30, 2012

Location of
(loss)/gain
recognized on
derivatives

Amount of
(loss)/gain
recognized on
derivatives

Location of
gain (loss)
recognized on
derivatives

Amount of
gain (loss)
recognized on
derivatives

Derivatives not designated as hedging instruments

Foreign currency contracts

Other expense, net

(0.6

)

Other expense, net

0.1

Commodity contracts

Other expense, net

(0.9

)

Other expense, net

(2.1

)

Interest rate contracts

Interest expense

8.9

Interest expense

6.8

Total gain recognized on derivatives not designated as hedging instruments

7.4

4.8

Six months ended
June 30, 2013

Six months ended
June 30, 2012

Location of
(loss)/gain
recognized on
derivatives

Amount of
(loss)/gain
recognized on
derivatives

Location of
gain (loss)
recognized on
derivatives

Amount of
gain (loss)
recognized on
derivatives

Derivatives not designated as hedging instruments

Foreign currency contracts

Other expense, net

(1.5

)

Other expense, net

0.3

Commodity contracts

Other expense, net

(2.5

)

Other expense, net

(1.5

)

Interest rate contracts

Interest expense

18.1

Interest expense

11.3

Total gain recognized on derivatives not designated as hedging instruments

14.1

10.1

Foreign Currency Forward Contract

Notional Amount and Fair Value of Derivatives

The following table summarizes the outstanding foreign currency forward contracts as of June 30, 2013 and December 31, 2012 (amounts in millions):


	June 30, 2013					December 31, 2012
	Notional Amount		Fair Value			Notional Amount		Fair Value
Japanese Yen (JPY)	¥	550.0	$	(0.7	)	¥	675.0	$	(0.2	)

			$	(0.7	)			$	(0.2	)

Commodity contracts

Notional Amount and Fair Value of Derivatives

The following table summarizes the outstanding commodity swaps as of June 30, 2013 and December 31, 2012 (dollars in millions):


	June 30, 2013						December 31, 2012
	Notional Amount		Quantity	Fair Value			Notional Amount		Quantity	Fair Value
Aluminum	$	14.5	6,850 metric tons	$	(2.0	)	$	19.4	9,050 metric tons	$	(0.1	)
Steel		N/A	N/A		—			0.2	340 metric tons		(0.1	)
Natural Gas		N/A	N/A		—			0.3	80,000 MMBtu		0.0

				$	(2.0	)				$	(0.2	)

- 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=7476318&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=7476318&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=7476318&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=7476318&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=7476318&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=7476318&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=7476318&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=7476318&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=7476318&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)

6 Months Ended

Jun. 30, 2013

Product Warranty Liability Activities

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


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Beginning balance	$	107.5		$	113.6		$	109.7		$	115.4
Payments		(10.4	)		(13.3	)		(20.3	)		(22.2	)
Increase in liability (warranty issued during period)		7.8			7.4			13.3			14.5
Net adjustment to liability		0.5			3.2			2.5			3.0
Accretion (for Predecessor liabilities)		0.2			0.2			0.4			0.4

Ending balance	$	105.6		$	111.1		$	105.6		$	111.1

Deferred Revenue for Extended Transmission Coverage Activity

Deferred revenue for extended transmission coverage activity (dollars in millions):


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Beginning balance	$	61.6		$	61.2		$	63.5		$	60.7
Increases		4.8			7.3			8.1			12.8
Revenue earned		(5.3	)		(4.9	)		(10.5	)		(9.9	)

Ending balance	$	61.1		$	63.6		$	61.1		$	63.6

Other Expense, Net (Tables)

6 Months Ended

Jun. 30, 2013

Computation of Other Expense, Net

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


	Three months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Grant Program income	$	2.0		$	1.3		$	3.2		$	4.1
Impairment loss on investments in technology-related initiatives		—			(8.0	)		(2.5	)		(8.0	)
Unrealized loss on derivative contracts (see NOTE G)		(0.5	)		(1.7	)		(2.4	)		(1.0	)
Loss on foreign exchange		(2.5	)		(3.7	)		(1.9	)		(3.0	)
Realized loss on derivative contracts (see NOTE G)		(1.0	)		(0.3	)		(1.6	)		(0.2	)
Public offering fees and expenses		(0.6	)		(0.4	)		(0.6	)		(6.1	)
Loss on repayments and redemptions of long-term debt		—			(7.6	)		—			(21.1	)
Termination of Sponsor services agreement		—			—			—			(16.0	)
Loss on re-measurement of employee benefit plans (see NOTE K)		—			(2.3	)		—			(2.3	)
Other		—			(0.1	)		0.1			—

Total	$	(2.6	)	$	(22.8	)	$	(5.7	)	$	(53.6	)

Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Other Current Liabilities

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


	As of June 30, 2013		As of December 31, 2012
Derivative liabilities	$	33.4	$	34.6
Payroll and related costs		33.3		47.5
Defense price reduction reserve		28.0		12.0
Sales allowances		25.8		27.0
Accrued interest payable		15.2		14.2
Vendor buyback obligation		9.7		13.9
Taxes payable		8.3		6.9
Research and development payable		3.1		—
Other accruals		8.2		11.3

Total	$	165.0	$	167.4

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30,						Three months ended June 30,
	2013			2012			2013			2012
Net periodic benefit cost:
Service cost	$	4.1		$	4.1		$	0.8		$	0.9
Interest cost		1.0			1.2			1.4			1.8
Expected return on assets		(1.8	)		(1.6	)		—			—
Prior service cost		0.0			0.0			(0.9	)		—
Loss		0.1			0.3			—			—
Settlement loss		—			2.3			—			—

Net periodic benefit cost	$	3.4		$	6.3		$	1.3		$	2.7


	Pension Plans						Post-retirement Benefits
	Six months ended June 30,						Six months ended June 30,
	2013			2012			2013			2012
Net periodic benefit cost:
Service cost	$	8.2		$	8.2		$	1.6		$	1.9
Interest cost		2.0			2.3			2.9			3.6
Expected return on assets		(3.4	)		(3.1	)		—			—
Prior service cost		0.0			0.0			(1.8	)		—
Loss		0.3			0.7			—			—
Settlement loss		—			2.3			—			—

Net periodic benefit cost	$	7.1		$	10.4		$	2.7		$	5.5

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2013

Changes in Accumulated Other Comprehensive Loss by Component

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

Six months ended June 30, 2013

Available-for-
sale securities

Defined
benefit
pension items

Foreign
currency items

Total

Beginning balance of AOCL

2.2

(36.9

)

(9.2

)

(43.9

)

Other comprehensive loss before reclassifications

(0.2

)

—

(8.1

)

(8.3

)

Amounts reclassified from AOCL

—

(0.8

)

—

(0.8

)

Net current period other comprehensive loss

(0.2

)

(0.8

)

(8.1

)

(9.1

)

Total AOCL

2.0

(37.7

)

(17.3

)

(53.0

)

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


	Three months ended June 30, 2013
AOCL Components	Amount reclassified from AOCL			Affected line item in the condensed consolidated statements of comprehensive income
Amortization of defined benefit pension items:
Prior service cost	$	0.7		Cost of sales
		0.2		Selling, general and administrative
Actuarial loss		(0.1	)	Selling, general and administrative
		(0.1	)	Engineering – research and development

Total reclassifications, before tax		0.7		Income before income taxes
Income tax expense		(0.3	)	Tax expense

Total reclassifications	$	0.4		Net of tax


	Six months ended June 30, 2013
AOCL Components	Amount reclassified from AOCL			Affected line item in the condensed consolidated statements of comprehensive income
Amortization of defined benefit pension items:
Prior service cost	$	1.4		Cost of sales
		0.4		Selling, general and administrative
Actuarial loss		(0.2	)	Selling, general and administrative
		(0.2	)	Engineering – research and development

Total reclassifications, before tax		1.4		Income before income taxes
Income tax expense		(0.6	)	Tax expense

Total reclassifications	$	0.8		Net of tax

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30,				Six months ended June 30,
	2013		2012		2013		2012
Net income	$	50.5	$	412.8	$	78.0	$	470.8

Weighted average shares of common stock outstanding		185.9		181.4		185.3		181.4
Dilutive effect stock-based awards		4.0		5.0		3.6		3.0

Diluted weighted average shares of common stock outstanding		189.9		186.4		188.9		184.4

Basic earnings per share attributable to common stockholders	$	0.27	$	2.28	$	0.42	$	2.60

Diluted earnings per share attributable to common stockholders	$	0.26	$	2.21	$	0.41	$	2.55

Overview - Additional Information (Detail)	6 Months Ended
Overview - Additional Information (Detail)	Jun. 30, 2013 Product Customer Brand Vehicle
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Transmission product lines	12
Independent distributor and dealer in worldwide locations \| Customer	1,400
Different product models	100
Different 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
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Total revenues generated in North America	78.00%

Components of Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Inventory [Line Items]
Purchased parts and raw materials	$ 79.0	$ 80.6
Work in progress	8.1	7.5
Service parts	45.5	44.5
Finished goods	30.3	24.5
Total inventories	$ 162.9	$ 157.1

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Goodwill [Line Items]
Goodwill	$ 1,941.0	$ 1,941.0
Net carrying value of Goodwill and other intangible assets	$ 3,602.1	$ 3,657.1

Summary of Other Intangible Assets (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Line Items]
Trade name	$ 870.0	$ 870.0
Intangible assets, gross	2,551.0	2,551.0
Accumulated amortization	(889.9)	(834.9)
Intangible assets, net	1,661.1	1,716.1
Customer relationships - defense
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	62.3	62.3
Accumulated amortization	(22.6)	(20.8)
Intangible assets, net	39.7	41.5
Customer relationships - commercial
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	831.8	831.8
Accumulated amortization	(348.1)	(321.2)
Intangible assets, net	483.7	510.6
Proprietary technology
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	476.3	476.3
Accumulated amortization	(224.8)	(205.8)
Intangible assets, net	251.5	270.5
Non-compete agreement
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	17.3	17.3
Accumulated amortization	(10.2)	(9.4)
Intangible assets, net	7.1	7.9
Patented technology - defense
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	28.2	28.2
Accumulated amortization	(19.6)	(17.9)
Intangible assets, net	8.6	10.3
Tooling rights
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	4.5	4.5
Accumulated amortization	(4.0)	(3.9)
Intangible assets, net	0.5	0.6
Patented technology - commercial
Goodwill and Intangible Assets Disclosure [Line Items]
Intangible assets, gross	260.6	260.6
Accumulated amortization	$ (260.6)	(255.9)
Intangible assets, net		$ 4.7

Expected Amortization Expense Related to Other Intangible Assets (Detail) $ in Millions	Jun. 30, 2013 USD ($)
Finite-Lived Intangible Assets
2014	$ 98.8
2015	97.1
2016	92.4
2017	89.7
2018	87.2
Thereafter	$ 275.5

Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 227.4	$ 80.2
Available-for-sale securities	9.6	6.1
Rabbi trust assets	0.8	0.2
Deferred compensation obligation	(0.8)	(0.2)
Derivative assets	0.0	0.2
Derivative liabilities	(36.9)	(52.9)
Total	200.1	33.6
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	227.4	80.2
Available-for-sale securities	9.6	6.1
Rabbi trust assets	0.8	0.2
Deferred compensation obligation	(0.8)	(0.2)
Total	237.0	86.3
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0.0	0.2
Derivative liabilities	(36.9)	(52.9)
Total	$ (36.9)	$ (52.7)

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deposited in operating accounts	$ 222.4	$ 75.2
Investment in U.S. government backed securities	$ 5.0	$ 5.0

Long Term Debt and Maturities (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Total long-term debt	$ 2,809.0	$ 2,820.8
Less: current maturities of long-term debt	23.5	19.5
Total long-term debt less current portion	2,785.5	2,801.3
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014
Debt Instrument [Line Items]
Total long-term debt		411.4
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017
Debt Instrument [Line Items]
Total long-term debt	1,198.5	793.1
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019
Debt Instrument [Line Items]
Total long-term debt	1,139.2	1,145.0
Senior Cash Pay Notes, fixed 7.125%, due 2019
Debt Instrument [Line Items]
Total long-term debt	$ 471.3	$ 471.3

Long Term Debt and Maturities (Parenthetical) (Detail)	6 Months Ended
Long Term Debt and Maturities (Parenthetical) (Detail)	Jun. 30, 2013
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014
Debt Instrument [Line Items]
Senior Secured Credit Facility Term B-1, due date	2014
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017
Debt Instrument [Line Items]
Senior secured credit facility term B-2, due date	2017
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019
Debt Instrument [Line Items]
Senior Secured Credit Facility Term B-3, due date	2019
Senior Cash Pay Notes, fixed 7.125%, due 2019
Debt Instrument [Line Items]
Interest rate of Senior Notes	7.125%
Senior cash pay notes, fixed due date	2019

Debt - Additional Information (Detail) $ in Millions	1 Months Ended					6 Months Ended		12 Months Ended
Debt - Additional Information (Detail) $ in Millions	Jun. 30, 2013 USD ($)	Feb. 28, 2013 USD ($)	Oct. 31, 2012 USD ($)	Aug. 31, 2012 USD ($)	Dec. 31, 2007 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011	May 31, 2011 USD ($)
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.	$ 2,809.0					$ 2,809.0		$ 2,820.8
Fair value of long-term debt obligations	2,841.9					2,841.9
Additional deferred financing fees recorded						1.6	$ 2.3
Deferred financing fees						4.7	$ 4.6
Total long-term debt	$ 2,785.5					$ 2,785.5		$ 2,801.3
Annual excess cash flow to prepay term loan								50.00%	0.00%
Achieved senior secured leverage ratio	3.50					3.50
Achieved total leverage ratio	4.28					4.28
If leverage ratio is above 3.50
Debt Instrument [Line Items]
Line of Credit Facility, commitment fee percentage						0.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum amount of letters of credit commitments available under the revolving credit facility	$ 50.0					$ 50.0
Maximum amount outstanding at any time on the revolving credit facility						20.0
Available revolving credit facility	375.4					375.4
Letters of Credit	$ 24.6					$ 24.6
Line of Credit Facility, commitment fee percentage						0.50%
Line of Credit
Debt Instrument [Line Items]
Debt instrument face amount				$ 850.0	$ 3,100.0
Senior Secured Credit Facility, maturity date					Aug. 07, 2014			Aug. 07, 2017
Extended Senior Secured Credit Facility, principal amount								$ 801.1
Applicable margin over base rate								3.50%
Additional deferred financing fees recorded								$ 2.3
Deferred financing fees for which the amortization period was extended as a result of debt modification								$ 5.1
Weighted average rate on the Senior Secured Credit Facility								3.71%
Maturity date of revolving credit borrowings						2016-08
Senior Secured Credit Facility
Debt Instrument [Line Items]
Additional deferred financing fees recorded		$ 1.6
Deferred financing fees		1.0
Amendment Agreement \| Line of Credit
Debt Instrument [Line Items]
Additional deferred financing fees recorded								$ 16.1
Deferred financing fees				$ 4.5
Minimum \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit borrowings, interest rate	2.95%					2.95%
Minimum \| Line of Credit
Debt Instrument [Line Items]
Extended period of amortization on deferred financing fees								2014
Maximum \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit borrowings, interest rate	5.00%					5.00%
Maximum \| Line of Credit
Debt Instrument [Line Items]
Extended period of amortization on deferred financing fees								2017
Federal Funds Rate \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate				0.50%	0.50%
LIBOR \| Minimum \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate				3.00%
LIBOR \| Maximum \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate				3.25%
Prime Rate or Federal Funds Rate \| Minimum \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate				2.00%
Prime Rate or Federal Funds Rate \| Maximum \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate				2.25%
Senior Cash Pay Notes, fixed 7.125%, due 2019
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.	$ 471.3					$ 471.3		$ 471.3
Interest rate of Senior Notes	7.125%					7.125%
Debt instrument face amount	$ 500.0					$ 500.0
Senior Cash Pay Notes, fixed 7.125%, due 2019 \| Allison Transmission Inc.
Debt Instrument [Line Items]
Interest rate of Senior Notes	7.125%					7.125%
Senior Secured Credit Facility Term B-2 Loan, due 2017
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.	$ 1,198.5					$ 1,198.5
Senior Secured Credit Facility Term B-3 Loan, due 2019
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.	1,139.2					1,139.2
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.								411.4
Senior Secured Credit Facility Term B-1 Loan, variable, due 2014 \| Allison Transmission Inc.
Debt Instrument [Line Items]
Revolving credit borrowings										$ 400.0
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.	$ 1,139.2					$ 1,139.2		$ 1,145.0
Additional deferred financing fees recorded			$ 1.8
Senior Secured Credit Facility, extended maturity date			Aug. 23, 2019					Aug. 23, 2019
Variable interest rate, description								In August 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $850.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company's option to either (a) 3.25% or 3.00%, subject to the Company's total leverage ratio, over the LIBOR (which may not be less than 1.00%) or (b) 2.25% or 2.00%, subject to the Company's total leverage ratio,
Deferred financing fees			$ 1.4
Total interest rate for term loan								4.25%
Principal payments on term loans								$ 2.9
Senior Secured Credit Facility Term B-3, due date						2019
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| Line of Credit
Debt Instrument [Line Items]
Variable interest rate, description			In October 2012, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $300.0 million of term loan debt from August 2014 to August 2019 and to increase the applicable margin at the Company's option to either (a) 3.25% or 3.00%, subject to the Company's total leverage ratio					LIBOR (but not less than 1.00%)
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| Minimum
Debt Instrument [Line Items]
LIBOR margin rate								LIBOR plus 3.00%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| Maximum
Debt Instrument [Line Items]
LIBOR margin rate	LIBOR plus 3.25%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| LIBOR \| Minimum
Debt Instrument [Line Items]
Applicable margin over base rate			3.00%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| LIBOR \| Maximum
Debt Instrument [Line Items]
Applicable margin over base rate			3.25%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| Prime Rate or 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 \| Prime Rate or Federal Funds Rate \| Minimum
Debt Instrument [Line Items]
Applicable margin over base rate			2.00%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| Prime Rate or Federal Funds Rate \| Maximum
Debt Instrument [Line Items]
Applicable margin over base rate			2.25%
Senior Secured Credit Facility Term B-3 Loan, variable, due 2019 \| Allison Transmission Inc.
Debt Instrument [Line Items]
Senior Secured Credit Facility Term B-3, due date								2019
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017
Debt Instrument [Line Items]
Indebtedness associated with Allison Transmission Inc.	$ 1,198.5					$ 1,198.5		$ 793.1
Variable interest rate, description						In February 2013, ATI also entered into an additional amendment with the term loan lenders under its Senior Secured Credit Facility to extend the maturity of $411.4 million of term loan debt from August 2014 to August 2017 and to increase the applicable margin at the Company's option to either (a) 3.00% over the LIBOR or (b) 2.00% over the greater of the prime lending rate		Interest on the Term B-2 Loan, as of June 30, 2013, is equal to the LIBOR plus 3.00%
Credit facility refinance description						In February 2013, ATI entered into an amendment with the term loan lenders under its Senior Secured Credit Facility to refinance $793.1 million of term loan debt and decrease the applicable margin at the Company's option to either (a) 3.00% over the LIBOR or (b) 2.00% over the greater of the prime lending rate
Total interest rate for term loan								3.20%
Principal payments on term loans								$ 3.0
Senior secured credit facility term B-2, due date						2017
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Line of Credit
Debt Instrument [Line Items]
Debt instrument face amount		411.4
Credit facility refinanced amount		793.1
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Refinanced Term Loan
Debt Instrument [Line Items]
Total long-term debt		793.1
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Amendment
Debt Instrument [Line Items]
Total long-term debt		$ 411.4
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Before Amendment
Debt Instrument [Line Items]
Senior Secured Credit Facility Term B-1, due date		2014-08
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| After Amendment
Debt Instrument [Line Items]
Senior Secured Credit Facility Term B-1, due date		2017-08
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Minimum \| Line of Credit
Debt Instrument [Line Items]
Extended period of amortization on deferred financing fees		2014
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Maximum \| Line of Credit
Debt Instrument [Line Items]
Extended period of amortization on deferred financing fees		2017
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| LIBOR \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate		3.00%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| LIBOR \| Refinanced Term Loan
Debt Instrument [Line Items]
Applicable margin over base rate		3.00%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| LIBOR \| Amendment
Debt Instrument [Line Items]
Applicable margin over base rate		3.00%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Prime Rate or Federal Funds Rate \| Line of Credit
Debt Instrument [Line Items]
Applicable margin over base rate		2.00%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Prime Rate or Federal Funds Rate \| Refinanced Term Loan
Debt Instrument [Line Items]
Applicable margin over base rate		0.50%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Prime Rate or Federal Funds Rate \| Amendment
Debt Instrument [Line Items]
Applicable margin over base rate		2.00%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Prime Rate or Federal Funds Rate \| Maximum \| Refinanced Term Loan
Debt Instrument [Line Items]
Applicable margin over base rate		2.00%
Senior Secured Credit Facility Term B-2 Loan, variable, due 2017 \| Allison Transmission Inc.
Debt Instrument [Line Items]
Senior secured credit facility term B-2, due date								2017

Summary of Company's Interest Rate Derivatives (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Interest Rate Swap D, due 2013
Derivatives, Fair Value [Line Items]
Notional Amount	$ 125.0	$ 125.0
Fair Value	(0.2)	(2.8)
Interest Rate Swap E, due 2013
Derivatives, Fair Value [Line Items]
Notional Amount	150.0	150.0
Fair Value	(0.5)	(2.3)
Interest Rate Swap F, due 2013
Derivatives, Fair Value [Line Items]
Notional Amount	75.0	75.0
Fair Value	(0.2)	(1.1)
Interest Rate Swap G, due 2013
Derivatives, Fair Value [Line Items]
Notional Amount	75.0	75.0
Fair Value	(0.3)	(1.2)
Interest Rate Swap H, due 2014
Derivatives, Fair Value [Line Items]
Notional Amount	350.0	350.0
Fair Value	(13.1)	(19.0)
Interest Rate Swap I, due 2014
Derivatives, Fair Value [Line Items]
Notional Amount	350.0	350.0
Fair Value	(13.2)	(19.2)
Interest Rate Swap J, due 2014
Derivatives, Fair Value [Line Items]
Notional Amount	125.0	125.0
Fair Value	(3.3)	(3.3)
Interest Rate Swap K, due 2014
Derivatives, Fair Value [Line Items]
Notional Amount	125.0	125.0
Fair Value	(3.4)	(3.4)
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Notional Amount	1,375.0	1,375.0
Fair Value	$ (34.2)	$ (52.3)

Derivatives - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Derivative [Line Items]
Amount of collateral recorded in Other current assets	$ 1.7	$ 3.0
Foreign currency contracts \| Other Current Liabilities
Derivative [Line Items]
Fair value of the derivative	(0.7)	(0.2)
Commodity contracts \| Other Current Liabilities
Derivative [Line Items]
Fair value of the derivative	(1.5)	(0.3)
Commodity contracts \| Other non-current liabilities
Derivative [Line Items]
Fair value of the derivative	(0.5)	(0.1)
Commodity contracts \| Other Current Assets
Derivative [Line Items]
Fair value of the derivative	0.0	0.1
Commodity contracts \| Other non-current Assets
Derivative [Line Items]
Fair value of the derivative		0.1
Interest rate contracts \| Other Current Liabilities
Derivative [Line Items]
Fair value of the derivative	(31.2)	(31.2)
Interest rate contracts \| Other non-current liabilities
Derivative [Line Items]
Fair value of the derivative	(3.0)	$ (21.1)
Interest Rate Swap
Derivative [Line Items]
Letters of Credit	$ 20.0

Summary of Outstanding Foreign Currency Forward Contracts (Detail) - Foreign currency contracts - Japanese Yen ¥ in Millions, $ in Millions	Jun. 30, 2013 USD ($)	Jun. 30, 2013 JPY (¥)	Dec. 31, 2012 USD ($)	Dec. 31, 2012 JPY (¥)
Derivatives, Fair Value [Line Items]
Notional Amount		¥ 550.0		¥ 675.0
Fair Value	$ (0.7)	¥ (0.7)	$ (0.2)	¥ (0.2)

Summary of Outstanding Commodity Swaps (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2012 USD ($) MMBTU t	Jun. 30, 2013 USD ($) t
Derivative Instruments, Gain (Loss) [Line Items]
Fair value	$ (0.2)	$ (2.0)
Aluminum
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 19.4	$ 14.5
Quantity \| t	9,050	6,850
Fair value	$ (0.1)	$ (2.0)
Steel
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 0.2
Quantity \| t	340
Fair value	$ (0.1)
Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount	$ 0.3
Quantity \| MMBTU	80,000
Fair value	$ 0.0

Company's Derivative Instruments and their Impact on Financial Condition of Company (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Derivative [Line Items]
Total derivatives not designated as hedging instruments	$ (2.0)	$ (0.2)
Other Current Liabilities \| Foreign currency contracts
Derivative [Line Items]
Derivative liability, Fair Value	(0.7)	(0.2)
Other Current Liabilities \| Commodity contracts
Derivative [Line Items]
Derivative liability, Fair Value	(1.5)	(0.3)
Other Current Liabilities \| Interest rate contracts
Derivative [Line Items]
Derivative liability, Fair Value	(31.2)	(31.2)
Other Current Assets \| Commodity contracts
Derivative [Line Items]
Derivative Assets, Fair Value	0.0	0.1
Derivatives not designated as hedging instruments
Derivative [Line Items]
Total derivatives not designated as hedging instruments	(36.9)	(52.7)
Derivatives not designated as hedging instruments \| Other Current Liabilities \| Foreign currency contracts
Derivative [Line Items]
Derivative liability, Fair Value	(0.7)	(0.2)
Derivatives not designated as hedging instruments \| Other Current Assets \| Commodity contracts
Derivative [Line Items]
Derivative Assets, Fair Value	0.0	0.2
Derivatives not designated as hedging instruments \| Other current and non-current liabilities \| Commodity contracts
Derivative [Line Items]
Derivative liability, Fair Value	(2.0)	(0.4)
Derivatives not designated as hedging instruments \| Other current and non-current liabilities \| Interest rate contracts
Derivative [Line Items]
Derivative liability, Fair Value	$ (34.2)	$ (52.3)

Derivative Instruments and their Impact on Results of Operations (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Derivative [Line Items]
Total gain (loss) recognized on derivatives not designated as hedging instruments	$ 7.4	$ 4.8	$ 14.1	$ 10.1
Foreign currency contracts \| Other expense, net
Derivative [Line Items]
Total gain (loss) recognized on derivatives not designated as hedging instruments	(0.6)	0.1	(1.5)	0.3
Commodity contracts \| Other expense, net
Derivative [Line Items]
Total gain (loss) recognized on derivatives not designated as hedging instruments	(0.9)	(2.1)	(2.5)	(1.5)
Interest rate contracts \| Interest expense
Derivative [Line Items]
Total gain (loss) recognized on derivatives not designated as hedging instruments	$ 8.9	$ 6.8	$ 18.1	$ 11.3

Product Warranty Liability Activities (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Guarantor Obligations [Line Items]
Beginning balance	$ 107.5	$ 113.6	$ 109.7	$ 115.4
Payments	(10.4)	(13.3)	(20.3)	(22.2)
Increase in liability (warranty issued during period)	7.8	7.4	13.3	14.5
Net adjustment to liability	0.5	3.2	2.5	3.0
Accretion (for Predecessor liabilities)	0.2	0.2	0.4	0.4
Ending balance	$ 105.6	$ 111.1	$ 105.6	$ 111.1

Product Warranty Liabilities - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Guarantor Obligations [Line Items]
Product warranty liability, current	$ 35.8		$ 36.2	$ 33.9
Product warranty liability, non-current	69.8		73.5	77.2
Deferred Revenue	61.1	$ 61.6	63.5	63.6	$ 61.2	$ 60.7
Deferred revenue non-current liabilities	40.2		$ 42.6	43.4
ETC (extended transmission coverage)
Guarantor Obligations [Line Items]
Deferred Revenue	20.9			$ 20.2
U S Government Contracts
Guarantor Obligations [Line Items]
Deferred Revenue	$ 0.4

Deferred Revenue for Extended Transmission Coverage Activity (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Guarantor Obligations [Line Items]
Beginning balance	$ 61.6	$ 61.2	$ 63.5	$ 60.7
Increases	4.8	7.3	8.1	12.8
Revenue earned	(5.3)	(4.9)	(10.5)	(9.9)
Ending balance	$ 61.1	$ 63.6	$ 61.1	$ 63.6

Other Expense Net (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		54 Months Ended
Other Expense Net (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Components of Other Income (Expense) [Line Items]
Grant Program income	$ 2.0	$ 1.3	$ 3.2	$ 4.1	$ 44.0
Impairment loss on investments in technology-related initiatives		(8.0)	(2.5)	(8.0)
Unrealized loss on derivative contracts (see NOTE G)	(0.5)	(1.7)	(2.4)	(1.0)
Loss on foreign exchange	(2.5)	(3.7)	(1.9)	(3.0)
Realized loss on derivative contracts (see NOTE G)	(1.0)	(0.3)	(1.6)	(0.2)
Public offering fees and expenses	(0.6)	(0.4)	(0.6)	(6.1)
Loss on repayments and redemptions of long-term debt		(7.6)		(21.1)
Termination of Sponsor services agreement				(16.0)
Loss on re-measurement of employee benefit plans (see NOTE K)		(2.3)		(2.3)
Other		(0.1)	0.1
Total	$ (2.6)	$ (22.8)	$ (5.7)	$ (53.6)

Other Expense, Net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		54 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Other Income Expense [Line Items]
Public offering fees and expenses	$ 0.6		$ 0.4	$ 0.6	$ 6.1
Payment for expansion of transmission technologies		$ 2.5
Impairment loss on investments in technology-related initiatives			8.0	2.5	8.0
Grant Program income	2.0		1.3	3.2	4.1	$ 44.0
Reduction of basis of capital assets purchased under Grant program	1.3		0.7	2.7	2.2
Assets in service under the Grant Program				7.1
Grant Program, related depreciation	$ 0.0		$ 0.2	$ 0.1	$ 0.3

Other Current Liabilities (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Dec. 31, 2012
Other Current Liabilities [Line Items]
Derivative liabilities	$ 33.4	$ 34.6
Payroll and related costs	33.3	47.5
Defense price reduction reserve	28.0	12.0
Sales allowances	25.8	27.0
Accrued interest payable	15.2	14.2
Vendor buyback obligation	9.7	13.9
Taxes payable	8.3	6.9
Research and development payable	3.1
Other accruals	8.2	11.3
Total	$ 165.0	$ 167.4

Employee Benefit Plans (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Employee Benefit Plans (Detail) - USD ($) $ in Millions	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Pension Plans
Schedule of Employee Benefit Plans [Line Items]
Service cost	$ 4.1	$ 4.1	$ 8.2	$ 8.2
Interest cost	1.0	1.2	2.0	2.3
Expected return on assets	(1.8)	(1.6)	(3.4)	(3.1)
Prior service cost	0.0	0.0	0.0	0.0
Loss	0.1	0.3	0.3	0.7
Settlement loss		2.3		2.3
Net periodic benefit cost	3.4	6.3	7.1	10.4
Post-retirement Benefits
Schedule of Employee Benefit Plans [Line Items]
Service cost	0.8	0.9	1.6	1.9
Interest cost	1.4	1.8	2.9	3.6
Prior service cost	(0.9)		(1.8)
Net periodic benefit cost	$ 1.3	$ 2.7	$ 2.7	$ 5.5

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Taxes [Line Items]
Effective tax rate	(38.30%)	558.40%	(38.20%)	222.70%
Income tax (expense) benefit	$ (31.3)	$ 350.1	$ (48.2)	$ 324.9
Valuation allowance on deferred tax assets		$ 384.8

Changes in Accumulated Other Comprehensive Loss (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2013 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance of AOCL	$ (43.9)
Other comprehensive loss before reclassifications	(8.3)
Amounts reclassified from AOCL	(0.8)
Net current period other comprehensive loss	(9.1)
Total AOCL	(53.0)
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance of AOCL	2.2
Other comprehensive loss before reclassifications	(0.2)
Net current period other comprehensive loss	(0.2)
Total AOCL	2.0
Accumulated Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance of AOCL	(36.9)
Amounts reclassified from AOCL	(0.8)
Net current period other comprehensive loss	(0.8)
Total AOCL	(37.7)
Accumulated Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance of AOCL	(9.2)
Other comprehensive loss before reclassifications	(8.1)
Net current period other comprehensive loss	(8.1)
Total AOCL	$ (17.3)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Condensed Consolidated Statements of Comprehensive Income Affected by Reclassifications from AOCL (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income taxes	$ 81.8	$ 62.7	$ 126.2	$ 145.9
Tax expense	(31.3)	350.1	(48.2)	324.9
Net of tax	50.5	$ 412.8	78.0	$ 470.8
Reclassification out of Accumulated Other Comprehensive Income \| Accumulated Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income before income taxes	0.7		1.4
Tax expense	(0.3)		(0.6)
Net of tax	0.4		0.8
Reclassification out of Accumulated Other Comprehensive Income \| Accumulated Defined Benefit Plans Adjustment \| Cost of Sales
Accumulated Other Comprehensive Income (Loss) [Line Items]
Prior service cost	0.7		1.4
Reclassification out of Accumulated Other Comprehensive Income \| Accumulated Defined Benefit Plans Adjustment \| Selling, General and Administrative Expenses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Prior service cost	0.2		0.4
Actuarial loss	(0.1)		(0.2)
Reclassification out of Accumulated Other Comprehensive Income \| Accumulated Defined Benefit Plans Adjustment \| Research and Development Expense
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial loss	$ (0.1)		$ (0.2)

Certain Relationships and Related Party Transactions - Additional Information (Detail)	Jun. 30, 2013 USD ($)
Related Party Transaction [Line Items]
Percentage the of Company's equity owned by affiliates	81.00%
Senior Notes
Related Party Transaction [Line Items]
Principal amount percent Senior Notes	7.125%
Lawrence Dewey \| Fixed 7.125% Senior Notes
Related Party Transaction [Line Items]
Senior notes held by executive officers	$ 100,000
David Graziosi \| Fixed 7.125% Senior Notes
Related Party Transaction [Line Items]
Senior notes held by executive officers	450,000
Robert M. Price \| Fixed 7.125% Senior Notes
Related Party Transaction [Line Items]
Senior notes held by executive officers	$ 150,000

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive stock options not included in the diluted EPS computation	0.4	0.4

Reconciliation of Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Computation Of Earnings Per Share Line Items
Net income	$ 50.5	$ 412.8	$ 78.0	$ 470.8
Weighted average shares of common stock outstanding	185.9	181.4	185.3	181.4
Dilutive effect stock-based awards	4.0	5.0	3.6	3.0
Diluted weighted average shares of common stock outstanding	189.9	186.4	188.9	184.4
Basic earnings per share attributable to common stockholders	$ 0.27	$ 2.28	$ 0.42	$ 2.60
Diluted earnings per share attributable to common stockholders	$ 0.26	$ 2.21	$ 0.41	$ 2.55

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
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-Section 04
-Paragraph 20
-Article 9

+ Details