10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from            to

Commission File Number 1-8036

WEST PHARMACEUTICAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	23-1210010
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
530 Herman O. West Drive, Exton, PA	19341-0645
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 610-594-2900

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

As of September 30, 2015, there were 72,087,677 shares of the Registrant’s common stock outstanding.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)
	Condensed Consolidated Statements of Income for the Three and Nine Months ended September 30, 2015 and 2014	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months ended September 30, 2015 and 2014	4
	Condensed Consolidated Balance Sheets at September 30, 2015 and December 31, 2014	5
	Condensed Consolidated Statement of Equity for the Nine Months ended September 30, 2015	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2015 and 2014	7
	Notes to Condensed Consolidated Financial Statements	8
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35
ITEM 4.	CONTROLS AND PROCEDURES	35
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	36
ITEM 1A.	RISK FACTORS	36
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	36
ITEM 6.	EXHIBITS	37
SIGNATURE		38
EXHIBIT INDEX		F-1

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PART I. FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

West Pharmaceutical Services, Inc. and Subsidiaries

(In millions, except per share data)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015		2014
Net sales	$	344.5		$	355.9	$	1,040.1	$	1,071.6
Cost of goods and services sold	236.2			246.0		703.9		733.5
Gross profit	108.3			109.9		336.2		338.1
Research and development	8.5			9.6		24.1		29.5
Selling, general and administrative expenses	54.6			56.0		170.6		169.9
Other expense (Note 11)	48.7			0.3		58.1		1.3
Operating (loss) profit	(3.5		)	44.0		83.4		137.4
Interest expense	3.7			4.5		11.2		12.7
Interest income	0.5			1.8		1.3		2.7
(Loss) income before income taxes	(6.7		)	41.3		73.5		127.4
Income tax (benefit) expense	(6.6		)	11.7		15.1		35.5
Equity in net income of affiliated companies	1.6			1.4		3.8		3.8
Net income	$	1.5		$	31.0	$	62.2	$	95.7
Net income per share:
Basic	$	0.02		$	0.44	$	0.86	$	1.35
Diluted	$	0.02		$	0.43	$	0.85	$	1.32
Weighted average shares outstanding:
Basic	72.2			71.0		71.9		70.8
Diluted	73.9			72.6		73.6		72.5
Dividends declared per share	$	0.12		$	0.11	$	0.34	$	0.31

See accompanying notes to condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

West Pharmaceutical Services, Inc. and Subsidiaries

(In millions)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income	$	1.5		$	31.0		$	62.2		$	95.7
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(13.5		)	(38.9		)	(58.0		)	(42.2		)
Defined benefit pension and other postretirement plan adjustments, net of tax of $11.4, $0.5, $12.3 and $0.7 respectively	19.7			1.2			21.3			1.5
Net (losses) gains on derivatives, net of tax of $(0.1), $0.4, $0.7 and $0.8, respectively	(0.4		)	1.1			1.5			1.8
Other comprehensive income (loss), net of tax	5.8			(36.6		)	(35.2		)	(38.9		)
Comprehensive income (loss)	$	7.3		$	(5.6	)	$	27.0		$	56.8

See accompanying notes to condensed consolidated financial statements.

4

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

West Pharmaceutical Services, Inc. and Subsidiaries

(In millions)

	September 30, 2015			December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	256.8		$	255.3
Accounts receivable, net	194.6			179.0
Inventories	187.7			181.5
Deferred income taxes	8.3			7.8
Other current assets	33.5			35.7
Total current assets	680.9			659.3
Property, plant and equipment	1,398.3			1,390.8
Less accumulated depreciation and amortization	708.8			685.0
Property, plant and equipment, net	689.5			705.8
Investments in affiliated companies	59.2			60.6
Goodwill	105.7			108.6
Deferred income taxes	66.9			66.1
Intangible assets, net	38.6			42.0
Other noncurrent assets	25.7			28.5
Total Assets	$	1,666.5		$	1,670.9
LIABILITIES AND EQUITY
Current liabilities:
Notes payable and other current debt	$	71.0		$	27.2
Accounts payable	93.6			103.1
Pension and other postretirement benefits	2.5			2.6
Accrued salaries, wages and benefits	56.2			52.9
Income taxes payable	19.0			14.9
Other current liabilities	57.6			51.8
Total current liabilities	299.9			252.5
Long-term debt	231.5			309.5
Deferred income taxes	9.4			15.7
Pension and other postretirement benefits	81.5			83.7
Other long-term liabilities	48.9			52.6
Total Liabilities	671.2			714.0
Commitments and contingencies (Note 13)
Equity:
Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding	—			—
Common stock, $0.25 par value; 100.0 million shares authorized; issued: 72.2 million and 71.4 million; outstanding: 72.1 million and 71.3 million	18.0			17.8
Capital in excess of par value	195.8			160.2
Retained earnings	939.9			902.2
Accumulated other comprehensive loss	(154.4		)	(119.2		)
Treasury stock, at cost (0.1 million and 0.1 million shares)	(4.0		)	(4.1		)
Total Equity	995.3			956.9
Total Liabilities and Equity	$	1,666.5		$	1,670.9

See accompanying notes to condensed consolidated financial statements.

5

CONDENSED CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED)

West Pharmaceutical Services, Inc. and Subsidiaries

(In millions)

	Common Stock				Capital in Excess of Par Value			Treasury Stock			Retained earnings			Accumulated other comprehensive loss			Total
	Shares		Amount
Balance, December 31, 2014	71.4		$	17.8	$	160.2		$	(4.1	)	$	902.2		$	(119.2	)	$	956.9
Net income	—		—		—			—			62.2			—			62.2
Stock-based compensation	—		0.1		23.2			0.2			—			—			23.5
Shares issued under stock plans	0.9		0.1		13.7			—			—			—			13.8
Shares repurchased for employee tax withholdings	(0.1	)	—		(5.5		)	(0.1		)	—			—			(5.6		)
Excess tax benefit from employee stock plans	—		—		4.2			—			—			—			4.2
Dividends declared	—		—		—			—			(24.5		)	—			(24.5		)
Other comprehensive loss, net of tax	—		—		—			—			—			(35.2		)	(35.2		)
Balance, September 30, 2015	72.2		$	18.0	$	195.8		$	(4.0	)	$	939.9		$	(154.4	)	$	995.3

See accompanying notes to condensed consolidated financial statements.

6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

West Pharmaceutical Services, Inc. and Subsidiaries

(In millions)

	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities:
Net income	$	62.2		$	95.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	63.6			63.9
Amortization	3.0			4.1
Stock-based compensation	24.4			12.5
Pension settlement charge	49.0			—
Other non-cash items, net	(2.7		)	(3.1		)
Changes in assets and liabilities	(55.1		)	(36.2		)
Net cash provided by operating activities	144.4			136.9
Cash flows from investing activities:
Capital expenditures	(86.8		)	(84.8		)
Purchases of short-term investments	—			(9.3		)
Sales and maturities of short-term investments	—			16.8
Other, net	1.2			(0.4		)
Net cash used in investing activities	(85.6		)	(77.7		)
Cash flows from financing activities:
Borrowings under revolving credit agreements	57.4			222.4
Repayments under revolving credit agreements	(57.4		)	(242.4		)
Repayments of long-term debt	(26.7		)	(1.7		)
Dividend payments	(23.7		)	(21.2		)
Excess tax benefit from employee stock plans	4.2			5.5
Shares repurchased for employee tax withholdings	(5.6		)	(4.1		)
Proceeds from exercise of stock options and stock appreciation rights	9.7			10.5
Employee stock purchase plan contributions	2.3			2.2
Contingent consideration payments	(0.1		)	(0.2		)
Net cash used in financing activities	(39.9		)	(29.0		)
Effect of exchange rates on cash	(17.4		)	(13.4		)
Net increase in cash and cash equivalents	1.5			16.8
Cash and cash equivalents at beginning of period	255.3			230.0
Cash and cash equivalents at end of period	$	256.8		$	246.8

See accompanying notes to condensed consolidated financial statements.

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1:  Summary of Significant Accounting Policies

Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and nine months endedSeptember 30, 2015 should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. (which may be referred to as “West”, “the Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year.

Note 2:  New Accounting Standards

Recently Adopted Standards

In April 2014, the Financial Accounting Standards Board ("FASB") issued guidance for the reporting of discontinued operations, which also contained new disclosure requirements for both discontinued operations and other disposals that do not meet the definition of a discontinued operation. We adopted this guidance as of January 1, 2015, on a prospective basis. The adoption did not have a material impact on our financial statements.

Standards Issued Not Yet Adopted

In September 2015, the FASB issued guidance that simplifies the accounting for measurement-period adjustments in business combinations, by eliminating the requirement to account for those adjustments retrospectively. Instead, the acquirer will be required to recognize measurement-period adjustments in the reporting period in which the amounts are determined. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In July 2015, the FASB issued guidance regarding the subsequent measurement of inventory. This guidance requires inventory measured using any method other than last-in, first-out or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value represents estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In April 2015, the FASB issued guidance on the accounting for fees paid by a customer in a cloud computing arrangement. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management is currently evaluating the impact that this guidance will have on our financial statements, if any.

In April 2015, the FASB issued guidance which changes the classification of debt issuance costs, from an asset on the balance sheet to netting the costs against the carrying value of the debt. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

8

In January 2015, the FASB issued guidance which removes the concept of extraordinary items from U.S. GAAP. This guidance eliminates the requirement for companies to spend time assessing whether items meet the criteria of being both unusual and infrequent. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In August 2014, the FASB issued guidance which defines management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2017. Early adoption is permitted as of one year prior to the current effective date. Entities can choose to apply the guidance using either a full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on our financial statements, if any, including which transition method it will adopt.

Note 3:  Net Income Per Share

The following table reconciles net income and shares used in the calculation of basic net income per share to those used for diluted net income per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2015		2014		2015		2014
Net income	$	1.5	$	31.0	$	62.2	$	95.7
Denominator:
Weighted average common shares outstanding	72.2		71.0		71.9		70.8
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method	1.7		1.6		1.7		1.7
Weighted average shares assuming dilution	73.9		72.6		73.6		72.5

During the three months ended September 30, 2015 and 2014, there were 0.8 million and 0.6 million shares, respectively, not included in the computation of diluted net income per share because their impact was antidilutive. There were 0.6 million and 0.5 million antidilutive shares outstanding during the nine months ended September 30, 2015 and 2014, respectively.

9

Note 4:  Inventories

Inventories are valued at the lower of cost (on a first-in, first-out basis) or market. Inventory balances were as follows:

($ in millions)	September 30, 2015		December 31, 2014
Raw materials	$	78.0	$	79.9
Work in process	31.1		25.6
Finished goods	78.6		76.0
	$	187.7	$	181.5

Note 5:  Debt

The following table summarizes our long-term debt obligations, net of current maturities:

($ in millions)	September 30, 2015		December 31, 2014
Series B floating rate notes, due July 28, 2015	$	—	$	25.0
Euro note B, due February 27, 2016	68.7		74.3
Capital leases, due January 1, 2016	0.1		0.2
Revolving credit facility, due April 26, 2017	27.8		29.7
Term loan, due January 1, 2018	37.7		39.2
Note payable, due January 1, 2020	0.2		0.3
Series A notes, due July 5, 2022	42.0		42.0
Series B notes, due July 5, 2024	53.0		53.0
Series C notes, due July 5, 2027	73.0		73.0
	302.5		336.7
Less: current portion of long-term debt	71.0		27.2
	$	231.5	$	309.5

Please refer to Note 8, Debt, to the consolidated financial statements in our 2014 Annual Report for additional details regarding our debt agreements.

At September 30, 2015, we had $27.8 million in outstanding borrowings under our multi-currency revolving credit facility, of which $4.2 million was denominated in Yen and $23.6 million was denominated in Euro. The total amount outstanding under this facility at September 30, 2015 and December 31, 2014 was classified as long-term.

In addition, at September 30, 2015, we had $37.7 million outstanding under our five-year term loan due January 2018, of which $2.2 million was classified as current. Please refer to Note 6, Derivative Financial Instruments, for a discussion of the interest-rate swap agreement associated with this loan.

10

Note 6:  Derivative Financial Instruments

Our ongoing business operations expose us to various risks such as fluctuating interest rates, foreign exchange rates and increasing commodity prices. To manage these market risks, we periodically enter into derivative financial instruments such as interest rate swaps, options and foreign exchange contracts for periods consistent with and for notional amounts equal to or less than the related underlying exposures. We do not purchase or hold any derivative financial instruments for speculation or trading purposes. All derivatives are recorded on the balance sheet at fair value.

Interest Rate Risk

At September 30, 2015, we had a $37.7 million forward-start interest rate swap outstanding that hedges the variability in cash flows due to changes in the applicable interest rate of our variable-rate five-year term loan related to the purchase of our corporate office and research building. Under this swap, we receive variable interest rate payments based on one-month London Interbank Offered Rate (“LIBOR”) plus a margin in return for making monthly fixed interest payments at 5.41%. We designated this swap as a cash flow hedge.

Foreign Exchange Rate Risk

During 2015 and 2014, we entered into several foreign currency hedge contracts that were designated as cash flow hedges of forecasted transactions denominated in foreign currencies, which are described in more detail below.

We entered into a series of foreign currency contracts intended to hedge the currency risk associated with a portion of our forecasted U.S. dollar ("USD")-denominated inventory purchases made by certain European subsidiaries, for a total notional amount of €5.3 million ($6.4 million).

We also entered into a series of foreign currency contracts to hedge the currency risk associated with a portion of our forecasted Euro-denominated sales of finished goods by one of our USD functional-currency subsidiaries for a total notional amount of €4.7 million ($5.6 million).

In addition, we entered into several contracts which involve both a written and a purchased option to hedge the currency risk associated with a portion of our forecasted Yen-denominated inventory purchases made by West in the U.S. The notional amounts of these contracts include ¥396.4 million of a derivative asset and ¥396.4 million of a derivative liability, or $3.3 million each.

Lastly, we entered into several contracts which involve both a written and a purchased option to hedge the currency risk associated with a portion of our forecasted Yen-denominated inventory purchases made by certain European subsidiaries. The notional amounts of these contracts include ¥214.1 million of a derivative asset and ¥214.1 million of a derivative liability, or $1.8 million each.

At September 30, 2015, a portion of our debt consisted of borrowings denominated in currencies other than USD. We have designated our €61.1 million ($68.7 million) Euro note B and our €21.0 million ($23.6 million) Euro-denominated borrowings under our multi-currency revolving credit facility as a hedge of our net investment in certain European subsidiaries. A cumulative foreign currency translation gain of $15.0 million pre-tax ($9.5 million after tax) on this debt was recorded within accumulated other comprehensive loss as of September 30, 2015. We have also designated our ¥500.0 million ($4.2 million) Yen-denominated borrowings under our multi-currency revolving credit facility as a hedge of our net investment in Daikyo. At September 30, 2015, there was a cumulative foreign currency translation gain on this Yen-denominated debt of $1.2 million pre-tax ($0.8 million after tax) which was also included within accumulated other comprehensive loss.

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Commodity Price Risk

Many of our Packaging Systems products are made from synthetic elastomers, which are derived from the petroleum refining process. We purchase the majority of our elastomers via long-term supply contracts, some of which contain clauses that provide for surcharges related to fluctuations in crude oil prices. The following economic hedges did not qualify for hedge accounting treatment since they did not meet the highly effective requirement at inception.

In November 2014, we purchased a series of call options for a total of 134,700 barrels of crude oil to mitigate our exposure to such oil-based surcharges and protect operating cash flows with regard to a portion of our forecasted elastomer purchases through December 2015. With these contracts we may benefit from a decline in crude oil prices, as there is no downward exposure other than the $0.1 million premium that we paid to purchase the contracts.

During the three and nine months endedSeptember 30, 2015, the loss recorded in cost of goods and services sold related to these call options was less than $0.1 million.

Effects of Derivative Instruments on Financial Position and Results of Operations

The following tables summarize the effects of derivative instruments designated as hedges on other comprehensive income (“OCI”) and earnings, net of tax:

	Amount of Gain (Loss) Recognized in OCI for					Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for						Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Three Months Ended September 30,					Three Months Ended September 30,
($ in millions)	2015			2014		2015			2014
Cash Flow Hedges:
Foreign currency hedge contracts	$	—		$	0.5	$	(0.4	)	$	(0.2	)	Net sales
Foreign currency hedge contracts	(0.3		)	0.2		—			—			Cost of goods and services sold
Interest rate swap contracts	(0.1		)	0.1		0.3			0.4			Interest expense
Forward treasury locks	—			—		0.1			0.1			Interest expense
Total	$	(0.4	)	$	0.8	$	—		$	0.3
Net Investment Hedges:
Foreign currency-denominated debt	$	(0.8	)	$	5.1	$	—		$	—		Other expense
Total	$	(0.8	)	$	5.1	$	—		$	—

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	Amount of Gain (Loss) Recognized in OCI for						Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for						Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Nine Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Cash Flow Hedges:
Foreign currency hedge contracts	$	1.4		$	0.4		$	(1.1	)	$	(0.1	)	Net sales
Foreign currency hedge contracts	0.3			0.3			—			—			Cost of goods and services sold
Interest rate swap contracts	(0.4		)	(0.2		)	1.1			1.2			Interest expense
Forward treasury locks	—			—			0.2			0.2			Interest expense
Total	$	1.3		$	0.5		$	0.2		$	1.3
Net Investment Hedges:
Foreign currency-denominated debt	$	4.7		$	5.6		$	—		$	—		Other expense
Total	$	4.7		$	5.6		$	—		$	—

For the three and nine months endedSeptember 30, 2015 and 2014, there was no material ineffectiveness related to our hedges.

Note 7:  Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels:

• Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The following tables present the assets and liabilities recorded at fair value on a recurring basis:

	Balance at		Basis of Fair Value Measurements
($ in millions)	September 30, 2015		Level 1		Level 2		Level 3
Assets:
Deferred compensation assets	$	6.4	$	6.4	$	—	$	—
Foreign currency contracts	1.0		—		1.0		—
	$	7.4	$	6.4	$	1.0	$	—
Liabilities:
Contingent consideration	$	5.7	$	—	$	—	$	5.7
Deferred compensation liabilities	8.2		8.2		—		—
Interest rate swap contracts	2.5		—		2.5		—
	$	16.4	$	8.2	$	2.5	$	5.7

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	Balance at		Basis of Fair Value Measurements
($ in millions)	December 31, 2014		Level 1		Level 2		Level 3
Assets:
Deferred compensation assets	$	6.6	$	6.6	$	—	$	—
Foreign currency contracts	0.2		—		0.2		—
	$	6.8	$	6.6	$	0.2	$	—
Liabilities:
Contingent consideration	$	5.0	$	—	$	—	$	5.0
Deferred compensation liabilities	8.7		8.7		—		—
Interest rate swap contracts	3.6		—		3.6		—
	$	17.3	$	8.7	$	3.6	$	5.0

Deferred compensation assets are included within other noncurrent assets and are valued using a market approach based on quoted market prices in an active market. The fair value of our foreign currency contracts, included within other current assets, is valued using an income approach based on quoted forward foreign exchange rates and spot rates at the reporting date. The fair value of our contingent consideration, included within other current and other long-term liabilities, is discussed further in the section related to Level 3 fair value measurements. The fair value of deferred compensation liabilities is based on quoted prices of the underlying employees’ investment selections and is included within other long-term liabilities. Interest rate swap contracts, included within other current and long-term liabilities, are valued based on the terms of the contract and observable market inputs (i.e., LIBOR, Eurodollar synthetic forwards and swap spreads). Please refer to Note 6, Derivative Financial Instruments, for further discussion of our derivatives.

Level 3 Fair Value Measurements

The fair value of the contingent consideration liability related to our SmartDose^TM electronic patch injector system (“SmartDose contingent consideration”) was initially determined using a probability-weighted income approach, and is revalued at each reporting date or more frequently if circumstances dictate. Changes in the fair value of this obligation are recorded as income or expense within other expense in our condensed consolidated statements of income. The significant unobservable inputs used in the fair value measurement of the contingent consideration are the sales projections, the probability of success factors, and the discount rate. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. As development and commercialization of SmartDose progresses, we may need to update the sales projections, the probability of success factors, and the discount rate used. This could result in a material increase or decrease to the contingent consideration liability.

The following table provides a summary of changes in our Level 3 fair value measurements:

	Nine Months Ended September 30,
	2015			2014
Beginning Balance	$	5.0		$	4.3
Increase in fair value recorded in earnings	0.8			1.0
Payments	(0.1		)	(0.2		)
Ending Balance	$	5.7		$	5.1

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Other Financial Instruments

We believe that the carrying amounts of our cash and cash equivalents and accounts receivable approximate their fair values due to their near-term maturities. The estimated fair value of long-term debt is based on quoted market prices for debt issuances with similar terms and maturities and is classified as Level 2 within the fair value hierarchy. At September 30, 2015, the estimated fair value of long-term debt was $231.3 million compared to a carrying amount of $231.5 million. At December 31, 2014, the estimated fair value of long-term debt was $311.4 million and the carrying amount was $309.5 million.

Note 8:  Stock-Based Compensation

The 2011 Omnibus Incentive Compensation Plan (the "2011 Plan") provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. The terms and conditions of awards to be granted are determined by our Board's nominating and corporate governance and compensation committees. Vesting requirements vary by award. At September 30, 2015, there were 2,639,265 shares remaining in the 2011 Plan for future grants.

During the nine months ended September 30, 2015, we granted 905,028 stock options at a weighted average exercise price of $55.63 per share based on the grant-date fair value of our stock to key employees under the 2011 Plan, including shares issued in conjunction with the Chief Executive Officer ("CEO") succession. The weighted average grant date fair value of options granted was $10.50 per share as determined by the Black-Scholes option valuation model using the following weighted average assumptions: a risk-free interest rate of 1.61%; expected life of 5.8 years based on prior experience; stock volatility of 19.2% based on historical data; and a dividend yield of 0.9%. Stock option expense is recognized over the vesting period, net of forfeitures.

During the nine months ended September 30, 2015, we granted 140,369 performance vesting share (“PVS”) awards at a weighted grant-date fair value of $55.26 per share to key employees under the 2011 Plan, including shares issued in conjunction with the CEO succession. Each PVS award entitles the holder to one share of our common stock if the annual growth rate of revenue and return on invested capital targets are achieved over a three-year performance period. Shares earned under PVS awards may vary from 0% to 200% of an employee’s targeted award. The fair value of PVS awards is based on the market price of our stock at the grant date and is recognized as expense over the performance period, adjusted for estimated target outcomes and net of forfeitures.

In addition, during the nine months ended September 30, 2015, we granted 30,499 restricted share awards at a grant-date fair value of $57.38 per share to the new CEO under the 2011 Plan. The fair value of the award is based on the market price of our stock at the grant date and is recognized as expense over the vesting period.

Total stock-based compensation expense was $3.6 million and $24.4 million for the three and nine months endedSeptember 30, 2015, respectively. Included in the amount for the nine months ended September 30, 2015 was a $10.4 million charge related to executive retirements, which was recorded within other expense, with the remainder of the balance recorded in selling, general and administrative expenses. Please refer to Note 11, Other Expense, for further discussion of this charge. For the three and nine months endedSeptember 30, 2014, total stock-based compensation expense was $3.6 million and $12.5 million, respectively.

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Note 9:  Benefit Plans

The components of net periodic benefit cost for the three months ended September 30 were as follows ($ in millions):

	Pension benefits						Other retirement benefits						Total
	2015			2014			2015			2014			2015			2014
Service cost	$	2.5		$	2.3		$	0.1		$	0.1		$	2.6		$	2.4
Interest cost	3.4			4.2			0.1			0.1			3.5			4.3
Expected return on assets	(4.9		)	(4.7		)	—			—			(4.9		)	(4.7		)
Amortization of prior service credit	(0.3		)	(0.3		)	—			—			(0.3		)	(0.3		)
Recognized actuarial losses (gains)	1.6			1.3			(0.4		)	(0.5		)	1.2			0.8
Settlements	49.0			—			—			—			49.0			—
Net periodic benefit cost	$	51.3		$	2.8		$	(0.2	)	$	(0.3	)	$	51.1		$	2.5

	Pension benefits				Other retirement benefits						Total
	2015		2014		2015			2014			2015		2014
U.S. plans	$	50.7	$	2.0	$	(0.2	)	$	(0.3	)	$	50.5	$	1.7
International plans	0.6		0.8		—			—			0.6		0.8
Net periodic benefit cost	$	51.3	$	2.8	$	(0.2	)	$	(0.3	)	$	51.1	$	2.5

The components of net periodic benefit cost for the nine months ended September 30 were as follows ($ in millions):

	Pension benefits						Other retirement benefits						Total
	2015			2014			2015			2014			2015			2014
Service cost	$	8.0		$	7.4		$	0.4		$	0.3		$	8.4		$	7.7
Interest cost	11.2			12.7			0.3			0.3			11.5			13.0
Expected return on assets	(16.3		)	(14.4		)	—			—			(16.3		)	(14.4		)
Amortization of transition obligation	0.1			0.1			—			—			0.1			0.1
Amortization of prior service credit	(1.0		)	(1.0		)	—			—			(1.0		)	(1.0		)
Recognized actuarial losses (gains)	4.8			3.6			(1.1		)	(1.2		)	3.7			2.4
Settlements	49.0			—			—			—			49.0			—
Net periodic benefit cost	$	55.8		$	8.4		$	(0.4	)	$	(0.6	)	$	55.4		$	7.8

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	Pension benefits				Other retirement benefits						Total
	2015		2014		2015			2014			2015		2014
U.S. plans	$	53.8	$	6.1	$	(0.4	)	$	(0.6	)	$	53.4	$	5.5
International plans	2.0		2.3		—			—			2.0		2.3
Net periodic benefit cost	$	55.8	$	8.4	$	(0.4	)	$	(0.6	)	$	55.4	$	7.8

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge within other expense, in connection with our purchase of a group annuity contract from Metropolitan Life Insurance Company (“MetLife”) to settle $139.4 million of our $313.6 million outstanding pension benefit obligation under our U.S. qualified pension plan. MetLife will assume the obligation to pay future pension benefits and provide administrative services beginning November 1, 2015 for approximately 1,750 retirees and surviving beneficiaries who retired prior to January 1, 2015 and are currently receiving payments from this plan. The purchase was funded directly by plan assets.

In addition, we made contributions to the U.S. qualified pension plan in the amount of $1.3 million in September 2015 and $13.7 million in October 2015, in order to maintain the plan's funded status as of the transaction date.

Note 10:  Accumulated Other Comprehensive Loss

The following table presents the changes in the components of accumulated other comprehensive loss, net of tax, for the nine months endedSeptember 30, 2015:

($ in millions)	Losses on cash flow hedges			Unrealized gains on investment securities		Defined benefit pension and other postretirement plans			Foreign currency translation			Total
Balance, December 31, 2014	$	(4.3	)	$	4.7	$	(64.6	)	$	(55.0	)	$	(119.2	)
Other comprehensive income (loss) before reclassifications	1.3			—		(11.4		)	(58.0		)	(68.1		)
Amounts reclassified out	0.2			—		32.7			—			32.9
Other comprehensive income (loss), net of tax	1.5			—		21.3			(58.0		)	(35.2		)
Balance, September 30, 2015	$	(2.8	)	$	4.7	$	(43.3	)	$	(113.0	)	$	(154.4	)

During the third quarter of 2015, in connection with our purchase of a group annuity contract from MetLife, we recorded a $49.0 million pension settlement charge related to the acceleration of a portion of our unrecognized actuarial losses. Please refer to Note 9, Benefit Plans, for additional details.

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A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,						Location on Statement of Income
Detail of components	2015			2014			2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	0.4		$	0.2		$	1.3		$	0.2		Cost of goods and services sold
Interest rate swap contracts	(0.4		)	(0.7		)	(1.7		)	(2.0		)	Interest expense
Forward treasury locks	(0.1		)	(0.1		)	(0.3		)	(0.3		)	Interest expense
Total before tax	(0.1		)	(0.6		)	(0.7		)	(2.1		)
Tax expense	0.1			0.3			0.5			0.8
Net of tax	$	—		$	(0.3	)	$	(0.2	)	$	(1.3	)
Amortization of defined benefit pension and other postretirement plans:
Transition obligation	$	—		$	—		$	(0.1	)	$	(0.1	)	(a)
Prior service cost	0.3			0.3			1.0			1.0			(a)
Actuarial losses	(50.2		)	(0.8		)	(52.7		)	(2.4		)	(a)
Total before tax	(49.9		)	(0.5		)	(51.8		)	(1.5		)
Tax expense	18.5			0.2			19.1			0.5
Net of tax	$	(31.4	)	$	(0.3	)	$	(32.7	)	$	(1.0	)
Total reclassifications for the period, net of tax	$	(31.4	)	$	(0.6	)	$	(32.9	)	$	(2.3	)

(a)     These components are included in the computation of net periodic benefit cost. Please refer to Note 9, Benefit Plans, for additional details.

Note 11:  Other Expense

Other expense consists of:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Pension settlement charge	$	49.0		$	—		$	49.0		$	—
Executive retirement and related costs	—			—			10.9			—
License costs	—			1.2			—			1.2
Development income	(0.3		)	(0.3		)	(1.1		)	(1.2		)
Contingent consideration costs	0.5			0.3			0.8			1.0
Other items	(0.5		)	(0.9		)	(1.5		)	0.3
	$	48.7		$	0.3		$	58.1		$	1.3

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge in connection with our purchase of a group annuity contract from MetLife. Please refer to Note 9, Benefit Plans, for additional details regarding this purchase.

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In addition, during the nine months ended September 30, 2015, we recorded a $10.9 million charge for executive retirement and related costs, which included $2.4 million for a long-term incentive plan award for the Company’s previous CEO, $8.0 million for the revaluation of modified outstanding awards to provide for continued vesting for the Company’s previous CEO and Senior Vice President of Human Resources in conjunction with their retirement, and $0.5 million for other costs, including relocation and legal fees.

During the three and nine months ended September 30, 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.

Development income of $0.3 million and $1.1 million was recognized within our Pharmaceutical Delivery Systems segment ("Delivery Systems") during the three and nine months ended September 30, 2015, respectively, related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of SmartDose within a specific therapeutic area. As of September 30, 2015, there was $16.3 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $14.8 million was included in other long-term liabilities. The unearned income is being recognized as development income on a straight-line basis over the remaining term of the agreement. The agreement does not include a future minimum purchase commitment from the customer. During the three and nine months endedSeptember 30, 2014, we recorded development income of $0.3 million and $1.2 million, respectively, within Delivery Systems, most of which related to the nonrefundable customer payment described above.

Contingent consideration costs represent changes in the fair value of the SmartDose contingent consideration. Please refer to Note 7, Fair Value Measurements, for additional details.

Other items consist of foreign exchange transaction gains and losses, gains and losses on the sale of fixed assets, and miscellaneous income and charges.

Note 12:  Income Taxes

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items.

During the three months ended September 30, 2015, we recorded a tax benefit of $6.6 million, as compared to tax expense of $11.7 million that was recorded during the three months ended September 30, 2014. Our third quarter 2015 results include a tax benefit of $17.9 million in connection with the $49.0 million pension settlement charge discussed in Note 9, Benefit Plans.

The provision for income taxes was $15.1 million and $35.5 million for the nine months ended September 30, 2015 and 2014, respectively. In addition to the tax benefit on the pension settlement charge, our 2015 year-to-date results include a $4.0 million tax benefit in connection with the $10.9 million charge for the executive retirement and related costs discussed in Note 11, Other Expense.

Note 13:  Commitments and Contingencies

From time to time, we are involved in product liability matters and other legal proceedings and claims generally incidental to our normal business activities. We accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. While the outcome of current proceedings cannot be accurately predicted, we believe their ultimate resolution should not have a material adverse effect on our business, financial condition, results of operations or liquidity.

There have been no significant changes to the commitments and contingencies included in our 2014 Annual Report.

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Note 14:  Segment Information

Our business operations are organized into two reportable segments, which are aligned with the underlying markets and customers they serve. Our reportable segments are the Pharmaceutical Packaging Systems segment (“Packaging Systems”) and Delivery Systems. Packaging Systems develops, manufactures and sells primary packaging components and systems for injectable drug delivery, including stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. Delivery Systems develops, manufactures and sells safety and administration systems, multi-component systems for drug administration, and a variety of custom contract-manufacturing solutions targeted to the healthcare and consumer-products industries. In addition, Delivery Systems is responsible for the continued development and commercialization of our line of proprietary, multi-component systems for injectable drug administration and other healthcare applications.

Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items.

The following table presents information about our reportable segments, reconciled to consolidated totals:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Net sales:
Packaging Systems	$	247.2		$	251.7		$	749.3		$	772.6
Delivery Systems	97.6			104.4			291.7			299.5
Intersegment sales elimination	(0.3		)	(0.2		)	(0.9		)	(0.5		)
Total net sales	$	344.5		$	355.9		$	1,040.1		$	1,071.6
Operating profit (loss):
Packaging Systems	$	56.5		$	52.8		$	179.2		$	167.1
Delivery Systems	1.3			4.8			4.8			8.3
Corporate	(12.3		)	(12.4		)	(40.7		)	(36.8		)
Other unallocated items	(49.0		)	(1.2		)	(59.9		)	(1.2		)
Total operating (loss) profit	$	(3.5	)	$	44.0		$	83.4		$	137.4
Interest expense	3.7			4.5			11.2			12.7
Interest income	0.5			1.8			1.3			2.7
(Loss) income before income taxes	$	(6.7	)	$	41.3		$	73.5		$	127.4

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge related to our purchase of a group annuity contract from MetLife. Please refer to Note 9, Benefit Plans, for additional details. In addition, the nine month period ended September 30, 2015 includes a $10.9 million charge for executive retirement and related costs. Please refer to Note 11, Other Expense, for additional details regarding this charge.

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During the three and nine months ended September 30, 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.

Note 15:  Subsequent Event

On October 15, 2015, we entered into a senior unsecured, multi-currency revolving credit facility agreement (the "New Credit Agreement") that replaced our prior $300.0 million revolving credit facility, which was scheduled to expire in April 2017. The New Credit Agreement, which expires in October 2020, contains a $300.0 million credit facility, which may be increased from time to time by up to $100.0 million in the aggregate, subject to the satisfaction of certain conditions and upon approval by the banks. Up to $30.0 million of the credit facility is available for swing-line loans and up to $30.0 million is available for the issuance of standby letters of credit. Borrowings under the revolving credit facility bear interest at either the base rate or at the applicable LIBOR rate, plus a tiered margin based on the ratio of our total debt to modified earnings before interest, taxes, depreciation and amortization ("EBITDA"), ranging from 0 to 75 basis points for base rate loans and 100 to 175 basis points for LIBOR rate loans. Consistent with our previous revolving credit facility, the New Credit Agreement contains representations and covenants that require compliance with, among other restrictions, a maximum leverage ratio and a minimum interest coverage ratio. The New Credit Agreement also contains usual and customary default provisions, and limitations on liens securing indebtedness, asset sales, distributions and acquisitions.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following discussion is intended to further the reader’s understanding of the consolidated financial condition and results of operations of our Company. It should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and accompanying notes included in our 2014 Annual Report. These historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks discussed in Part I, Item 1A of our 2014 Annual Report and in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Throughout this section, references to “Notes” refer to the footnotes to our condensed consolidated financial statements (unaudited) in Part I, Item 1 of this Quarterly Report on Form 10-Q, unless otherwise indicated.

Non-GAAP Financial Measures

For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. The constant-currency amounts are calculated by translating the current year’s functional currency results at the prior-year period’s exchange rate. We may also refer to consolidated operating (loss) profit excluding the effects of unallocated items. The re-measured results excluding effects from currency translation and excluding the effects of unallocated items are not in conformity with U.S. GAAP and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations, and believes that this information provides users a valuable insight into our results.

Our Operations

Our business operations are organized into two reportable segments, which are aligned with the underlying markets and customers they serve. Our reportable segments are Packaging Systems and Delivery Systems. Packaging Systems develops, manufactures and sells primary packaging components and systems for injectable drug delivery, including stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. Delivery Systems develops, manufactures and sells safety and administration systems, multi-component systems for drug administration, and a variety of custom contract-manufacturing solutions targeted to the healthcare and consumer-products industries. In addition, Delivery Systems is responsible for the continued development and commercialization of our line of proprietary, multi-component systems for injectable drug administration and other healthcare applications. We also maintain global partnerships to share technologies and market products with affiliates in Japan and Mexico.

2015 Financial Performance Summary

Our 2015 results continue to be affected by the weakening of the Euro and other foreign currencies in relation to USD. Foreign currency translation reduced our third quarter 2015 net income and net income per diluted share by $4.2 million and $0.06, respectively, as compared to the same period in 2014. For the nine months ended September 30, 2015, foreign currency translation lowered net income and net income per diluted share by $17.6 million and $0.24, respectively, as compared to the same period in 2014.

Our 2015 results also include a $49.0 million pension settlement charge, which reduced net income and net income per diluted share by $31.1 million and $0.42, respectively, as compared to the same period in 2014, and a $10.9 million charge for executive retirement and related costs, which lowered net income and net income per diluted share by $6.9 million and $0.09, respectively, as compared to the same period in 2014.

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Excluding foreign currency effects, the pension settlement charge, and the executive retirement charge, our net sales and net income per diluted share increased by 6.4% and 21.2%, respectively, for the nine months ended September 30, 2015, as compared to the same period in 2014. At September 30, 2015, our cash and cash equivalents balance totaled $256.8 million and our borrowing capacity under our multi-currency revolving credit facility was $269.4 million. In addition, in October 2015, we entered into the New Credit Agreement that replaced our prior revolving credit facility, which was scheduled to expire in April 2017. The New Credit Agreement expires in October 2020.

We appointed Eric M. Green to serve as our Chief Executive Officer, effective April 24, 2015, succeeding Donald E. Morel, Jr., Ph.D., who previously served as Chairman of our Board of Directors and Chief Executive Officer. Dr. Morel continued to serve as Chairman of our Board of Directors until June 30, 2015, and retired effective as of July 1, 2015.

RESULTS OF OPERATIONS

We evaluate the performance of our segments based upon, among other things, segment net sales and operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items.

Percentages in the following tables and throughout the Results of Operations section may reflect rounding adjustments.

Net Sales

The following table presents net sales, consolidated and by reportable segment, for the three months ended September 30, 2015 and 2014:

	Three Months Ended September 30,						% Change
($ in millions)	2015			2014			As-Reported		Ex-Currency
Packaging Systems	$	247.2		$	251.7		(1.8	)%	8.5	%
Delivery Systems	97.6			104.4			(6.5	)%	(2.6	)%
Intersegment sales elimination	(0.3		)	(0.2		)	—		—
Consolidated net sales	$	344.5		$	355.9		(3.2	)%	5.2	%

Consolidated net sales decreased by $11.4 million, or 3.2%, for the three months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $30.0 million. Excluding foreign currency effects, net sales for the three months ended September 30, 2015 increased by $18.7 million, or 5.2%, as compared to the same period in 2014. Consolidated net sales originating in the United States for the three months ended September 30, 2015 were $168.8 million, an increase of 3.5% from the same period in 2014. Consolidated net sales generated outside of the United States (mainly in Europe) for the three months ended September 30, 2015 were $175.7 million, a decrease of 8.9% from the same period in 2014 primarily due to an unfavorable foreign currency impact. Excluding foreign currency effects, consolidated net sales generated outside of the United States for the three months ended September 30, 2015 increased by 6.7% from the same period in 2014. The average Euro to USD exchange rate decreased from $1.33 for the three months ended September 30, 2014 to $1.11 for the three months ended September 30, 2015.

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Packaging Systems – Packaging Systems’ net sales decreased by $4.5 million, or 1.8%, for the three months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $26.0 million. Excluding foreign currency effects, net sales for the three months ended September 30, 2015 increased by $21.5 million, or 8.5%, as compared to the same period in 2014, due to continued growth in our high-value product offerings. An improvement in product mix and higher sales volumes contributed 6.8 percentage points of the increase, and sales price increases contributed 1.7 percentage points of the increase. Our high-value product offerings represented 45.9% of Packaging Systems' net sales for the three months ended September 30, 2015, as compared to 43.8% for the same period in 2014.

Delivery Systems – Delivery Systems’ net sales decreased by $6.8 million, or 6.5%, for the three months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $4.0 million. Excluding foreign currency effects, net sales for the three months ended September 30, 2015 decreased by $2.8 million, or 2.6%, as compared to the same period in 2014, due to decreases in sales of administration systems for drug reconstitution and SmartDose, as well as the sale of a contract services business during the three months ended September 30, 2014. Contract manufacturing sales, particularly sales of glucose monitoring devices, and CZ product sales increased during the three months ended September 30, 2015, as compared to the same period in 2014. Proprietary net sales represented 22.4% of Delivery Systems' net sales for the three months ended September 30, 2015, as compared to 27.5% for the same period in 2014.

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.

The following table presents net sales, consolidated and by reportable segment, for the nine months endedSeptember 30, 2015 and 2014:

	Nine Months Ended September 30,						% Change
($ in millions)	2015			2014			As-Reported		Ex-Currency
Packaging Systems	$	749.3		$	772.6		(3.0	)%	8.0	%
Delivery Systems	291.7			299.5			(2.6	)%	2.3	%
Intersegment sales elimination	(0.9		)	(0.5		)	—		—
Consolidated net sales	$	1,040.1		$	1,071.6		(2.9	)%	6.4	%

Consolidated net sales decreased by $31.5 million, or 2.9%, for the nine months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $100.0 million. Excluding foreign currency effects, net sales for the nine months ended September 30, 2015 increased by $68.5 million, or 6.4%, as compared to the same period in 2014. Consolidated net sales originating in the United States for the nine months ended September 30, 2015 were $492.5 million, an increase of 5.0% from the same period in 2014. Consolidated net sales generated outside of the United States (mainly in Europe) for the nine months ended September 30, 2015 were $547.6 million, a decrease of 9.1% from the same period in 2014 primarily due to an unfavorable foreign currency impact. Excluding foreign currency effects, consolidated net sales generated outside of the United States for the nine months ended September 30, 2015 increased by 7.5% from the same period in 2014. The average Euro to USD exchange rate decreased from $1.36 for the nine months ended September 30, 2014 to $1.12 for the nine months ended September 30, 2015.

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Packaging Systems – Packaging Systems’ net sales decreased by $23.3 million, or 3.0%, for the nine months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $85.3 million. Excluding foreign currency effects, net sales for the nine months ended September 30, 2015 increased by $62.0 million, or 8.0%, as compared to the same period in 2014, due to continued growth in our high-value product offerings. An improvement in product mix and higher sales volumes contributed 6.7 percentage points of the increase, and sales price increases contributed 1.3 percentage points of the increase. Our high-value product offerings represented 46.1% of Packaging Systems' net sales for the nine months ended September 30, 2015, as compared to 43.4% for the same period in 2014.

Delivery Systems – Delivery Systems’ net sales decreased by $7.8 million, or 2.6%, for the nine months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $14.7 million. Excluding foreign currency effects, net sales for the nine months ended September 30, 2015 increased by $6.9 million, or 2.3%, as compared to the same period in 2014, due to an increase in contract manufacturing sales, particularly sales of glucose monitoring devices, as well as increased sales of safety systems and CZ products, all of which were partially offset by the impact of the sale of a contract services business during the nine months ended September 30, 2014 and decreases in sales of administration systems for drug reconstitution and SmartDose. Sales volumes contributed the entirety of the increase. Proprietary net sales represented 25.1% of Delivery Systems' net sales for the nine months ended September 30, 2015, as compared to 25.8% for the same period in 2014.

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.

Gross Profit

The following table presents gross profit and related gross margins, consolidated and by reportable segment:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Packaging Systems:
Gross Profit	$	91.3		$	88.8		$	285.0		$	279.5
Gross Margin	37.0		%	35.3		%	38.0		%	36.2		%
Delivery Systems:
Gross Profit	$	17.0		$	21.1		$	51.2		$	58.6
Gross Margin	17.3		%	20.3		%	17.5		%	19.6		%
Consolidated Gross Profit	$	108.3		$	109.9		$	336.2		$	338.1
Consolidated Gross Margin	31.4		%	30.9		%	32.3		%	31.5		%

Consolidated gross profit decreased by $1.6 million, or 1.5%, and $1.9 million, or 0.6%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, including an unfavorable foreign currency impact of $9.0 million and $34.4 million for the three and nine months ended September 30, 2015, respectively. Consolidated gross margin increased by 0.5 margin points and 0.8 margin points for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014.

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Packaging Systems – Packaging Systems’ gross profit increased by $2.5 million, or 2.8%, and $5.5 million, or 2.0%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, despite an unfavorable foreign currency impact of $8.3 million and $30.3 million for the three and nine months ended September 30, 2015, respectively. Packaging Systems’ gross margin increased by 1.7 margin points and 1.8 margin points for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, as product mix improvements, sales price increases and lower raw material costs were partially offset by increased labor and overhead costs.

Delivery Systems – Delivery Systems’ gross profit decreased by $4.1 million, or 19.4%, for the three months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $0.7 million. Delivery Systems’ gross margin decreased by 3.0 margin points for the three months ended September 30, 2015, as compared to the same period in 2014, as a result of an unfavorable mix of products sold and increased overhead and depreciation related to new capabilities supporting both proprietary and contract manufacturing programs, partially offset by lower raw material costs.

Delivery Systems’ gross profit decreased by $7.4 million, or 12.6%, for the nine months ended September 30, 2015, as compared to the same period in 2014, including an unfavorable foreign currency impact of $4.1 million. Delivery Systems’ gross margin decreased by 2.1 margin points for the nine months ended September 30, 2015, as compared to the same period in 2014, as a result of increased overhead and depreciation related to new capabilities supporting both proprietary and contract manufacturing programs and the impact of foreign currency.

Research and Development ("R&D") Costs

The following table presents R&D costs, consolidated and by reportable segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions)	2015		2014		2015		2014
Packaging Systems	$	3.6	$	4.5	$	9.8	$	12.9
Delivery Systems	4.9		5.1		14.3		16.6
Consolidated R&D Costs	$	8.5	$	9.6	$	24.1	$	29.5

Consolidated R&D costs decreased by $1.1 million, or 11.5%, and $5.4 million, or 18.3%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, including the impact of foreign currency, which decreased R&D costs by $0.2 million and $0.7 million for the three and nine months ended September 30, 2015, respectively.

Packaging Systems – Packaging Systems' R&D costs decreased by $0.9 million, or 20.0%, and $3.1 million, or 24.0%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, due to project cancellation costs incurred during the three months ended September 30, 2014, the reallocation of resources to commercial projects during the three and nine months ended September 30, 2015, and the impact of foreign currency, which decreased R&D costs by $0.2 million and $0.6 million for the three and nine months ended September 30, 2015, respectively.

Delivery Systems – Delivery Systems' R&D costs decreased by $0.2 million, or 3.9%, and $2.3 million, or 13.9%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, due to the reassignment of personnel to clinical trial production activities for SmartDose. The decrease for the nine months ended September 30, 2015, as compared to the same period in 2014, also reflects the completion of development work on the SelfDose self-injection system in 2014. Efforts remain focused on the further development of SmartDose and CZ products.

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Selling, General and Administrative (“SG&A”) Costs

The following table presents SG&A costs, consolidated and by reportable segment and corporate:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Packaging Systems	$	31.8		$	31.9		$	97.8		$	98.5
Delivery Systems	10.5			11.7			32.1			34.6
Corporate	12.3			12.4			40.7			36.8
Consolidated SG&A costs	$	54.6		$	56.0		$	170.6		$	169.9
SG&A as a % of net sales	15.8		%	15.7		%	16.4		%	15.9		%

Consolidated SG&A costs decreased by $1.4 million, or 2.5%, for the three months ended September 30, 2015, as compared to the same period in 2014, including the impact of foreign currency, which decreased SG&A costs by $3.0 million. Consolidated SG&A costs were 15.8% and 15.7% of consolidated net sales for the three months ended September 30, 2015 and 2014, respectively.

Consolidated SG&A costs increased by $0.7 million, or 0.4%, for the nine months ended September 30, 2015, as compared to the same period in 2014, despite the impact of foreign currency, which decreased SG&A costs by $9.7 million. Consolidated SG&A costs were 16.4% and 15.9% of consolidated net sales for the nine months ended September 30, 2015 and 2014, respectively.

Packaging Systems – Packaging Systems' SG&A costs decreased by $0.1 million, or 0.3%, and $0.7 million, or 0.7%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, due to the impact of foreign currency, which decreased SG&A costs by $2.8 million and $8.7 million for the three and nine months ended September 30, 2015, respectively, largely offset by increased incentive compensation costs and compensation costs related to merit increases, as well as increased consulting and sales costs.

Delivery Systems – Delivery Systems' SG&A costs decreased by $1.2 million, or 10.3%, and $2.5 million, or 7.2%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, due to decreased sales costs.

Corporate – Corporate’s SG&A costs decreased by $0.1 million, or 0.8%, for the three months ended September 30, 2015, as compared to the same period in 2014, as decreases in outside services, compensation costs, and U.S. pension costs were mostly offset by increased incentive compensation costs.

Corporate’s SG&A costs increased by $3.9 million, or 10.6%, for the nine months ended September 30, 2015, as compared to the same period in 2014, due to increased incentive compensation costs and stock-based compensation expense, both of which were partially offset by a decrease in U.S. pension costs.

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Other Expense

The following table presents other income and expense items, consolidated and by reportable segment and unallocated items:

(Income) expense	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Packaging Systems	$	(0.6	)	$	(0.4	)	$	(1.8	)	$	1.0
Delivery Systems	0.3			(0.5		)	—			(0.9		)
Unallocated items	49.0			1.2			59.9			1.2
Consolidated other expense	$	48.7		$	0.3		$	58.1		$	1.3

Other income and expense items, consisting of foreign exchange transaction gains and losses, gains and losses on the sale of fixed assets, development income, contingent consideration costs, and miscellaneous income and charges, are generally recorded within segment results.

Consolidated other expense increased by $48.4 million and $56.8 million for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014.

Packaging Systems – Packaging Systems' other income increased by $0.2 million and $2.8 million for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, due to foreign exchange transaction gains.

Delivery Systems – Delivery Systems' other expense (income) changed by $0.8 million for the three months ended September 30, 2015, as compared to the same period in 2014, primarily due to a gain recorded as a result of the sale of a contract services business during the three months ended September 30, 2014.

Delivery Systems' other income decreased by $0.9 million for the nine months ended September 30, 2015, as compared to the same period in 2014, primarily due to gains recorded during the nine months ended September 30, 2014, including the gain recorded as a result of the sale of a contract services business.

Unallocated items – During the three and nine months endedSeptember 30, 2015, we recorded a $49.0 million pension settlement charge in connection with our purchase of a group annuity contract from MetLife to settle $139.4 million of our $313.6 million outstanding pension benefit obligation under our U.S. qualified pension plan. MetLife will assume the obligation to pay future pension benefits and provide administrative services beginning November 1, 2015 for approximately 1,750 retirees and surviving beneficiaries who retired before January 1, 2015 and are currently receiving payments from this plan. The purchase was funded directly by plan assets. In addition, during the nine months ended September 30, 2015, we recorded a $10.9 million charge for executive retirement and related costs, including $2.4 million for a long-term incentive plan award for the Company’s previous CEO, $8.0 million for the revaluation of modified outstanding awards to provide for continued vesting for the Company’s previous CEO and Senior Vice President of Human Resources in conjunction with their retirement, and $0.5 million for other costs, including relocation and legal fees. During the three and nine months ended September 30, 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.

Since February 2013, when the Venezuelan government announced a devaluation of the bolivar, we have used the official exchange rate of 6.3 bolivars to USD to re-measure our Venezuelan subsidiary's financial statements. From December 2013 through February 2015, the Venezuelan government announced a series of changes to the regulations governing its currency exchange market, which included the expanded use of one currency exchange mechanism and the creation of two additional currency exchange mechanisms. As the majority of our currency purchases are transacted at the official exchange rate of 6.3 bolivars per USD, we have continued to re-measure our Venezuelan subsidiary's financial statements using the official exchange rate. At September 30, 2015, we had $3.8

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million in net monetary assets denominated in Venezuelan bolivars, including $2.2 million in cash and cash equivalents, and $2.8 million in non-monetary assets. Use of the official exchange rate has been restricted by the Venezuelan government to companies providing critical supplies, such as food and medicine. There is no guarantee that we will have access to the official exchange rate in the future. If we are no longer able to use the official exchange rate in the future, if we determine that we should use one of the other currency exchange mechanisms in Venezuela in the future, or if there is a significant devaluation in the official exchange rate, a pre-tax charge of up to $6.6 million could be required. We will continue to actively monitor the political and economic developments in Venezuela.

Operating Profit

The following table presents adjusted operating profit (loss), consolidated and by reportable segment, corporate and unallocated items:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Packaging Systems	$	56.5		$	52.8		$	179.2		$	167.1
Delivery Systems	1.3			4.8			4.8			8.3
Corporate	(12.3		)	(12.4		)	(40.7		)	(36.8		)
Adjusted consolidated operating profit	$	45.5		$	45.2		$	143.3		$	138.6
Unallocated items	(49.0		)	(1.2		)	(59.9		)	(1.2		)
Consolidated operating (loss) profit	$	(3.5	)	$	44.0		$	83.4		$	137.4
Consolidated operating (loss) profit margin	(1.0		)%	12.4		%	8.0		%	12.8		%

Consolidated operating (loss) profit decreased by $47.5 million and $54.0 million for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, mostly due to the $49.0 million pension settlement charge recorded during the three and nine months ended September 30, 2015 and an unfavorable foreign currency impact of $5.8 million and $24.4 million for the three and nine months ended September 30, 2015, respectively.

Packaging Systems – Packaging Systems’ operating profit increased by $3.7 million, or 7.0%, and $12.1 million, or 7.2%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, despite an unfavorable foreign currency impact of $5.4 million and $21.5 million for the three and nine months ended September 30, 2015, respectively, due to the factors described above.

Delivery Systems – Delivery Systems’ operating profit decreased by $3.5 million, or 72.9%, and $3.5 million, or 42.2%, for the three and nine months ended September 30, 2015, respectively, as compared to the same periods in 2014, including an unfavorable foreign currency impact of $0.4 million and $2.9 million for the three and nine months ended September 30, 2015, respectively, due to the factors described above.

Corporate – Corporate costs decreased by $0.1 million, or 0.8%, for the three months ended September 30, 2015, as compared to the same period in 2014, due to the factors described above.

Corporate costs increased by $3.9 million, or 10.6%, for the nine months ended September 30, 2015, as compared to the same period in 2014, due to the factors described above.

Unallocated items – Please refer to the Other Expense section for details.

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Interest Expense, Net

The following table presents interest expense, net, by significant component:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Interest expense	$	4.0		$	4.8		$	12.2		$	13.9
Capitalized interest	(0.3		)	(0.3		)	(1.0		)	(1.2		)
Interest income	(0.5		)	(1.8		)	(1.3		)	(2.7		)
Interest expense, net	$	3.2		$	2.7		$	9.9		$	10.0

Interest expense, net, increased by $0.5 million, or 18.5%, for the three months ended September 30, 2015, as compared to the same period in 2014, due to a decrease in interest income, partially offset by lower interest expense resulting from less debt outstanding during the three months ended September 30, 2015, as compared to the same period in 2014. Interest expense, net, decreased by $0.1 million, or 1.0%, for the nine months ended September 30, 2015, as compared to the same period in 2014, as lower interest expense resulting from less debt outstanding during the nine months ended September 30, 2015, as compared to the same period in 2014, was partially offset by a decrease in interest income. During the three and nine months ended September 30, 2014, we recorded $1.1 million in interest income following the settlement of a tax matter in Brazil.

Income Taxes

During the three months ended September 30, 2015, we recorded a tax benefit of $6.6 million, as compared to tax expense of $11.7 million that was recorded during the three months ended September 30, 2014. Our third quarter 2015 results include a tax benefit of $17.9 million in connection with the $49.0 million pension settlement charge discussed in Note 9, Benefit Plans.

The provision for income taxes was $15.1 million and $35.5 million for the nine months ended September 30, 2015 and 2014, respectively. In addition to the tax benefit on the pension settlement charge, our 2015 year-to-date results include a $4.0 million tax benefit in connection with the $10.9 million charge for the executive retirement and related costs discussed in Note 11, Other Expense.

Equity in Net Income of Affiliated Companies

Equity in net income of affiliated companies represents the contribution to earnings from our 25% ownership interest in Daikyo and our 49% ownership interest in four companies in Mexico. Equity in net income of affiliated companies increased by $0.2 million, or 14.3%, for the three months ended September 30, 2015, as compared to the same period in 2014, as favorable operating results in Mexico were partially offset by unfavorable operating results at Daikyo, which included an unfavorable foreign exchange impact. Equity in net income of affiliated companies remained constant at $3.8 million for the nine months ended September 30, 2015, as compared to the same period in 2014, as favorable operating results in Mexico were offset by unfavorable operating results at Daikyo.

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Net Income

Net income for the three months ended September 30, 2015 was $1.5 million, which included a $49.0 million pension settlement charge. Net income for the three months ended September 30, 2014 was $31.0 million, which included a $1.2 million charge for license costs associated with acquired in-process research.

Net income for the nine months ended September 30, 2015 was $62.2 million, which included a $49.0 million pension settlement charge and a $10.9 million charge for executive retirement and related costs. Net income for the nine months ended September 30, 2014 was $95.7 million, which included a $1.2 million charge for license costs associated with acquired in-process research.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

The following table presents cash flow data for the nine months endedSeptember 30:

($ in millions)	2015			2014
Net cash provided by operating activities	$	144.4		$	136.9
Net cash used in investing activities	(85.6		)	(77.7		)
Net cash used in financing activities	(39.9		)	(29.0		)

Net Cash Provided by Operating Activities – Net cash provided by operating activities increased by $7.5 million for the nine months ended September 30, 2015, as compared to the same period in 2014, due to increased earnings before non-cash charges, partially offset by increased pension plan contributions.

Net Cash Used in Investing Activities – Net cash used in investing activities increased by $7.9 million for the nine months ended September 30, 2015, as compared to the same period in 2014, largely due to sales and maturities of our remaining short-term investments in 2014. Net cash used in investing activities for the nine months ended September 30, 2015 included capital spending of $86.8 million, which increased by $2.0 million from the same period in 2014. The capital spending for the nine months ended September 30, 2015 consisted of spending for new products, expansion activity, and emerging markets, including projects in the U.S., Europe, and Asia.

In October 2014, we announced plans to expand our global manufacturing operations to include a new facility in Waterford, Ireland, which will produce packaging components for insulin injector cartridges and other high-value packaging components. Construction began in July 2015.

Net Cash Used in Financing Activities – Net cash used in financing activities increased by $10.9 million for the nine months ended September 30, 2015, as compared to the same period in 2014, due to an increase in net repayments and dividend payments during the nine months ended September 30, 2015, as compared to the same period in 2014.

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Liquidity and Capital Resources

The table below presents selected liquidity and capital measures:

($ in millions)	September 30, 2015			December 31, 2014
Cash and cash equivalents	$	256.8		$	255.3
Working capital	381.0			406.8
Total debt	302.5			336.7
Total equity	995.3			956.9
Net debt-to-total invested capital	4.4		%	7.8		%

Cash and cash equivalents include all instruments that have maturities of ninety days or less when purchased. Working capital is defined as current assets less current liabilities. Net debt is defined as total debt less cash and cash equivalents, and total invested capital is defined as the sum of net debt and total equity. Net debt and total invested capital are non-U.S. GAAP financial measures that are incorporated into our discussion and analysis as management believes that this information provides a valuable insight into our overall performance and financial position. The non-U.S. GAAP financial measures should not be used as a substitute for the comparable U.S. GAAP financial measures.

Cash and cash equivalents – Our cash and cash equivalents balance at September 30, 2015 consisted of cash held in depository accounts with banks around the world and cash invested in high quality, short-term investments. The cash and cash equivalents balance at September 30, 2015 included $16.6 million of cash held by subsidiaries within the U.S., and $240.2 million of cash held by subsidiaries outside of the U.S. During the fourth quarter of 2015, we intend to repatriate approximately $128.0 million of cash held by non-U.S. subsidiaries. We do not expect any additional tax costs associated with the planned repatriation. Deferred income taxes have not been provided for any funds remaining in the subsidiaries outside of the U.S., as such earnings are intended to be reinvested indefinitely outside of the U.S.

Working capital – Working capital at September 30, 2015 decreased by $25.8 million, or 6.3%, as compared to December 31, 2014, including a decrease of $17.6 million due to foreign currency translation. Excluding the impact of currency exchange rates, cash and cash equivalents, accounts receivable and inventories increased by $18.9 million, $24.7 million and $15.3 million, respectively, and total current liabilities increased by $67.2 million. Accounts receivable and inventories increased due to increased sales activity and timing, as accounts receivable and inventories are typically lower at year-end due to plant shutdowns; accounts receivable and inventory turnover measurements remained consistent between December 31, 2014 and September 30, 2015. The increase in current liabilities was primarily due to the reclassification of Euro note B from long-term debt to current liabilities between those period ends, partially offset by the maturity of our Series B floating rate notes on July 28, 2015 and a decrease in accounts payable.

Debt and credit facilities – The $34.2 million decrease in total debt at September 30, 2015, as compared to December 31, 2014, resulted from foreign currency rate fluctuations of $7.5 million and net repayments of $26.7 million.

Our sources of liquidity include our multi-currency revolving credit facility. At September 30, 2015, we had $27.8 million in outstanding borrowings under this facility, of which $4.2 million was denominated in Yen and $23.6 million was denominated in Euro. The total amount outstanding under this facility at September 30, 2015 and December 31, 2014 was classified as long-term. These borrowings, together with outstanding letters of credit of $2.8 million, resulted in a borrowing capacity available under this facility of $269.4 million at September 30, 2015.

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On October 15, 2015, we entered into the New Credit Agreement that replaced our prior $300.0 million revolving credit facility, which was scheduled to expire in April 2017. The New Credit Agreement, which expires in October 2020, contains a $300.0 million credit facility, which may be increased from time to time by up to $100.0 million in the aggregate, subject to the satisfaction of certain conditions and upon approval by the banks. Up to $30.0 million of the credit facility is available for swing-line loans and up to $30.0 million is available for the issuance of standby letters of credit. Borrowings under the revolving credit facility bear interest at either the base rate or at the applicable LIBOR rate, plus a tiered margin based on the ratio of our total debt to modified EBITDA, ranging from 0 to 75 basis points for base rate loans and 100 to 175 basis points for LIBOR rate loans. Consistent with our previous revolving credit facility, the New Credit Agreement contains representations and covenants that require compliance with, among other restrictions, a maximum leverage ratio and a minimum interest coverage ratio. The New Credit Agreement also contains usual and customary default provisions, and limitations on liens securing indebtedness, asset sales, distributions and acquisitions. We do not expect any significant limitations on our ability to access this source of funds.

Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At September 30, 2015, we were in compliance with all of our debt covenants.

We believe that cash on hand and cash generated from operations, together with availability under our multi-currency revolving credit facility, will be adequate to address our foreseeable liquidity needs based on our current expectations of our business operations, capital expenditures and scheduled payments of debt obligations.

Commitments and Contractual Obligations

A table summarizing the amounts and estimated timing of future cash payments resulting from commitments and contractual obligations was provided in our 2014 Annual Report. During the nine months endedSeptember 30, 2015, there were no material changes outside of the ordinary course of business to our commitments and contractual obligations.

OFF-BALANCE SHEET ARRANGEMENTS

At September 30, 2015, we had no off-balance sheet financing arrangements other than operating leases, unconditional purchase obligations incurred in the ordinary course of business, and outstanding letters of credit related to various insurance programs, as noted in our 2014 Annual Report.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no changes to the Critical Accounting Policies and Estimates disclosed in Part II, Item 7 of our 2014 Annual Report.

NEW ACCOUNTING STANDARDS

For information on new accounting standards that were adopted, and those issued but not yet adopted, during the nine months endedSeptember 30, 2015, and the impact, if any, on our financial position or results of operations, see Note 2, New Accounting Standards.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Our disclosure and analysis in this Form 10-Q contains some forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and forecasts. We also provide forward-looking statements in other materials we release to the public, as well as oral forward-looking statements. Such statements provide our current expectations or forecasts of future events. They do not relate strictly to historical or current facts. We have attempted, wherever possible, to identify forward-looking statements by using words such as “plan,” “expect,” “believe,” “intend,” “will,” “anticipate,” “estimate” and other words of similar meaning in conjunction with, among other things, discussions of future operations and financial performance, as well as our strategy for growth, product development, market position and expenditures.  All statements that address operating performance or events or developments that we expect or anticipate will occur in the future - including statements relating to sales and earnings per share growth, cash flows or uses, and statements expressing views about future operating results - are forward-looking statements.

Forward-looking statements are based on current expectations of future events. The forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance, and speak only as of their dates. Investors should realize that, if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements.

The following are some important factors that could cause our actual results to differ from our expectations in any forward-looking statements:

• sales demand and our ability to meet that demand;

• competition from other providers in our businesses, including customers’ in-house operations, and from lower-cost producers in emerging markets, which can impact unit volume, price and profitability;

• customers’ changing inventory requirements and manufacturing plans that alter existing orders or ordering patterns for the products we supply to them;

• the timing, regulatory approval and commercial success of customer products that incorporate our packaging and delivery products and systems;

• whether customers agree to incorporate West’s products and delivery systems with their new and existing drug products, the ultimate timing and successful commercialization of those products and systems, which involves substantial evaluations of the functional, operational, clinical and economic viability of the Company’s products, and the rate, timing and success of regulatory approval for the drug products that incorporate the Company’s components and systems;

• the timely and adequate availability of filling capacity, which is essential to conducting definitive stability trials and the timing of first commercialization of customers’ products in CZ prefilled syringes;

• average profitability, or mix, of products sold in any reporting period, including lower-than-expected sales growth of our high-value pharmaceutical packaging products, of CZ products, and of other proprietary safety and administration devices;

• maintaining or improving production efficiencies and overhead absorption;

• dependence on third-party suppliers and partners, some of which are single-source suppliers of critical materials and products, including our Japanese partner and affiliate, Daikyo;

• the loss of key personnel or highly-skilled employees;

• the availability and cost of skilled employees required to meet increased production, managerial, research and other needs, including professional employees and persons employed under collective bargaining agreements;

34

• interruptions or weaknesses in our supply chain, which could cause delivery delays or restrict the availability of raw materials, key purchased components and finished products;

• the successful and timely implementation of price increases necessary to offset rising production costs, including raw material prices, particularly petroleum-based raw materials;

• the cost and progress of development, regulatory approval and marketing of new products;

• our ability to obtain and maintain licenses in any jurisdiction in which we do business;

• the relative strength of USD in relation to other currencies, particularly the Euro, the Danish Krone, the Singapore Dollar, and Japanese Yen; and

• the potential adverse effects of global healthcare legislation on customer demand, product pricing and profitability.

This list sets forth many, but not all, of the factors that could affect our ability to achieve results described in any forward-looking statements. Investors should understand that it is not possible to predict or identify all of the factors and should not consider this list to be a complete statement of all potential risks and uncertainties. For further discussion of these and other factors, see the risk factors disclosed in Part I, Item 1A of our 2014 Annual Report. Except as required by law or regulation, we do not intend to update any forward-looking statements.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our exposure to market risk or the information provided in Part II, Item 7A of our 2014 Annual Report.

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure controls are controls and procedures designed to reasonably ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this quarterly report, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to our management, including our CEO and Chief Financial Officer (“CFO”), or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Our disclosure controls include some, but not all, components of our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

An evaluation was performed under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934), as of the end of the period covered by this quarterly report on Form 10-Q. Based on this evaluation, our CEO and CFO have concluded that, as of September 30, 2015, our disclosure controls and procedures are effective.

Changes in Internal Controls

During the quarter ended September 30, 2015, there have been no changes to our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

35

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 1A.  RISK FACTORS

There are no material changes to the risk factors disclosed in Part I, Item 1A of our 2014 Annual Report.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table shows information with respect to purchases of our common stock made during the three months ended September 30, 2015 by us or any of our “affiliated purchasers” as defined in Rule 10b-18(a)(3) under the Exchange Act. Dollars are shown in millions, except per share data.

Period	Total number of shares purchased (1)	Average price paid per share (1)		Total number of shares purchased as part of publicly announced plans or programs (2)	Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (2)
July 1 – 31, 2015	—	$	—	—	$	100.0
August 1 – 31, 2015	240	59.27		—	100.0
September 1 – 30, 2015	80	56.62		—	100.0
Total	320	$	58.61	—	$	100.0

(1) Includes 320 shares purchased on behalf of employees enrolled in the Non-Qualified Deferred

Compensation Plan for Designated Employees (Amended and Restated Effective January 1, 2008).

Under the plan, Company match contributions are delivered to the plan’s investment administrator,

who then purchases shares in the open market and credits the shares to individual plan accounts.

(2) In October 2014, our Board of Directors authorized a share repurchase program of up to $100.0 million of our common stock. As of September 30, 2015, no shares had been repurchased under this program. Authorization for this program expires on December 31, 2015.

36

ITEM 6.  EXHIBITS

Exhibit #	Description
3.1	Our Amended and Restated Articles of Incorporation are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
3.2	Our Bylaws, as amended through May 5, 2015, are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
4.1	Form of stock certificate for common stock is incorporated by reference from our annual report on Form 10-K dated May 6, 1999.
4.2	Article 5, 6, 8(c) and 9 of our Amended and Restated Articles of Incorporation are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
4.3	Article I and V of our Bylaws, as amended through May 5, 2015, are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
4.4	Instruments defining the rights of holders of long-term debt securities of West and its subsidiaries have been omitted. (1)
10.1	First Amendment to Credit Agreement, dated as of September 4, 2015, by and among West, certain of its subsidiaries, the several banks and other financial institutions party thereto, and PNC Bank, National Association, as administrative agent for the Lenders.
10.2	Credit Agreement, dated as of October 15, 2015, between West, certain of its subsidiaries, the lenders party thereto from time to time, PNC Bank, National Association, as Administrative Agent and PNC Capital Markets, LLC, as Sole Lead Arranger and Sole Bookrunner, is incorporated by reference from our Form 8-K dated October 15, 2015.
10.3	Retirement Separation Agreement, dated as of June 30, 2015, between us and Donald E. Morel, Jr., Ph.D., is incorporated by reference from our Form 8-K dated July 1, 2015.
10.4	2015 Long-Term Incentive Plan Award, dated as of June 30, 2015, between us and Donald E. Morel, Jr., is incorporated by reference from our Form 10-Q report for the quarter ended June 30, 2015.
10.5	2015 Long-Term Incentive Plan Award, dated as of June 30, 2015, between us and Patrick Zenner, is incorporated by reference from our Form 10-Q report for the quarter ended June 30, 2015.
10.6	Employment Agreement, dated as of April 13, 2015, between us and Eric M. Green, is incorporated by reference from our Form 8-K dated April 15, 2015.
10.7	Indemnification Agreement, dated as of April 24, 2015, between us and Eric M. Green, is incorporated by reference from our Form 8-K dated April 30, 2015.
10.8	Sign-On Retention Award Notice, dated as of April 24, 2015, from us to Eric M. Green, is incorporated by reference from our Form 8-K dated April 30, 2015.
31.1	Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

⁽¹⁾ We agree to furnish to the SEC, upon request, a copy of each instrument with respect to issuances of long-term debt of the Company and its subsidiaries.

* Furnished, not filed.

37

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, West Pharmaceutical Services, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

WEST PHARMACEUTICAL SERVICES, INC.

(Registrant)

By: /s/ William J. Federici

William J. Federici

Senior Vice President and Chief Financial Officer

November 2, 2015

38

EXHIBIT INDEX

Exhibit #	Description
3.1	Our Amended and Restated Articles of Incorporation are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
3.2	Our Bylaws, as amended through May 5, 2015, are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
4.1	Form of stock certificate for common stock is incorporated by reference from our annual report on Form 10-K dated May 6, 1999.
4.2	Article 5, 6, 8(c) and 9 of our Amended and Restated Articles of Incorporation are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
4.3	Article I and V of our Bylaws, as amended through May 5, 2015, are incorporated by reference from our Form 10-Q report for the quarter ended March 31, 2015.
4.4	Instruments defining the rights of holders of long-term debt securities of West and its subsidiaries have been omitted. (1)
10.1	First Amendment to Credit Agreement, dated as of September 4, 2015, by and among West, certain of its subsidiaries, the several banks and other financial institutions party thereto, and PNC Bank, National Association, as administrative agent for the Lenders.
10.2	Credit Agreement, dated as of October 15, 2015, between West, certain of its subsidiaries, the lenders party thereto from time to time, PNC Bank, National Association, as Administrative Agent and PNC Capital Markets, LLC, as Sole Lead Arranger and Sole Bookrunner, is incorporated by reference from our Form 8-K dated October 15, 2015.
10.3	Retirement Separation Agreement, dated as of June 30, 2015, between us and Donald E. Morel, Jr., Ph.D., is incorporated by reference from our Form 8-K dated July 1, 2015.
10.4	2015 Long-Term Incentive Plan Award, dated as of June 30, 2015, between us and Donald E. Morel, Jr., is incorporated by reference from our Form 10-Q report for the quarter ended June 30, 2015.
10.5	2015 Long-Term Incentive Plan Award, dated as of June 30, 2015, between us and Patrick Zenner, is incorporated by reference from our Form 10-Q report for the quarter ended June 30, 2015.
10.6	Employment Agreement, dated as of April 13, 2015, between us and Eric M. Green, is incorporated by reference from our Form 8-K dated April 15, 2015.
10.7	Indemnification Agreement, dated as of April 24, 2015, between us and Eric M. Green, is incorporated by reference from our Form 8-K dated April 30, 2015.
10.8	Sign-On Retention Award Notice, dated as of April 24, 2015, from us to Eric M. Green, is incorporated by reference from our Form 8-K dated April 30, 2015.
31.1	Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

⁽¹⁾ We agree to furnish to the SEC, upon request, a copy of each instrument with respect to issuances of long-term debt of the Company and its subsidiaries.

* Furnished, not filed.

F-1

EX-10.1

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of September 4, 2015, by and among (i) WEST PHARMACEUTICAL SERVICES, INC. (the “Company”), (ii) the direct and indirect subsidiaries of the Company listed on the signature pages hereto (collectively with the Company, the “Borrowers”), (iii) the Lenders party hereto and (iv) PNC BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein shall have the meanings assigned thereto in the Credit Agreement referred to below.

WITNESSETH:

WHEREAS, the Borrowers, the Lenders party thereto and the Administrative Agent are parties to a Credit Agreement, dated as of April 27, 2012 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

WHEREAS, the Borrowers and the Lenders have agreed to amend Section 6.12 of the Credit Agreement as set forth herein.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1.Amendment to Section 6.12. Section 6.12 of the Credit Agreement is hereby amended to read in full as follows:

6.12    Note Purchase Agreement Guarantors and Other Obligors. At any time, permit any Subsidiary which, at such time, is directly or indirectly liable (as a co-obligor, guarantor or otherwise) for any Indebtedness (1) for borrowed money in an amount equal to or in excess of $5,000,000 other than Indebtedness owed to a Borrower or Subsidiary thereof or (1) owed under a Note Purchase Agreement, or whose assets are subject to a Lien to secure obligations owed under any such Indebtedness referred to in clause (i) above or under a Note Purchase Agreement to not be a Borrower hereunder, other than West Pharmaceutical Services Canovanas, Inc and West Pharmaceutical Services Vega Alta, Inc.

2.Waiver. The Lenders hereby waive any non-compliance by the Borrowers with the provisions of Section 6.12 of the Credit Agreement as in effect prior to the effectiveness of this Amendment and the breach of any representation or notice requirement solely with respect thereto, provided that such non-compliance would not have been a breach of the terms of Section 6.12 of the Credit Agreement as amended hereby. The foregoing waiver shall not be deemed to operate as a, or obligate the Lenders to grant any, future waiver or modification of the terms of Section 6.12 of the Credit Agreement or of any other Default or Event of Default under the Credit Agreement.

3.Representations and Warranties. In order to induce the Lenders and the Administrative Agent to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, each Borrower hereby represents and warrants to each Lender and the Administrative Agent that the following statements are true and correct:

(a)There exists no Default or Event of Default under the Credit Agreement after giving effect to this Amendment;

(b)The representations and warranties of each Borrower set forth in the Loan Documents are true and correct in all material respects, in each case on and as of the date hereof as if made on and as of the date hereof;

(c)The execution and delivery of this Amendment by such Borrower and the performance by such Borrower of this Amendment has been duly authorized by all necessary corporate or other organizational action on behalf of such Borrower; and

(d)This Amendment constitutes the legal, valid and binding obligation of each Borrower, enforceable against such Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and to general principles of equity, regardless whether considered in a proceeding in equity or at law.

4.Conditions Precedent. This Amendment shall become effective on the date when the Administrative Agent shall have received counterparts of this Amendment duly executed by (i) the Borrowers, (ii) the Administrative Agent and (iii) the Required Lenders.

5.Affirmations. Each of the Borrowers hereby (a) ratifies and affirms all the provisions of the Credit Agreement and the other Loan Documents as amended hereby, (b) agrees that the terms and conditions of the Credit Agreement and the other Loan Documents shall continue in full force and effect as amended hereby and that all of its obligations thereunder are valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Amendment or any other documents or instruments executed in connection herewith and (c) acknowledges and agrees that it has no defense, set-off, counterclaim or challenge against the payment of any sums currently owing under the Credit Agreement and the other Loan Documents or the enforcement of any of the terms or conditions thereof and agrees to be bound thereby and perform thereunder.

6.Limited Effect. Except as expressly modified hereby, the Credit Agreement and the other Loan Documents shall continue to be, and shall remain, unaltered and in full force and effect in accordance with their terms.

7.Integration. This Amendment constitutes the sole agreement of the parties with respect to the transactions contemplated hereby and shall supersede all oral negotiations and the terms of prior writings with respect thereto. From and after the effectiveness of this Amendment, all references in the Credit Agreement and each of the other Loan Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement as modified hereby. This

2

Amendment shall constitute a Loan Document for all purposes under the Credit Agreement and each of the other Loan Documents.

8.Severability. Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

9.Miscellaneous.

(a)Expenses. The Borrowers, jointly and severally, agree to pay all of the Administrative Agent’s reasonable out-of-pocket fees and expenses incurred in connection with this Amendment and the transactions contemplated hereby, including, without limitation, the reasonable fees and expenses of counsel to the Administrative Agent.

(b)GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PROVISIONS THEREOF.

(c)Successor and Assigns. This Amendment shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns.

(d)Counterparts. This Amendment may be executed in one or more counterparts, each of which counterparts when executed and delivered shall be deemed to be an original, and all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or other electronic transmission will be effective as delivery of a manually executed counterpart hereof.

(e)Headings. The headings of any paragraph of this Amendment are for convenience only and shall not be used to interpret any provision hereof.

(f)Modifications. No modification hereof or any agreement referred to herein shall be binding or enforceable unless in writing and signed on behalf of the party against whom enforcement is sought.

[SIGNATURES FOLLOW]

3

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.

WEST PHARMACEUTICAL SERVICES, INC.
By: /s/ Michael A. Anderson
Name: Michael A. Anderson

Title: Vice President and Treasurer

WEST PHARMACEUTICAL SERVICES OF FLORIDA, INC.
By: /s/ Michael A. Anderson
Name: Michael A. Anderson
Title: Vice President and Treasurer

WEST PHARMACEUTICAL SERVICES LAKEWOOD, INC.
By: /s/ Michael A. Anderson
Name: Michael A. Anderson
Title: President

WEST PHARMACEUTICAL SERVICES GROUP LIMITED
By: /s/ David Elliott
Name: David Elliott
Title: Director

WEST PHARMACEUTICAL SERVICES GROUP LIMITED
By: /s/ Heino Lennartz
Name: Heino Lennartz
Title: President PPS Europe

[Signature Page to First Amendment]

WEST ANALYTICAL SERVICES, LLC
By: /s/ Donald A. McMillan

Name: Donald A. McMillan
Title: President

WEST PHARMACEUTICAL SERVICES OF DELAWARE, INC.
By: /s/ Michael A. Anderson
Name: Michael A. Anderson

Title: Treasurer

TECH GROUP NORTH AMERICA, INC.
TECH GROUP GRAND RAPIDS, INC. By: /s/ Michael A. Anderson

Name: Michael A. Anderson

Title: Vice President and Treasurer

(MFG) TECH GROUP PUERTO RICO, LLCBy: /s/ Joseph Fratinardo

Name: Joseph Fratinardo

Title: Director

WEST PHARMACEUTICAL SERVICES
DANMARK A/S
By: /s/ Heino Lennartz

Name: Heino Lennartz

Title: President PPS Europe

By: /s/ Stephan Selke

Name: Stephan Selke

Title: Vice President Finance PPS Europe

[Signature Page to First Amendment]

WEST PHARMACEUTICAL SERVICES

HOLDING GMBH
By: /s/ Heino Lennartz

Name: Heino Lennartz

Title: President PPS Europe

[Signature Page to First Amendment]

PNC BANK, NATIONAL ASSOCIATION,

as a Lender and as Administrative Agent
By: /s/ Meredith L. Jermann

Name: Meredith L. Jermann
Title: Vice President

[Signature Page to First Amendment]

BANK OF AMERICA, N.A., as a Lender

By: /s/ Mary K. Giermek

Name: Mary K. Giermek    

Title: Senior Vice President

[Signature Page to First Amendment]

WELLS FARGO BANK, NATIONAL ASSOCIATION,as a Lender

By: /s/ Joe Ellerbroek

Name: Joe Ellerbroek

Title: Assistant Vice President

[Signature Page to First Amendment]

CITIZENS BANK OF PENNSYLVANIA, as a Lender

By: /s/ Christopher M. Matje

Name: Christopher M. Matje

Title: Vice President

[Signature Page to First Amendment]

HSBC BANK USA, NATIONAL ASSOCIATION, as successor by merger to HSBC Bank USA, as a Lender

By: /s/ James W. Bravyak

Name: James W. Bravyak

Title: Vice President

[Signature Page to First Amendment]

JPMORGAN CHASE BANK, N.A., as a Lender

By: /s/ Joon Hur

Name: Joon Hur

Title: Vice President

[Signature Page to First Amendment]

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Jennifer Hwang

Name: Jennifer Hwang

Title: Senior Vice President

[Signature Page to First Amendment]

NORTHERN TRUST COMPANY,as a Lender

By: /s/ Andrew D. Holtz

Name: Andrew D. Holtz

Title: Senior Vice President

[Signature Page to First Amendment]

TD BANK, N.A., as a Lender

By: /s/ Shreya Shah

Name: Shreya Shah

Title: Senior Vice President

[Signature Page to First Amendment]

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Eric M. Green, certify that:

1. I have reviewed this quarterly report on Form 10-Q of West Pharmaceutical Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Eric M. Green

Eric M. Green

Chief Executive Officer

Date: November 2, 2015

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, William J. Federici, certify that:

1. I have reviewed this quarterly report on Form 10-Q of West Pharmaceutical Services, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ William J. Federici

William J. Federici

Senior Vice President and Chief Financial Officer

Date: November 2, 2015

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of West Pharmaceutical Services, Inc. (the “Company”) for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Eric M. Green, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Eric M. Green

Eric M. Green

Chief Executive Officer

Date: November 2, 2015

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of West Pharmaceutical Services, Inc. (the “Company”) for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William J. Federici, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William J. Federici

William J. Federici

Senior Vice President and Chief Financial Officer

Date: November 2, 2015

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Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Assets:
Deferred compensation assets	$ 6.4	$ 6.6
Foreign currency contracts	1.0	0.2
Total assets at fair value	7.4	6.8
Liabilities:
Contingent consideration	5.7	5.0
Deferred compensation liabilities	8.2	8.7
Interest rate swap contracts	2.5	3.6
Total liabilities at fair value	16.4	17.3
Level 1 [Member]
Assets:
Deferred compensation assets	6.4	6.6
Total assets at fair value	6.4	6.6
Liabilities:
Deferred compensation liabilities	8.2	8.7
Total liabilities at fair value	8.2	8.7
Level 2 [Member]
Assets:
Foreign currency contracts	1.0	0.2
Total assets at fair value	1.0	0.2
Liabilities:
Interest rate swap contracts	2.5	3.6
Total liabilities at fair value	2.5	3.6
Level 3 [Member]
Liabilities:
Contingent consideration	5.7	5.0
Total liabilities at fair value	$ 5.7	$ 5.0

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Other Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Income and Expenses [Abstract]
Pension settlement charge	$ 49.0		$ 49.0
Executive retirement and related costs			10.9
License costs		$ 1.2		$ 1.2
Development income	(0.3)	(0.3)	(1.1)	(1.2)
Contingent consideration costs	0.5	0.3	0.8	1.0
Other items	(0.5)	(0.9)	(1.5)	0.3
Other expense	$ 48.7	$ 0.3	$ 58.1	$ 1.3

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Accumulated Other Comprehensive Loss (Details 1) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015		Sep. 30, 2014
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
Cost of goods and services sold		$ 236.2	$ 246.0	$ 703.9		$ 733.5
Interest expense		(3.7)	(4.5)	(11.2)		(12.7)
Transition obligation				0.1		0.1
Prior service cost		0.3	0.3	1.0		1.0
Actuarial losses		(1.2)	(0.8)	(3.7)		(2.4)
(Loss) income before income taxes		(6.7)	41.3	73.5		127.4
Tax expense (benefit)		6.6	(11.7)	(15.1)		(35.5)
Net income		1.5	31.0	62.2		95.7
Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
Net income		(31.4)	(0.6)	(32.9)		(2.3)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains (Losses) on Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
(Loss) income before income taxes		(0.1)	(0.6)	(0.7)		(2.1)
Tax expense (benefit)		0.1	0.3	0.5		0.8
Net income		0.0	(0.3)	(0.2)		(1.3)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of Defined Benefit Pension and Other Postretirement Plans [Member]
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
Transition obligation		0.0	0.0	(0.1)	[1]	(0.1)	[1]
Prior service cost	[1]	0.3	0.3	1.0		1.0
Actuarial losses	[1]	(50.2)	(0.8)	(52.7)		(2.4)
(Loss) income before income taxes		(49.9)	(0.5)	(51.8)		(1.5)
Tax expense (benefit)		18.5	0.2	19.1		0.5
Net income		(31.4)	(0.3)	(32.7)		(1.0)
Foreign Currency Contract [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains (Losses) on Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
Cost of goods and services sold		0.4	0.2	1.3		0.2
Interest Rate Swap Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains (Losses) on Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
Interest expense		(0.4)	(0.7)	(1.7)		(2.0)
Forward Treasury Locks [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Gains (Losses) on Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Loss [Line Items]
Interest expense		$ (0.1)	$ (0.1)	$ (0.3)		$ (0.3)

[1] These components are included in the computation of net periodic benefit cost. Please refer to Note 9, Benefit Plans, for additional details.

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

The following table presents information about our reportable segments, reconciled to consolidated totals:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Net sales:
Packaging Systems	$	247.2		$	251.7		$	749.3		$	772.6
Delivery Systems	97.6			104.4			291.7			299.5
Intersegment sales elimination	(0.3		)	(0.2		)	(0.9		)	(0.5		)
Total net sales	$	344.5		$	355.9		$	1,040.1		$	1,071.6
Operating profit (loss):
Packaging Systems	$	56.5		$	52.8		$	179.2		$	167.1
Delivery Systems	1.3			4.8			4.8			8.3
Corporate	(12.3		)	(12.4		)	(40.7		)	(36.8		)
Other unallocated items	(49.0		)	(1.2		)	(59.9		)	(1.2		)
Total operating (loss) profit	$	(3.5	)	$	44.0		$	83.4		$	137.4
Interest expense	3.7			4.5			11.2			12.7
Interest income	0.5			1.8			1.3			2.7
(Loss) income before income taxes	$	(6.7	)	$	41.3		$	73.5		$	127.4

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Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Reconciliation of Basic to Diluted Net Income Per Share

The following table reconciles net income and shares used in the calculation of basic net income per share to those used for diluted net income per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2015		2014		2015		2014
Net income	$	1.5	$	31.0	$	62.2	$	95.7
Denominator:
Weighted average common shares outstanding	72.2		71.0		71.9		70.8
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method	1.7		1.6		1.7		1.7
Weighted average shares assuming dilution	73.9		72.6		73.6		72.5

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Tax expense (benefit)	$ (6.6)	$ 11.7	$ 15.1	$ 35.5
Income tax benefit, pension settlement	17.9
Pension settlement charge	$ 49.0		49.0
Income tax benefit, executive retirement & related costs			4.0
Executive retirement and related costs			$ 10.9

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Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance under the 2011 Plan (in shares)	2,639,265		2,639,265
Stock options, granted (in shares)			905,028
Stock options, weighted average exercise price (in dollars per share)			$ 55.63
Stock options, weighted average grant date fair value (in dollars per share)			$ 10.50
Assumptions used in Black-Scholes model
Risk-free interest rate (in hundredths)			1.61%
Expected life (in years)			5 years 10 months
Stock volatility (in hundredths)			19.20%
Dividend yield (in hundredths)			0.90%
Stock-based compensation expense	$ 3.6	$ 3.6	$ 24.4	$ 12.5
Stock-based compensation expense, executive retirements			$ 10.4
Performance Vesting Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			140,369
Grant date fair value (in dollars per share)			$ 55.26
Performance period			3 years
Number of shares of common stock per PVS award (in shares)	1		1
PVS payout, Minimum (in hundredths)	0.00%		0.00%
PVS payout, Maximum (in hundredths)	200.00%		200.00%
Restricted Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			30,499
Grant date fair value (in dollars per share)			$ 57.38

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Derivative Financial Instruments (Details) € in Millions, ¥ in Millions, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2015 EUR (€) MBbls	Sep. 30, 2015 JPY (¥)	Sep. 30, 2015 USD ($)	Sep. 30, 2015 JPY (¥) MBbls	Sep. 30, 2015 USD ($) MBbls
Forward-Start Interest Rate Swap [Member]
Derivative [Line Items]
Notional amount						$ 37.7
Maximum term (in years)		5 years	5 years	5 years
Derivative, underlying basis		one-month London Interbank Offered Rate (“LIBOR”)	one-month London Interbank Offered Rate (“LIBOR”)	one-month London Interbank Offered Rate (“LIBOR”)
Fixed interest rate		5.41%			5.41%	5.41%
Foreign Currency Hedge - USD Inventory Purchases, Euro Sub [Member]
Derivative [Line Items]
Notional amount		€ 5.3				$ 6.4
Foreign Currency Hedge - Euro Sales, U.S. Sub [Member]
Derivative [Line Items]
Notional amount		4.7				5.6
Foreign Currency Hedge - Yen Inventory Purchases, U.S. [Member]
Derivative [Line Items]
Derivative asset, notional amount					¥ 396.4	3.3
Derivative liability, notional amount					396.4	3.3
Foreign Currency Hedge - Yen Inventory Purchases, Euro Sub [Member]
Derivative [Line Items]
Derivative asset, notional amount					214.1	1.8
Derivative liability, notional amount					¥ 214.1	1.8
Euro-Denominated Revolver [Member]
Derivative [Line Items]
Notional amount, nonderivative instruments		21.0		$ 23.6
Yen-Denominated Revolver [Member]
Derivative [Line Items]
Notional amount, nonderivative instruments			¥ 500.0	4.2
Cumulative foreign currency translation gain						(1.2)
Cumulative foreign currency translation gain, net of tax						(0.8)
Euro Note B [Member]
Derivative [Line Items]
Notional amount, nonderivative instruments		€ 61.1		68.7
Euro-Denominated Debt [Member]
Derivative [Line Items]
Cumulative foreign currency translation gain						(15.0)
Cumulative foreign currency translation gain, net of tax						$ (9.5)
Options Held [Member]
Derivative [Line Items]
Derivative, nonmonetary notional amount | MBbls		134,700			134,700	134,700
Premium paid				0.1
Loss related to call options, less than	$ 0.1			$ 0.1

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Subsequent Event (Details) $ in Millions	Oct. 15, 2015 USD ($)
Revolving credit facility, due 2020 [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 300.0
Line of Credit Facility, Additional Borrowing Capacity	100.0
Line of Credit Facility Capacity Available for Swing-Line Loans	30.0
Line of Credit Facility Capacity Available for Letters of Credit	30.0
Revolving credit facility, due 2017 [Member]
Subsequent Event [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 300.0
Base Rate [Member]
Subsequent Event [Line Items]
Basis Point Margin on Variable Rate Minimum	0
Basis Point Margin on Variable Rate Maximum	75
London Interbank Offered Rate (LIBOR) [Member]
Subsequent Event [Line Items]
Basis Point Margin on Variable Rate Minimum	100
Basis Point Margin on Variable Rate Maximum	175

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Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (Details 2) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Equity [Abstract]
Pension settlement charge	$ 49.0	$ 49.0

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and nine months endedSeptember 30, 2015 should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. (which may be referred to as “West”, “the Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year.

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Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Service cost	$ 2.6	$ 2.4	$ 8.4	$ 7.7
Interest cost	3.5	4.3	11.5	13.0
Expected return on assets	(4.9)	(4.7)	(16.3)	(14.4)
Amortization of transition obligation			0.1	0.1
Amortization of prior service credit	(0.3)	(0.3)	(1.0)	(1.0)
Recognized actuarial losses (gains)	1.2	0.8	3.7	2.4
Settlements	49.0		49.0
Net periodic benefit cost	51.1	2.5	55.4	7.8
Pension Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Service cost	2.5	2.3	8.0	7.4
Interest cost	3.4	4.2	11.2	12.7
Expected return on assets	(4.9)	(4.7)	(16.3)	(14.4)
Amortization of transition obligation			0.1	0.1
Amortization of prior service credit	(0.3)	(0.3)	(1.0)	(1.0)
Recognized actuarial losses (gains)	1.6	1.3	4.8	3.6
Settlements	49.0		49.0
Net periodic benefit cost	51.3	2.8	55.8	8.4
Other Retirement Benefits [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Service cost	0.1	0.1	0.4	0.3
Interest cost	0.1	0.1	0.3	0.3
Recognized actuarial losses (gains)	(0.4)	(0.5)	(1.1)	(1.2)
Net periodic benefit cost	(0.2)	(0.3)	(0.4)	(0.6)
U.S. Pension Benefit Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Net periodic benefit cost	50.7	2.0	53.8	6.1
International Pension Benefit Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Net periodic benefit cost	0.6	0.8	2.0	2.3
U.S. Other Retirement Benefit Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Net periodic benefit cost	(0.2)	(0.3)	(0.4)	(0.6)
U.S. Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Net periodic benefit cost	50.5	1.7	53.4	5.5
International Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Net periodic benefit cost	$ 0.6	$ 0.8	$ 2.0	$ 2.3

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value

The following tables present the assets and liabilities recorded at fair value on a recurring basis:

	Balance at		Basis of Fair Value Measurements
($ in millions)	September 30, 2015		Level 1		Level 2		Level 3
Assets:
Deferred compensation assets	$	6.4	$	6.4	$	—	$	—
Foreign currency contracts	1.0		—		1.0		—
	$	7.4	$	6.4	$	1.0	$	—
Liabilities:
Contingent consideration	$	5.7	$	—	$	—	$	5.7
Deferred compensation liabilities	8.2		8.2		—		—
Interest rate swap contracts	2.5		—		2.5		—
	$	16.4	$	8.2	$	2.5	$	5.7

	Balance at		Basis of Fair Value Measurements
($ in millions)	December 31, 2014		Level 1		Level 2		Level 3
Assets:
Deferred compensation assets	$	6.6	$	6.6	$	—	$	—
Foreign currency contracts	0.2		—		0.2		—
	$	6.8	$	6.6	$	0.2	$	—
Liabilities:
Contingent consideration	$	5.0	$	—	$	—	$	5.0
Deferred compensation liabilities	8.7		8.7		—		—
Interest rate swap contracts	3.6		—		3.6		—
	$	17.3	$	8.7	$	3.6	$	5.0

Summary of Changes in Level 3 Fair Value Measurements

The following table provides a summary of changes in our Level 3 fair value measurements:

	Nine Months Ended September 30,
	2015			2014
Beginning Balance	$	5.0		$	4.3
Increase in fair value recorded in earnings	0.8			1.0
Payments	(0.1		)	(0.2		)
Ending Balance	$	5.7		$	5.1

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effects of Derivative Instruments on Other Comprehensive Income ('OCI') and Earnings

The following tables summarize the effects of derivative instruments designated as hedges on other comprehensive income (“OCI”) and earnings, net of tax:

	Amount of Gain (Loss) Recognized in OCI for					Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for						Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Three Months Ended September 30,					Three Months Ended September 30,
($ in millions)	2015			2014		2015			2014
Cash Flow Hedges:
Foreign currency hedge contracts	$	—		$	0.5	$	(0.4	)	$	(0.2	)	Net sales
Foreign currency hedge contracts	(0.3		)	0.2		—			—			Cost of goods and services sold
Interest rate swap contracts	(0.1		)	0.1		0.3			0.4			Interest expense
Forward treasury locks	—			—		0.1			0.1			Interest expense
Total	$	(0.4	)	$	0.8	$	—		$	0.3
Net Investment Hedges:
Foreign currency-denominated debt	$	(0.8	)	$	5.1	$	—		$	—		Other expense
Total	$	(0.8	)	$	5.1	$	—		$	—

	Amount of Gain (Loss) Recognized in OCI for						Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for						Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Nine Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Cash Flow Hedges:
Foreign currency hedge contracts	$	1.4		$	0.4		$	(1.1	)	$	(0.1	)	Net sales
Foreign currency hedge contracts	0.3			0.3			—			—			Cost of goods and services sold
Interest rate swap contracts	(0.4		)	(0.2		)	1.1			1.2			Interest expense
Forward treasury locks	—			—			0.2			0.2			Interest expense
Total	$	1.3		$	0.5		$	0.2		$	1.3
Net Investment Hedges:
Foreign currency-denominated debt	$	4.7		$	5.6		$	—		$	—		Other expense
Total	$	4.7		$	5.6		$	—		$	—

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Benefit Plans (Details 1) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Pension settlement charge		$ 49.0	$ 49.0
Amount of PBO settled		139.4
Pension benefit obligation	$ 313.6	$ 313.6	$ 313.6
Number of employees & beneficiaries affected by settlement	1,750	1,750	1,750
Employer contribution	$ 1.3
Future employer contribution			$ 13.7

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Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2015

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for the three months ended September 30 were as follows ($ in millions):

	Pension benefits						Other retirement benefits						Total
	2015			2014			2015			2014			2015			2014
Service cost	$	2.5		$	2.3		$	0.1		$	0.1		$	2.6		$	2.4
Interest cost	3.4			4.2			0.1			0.1			3.5			4.3
Expected return on assets	(4.9		)	(4.7		)	—			—			(4.9		)	(4.7		)
Amortization of prior service credit	(0.3		)	(0.3		)	—			—			(0.3		)	(0.3		)
Recognized actuarial losses (gains)	1.6			1.3			(0.4		)	(0.5		)	1.2			0.8
Settlements	49.0			—			—			—			49.0			—
Net periodic benefit cost	$	51.3		$	2.8		$	(0.2	)	$	(0.3	)	$	51.1		$	2.5

	Pension benefits				Other retirement benefits						Total
	2015		2014		2015			2014			2015		2014
U.S. plans	$	50.7	$	2.0	$	(0.2	)	$	(0.3	)	$	50.5	$	1.7
International plans	0.6		0.8		—			—			0.6		0.8
Net periodic benefit cost	$	51.3	$	2.8	$	(0.2	)	$	(0.3	)	$	51.1	$	2.5

The components of net periodic benefit cost for the nine months ended September 30 were as follows ($ in millions):

	Pension benefits						Other retirement benefits						Total
	2015			2014			2015			2014			2015			2014
Service cost	$	8.0		$	7.4		$	0.4		$	0.3		$	8.4		$	7.7
Interest cost	11.2			12.7			0.3			0.3			11.5			13.0
Expected return on assets	(16.3		)	(14.4		)	—			—			(16.3		)	(14.4		)
Amortization of transition obligation	0.1			0.1			—			—			0.1			0.1
Amortization of prior service credit	(1.0		)	(1.0		)	—			—			(1.0		)	(1.0		)
Recognized actuarial losses (gains)	4.8			3.6			(1.1		)	(1.2		)	3.7			2.4
Settlements	49.0			—			—			—			49.0			—
Net periodic benefit cost	$	55.8		$	8.4		$	(0.4	)	$	(0.6	)	$	55.4		$	7.8

	Pension benefits				Other retirement benefits						Total
	2015		2014		2015			2014			2015		2014
U.S. plans	$	53.8	$	6.1	$	(0.4	)	$	(0.6	)	$	53.4	$	5.5
International plans	2.0		2.3		—			—			2.0		2.3
Net periodic benefit cost	$	55.8	$	8.4	$	(0.4	)	$	(0.6	)	$	55.4	$	7.8

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Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The following table presents the changes in the components of accumulated other comprehensive loss, net of tax, for the nine months endedSeptember 30, 2015:

($ in millions)	Losses on cash flow hedges			Unrealized gains on investment securities		Defined benefit pension and other postretirement plans			Foreign currency translation			Total
Balance, December 31, 2014	$	(4.3	)	$	4.7	$	(64.6	)	$	(55.0	)	$	(119.2	)
Other comprehensive income (loss) before reclassifications	1.3			—		(11.4		)	(58.0		)	(68.1		)
Amounts reclassified out	0.2			—		32.7			—			32.9
Other comprehensive income (loss), net of tax	1.5			—		21.3			(58.0		)	(35.2		)
Balance, September 30, 2015	$	(2.8	)	$	4.7	$	(43.3	)	$	(113.0	)	$	(154.4	)

Reclassification out of Accumulated Other Comprehensive Loss

A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,						Location on Statement of Income
Detail of components	2015			2014			2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	0.4		$	0.2		$	1.3		$	0.2		Cost of goods and services sold
Interest rate swap contracts	(0.4		)	(0.7		)	(1.7		)	(2.0		)	Interest expense
Forward treasury locks	(0.1		)	(0.1		)	(0.3		)	(0.3		)	Interest expense
Total before tax	(0.1		)	(0.6		)	(0.7		)	(2.1		)
Tax expense	0.1			0.3			0.5			0.8
Net of tax	$	—		$	(0.3	)	$	(0.2	)	$	(1.3	)
Amortization of defined benefit pension and other postretirement plans:
Transition obligation	$	—		$	—		$	(0.1	)	$	(0.1	)	(a)
Prior service cost	0.3			0.3			1.0			1.0			(a)
Actuarial losses	(50.2		)	(0.8		)	(52.7		)	(2.4		)	(a)
Total before tax	(49.9		)	(0.5		)	(51.8		)	(1.5		)
Tax expense	18.5			0.2			19.1			0.5
Net of tax	$	(31.4	)	$	(0.3	)	$	(32.7	)	$	(1.0	)
Total reclassifications for the period, net of tax	$	(31.4	)	$	(0.6	)	$	(32.9	)	$	(2.3	)

(a)     These components are included in the computation of net periodic benefit cost. Please refer to Note 9, Benefit Plans, for additional details.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 62.2	$ 95.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	63.6	63.9
Amortization	3.0	4.1
Stock-based compensation	24.4	12.5
Pension settlement charge	49.0
Other non-cash items, net	(2.7)	(3.1)
Changes in assets and liabilities	(55.1)	(36.2)
Net cash provided by operating activities	144.4	136.9
Cash flows from investing activities:
Capital expenditures	(86.8)	(84.8)
Purchases of short-term investments	0.0	(9.3)
Sales and maturities of short-term investments	0.0	16.8
Other, net	1.2	(0.4)
Net cash used in investing activities	(85.6)	(77.7)
Cash flows from financing activities:
Borrowings under revolving credit agreements	57.4	222.4
Repayments under revolving credit agreements	(57.4)	(242.4)
Repayments of long-term debt	(26.7)	(1.7)
Dividend payments	(23.7)	(21.2)
Excess tax benefit from employee stock plans	4.2	5.5
Shares repurchased for employee tax withholdings	(5.6)	(4.1)
Proceeds from exercise of stock options and stock appreciation rights	9.7	10.5
Employee stock purchase plan contributions	2.3	2.2
Contingent consideration payments	(0.1)	(0.2)
Net cash used in financing activities	(39.9)	(29.0)
Effect of exchange rates on cash	(17.4)	(13.4)
Net increase in cash and cash equivalents	1.5	16.8
Cash and cash equivalents at beginning of period	255.3	230.0
Cash and cash equivalents at end of period	$ 256.8	$ 246.8

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Other Expense (Tables)

9 Months Ended

Sep. 30, 2015

Other Income and Expenses [Abstract]

Schedule of Other Expense

Other expense consists of:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Pension settlement charge	$	49.0		$	—		$	49.0		$	—
Executive retirement and related costs	—			—			10.9			—
License costs	—			1.2			—			1.2
Development income	(0.3		)	(0.3		)	(1.1		)	(1.2		)
Contingent consideration costs	0.5			0.3			0.8			1.0
Other items	(0.5		)	(0.9		)	(1.5		)	0.3
	$	48.7		$	0.3		$	58.1		$	1.3

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Fair Value Measurements (Details 1) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Level 3 Fair Value Measurements [Roll Forward]
Balance, beginning of period	$ 5.0	$ 4.3
Increase in fair value recorded in earnings	0.8	1.0
Payments	(0.1)	(0.2)
Balance, end of period	$ 5.7	$ 5.1

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Net sales	$ 344.5	$ 355.9	$ 1,040.1	$ 1,071.6
Cost of goods and services sold	236.2	246.0	703.9	733.5
Gross profit	108.3	109.9	336.2	338.1
Research and development	8.5	9.6	24.1	29.5
Selling, general and administrative expenses	54.6	56.0	170.6	169.9
Other expense (Note 11)	48.7	0.3	58.1	1.3
Operating (loss) profit	(3.5)	44.0	83.4	137.4
Interest expense	3.7	4.5	11.2	12.7
Interest income	0.5	1.8	1.3	2.7
(Loss) income before income taxes	(6.7)	41.3	73.5	127.4
Income tax (benefit) expense	(6.6)	11.7	15.1	35.5
Equity in net income of affiliated companies	1.6	1.4	3.8	3.8
Net income	$ 1.5	$ 31.0	$ 62.2	$ 95.7
Net income per share:
Basic (in dollars per share)	$ 0.02	$ 0.44	$ 0.86	$ 1.35
Diluted (in dollars per share)	$ 0.02	$ 0.43	$ 0.85	$ 1.32
Weighted average shares outstanding:
Basic (in shares)	72.2	71.0	71.9	70.8
Diluted (in shares)	73.9	72.6	73.6	72.5
Dividends declared per share	$ 0.12	$ 0.11	$ 0.34	$ 0.31

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning			$ (119.2)
Other comprehensive income (loss) before reclassifications			(68.1)
Amounts reclassified out			32.9
Other comprehensive income (loss), net of tax	$ 5.8	$ (36.6)	(35.2)	$ (38.9)
Balance, ending	(154.4)		(154.4)
Gains (Losses) on Cash Flow Hedges [Member]
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning			(4.3)
Other comprehensive income (loss) before reclassifications			1.3
Amounts reclassified out			0.2
Other comprehensive income (loss), net of tax			1.5
Balance, ending	(2.8)		(2.8)
Unrealized Gains on Investment Securities [Member]
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning			4.7
Other comprehensive income (loss) before reclassifications			0.0
Amounts reclassified out			0.0
Other comprehensive income (loss), net of tax			0.0
Balance, ending	4.7		4.7
Defined Benefit Pension and Other Postretirement Plans [Member]
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning			(64.6)
Other comprehensive income (loss) before reclassifications			(11.4)
Amounts reclassified out			32.7
Other comprehensive income (loss), net of tax			21.3
Balance, ending	(43.3)		(43.3)
Foreign Currency Translation [Member]
Changes in the Components of Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning			(55.0)
Other comprehensive income (loss) before reclassifications			(58.0)
Amounts reclassified out			0.0
Other comprehensive income (loss), net of tax			(58.0)
Balance, ending	$ (113.0)		$ (113.0)

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares shares in Millions	Sep. 30, 2015	Dec. 31, 2014
Balance Sheet Related Disclosures [Abstract]
Preferred Stock, Shares Authorized	3.0	3.0
Preferred Stock, Shares Issued	0.0	0.0
Preferred Stock, Shares Outstanding	0.0	0.0
Common Stock, Par or Stated Value Per Share	$ 0.25	$ 0.25
Common Stock, Shares Authorized	100.0	100.0
Common Stock, Shares, Issued	72.2	71.4
Common Stock, Shares, Outstanding	72.1	71.3
Treasury Stock, Shares	0.1	0.1

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Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 78.0	$ 79.9
Work in process	31.1	25.6
Finished goods	78.6	76.0
Total inventories	$ 187.7	$ 181.5

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Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business operations are organized into two reportable segments, which are aligned with the underlying markets and customers they serve. Our reportable segments are the Pharmaceutical Packaging Systems segment (“Packaging Systems”) and Delivery Systems. Packaging Systems develops, manufactures and sells primary packaging components and systems for injectable drug delivery, including stoppers and seals for vials, closures and other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. Delivery Systems develops, manufactures and sells safety and administration systems, multi-component systems for drug administration, and a variety of custom contract-manufacturing solutions targeted to the healthcare and consumer-products industries. In addition, Delivery Systems is responsible for the continued development and commercialization of our line of proprietary, multi-component systems for injectable drug administration and other healthcare applications.

Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, adjustments to annual incentive plan expense for over- or under-attainment of targets, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items.

The following table presents information about our reportable segments, reconciled to consolidated totals:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Net sales:
Packaging Systems	$	247.2		$	251.7		$	749.3		$	772.6
Delivery Systems	97.6			104.4			291.7			299.5
Intersegment sales elimination	(0.3		)	(0.2		)	(0.9		)	(0.5		)
Total net sales	$	344.5		$	355.9		$	1,040.1		$	1,071.6
Operating profit (loss):
Packaging Systems	$	56.5		$	52.8		$	179.2		$	167.1
Delivery Systems	1.3			4.8			4.8			8.3
Corporate	(12.3		)	(12.4		)	(40.7		)	(36.8		)
Other unallocated items	(49.0		)	(1.2		)	(59.9		)	(1.2		)
Total operating (loss) profit	$	(3.5	)	$	44.0		$	83.4		$	137.4
Interest expense	3.7			4.5			11.2			12.7
Interest income	0.5			1.8			1.3			2.7
(Loss) income before income taxes	$	(6.7	)	$	41.3		$	73.5		$	127.4

The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments.

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge related to our purchase of a group annuity contract from MetLife. Please refer to Note 9, Benefit Plans, for additional details. In addition, the nine month period ended September 30, 2015 includes a $10.9 million charge for executive retirement and related costs. Please refer to Note 11, Other Expense, for additional details regarding this charge.

During the three and nine months ended September 30, 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.

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Debt (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 302.5	$ 336.7
Less: current portion of long-term debt	71.0	27.2
Long-term debt, excluding current portion	231.5	309.5
Series B Floating Rate Notes Due 2015 [Member]
Debt Instrument [Line Items]
Long-term debt	0.0	25.0
Euro Note B Due 2016 [Member]
Debt Instrument [Line Items]
Long-term debt	68.7	74.3
Capital leases, due 2016 [Member]
Debt Instrument [Line Items]
Capital leases	0.1	0.2
Revolving credit facility, due 2017 [Member]
Debt Instrument [Line Items]
Long-term debt	27.8	29.7
Line of credit facility outstanding borrowings, Yen	4.2
Line of credit facility outstanding borrowings, Euro	23.6
Term Loan Due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt	37.7	39.2
Current portion of long-term debt	$ 2.2
Debt Instrument Term	5 years
Notes Payable due 2020 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 0.2	0.3
Series A Notes, Due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	42.0	42.0
Series B Notes, Due 2024 [Member]
Debt Instrument [Line Items]
Long-term debt	53.0	53.0
Series C Notes, Due 2027 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 73.0	$ 73.0

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and nine months endedSeptember 30, 2015 should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. (which may be referred to as “West”, “the Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2014 (“2014 Annual Report”). The results of operations for any interim period are not necessarily indicative of results for the full year.

New Accounting Standards

Recently Adopted Standards

In April 2014, the Financial Accounting Standards Board ("FASB") issued guidance for the reporting of discontinued operations, which also contained new disclosure requirements for both discontinued operations and other disposals that do not meet the definition of a discontinued operation. We adopted this guidance as of January 1, 2015, on a prospective basis. The adoption did not have a material impact on our financial statements.

Standards Issued Not Yet Adopted

In September 2015, the FASB issued guidance that simplifies the accounting for measurement-period adjustments in business combinations, by eliminating the requirement to account for those adjustments retrospectively. Instead, the acquirer will be required to recognize measurement-period adjustments in the reporting period in which the amounts are determined. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In July 2015, the FASB issued guidance regarding the subsequent measurement of inventory. This guidance requires inventory measured using any method other than last-in, first-out or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value represents estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In April 2015, the FASB issued guidance on the accounting for fees paid by a customer in a cloud computing arrangement. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management is currently evaluating the impact that this guidance will have on our financial statements, if any.

In April 2015, the FASB issued guidance which changes the classification of debt issuance costs, from an asset on the balance sheet to netting the costs against the carrying value of the debt. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In January 2015, the FASB issued guidance which removes the concept of extraordinary items from U.S. GAAP. This guidance eliminates the requirement for companies to spend time assessing whether items meet the criteria of being both unusual and infrequent. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In August 2014, the FASB issued guidance which defines management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2017. Early adoption is permitted as of one year prior to the current effective date. Entities can choose to apply the guidance using either a full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on our financial statements, if any, including which transition method it will adopt.

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CONDENSED CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2015 - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2014	$ 956.9	$ 17.8	$ 160.2	$ (4.1)	$ 902.2	$ (119.2)
Balance (in shares) at Dec. 31, 2014		71.4
Increase (Decrease) in Equity [Roll Forward]
Net income	62.2				62.2
Stock-based compensation	23.5	$ 0.1	23.2	0.2
Shares issued under stock plans (shares)		0.9
Shares issued under stock plans	13.8	$ 0.1	13.7
Shares repurchased for employee tax withholdings (shares)		(0.1)
Shares repurchased for employee tax withholdings	(5.6)		(5.5)	(0.1)
Excess tax benefit from employee stock plans	4.2		4.2
Dividends declared	(24.5)				(24.5)
Other comprehensive loss, net of tax	(35.2)					(35.2)
Balance at Sep. 30, 2015	$ 995.3	$ 18.0	$ 195.8	$ (4.0)	$ 939.9	$ (154.4)
Balance (in shares) at Sep. 30, 2015		72.2

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 1.5	$ 31.0	$ 62.2	$ 95.7
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	(13.5)	(38.9)	(58.0)	(42.2)
Defined benefit pension and other postretirement plan adjustments, net of tax of $11.4, $0.5, $12.3 and $0.7 respectively	19.7	1.2	21.3	1.5
Net (losses) gains on derivatives, net of tax of $(0.1), $0.4, $0.7 and $0.8, respectively	(0.4)	1.1	1.5	1.8
Other comprehensive income (loss), net of tax	5.8	(36.6)	(35.2)	(38.9)
Comprehensive income (loss)	$ 7.3	$ (5.6)	$ 27.0	$ 56.8

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Benefit Plans

9 Months Ended

Sep. 30, 2015

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Benefit Plans

Benefit Plans

The components of net periodic benefit cost for the three months ended September 30 were as follows ($ in millions):

	Pension benefits						Other retirement benefits						Total
	2015			2014			2015			2014			2015			2014
Service cost	$	2.5		$	2.3		$	0.1		$	0.1		$	2.6		$	2.4
Interest cost	3.4			4.2			0.1			0.1			3.5			4.3
Expected return on assets	(4.9		)	(4.7		)	—			—			(4.9		)	(4.7		)
Amortization of prior service credit	(0.3		)	(0.3		)	—			—			(0.3		)	(0.3		)
Recognized actuarial losses (gains)	1.6			1.3			(0.4		)	(0.5		)	1.2			0.8
Settlements	49.0			—			—			—			49.0			—
Net periodic benefit cost	$	51.3		$	2.8		$	(0.2	)	$	(0.3	)	$	51.1		$	2.5

	Pension benefits				Other retirement benefits						Total
	2015		2014		2015			2014			2015		2014
U.S. plans	$	50.7	$	2.0	$	(0.2	)	$	(0.3	)	$	50.5	$	1.7
International plans	0.6		0.8		—			—			0.6		0.8
Net periodic benefit cost	$	51.3	$	2.8	$	(0.2	)	$	(0.3	)	$	51.1	$	2.5

The components of net periodic benefit cost for the nine months ended September 30 were as follows ($ in millions):

	Pension benefits						Other retirement benefits						Total
	2015			2014			2015			2014			2015			2014
Service cost	$	8.0		$	7.4		$	0.4		$	0.3		$	8.4		$	7.7
Interest cost	11.2			12.7			0.3			0.3			11.5			13.0
Expected return on assets	(16.3		)	(14.4		)	—			—			(16.3		)	(14.4		)
Amortization of transition obligation	0.1			0.1			—			—			0.1			0.1
Amortization of prior service credit	(1.0		)	(1.0		)	—			—			(1.0		)	(1.0		)
Recognized actuarial losses (gains)	4.8			3.6			(1.1		)	(1.2		)	3.7			2.4
Settlements	49.0			—			—			—			49.0			—
Net periodic benefit cost	$	55.8		$	8.4		$	(0.4	)	$	(0.6	)	$	55.4		$	7.8

	Pension benefits				Other retirement benefits						Total
	2015		2014		2015			2014			2015		2014
U.S. plans	$	53.8	$	6.1	$	(0.4	)	$	(0.6	)	$	53.4	$	5.5
International plans	2.0		2.3		—			—			2.0		2.3
Net periodic benefit cost	$	55.8	$	8.4	$	(0.4	)	$	(0.6	)	$	55.4	$	7.8

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge within other expense, in connection with our purchase of a group annuity contract from Metropolitan Life Insurance Company (“MetLife”) to settle $139.4 million of our $313.6 million outstanding pension benefit obligation under our U.S. qualified pension plan. MetLife will assume the obligation to pay future pension benefits and provide administrative services beginning November 1, 2015 for approximately 1,750 retirees and surviving beneficiaries who retired prior to January 1, 2015 and are currently receiving payments from this plan. The purchase was funded directly by plan assets.

In addition, we made contributions to the U.S. qualified pension plan in the amount of $1.3 million in September 2015 and $13.7 million in October 2015, in order to maintain the plan's funded status as of the transaction date.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2015 shares
Document and Entity Information [Abstract]
Entity Registrant Name	WEST PHARMACEUTICAL SERVICES INC
Entity Central Index Key	0000105770
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	72,087,677
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

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Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following table presents the changes in the components of accumulated other comprehensive loss, net of tax, for the nine months endedSeptember 30, 2015:

($ in millions)	Losses on cash flow hedges			Unrealized gains on investment securities		Defined benefit pension and other postretirement plans			Foreign currency translation			Total
Balance, December 31, 2014	$	(4.3	)	$	4.7	$	(64.6	)	$	(55.0	)	$	(119.2	)
Other comprehensive income (loss) before reclassifications	1.3			—		(11.4		)	(58.0		)	(68.1		)
Amounts reclassified out	0.2			—		32.7			—			32.9
Other comprehensive income (loss), net of tax	1.5			—		21.3			(58.0		)	(35.2		)
Balance, September 30, 2015	$	(2.8	)	$	4.7	$	(43.3	)	$	(113.0	)	$	(154.4	)

During the third quarter of 2015, in connection with our purchase of a group annuity contract from MetLife, we recorded a $49.0 million pension settlement charge related to the acceleration of a portion of our unrecognized actuarial losses. Please refer to Note 9, Benefit Plans, for additional details.

A summary of the reclassifications out of accumulated other comprehensive loss is presented in the following table ($ in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,						Location on Statement of Income
Detail of components	2015			2014			2015			2014
Gains (losses) on cash flow hedges:
Foreign currency contracts	$	0.4		$	0.2		$	1.3		$	0.2		Cost of goods and services sold
Interest rate swap contracts	(0.4		)	(0.7		)	(1.7		)	(2.0		)	Interest expense
Forward treasury locks	(0.1		)	(0.1		)	(0.3		)	(0.3		)	Interest expense
Total before tax	(0.1		)	(0.6		)	(0.7		)	(2.1		)
Tax expense	0.1			0.3			0.5			0.8
Net of tax	$	—		$	(0.3	)	$	(0.2	)	$	(1.3	)
Amortization of defined benefit pension and other postretirement plans:
Transition obligation	$	—		$	—		$	(0.1	)	$	(0.1	)	(a)
Prior service cost	0.3			0.3			1.0			1.0			(a)
Actuarial losses	(50.2		)	(0.8		)	(52.7		)	(2.4		)	(a)
Total before tax	(49.9		)	(0.5		)	(51.8		)	(1.5		)
Tax expense	18.5			0.2			19.1			0.5
Net of tax	$	(31.4	)	$	(0.3	)	$	(32.7	)	$	(1.0	)
Total reclassifications for the period, net of tax	$	(31.4	)	$	(0.6	)	$	(32.9	)	$	(2.3	)

(a)     These components are included in the computation of net periodic benefit cost. Please refer to Note 9, Benefit Plans, for additional details.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Defined benefit pension and other postretirement plan adjustments, tax	$ 11.4	$ 0.5	$ 12.3	$ 0.7
Net (losses) gains on derivatives, tax	$ (0.1)	$ 0.4	$ 0.7	$ 0.8

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Inventories

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are valued at the lower of cost (on a first-in, first-out basis) or market. Inventory balances were as follows:

($ in millions)	September 30, 2015		December 31, 2014
Raw materials	$	78.0	$	79.9
Work in process	31.1		25.6
Finished goods	78.6		76.0
	$	187.7	$	181.5

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Net Income Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

The following table reconciles net income and shares used in the calculation of basic net income per share to those used for diluted net income per share:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2015		2014		2015		2014
Net income	$	1.5	$	31.0	$	62.2	$	95.7
Denominator:
Weighted average common shares outstanding	72.2		71.0		71.9		70.8
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method	1.7		1.6		1.7		1.7
Weighted average shares assuming dilution	73.9		72.6		73.6		72.5

During the three months ended September 30, 2015 and 2014, there were 0.8 million and 0.6 million shares, respectively, not included in the computation of diluted net income per share because their impact was antidilutive. There were 0.6 million and 0.5 million antidilutive shares outstanding during the nine months ended September 30, 2015 and 2014, respectively.

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Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

On October 15, 2015, we entered into a senior unsecured, multi-currency revolving credit facility agreement (the "New Credit Agreement") that replaced our prior $300.0 million revolving credit facility, which was scheduled to expire in April 2017. The New Credit Agreement, which expires in October 2020, contains a $300.0 million credit facility, which may be increased from time to time by up to $100.0 million in the aggregate, subject to the satisfaction of certain conditions and upon approval by the banks. Up to $30.0 million of the credit facility is available for swing-line loans and up to $30.0 million is available for the issuance of standby letters of credit. Borrowings under the revolving credit facility bear interest at either the base rate or at the applicable LIBOR rate, plus a tiered margin based on the ratio of our total debt to modified earnings before interest, taxes, depreciation and amortization ("EBITDA"), ranging from 0 to 75 basis points for base rate loans and 100 to 175 basis points for LIBOR rate loans. Consistent with our previous revolving credit facility, the New Credit Agreement contains representations and covenants that require compliance with, among other restrictions, a maximum leverage ratio and a minimum interest coverage ratio. The New Credit Agreement also contains usual and customary default provisions, and limitations on liens securing indebtedness, asset sales, distributions and acquisitions.

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Other Expense

9 Months Ended

Sep. 30, 2015

Other Income and Expenses [Abstract]

Other Expense

Other expense consists of:

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Pension settlement charge	$	49.0		$	—		$	49.0		$	—
Executive retirement and related costs	—			—			10.9			—
License costs	—			1.2			—			1.2
Development income	(0.3		)	(0.3		)	(1.1		)	(1.2		)
Contingent consideration costs	0.5			0.3			0.8			1.0
Other items	(0.5		)	(0.9		)	(1.5		)	0.3
	$	48.7		$	0.3		$	58.1		$	1.3

During the third quarter of 2015, we recorded a $49.0 million pension settlement charge in connection with our purchase of a group annuity contract from MetLife. Please refer to Note 9, Benefit Plans, for additional details regarding this purchase.

In addition, during the nine months ended September 30, 2015, we recorded a $10.9 million charge for executive retirement and related costs, which included $2.4 million for a long-term incentive plan award for the Company’s previous CEO, $8.0 million for the revaluation of modified outstanding awards to provide for continued vesting for the Company’s previous CEO and Senior Vice President of Human Resources in conjunction with their retirement, and $0.5 million for other costs, including relocation and legal fees.

During the three and nine months ended September 30, 2014, we recorded a $1.2 million charge for license costs associated with acquired in-process research.

Development income of $0.3 million and $1.1 million was recognized within our Pharmaceutical Delivery Systems segment ("Delivery Systems") during the three and nine months ended September 30, 2015, respectively, related to a nonrefundable customer payment of $20.0 million received in June 2013 in return for the exclusive use of SmartDose within a specific therapeutic area. As of September 30, 2015, there was $16.3 million of unearned income related to this payment, of which $1.5 million was included in other current liabilities and $14.8 million was included in other long-term liabilities. The unearned income is being recognized as development income on a straight-line basis over the remaining term of the agreement. The agreement does not include a future minimum purchase commitment from the customer. During the three and nine months endedSeptember 30, 2014, we recorded development income of $0.3 million and $1.2 million, respectively, within Delivery Systems, most of which related to the nonrefundable customer payment described above.

Contingent consideration costs represent changes in the fair value of the SmartDose contingent consideration. Please refer to Note 7, Fair Value Measurements, for additional details.

Other items consist of foreign exchange transaction gains and losses, gains and losses on the sale of fixed assets, and miscellaneous income and charges.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following fair value hierarchy classifies the inputs to valuation techniques used to measure fair value into one of three levels:

• Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The following tables present the assets and liabilities recorded at fair value on a recurring basis:

	Balance at		Basis of Fair Value Measurements
($ in millions)	September 30, 2015		Level 1		Level 2		Level 3
Assets:
Deferred compensation assets	$	6.4	$	6.4	$	—	$	—
Foreign currency contracts	1.0		—		1.0		—
	$	7.4	$	6.4	$	1.0	$	—
Liabilities:
Contingent consideration	$	5.7	$	—	$	—	$	5.7
Deferred compensation liabilities	8.2		8.2		—		—
Interest rate swap contracts	2.5		—		2.5		—
	$	16.4	$	8.2	$	2.5	$	5.7

	Balance at		Basis of Fair Value Measurements
($ in millions)	December 31, 2014		Level 1		Level 2		Level 3
Assets:
Deferred compensation assets	$	6.6	$	6.6	$	—	$	—
Foreign currency contracts	0.2		—		0.2		—
	$	6.8	$	6.6	$	0.2	$	—
Liabilities:
Contingent consideration	$	5.0	$	—	$	—	$	5.0
Deferred compensation liabilities	8.7		8.7		—		—
Interest rate swap contracts	3.6		—		3.6		—
	$	17.3	$	8.7	$	3.6	$	5.0

Deferred compensation assets are included within other noncurrent assets and are valued using a market approach based on quoted market prices in an active market. The fair value of our foreign currency contracts, included within other current assets, is valued using an income approach based on quoted forward foreign exchange rates and spot rates at the reporting date. The fair value of our contingent consideration, included within other current and other long-term liabilities, is discussed further in the section related to Level 3 fair value measurements. The fair value of deferred compensation liabilities is based on quoted prices of the underlying employees’ investment selections and is included within other long-term liabilities. Interest rate swap contracts, included within other current and long-term liabilities, are valued based on the terms of the contract and observable market inputs (i.e., LIBOR, Eurodollar synthetic forwards and swap spreads). Please refer to Note 6, Derivative Financial Instruments, for further discussion of our derivatives.

Level 3 Fair Value Measurements

The fair value of the contingent consideration liability related to our SmartDose^TM electronic patch injector system (“SmartDose contingent consideration”) was initially determined using a probability-weighted income approach, and is revalued at each reporting date or more frequently if circumstances dictate. Changes in the fair value of this obligation are recorded as income or expense within other expense in our condensed consolidated statements of income. The significant unobservable inputs used in the fair value measurement of the contingent consideration are the sales projections, the probability of success factors, and the discount rate. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. As development and commercialization of SmartDose progresses, we may need to update the sales projections, the probability of success factors, and the discount rate used. This could result in a material increase or decrease to the contingent consideration liability.

The following table provides a summary of changes in our Level 3 fair value measurements:

	Nine Months Ended September 30,
	2015			2014
Beginning Balance	$	5.0		$	4.3
Increase in fair value recorded in earnings	0.8			1.0
Payments	(0.1		)	(0.2		)
Ending Balance	$	5.7		$	5.1

Other Financial Instruments

We believe that the carrying amounts of our cash and cash equivalents and accounts receivable approximate their fair values due to their near-term maturities. The estimated fair value of long-term debt is based on quoted market prices for debt issuances with similar terms and maturities and is classified as Level 2 within the fair value hierarchy. At September 30, 2015, the estimated fair value of long-term debt was $231.3 million compared to a carrying amount of $231.5 million. At December 31, 2014, the estimated fair value of long-term debt was $311.4 million and the carrying amount was $309.5 million.

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Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt

Debt

The following table summarizes our long-term debt obligations, net of current maturities:

($ in millions)	September 30, 2015		December 31, 2014
Series B floating rate notes, due July 28, 2015	$	—	$	25.0
Euro note B, due February 27, 2016	68.7		74.3
Capital leases, due January 1, 2016	0.1		0.2
Revolving credit facility, due April 26, 2017	27.8		29.7
Term loan, due January 1, 2018	37.7		39.2
Note payable, due January 1, 2020	0.2		0.3
Series A notes, due July 5, 2022	42.0		42.0
Series B notes, due July 5, 2024	53.0		53.0
Series C notes, due July 5, 2027	73.0		73.0
	302.5		336.7
Less: current portion of long-term debt	71.0		27.2
	$	231.5	$	309.5

Please refer to Note 8, Debt, to the consolidated financial statements in our 2014 Annual Report for additional details regarding our debt agreements.

At September 30, 2015, we had $27.8 million in outstanding borrowings under our multi-currency revolving credit facility, of which $4.2 million was denominated in Yen and $23.6 million was denominated in Euro. The total amount outstanding under this facility at September 30, 2015 and December 31, 2014 was classified as long-term.

In addition, at September 30, 2015, we had $37.7 million outstanding under our five-year term loan due January 2018, of which $2.2 million was classified as current. Please refer to Note 6, Derivative Financial Instruments, for a discussion of the interest-rate swap agreement associated with this loan.

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Our ongoing business operations expose us to various risks such as fluctuating interest rates, foreign exchange rates and increasing commodity prices. To manage these market risks, we periodically enter into derivative financial instruments such as interest rate swaps, options and foreign exchange contracts for periods consistent with and for notional amounts equal to or less than the related underlying exposures. We do not purchase or hold any derivative financial instruments for speculation or trading purposes. All derivatives are recorded on the balance sheet at fair value.

Interest Rate Risk

At September 30, 2015, we had a $37.7 million forward-start interest rate swap outstanding that hedges the variability in cash flows due to changes in the applicable interest rate of our variable-rate five-year term loan related to the purchase of our corporate office and research building. Under this swap, we receive variable interest rate payments based on one-month London Interbank Offered Rate (“LIBOR”) plus a margin in return for making monthly fixed interest payments at 5.41%. We designated this swap as a cash flow hedge.

Foreign Exchange Rate Risk

During 2015 and 2014, we entered into several foreign currency hedge contracts that were designated as cash flow hedges of forecasted transactions denominated in foreign currencies, which are described in more detail below.

We entered into a series of foreign currency contracts intended to hedge the currency risk associated with a portion of our forecasted U.S. dollar ("USD")-denominated inventory purchases made by certain European subsidiaries, for a total notional amount of €5.3 million ($6.4 million).

We also entered into a series of foreign currency contracts to hedge the currency risk associated with a portion of our forecasted Euro-denominated sales of finished goods by one of our USD functional-currency subsidiaries for a total notional amount of €4.7 million ($5.6 million).

In addition, we entered into several contracts which involve both a written and a purchased option to hedge the currency risk associated with a portion of our forecasted Yen-denominated inventory purchases made by West in the U.S. The notional amounts of these contracts include ¥396.4 million of a derivative asset and ¥396.4 million of a derivative liability, or $3.3 million each.

Lastly, we entered into several contracts which involve both a written and a purchased option to hedge the currency risk associated with a portion of our forecasted Yen-denominated inventory purchases made by certain European subsidiaries. The notional amounts of these contracts include ¥214.1 million of a derivative asset and ¥214.1 million of a derivative liability, or $1.8 million each.

At September 30, 2015, a portion of our debt consisted of borrowings denominated in currencies other than USD. We have designated our €61.1 million ($68.7 million) Euro note B and our €21.0 million ($23.6 million) Euro-denominated borrowings under our multi-currency revolving credit facility as a hedge of our net investment in certain European subsidiaries. A cumulative foreign currency translation gain of $15.0 million pre-tax ($9.5 million after tax) on this debt was recorded within accumulated other comprehensive loss as of September 30, 2015. We have also designated our ¥500.0 million ($4.2 million) Yen-denominated borrowings under our multi-currency revolving credit facility as a hedge of our net investment in Daikyo. At September 30, 2015, there was a cumulative foreign currency translation gain on this Yen-denominated debt of $1.2 million pre-tax ($0.8 million after tax) which was also included within accumulated other comprehensive loss.

Commodity Price Risk

Many of our Packaging Systems products are made from synthetic elastomers, which are derived from the petroleum refining process. We purchase the majority of our elastomers via long-term supply contracts, some of which contain clauses that provide for surcharges related to fluctuations in crude oil prices. The following economic hedges did not qualify for hedge accounting treatment since they did not meet the highly effective requirement at inception.

In November 2014, we purchased a series of call options for a total of 134,700 barrels of crude oil to mitigate our exposure to such oil-based surcharges and protect operating cash flows with regard to a portion of our forecasted elastomer purchases through December 2015. With these contracts we may benefit from a decline in crude oil prices, as there is no downward exposure other than the $0.1 million premium that we paid to purchase the contracts.

During the three and nine months endedSeptember 30, 2015, the loss recorded in cost of goods and services sold related to these call options was less than $0.1 million.

Effects of Derivative Instruments on Financial Position and Results of Operations

The following tables summarize the effects of derivative instruments designated as hedges on other comprehensive income (“OCI”) and earnings, net of tax:

	Amount of Gain (Loss) Recognized in OCI for					Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for						Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Three Months Ended September 30,					Three Months Ended September 30,
($ in millions)	2015			2014		2015			2014
Cash Flow Hedges:
Foreign currency hedge contracts	$	—		$	0.5	$	(0.4	)	$	(0.2	)	Net sales
Foreign currency hedge contracts	(0.3		)	0.2		—			—			Cost of goods and services sold
Interest rate swap contracts	(0.1		)	0.1		0.3			0.4			Interest expense
Forward treasury locks	—			—		0.1			0.1			Interest expense
Total	$	(0.4	)	$	0.8	$	—		$	0.3
Net Investment Hedges:
Foreign currency-denominated debt	$	(0.8	)	$	5.1	$	—		$	—		Other expense
Total	$	(0.8	)	$	5.1	$	—		$	—

	Amount of Gain (Loss) Recognized in OCI for						Amount of (Gain) Loss Reclassified from Accumulated OCI into Income for						Location of (Gain) Loss Reclassified from Accumulated OCI into Income
	Nine Months Ended September 30,						Nine Months Ended September 30,
($ in millions)	2015			2014			2015			2014
Cash Flow Hedges:
Foreign currency hedge contracts	$	1.4		$	0.4		$	(1.1	)	$	(0.1	)	Net sales
Foreign currency hedge contracts	0.3			0.3			—			—			Cost of goods and services sold
Interest rate swap contracts	(0.4		)	(0.2		)	1.1			1.2			Interest expense
Forward treasury locks	—			—			0.2			0.2			Interest expense
Total	$	1.3		$	0.5		$	0.2		$	1.3
Net Investment Hedges:
Foreign currency-denominated debt	$	4.7		$	5.6		$	—		$	—		Other expense
Total	$	4.7		$	5.6		$	—		$	—

For the three and nine months endedSeptember 30, 2015 and 2014, there was no material ineffectiveness related to our hedges.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

 Stock-Based Compensation

The 2011 Omnibus Incentive Compensation Plan (the "2011 Plan") provides for the granting of stock options, stock appreciation rights, restricted stock awards and performance awards to employees and non-employee directors. The terms and conditions of awards to be granted are determined by our Board's nominating and corporate governance and compensation committees. Vesting requirements vary by award. At September 30, 2015, there were 2,639,265 shares remaining in the 2011 Plan for future grants.

During the nine months ended September 30, 2015, we granted 905,028 stock options at a weighted average exercise price of $55.63 per share based on the grant-date fair value of our stock to key employees under the 2011 Plan, including shares issued in conjunction with the Chief Executive Officer ("CEO") succession. The weighted average grant date fair value of options granted was $10.50 per share as determined by the Black-Scholes option valuation model using the following weighted average assumptions: a risk-free interest rate of 1.61%; expected life of 5.8 years based on prior experience; stock volatility of 19.2% based on historical data; and a dividend yield of 0.9%. Stock option expense is recognized over the vesting period, net of forfeitures.

During the nine months ended September 30, 2015, we granted 140,369 performance vesting share (“PVS”) awards at a weighted grant-date fair value of $55.26 per share to key employees under the 2011 Plan, including shares issued in conjunction with the CEO succession. Each PVS award entitles the holder to one share of our common stock if the annual growth rate of revenue and return on invested capital targets are achieved over a three-year performance period. Shares earned under PVS awards may vary from 0% to 200% of an employee’s targeted award. The fair value of PVS awards is based on the market price of our stock at the grant date and is recognized as expense over the performance period, adjusted for estimated target outcomes and net of forfeitures.

In addition, during the nine months ended September 30, 2015, we granted 30,499 restricted share awards at a grant-date fair value of $57.38 per share to the new CEO under the 2011 Plan. The fair value of the award is based on the market price of our stock at the grant date and is recognized as expense over the vesting period.

Total stock-based compensation expense was $3.6 million and $24.4 million for the three and nine months endedSeptember 30, 2015, respectively. Included in the amount for the nine months ended September 30, 2015 was a $10.4 million charge related to executive retirements, which was recorded within other expense, with the remainder of the balance recorded in selling, general and administrative expenses. Please refer to Note 11, Other Expense, for further discussion of this charge. For the three and nine months endedSeptember 30, 2014, total stock-based compensation expense was $3.6 million and $12.5 million, respectively.

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Net Income Per Share (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income	$ 1.5	$ 31.0	$ 62.2	$ 95.7
Weighted average common shares outstanding (in shares)	72.2	71.0	71.9	70.8
Dilutive effect of stock options, stock appreciation rights and performance share awards, based on the treasury stock method (in shares)	1.7	1.6	1.7	1.7
Weighted average shares assuming dilution (in shares)	73.9	72.6	73.6	72.5
Antidilutive options excluded from computation of diluted net income per share (in shares)	0.8	0.6	0.6	0.5

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Segment Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Segment Reporting [Abstract]
Number of reportable segments			2
Pension settlement charge	$ 49.0		$ 49.0
Executive retirement and related costs			10.9
License costs		$ 1.2		$ 1.2
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	344.5	355.9	1,040.1	1,071.6
Total operating (loss) profit	(3.5)	44.0	83.4	137.4
Interest expense	3.7	4.5	11.2	12.7
Interest income	0.5	1.8	1.3	2.7
(Loss) income before income taxes	(6.7)	41.3	73.5	127.4
Packaging Systems [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	247.2	251.7	749.3	772.6
Total operating (loss) profit	56.5	52.8	179.2	167.1
Delivery Systems [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	97.6	104.4	291.7	299.5
Total operating (loss) profit	1.3	4.8	4.8	8.3
Intersegment sales elimination [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net sales	(0.3)	(0.2)	(0.9)	(0.5)
Corporate [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total operating (loss) profit	(12.3)	(12.4)	(40.7)	(36.8)
Other unallocated items [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total operating (loss) profit	$ (49.0)	$ (1.2)	$ (59.9)	$ (1.2)

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

From time to time, we are involved in product liability matters and other legal proceedings and claims generally incidental to our normal business activities. We accrue for loss contingencies when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. While the outcome of current proceedings cannot be accurately predicted, we believe their ultimate resolution should not have a material adverse effect on our business, financial condition, results of operations or liquidity.

There have been no significant changes to the commitments and contingencies included in our 2014 Annual Report.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories are valued at the lower of cost (on a first-in, first-out basis) or market. Inventory balances were as follows:

($ in millions)	September 30, 2015		December 31, 2014
Raw materials	$	78.0	$	79.9
Work in process	31.1		25.6
Finished goods	78.6		76.0
	$	187.7	$	181.5

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Other Expense (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2013
Other Income and Expenses [Abstract]
Pension settlement charge	$ 49.0		$ 49.0
Executive retirement and related costs			10.9
Stock-based compensation expense, long-term incentive plan award			2.4
Stock-based compensation expense, plan modification & acceleration			8.0
Other retirement related costs			0.5
License costs		$ 1.2		$ 1.2
Nonrefundable payment from customer	16.3		16.3		$ 20.0
Unearned income, current	1.5		1.5
Unearned income, noncurrent	14.8		14.8
Development income	$ 0.3	$ 0.3	$ 1.1	$ 1.2

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Fair Value Measurements (Details 2) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Other Financial Instruments [Abstract]
Long-term debt, fair value	$ 231.3	$ 311.4
Long-term debt	$ 231.5	$ 309.5

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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 256.8	$ 255.3
Accounts receivable, net	194.6	179.0
Inventories	187.7	181.5
Deferred income taxes	8.3	7.8
Other current assets	33.5	35.7
Total current assets	680.9	659.3
Property, plant and equipment	1,398.3	1,390.8
Less accumulated depreciation and amortization	708.8	685.0
Property, plant and equipment, net	689.5	705.8
Investments in affiliated companies	59.2	60.6
Goodwill	105.7	108.6
Deferred income taxes	66.9	66.1
Intangible assets, net	38.6	42.0
Other noncurrent assets	25.7	28.5
Total Assets	1,666.5	1,670.9
Current liabilities:
Notes payable and other current debt	71.0	27.2
Accounts payable	93.6	103.1
Pension and other postretirement benefits	2.5	2.6
Accrued salaries, wages and benefits	56.2	52.9
Income taxes payable	19.0	14.9
Other current liabilities	57.6	51.8
Total current liabilities	299.9	252.5
Long-term debt	231.5	309.5
Deferred income taxes	9.4	15.7
Pension and other postretirement benefits	81.5	83.7
Other long-term liabilities	48.9	52.6
Total Liabilities	$ 671.2	$ 714.0
Commitments and contingencies (Note 13)
Equity:
Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding	$ 0.0	$ 0.0
Common stock, $0.25 par value; 100.0 million shares authorized; issued: 72.2 million and 71.4 million; outstanding: 72.1 million and 71.3 million	18.0	17.8
Capital in excess of par value	195.8	160.2
Retained earnings	939.9	902.2
Accumulated other comprehensive loss	(154.4)	(119.2)
Treasury stock, at cost (0.1 million and 0.1 million shares)	(4.0)	(4.1)
Total Equity	995.3	956.9
Total Liabilities and Equity	$ 1,666.5	$ 1,670.9

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New Accounting Standards

9 Months Ended

Sep. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Standards

New Accounting Standards

Recently Adopted Standards

In April 2014, the Financial Accounting Standards Board ("FASB") issued guidance for the reporting of discontinued operations, which also contained new disclosure requirements for both discontinued operations and other disposals that do not meet the definition of a discontinued operation. We adopted this guidance as of January 1, 2015, on a prospective basis. The adoption did not have a material impact on our financial statements.

Standards Issued Not Yet Adopted

In September 2015, the FASB issued guidance that simplifies the accounting for measurement-period adjustments in business combinations, by eliminating the requirement to account for those adjustments retrospectively. Instead, the acquirer will be required to recognize measurement-period adjustments in the reporting period in which the amounts are determined. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In July 2015, the FASB issued guidance regarding the subsequent measurement of inventory. This guidance requires inventory measured using any method other than last-in, first-out or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value represents estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In April 2015, the FASB issued guidance on the accounting for fees paid by a customer in a cloud computing arrangement. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management is currently evaluating the impact that this guidance will have on our financial statements, if any.

In April 2015, the FASB issued guidance which changes the classification of debt issuance costs, from an asset on the balance sheet to netting the costs against the carrying value of the debt. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In January 2015, the FASB issued guidance which removes the concept of extraordinary items from U.S. GAAP. This guidance eliminates the requirement for companies to spend time assessing whether items meet the criteria of being both unusual and infrequent. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In August 2014, the FASB issued guidance which defines management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In June 2014, the FASB issued guidance that clarifies the accounting for share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. In this case, the performance target would be required to be treated as a performance condition, and should not be reflected in estimating the grant-date fair value of the award. The guidance also addresses when to recognize the related compensation cost. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Management believes that the adoption of this guidance will not have a material impact on our financial statements.

In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for interim and annual reporting periods beginning on or after December 15, 2017. Early adoption is permitted as of one year prior to the current effective date. Entities can choose to apply the guidance using either a full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on our financial statements, if any, including which transition method it will adopt.

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Debt (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Long-term Debt Obligations, Net of Current Maturities

The following table summarizes our long-term debt obligations, net of current maturities:

($ in millions)	September 30, 2015		December 31, 2014
Series B floating rate notes, due July 28, 2015	$	—	$	25.0
Euro note B, due February 27, 2016	68.7		74.3
Capital leases, due January 1, 2016	0.1		0.2
Revolving credit facility, due April 26, 2017	27.8		29.7
Term loan, due January 1, 2018	37.7		39.2
Note payable, due January 1, 2020	0.2		0.3
Series A notes, due July 5, 2022	42.0		42.0
Series B notes, due July 5, 2024	53.0		53.0
Series C notes, due July 5, 2027	73.0		73.0
	302.5		336.7
Less: current portion of long-term debt	71.0		27.2
	$	231.5	$	309.5

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Effects of Derivative Instruments on OCI and Earnings (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	$ (0.4)	$ 0.8	$ 1.3	$ 0.5
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	0.0	0.3	0.2	1.3
Net Investment Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	(0.8)	5.1	4.7	5.6
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	0.0	0.0	0.0	0.0
Foreign Currency Hedge Contracts [Member] | Net Sales [Member] | Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	0.0	0.5	1.4	0.4
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	(0.4)	(0.2)	(1.1)	(0.1)
Foreign Currency Hedge Contracts [Member] | Cost of Goods and Services Sold [Member] | Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	(0.3)	0.2	0.3	0.3
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	0.0	0.0	0.0	0.0
Interest Rate Swap Contracts [Member] | Interest Expense [Member] | Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	(0.1)	0.1	(0.4)	(0.2)
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	0.3	0.4	1.1	1.2
Forward Treasury Locks [Member] | Interest Expense [Member] | Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	0.0	0.0	0.0	0.0
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	0.1	0.1	0.2	0.2
Foreign Currency - Denominated Debt [Member] | Other Expense (Income) [Member] | Net Investment Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI	(0.8)	5.1	4.7	5.6
Amount of (Gain) Loss Reclassified from Accumulated OCI into Income	$ 0.0	$ 0.0	$ 0.0	$ 0.0

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings before taxes, adjusted for the impact of discrete quarterly items.

During the three months ended September 30, 2015, we recorded a tax benefit of $6.6 million, as compared to tax expense of $11.7 million that was recorded during the three months ended September 30, 2014. Our third quarter 2015 results include a tax benefit of $17.9 million in connection with the $49.0 million pension settlement charge discussed in Note 9, Benefit Plans.

The provision for income taxes was $15.1 million and $35.5 million for the nine months ended September 30, 2015 and 2014, respectively. In addition to the tax benefit on the pension settlement charge, our 2015 year-to-date results include a $4.0 million tax benefit in connection with the $10.9 million charge for the executive retirement and related costs discussed in Note 11, Other Expense.