*	~~Quantity of reserves that would be owned if patent was granted.~~

**	~~Unassigned reserves are reserves which we expect will require additional expenditures for processing facilities.~~

~~Our~~Measured, Indicated and Inferred Resources

The following table sets forth the Company’s measured, indicated and inferred resources by major minerals category at December 31, 2021.

									Total Resources (1)(2) Tons (000s)
	Measured Resources (1)(2) Tons (000s)		Indicated Resources (1)(2) Tons (000s)		Measured and Indicated (1)(2) Resources Tons (000s)		Inferred (1)(2) Resources Tons (000s)		Owned			Unpatented (3)			Leased
Limestone
Adams, MA		12,792		1,930		14,722		584		15,306			—			—
Canaan, CT		31,823		25,737		57,560		3,674		61,234			—			—
Lucerne Valley, CA		32,077		23,651		55,728		7,319		63,047			—			—
Pima County, AZ		—		—		—		—		—			—			—
Total Limestone		76,692		51,318		128,010		11,577		139,587			—			—
										100	%		0	%		0	%
Talc
Dillon, MT		1,218		676		1,894		1,023		2,329			—			588
										80	%		0	%		20	%
Sodium Bentonite
Australia		—		1,231		1,231		—		—			—			1,231
Belle/Colony, WY/SD		6,359		6,994		13,353		94		—			8,309			5,138
Lovell, WY		400		57		457		3,146		926			2,677			—
Other SD, WY, MT		4,612		—		4,612		11,030		—			15,642			—
Total Sodium Bentonite		11,371		8,282		19,653		14,270		926			26,628			6,369
										3	%		78	%		19	%
Calcium Bentonite
Chao Yang, Liaoning, China		—		300		300		937		—			—			1,237
Nevada		—		—		—		—		—			—			—
Sandy Ridge, AL		1,571		—		1,571		—		—			—			1,571
Turkey, Enez		39		—		39		1,192		—			—			1,231
Turkey, Usak		—		400		400		1,800		—			—			2,200
Turkey, Unye		—		1,320		1,320		17,000		—			—			18,320
Total Calcium Bentonite		1,610		2,020		3,630		20,929		—			—			24,559
										0	%		0	%		100	%
Leonardite
Gascoyne, ND		1,435		—		1,435		790		—			—			2,225
										0	%		0	%		100	%
Chromite
South Africa		800		584		1,384		11,320		—			—			12,704
										0	%		0	%		100	%
Other
Nevada		—		2,997		2,997		3,031		—			6,028			—
										0	%		100	%		0	%

GRAND TOTALS		93,126		65,877		159,003		62,940		142,842			32,656			46,445
										64	%		16	%		21	%

(1) Certain definitions:

The term " mineral resource" indicates a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.

The term "measured resource" indicates a mineral resource for which quantity and grade or quality are estimated based on conclusive geological evidence and sampling.

The term "indicated resource" indicates a mineral resource for which quantity and grade or quality are estimated based on adequate geological evidence and sampling.

The term "inferred resource" indicates a mineral resource for which quantity and grade or quality are estimated based on limited geological evidence and sampling.

(2) Mineral resources estimates were calculated and prepared by the Company's in-house technical staff.

(3) Quantity of resources that would be owned if patent was granted.

The estimates of total reserves and resources noted in the ~~table~~tables above require usthe Company to make certain key assumptions. These assumptions relate to consistency of deposits in relation to drilling samples obtained with respect to both quantity and quality of reserves contained therein; the ratio of overburden to mineral deposits; any environmental or social impact of mining the minerals; and profitability of extracting those minerals, including haul distance to processing plants, applicability of minerals to various end markets and selling prices within those markets, and our past experiences in the deposits, several of which we have been operating in for many decades.

The Company maintains a Mining Lead Team that develops standards and systems to ensure Company-wide use of best practices for mining and exploration practices. The Mining Lead Team ensures that the Company maintains robust controls over its exploration and resource and reserve estimation efforts. In particular, because the Company has a long history of operations at its mining operations, the Company is able to continuously validate its resource and reserve estimates by reference to actual production from each mine. During the process from exploration to final production, ore is tested a minimum of 3 times beginning with exploration drilling, again after overburden removal and finally on finished products after plant processing. In some cases when blending ore grades, an additional step of testing occurs on stockpiles after hauling from the mine but before plant processing. The quantities, qualities, and costs of grades obtained from mining and processing are reconciled to quantities, qualities, and costs from reserve estimates and mine models. To enable additional verification of reserves if needed, all exploration samples are retained until areas are mined out and reclaimed.

The Company believes that its facilities, which are of varying ages and are of different construction types, have been satisfactorily maintained, are in good condition, are suitable for the Company's operations and generally provide sufficient capacity to meet the Company's production requirements. Based on past loss experience, the Company believes it is adequately insured with respect to these assets and for liabilities likely to arise from its operations.

25 Assuming the continuation of 2021 annualized usage rates, the Company has reserves of commercially usable sodium bentonite for the next 48 years, commercially usable calcium bentonite for the next 15 years and commercially usable leonardite for more than 46 years. At current usage levels, the Company has reserves in excess of 29 years at its limestone production facilities and in excess of 9 years at its talc production facility.

The Company has ongoing exploration and development activities for all of its mineral interests with the intent to increase its proven and probable reserves.

Item 3. Legal Proceedings

The Company and its subsidiaries are involved in the legal and environmental proceedings described in Note 17 to the consolidated financial statements included elsewhere in this report, which disclosure is incorporated herein by reference. From time to time, the Company and its subsidiaries are also the subject of various ~~pending~~routine legal actions and claims arising in the ordinary course of their businesses. ~~Except as described below, none of such legal proceedings are material.~~

~~Silica and Asbestos Litigation~~

Certain of the Company's subsidiaries are among numerous defendants in a number of cases seeking damages for exposure to silica or to asbestos containing materials. As of the close of 2019, the Company had three pending silica cases and one hundred nineteen pending asbestos cases. In total, 1,493 silica cases and 64 asbestos cases have been dismissed, not including any lawsuits against AMCOL or American Colloid Company dismissed prior to our acquisition of AMCOL. Ninety six new asbestos cases were filed in 2019. Seven asbestos cases were dismissed during 2019 and no silica cases were dismissed during 2019. Most of these claims do not provide adequate information to assess their merits, the likelihood that the Company will be found liable, or the magnitude of such liability, if any. Additional claims of this nature may be made against the Company or its subsidiaries. At this time management anticipates that the amount of the Company's liability, if any, and the cost of defending such claims, will not have a material effect on its financial position or results of operations.

The Company has settled only one silica lawsuit, for a nominal amount, and no asbestos lawsuits to date (not including any that may have been settled by AMCOL prior to completion of the acquisition). We are unable to state an amount or range of amounts claimed in any of the lawsuits because state court pleading practices do not require identifying the amount of the claimed damage. The aggregate cost to the Company for the legal defense of these cases since inception continues to be insignificant. The majority of the costs of defense for these cases, excluding cases against AMCOL or American Colloid, are reimbursed by Pfizer Inc. pursuant to the terms of certain agreements entered into in connection with the Company's initial public offering in 1992. The Company is entitled to indemnification, pursuant to agreement, for sales prior to the initial public offering. Of the 119 pending asbestos cases, 49 of the non-AMCOL cases are subject to indemnification, in whole or in part, because the plaintiffs claim liability based on sales of products that occurred either entirely before the initial public offering, or both before and after the initial public offering. Sixty two of the sixty six remaining non-AMCOL cases are subject to indemnity in part until dates of exposure, which were not alleged in the complaint, can be ascertained in discovery. In the 4 remaining non-AMCOL cases, exposure is alleged to have been after the Company's initial public offering in 1992. The remaining 4 cases involve AMCOL only, so no Pfizer indemnity is available. Our experience has been that the Company is not liable to plaintiffs in any of these lawsuits and the Company does not ~~expect~~anticipate that the individual or aggregate liability arising out of litigation pending or claims known to ~~pay any settlements or jury verdicts in these lawsuits.~~

The Company is also the respondent in an arbitration requested by the Plan Administrator for the Bankruptcy Estate of Novinda Corp. (“Novinda”), a start-up company which declared bankruptcy in April 2016 and with which the Company had several relationships, including an equity and debt interest and a product supply relationship. On July 30, 2018, the Plan Administrator filed a Demand for Arbitrationbe threatened against the Company and ~~certain of~~ its officers, which demands damages (including fees, interest, and punitive damages) for the alleged destruction of Novinda’s business. The Company has meritorious defenses for this matter. We are awaiting the outcome of the arbitration, which occurred in the fourth quarter of 2019. The Company is not able to reasonably estimate the amount, if any, of reasonably possible loss from this matter and has not recorded a loss contingency liability. We do not expect the outcome of this matter tosubsidiaries will have a material adverse effect on ~~our financial position although, if determined adversely, it could materially impact~~the Company’s results of operations, in the period recorded. There can be no assurance as to the ultimate outcome of this matter. The Company has recorded litigation expenses of $10.9 million related to this matter as of December 31, 2019.cash flows or financial condition.

~~Environmental Matters~~

On April 9, 2003, the Connecticut Department of Environmental Protection issued an administrative consent order relating to our Canaan, Connecticut, plant where both our Refractories segment and Specialty Minerals segment have operations. We agreed to the order, which includes provisions requiring investigation and remediation of contamination associated with historic use of polychlorinated biphenyls ("PCBs") and mercury at a portion of the site. We have completed the required investigations and submitted several reports characterizing the contamination and assessing site-specific risks. We are awaiting regulators’ approval of the risk assessment report, which will form the basis for a proposal by the Company concerning eventual remediation.

We believe that the most likely form of overall site remediation will be to leave the existing contamination in place (with some limited soil removal), encapsulate it, and monitor the effectiveness of the encapsulation. We anticipate that a substantial portion of the remediation cost will be borne by the United States based on its involvement at the site from 1942 – 1964, as historic documentation indicates that PCBs and mercury were first used at the facility at a time of U.S. government ownership for production of materials needed by the military. Pursuant to a Consent Decree entered on October 24, 2014, the United States paid the Company $2.3 million in the 4^th quarter of 2014 to resolve the Company’s claim for response costs for investigation and initial remediation activities at this facility through October 24, 2014. Contribution by the United States to any future costs of investigation or additional remediation has, by agreement, been left unresolved. Though the cost of the likely remediation remains uncertain pending completion of the phased remediation decision process, we have estimated that the Company’s share of the cost of the encapsulation and limited soil removal described above would approximate $0.4 million, which has been accrued as of December 31, 2019.

The Company is evaluating options for upgrading the wastewater treatment facilities at its Adams, Massachusetts plant. This work has been undertaken pursuant to an administrative Consent Order originally issued by the Massachusetts Department of Environmental Protection (“DEP”) on June 18, 2002. This order was amended on June 1, 2009 and on June 2, 2010. The amended Order includes the investigation by January 1, 2022 of options for ensuring that the facility's wastewater treatment ponds will not result in unpermitted discharge to groundwater. Additional requirements of the amendment include the submittal by July 1, 2022 of a plan for closure of a historic lime solids disposal area. Preliminary engineering reviews completed in 2005 indicate that the estimated cost of wastewater treatment upgrades to operate this facility beyond 2024 may be between $6 million and $8 million. The Company estimates that the remaining remediation costs would approximate $0.4 million, which has been accrued as of December 31, 2019.

Item 4. Mine Safety Disclosures

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Annual Report on Form 10-K.

Information About Our Executive Officers

Set forth below are the names and ages of all Executive Officers of the Registrant indicating all positions and offices with the Registrant held by each such person, and each such person's principal occupations or employment during the past five years.

Name	Age	Position
Douglas T. Dietrich	5052	Chairman of the Board and Chief Executive Officer
Brett Argirakis	5557	Senior Vice President and Managing Director, Minteq International Inc. and MTI Global Supply Chain
Michael A. Cipolla	6264	Vice President, Corporate Controller and Chief Accounting Officer
Erin N. Cutler	34	Vice President, Human Resources
Matthew E. Garth	4547	Senior Vice President, Finance and Treasury, Chief Financial Officer
Jonathan J. Hastings	5759	Group President, Performance Materials
~~Andrew M. Jones~~	61	~~Vice President and Managing Director, Energy Services~~
Douglas W. Mayger	6264	Senior Vice President and Head of Global Operations, Performance Materials
Thomas J. Meek	6264	Senior Vice President, General Counsel, ~~Human Resources,~~ Secretary and Chief
		Compliance Officer
D.J. Monagle, III	5759	Group President, Specialty Minerals and Refractories

Douglas T. Dietrich was elected Chairman of the Board in March 2021. He has served as the Chief Executive Officer ~~effective~~since December 2016. He joined the Company in August 2007 as Vice President, Corporate Development and Treasury, and was appointed Senior Vice President, Finance and Treasury, Chief Financial Officer effective January 2011. Prior to joining the Company, Mr. Dietrich was Vice President, Alcoa Wheel Products since 2006 and President, Alcoa Latin America Extrusions and Global Rod and Bar Products since 2002.

Brett Argirakis was elected to Senior Vice President and Managing Director, Minteq International Inc. and MTI Global Supply Chain in ~~January~~December 2020. Prior to that, he was Vice President and Managing Director, Minteq International effective in 2016. In October 2019, he was given the additional responsibility for MTI Global Supply Chain. Mr. Argirakis joined the Company in 1987 and has held positions of increasing responsibility. Prior to his current position, he was Global Vice President & General Manager, Refractories effective August 2009. Prior to that, he served as Director, Marketing, Minteq Europe and as Director of Sales and Field Operations for Minteq U.S.

Michael A. Cipolla was elected Vice President, Corporate Controller and Chief Accounting Officer in July 2003. Prior to that, he served as Corporate Controller and Chief Accounting Officer of the Company since 1998. From 1992 to 1998 he served as Assistant Corporate Controller of the Company.

Erin N. Cutler was elected Vice President, Human Resources effective August 2020. Prior to that, she was Director, Talent Management, where she led major human resources initiatives including enhancing talent management and succession practices, strengthening talent acquisition efforts, and building talent development programs through the creation and deployment of internship and mentorship programs. Prior to joining the Company in July 2015, she was employed by Pratt Industries where she held multiple human resource positions of increasing responsibility.

Matthew E. Garth was elected Senior Vice President, Finance and Treasury, Chief Financial Officer effective January 2017. Mr. Garth joined the Company from Arconic Inc. (formerly Alcoa Inc.), where most recently he had been Vice President, Financial Planning & Analysis and Investor Relations since 2015. Prior to his most recent position, he was Vice President, Finance & CFO Operations-Alcoa Global Packing from 2014 to 2015; Vice President, Finance- Alcoa Global Packing from 2011 to 2014; Vice President, Finance – Alcoa North American Rolled Products from 2010 to 2011; Director, Investor Relations Alcoa Inc. from 2009 to 2010; and Director, Corporate Treasury Alcoa Inc. from 2007 to 2009.

Jonathan J. Hastings was elected Group President, Performance Materials effective June 2018. He joined the Company in September 2011 as Vice President, Corporate Development, and was appointed Senior Vice President, Corporate Development effective April 2013. Prior to joining the Company, he was Senior Director of Strategy and New Business Development – Coatings, Global at The Dow Chemical Company. Prior to that he held positions of increasing responsibility at Rohm and Haas, including Vice President & General Manager – Packaging and Building Materials – Europe.

Andrew M. Jones was elected Vice President and Managing Director, Energy Services in October 2015. Prior to that, he was Vice President and Managing Director, Eastern Hemisphere, Energy Services since 2014 and Vice President of CETCO Oilfield Services West Africa since 2012. Prior to joining the Company, he was Managing Director of Africa Oilfield Services since 2009.

Douglas W. Mayger was elected Senior Vice President and Head of Global Operations, Performance Materials in October 2019. Prior to that, he was Senior Vice President and Director – MTI Supply Chain effective November 2015. Prior to that, he was Senior Vice President, Performance Minerals and Supply Chain effective June 2011. Prior to that, he was Vice President and Managing Director, Performance Minerals, effective October 2008. He joined the Company as plant manager in Lucerne Valley in 2002, and subsequently was Business Manager – Western Region and General Manager – Carbonates West, Performance Minerals. Before joining the Company, he served as Vice President of Operations for Aggregate Industries.

Thomas J. Meek was elected Senior Vice President, General Counsel and Secretary, Chief Compliance Officer in October 2012. Mr. Meek joined the Company as Vice President, General Counsel and Secretary effective September 1, 2009. In December 2011, he was given the additional responsibility for Human Resources. Prior to joining the Company, he served as Deputy General Counsel at Alcoa Inc. Before joining Alcoa Inc. in 1999, Mr. Meek worked with Koch Industries, Inc. of Wichita, Kansas, where he held numerous supervisory positions. His last position there was Interim General Counsel. From 1985 to 1990, Mr. Meek was an Associate/Partner in the Wichita, Kansas law firm of McDonald, Tinker, Skaer, Quinn & Herrington, P.A.

D.J. Monagle III was named Group President, Specialty Minerals and Refractories in March 2017. Prior to that, he was Senior Vice President, Chief Operating Officer – Specialty Minerals Inc. and Minteq Group, effective February 2014. Prior to that, he was Senior Vice President and Managing Director, Paper PCC, effective October 2008. In November 2007, he was appointed Vice President and Managing Director – Performance Minerals. He joined the Company in January of 2003 and held positions of increasing responsibility including Vice President, Americas, Paper PCC and Global Marketing Director, Paper PCC. Before joining the Company, Mr. Monagle worked for the Paper Technology Group at Hercules between 1990 and 2003, where he held sales and marketing positions of increasing responsibility. Between 1985 and 1990, he served as an aviation officer in the U.S. Army’s 11th Armored Cavalry Regiment, leaving the service as a troop commander with a rank of Captain.

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

The Company's common stock is traded on the New York Stock Exchange under the symbol "MTX".

Holders

On February ~~5, 2020~~4, 2022 there were approximately ~~170~~182 holders of record of the common stock.

Issuer Purchases of Equity Securities

Period
Total Number of
Shares Purchased

Average Price
Paid Per Share

Total Number of
Shares Purchased as
Part of the Publicly
Announced Program

Dollar Value of
Shares that May
Yet be Purchased
Under the Program

September 30 - October 27 — $ — - $ 75,000,000
October 28 - November 24 92,883 $ 54.10 92,883 $ 69,974,900
November 25 - December 31 267,490 $ 55.96 360,373 $ 55,005,426
Total 360,373 $ 55.48

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of the Publicly Announced Program		Dollar Value of Shares that May Yet be Purchased Under the Program
October 4 - October 31		—	$	—		1,016,088	$	930,890
Total		—	$	—

November 1 - November 28		66,716	$	73.43		66,716	$	70,100,805
November 29 - December 31		98,166	$	70.15		164,882	$	63,213,974
Total		164,882	$	71.48

On ~~September~~October 21, ~~2017,~~2020, the Company's Board of Directors authorized the ~~Company’s~~Company's management to repurchase, at its discretion, up to ~~$150~~$75 million of the ~~Company’s~~Company's shares over a ~~two-year period commencing October 1, 2017. This program is now completed.~~one-year period. Over this program's ~~two-year~~one-year period, ~~734,591~~1,016,088 shares were repurchased ~~under this program~~ for ~~$42.7~~$$74.1 million, or an average price of approximately ~~$58.11~~$72.90 per share. This program is now complete.

On October ~~23, 2019,~~20, 2021, the Company's Board of Directors authorized the Company's management to repurchase, at its discretion, up to $75 million of the Company's shares over a one-year period. As of December 31, ~~2019, 360,373~~2021, 164,882 shares have been repurchased under this program for ~~$20.0~~$11.8 million, or an average price of approximately ~~$55.48~~$71.48 per share.

Performance Graph

The graph below compares Minerals Technologies Inc.'s cumulative 5-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, and the S&P MidCap 400 Materials Sector. The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/~~2014~~2016 to 12/31/~~2019.~~2021.

	2016		2017		2018		2019		2020		2021
Minerals Technologies Inc.	$	100.00	$	89.38	$	66.85	$	75.32	$	81.49	$	96.22
S&P 500		100.00		121.83		116.49		153.17		181.35		233.41
S&P Midcap 400		100.00		116.24		103.36		130.44		148.26		184.96
Dow Jones US Industrials		100.00		124.54		110.52		146.78		173.09		204.88
Dow Jones US Basic Materials		100.00		125.09		104.86		125.58		148.59		189.87
S&P MidCap 400 Materials Sector		100.00		121.57		94.76		114.66		133.03		177.25

The graph below compares Minerals Technologies Inc.'s cumulative 3-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, and the S&P MidCap 400 Materials Sector. The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2018 to 12/31/2021.

	2014		2015		2016		2017		2018		2019		2018		2019		2020		2021
Minerals Technologies Inc.	$	100.00	$	66.25	$	111.97	$	100.07	$	74.85	$	84.34	$	100.00	$	112.68	$	121.91	$	143.93
S&P 500		100.00		101.38		113.51		138.29		132.23		173.86		100.00		131.49		155.68		200.37
S&P Midcap 400		100.00		97.82		118.11		137.30		122.08		154.07		100.00		126.20		143.44		178.95
Dow Jones US Industrials		100.00		98.31		117.51		146.34		129.87		172.48		100.00		132.81		156.62		185.39
Dow Jones US Basic Materials		100.00		87.57		105.32		131.75		110.44		132.26		100.00		119.76		141.70		181.07
S&P MidCap 400 Materials Sector		100.00		84.52		117.94		142.17		113.49		137.63		100.00		121.00		140.39		187.05

~~Item 6. Selected Financial Data~~The graph below compares Minerals Technologies Inc.'s cumulative 1-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, and the S&P MidCap 400 Materials Sector. The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2020 to 12/31/2021.

Year Ended December 31,
(in millions, except per share data) 2019 2018 2017 2016 2015
Net sales $ 1,791.0 $ 1,807.6 $ 1,675.7 $ 1,638.0 $ 1,797.6
Cost of sales 1,350.4 1,346.2 1,208.5 1,177.6 1,326.6

Production margin 440.6 461.4 467.2 460.4 471.0

Marketing and administrative expenses 187.5 178.6 180.7 176.4 184.4
Research and development expenses 20.3 22.7 23.7 23.8 23.6
Acquisition-related transaction and integration costs — 1.7 3.4 8.0 11.8
Litigation expenses 10.9 — — — —
Restructuring and other items, net 13.2 2.5 15.0 28.3 45.2

Income from operations 208.7 255.9 244.4 223.9 206.0

Interest expense, net (43.2 ) (45.9 ) (43.4 ) (54.4 ) (60.9 )
Debt modification costs and fees — — (3.9 ) — (4.5 )
Non-cash pension settlement charge — (4.4 ) — — —
Other non-operating income (deductions), net (8.2 ) (1.5 ) (6.2 ) 0.8 (8.0 )
Total non-operating deductions, net (51.4 ) (51.8 ) (53.5 ) (53.6 ) (73.4 )

Income from operations before tax and equity in earnings 157.3 204.1 190.9 170.3 132.6
Provision (benefit) for taxes on income* 22.8 34.4 (6.6 ) 35.3 22.8
Equity in earnings of affiliates, net of tax 1.9 3.5 1.5 2.1 1.8

Consolidated net income 136.4 173.2 199.0 137.1 111.6

Less:

Net income attributable to non-controlling interests 3.7 4.2 3.9 3.7 3.7
Net income attributable to Minerals Technologies Inc. (MTI) $ 132.7 $ 169.0 $ 195.1 $ 133.4 $ 107.9

Earnings per share attributable to MTI:

Basic:
Income from continuing operations $ 3.79 $ 4.79 $ 5.54 $ 3.82 $ 3.11
Income from discontinued operations — — — — —
Basic earnings per share $ 3.79 $ 4.79 $ 5.54 $ 3.82 $ 3.11

Diluted:
Income from continuing operations $ 3.78 $ 4.75 $ 5.48 $ 3.79 $ 3.08
Income from discontinued operations — — — — —
Diluted earnings per share $ 3.78 $ 4.75 $ 5.48 $ 3.79 $ 3.08

Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20

Shares used in computation of earnings per share:
Basic 35.0 35.3 35.2 34.9 34.7
Diluted 35.1 35.6 35.6 35.2 35.0

During the fourth quarter of 2017, the Company recorded a provisional $47 million income tax benefit from the U.S. Tax Cuts and Job Acts legislation. This benefit is comprised of an $82 million benefit which related primarily to the remeasurement of the Company’s U.S. deferred tax liabilities at a lower U.S. tax rate of 21%, partially offset by tax expense of $35 million for the deemed repatriation of unremitted earnings of foreign subsidiaries. During 2018, the Company recorded a benefit of $4.4 million as a measurement period adjustment to the deemed repatriation of unremitted earnings of foreign subsidiaries.

Year Ended December 31,
(in millions) 2019 2018 2017 2016 2015
Working capital $ 520.7 $ 494.4 $ 542.2 $ 455.6 $ 485.0
Total assets 3,112.6 3,087.1 2,970.4 2,863.4 2,980.0
Long-term debt, net of unamortized discount and deferred financing costs 824.3 907.8 959.8 1,069.9 1,255.3
Total debt 927.6 1,016.3 969.9 1,082.8 1,264.9
Total shareholders' equity 1,434.6 1,385.3 1,279.1 1,030.9 937.7

	2020		2021
Minerals Technologies Inc.	$	100.00	$	118.07
S&P 500		100.00		128.71
S&P Midcap 400		100.00		124.76
Dow Jones US Industrials		100.00		118.37
Dow Jones US Basic Materials		100.00		127.78
S&P MidCap 400 Materials Sector		100.00		133.24

Item 6. [Reserved]

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement for “Safe Harbor” Purposes under the Private Securities Litigation Reform Act of 1995

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. This report contains statements that the Company believes may be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, particularly statements relating to the Company’s objectives, plans or goals, future actions, future performance or results of current and anticipated products, sales efforts, expenditures, and financial results. From time to time, the Company also provides forward-looking statements in other publicly-released materials, both written and oral. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts. They can be identified by the use of words such as “outlook,” “forecast,” “believes,” “expects,” “plans,” “intends,” “anticipates,” and other words and phrases of similar meaning.

Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made. A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Many of these risks and uncertainties are difficult to predict or are beyond the Company’s control. Consequently, no forward-looking statements can be guaranteed. Actual future results may vary materially. Significant factors affecting the expectations and forecasts are set forth under “Item 1A — Risk Factors” in this Annual Report on Form 10-K.

The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances that arise after the date hereof. Investors should refer to the Company's subsequent filings under the Securities Exchange Act of 1934 for further disclosures.

Executive Summary

Worldwide sales ~~decreased 1%~~increased 17% in ~~2019~~2021 to ~~$1.791~~$1.858 billion as compared with ~~$1.808~~$1.595 billion in ~~2018.~~2020. Foreign exchange had ~~an unfavorable~~a favorable impact on sales of ~~$32.8~~$27 million or 2%. Consolidated income from operations was ~~$208.7~~$235.7 million as compared with ~~$255.9~~$187.9 million in the prior year. Included in income from operations for ~~2019 were~~2021 was $4.0 million related to acquisition-related expenses and $1.1 million for restructuring and other items, ~~of $13.2~~net. Included in income from operations in 2020 was $10.4 million ~~and a $10.9 million charge~~ related to litigation expenses associated with the bankruptcy of Novinda ~~Corp. Included~~Corp, $7.6 million for assets write-downs and severance-related costs, $3.1 million of acquisition-related expenses and $4.0 million in ~~income from operations in 2018 were restructuring~~costs related to system restoration and ~~other costs~~risk mitigation following a ransomware attack on certain of ~~$2.5 million and acquisition-related transaction and integration costs of $1.7 million.~~ the Company's information technology systems. Net income was ~~$132.7~~$164.4 million in ~~2019 ,~~2021, as compared to ~~$169.0~~$112.4 million in the prior year. The Company reported diluted earnings of ~~$3.78~~$4.86 per share in ~~2019~~2021 as compared with ~~$4.75~~$3.29 per share in the prior year.

In ~~2019,~~2021, the Company continued to execute on its key growth ~~strategies~~initiatives of geographic expansion, ~~and~~ new product ~~innovation.~~innovation and acquisitions. In the fourth quarter of 2021, the Company signed two new Paper and Packaging satellite contracts in Asia, advancing geographic expansion of our core product lines. The Company ~~delivered sales~~also continued to advance on its strategic growth ~~across several product lines and geographies, increased volumes~~initiatives through ~~capacity expansions and a~~the commercialization of new ~~PCC satellite facility, and capitalized on customer demand for our latest innovative~~value-added products. ~~Our 2019 results reflect operational and strategic execution while experiencing weaker market conditions in several of~~On July 26, 2021, the ~~markets we serve.~~

~~Long term debt as of December 31, 2019 was $824.3 million. During 2019, we repaid $88 million of our long-term debt. Since~~Company completed the acquisition of ~~AMCOL~~Normerica Inc., a leading North American supplier of premium quality cat litter. As a leader in ~~2014,~~the pet product industry, they provide premium products, both branded and private label to world-class retailers and their product portfolio consists primarily of bentonite-based cat litter products. In addition, in November, we ~~repaid approximately $732 million~~acquired the Specialty PCC assets of a company in the Midwest U.S., helping us expand our ~~Term Loan debt. Additionally,~~manufacturing reach and providing us a strategic logistics footprint at a key point along the Mississippi River.

Although the COVID-19 pandemic continues to impact our business operations, we experienced limited disruptions during 2021. We are taking safety measures to protect our employees and monitoring our operations and public health measures implemented by governmental authorities in ~~2019,~~response to the pandemic. COVID-19 also continues to impact the global supply chain, causing disruptions to service providers, logistics and the flow and availability of supplies and products. Despite these challenges, we ~~repurchased $41 million~~were able to maintain a stable supply of ~~treasury shares.~~ raw materials to meet our production requirements.

Our balance sheet continues to be strong. Cash, cash equivalents and short-term investments were ~~$243.2~~$304.4 million as of December 31, ~~2019.~~2021. Cash flow from operations for ~~2019~~2021 was ~~$238.3~~$232.4 million. The Company currently has more than $500 million of available liquidity, including cash on hand, as well as availability under its revolving credit facility. We believe these factors will allow us to meet our anticipated funding requirements. Our intention is to maintain a balanced approach to capital deployment, by using ~~excess~~ cash flow for investments in growth, continued debt reduction and selective share repurchases.

Outlook

~~Looking forward,~~The COVID-19 pandemic has not had a material effect on our reported results for 2021 and we ~~remain cautious about the state of the global economy and the impact~~do not expect it will ~~have~~negatively impact our business and results of operations for 2022. However, the extent to which our operations will be impacted by the pandemic will depend largely on ~~our product lines.~~future developments, including the severity of future outbreaks and actions by government authorities to contain it or treat its impact. These are highly uncertain and cannot be accurately predicted. Refer to Part I. Item 1A. Risk Factors for further discussion of these risks. We will continue to actively monitor and respond to the COVID-19 pandemic.

The Company will continue to focus on innovation and new product development and other opportunities for sales growth in ~~2020~~2022 from its existing businesses, as follows:

●

Increase our presence and gain penetration of our bentonite-based foundry customers for the Metalcasting industry in emerging markets, such as China and India.

●

Increase our presence and market share in global pet care products ~~particularly in emerging markets.~~

●

Deploy new products in pet care such as lightweight litter.

●

Increase our presence and market share in Asia and in the global powdered detergent market.

●

Continue the development of our proprietary Enersol^® products for agricultural applications worldwide.

●

Pursue opportunities for our products in environmental and building and construction markets in the Middle East, Asia Pacific and South America regions.

●

Increase our presence and market share for geosynthetic clay liners within the Environmental Products product line.

●

Develop multiple high-filler technologies under the FulFill^® platform of products, to increase the fill rate in freesheet paper and continue to progress with commercial discussions and full-scale paper machine trials.

●

Develop products and processes for waste management and recycling opportunities to reduce the environmental impact of the paper mill, reduce energy consumption and improve the sustainability of the papermaking process, including our NewYield^® and ENVIROFIL^® products.

●

Further penetration into the packaging segment of the paper industry.

●

Increase our sales of PCC for paper by further penetration of the markets for paper filling at both freesheet and groundwood mills, particularly in emerging markets.

●

Expand the Company's PCC coating product line using the satellite model.

●

Promote the Company's expertise in crystal engineering, especially in helping papermakers customize PCC morphologies for specific paper applications.

●

Expand PCC produced for paper filling applications by working with industry partners to develop new methods to increase the ratio of PCC for fiber substitutions.

●

Develop unique calcium carbonate and talc products used in the manufacture of novel biopolymers, a new market opportunity.

●

Deploy new talc and GCC products in paint, coating and packaging applications.

●

Deploy value-added formulations of refractory materials that not only reduce costs but improve performance.

●

Deploy our laser measurement technologies into new applications.

●

Expand our refractory maintenance model to other steel makers globally.

●

~~Increase our presence and market penetration in offshore produced water and offshore filtration and well testing within the Energy Services segment.~~

●

Deploy operational excellence principles into all aspects of the organization, including system infrastructure and lean principles.

●

Continue to explore selective acquisitions to fit our core competencies in minerals and fine particle technology.

However, there can be no assurance that we will achieve success in implementing any one or more of these opportunities.

Results of Operations

Consolidated Income Statement Review

	Year Ended December 31,															Year Ended December 31,
(millions of dollars)	2019			2018			2017			2019 vs. 2018			2018 vs. 2017			2021			2020			2019			2021 vs. 2020			2020 vs. 2019
Net sales	$	1,791.0		$	1,807.6		$	1,675.7			(0.9	)%		7.9	%	$	1,858.3		$	1,594.8		$	1,791.0			16.5	%		(11.0	)%
Cost of sales		1,350.4			1,346.2			1,208.5			0.3	%		11.4	%		1,411.8			1,189.4			1,350.4			18.7	%		(11.9	)%
Production margin		440.6			461.4			467.2			(4.5	)%		(1.2	)%		446.5			405.4			440.6			10.1	%		(8.0	)%
Production margin %		24.6	%		25.5	%		27.9	%								24.0	%		25.4	%		24.6	%

Marketing and administrative expenses		187.5			178.6			180.7			5.0	%		(1.2	)%		186.2			176.5			187.5			5.5	%		(5.9	)%
Research and development expenses		20.3			22.7			23.7			(10.6	)%		(4.2	)%		19.5			19.9			20.3			(2.0	)%		(2.0	)%
Acquisition-related transaction and integration costs		—			1.7			3.4			*			(50.0	)%
Acquisition-related expenses																	4.0			3.1			—			29.0	%		*
Litigation expenses		10.9			-			-			*			*			—			10.4			10.9			*			(4.6	)%
Restructuring and other items, net		13.2			2.5			15.0			*			(83.3	)%		1.1			7.6			13.2			(85.5	)%		(42.4	)%

Income from operations		208.7			255.9			244.4			(18.4	)%		4.7	%		235.7			187.9			208.7			25.4	%		(10.0	)%
Operating margin %		11.7	%		14.2	%		14.6	%								12.7	%		11.8	%		11.7	%

Interest expense, net		(43.2	)		(45.9	)		(43.4	)		(5.9	)%		5.8	%		(37.2	)		(38.2	)		(43.2	)		(2.6	)%		(11.6	)%
Debt modification costs and fees		-			-			(3.9	)		*			*
Non-cash pension settlement charge		-			(4.4	)		-			*			*			(1.8	)		(6.4	)		—			(71.9	)%		*
Other non-operating deductions, net		(8.2	)		(1.5	)		(6.2	)		*			(75.8	)%
Other non-operating income (deductions), net																	5.6			(5.3	)		(8.2	)		*			(35.4	)%
Total non-operating deductions, net		(51.4	)		(51.8	)		(53.5	)		(0.8	)%		(3.2	)%		(33.4	)		(49.9	)		(51.4	)		(33.1	)%		(2.9	)%

Income from operations before tax and equity in earnings		157.3			204.1			190.9			(22.9	)%		6.9	%		202.3			138.0			157.3			46.6	%		(12.3	)%
Provision (benefit) for taxes on income		22.8			34.4			(6.6	)		(33.7	)%		*
Provision for taxes on income																	36.6			24.4			22.8			50.0	%		7.0	%
Effective tax rate		14.5	%		16.9	%		(3.5	)%								18.1	%		17.7	%		14.5	%

Equity in earnings of affiliates, net of tax		1.9			3.5			1.5			(45.7	)%		133.3	%		2.8			2.2			1.9			27.3	%		15.8	%

Consolidated net income		136.4			173.2			199.0			(21.2	)%		(13.0	)%		168.5			115.8			136.4			45.5	%		(15.1	)%
Less: Net income attributable to non-controlling interests		3.7			4.2			3.9			(11.9	)%		7.7	%		4.1			3.4			3.7			20.6	%		(8.1	)%
Net income attributable to Minerals Technologies Inc. (MTI)	$	132.7		$	169.0		$	195.1			(21.5	)%		(13.4	)%	$	164.4		$	112.4		$	132.7			46.3	%		(15.3	)%

*	* Not meaningful

Net Sales

Year Ended December 31,
(millions of dollars) 2019 2018 2017 2019 vs. 2018 2018 vs. 2017
U.S. $ 962.4 $ 961.6 $ 939.3 0.1 % 2.4 %
International 828.6 846.0 736.4 (2.1 )% 14.9 %
Total sales $ 1,791.0 $ 1,807.6 $ 1,675.7 (0.9 )% 7.9 %

Performance Materials Segment $ 823.3 $ 828.1 $ 734.8 (0.6 )% 12.7 %
Specialty Minerals Segment 574.4 589.3 584.8 (2.5 )% 0.8 %
Refractories Segment 298.1 311.9 279.4 (4.4 )% 11.6 %
Energy Services Segment 95.2 78.3 76.7 21.6 % 2.1 %
Total sales $ 1,791.0 $ 1,807.6 �� $ 1,675.7 (0.9 )% 7.9 %

	Year Ended December 31,
(millions of dollars)	2021		2020		2019		2021 vs. 2020			2020 vs. 2019
U.S.	$	959.6	$	822.5	$	962.4		16.7	%		(14.5	)%
International		898.7		772.3		828.6		16.4	%		(6.8	)%
Total sales	$	1,858.3	$	1,594.8	$	1,791.0		16.5	%		(11.0	)%

Performance Materials Segment	$	976.0	$	825.8	$	918.5		18.2	%		(10.1	)%
Specialty Minerals Segment		578.9		510.9		574.4		13.3	%		(11.1	)%
Refractories Segment		303.4		258.1		298.1		17.6	%		(13.4	)%
Total sales	$	1,858.3	$	1,594.8	$	1,791.0		16.5	%		(11.0	)%

Worldwide net sales in ~~2019 decreased 1%~~2021 increased 16.5% from the previous year to ~~$1,791.0~~$1,858.3 million. Included in net sales for 2021 are $48.6 million of net sales of Normerica. Foreign exchange had ~~an unfavorable~~a favorable impact on sales of approximately ~~$32.8~~$27 million or 2 percentage points. Net sales in the United States increased ~~0.1%~~16.7% to ~~$962.4~~$959.6 million in ~~2019~~2021 and represented ~~54%~~52.0% of consolidated net sales. International sales increased 16.4% to $898.7 million in 2021 and represented 48.0% of consolidated net sales.

Worldwide net sales in 2020 decreased 11.0% from the previous year to $1,594.8 million. Foreign exchange had an unfavorable impact on sales of approximately $16 million or 1 percentage point. Net sales in the United States decreased 14.5% to $822.5 million in 2020 and represented 52.0% of consolidated net sales. International sales decreased ~~2.1%~~6.8% to ~~$828.6~~$772.3 million in ~~2019~~2020 and represented ~~46% of consolidated net sales.~~

Worldwide net sales in 2018 increased 8% from the previous year to $1,807.6 million. Foreign exchange had a favorable impact on sales of approximately $13.0 million or 1 percentage point. The Company's results in 2018 include $61.8 million of sales from Sivomatic. Net sales in the United States increased 2.4% to $961.6 million in 2018 and represented 53% of consolidated net sales. International sales increased 14.9% to $846.0 million in 2018 and represented 47%48.0% of consolidated net sales.

Operating Costs and Expenses

Consolidated cost of sales was $1,411.8 million, $1,189.4 million and $1,350.4 million ~~$1,346.2 million~~in 2021, 2020 and ~~$1,208.5 million in~~ 2019, ~~2018 and 2017,~~ respectively. Production margin as a percentage of net sales was 24.0% in 2021, 25.4% in 2020 and 24.6% in ~~2019, 25.5%~~2019. Production margin decreased primarily in ~~2018 and 27.9% in 2017. The decrease in production margin was primarily~~2021 due to ~~an unfavorable product mix~~timing of pricing actions relative to higher inflationary costs, including energy and ~~higher raw materials~~other manufacturing costs as well as supply chain and logistics ~~costs across all segments.~~challenges.

Marketing and administrative costs were $186.2 million, $176.5 million and $187.5 million ~~$178.6 million~~in 2021, 2020 and ~~$180.7 million in~~ 2019, ~~2018 and 2017,~~ respectively. Marketing and administrative costs as a percentage of net sales were 10.0% in 2021, 11.1% in 2020 and 10.5% in ~~2019, 9.9% in 2018 and 10.8% in 2017.~~2019. Included in marketing and administrative costs in ~~2019~~2020 was ~~bad debt expense of $2.5~~a $4.0 million charge relating to system restoration and risk mitigation following a ~~Refractories customer in~~ransomware attack on certain of the ~~UK and higher mark to market expenses as compared to prior year.~~Company's information technology systems.

Research and development expenses were $19.5 million, $19.9 million and $20.3 million ~~$22.7 million~~in 2021, 2020 and ~~$23.7 million in~~ 2019, ~~2018 and 2017,~~ respectively. Research and development expenses as a percentage of net sales were 1.0% in 2021, 1.2% in 2020 and 1.1% in ~~2019, 1.3% in 2018 and 1.4% in 2017.~~2019.

In 2021, the Company recorded a $4.0 million charge for acquisition-related expenses. In addition, the Company recorded a $1.1 million charge for asset write-downs and other restructuring costs.

In 2020, the Company recorded a $10.4 million charge related to litigation expenses associated with the bankruptcy of Novinda Corp. In addition, the Company recorded a $7.6 million charge for asset write-downs and other restructuring costs and $3.1 million for acquisition-related expenses.

In 2019, the Company recorded a $13.2 million charge for ~~impairment of assets~~asset write-downs and severance-related costs. In addition, the Company recorded a $10.9 million charge related to litigation expenses associated with the bankruptcy of Novinda Corp.

In 2018, the Company recorded a $1.8 million restructuring charge relating to Energy Services businesses we previously exited and a $0.7 million non-cash impairment charge related to the closure of one of our Paper PCC facilities in North America in the first quarter of 2019.

In 2017, the Company recorded $15.0 million in restructuring and non-cash impairment charges from the closure of Paper PCC facilities in North America, as well as the alignment of corporate and Paper PCC staffing levels into higher growth regions.

~~The Company incurred $1.7 million and $3.4 million in 2018 and 2017, respectively for acquisition-related transaction and integration costs.~~

Income from Operations

During ~~2019,~~2021, the Company recorded income from operations of ~~$208.7~~$235.7 million, as compared with ~~$255.9~~$187.9 million in the prior year. Income from operations represented ~~11.7%~~12.7% of sales compared with ~~14.2%~~11.8% of sales in the prior year. Income from operations in ~~2019~~2021 included a $4.0 million charge ~~of $13.2~~for acquisition-related expenses and $1.1 million for ~~impairment~~asset write-downs and other restructuring costs.

During 2020, the Company recorded income from operations of ~~assets and severance-related costs and~~$187.9 million, as compared with $208.7 million in the prior year. Income from operations represented 11.8% of sales compared with 11.7% of sales in the prior year. Income from operations in 2020 included a ~~$10.9~~$10.4 million charge related to litigation expenses associated with the bankruptcy of Novinda ~~Corp.~~

~~During 2018,~~Corp, $7.6 million for asset write-downs and severance-related costs, $4.0 million related to system restoration and risk mitigation following a ransomware attack on certain of the ~~Company recorded income from operations~~Company's information technology systems and $3.1 million of $255.9 million, as compared with $244.4 million in the prior year. Income from operations represented 14.2% of sales compared with 14.6% of sales in the prior year. Income from operations in 2018 included acquisition related integration costs of $1.7 million and restructuring and other items of $2.5 million.acquisition-related expenses.

Non-Operating Income (Deductions)

The Company recorded non-operating deductions, net of ~~$51.4~~$33.4 million in ~~2019~~2021 as compared with ~~$51.8~~$49.9 million in the previous year.

~~Net~~Included in non-operating deductions was net interest expense ~~was $43.2~~of $37.2 million in ~~2019~~2021 as compared to ~~$45.9~~$38.2 million in the prior year, primarily due to lower interest rates. Additionally, the Company recorded at $1.8 million non-cash pension settlement charge relating to some of the Company's retirement plans in the United States.

Included in non-operating deductions was net interest expense of $38.2 million in 2020 as compared to $43.2 million in the prior year, as a result of lower debt balances due to principal ~~repayments.~~

~~Net~~repayments and lower interest ~~expense was $45.9 million in 2018 as compared to $43.4 million in~~rates. Additionally, the ~~prior year, as a result of higher interest rates and incremental borrowings related to our acquisition of Sivomatic. The~~ Company recorded ~~a $4.4~~at $6.4 million non-cash pension settlement charge ~~associated with our pension~~relating to one of the Company's retirement plans in the ~~U.S.~~United States.

Provision ~~(Benefit)~~ for Taxes on Income

Provision ~~(benefit)~~ for taxes was $36.6 million, $24.4 million and $22.8 million ~~$34.4 million~~in 2021, 2020 and ~~$(6.6) million in~~ 2019, ~~2018 and 2017,~~ respectively. The effective tax rates were ~~14.5%~~18.1%, ~~16.9%~~17.7% and ~~(3.5)%~~14.5% during 2021, 2020 and 2019, ~~2018 and 2017,~~ respectively. Included in the provision for taxes for 2018 is a $4.4 million benefit representing an adjustment of the provisional amounts previously recorded for the U.S. Tax Cuts and Jobs Act (“U.S. Tax Reform”) legislation, enacted in December 2017. Included in the benefit from taxes in 2017 was a provisional $47.3 million income tax benefit from U.S. Tax Reform. This benefit is comprised of an $82.4 million gain related primarily to the re-measurement of the Company’s U.S. deferred tax liabilities at a lower U.S. tax rate of 21%, partially offset by tax expense of $35.1 million for the deemed repatriation of unremitted earnings of foreign subsidiaries.

The ~~lower~~higher effective tax rate in ~~2019~~2021 as compared to ~~2018~~2020 was primarily due to mix of earnings. The higher effective tax rate in 2020 as compared to 2019 was primarily due to tax ~~benefits~~credits in the prior year resulting from the expiration of a tax statute of limitations. The higher effective tax rate in 2018 as compared to 2017 was primarily due to U.S. Tax Reform. Effective in 2018, U.S. Tax Reform reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments.

The other factors having the most significant impact on our effective tax rates in recent periods are the rate differentials related to foreign earnings indefinitely invested, percentage depletion, and the tax benefits on restructuring and impairment charges at a higher rate.

Percentage depletion allowances (tax deductions for depletion that may exceed our tax basis in our mineral reserves) are available to us under the income tax laws of the United States for operations conducted in the United States. The tax benefits from percentage depletion were $10.9 million in 2021, $8.5 million in 2020 and $7.8 million in ~~2019, $8.0 million in 2018 and $12.9 million in 2017.~~2019.

The U.S. Tax Reform legislation established a new Global Intangible Low-Tax Income provision (“GILTI”) that currently taxes certain income from foreign operations. The Company has elected, as its accounting policy, to treat the taxes due from GILTI as a current period expense when incurred. ~~There was no charge for GILTI in 2019.~~ The net charge to the Company for GILTI was ~~$2.1~~$1.2 million and $0.6 million for ~~2018.~~2021 and 2020, respectively. There was no charge for GILTI in 2019.

We operate in various countries around the world that have tax laws, tax incentives and tax rates that are significantly different than those of the United States. These differences combine to move our overall effective tax rate higher or lower than the United States statutory rate depending on the mix of income relative to income earned in the United States. The effects of foreign earnings and the related foreign rate differentials resulted in increases of $5.2 million, $4.6 million and $6.0 million in 2021, 2020 and ~~$2.3 million in~~ 2019, ~~and 2018, respectively and a decrease of income tax expense of $10.7 million in 2017.~~respectively.

Consolidated Net Income Attributable to MTI Shareholders

Consolidated net income was ~~$136.4~~$168.5 million in ~~2019~~2021 and included a ~~$20.8~~$5.3 million charge, net of tax. This charge consisted of ~~the impairment of assets,~~asset write-downs, severance-related costs, acquisition-related costs and a non-cash pension settlement charge.

Consolidated net income was $115.8 million in 2020 and included a $24.1 million charge, net of tax. This charge consisted of litigation expenses associated with the bankruptcy of Novinda Corp.

~~Consolidated net income was $173.2 million in 2018 and included a $7.0 million charge, net of tax. This charge consisted of acquisition related transaction and integration~~, asset write-downs, severance-related costs, IT incident remediation cost, acquisition-related costs and ~~restructuring and other items, net. Additionally, it includes~~ a ~~$3.7 million benefit from U.S. Tax Reform.~~

non-cash pension settlement charge.

Segment Review

The following discussions highlight the operating results for each of our ~~four~~three segments.

Performance Materials Segment

	Year Ended December 31,															Year Ended December 31,
(millions of dollars)	2019			2018			2017			2019 vs. 2018			2018 vs. 2017			2021			2020			2019			2021 vs. 2020		2020 vs. 2019

Net Sales
Household, Personal Care & Specialty Products																$	460.5		$	380.2		$	376.6		$	80.3	$	3.6
Metalcasting	$	291.2		$	328.9		$	294.3		$	(37.7	)	$	34.6			319.2			258.1			291.2			61.1		(33.1	)
Household, Personal Care & Specialty Products		376.6			348.5			294.6			28.1			53.9
Environmental Products		86.6			80.3			67.7			6.3			12.6			136.3			131.6			181.8			4.7		(50.2	)
Building Materials		68.9			70.4			78.2			(1.5	)		(7.8	)		60.0			55.9			68.9			4.1		(13.0	)
Total net sales	$	823.3		$	828.1		$	734.8		$	(4.8	)	$	93.3		$	976.0		$	825.8		$	918.5		$	150.2	$	(92.7	)

Income from operations	$	97.1		$	116.8		$	119.7		$	(19.7	)	$	(2.9	)	$	125.0		$	108.8		$	104.9		$	16.2	$	3.9
% of net sales		11.8	%		14.1	%		16.3	%								12.8	%		13.2	%		11.4	%

~~2019~~2021 v ~~2018~~2020

On a regular basis, the Company reviews its segments and the approach used by the chief operating decision maker to assess performance and allocate resources. Accordingly, in the first quarter of 2021, the Company reorganized the management structure for its Energy Services and Performance Materials operating segments to support MTI's key growth initiatives, more closely align complementary technologies, processes and capabilities, and better reflect the way performance is evaluated and resources are allocated. As a result, Energy Services was combined into the Environmental Products product line within the Performance Materials operating segment.

Net sales in the Performance Materials segment increased 18.2% to $976.0 million as compared with $825.8 in the prior year. Household, Personal Care & Specialty Products sales increased 21.1% to $460.5 million from $380.2 million the prior year. Included within 2021 net sales for Household, Personal Care & Specialty Products are $48.6 million of net sales for Normerica. The acquisition of Normerica contributed 13 percent growth versus prior year. In addition, organic sales contributed an additional 8 percent driven by strong demand for consumer-oriented products. Metalcasting’s sales increased 23.7% from $258.1 million in the prior year to $319.2 million in 2021, primarily due to increased foundry demand across a diverse set of foundry customer end markets and continued penetration in Asia. Environmental Products and Building Materials sales grew 3.6% and 7.3% , respectively on higher levels of project activity that yielded an increase in sales from the prior year of $4.7 million and $4.1 million, respectively.

Income from operations increased $16.2 million, or 14.9% to $125.0 million in 2021 and represented 12.8% of net sales as compared to $108.8 million and 13.2% of sales in 2020. Margin was impacted by the timing of pricing actions relative to inflationary cost increases and supply chain and logistics issues.

2020 v 2019

Net sales in the Performance Materials segment in 2020 were ~~$823.3~~$825.8 million and decreased ~~$4.8 million in 2019, or 1 percent. Foreign exchange had an unfavorable impact of $13.4~~$92.7 million, or ~~2%.~~10 percent from 2019. Metalcasting’s sales decreased ~~$37.7~~$33.1 million or 11 percent, primarily due to ~~lower market-based pricing and volumes in the specialty sands products, as well as~~COVID-19 related weaker foundry demand in ~~US automotive, heavy truck and agriculture equipment.~~North America. Household, Personal Care & Specialty Products sales increased 8$3.6 million or 1 percent from the prior year, primarily driven by ~~continued~~ strong performance of our Global pet care business, as well as increases in our Human and Animal Health businesses. In the third quarter of 2019, the Company combined its Basic Minerals product line with its Household, Personal Care & Specialty Products product line.demand for consumer-oriented products. Environmental Products ~~sales rose 8 percent due to a large international project~~ and ~~higher volumes of our geosynthetic clay liners and specialty liners.~~ Building Materials sales ~~decreased 2% due primarily to~~experienced COVID-19 related project delays that yielded a decrease in sales from the ~~difference in magnitude~~prior year of ~~waterproofing projects as compared with prior year.~~$50.2 million and $13.0 million, respectively.

Income from operations ~~decreased $19.7~~increased $3.9 million to ~~$97.1~~$108.8 million in ~~2019~~2020 and represented ~~11.8%~~13.2% of net sales as compared to ~~$116.8~~$104.9 million and ~~14.1%~~11.4% of sales in ~~2018. Included in income from operations were $7.0 million of restructuring~~2019. Pricing actions, cost control and ~~impairment costs. While pricing actions~~expense reductions more than offset ~~higher raw material costs, operating income and margins were impacted by~~the impact of lower ~~Metalcasting~~ sales ~~and unfavorable product mix.~~versus the prior year.

Specialty Minerals Segment

	Year Ended December 31,
(millions of dollars)	2021			2020			2019			2021 vs. 2020		2020 vs. 2019

Net Sales
Paper PCC	$	349.7		$	308.4		$	364.9		$	41.3	$	(56.5	)
Specialty PCC		77.1			69.3			69.1			7.8		0.2
PCC Products	$	426.8		$	377.7		$	434.0		$	49.1	$	(56.3	)

Ground Calcium Carbonate	$	98.1		$	89.3		$	91.3		$	8.8	$	(2.0	)
Talc		54.0			43.9			49.1			10.1		(5.2	)
Processed Minerals Products	$	152.1		$	133.2		$	140.4		$	18.9	$	(7.2	)

Total net sales	$	578.9		$	510.9		$	574.4		$	68.0	$	(63.5	)

Income from operations	$	72.9		$	67.8		$	83.1		$	5.1	$	(15.3	)
% of net sales		12.6	%		13.3	%		14.5	%

~~2018~~2021 v ~~2017~~2020

Net sales in the ~~Performance Materials~~Specialty Minerals segment ~~were $828.1 million and~~ increased ~~$93.3~~13.3% to $578.9 million in ~~2018, or 13 percent. Metalcasting’s~~2021 from $510.9 million in 2020. Worldwide sales of PCC products increased ~~$34.6~~13.0% to $426.8 million ~~or 12 percent, primarily~~in 2021 from $377.7 million in the prior year due to ~~higher volumes~~increased paper machine operating rates, as well as the ramp-up of ~~greensand bonds~~three new satellite plants in ~~North America~~China, India and ~~Asia. Household, Personal Care &~~the U.S. Specialty ~~Products~~PCC sales ~~increased 47 percent, primarily~~grew 11.3% as compared with prior year driven by ~~higher pet care revenue, including~~strength in construction and automotive markets. Sales of Processed Minerals products increased 14.2% to $152.1 million in 2021 from $133.2 million in the ~~acquisition of Sivomatic,~~prior year as demand from automotive, construction and increased European fabric care sales. Environmental Products sales rose 19 percent due to several large projects. This growth was partially offset by lower sales in Building Materials resulting from fewer large projects and a decrease in Basic Minerals due to the Company's exit from the bulk chromite business.consumer end markets remained strong.

Income from operations ~~decreased $2.9~~increased $5.1 million, or 7.5% to ~~$116.8~~$72.9 million in ~~2018~~2021 and represented ~~14.1%~~12.6% of net sales as compared to ~~$119.7~~$67.8 million and ~~16.3%~~13.3% of sales in ~~2017, primarily due~~the prior year. Included in income from operations were $1.1 million of restructuring and impairment costs. Operating margin was impacted by the timing of contractual and negotiated price increases relative to ~~higher raw material,~~inflationary cost increases including energy and other manufacturing costs. In addition, logistics and ~~energy costs, which were partially offset by increased selling prices~~labor challenges impacted both sales and ~~higher volume.~~operating performance.

~~Specialty Minerals Segment~~

Year Ended December 31,
(millions of dollars) 2019 2018 2017 2019 vs. 2018 2018 vs. 2017

Net Sales
Paper PCC $ 364.9 $ 378.5 $ 377.7 $ (13.6 ) $ 0.8
Specialty PCC 69.1 66.9 66.0 2.2 0.9
PCC Products $ 434.0 $ 445.4 $ 443.7 $ (11.4 ) $ 1.7

Ground Calcium Carbonate $ 91.3 $ 91.0 $ 87.3 $ 0.3 $ 3.7
Talc 49.1 52.9 53.8 (3.8 ) (0.9 )
Processed Minerals Products $ 140.4 $ 143.9 $ 141.1 $ (3.5 ) $ 2.8

Total net sales $ 574.4 $ 589.3 $ 584.8 $ (14.9 ) $ 4.5

Income from operations $ 83.1 $ 95.4 $ 88.9 $ (12.3 ) $ 6.5
% of net sales 14.5 % 16.2 % 15.2 %

~~2019~~2020 v ~~2018~~2019

Net sales in the Specialty Minerals segment decreased 311 percent to $510.9 million in 2020 from $574.4 million in ~~2019 from $589.3 million in 2018.~~2019. Worldwide sales of PCC products decreased to ~~$434.0~~$377.7 million in ~~2019~~2020 from ~~$445.4~~$434.0 million in the prior year largely due to ~~previously announced~~lower paper demand and temporary COVID-19 related customer paper machine shutdowns in North America, including the closure of two U.S. paper mills in the first and fourth quarters of 2019. These shutdowns were offset by a 3 percent increase in Paper PCC volumes in Asia as a result of the ramp up of a new satellite and additional capacity.shutdowns. Specialty PCC ~~increased 3 percent primarily due~~sales remained flat as compared with prior year as automotive and residential construction markets rebounded during 2020 and consumer-oriented markets continue to ~~demand-driven expansions.~~be strong. Sales of Processed Minerals products decreased 25 percent to ~~$140.4~~$133.2 million in ~~2019~~2020 primarily driven by ~~a reduction of sales~~the slowdown in residential construction and automotive markets in the ~~automotive~~second and ~~construction markets.~~third quarters.

Income from operations decreased ~~$12.3~~$15.3 million to ~~$83.1~~$67.8 million in ~~2019~~2020 and represented ~~14.5%~~13.3% of net sales compared to ~~$95.4~~$83.1 million and ~~16.2%~~14.5% of sales in the prior year. ~~This decrease was primarily driven by the paper mill shutdowns in North America and lower volumes in Europe, which was partially offset by higher pricing.~~ Included in income from operations ~~for 2019~~ were $7.6 million of restructuring and impairment ~~charges of $2.5 million.~~costs.

Refractories Segment

	Year Ended December 31,
(millions of dollars)	2021			2020			2019			2021 vs. 2020		2020 vs. 2019

Net Sales
Refractory Products	$	237.1		$	212.3		$	244.8		$	24.8	$	(32.5	)
Metallurgical Products		66.3			45.8			53.3			20.5		(7.5	)
Total net sales	$	303.4		$	258.1		$	298.1		$	45.3	$	(40.0	)

Income from operations	$	49.3		$	35.5		$	39.8		$	13.8	$	(4.3	)
% of net sales		16.2	%		13.8	%		13.4	%

~~2018~~2021 v ~~2017~~2020

Net sales in the ~~Specialty Minerals~~Refractories segment increased ~~1 percent~~17.6% to ~~$589.3~~$303.4 million in ~~2018~~2021 from ~~$584.8~~$258.1 million in ~~2017. Worldwide~~the prior year driven by a gradual improvement of steel mill utilization rates. Sales of refractory products and systems to steel and other industrial applications increased 11.6% to $237.1 million from $212.3 million in the prior year and sales of ~~PCC~~metallurgical products ~~were up slightly~~increased 44.8% to ~~$445.4~~$66.3 million as higher sales in Asia were partially offset by reduced sales in North America due to customer paper machine shutdowns in late 2017 and early 2018. Sales of Processed Minerals products rose 2 percent to $143.9 million. Ground Calcium Carbonate sales grew 4 percent, driven by higher volumesfrom $45.8 million in the ~~construction market, while talc sales decreased 2 percent.~~prior year.

Income from operations increased ~~$6.5~~$13.8 million, or 38.9% to ~~$95.4~~$49.3 million ~~in 2018~~ and represented 16.2% of net sales in 2021 compared to ~~$88.9~~$35.5 million ~~and 15.2%~~or 13.8% of sales in ~~the prior year. This increase was primarily~~2020 due to ~~$12.4 million in restructuring~~higher sales volumes from improved steel market conditions, strong operating performance and bad debt costs recorded in the prior year. Excluding the impact of the restructuring and bad debt costs recorded in the prior year, there was a decrease in operating income due to paper machine shutdowns in North America, and higher logistics and energy costs.~~Included in income from operations for 2018 were restructuring and impairment charges of $0.7 million.~~new business development.

~~Refractories Segment~~

Year Ended December 31,
(millions of dollars) 2019 2018 2017 2019 vs. 2018 2018 vs. 2017

Net Sales
Refractory Products $ 244.8 $ 261.1 $ 226.9 $ (16.3 ) $ 34.2
Metallurgical Products 53.3 50.8 52.5 2.5 (1.7 )
Total net sales $ 298.1 $ 311.9 $ 279.4 $ (13.8 ) $ 32.5

Income from operations $ 39.8 $ 45.4 $ 39.8 $ (5.6 ) $ 5.6
% of net sales 13.4 % 14.6 % 14.2 %

~~2019~~2020 v ~~2018~~2019

Net sales in the Refractories segment decreased 413 percent to ~~$298.1~~$258.1 million in ~~2019, driven~~2020, as a result of steel mill utilization rates decline in the second quarter in North America and Europe, which was followed by ~~lower sales~~a gradual improvement in the second half of ~~Refractory products globally, partially offset by higher metallurgical products and laser equipment sales.~~the year.

Income from operations decreased ~~$5.6~~$4.3 million to ~~$39.8~~$35.5 million and represented ~~13.4%~~13.8% of net sales in ~~2019~~2020 compared to ~~$45.4~~$39.8 million or ~~14.6%~~13.4% of sales in ~~2018~~2019 due to lower refractory volumes globally.~~Included in income from operations for 2019 were restructuring and impairment charges of $0.8 million and a $2.5 million bad debt reserve relating to a customer bankruptcy.~~

~~2018~~ v ~~2017~~Inflation

~~Net sales~~While inflation historically has not had a material impact on the Company, our financial performance was affected in 2021, and could continue to be adversely affected by increases in energy and commodity prices. Our production processes consume a significant amount of energy, primarily electricity, diesel fuel, natural gas and coal. We use diesel fuel to operate our mining and processing equipment and our freight costs are heavily dependent upon fuel prices and surcharges. Energy costs also affect the ~~Refractories segment increased 12 percent~~cost of raw materials. On a combined basis, these factors represent a large exposure to ~~$311.9 million in 2018, driven by higher volumes of refractory~~petrochemical and energy products which may be subject to significant price fluctuations. The contracts pursuant to which we construct and ~~from increased~~operate our satellite PCC plants generally adjust pricing to ~~offset higher raw material costs.~~

~~Income~~reflect the pass-through of increases in costs resulting from ~~operations increased $5.6 million~~inflation, including lime and energy prices. However, there is a time lag before such price adjustments can be implemented. The Company and its customers will typically negotiate reasonable price adjustments in order to ~~$45.4 million and represented 14.6%~~recover a portion of ~~net sales in 2018 compared~~these escalating costs, but there can be no assurance that we will be able to ~~$39.8 million or 14.2% of sales in 2017.~~

~~Energy Services Segment~~

Year Ended December 31,
(millions of dollars) 2019 2018 2017 2019 vs. 2018 2018 vs. 2017

Net Sales $ 95.2 $ 78.3 $ 76.7 $ 16.9 $ 1.6

Income (Loss) from operations $ 7.8 $ 4.5 $ 6.1 $ 3.3 $ (1.6 )
% of net sales 8.2 % 5.7 % 8.0 %

~~2019~~ v ~~2018~~

Net sales in the Energy Services segment increased $16.9 million in 2019 or 22 percent, driven by higher well testing and filtration activity in the North Sea and Gulf of Mexico and increased equipment sales and filtration activity in the Asia Pacific region.

The segment recorded income from operations of $7.8 million in 2019 as compared to $4.5 million in the prior year. Included in income from operations was $1.8 million of restructuring and impairment charges in 2019.

~~2018~~ v ~~2017~~

~~Net sales in the Energy Services segment increased $1.6 million in 2018 or 2 percent, driven by higher filtration activity in the Gulf of Mexico and in the North Sea.~~

The segment recorded income from operations of $4.5 million in 2018 as compared to $6.1 million in the prior year. Included in income from operations was $1.8 million of additional restructuring charges relating to the exit of certain businesses in 2016.recover increasing costs through such negotiations.

Cyclical Nature of Customers' Businesses

The portions of our sales within Specialty Minerals, Performance Materials and Refractories segments are to customers in the paper manufacturing, metalcasting, steel manufacturing, oil and gas and construction industries, which have historically been cyclical. The pricing structure of some of our long-term PCC contracts makes our PCC business less sensitive to declines in the quantity of product purchased. Oil and natural gas prices decreased significantly between 2014 through 2017 and again in 2020, which has caused exploration companies to reduce their capital expenditures and production and exploration activities. This has had the effect of decreasing the demand and increasing competition for the services we provide. We cannot predict the economic outlook in the countries in which we do business, nor in the key industries we serve.

Liquidity and Capital Resources

Cash provided from continuing operations in ~~2019~~2021 was ~~$238.3~~$232.4 million, compared with ~~$203.6~~$240.6 million in prior year. Cash flows provided from operations in ~~2019~~2021 were principally ~~use~~used to fund acquisitions and capital expenditures, repay debt, ~~fund capital expenditures,~~ repurchase shares and to pay the Company's dividend to common shareholders. The Company’s intention is to use excess cash flow for investments in growth, continued debt reduction and selective share repurchases. ~~In 2019, the Company repaid approximately $88 million in principal amount of its long-term debt.~~

On May 9, 2014, in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for the $1.560 billion senior secured term loan facility (the “Term Facility”) and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”).

On June 23, 2015, the Company entered into an amendment (the “First Amendment”) to the credit agreement to reprice the $1.378 billion then outstanding on the Term Facility. As amended, the Term Facility had a $1.078 billion floating rate tranche and a $300 million fixed rate tranche. On February 14, 2017, the Company entered into an amendment (the “Second Amendment”) to the credit agreement to reprice the $788 million floating rate tranche then outstanding, which extended the maturity and lowered the interest costs by 75 basis points. On April 18, 2018, the Company entered into an amendment (the “Third Amendment”) to the credit agreement to refinance its then existing senior secured revolving credit facility. In connection with the ~~Revolving Facility. As amended,~~Third Amendment, the ~~Revolving Facility has been increased to~~existing senior secured revolving credit facility was replaced with a new revolving credit facility with $300 million inof aggregate ~~commitments.~~commitments (the “Revolving Credit Facility” and, together with the Term Facility, the “Senior Secured Credit Facilities”). Following the amendments, the loans outstanding under the floating rate tranche of the Term Facility ~~will~~are scheduled to mature on February 14, 2024, ~~the loans outstanding under the fixed rate tranche of the Term Facility will mature on May 9, 2021 and~~ the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on April 18, 2023. Loans under the fixed rate tranche of the Term Facility were repaid in full in June 2020. Loans under the floating rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 2.25% per annum. ~~Loans under the fixed rate tranche of the Term Facility bear interest at a rate of 4.75%.~~ Loans under the Revolving Facility bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.625% per annum. Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds. The floating rate tranche of the Term Facility was issued at par and the fixed rate tranche of the Term Facility was issued at a 0.25% discount in connection with the First Amendment. The variable rate tranche of the Term Facility was issued at a 0.25% discount in connection with the Second Amendment. The variable rate tranche has a 1% required amortization per year. The Company will pay certain fees under the credit agreement, including customary annual administration fees. The obligations of the Company under the Senior Secured Credit Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors. The phase out of LIBOR may affect our obligations under the Facilities. See the applicable discussion under Item 1A. Risk Factors.

On June 30, 2020, the Company issued $400 million aggregate principal amount of 5.0% Senior Notes due 2028 (the “Notes”). The Notes were issued pursuant to an indenture, dated as of June 30, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. The Company used the net proceeds of its offering of the Notes to repay all of its outstanding loans under the fixed rate tranche of the Term Facility, repay all of its outstanding borrowings under its Revolving Credit Facility, and the remainder for general corporate purposes.

The Notes bear an interest rate of 5.0% per annum payable semi-annually on January 1 and July 1 of each year, beginning on January 1, 2021. The Notes are unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly owned domestic restricted subsidiaries that is a borrower under or that guarantees the Company’s obligations under its Senior Secured Credit Facilities or that guarantees the Company’s or any of the Company’s wholly owned domestic subsidiaries’ long-term indebtedness in an aggregate amount in excess of $50 million.

At any time and from time to time prior to July 1, 2023, the Company may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount, plus the “make-whole” premium described in the Indenture and accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. Beginning on July 1, 2023, the Company may redeem some or all of the Notes at any time and from time to time at the applicable redemption prices listed in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, at any time and from time to time prior to July 1, 2023, the Company may redeem up to 40% of the aggregate principal amount of the Notes with funds from one or more equity offerings at a redemption price equal to 105.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.

If the Company experiences a change of control (as defined in the indenture), the Company is required to offer to repurchase the Notes at 101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.

The credit agreement ~~contains~~and the Notes contain certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to ~~$15~~$25 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of ~~initially, 5.25~~3.50 to 1.00 for the four fiscal quarter ~~period~~periods preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00. During 2019, the Company repaid $85 million on its Term Facility. In connection with the Sivomatic acquisition, the Company incurred $113.0 million of short-term debt under the Revolving Facility. As of December 31, ~~2019,~~2021, there were ~~$100~~$80 million in ~~outstanding~~ loans and ~~$9.7~~$10.6 million in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with the Revolving Facility as of the end of the period covered by this report.

The Company has a committed loan facility in Japan. As of December 31, ~~2019,~~2021, there iswas an outstanding balance of ~~$4.5~~$3.0 million on this facility. Principal will be repaid in accordance with the payment schedules ending in 2021. The Company repaid ~~$0.6~~$0.8 million on these loans in 2019. In 2019, the Company also repaid $2.2 million on committed loan facilities for the funding of new manufacturing facilities in China. As of December 31, 2019, the China facilities were repaid in full.2021.

As part of the Company's acquisition of Sivomatic ~~acquisition,~~in 2018, the Company assumed $10.7 million in long-term debt, recorded at fair value, consisting of two term loans, one of which ~~matures~~matured in the third quarter of 2020 and the other of which matures in 2022. ~~These loans carry~~The outstanding loan carries an interest rate of Euribor plus 2.0% and ~~have~~has quarterly repayments. During ~~2019,~~2021, the Company repaid ~~$2.6~~$0.4 million on ~~these loans.~~

this loan.

As of December 31, ~~2019,~~2021, the Company had ~~$42.0~~$25.9 million in uncommitted short-term bank credit lines, none of which ~~approximately $1.2 million was~~were in use. The credit lines are primarily outside the U.S. and are generally one year in term at competitive market rates at large, well-established institutions. The Company typically uses its available credit lines to fund working capital requirements or local capital spending needs. We anticipate that capital expenditures for ~~2020~~2022 should be between ~~$70~~$85 million and ~~$80~~$95 million, principally related to ~~the construction of PCC plants~~opportunities to improve our operations and ~~other opportunities that~~ meet our strategic growth objectives. We expect to meet our other long-term financing requirements from internally generated funds, committed and uncommitted bank credit lines and, where appropriate, project financing of certain satellite plants.

On April 5, 2016, the Company entered into a floating to fixed interest rate swap for an initial aggregate notional amount of $300 million to limit exposure to interest rate increases related to a portion of the Company’s floating rate indebtedness. This swap agreement hedges a portion of contractual floating rate interest through its expiration in May 2021. As a result of the agreement, the Company’s effective fixed interest rate on the notional amount floating rate indebtedness will be 4.25%. The fair value of this instrument at December 31, 2019 was an asset of $0.4 million.

During the second quarter of 2018, the Company entered into a floating to fixed interest rate swap for a notional amount of $150 million. The fair value of this instrument at December 31, 2021 is a liability of $4.0 million. Additionally, the Company entered into a cross currency rate swap with a total notional value of $150 million to exchange monthly fixed-rate interest rate payments in U.S. dollars for monthly fixed-rate interest rate payments in Euros. The fair value of this instrument at December 31, 2021 is an asset of $8.2 million. These swaps mature in May 2023. As a result of these swaps, the Company's effective fixed interest rate on the notional floating rate indebtedness will be 2.5%. ~~The combined fair value~~

In addition to long-term debt, the Company has committed cash outflow related to pension and post-retirement benefit obligations, non-cancelable operating leases, primarily for office space and equipment, and other long-term contractual obligations. Other long-term liabilities include tax liabilities, including contingent obligations associated with gross unrecognized tax benefits for uncertain tax positions and a tax liability for the one-time transition tax on accumulated foreign subsidiary earnings under U.S. Tax Reform, asset retirement obligations relating to the retirement of ~~these instruments~~certain tangible long-lived assets and land restoration obligations at ~~December 31, 2019 was an asset of $3.9 million.~~the Company’s PCC satellite facilities and mining operations. See Notes 2, 8, 15, 16 and 20 to the Consolidated Financial Statements.

On ~~September~~October 21, ~~2017,~~2020, the Company's Board of Directors authorized the ~~Company’s~~Company's management to repurchase, at its discretion, up to ~~$150~~$75 million of the ~~Company’s~~Company's shares over a ~~two-year period commencing~~one-year period. As of October ~~1, 2017. This program is now completed. Over this program's two-year period, 734,591~~3, 2021, 1,016,088 shares ~~were~~have been repurchased under this program for ~~$42.7~~$74.1 million, or an average price of approximately ~~$58.11~~$72.90 per share. This program ~~is now~~has been completed.

On January ~~22, 2020,~~26, 2022, the Company's Board of Directors declared a regular quarterly dividend on its common stock of $0.05 per share. No dividend will be payable unless declared by the Board and unless funds are legally available for payment thereof.

~~Contractual Obligations~~

The Company has committed cash outflow related to long-term debt, interest on debt, pension and post-retirement benefit obligations, operating lease agreements, and other long-term contractual obligations. As of December 31, 2019, minimum payments for these obligations were as follows:

Payments Due by Period
(millions of dollars) Total 2020
2021– 2022

2023– 2024
After 2024
Long-term debt $ 842.6 $ 2.1 $ 182.5 $ 658.0 $ —
Interest related to long term debt 127.3 36.2 58.9 32.2 —
Estimated pension and post retirement plan funding 23.4 11.7 11.7 — —
Operating lease obligations 66.8 14.3 19.2 11.8 21.4
Repatriation tax liability 20.4 — 2.4 10.5 7.5
Other long term liabilities 23.9 0.4 — — 23.5
Total contractual obligations $ 1,104.4 $ 64.7 $ 274.7 $ 712.5 $ 52.4

Debt amounts in the preceding table represent the principal amounts of all outstanding long-term debt, including current portion. As of December 31, 2019, maturities for long-term debt extended to 2024. The above table does not include borrowings under our Revolving Facility as such amounts can be borrowed and repaid as required. Any remaining outstanding loans under the Revolving Facility will mature in April 2023.

Interest related to long-term debt is based on interest rates in effect as of December 31, 2019 and is calculated on debt with maturities that, on December 31, 2019 extended to 2024. As the contractual interest rate for a portion of our debt is variable, actual cash payments may differ from the estimates provided in the preceding table.

Estimated minimum required pension funding and post-retirement benefits are based on actuarial estimates using current assumptions for discount rates, long-term rate of return on plan assets, rate of compensation increases, and health care cost trend rates. The Company has determined that it is not practicable to present expected pension funding and other postretirement benefit payments beyond 2021 and, accordingly, no amounts have been included in the table beyond such dates.

~~The Company has several non-cancelable operating leases, primarily for office space and equipment. Operating lease obligations includes future minimum rental commitments under non-cancelable leases.~~

The Company recorded a tax liability for the one-time transition tax on accumulated foreign subsidiary earnings under U.S. Tax Reform of $35.1 million, payable in eight annual interest-free installments beginning in 2018. The Company paid its first installment in 2018 and was required to apply certain overpayments to the outstanding liability. The remaining liability is payable through 2024 and after.

Other long-term liabilities include asset retirement obligations relating to the retirement of certain tangible long-lived assets and land restoration obligations at its PCC satellite facilities and mining operations. See Note 20 to the Consolidated Financial Statements.

The total amount of contingent obligations associated with gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits was $7.9 million at December 31, 2019. Payment of these obligations would result from settlements with taxing authorities. Due to the difficulty in determining the timing of settlements, these obligations are not included in the table above. We do not expect to make a tax payment related to these obligations within the next year that would significantly impact liquidity.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, valuation of long-lived assets, goodwill and other intangible assets, income taxes, including valuation allowances and pension plan assumptions. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that cannot readily be determined from other sources. There can be no assurance that actual results will not differ from those estimates.

We believe the following critical accounting policies require us to make significant judgments and estimates in the preparation of our consolidated financial statements.

Revenue Recognition

Revenue is recognized at the point in time when the customer obtains control of the promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company's revenues are primarily derived from the sale of products. Our primary performance obligation is satisfied upon shipment or delivery to our customer based on written sales terms, which is also when control is transferred. Revenue where our performance obligations are satisfied in phases is recognized over time using certain input measures based on the measurement of the value transferred to the customer, including milestones achieved. Revenues from sales of equipment are recorded upon completion of installation and transfer of control to the customer. Revenues from services are recorded when the services are performed.

In most of our PCC contracts, the price per ton is based upon the total number of tons sold to the customer during the year. Under those contracts, the price billed to the customer for shipments during the year is based on periodic estimates of the total annual volume that will be sold to the customer. Revenues are adjusted at the end of each year to reflect the actual volume sold. There were no significant revenue adjustments in the fourth quarter of ~~2019~~2021 and ~~2018,~~2020, respectively. We have consignment arrangements with certain customers in our Refractories segment. Revenues for these transactions are recorded when the consigned products are consumed by the customer.

Revenues within our Energy Services segment is service based. Certain contracts within this segment are long-term contracts. Revenue where our performance obligations are satisfied in phases is recognized over time using certain input measures based on the measurement of the value transferred to the customer, including milestones achieved.

Valuation of Long-lived Assets, Goodwill and Other Intangible Assets

We assess the possible impairment of long-lived assets and identifiable amortizable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Goodwill is evaluated for impairment at least annually. Factors we consider important that could trigger an impairment review include the following:

●

Significant under-performance relative to historical or projected future operating results;

●

Significant changes in the manner of use of the acquired assets or the strategy for the overall business;

●

Significant negative industry or economic trends;

●

Market capitalization below invested capital.

Annually, the Company performs a qualitative assessment for each of its reporting units to determine if the two-step process for impairment testing is required. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company then evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. Step one involves a) developing the fair value of total invested capital of each reporting unit in which goodwill is assigned; and b) comparing the fair value of total invested capital for each reporting unit to its carrying amount, to determine if there is goodwill impairment. Should the carrying amount for a reporting unit exceed its fair value, then the step one test is failed, and the magnitude of any goodwill impairment is determined under step two. The amount of impairment loss is determined in step two by comparing the implied fair value of reporting unit goodwill with the carrying amount of goodwill.

The Company has ~~five~~four reporting units; Performance Materials, PCC, Processed Minerals ~~Refractories~~ and ~~Energy Services.~~Refractories. We identify our reporting units by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available and management regularly reviews the operating results of those components. In the fourth quarter of ~~2019,~~2021, the Company performed a qualitative assessment of each of its reporting units and determined it was not more likely than not that the fair value of any of its reporting units was less than their carrying values.

Property, plant and equipment are depreciated over their useful lives. Useful lives are based on management’s estimates of the period that the assets can generate revenue, which does not necessarily coincide with the remaining term of a customer’s contractual obligation to purchase products made using those assets. Our sales of PCC are predominately pursuant to long-term evergreen contracts, initially ten years in length, with paper mills at which we operate satellite PCC plants. The terms of many of these agreements have been extended, often in connection with an expansion of the satellite PCC plant. Failure of a PCC customer to renew an agreement or continue to purchase PCC from our facility could result in an impairment of assets or accelerated depreciation at such facility.

We evaluate the recoverability of our property, plant and equipment whenever events or change in circumstances indicate that the carrying value of the assets may not be recoverable. For testing the recoverability, we primarily use discounted cash flow models or cost approach to estimate the fair value of these assets. Critical assumptions used in conducting these tests included expectations of our business performance and financial results, useful lives of assets, discount rates and comparable market data.

When we acquire a company, we determine fair value on the acquisition date of assets acquired and liabilities assumed. We use the income, market or cost approach (or a combination thereof) for the valuation and use valuation inputs and analyses that are based on market participant assumptions. Changes in assumptions can have a significant impact on the fair value of tangible assets. Goodwill is calculated as the excess of the consideration transferred over the assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.

Income Taxes

As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves estimating current tax expense together with assessing temporary differences resulting from differing treatments of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be recovered from future taxable income, and to the extent we believe that recovery is not likely, we must establish a valuation allowance. To the extent we establish a valuation allowance or change this allowance in a period, we must include an expense within the tax provision in the Consolidated Statements of Income.

Deferred tax liabilities represent the amount of income taxes payable in future periods. Such liabilities arise because of temporary differences between the financial reporting and tax bases of assets and liabilities. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating losses. We evaluate the recoverability of these future tax deductions by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences and forecasted operating earnings. These sources of income inherently rely heavily on estimates. We use our historical experience and business forecasts to provide insight. The amount recorded for the net deferred tax liability was ~~$157.6~~$165.1 million and ~~$170.5~~$138.4 million at December 31, ~~2019~~2021 and ~~2018,~~2020, respectively.

U.S. Tax Reform was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the legislation reduced the U.S. statutory tax rate from 35% to 21%, created new taxes on certain foreign-sourced earnings and certain related-party payments. In addition, in 2017, the Company was subject to a one-time transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. Accounting for the income tax effects of this legislation requires significant judgments and estimates in the interpretation and calculations of its provisions.

Due to the timing of the enactment and the complexity involved in applying the provisions of the U.S. Tax Reform, the Company made reasonable estimates of the effects and recorded provisional amounts in our consolidated financial statements for the year ended December 31, 2017. In 2018, the Company reviewed additional guidance issued by the U.S. Treasury Department, IRS and other standard-setting bodies, collected and prepared the necessary data, and made adjustments to the provisional amount, which resulted in a $4.4 million benefit recorded for the year ended December 31, 2018.

The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of operations. See Note 8 to the Consolidated Financial Statements for additional detail on our uncertain tax positions.

Pension Benefits

We sponsor pension and other retirement plans in various forms covering the majority of employees who meet eligibility requirements. Several statistical and actuarial models which attempt to estimate future events are used in calculating the expense and liability related to the plans. These models include assumptions about the discount rate, expected return on plan assets and rate of future compensation increases as determined by us, within certain guidelines. Our assumptions reflect our historical experience and management's best judgment regarding future expectations. In addition, our actuarial consultants also use subjective factors such as withdrawal and mortality rates to estimate these assumptions. The actuarial assumptions used by us may differ materially from actual results due to changing market and economic conditions, higher or lower withdrawal rates or longer or shorter life spans of participants, among other things. ~~Differences from these assumptions may result in a significant impact to the amount of pension expense/liability recorded by us as follows:~~

~~A one percentage point change in our major assumptions in our largest plans (covering approximately 90% of the projected benefit obligation) would have the following effects:~~

~~Effect on Expense~~

(millions of dollars) Discount Rate Salary Scale Return on Asset
1% increase $ (4.7 ) $ 0.5 $ (2.1 )
1% decrease $ 5.9 $ (1.4 ) $ 2.9

~~Effect on Projected Benefit Obligation~~

(millions of dollars) Discount Rate Salary Scale
1% increase $ (42.7 ) $ 10.9
1% decrease $ 82.2 $ (0.6 )

The investment strategy for pension plan assets is to maintain a broadly diversified portfolio designed to both preserve and grow plan assets to meet future plan obligations. The Company's average rate of return on assets from inception through December 31, ~~2019~~2021 was approximately 9%10%. The Company’s assets are strategically allocated among equity, debt and other investments to achieve a diversification level that dampens fluctuations in investment returns. The Company’s long-term investment strategy is an investment portfolio mix of approximately 55%-65% in equity securities, 30%-35% in fixed income securities and 0%-15% in other securities. As of December 31, ~~2019,~~2021, the Company had approximately ~~55%~~54% of its pension assets in equity securities, ~~29%~~31% in fixed income securities and ~~16%~~15% in other securities.

The Company recognized pension expense of ~~$12.6~~$9.1 million in ~~2019~~2021 as compared to ~~$16.0~~$18.4 million in ~~2018.~~2020. Accounting guidance on retirement benefits requires companies to discount future benefit obligations back to today’s dollars using a discount rate that is based on high-quality fixed-income investments. A decrease in the discount rate increases the pension benefit obligation, while an increase in the discount rate decreases the pension benefit obligation. This increase or decrease in the pension benefit obligation is recognized in Accumulated other comprehensive income (loss) and subsequently amortized into earnings as an actuarial gain or loss. The guidance also requires companies to use an expected long-term rate of return on plan assets for computing current year pension expense. Differences between the actual and expected returns are also recognized in Accumulated other comprehensive income (loss) and subsequently amortized into earnings as actuarial gains and losses. At the end of ~~2019,~~2021, total actuarial losses recognized in Accumulated other comprehensive income (loss) for pension plans were ($~~99.7)~~73.3) million as compared to ($~~73.6)~~119.1) million in ~~2018.~~2020. The majority of the actuarial losses were due to decreases in the discount rate and lower actual rates of return on assets than expected during the financial crisis of 2008.

~~In 2019,~~A net gain of $60.6 million ($45.2 million after-tax) primarily due to actuarial gains, driven by a change in discount rates is included in other comprehensive income isin 2021. In 2020, a net loss of ~~$21.2~~$24.5 million ($~~16.1 million after-tax) primarily due to a change in discount rates. In 2018, a net loss of $21.6 million ($16.9~~18.7 million after-tax) was recorded in other comprehensive income, primarily due to a change in discount rates. In ~~2017,~~2019, a net loss of ~~$10.0~~$21.2 million ($~~8.5~~16.1 million after-tax) was recorded in other comprehensive income, primarily due to a change in discount rates and updated mortality tables.

Actuarial losses for pensions will be impacted in future periods by actual asset returns, discount rate changes, actual demographic experience and other factors that impact these expenses. These losses, reported in Accumulated other comprehensive income (loss), will generally be amortized as a component of net periodic benefit cost on a straight-line basis over the average remaining service period of active employees expected to receive benefits under the benefit plans. At the end of ~~2019,~~2021, the average remaining service period of active employees or life expectancy for fully eligible employees was 9 years. ~~We expect our 2020 amortization of net actuarial losses to be approximately $11.7 million.~~

For a detailed discussion on the application of these and other accounting policies, see "Summary of Significant Accounting Policies" in Note 1 to the Consolidated Financial Statements. This discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this report.

~~Inflation~~

While inflation historically has not had a material impact on the Company, our financial performance could be adversely affected by increases in energy and commodity prices. Our production processes consume a significant amount of energy, primarily electricity, diesel fuel, natural gas and coal. We use diesel fuel to operate our mining and processing equipment and our freight costs are heavily dependent upon fuel prices and surcharges. Energy costs also affect the cost of raw materials. On a combined basis, these factors represent a large exposure to petrochemical and energy products which may be subject to significant price fluctuations. The contracts pursuant to which we construct and operate our satellite PCC plants generally adjust pricing to reflect the pass-through of increases in costs resulting from inflation, including lime and energy prices. However, there is a time lag before such price adjustments can be implemented. The Company and its customers will typically negotiate reasonable price adjustments in order to recover a portion of these escalating costs, but there can be no assurance that we will be able to recover increasing costs through such negotiations.

~~Cyclical Nature of Customers' Businesses~~

The bulk of our sales within Specialty Minerals, Performance Materials and Refractories segments are to customers in the paper manufacturing, metalcasting, steel manufacturing and construction industries, which have historically been cyclical. The pricing structure of some of our long-term PCC contracts makes our PCC business less sensitive to declines in the quantity of product purchased. In addition, our customers’ demand for our Energy Services segments products and services are affected by oil and natural gas production activities, which are heavily influenced by the benchmark price of these commodities. Oil and natural gas prices decreased significantly between 2014 through 2017, which had caused exploration companies to reduce their capital expenditures and production and exploration activities. This has had the effect of decreasing the demand and increasing competition for the services we provide. ~~We cannot predict the economic outlook in the countries in which we do business, nor in the key industries we serve.~~

Recently Issued Accounting Standards

Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ~~All recently issued~~ ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.

~~Measurement~~Adoption of ~~Credit Losses on Financial Instruments~~Simplifying the Accounting for Income Taxes

In ~~June 2016,~~December 2019, the FASB issued ASU ~~2016-13, "Measurement of Credit Losses~~2019-12, "Simplifying the Accounting for Income Taxes", to simplify the accounting for income taxes and improve consistent application by clarifying or amending existing guidance. The Company adopted this guidance on Financial Instruments", requiring the immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets. The standard is effective for fiscal years beginning after December 15, 2019. The adoption of this standard is not expected to have a material impact on the Company's financial statements.

~~Adoption of ASU 2016-02 Leases~~

On January 1, ~~2019, the Company adopted the provisions of ASU 2016-02, “Leases”, which requires lessees to recognize most leases on the balance sheet.~~ The Company has adopted this new standard under the modified retrospective transition method, using the effective date as our date of initial application. As such, financial information and required disclosures will not be provided for dates prior to January 1, 2019. The new standard provides a number of optional practical expedients in transition. We have elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. On adoption, we recognized additional operating liabilities of $61.4 million with corresponding right-of-use assets of $50.5 million based on the present value of the remaining lease payments under existing operating leases. As of December 31, 2018, we had $10.9 million in deferred charges related to some of our real estate leases that were recorded against the right of use asset as part of the transition. The adoption2021. Adoption of this standard did not have a material impact on the Company's consolidated financial statements.

Adoption of ~~ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income~~Investments - Equity Securities, Investments - Equity Method and Joint Ventures, and Derivatives and Hedging

OnIn January 2020, the FASB issued ASU 2020-01, "Investments - Equity Securities, Investments - Equity Method and Joint Ventures, and Derivatives and Hedging", which addresses the accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The Company adopted this guidance on January 1, ~~2019, the Company adopted the provisions~~2021. Adoption of ~~ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, which allows~~this standard did not have a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. As a result, the Company reclassified $10.9 million from "Accumulated other comprehensive loss" to "Retained earnings"material impact on the ~~Consolidated Balance Sheets as of December 31, 2019.~~Company's consolidated financial statements.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risk from fluctuations in foreign currency exchange rates, interest rates and credit risk. We use a variety of practices to manage these market risks, including derivative financial instruments when appropriate. Our treasury and risk management policies prohibit us from using derivative instruments for trading or speculative purposes. We also do not use leveraged derivative instruments or derivatives with complex features.

Exchange Rate Sensitivity

As we operate in over 30 countries with many international subsidiaries, we are exposed to currency fluctuations related to manufacturing and selling our products and services. This foreign currency risk is diversified and involves assets, liabilities and cash flows denominated in currencies other than the U.S. Dollar (USD).

We manage our foreign currency exchange risk in part through operational means, including managing same currency revenues versus same currency costs, as well as, same currency assets versus same currency liabilities. We also have subsidiaries with the same currency exposures which may offset each other, providing a natural hedge against one another’s currency risk. When appropriate, we enter into derivative financial instruments, such as forward exchange contracts and cross currency interest rate swaps, to mitigate the impact of foreign exchange rate movements on our operating results. The counterparties are major financial institutions. Such forward exchange contracts would not subject us to additional risk from exchange rate because gains and losses on these contracts would offset losses and gains on the assets, liabilities, and transactions being hedged. In the second quarter of 2018, the Company entered into a cross currency swap with a total notional value of $150 million. The swap matures in May 2023. The fair value of this swap at December 31, ~~2019,~~2021, was an asset of ~~$10.2~~$8.2 million.

Assets and liabilities of our international subsidiaries are translated to their parent company’s reporting currency at current exchange rates during consolidation; gains and losses stemming from these translations are included as a component of Other Comprehensive Income and reported within Accumulated Comprehensive Income within our Consolidated Balance Sheets. Income and expenses of our international subsidiaries are translated at average exchange rates for the period and, when included within retained earnings in the balance sheet at current exchange rates, the differences to those average exchange rates are included within Other Comprehensive Income and reported within Accumulated Comprehensive Income. When our subsidiaries transact business in currencies other than their functional currency, those transactions are revalued in their functional currency and differences resulting from such revaluations are included within other non-operating income (deduction), net within our Consolidated Statement of Income.

We do not anticipate that near-term changes in exchange rates will have a material impact on our future earnings or cash flows. However, there can be no assurance that a sudden and significant change in the value of foreign currencies would not have a material adverse effect on our financial condition and results of operations.

Interest Rate Sensitivity

A portion of our long-term bank debt bears interest at variable rates (see Note 15 to the Consolidated Financial Statements) and our results of operations would be affected by interest rate changes to such bank debt outstanding. The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt. During the second quarter of 2016, the Company entered into a floating to fixed interest rate swap for an initial aggregate notional amount of $300 million. The fair value of this swap at December 31, 2019, was an asset of $0.4 million. In the second quarter of 2018, the Company entered into an additional floating to fixed interest rate swap for with a total notional value of $150 million. The fair value of this swap at December 31, ~~2019,~~2021, was a liability of ~~$6.3~~$4.0 million. An immediate 10% increase in the interest rates would not have a material effect on our results of operations over the next fiscal year. A one percentage point change in interest rates would cost ~~$4.2~~$1.4 million in incremental interest charges on an annual basis.

Credit Risk

We are exposed to credit risk on certain assets, primarily accounts receivable. We provide credit to customers in the ordinary course of business and perform ongoing credit evaluations. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising our customer base. We currently believe our allowance for doubtful accounts is sufficient to cover customer credit risks. Our accounts receivable financial instruments are carried at amounts that approximate fair value.

Sovereign Debt Risk

We do not have any material credit risk with sovereign governments as we do not sell our products to them. We do, however, sell to customers in these countries, but we believe our risk associated with these customers is not material.

Item 8. Financial Statements and Supplementary Data

The financial information required by Item 8 is contained in Item 15 of Part IV of this report.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, and under the supervision and with participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, pursuant to Exchange Act Rule 13a-15(b). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of December 31, ~~2019.~~2021.

Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, we have included a report of management's assessment of the design and operating effectiveness of our internal controls as part of this report. Management's report is included in our consolidated financial statements ~~beginning~~ on page ~~F-1~~F-42 of this report under the caption entitled "Management's Report on Internal Control Over Financial Reporting."

Changes in Internal Control Over Financial Reporting

On January 1, 2019, the Company adopted the provisions of ASU No. 2016-02, "Leases (Topic 842)." Adoption of this standard did not have a material impact on the Company's financials, however, we implemented a new lease accounting system and implemented changes to our processes related to leases and related control activities.

During ~~2018,~~2021, we closed on the acquisition of ~~Sivomatic~~Normerica and we excluded ~~Sivomatic~~Normerica from the scope of ~~management's~~management’s report on internal control over financial reporting for the year ended December 31, ~~2018. The~~2021. We are in the process of integrating ~~Sivomatic~~Normerica to our overall internal control over financial reporting ~~has been completed~~ and ~~we included it~~will include them in scope for the year ending December 31, ~~2019.~~2022. This process may result in additions or changes to our internal control over financial reporting.

There were no other changes in ~~our~~the Company's internal control over financial reporting during the fourth fiscal quarter of ~~2019 identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act~~2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

None

48Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not Applicable

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information concerning the Company's Board of Directors required by this item is incorporated herein by reference to the Company's Proxy Statement, under the captions “Corporate Governance”, “Committees of the Board of Directors” and “Item 1- Election of Directors.”

The Board has established a code of ethics for the Chief Executive Officer, the Chief Financial Officer, and the Chief Accounting Officer entitled "Code of Ethics for the Senior Financial Officers," which is available on our website, www.mineralstech.com, by clicking the links entitled Our Company, then ~~Governance,~~ ~~then~~Corporate ~~Responsibility~~Governance and then Policies and Charters.

See “Information About Our Executive Officers” in Part I of this report for information regarding executive officers of the Company.

Item 11. Executive Compensation

The information appearing in the Company's Proxy Statement under the captions “Compensation Discussion and Analysis,” “Report of the Compensation Committee” and “Compensation of Executive Officers and Directors" is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information appearing in the Company's Proxy Statement under the caption "Security Ownership of Certain Beneficial Owners and Management" is incorporated herein by reference.

Equity Compensation Plan Information

The following table summarizes information about our equity compensation plans as of December 31, ~~2019.~~2021. All outstanding awards relate to our common stock.

Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options		Weighted Average Exercise Price of Outstanding Options		Number of Securities Remaining Available for Future Issuance		Number of Securities to be Issued Upon Exercise of Outstanding Options		Weighted Average Exercise Price of Outstanding Options		Number of Securities Remaining Available for Future Issuance
Equity compensation plans approved by security holders		1,227,620	$	55.83		529,042		1,330,002	$	59.91		1,268,770

Total		1,227,620	$	55.83		529,042		1,330,002	$	59.91		1,268,770

For further information, see Note 6 to the Consolidated Financial Statements.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information appearing in the Company's Proxy Statement under the caption "Certain Relationships and Related Transactions" is incorporated herein by reference.

The Board has established Corporate Governance principles which include guidelines for determining Director independence, which is available on our website, www.mineralstech.com, by clicking the links entitled Our Company, then Corporate Governance ~~then~~ ~~Corporate Responsibility~~and then Policies and Charters. The information appearing in the Company’s Proxy Statement under the caption “Corporate Governance – Director Independence” is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services

The information appearing in the Company's Proxy Statement under the caption "Principal Accountant Fees and Services" is incorporated herein by reference.

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)	The following documents are filed as part of this report:

1.	Financial Statements. The following Consolidated Financial Statements of Mineral Technologies Inc. and subsidiary companies and Reports of Independent Registered Public Accounting Firm are set forth on pages F-2 to F-38.

Consolidated Balance Sheets as of December 31, ~~2019~~2021 and ~~2018~~2020

Consolidated Statements of Income for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019

Consolidated Statements of Comprehensive Income for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019

Consolidated Statements of Cash Flows for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019

Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019

Notes to the Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm

Management's Report on Internal Control Over Financial Reporting

2.	Financial Statement Schedule. The following financial statement schedule is filed as part of this report:

Schedule II – Valuation and Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are inapplicable and, therefore, have been omitted.

Exhibits. The following exhibits are filed as part of, or incorporated by reference into, this report.

Exhibit No.		Exhibit Title
3.1		Restated Certificate of Incorporation of the Company (Incorporated by reference to exhibit 3.1 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2003)
3.2		By-Laws of the Company as amended and restated effective March 13, 2018 (Incorporated by reference to exhibit 3.1 filed with the Company's Current Report on Form 8-K (file no. 001-11430) filed on March 19, 2018)
4.1		Specimen Certificate of Common Stock (Incorporated by reference to exhibit 4.1 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2003)
4.2		Description of the Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934(*1934 (Incorporated by reference to exhibit 4.2 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2019)
4.3		Indenture, dated as of June 30, 2020, by and among Minerals Technologies Inc., the subsidiary guarantors from time to time party thereto and The Bank of New York Mellon Trust Company, N.A., as a trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K (file no. 001-11430) filed on June 30, 2020.)
10.1		Asset Purchase Agreement, dated as of September 28, 1992, by and between Specialty Refractories Inc. and Quigley Company Inc. (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-51292), originally filed on August 25, 1992)
10.1(a)		Agreement dated October 22, 1992 between Specialty Refractories Inc. and Quigley Company Inc., amending Exhibit 10.1 (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-59510), originally filed on March 15, 1993)
10.1(b)		Letter Agreement dated October 29, 1992 between Specialty Refractories Inc. and Quigley Company Inc., amending Exhibit 10.1 (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-59510), originally filed on March 15, 1993)
10.2		Reorganization Agreement, dated as of September 28, 1992, by and between the Company and Pfizer Inc. (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-51292), originally filed on August 25, 1992)
10.3		Asset Contribution Agreement, dated as of September 28, 1992, by and between Pfizer Inc. and Specialty Minerals Inc. (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-51292), originally filed on August 25, 1992)
10.4		Asset Contribution Agreement, dated as of September 28, 1992, by and between Pfizer Inc. and Barretts Minerals Inc. (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-51292), originally filed on August 25, 1992)
10.4(a)		Agreement dated October 22, 1992 between Pfizer Inc, Barretts Minerals Inc. and Specialty Minerals Inc., amending Exhibits 10.3 and 10.4 (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-59510), originally filed on March 15, 1993)

10.5		Employment Agreement, dated December 13, 2016, between the Company and Douglas T. Dietrich (Incorporated by reference to exhibit 10.1 filed with the Company's Current Report on Form 8-K (file no. 001-11430) filed on December 16, 2016) (+)
10.5(a)		First Amendment to Employment Agreement, dated April 15, 2021, between the Company and Douglas T. Dietrich (Incorporated by reference to exhibit 10.1 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended April 4, 2021) (+)
10.6		Form of Employment Agreement between the Company and each of Brett Argirakis, Michael A. Cipolla, Erin N. Cutler, Matthew E. Garth, Jonathan J., Hastings, ~~Andrew Jones,~~ Douglas W. Mayger, Thomas J. Meek, and D.J. Monagle, III (Incorporated by reference to exhibit 10.6 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2016) (+)
10.7		Severance Agreement between the Company and Douglas T. Dietrich (Incorporated by reference to the exhibit 10.2 filed with the Company’s Current Report on form 8-K (file no. 001-11430) filed on December 16, 2016) (+)
10.7(a)		First Amendment to Severance Agreement between the Company and Douglas T. Dietrich (Incorporated by reference to exhibit 10.2 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended April 4, 2021) (+)
10.8		Form of Severance Agreement between the Company and each of Brett Argirakis, Michael A. Cipolla, Erin N. Cutler, Matthew E. Garth, Jonathan J., Hastings, ~~Andrew Jones,~~ Douglas W. Mayger, Thomas J. Meek, and D.J. Monagle, III (Incorporated by reference to exhibit 10.8 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2016) (+)
10.9		Form of Indemnification Agreement between the Company and each of Brett Argirakis, Michael A. Cipolla, Erin N. Cutler, Douglas T. Dietrich, Matthew E. Garth, Jonathan J. Hastings, ~~Andrew Jones,~~ Douglas W. Mayger, Thomas J. Meek, D.J. Monagle III and each of the Company’s non-employee directors (Incorporated by reference to exhibit 10.1 filed with the Company's Current Report on Form 8-K (file no. 001-11430) filed on May 8, 2009) (+)
10.10		Company Employee Protection Plan, as amended August 27, 1999 (Incorporated by reference to exhibit 10.7 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2004) (+)
10.11		Company Nonfunded Deferred Compensation and Unit Award Plan for Non-Employee Directors, as amended and restated effective January 1, 2008 (Incorporated by reference to exhibit 10.8 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended March 30, 2008) (+)
10.11(a)		First Amendment to the Company Nonfunded Deferred Compensation and Unit Award Plan for Non-Employee Directors, dated January 18, 2012 (Incorporated by reference to exhibit 10.11(a) filed with the Company’s Annual Report on Form 10-K (file no. 001-11430)for the year ended December 31, 2011) (+)
10.12		2015 Stock Award and Incentive Plan of the Company, as amended and restated effective March 11, 2020 (Incorporated by reference to Appendix BA to the Company’s ~~2015~~Supplement to its 2020 Proxy Statement (file no. 001-11430) filed on April ~~2, 2015)~~22, 2020) (+)
10.12(a)		Form of Stock Option Agreement ~~(*)(+)~~
~~10.12(b)~~		~~Form of Deferred Restricted Stock Unit Agreement (*)(+)~~
~~10.13~~		~~Company Retirement Plan, as amended and restated, dated December 21, 2012~~ (Incorporated by reference to exhibit ~~10.12~~10.12(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, ~~2012)~~2019) (+)
~~10.13(a)~~10.12(b)		~~Second Amendment to Company Retirement Plan, as amended and restated, dated December 22, 2014~~Form of Deferred Restricted Stock Unit Agreement (Incorporated by reference to exhibit ~~10.13(a)~~10.12(b) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, ~~2014)~~2019) (+)
~~10.13(b)~~10.13		~~Third Amendment to~~ Company Retirement Plan, as amended and restated, dated ~~June 12, 2015~~August 27, 2020 (Incorporated by reference to exhibit ~~10.2 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended June 28, 2015)(+)~~
~~10.13(c)~~		~~Fourth Amendment to Company Retirement Plan, as amended and restated, dated December 16, 2016 (Incorporated by reference to exhibit 10.13(c)~~10.12(b) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, ~~2016)(+)~~
~~10.13(d)~~		Fifth Amendment to Company Retirement Plan, as amended and restated, dated December 6, 2017 (Incorporated by reference to exhibit 10.13(d) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2017)2020) (+)
10.14		Company Supplemental Retirement Plan, amended and restated effective December 31, 2009 (Incorporated by reference to exhibit 10.13 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2009) (+)
10.14(a)		First Amendment to Company Supplemental Retirement Plan, as amended and restated, dated December 22, 2014 (Incorporated by reference to exhibit 10.14(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.14(b)		Second Amendment to Company Supplemental Retirement Plan, as amended and restated, dated December 20, 2019 ~~(*)~~(Incorporated by reference to exhibit 10.14(b) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2019) (+)
10.15		Company Savings and Investment Plan, as amended and restated, dated December 21, 2012 (Incorporated by reference to exhibit 10.14 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2012) (+)
10.15(a)		Amendment to the Company Savings and Investment Plan, as amended and restated, dated December 5, 2013 (Incorporated by reference to exhibit 10.15(a) filed with the Company’s Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2013) (+)

10.15(b)		Amendment to the Company Savings and Investment Plan, as amended and restated, dated December 5, 2013 (Incorporated by reference to exhibit 10.15(b) filed with the Company’s Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2013) (+)
10.15(c)		Third Amendment to the Company Savings and Investment Plan, as amended and restated, dated December 22, 2014 (Incorporated by reference to exhibit 10.15(c) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.15(d)		Amendment to the Company Savings and Investment Plan, as amended and restated, dated December 31, 2015 (Incorporated by reference to exhibit 10.15(d) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2015)(+)
10.15(e)		Amendment to the Company Savings and Investment Plan, as amended and restated, dated July 16, 2020 (Incorporated by reference to exhibit 10.1 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended June 28, 2020)(+)
10.15(f)		Amendment to the Company Savings and Investment Plan, as amended and restated, dated December 21, 2020 (Incorporated by reference to exhibit 10.15(f) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2020) (+)
10.16		Company Supplemental Savings Plan, amended and restated effective December 31, 2009 (Incorporated by reference to exhibit 10.15 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2009) (+)
10.16(a)		Amendment to the Company Supplemental Savings Plan, dated December 28, 2011 (Incorporated by reference to exhibit 10.16(a) filed with the Company’s Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2011)(+)
10.16(b)		First Amendment to the Company Supplemental Savings Plan, dated December 22, 2014 (Incorporated by reference to exhibit 10.16(b) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.16(c)		Second Amendment to the Company Supplemental Savings Plan, dated December 22, 2014 (Incorporated by reference to exhibit 10.16(c) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.16(d)		Third Amendment to the Company Supplemental Savings Plan, dated December 16, 2016 (Incorporated by reference to exhibit 10.16(d) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2016)(+)
10.16(e)		Fourth Amendment to the Company Supplemental Savings Plan, dated December 20, 2019 ~~(*)~~(Incorporated by reference to exhibit 10.16(e) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2019) (+)
10.17		Company Health and Welfare Plan, effective as of April 1, 2003 and amended and restated as of January 1, 2006 (Incorporated by reference to exhibit 10.14 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2006)(+)
10.17(a)		Amendment to the Company Health and Welfare Plan, dated May 19, 2009 (Incorporated by reference to exhibit 10.16(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2009) (+)
10.17(b)		First Amendment to Company Health and Welfare Plan, dated December 22, 2014 (Incorporated by reference to exhibit 10.17(b) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.18		Company Retiree Medical Plan, effective as of January 1, 2011 (Incorporated by reference to exhibit 10.17 filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2010)(+)
10.18(a)		First Amendment to Company Retiree Medical Plan, dated December 22, 2014 (Incorporated by reference to exhibit 10.18(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.18(b)		Second Amendment to Company Retiree Medical Plan, dated November 10, 2021 (*)(+)
10.19		Amended and Restated Grantor Trust Agreement, dated as of April 1, 2010, by and between the Company and the Wilmington Trust Company (Incorporated by reference to exhibit 10.1 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the period ended April 4, 2010)(+)
10.19(a)		Agreement and Amendment No. 1, dated October 1, 2017, to the Amended and Restated Grantor Trust Agreement, dated as of April 1, 2010, by and between the Company and the Wilmington Trust Company (Incorporated by reference to exhibit 10.19(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2017)(+)
10.20		AMCOL International Corporation Nonqualified Deferred Compensation Plan, as amended (Incorporated by reference to exhibit 10.1 filed with the Annual Report on Form 10-K for the year ended December 31, 2008 of AMCOL International Corporation (file no. 0-15661))(+)
10.20(a)		First Amendment to AMCOL International Corporation Nonqualified Deferred Compensation Plan, as amended, dated December 22, 2014 (Incorporated by reference to exhibit 10.20(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.20(b)		Third Amendment to the AMCOL International Corporation Nonqualified Deferred Compensation Plan, as amended, dated August 21, 2015 (Incorporated by reference to exhibit 10.1 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended September 27, 2015)(+)

10.21		AMCOL International Corporation Amended and Restated Supplementary Pension Plan for Employees (Incorporated by reference to the exhibit 10.6 filed with the Annual Report on Form 10-K for the year ended December 31, 2008 of AMCOL International Corporation (file no. 0-15661)) (+)
10.21(a)		First Amendment to AMCOL International Corporation Amended and Restated Supplementary Pension Plan for Employees, dated December 22, 2014 (Incorporated by reference to exhibit 10.21(a) filed with the Company's Annual Report on Form 10-K (file no. 001-11430) for the year ended December 31, 2014)(+)
10.21(b)		Second Amendment to Amended and Restated Supplementary Pension Plan for Employees of AMCOL International Corporation, dated August 21, 2015 (Incorporated by reference to exhibit 10.2 filed with the Company's Quarterly Report on Form 10-Q (file no. 001-11430) for the quarter ended September 27, 2015)(+)
10.22		Third Amendment, dated as of April 18, 2018, to the Credit Agreement, dated as of May 9, 2014, among Minerals Technologies Inc., the subsidiary borrowers party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, , and the other agents party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the other agents party thereto (Incorporated by reference to the exhibit 10.1 filed with the Company's Current Report on Form 8-K (file no. 001-11430) filed on April 20, 2018)
10.23		Indenture, dated July 22, 1963, between the Cork Harbour Commissioners and Roofchrome Limited (Incorporated by reference to the exhibit so designated filed with the Company's Registration Statement on Form S-1 (Registration No. 33-51292), originally filed on August 25, 1992)
21.1		Subsidiaries of the Company (*)
23.1		Consent of Independent Registered Public Accounting Firm (*)
24		Power of Attorney (*)
31.1		Rule 13a-14(a)/15d-14(a) Certification executed by the Company's principal executive officer (*)
31.2		Rule 13a-14(a)/15d-14(a) Certification executed by the Company's principal financial officer (*)
32		Section 1350 Certification (*)
95		Information Concerning Mine Safety Violations (*)
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(*)	Filed herewith.

(+)	Management contract or compensatory plan or arrangement required to be filed pursuant to Item 601 of Regulation S-K.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	By:	~~/s/~~ /s/ Douglas T. Dietrich
		Douglas T. Dietrich
		Chairman of the Board and Chief Executive Officer

February ~~14, 2020~~18, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the dates indicated:

SIGNATURE		TITLE	DATE

/s/ Douglas T. Dietrich		Chairman of the Board and Chief Executive Officer	February ~~14, 2020~~18, 2022
Douglas T. Dietrich		(Principal Executive Officer)

/s/ Matthew E. Garth		Senior Vice President – Finance and Treasury,	February ~~14, 2020~~18, 2022
Matthew E. Garth		Chief Financial Officer (Principal Financial Officer)

/s/ Michael A. Cipolla		Vice President – Controller and	February ~~14, 2020~~18, 2022
Michael A. Cipolla		Chief Accounting Officer (Principal Accounting Officer)

*		Director	February ~~14, 2020~~18, 2022
Joseph C. Breunig

*		Director	February ~~14, 2020~~18, 2022
John J. Carmola

*		Director	February ~~14, 2020~~18, 2022
Robert L. Clark

*		Director	February ~~14, 2020~~18, 2022
Alison A. Deans

/s/ Douglas T. Dietrich		~~Director~~Chairman	February ~~14, 2020~~18, 2022
Douglas T. Dietrich

*		~~Chairman and~~ Director	February ~~14, 2020~~18, 2022
Duane R. Dunham

*		Director	February ~~14, 2020~~18, 2022
Franklin L. Feder

*		Director	February ~~14, 2020~~18, 2022
Carolyn K. Pittman

*		Director	February ~~14, 2020~~18, 2022
Marc E. Robinson

*		Director	February ~~14, 2020~~18, 2022
Donald C. Winter

*	By: /s/ Thomas J. Meek
	Thomas J. Meek
	Attorney-in-Fact

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Audited Financial Statements:		Page

	Consolidated Balance Sheets as of December 31, ~~2019~~2021 and ~~2018~~2020	F-2

	Consolidated Statements of Income for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019	F-3

	Consolidated Statements of Comprehensive Income for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019	F-4

	Consolidated Statements of Cash Flows for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019	F-5

	Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017~~2019	F-6

	Notes to Consolidated Financial Statements	F-7

Reports of Independent Registered Public Accounting Firm (KPMG LLP, Dallas, TX, Audit Firm ID 185)		~~F-44~~F-40

Management's Report on Internal Control Over Financial Reporting		~~F-46~~F-44

Valuation and Qualifying Accounts		S-1

~~F-1~~F-1

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS

	December 31,						December 31,
(millions of dollars, except share and per share amounts)	2019			2018			2021			2020

ASSETS

Current assets:
Cash and cash equivalents	$	241.6		$	208.8		$	299.5		$	367.7
Short-term investments, at cost which approximates market		1.6			3.8			4.9			4.1
Accounts receivable		376.2			387.3			367.8			369.0
Inventories		253.3			239.2			297.7			248.2
Prepaid expenses		35.4			32.0			41.2			35.4
Other current assets		11.1			5.2			17.4			9.2
Total current assets		919.2			876.3			1,028.5			1,033.6

Property, plant and equipment, less accumulated depreciation and depletion		1,052.8			1,102.9			1,049.1			1,039.6
Goodwill		807.4			812.4			907.5			808.5
Intangible assets		203.0			214.1			251.6			195.8
Deferred income taxes		23.0			26.3			23.0			25.3
Other assets and deferred charges		107.2			55.1			114.5			106.6
Total assets	$	3,112.6		$	3,087.1		$	3,374.2		$	3,209.4

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Short-term debt	$	101.2		$	105.2		$	80.0		$	0
Current maturities of long-term debt		2.1			3.3			0.8			1.0
Accounts payable		163.4			169.1			196.1			148.3
Income tax payable		4.2			1.6			0			8.7
Accrued compensation and related items		50.7			48.1			57.9			60.3
Other current liabilities		76.9			54.6			85.0			77.5
Total current liabilities		398.5			381.9			419.8			295.8

Long-term debt, net of unamortized discount and deferred financing costs		824.3			907.8			936.2			933.2
Deferred income taxes		180.6			196.8			188.1			163.7
Accrued pension and postretirement benefits		148.9			124.2			114.3			179.0
Other non-current liabilities		125.7			91.1			136.3			139.0
Total liabilities		1,678.0			1,701.8			1,794.7			1,710.7

Shareholders' equity:
Preferred stock, without par value; 1,000,000 shares authorized; NaN issued		—			—			0			0
Common stock, par value at $0.10 per share; 100,000,000 shares authorized; Issued 48,909,662 shares in 2019 and 48,793,918 shares in 2018		4.9			4.9
Common stock, par value at $0.10 per share; 100,000,000 shares authorized; Issued 49,347,347 shares in 2021 and 49,051,181 shares in 2020								4.9			4.9
Additional paid-in capital		442.2			431.9			474.2			453.3
Retained earnings		1,905.7			1,769.1			2,168.9			2,011.3
Accumulated other comprehensive loss		(290.4	)		(233.7	)		(333.6	)		(308.3	)
Less common stock held in treasury, at cost; 14,365,355 shares in 2019 and 13,603,575 shares in 2018		(659.7	)		(618.7	)
Less common stock held in treasury, at cost; 16,170,154 shares in 2021 and 15,168,994 shares in 2020								(775.1	)		(700.4	)

Total Minerals Technologies Inc. shareholders' equity		1,402.7			1,353.5			1,539.3			1,460.8
Non-controlling interests		31.9			31.8			40.2			37.9
Total shareholders' equity		1,434.6			1,385.3			1,579.5			1,498.7

Total liabilities and shareholders' equity	$	3,112.6		$	3,087.1		$	3,374.2		$	3,209.4

See Notes to Consolidated Financial Statements, which are an integral part of these statements.

~~F-2~~F-2

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF INCOME

	Year Ended December 31,									Year Ended December 31,
(millions of dollars, except per share data)	2019			2018			2017			2021			2020			2019
Product sales	$	1,695.8		$	1,729.3		$	1,599.0
Service revenue		95.2			78.3			76.7
Total net sales		1,791.0			1,807.6			1,675.7

Net sales										$	1,858.3		$	1,594.8		$	1,791.0
Cost of goods sold		1,285.8			1,293.3			1,158.5			1,411.8			1,189.4			1,350.4
Cost of service revenue		64.6			52.9			50.0
Total cost of sales		1,350.4			1,346.2			1,208.5

Production margin		440.6			461.4			467.2			446.5			405.4			440.6

Marketing and administrative expenses		187.5			178.6			180.7			186.2			176.5			187.5
Research and development expenses		20.3			22.7			23.7			19.5			19.9			20.3
Acquisition-related transaction and integration costs		—			1.7			3.4
Acquisition-related expenses											4.0			3.1			0
Litigation expenses		10.9			—			—			0			10.4			10.9
Restructuring and other items, net		13.2			2.5			15.0			1.1			7.6			13.2

Income from operations		208.7			255.9			244.4			235.7			187.9			208.7

Interest expense, net		(43.2	)		(45.9	)		(43.4	)		(37.2	)		(38.2	)		(43.2	)
Debt modification costs and fees		—			—			(3.9	)
Non-cash pension settlement charge		—			(4.4	)		—			(1.8	)		(6.4	)		0
Other non-operating income (deductions), net		(8.2	)		(1.5	)		(6.2	)		5.6			(5.3	)		(8.2	)
Total non-operating deductions, net		(51.4	)		(51.8	)		(53.5	)		(33.4	)		(49.9	)		(51.4	)

Income from operations before tax and equity in earnings		157.3			204.1			190.9			202.3			138.0			157.3
Provision (benefit) for taxes on income		22.8			34.4			(6.6	)
Provision for taxes on income											36.6			24.4			22.8
Equity in earnings of affiliates, net of tax		1.9			3.5			1.5			2.8			2.2			1.9

Consolidated net income		136.4			173.2			199.0			168.5			115.8			136.4
Less:
Net income attributable to non-controlling interests		3.7			4.2			3.9			4.1			3.4			3.7
Net income attributable to Minerals Technologies Inc. (MTI)	$	132.7		$	169.0		$	195.1		$	164.4		$	112.4		$	132.7

Earnings per share:

Basic:
Income from operations attributable to MTI	$	3.79		$	4.79		$	5.54		$	4.89		$	3.29		$	3.79
Diluted:
Income from operations attributable to MTI	$	3.78		$	4.75		$	5.48		$	4.86		$	3.29		$	3.78

Cash dividends declared per common share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

Shares used in computation of earnings per share:
Basic		35.0			35.3			35.2			33.6			34.2			35.0
Diluted		35.1			35.6			35.6			33.8			34.2			35.1

See Notes to Consolidated Financial Statements, which are an integral part of these statements.

~~F-3~~F-3

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31,									Year Ended December 31,
(millions of dollars)	2019			2018			2017			2021			2020			2019
Consolidated net income	$	136.4		$	173.2		$	199.0		$	168.5		$	115.8		$	136.4
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(29.9	)		(67.9	)		44.7			(78.9	)		10.9			(29.9	)
Pension and postretirement plan adjustments		(16.1	)		16.9			(8.5	)		45.2			(18.7	)		(16.1	)
Unrealized gains on cash flow hedges		0.2			1.6			0.3
Unrealized gain (loss) on cash flow hedges											8.4			(8.5	)		0.2
Total other comprehensive income (loss), net of tax		(45.8	)		(49.4	)		36.5			(25.3	)		(16.3	)		(45.8	)
Total comprehensive income including non-controlling interests		90.6			123.8			235.5			143.2			99.5			90.6

Less: Net income attributable to non-controlling interests		3.7			4.2			3.9			4.1			3.4			3.7
Less: Foreign currency translation adjustments attributable to non-controlling interests		—			(1.8	)		1.5			(0.1	)		1.7			0
Comprehensive income attributable to non-controlling interests		3.7			2.4			5.4			4.0			5.1			3.7

Comprehensive income attributable to Minerals Technologies Inc.	$	86.9		$	121.4		$	230.1		$	139.2		$	94.4		$	86.9

See Notes to Consolidated Financial Statements, which are an integral part of these statements.

~~F-4~~F-4

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,
(millions of dollars) 2019 2018 2017
Operating Activities:

Consolidated net income $ 136.4 $ 173.2 $ 199.0

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization 98.4 94.3 91.0
Loss on disposal of property, plant and equipment 1.9 2.8 1.8
Deferred income taxes (1.4 ) 15.4 (76.1 )
Pension amortization and settlement loss 9.2 13.4 7.4
Provision for bad debts 6.3 3.2 3.8
Stock-based compensation 8.1 6.2 8.1
Asset impairment charge 7.5 0.7 5.3
Non-cash debt modification costs — — 1.8
Other non-cash items (1.9 ) (3.5 ) (1.7 )

Changes in operating assets and liabilities
Accounts receivable 9.9 (3.0 ) (27.3 )
Inventories (16.0 ) (14.7 ) (25.2 )
Pension plan funding (7.7 ) (24.2 ) (10.8 )
Accounts payable (5.1 ) (11.2 ) 28.0
Reduction of right of use asset 12.7 — —
Restructuring liabilities 2.4 (4.9 ) 4.5
Income taxes payable 2.5 (7.4 ) (12.6 )
Prepaid expenses and other (24.9 ) (36.7 ) 10.6
Net cash provided by operating activities 238.3 203.6 207.6

Investing Activities:

Purchases of property, plant and equipment (65.0 ) (75.9 ) (76.7 )
Acquisition of business, net of cash acquired — (122.5 ) —
Proceeds from sale of assets — 0.9 1.4
Purchases of short-term investments (5.5 ) (7.7 ) (4.5 )
Proceeds from sale of short-term investments 7.7 6.1 3.8
Other investing activities 0.8 (0.9 ) (1.5 )
Net cash used in investing activities (62.0 ) (200.0 ) (77.5 )

Financing Activities:

Debt issuance costs — (1.5 ) —
Repayment of long-term debt (88.2 ) (66.3 ) (118.9 )
Proceeds from issuance of short-term debt — 113.0 —
Repayment of short-term debt (4.0 ) (14.0 ) (0.2 )
Purchase of common stock for treasury (41.0 ) (21.7 ) (0.7 )
Proceeds from issuance of stock under option plan 2.2 3.0 14.6
Excess tax benefits related to stock incentive programs (1.7 ) (3.1 ) (3.6 )
Dividends paid to non-controlling interests (4.2 ) (1.8 ) (2.4 )
Capital contribution from non-controlling interests 0.6 3.7 —
Cash dividends paid (7.0 ) (7.1 ) (7.0 )
Net cash provided by (used in) financing activities (143.3 ) 4.2 (118.2 )

Effect of exchange rate changes on cash and cash equivalents (0.2 ) (11.2 ) 11.8

Net increase (decrease) in cash and cash equivalents 32.8 (3.4 ) 23.7
Cash and cash equivalents at beginning of period 208.8 212.2 188.5
Cash and cash equivalents at end of period $ 241.6 $ 208.8 $ 212.2

Supplemental disclosure of cash flow information:
Non-cash financing activities
Treasury stock purchases settled after period end $ 1.1 $ 0.3 $ —

~~See Notes to Consolidated Financial Statements, which are an integral part of these statements.~~

~~F-5~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY~~

Equity Attributable to MTI
(millions of dollars)
Common
Stock

Additional
Paid-in
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income (Loss)

Treasury
Stock

Non-controlling
Interests
Total
Balance as of December 31, 2016 $ 4.8 $ 400.0 $ 1,419.1 $ (221.1 ) $ (596.3 ) $ 24.4 $ 1,030.9

Net income — — 195.1 — — 3.9 199.0
Other comprehensive income (loss) — — — 35.0 — 1.5 36.5
Dividends declared — — (7.0 ) — — — (7.0 )
Dividends paid to non-controlling interests — — — — — (2.4 ) (2.4 )
Issuance of shares pursuant to employee stock compensation plans 0.1 14.6 — — — — 14.7
Income tax benefit arising from employee stock compensation plans — — — — — — —
Purchase of common stock for treasury — — — — (0.7 ) — (0.7 )
Stock-based compensation — 8.1 — — — — 8.1
Balance as of December 31, 2017 $ 4.9 $ 422.7 $ 1,607.2 $ (186.1 ) $ (597.0 ) $ 27.4 $ 1,279.1

Net income — — 169.0 — — 4.2 173.2
Other comprehensive income (loss) — — — (47.6 ) — (1.8 ) (49.4 )
Dividends declared — — (7.1 ) — — — (7.1 )
Dividends paid to non-controlling interests — — — — — (1.8 ) (1.8 )
Acquisition of non-controlling interest — — — — — 0.1 0.1
Capital contribution from non-controlling interests — — — — — 3.7 3.7
Issuance of shares pursuant to employee stock compensation plans — 3.0 — — — — 3.0
Purchase of common stock for treasury — — — — (21.7 ) — (21.7 )
Stock-based compensation — 6.2 — — — — 6.2
Balance as of December 31, 2018 $ 4.9 $ 431.9 $ 1,769.1 $ (233.7 ) $ (618.7 ) $ 31.8 $ 1,385.3

Net income — — 132.7 — — 3.7 136.4
Other comprehensive income (loss) — — — (45.8 ) — — (45.8 )
Dividends declared — — (7.0 ) — — — (7.0 )
Dividends paid to non-controlling interests — — — — — (4.2 ) (4.2 )
Cumulative effect of accounting change — — 10.9 (10.9 ) — — —
Capital contribution from non-controlling interests — — — — — 0.6 0.6
Issuance of shares pursuant to employee stock compensation plans — 2.2 — — — — 2.2
Purchase of common stock for treasury — — — — (41.0 ) — (41.0 )
Stock-based compensation — 8.1 — — — — 8.1
Balance as of December 31, 2019 $ 4.9 $ 442.2 $ 1,905.7 $ (290.4 ) $ (659.7 ) $ 31.9 $ 1,434.6

	Year Ended December 31,
(millions of dollars)	2021			2020			2019
Operating Activities:

Consolidated net income	$	168.5		$	115.8		$	136.4

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		94.6			93.9			98.4
Loss on disposal of property, plant and equipment		0.4			0.2			1.9
Deferred income taxes		2.1			(2.7	)		(1.4	)
Pension amortization and settlement loss		13.1			13.1			9.2
Provision for bad debts		0.9			2.6			6.3
Stock-based compensation		10.7			10.2			8.1
Asset write-downs		0.7			7.1			7.5
Reduction of right of use asset		12.3			12.3			12.7
Other non-cash items		(2.8	)		(2.2	)		(1.9	)

Changes in operating assets and liabilities
Accounts receivable		(7.2	)		13.7			9.9
Inventories		(58.2	)		8.3			(16.0	)
Pension plan funding		(11.1	)		(12.2	)		(7.7	)
Accounts payable		43.0			(16.7	)		(5.1	)
Restructuring liabilities		(1.4	)		(1.2	)		2.4
Income taxes payable		(6.0	)		3.9			2.5
Prepaid expenses and other		(27.2	)		(5.5	)		(24.9	)
Net cash provided by operating activities		232.4			240.6			238.3

Investing Activities:

Purchases of property, plant and equipment		(86.0	)		(66.8	)		(65.0	)
Cash paid for acquisitions, net of cash acquired		(194.4	)		(9.2	)		0
Proceeds from sale of assets		0.7			0.7			0
Purchases of short-term investments		(9.4	)		(8.7	)		(5.5	)
Proceeds from sale of short-term investments		8.3			5.3			7.7
Other investing activities		2.2			0			0.8
Net cash used in investing activities		(278.6	)		(78.7	)		(62.0	)

Financing Activities:

Long-term debt issuance		0			400.0			0
Debt issuance costs		0			(6.4	)		0
Repayment of long-term debt		(1.2	)		(290.1	)		(88.2	)
Proceeds from issuance of short-term debt		100.5			0			0
Repayment of short-term debt		(20.5	)		(101.2	)		(4.0	)
Purchase of common stock for treasury		(74.7	)		(40.7	)		(41.0	)
Proceeds from issuance of stock under option plan		12.8			3.2			2.2
Tax withholding payments for stock-based compensation		(2.7	)		(2.0	)		(1.7	)
Dividends paid to non-controlling interests		(1.8	)		(0.7	)		(4.2	)
Capital contribution from non-controlling interests		0			1.7			0.6
Cash dividends paid		(6.8	)		(6.8	)		(7.0	)
Net cash provided by (used in) financing activities		5.6			(43.0	)		(143.3	)

Effect of exchange rate changes on cash and cash equivalents		(27.6	)		7.2			(0.2	)

Net increase (decrease) in cash and cash equivalents		(68.2	)		126.1			32.8
Cash and cash equivalents at beginning of period		367.7			241.6			208.8
Cash and cash equivalents at end of period	$	299.5		$	367.7		$	241.6

Supplemental disclosure of cash flow information:
Non-cash financing activities
Treasury stock purchases settled after period end	$	0.5		$	1.8		$	1.1

See Notes to Consolidated Financial Statements, which are an integral part of these statements.

~~F-6~~F-5

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

	Equity Attributable to MTI
(millions of dollars)	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Non-controlling Interests			Total
Balance as of December 31, 2018	$	4.9	$	431.9		$	1,769.1		$	(233.7	)	$	(618.7	)	$	31.8		$	1,385.3

Net income		0		0			132.7			0			0			3.7			136.4
Other comprehensive loss		0		0			0			(45.8	)		0			0			(45.8	)
Dividends declared		0		0			(7.0	)		0			0			0			(7.0	)
Dividends paid to non-controlling interests		0		0			0			0			0			(4.2	)		(4.2	)
Acquisition of non-controlling interest		0		0			10.9			(10.9	)		0			0			0
Capital contribution from non-controlling interests		0		0			0			0			0			0.6			0.6
Issuance of shares pursuant to employee stock compensation plans		0		2.2			0			0			0			0			2.2
Purchase of common stock for treasury		0		0			0			0			(41.0	)		0			(41.0	)
Stock-based compensation		0		8.1			0			0			0			0			8.1
Balance as of December 31, 2019	$	4.9	$	442.2		$	1,905.7		$	(290.4	)	$	(659.7	)	$	31.9		$	1,434.6

Net income		0		0			112.4			0			0			3.4			115.8
Other comprehensive loss		0		0			0			(17.9	)		0			1.6			(16.3	)
Dividends declared		0		0			(6.8	)		0			0			0			(6.8	)
Dividends paid to non-controlling interests		0		0			0			0			0			(0.7	)		(0.7	)
Capital contribution from non-controlling interests		0		0			0			0			0			1.7			1.7
Issuance of shares pursuant to employee stock compensation plans		0		3.2			0			0			0			0			3.2
Purchase of common stock for treasury		0		0			0			0			(40.7	)		0			(40.7	)
Stock-based compensation		0		10.2			0			0			0			0			10.2
Conversion of RSU's for tax withholding		0		(2.3	)		0			0			0			0			(2.3	)
Balance as of December 31, 2020	$	4.9	$	453.3		$	2,011.3		$	(308.3	)	$	(700.4	)	$	37.9		$	1,498.7

Net income		0		0			164.4			0			0			4.1			168.5
Other comprehensive loss		0		0			0			(25.3	)		0			0			(25.3	)
Dividends declared		0		0			(6.8	)		0			0			0			(6.8	)
Dividends paid to non-controlling interests		0		0			0			0			0			(1.8	)		(1.8	)
Issuance of shares pursuant to employee stock compensation plans		0		12.8			0			0			0			0			12.8
Purchase of common stock for treasury		0		0			0			0			(74.7	)		0			(74.7	)
Stock-based compensation		0		10.7			0			0			0			0			10.7
Conversion of RSU's for tax withholding		0		(2.6	)		0			0			0			0			(2.6	)
Balance as of December 31, 2021	$	4.9	$	474.2		$	2,168.9		$	(333.6	)	$	(775.1	)	$	40.2		$	1,579.5

See Notes to Consolidated Financial Statements, which are an integral part of these statements.

F-6

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Business

~~The Company~~Minerals Technologies Inc. (the "Company") is a resource- and technology-based company that develops, produces and markets on a worldwide basis a broad range of specialty mineral, mineral-based and synthetic mineral products and supporting systems and services.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of ~~Minerals Technologies Inc. (the "Company"),~~the Company, its wholly and majority-owned subsidiaries, as well as variable interest entities for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Significant estimates include those related to revenue recognition, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, income tax, and litigation and environmental liabilities. Actual results could differ from those estimates.

Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Short-term investments consist of financial instruments, mainly bank deposits, with original maturities beyond three months, but less than twelve months. Short-term investments amounted to ~~$1.6~~$4.9 million and ~~$3.8~~$4.1 million at December 31, ~~2019~~2021 and ~~2018,~~2020, respectively. There were 0 unrealized holding gains and losses on the short-term bank investments held at December 31, ~~2019.~~2021.

Trade Accounts Receivable

Trade accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company determines the allowance based on historical write-off experience and specific allowances for bankrupt customers. The Company also analyzes the collection history and financial condition of its other customers, considering current industry conditions and determines whether an allowance needs to be established. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days based on payment terms are reviewed individually for collectability. Allowance for doubtful accounts was ~~$12.9 million and $3.2~~$15.0 million at both December 31, ~~2019~~2021 and ~~2018, respectively.~~2020. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers.

Inventories

Inventories are valued at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) method.

Additionally, items such as idle facility expense, excessive spoilage, freight handling costs, and re-handling costs are recognized as current period charges. The allocation of fixed production overheads to the costs of conversion are based upon the normal capacity of the production facility. Fixed overhead costs associated with idle capacity are expensed as incurred.

~~F-7~~F-7

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Significant improvements are capitalized, while maintenance and repair expenditures are charged to operations as incurred. The Company capitalizes interest cost as a component of construction in progress. The straight-line method of depreciation is used for substantially all of the assets for financial reporting purposes, except for mining related equipment which uses units-of-production method. The annual rates of depreciation are 3% - 6.67% for buildings, 6.67% - 12.5% for machinery and equipment, 8% - 12.5% for furniture and fixtures and 12.5% - 25% for computer equipment and software-related assets. The estimated useful lives of our PCC production facilities and machinery and equipment pertaining to our natural stone mining and processing plants and our chemical plants are 15 years.

Property, plant and equipment are depreciated over their useful lives. Useful lives are based on management's estimates of the period that the assets can generate revenue, which does not necessarily coincide with the remaining term of a customer's contractual obligation to purchase products made using those assets. The Company's sales of PCC are predominantly pursuant to long-term evergreen contracts, initially ten years in length, with paper mills at which the Company operates satellite PCC plants. The terms of many of these agreements have been extended, often in connection with an expansion of the satellite PCC plant. Failure of a PCC customer to renew an agreement or continue to purchase PCC from a Company facility could result in an impairment of assets charge or accelerated depreciation at such facility.

Depletion of mineral reserves is determined on a unit-of-extraction basis for financial reporting purposes, based upon proven and probable reserves, and generally on a percentage depletion basis for tax purposes.

Stripping Costs Incurred During Production

Stripping costs are those costs incurred for the removal of waste materials for the purpose of accessing ore body that will be produced commercially. Stripping costs incurred during the production phase of a mine are variable costs that are included in the costs of inventory produced during the period that the stripping costs are incurred.

Accounting for the Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates the undiscounted future cash flows (excluding interest), resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset, determined principally using discounted cash flows.

Goodwill and Other Intangible Assets

Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized, but instead assessed for impairment. Intangible assets with estimable useful lives are amortized on a straight-line basis over their respective estimated lives to the estimated residual values, and reviewed for impairment.

The Company performs a qualitative assessment for each of its reporting units to determine if the ~~two step~~two-step process for impairment testing is required. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would then evaluate the recoverability of goodwill using a two-step impairment test approach at the reporting unit level. In the first step, the fair value for the reporting unit is compared to its book value including goodwill. In the case that the fair value of the reporting unit is less than book value, a second step is performed which compares the fair value of the reporting unit's goodwill to the book value of the goodwill. The fair value for the goodwill is determined based on the difference between the fair values of the reporting unit and the net fair values of the identifiable assets and liabilities of such reporting unit. If the fair value of the goodwill is less than the book value, the difference is recognized as impairment.

In addition to the assessment of goodwill impairment, the Company also reviews its other identifiable intangibles for impairment. Each year, the Company reviews whether events or changes in circumstances could indicate that a long-lived asset's carrying amount may not be recoverable. Should such events occur, the value of intangibles not recoverable would be recognized as impairment.

~~F-8~~

F-8

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Investment in Joint Ventures

The Company uses the equity method of accounting to incorporate the results of its investments in companies in which it has significant influence but does not control; and cost method of accounting in companies in which it cannot exercise significant control. The Company records the equity in earnings of its investments in joint ventures on a one-month lag. At December 31, ~~2019,~~2021 and 2020, the book value of the Company’s equity method investments was ~~$16.1~~$17.5 million and $17.0 million.

Accounting for Asset Retirement Obligations

The Company provides for obligations associated with the retirement of long-lived assets and the associated asset retirement costs. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company also provides for legal obligations to perform asset retirement activities where timing or methods of settlement are conditional on future events.

The Company also records liabilities related to land reclamation as a part of the asset retirement obligations. The Company mines land for various minerals using a surface-mining process that requires the removal of overburden. In many instances, the Company is obligated to restore the land upon completion of the mining activity. As the overburden is removed, the Company recognizes this liability for land reclamation based on the estimated fair value of the obligation. The obligation is adjusted to reflect the passage of time and changes in estimated future cash outflows.

Fair Value of Financial Instruments

The recorded amounts of cash and cash equivalents, receivables, short-term borrowings, accounts payable, accrued interest, and variable-rate long-term debt approximate fair value because of the short maturity of those instruments or the variable nature of underlying interest rates. Short-term investments are recorded at cost, which approximates fair market value.

Derivative Financial Instruments

The Company records derivative financial instruments which are used to hedge certain foreign exchange risk at fair value on the balance sheet. See Note 12 for a full description of the Company's hedging activities and related accounting policies.

Revenue Recognition

Revenue is recognized at the point in time when the customer obtains control of the promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company's revenues are primarily derived from the sale of products. Our primary performance obligation is satisfied upon shipment or delivery to our customer based on written sales terms, which is also when control is transferred. Revenues from sales of equipment are recorded upon completion of installation and transfer of control to the customer. Revenue where our performance obligations are satisfied in phases is recognized over time using certain input measures based on the measurement of the value transferred to the customer, including milestones achieved. Revenues from services are recorded when the services are performed.

In most of our PCC contracts, the price per ton is based upon the total number of tons sold to the customer during the year. Under those contracts, the price billed to the customer for shipments during the year is based on periodic estimates of the total annual volume that will be sold to the customer. Revenues are adjusted at the end of each year to reflect the actual volume sold. There were no0 significant revenue adjustments in the fourth quarter of ~~2019~~2021 and ~~2018,~~2020, respectively. We have consignment arrangements with certain customers in our Refractories segment. Revenues for these transactions are recorded when the consigned products are consumed by the customer.

~~F-9~~F-9

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Foreign Currency

The assets and liabilities of the Company's international subsidiaries are translated into U.S. dollars using exchange rates at the respective balance sheet date. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) in shareholders' equity. Income statement items are generally translated at monthly average exchange rates prevailing during the period. International subsidiaries operating in highly inflationary economies translate non-monetary assets at historical rates, while net monetary assets are translated at current rates, with the resulting translation adjustments included in net income. At December 31, ~~2019,~~2021, the Company had no international subsidiaries operating in highly inflationary economies.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

The Company operates in multiple taxing jurisdictions, both within the U.S. and outside the U.S. In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings. The Company regularly assesses its tax position for such transactions and includes reserves for those differences in position. The reserves are utilized or reversed once the statute of limitations has expired or the matter is otherwise resolved.

The application of income tax law is inherently complex. Laws and regulations in this area are voluminous and are often ambiguous. As such, we are required to make many subjective assumptions and judgments regarding our income tax exposures. Interpretations of and guidance surrounding income tax laws and regulations change over time. As such, changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of operations. The Company's accounting policy is to recognize interest and penalties as part of its provision for income taxes. See Note 8 for additional detail on our uncertain tax positions.

The accompanying financial statements do not include a provision for foreign withholding taxes on international subsidiaries' unremitted earnings, which are expected to be permanently reinvested overseas.

Research and Development

Research and development costs are expensed as incurred.

Accounting for Stock-Based Compensation

The Company recognizes compensation expense for share-based awards based upon the grant date fair value over the vesting period.

Pension and Post-retirement Benefits

The Company has defined benefit pension plans covering the majority of its employees. The benefits are generally based on years of service and an employee's modified career earnings.

The Company also provides post-retirement healthcare benefits for the majority of its retirees and employees in the United States. The Company measures the costs of its obligation based on its best estimate. The net periodic costs are recognized as employees render the services necessary to earn the post-retirement benefits.

~~F-10~~F-10

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Environmental

Expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and which do not contribute to current or future revenue generation are expensed. Liabilities are recorded when it is probable the Company will be obligated to pay amounts for environmental site evaluation, remediation or related costs, and such amounts can be reasonably estimated.

Earnings Per Share

Basic earnings per share have been computed based upon the weighted average number of common shares outstanding during the period.

Diluted earnings per share have been computed based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding.

Subsequent Events

The Company has evaluated for subsequent events through the date of issuance of its financial statements.

Recently Issued Accounting Standards

~~Measurement~~Adoption of ~~Credit Losses on Financial Instruments~~Simplifying the Accounting for Income Taxes

~~Adoption of ASU 2016-02 Leases~~

On January 1, ~~2019, the Company adopted the provisions of ASU 2016-02, “Leases”, which requires lessees to recognize most leases on the balance sheet.~~ The Company has adopted this new standard under the modified retrospective transition method, using the effective date as our date of initial application. As such, financial information and required disclosures will not be provided for dates prior to January 1, 2019. The new standard provides a number of optional practical expedients in transition. We have elected the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. We have elected the short-term lease recognition exemption for all leases that qualify. On adoption, we recognized additional operating liabilities of $~~61.4~~ ~~million with corresponding right-of-use assets of $50.5~~ ~~million based on the present value of the remaining lease payments under existing operating leases. As of December 31, 2018, we had $10.9~~ ~~million in deferred charges related to some of our real estate leases that were recorded against the right of use asset as part of the transition. The adoption~~2021. Adoption of this standard did not have a material impact on the Company's consolidated financial statements.

~~F-11~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Note 2. Leases

We determine if an arrangement is a lease at inception. The Company has operating leases for premises, equipment, rail cars and automobiles. Our leases have remaining lease terms of 1 year to 50 years, some of which may include options to extend the leases further. The Company considers these options in determining the lease term used to establish the right-of-use assets and lease liabilities. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based upon the information available at commencement date, or as of implementation of ASC 842, in determining the present value of lease payments.

Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Certain lease agreements contain both lease and non-lease components. We account for lease components together with non-lease components.

F-11

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Operating lease cost was $15.3 million, $15.3 million and $16.6 ~~million~~ for the ~~year~~years ended December 31, ~~2019.~~2021 , December 31, 2020 and December 31, 2019, respectively. The components of lease costs are as follows:

(millions of dollars) Year Ended December 31,
2019

Operating lease cost $ 15.5
Short-term lease cost 1.1
Total $ 16.6

		December 31,
(millions of dollars)	2021			2020			2019
Operating lease cost		$	15.2		$	15.2	$	15.5
Short-term lease cost			0.1			0.1		1.1
Total		$	15.3		$	15.3	$	16.6

Supplemental cash flow information and non-cash activity related to our ~~operating~~ leases are as follows:

(millions of dollars)	December 31, 2019		December 31, 2021

Operating cash flows information:
Cash paid for amounts included in the measurement of lease liabilities	$	16.2	$	16.0
Non-cash activity:
Right-of-use assets obtained in the exchange for operating lease liabilities	$	7.3	$	11.5

Weighted average remaining lease term, and weighted average discount rates related to the Company’s ~~operating~~ leases were as follows:

Weighted-average remaining operating lease term (in years)			~~7.57~~7.22
Weighted-average operating leases discount rate			5.0	%

The following table summarizes the Company's outstanding lease assets and liabilities and their classification on the Consolidated Balance Sheet:

					December 31,
(millions of dollars)	Balance Sheet Classification	December 31, 2019		Balance Sheet Classification	2021		2020

Right-of-use asset	Other assets and deferred charges	$	44.8
Right-of-use-asset				Other assets and deferred charges	$	49.6	$	50.9
Lease liability - current	Other current liabilities		11.9	Other current liabilities		11.7		11.7
Lease liability - non-current	Other non-current liabilities		43.3	Other non-current liabilities		47.2		49.2

Future minimum lease payments under the Company's leases as of December 31,2021 were as follows:

(millions of dollars)	December 31, 2021

2022	$	14.3
2023		12.1
2024		9.5
2025		8.0
2026		7.4
Thereafter		19.3
Total future minimum lease payments		70.6
Less imputed interest		(11.7	)
Total	$	58.9

~~F-12~~F-12

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

~~Future minimum lease payments under the Company's operating leases as of~~ ~~December 31,2019~~ ~~were as follows:~~

(millions of dollars)
December 31, 2019

2020 $ 14.3
2021 10.8
2021 8.5
2023 6.6
2024 5.2
Thereafter 21.4
Total future minimum lease payments 66.8
Less imputed interest (11.6 )
Total $ 55.2

~~As of December 31, 2018, minimum lease payments under non-cancellable operating leases were expected to be as follows:~~

(millions of dollars)
December 31, 2018

2019 $ 17.3
2020 13.0
2021 9.5
2022 8.2
2023 7.0
Thereafter 24.8
Total $ 79.8

~~A summary of rent expense for the fiscal years ended December 31, 2018 and December 31, 2017 was as follows:~~

(millions of dollars)
December 31, 2018

December 31, 2017

Rent expense $ 19.5 $ 19.3

~~The Company has certain arrangements under which we are the lessor. Lease income associated with these leases is not material.~~

~~F-13~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Note 3. Revenue from Contracts with Customers

The Company’s revenues are primarily derived from the sale of products in product lines within our Performance Materials, Specialty Minerals and Refractories businesses.

On a regular basis, the Company reviews its segments and the approach used by the chief operating decision maker to assess performance and allocate resources. Accordingly, in the first quarter of 2021, the Company reorganized the management structure for its Energy Services ~~businesses.~~ and Performance Materials operating segments to support MTI's key growth initiatives, more closely align complementary technologies, processes and capabilities, and better reflect the way performance is evaluated and resources are allocated. As a result, Energy Services, was combined into the Environmental Products product line within the Performance Materials operating segment. The Performance Materials' operating segment restated financial results for the years ended 2020 and 2019, by product line, are presented in Note 21 to conform to the current management structure.

Our primary performance obligation (the sale of products) is satisfied upon shipment or delivery to our customers based on written sales terms, which is also when control is transferred. In most of our contracts in our Paper PCC product line, which is in our Specialty Minerals segment, the price per ton is based upon the total number of tons sold to the customer during the year. Under these contracts, the price billed to the customer for shipments during the year is based on periodic estimates of the total annual volume that will be sold to such customer. Revenues are adjusted at the end of each year to reflect the actual volume sold. The Company also has consignment arrangements with certain customers in our Refractories segment. Revenues for these transactions are recorded when the consigned products are consumed by the customer and control is transferred to the customer.

Revenue from sales of equipment, primarily in our Refractory products product line within our Refractories segment, is recorded upon completion of installation and control is transferred to the customer. Revenue from services is recorded when the services have been performed. Included within our Refractory products product line are certain consignment arrangements with certain customers in our Refractories segment. Revenues for these transactions are recorded when the consigned products are consumed by the customer and control is transferred.

Revenue ~~from long-term construction, primarily in our Energy Services segment,~~ where our performance obligations are satisfied in phases is recognized over time using certain input measures based on the measurement of the value transferred to the customer, including milestones achieved.

On a regular basis, the Company reviews its product line groupings to generate greater alignment within each product line. Accordingly, in the third quarter of 2019, the Company combined its Basic Minerals product line with its Household, Personal Care & Specialty Products product line, both within our Performance Materials segment. Prior year amounts were reclassified to conform to current presentation.

~~F-14~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The following table disaggregates our revenue by major source (product line) for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017:~~2019:

	Year Ended December 31,						Year Ended December 31,
(millions of dollars)	2019		2018		2017		2021		2020		2019
Net Sales
Household, Personal Care & Specialty Products							$	460.5	$	380.2	$	376.6
Metalcasting	$	291.2	$	328.9	$	294.3		319.2		258.1		291.2
Household, Personal Care & Specialty Products		376.6		348.5		294.6
Environmental Products		86.6		80.3		67.7		136.3		131.6		181.8
Building Materials		68.9		70.4		78.2		60.0		55.9		68.9
Performance Materials		823.3		828.1		734.8		976.0		825.8		918.5

Paper PCC		364.9		378.5		377.7		349.7		308.4		364.9
Specialty PCC		69.1		66.9		66.0		77.1		69.3		69.1
Ground Calcium Carbonate		91.3		91.0		87.3		98.1		89.3		91.3
Talc		49.1		52.9		53.8		54.0		43.9		49.1
Specialty Minerals		574.4		589.3		584.8		578.9		510.9		574.4

Refractory Products		244.8		261.1		226.9		237.1		212.3		244.8
Metallurgical Products		53.3		50.8		52.5		66.3		45.8		53.3
Refractories		298.1		311.9		279.4		303.4		258.1		298.1

Energy Services		95.2		78.3		76.7

Total	$	1,791.0	$	1,807.6	$	1,675.7	$	1,858.3	$	1,594.8	$	1,791.0

F-13

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4. ~~Business Combination~~Acquisitions

On ~~April 30, 2018,~~July 26, 2021, the Company completed the acquisition of ~~Sivomatic Holding B.V. (“Sivomatic”)~~Normerica Inc., a leading ~~European~~North American supplier of premium pet ~~litter products. Sivomatic is a vertically integrated manufacturer, with~~care products for approximately $189 million. Normerica has production facilities in Canada, the ~~Netherlands, Austria~~U.S. and ~~Turkey. With~~Thailand. As a ~~leading position~~leader in ~~premier clumping~~the pet product industry, Normerica provides premium products, ~~Sivomatic’s~~both branded and private label to world-class retailers. Its product portfolio ~~spans~~consists primarily of bentonite-based cat litter products which are supplied from a network of strategically located manufacturing facilities in Canada and the ~~range of pet litter derived from bentonite, sourced predominantly from wholly-owned mines in Turkey.~~United States. The results of ~~Sivomatic~~Normerica are included within our Household, Personal Care & Specialty Products product line in our Performance Materials segment. ~~Sivomatic~~Normerica sales of ~~$61.8~~$48.6 million are included in the Company's consolidated results for the year ended December 31, ~~2018.~~2021. The acquisition was financed through a combination of cash on hand and ~~borrowings under~~ the Company’s credit facilities. The fair value of the total consideration transferred, net of cash acquired, was ~~$122.5~~$187.5 million.

The acquisition has been accounted for using the acquisition method of accounting, which requires, among other things, that we recognize the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. As of ~~April 30, 2019,~~December 31, 2021, the purchase price allocation ~~has been finalized.~~remains preliminary as the Company completes its assessment of property, certain reserves, legal and tax matters, obligations, intangible assets and deferred taxes, as well as completes its review of Normerica’s existing accounting policies.

~~F-15~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The following table summarizes the ~~Company’s final amounts recognized for assets acquired and liabilities assumed~~Company's preliminary purchase price allocation for the ~~Sivomatic~~Normerica acquisition ~~which did not change from~~as compared with the ~~amounts~~allocation previously reported on the Company's Form ~~10-K~~10-Q for the ~~year~~quarter ended ~~December 31, 2018:~~October 3, 2021:



(millions of dollars)	Final Allocation		Preliminary Allocation Previously Reported on Form 10-Q as of October 3, 2021		Increase/ (Decrease)			Preliminary Allocation as of December 31, 2021
Accounts receivable	$	24.4	$	8.4	$	0		$	8.4
Inventories		15.6		5.1		0			5.1
Other current assets		0.6		1.4		0			1.4
Mineral rights		39.7
Property, plant and equipment		28.3		21.2		0			21.2
Goodwill		35.0		106.0		(1.5	)		104.5
Intangible assets		26.4		67.0		1.1			68.1
Total assets acquired		170.0		209.1		(0.4	)		208.7
Current maturity of long-term debt		5.7

Accounts payable		9.0		12.8		0			12.8
Accrued expenses		5.6		9.4		(1.0	)		8.4
Long-term debt		5.3
Non-current deferred tax liability		19.7
Other non-current liabilities		2.2
Total liabilities assumed		47.5		22.2		(1.0	)		21.2
Net assets acquired	$	122.5	$	186.9	$	0.6		$	187.5

The Company used the income, market, or cost approach (or a combination thereof) for the preliminary valuation and used valuation inputs and analyses that were based on market participant assumptions. Changes in assumptions can have a significant impact on the fair value of intangible assets. Market participants are considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability. For certain items, the carrying value was determined to be a reasonable approximation of fair value based on the information available.

Goodwill was calculated as the excess of the consideration transferred over the assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill is primarily attributable to fair value of expected synergies from combining the MTI and Normerica businesses and will be allocated to the Performance Materials reporting unit. The allocation ~~was~~is expected to be completed during the ~~second~~third quarter of ~~2019. Goodwill recognized as a result of this acquisition is not deductible for tax purposes.~~

In connection with the acquisition, the Company recorded an additional deferred tax liability of $18.8 million with a corresponding increase to goodwill. The increase in deferred tax liability represents the tax effect of the difference between the estimated assigned fair value of the tangible and intangible assets and the tax basis of such assets.

~~Mineral rights were valued using discounted cash flow method. Plant, property and equipment were valued using the cost method adjusted for age and deterioration.~~2022.

Intangible assets acquired of $68.1 million mainly include tradenames of $18.1 million and customer ~~relationships. Both tradenames~~relationships of $50 million. Tradenames have an estimated useful life of approximately 15 years and customer relationships have an estimated useful life of approximately 20 years.

F-14

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company did not present pro forma and other financial information for the ~~Sivomatic~~Normerica acquisition, as this is not considered to be a material business combination.

The Company incurred $4.0 million and $3.1 million of acquisition-related costs during 2021 and 2020, respectively, which are reflected within the acquisition-related expenses line of the Consolidated Statements of Income.

In November 2021, the Company acquired Specialty PCC assets from a company in the Midwest United States for $6.9 million.

In the third quarter of 2020, the Company acquired the assets of a mining and hauling company in the western United States for $9.2 million to support our bentonite clay mining operations.

Note 5. Restructuring and Other Items, net

In the third quarter of 2021, PCA Corporation discontinued the use of PCC at their mill in Jackson, Alabama. As a result, the Company recorded a non-cash asset write-down of $0.7 million and $0.4 million in severance related and other closure costs for its Paper PCC satellite facility at this mill.

During the third quarter of 2020, Domtar Corporation announced the permanent shut down of their previously idled paper machine at their mill in Ashdown, Arkansas. As a result, the Company recorded a non-cash asset write-down charge of $1.1 million for its Paper PCC satellite facility at this mill.

During the second quarter of 2020, Verso Papers announced they would be idling 2 of their paper mills indefinitely. As a result, the Company recorded a non-cash asset write-down charge of $6.0 million and $0.3 million in severance related costs for its Paper PCC satellite facilities at these mills. The Company also recorded lease termination costs at 1 of these closed mills.

During the second quarter of 2019, the Company initiated a restructuring and cost savings program to better align our costs and organizational structure with the current market environment. The Company recorded a $7.5 million non-cash asset write-down ~~of assets~~ charge related to facilities and equipment no longer operating and deemed to be held for sale or discontinued and $5.7 million in other restructuring costs. ~~The Company expects to realize annualized savings from this restructuring program of approximately $12 million by the first half of 2020.~~

~~F-16~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

In 2018, the Company recorded impairment of assets charges relating to the shut-down of one of its Paper PCC facilities in the U.S. in the first quarter of 2019 and additional restructuring costs relating to our exited Energy Services businesses.

In 2017, the Company recognized $15 million in restructuring and non-cash impairment charges from the closure of paper mills in North America, as well as the alignment of corporate and Paper PCC staffing levels into higher growth regions.

The following table outlines the amount of restructuring charges recorded within the Consolidated Statements of Income and the segments they relate to:

Restructuring and Other Items, net	Year Ended December 31,							Year Ended December 31,
(millions of dollars)	2019		2018		2017			2021		2020		2019
Asset Write-Downs
Performance Materials	$	4.2	$	—	$	—		$	0	$	0	$	5.9
Specialty Minerals		1.6		0.7		5.3			0.7		7.1		1.6
Energy Services		1.7		—		—
Total asset write-down charges	$	7.5	$	0.7	$	5.3		$	0.7	$	7.1	$	7.5

Severance and other employee costs
Severance and other costs
Performance Materials	$	2.8	$	—	$	—		$	0	$	0	$	2.9
Specialty Minerals		0.9		—		5.0			0.4		0.5		0.9
Refractories		0.8		—		—			0		0		0.8
Energy Services		0.1		1.8		1.7
Corporate		1.1		—		4.1			0		0		1.1
Total severance and other employee costs	$	5.7	$	1.8	$	10.8		$	0.4	$	0.5	$	5.7

Other
Energy Services	$	—	$	—	$	(1.1	)

Total restructuring and other items, net	$	13.2	$	2.5	$	15.0		$	1.1	$	7.6	$	13.2

At December 31, ~~2019~~2021 and ~~2018,~~2020, the Company had ~~$5.0~~$2.2 million and ~~$2.5~~$3.6 million, respectively, included within other current liabilities within our Consolidated Balance Sheets for cash expenditures needed to satisfy remaining obligations under these reorganization initiatives. The Company expects to pay these amounts by the end of ~~2020.~~2022.

F-15

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table is a reconciliation of our restructuring liability ~~balance:~~balance as of December 31, 2021 and 2020:

(millions of dollars)
Restructuring liability, December 31, 2018 $ 2.5
Additional provisions 5.7
Cash payments (3.2 )
Other —
Restructuring liability, December 31, 2019 $ 5.0

~~F-17~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

	December 31,
(millions of dollars)	2021			2020
Restructuring liability, beginning of period	$	3.6		$	5.0
Additional provisions		0.1			0.3
Cash payments		(1.5	)		(1.6	)
Other		0			(0.1	)
Restructuring liability, end of period	$	2.2		$	3.6

Note 6. Stock-Based Compensation

~~At the Company’s 2015 Annual Meeting of Stockholders, the Company’s stockholders ratified the adoption of the~~The Company’s 2015 Stock Award and Incentive Plan ~~(the “2015 Plan”), which~~ provides for grants of incentive and non-qualified stock options, restricted stock, stock appreciation rights, stock awards orand performance unit ~~awards. The~~awards (the 2015 Stock Award and Incentive Plan, ~~is substantially similar~~as amended, referred to herein as the ~~Company’s~~“Plan” and together with its predecessor for awards granted prior to May 2015, the 2001 Stock Award and Incentive Plan, ~~(as~~as amended and restated, ~~as of March 18, 2009, the “2001 Plan” and collectively with the 2015 Plan,~~ the “Plans”). The Company established the 2015 Plan to increase the total number of shares of common stock reserved and available for issuance by 880,000 shares from the number of shares remaining under the 2001 Plan. With the ratification of the 2015 Plan by the Company’s stockholders, the 2001 Plan was discontinued as to new grants (however, all awards previously granted under the 2001 Plan remained unchanged). The Plans are administered by the Compensation Committee of the Board of Directors. Stock options granted under the Plans generally have a ten year term. The exercise price for stock options are at prices at or above the fair market value of the common stock on the date of the grant, and each award of stock options will vest ratably over a specified period, generally three years.

Stock-based compensation expense is recognized in the consolidated financial statements for stock options based on the grant date fair value.

Net income for years ended 2021, 2020 and 2019 ~~2018 and 2017~~ include ~~$4.8~~$4.9 million, ~~$4.2~~$4.6 million and ~~$4.1~~$4.8 million pre-tax compensation costs, respectively, related to stock option expense as a component of marketing and administrative expenses. All stock option expense is recognized in the consolidated statements of operations. The related tax benefit included in the statement of income on the non-qualified stock options was $1.3 million, ~~$1.1~~$1.2 million and ~~$1.1~~$1.3 million for ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively.

Stock Options

The fair value of options granted is estimated on the date of grant using the Black-Scholes valuation model. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on the Company's historical experience and future expectations. The forfeiture rate assumption used for the periods ended December 31, 2021, 2020 and 2019 ~~2018~~was 8.38%, 8.45% and ~~2017 was~~ 8.85%~~, 8.20% and 8.71%~~, respectively.

The weighted average grant date fair value for stock options granted during the years ended December 31, 2021, 2020 and 2019 ~~2018~~was $21.62, $18.99 and ~~2017 was~~ $18.86, ~~$25.79 and $30.28,~~ respectively. The weighted average grant date fair value for stock options vested during 2021, 2020 and 2019 ~~2018~~was $20.56, $23.85 and ~~2017 was~~ $22.46, ~~$21.33 and $18.45,~~ respectively. The total intrinsic value of stock options exercised during the years ended December 31, 2021, 2020 and 2019 ~~2018 and 2017~~ was ~~$2.2~~$6.1 million, ~~$3.3~~$2.3 million and ~~$11.7~~$2.2 million, respectively.

The fair value for stock awards was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017:~~2019:

	Year Ended December 31,									Year Ended December 31,
	2019			2018			2017			2021			2020			2019
Expected life (in years)		6.6			6.2			6.4			6.9			6.7			6.6
Interest rate		2.62	%		2.50	%		2.04	%		0.71	%		1.67	%		2.62	%
Volatility		30.26	%		30.33	%		36.61	%		32.04	%		30.34	%		30.26	%
Expected dividend yield		0.37	%		0.26	%		0.26	%		0.31	%		0.35	%		0.37	%

F-16

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The expected term of the options represents the estimated period of time until ~~exercise~~exercised and is based on historical experience of similar awards, based upon contractual terms, vesting schedules, and expectations of future employee behavior. The expected stock-price volatility is based upon the historical and implied volatility of the Company's stock. The interest rate is based upon the implied yield on U.S. Treasury bills with an equivalent remaining term. Estimated dividend yield is based upon historical dividends paid by the Company.

~~F-18~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The following table summarizes stock option activity for the year ended December 31, ~~2019:~~2021:

Awards
Weighted Average
Exercise Price
per Share

Weighted Average
Remaining Contractual
Life (Years)

Aggregate
Intrinsic Value
(Millions)

Awards outstanding at December 31, 2018 1,054,259 $ 54.04
Granted 271,261 54.44
Exercised (79,686 ) 27.26
Canceled (14,214 ) 66.93
Expired (4,000 ) 19.86
Awards outstanding at December 31, 2019 1,227,620 $ 55.83 6.20 $ 9.2
Awards exercisable at December 31, 2019 788,847 $ 51.75 4.90 $ 8.3

	Awards			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (Millions)
Awards outstanding at December 31, 2020		1,363,366		$	57.29
Granted		255,769			66.00
Exercised		(251,195	)		51.12
Canceled		(37,938	)		64.92
Awards outstanding at December 31, 2021		1,330,002		$	59.91		6.14		$	18.7
Awards exercisable at December 31, 2021		834,060		$	59.09		4.80		$	12.8

The aggregate intrinsic value above is calculated before applicable income taxes, based on the Company's closing stock price of ~~$57.63~~$73.15 as of the last business day of the period ended December 31, ~~2019~~2021 had all options been exercised on that date. The weighted average intrinsic value of the options exercised during 2021, 2020 and 2019 ~~2018~~was $24.43, $24.41 and ~~2017 was~~ $27.21 ~~$33.10 and $32.95~~ per share, respectively. As of December 31, ~~2019,~~2021, total unrecognized stock-based compensation expense related to non-vested stock options was approximately ~~$4.6~~$4.9 million, which is expected to be recognized over a weighted average period of approximately three years.

The Company issues new shares of common stock upon the exercise of stock options.

Non-vested stock option activity for the year ended December 31, ~~2019~~2021 is as follows:

	Awards			Weighted Average Grant Date Fair Value per Share		Awards			Weighted Average Grant Date Fair Value per Share
Nonvested awards outstanding at December 31, 2018		365,607		$	68.86
Nonvested awards outstanding at December 31, 2020							487,160		$	58.61
Granted		271,261			54.44		255,769			66.00
Vested		(189,854	)		61.64		(225,402	)		60.88
Canceled		(8,241	)		64.19		(21,585	)		61.11
Nonvested awards outstanding at December 31, 2019		438,773		$	63.15
Nonvested awards outstanding at December 31, 2021							495,942		$	61.28

Restricted Stock

The Company has granted key employees rights to receive shares of the Company's common stock pursuant to the Plan. The rights will be deferred for a specified number of years of service, subject to restrictions on transfer and other conditions. Compensation expense for these shares is recognized over the vesting period. The Company granted ~~116,901~~102,309 shares, ~~69,361~~108,212 shares and ~~69,539~~116,901 shares for the periods ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively. The fair value was determined based on the market value of unrestricted shares. As of December 31, ~~2019,~~2021, there was unrecognized stock-based compensation related to restricted stock of ~~$6.1~~$6.4 million, which will be recognized over approximately the next three years. The compensation expense amortized with respect to all units was approximately ~~$5.2~~$5.9 million, ~~$4.4~~$5.6 million and ~~$5.9~~$5.2 million for the periods ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively. In addition, the Company recorded reversals of ~~$1.9~~$2.6 million, ~~$2.4~~$2.3 million and ~~$2.4~~$1.9 million for periods ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively, related mostly to the conversion of restricted stock ~~forfeitures.~~for tax withholding purposes. Such costs and reversals are included in marketing and administrative expenses.

~~F-19~~F-17

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the restricted stock activity for the Plan:

	Awards			Weighted Average Grant Date Fair Value per Share		Awards			Weighted Average Grant Date Fair Value per Share
Unvested balance at December 31, 2018		134,578		$	68.64
Unvested balance at December 31, 2020							201,985		$	58.07
Granted		116,901			54.51		102,309			66.20
Vested		(40,776	)		60.79		(51,497	)		60.40
Canceled		(32,967	)		61.87		(56,664	)		60.98
Unvested balance at December 31, 2019		177,736		$	62.40
Unvested balance at December 31, 2021							196,133		$	60.87

Note 7. Earnings Per Share (EPS)

	Year Ended December 31,						Year Ended December 31,
(in millions, except per share data)	2019		2018		2017		2021		2020		2019
Net income attributable to MTI	$	132.7	$	169.0	$	195.1	$	164.4	$	112.4	$	132.7


Weighted average shares outstanding		35.0		35.3		35.2		33.6		34.2		35.0
Dilutive effect of stock options and stock units		0.1		0.3		0.4		0.2		0		0.1
Weighted average shares outstanding, adjusted		35.1		35.6		35.6		33.8		34.2		35.1

Basic earnings per share attributable to MTI	$	3.79	$	4.79	$	5.54	$	4.89	$	3.29	$	3.79

Diluted earnings per share attributable to MTI	$	3.78	$	4.75	$	5.48	$	4.86	$	3.29	$	3.78

~~Options~~Of the options outstanding of 1,330,002, 1,363,366 and 1,227,620 for the years ended December 31, 2021, 2020 and 2019, respectively, options to purchase ~~825,331~~510,683 shares, ~~568,284~~591,322 shares and ~~181,003~~825,331 shares of common stock for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of the common shares.

Note 8. Income Taxes

The U.S. Tax Cuts and Jobs Act (“U.S. Tax Reform”), enacted in December 2017, significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of U.S. subsidiaries. Under U.S. GAAP (specifically, ASC Topic 740), the effects of changes in tax rates and laws on deferred tax balances are recognized in the period in which the new legislation is enacted.

During 2018, we recorded a benefit of $4.4 million as a measurement period adjustment to the one-time mandatory tax on previously deferred earnings of non-U.S. subsidiaries. The accounting for income tax effects of U.S. Tax Reform is complete based on additional tax regulations available as of December 31, 2018. Amounts recorded during 2018 and 2017, respectively, are reflected within the provision for income taxes in the Consolidated Statement of Income.

Additionally, U.S. tax reform subjects a U.S. shareholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. We have elected to not recognize deferred taxes for temporary differences until such differences reverse as GILTI in future years.

~~F-20~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Income from operations before provision for taxes by domestic and foreign source is as follows:

	Year Ended December 31,						Year Ended December 31,
(millions of dollars)	2019		2018		2017		2021		2020		2019
Income from continuing operations before income taxes and income from affiliates and joint ventures:
Income from operations before income taxes and income from affiliates and joint ventures:
Domestic	$	46.9	$	93.1	$	96.7	$	66.0	$	21.4	$	46.9
Foreign		110.4		111.0		94.2		136.3		116.6		110.4
	$	157.3	$	204.1	$	190.9	$	202.3	$	138.0	$	157.3

F-18

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The provision (benefit) for taxes on income consists of the following:

	Year Ended December 31,									Year Ended December 31,
(millions of dollars)	2019			2018			2017			2021			2020			2019
Domestic
Taxes currently payable
Federal	$	(3.3	)	$	(3.7	)	$	46.0		$	(5.3	)	$	(7.1	)	$	(3.3	)
State and local		0.8			1.4			2.4			0.4			0.2			0.8
Deferred income taxes		(6.6	)		11.1			(78.1	)		7.8			2.2			(6.6	)
Domestic tax provision (benefit)		(9.1	)		8.8			(29.7	)		2.9			(4.7	)		(9.1	)

Foreign
Taxes currently payable		26.7			21.3			21.1			33.4			34.0			26.7
Deferred income taxes		5.2			4.3			2.0			0.3			(4.9	)		5.2
Foreign tax provision		31.9			25.6			23.1			33.7			29.1			31.9
Total tax provision (benefit)	$	22.8		$	34.4		$	(6.6	)	$	36.6		$	24.4		$	22.8

The provision (benefit) for taxes on income shown in the previous table is classified based on the location of the taxing authority, regardless of the location in which the taxable income is generated.

The major elements contributing to the difference between the U.S. federal statutory tax rate and the consolidated effective tax rate are as follows:

Year Ended December 31,
2019 2018 2017
U.S. statutory rate 21.0 % 21.0 % 35.0 %

Depletion (5.0 )% (3.9 )% (6.7 )%
Difference between tax provided on foreign earnings and the U.S. statutory rate 3.8 % 1.1 % (3.8 )%
Global Intangible Low-Tax Income (GILTI) — 0.8 % —
Foreign Derived Intangible Income (0.8 )% (0.7 )% —
State and local taxes, net of federal tax benefit 0.2 % 1.9 % 1.1 %
Tax credits and foreign dividends (0.7 )% (0.3 )% 0.3 %
Change in valuation allowance 1.0 % — (1.9 )%
Impact of uncertain tax positions (5.0 )% 0.5 % 0.4 %
Impact of officer's non-deductible compensation 0.8 % 0.8 % 0.8 %
Manufacturing deduction — — (1.6 )%
Impact of U.S. Tax Reform (1.1 )% (2.2 )% (24.8 )%
Other 0.3 % (2.1 )% (2.3 )%
Consolidated effective tax rate 14.5 % 16.9 % (3.5 )%

	Year Ended December 31,
	2021			2020			2019
U.S. statutory rate		21.0	%		21.0	%		21.0	%

Depletion		(5.4	)%		(6.2	)%		(5.0	)%
Difference between tax provided on foreign earnings and the U.S. statutory rate		2.6	%		3.3	%		3.8	%
Global Intangible Low-Tax Income (GILTI)		0.7	%		0.4	%		0
Foreign Derived Intangible Income		(1.4	)%		(1.0	)%		(0.8	)%
State and local taxes, net of federal tax benefit		0.7	%		0			0.2	%
Tax credits and foreign dividends		(0.4	)%		(0.6	)%		(0.7	)%
Change in valuation allowance		0			0			1.0	%
Impact of uncertain tax positions		(1.1	)%		(0.2	)%		(5.0	)%
Impact of officer's non-deductible compensation		0.8	%		1.0	%		0.8	%
Impact of U.S. Tax Reform		0			0			(1.1	)%
Other		0.6	%		0			0.3	%
Consolidated effective tax rate		18.1	%		17.7	%		14.5	%

~~F-21~~F-19

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company believes that its accrued liabilities are sufficient to cover its U.S. and foreign tax contingencies. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:

	December 31,						December 31,
(millions of dollars)	2019			2018			2021			2020
Deferred tax assets attributable to:
Accrued liabilities	$	29.7		$	22.2		$	29.7		$	29.8
Net operating loss carry forwards		33.9			34.4			31.8			31.1
Pension and post-retirement benefits costs		39.0			33.8			31.4			46.3
Other		31.4			28.6			22.4			28.2
Valuation allowance		(23.8	)		(22.0	)		(22.3	)		(20.9	)
Total deferred tax assets		110.2			97.0			93.0			114.5
Deferred tax liabilities attributable to:
Plant and equipment, principally due to differences in depreciation		181.3			182.8			178.8			169.5
Intangible assets		69.5			69.5			69.3			69.5
Other		17.0			15.2			10.0			13.9
Total deferred tax liabilities		267.8			267.5			258.1			252.9
Net deferred tax asset (liability)	$	(157.6	)	$	(170.5	)	$	(165.1	)	$	(138.4	)

Net deferred tax assets and net deferred tax liabilities are as follows:

	December 31,								December 31,
(millions of dollars)	2019				2018				2021				2020
Net deferred tax asset, long-term		$	23.0			$	26.3			$	23.0			$	25.3
Net deferred tax liability, long-term			180.6				196.8				188.1				163.7
Net deferred tax asset (liability), long-term		$	(157.6	)		$	(170.5	)		$	(165.1	)		$	(138.4	)

The Company has ~~$33.9~~$31.8 million of deferred tax assets arising from tax loss carry forwards which will be realized through future operations. Carry forwards of approximately ~~$18.1~~$17.8 million expire over the next 20 years, and ~~$15.8~~$14.0 million can be utilized over an indefinite period.

On December 31, ~~2019,~~2021, the Company had ~~$7.9~~$5.1 million of total unrecognized tax benefits. Included in this amount were a total of ~~$5.4~~$3.6 million of unrecognized income tax benefits that, if recognized, would affect the Company's effective tax rate. While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, we do not expect the change to have a significant impact on the results of operations or the financial position of the Company.

The following table summarizes the activity related to our unrecognized tax benefits:

(millions of dollars)	2019			2018		2021			2020
Balance at beginning of the year	$	16.6		$	14.7	$	7.6		$	7.9
Increases related to current year tax positions		1.5			0.6		0.6			0.7
Increases related to new judgements		0.7			1.3		0.2			0
Decreases related to audit settlements and statue expirations		(10.9	)		—		(3.3	)		(1.0	)

Balance at the end of the year	$	7.9		$	16.6	$	5.1		$	7.6

The Company's accounting policy is to recognize interest and penalties accrued, relating to unrecognized income tax benefits as part of its provision for income taxes. The Company ~~had~~ recorded ~~a $0.6~~$0.8 million ~~benefit~~ in interest and penalties during ~~2019~~2021 and had a total accrued balance on December 31, ~~2019~~2021 of ~~$1.9~~$1.2 million.

~~F-22~~F-20

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company operates in multiple taxing jurisdictions, both within and outside the U.S. In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings. The Company, with a few exceptions (none of which are material), is no longer subject to U.S. federal, state, local, and international income tax examinations by tax authorities for years prior to ~~2010.~~2015.

Net cash paid for income taxes were ~~$29.5~~$42.5 million, ~~$43.8~~$28.5 million and ~~$47.7~~$29.5 million for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively.

The Company had approximately ~~$418.3~~$481.4 million of foreign subsidiaries' undistributed earnings as of December 31, ~~2019.~~2021. We intend to continue to permanently reinvest these earnings overseas for the foreseeable future and while U.S. federal tax expense ashas been recognized as a result of U.S. Tax Reform, 0 deferred tax liabilities with respect to foreign withholding taxes or state taxes have been recognized.

Note 9. Inventories

The following is a summary of inventories by major category:

	December 31,				December 31,
(millions of dollars)	2019		2018		2021		2020
Raw materials	$	105.9	$	93.4	$	136.6	$	107.1
Work-in-process		7.2		11.2		10.7		9.0
Finished goods		95.5		92.2		99.4		85.6
Packaging and supplies		44.7		42.4		51.0		46.5
Total inventories	$	253.3	$	239.2	$	297.7	$	248.2

Note 10. Property, Plant and Equipment

The major categories of property, plant and equipment and accumulated depreciation and depletion are presented below:

	December 31,						December 31,
(millions of dollars)	2019			2018			2021			2020
Mineral rights and reserves	$	571.0		$	582.8		$	554.7		$	565.8
Land		47.5			47.3			50.6			50.9
Buildings		218.1			219.3			229.2			225.6
Machinery and equipment		1,241.2			1,235.6			1,262.8			1,254.3
Furniture and fixtures and other		144.1			134.8			139.9			138.9
Construction in progress		35.1			36.1			59.2			41.4
		2,257.0			2,256.0			2,296.4			2,276.9
Less: accumulated depreciation and depletion		(1,204.2	)		(1,153.1	)		(1,247.3	)		(1,237.3	)
Property, plant and equipment, net	$	1,052.8		$	1,102.9		$	1,049.1		$	1,039.6

In November 2021, the Company acquired Specialty PCC assets from a company in the Midwest United States for $6.9 million.

In the third quarter of 2020, the Company acquired the assets of a mining and hauling company in the western United States for $9.2 million to support our bentonite clay mining operations.

Depreciation and depletion expense for the years ended December 31, 2021, 2020 and 2019 ~~2018 and 2017~~ was ~~$82.1~~$77.4 million, ~~$80.7~~$77.9 million and ~~$75.6~~$82.1 million, respectively.

~~F-23~~F-21

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 11. Goodwill and Other Intangible Assets

Goodwill and other intangible assets with indefinite lives are not amortized, but instead are assessed for impairment, at least annually. The carrying amount of goodwill was ~~$807.4~~$907.5 million and ~~$812.4~~$808.5 million as of December 31, ~~2019~~2021 and December 31, ~~2018,~~2020, respectively. The net change in goodwill since December 31, ~~2018~~2021 was ~~primarily~~ attributable to the acquisition of Normerica (see Note 4 to the Consolidated Financial Statements) and the effects ofto foreign exchange.

The balance of goodwill by segment and the activity occurring in the past two fiscal years is as follows:

(millions of dollars)	Performance Materials			Specialty Minerals			Refractories			Consolidated			Performance Materials			Specialty Minerals			Refractories			Consolidated
Balance at December 31, 2017	$	720.9		$	12.7		$	45.7		$	779.3

Change in goodwill relating to:
Acquisition of Sivomatic		35.0			—			—			35.0
Foreign exchange translation		—			(0.4	)		(1.5	)		(1.9	)
Total Changes	$	35.0		$	(0.4	)	$	(1.5	)	$	33.1

Balance at December 31, 2018	$	755.9		$	12.3		$	44.2		$	812.4
Balance at December 31, 2019													$	751.2		$	12.5		$	43.7		$	807.4

Change in goodwill relating to:
Foreign exchange translation		(4.7	)		0.2			(0.5	)		(5.0	)		1.2			0.2			(0.3	)		1.1
Total Changes	$	(4.7	)	$	0.2		$	(0.5	)	$	(5.0	)	$	1.2		$	0.2		$	(0.3	)	$	1.1

Balance at December 31, 2019	$	751.2		$	12.5		$	43.7		$	807.4
Balance at December 31, 2020													$	752.4		$	12.7		$	43.4		$	808.5

Change in goodwill relating to:
Normerica acquisition														104.5			0			0			104.5
Foreign exchange translation														(3.9	)		(0.1	)		(1.5	)		(5.5	)
Total Changes													$	100.6		$	(0.1	)	$	(1.5	)	$	99.0

Balance at December 31, 2021													$	853.0		$	12.6		$	41.9		$	907.5

Acquired intangible assets subject to amortization as of December 31, ~~2019~~2021 and December 31, ~~2018~~2020 were as follows:

			December 31, 2019				December 31, 2018						December 31, 2021				December 31, 2020
	Weighted Average Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Weighted Average Useful Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Tradenames		35	$	203.9	$	32.5	$	204.2	$	26.6		34	$	221.6	$	44.9	$	203.9	$	38.6
Technology		13		18.8		8.0		18.8		6.4		13		18.8		11.2		18.8		9.6
Patents and trademarks		19		6.4		5.9		6.4		5.6		19		6.4		6.4		6.4		6.1
Customer relationships		22		24.7		4.4		26.5		3.2		21		75.2		7.9		26.9		5.9
		32	$	253.8	$	50.8	$	255.9	$	41.8		29	$	322.0	$	70.4	$	256.0	$	60.2

The weighted average amortization period of the acquired intangible assets subject to amortization is approximately 3229 years. Amortization expense was approximately ~~$9.1~~$10.6 million, ~~$8.8~~$9.3 million and ~~$8.0~~$9.1 million for the years ended December 31, ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively and is recorded within the Marketing and administrative expenses line within the Consolidated Statements of Income. The estimated amortization expense is as follows: ~~2020 - $9.3 million; 2021 -$9.3;~~ 2022 - ~~$9.1;~~$12.7 million; 2023 -$~~9.0 million;~~12.6; 2024 - ~~$9.0~~$12.6; 2025 -$12.6 million; 2026 - $12.6 million and ~~$157.3~~$188.3 million thereafter.

~~F-24~~F-22

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 12. Derivative Financial Instruments and Hedging Activities

As a multinational corporation with operations throughout the world, the Company is exposed to certain market risks. The Company uses a variety of practices to manage these market risks, including, when considered appropriate, derivative financial instruments. The Company's objective is to offset gains and losses resulting from interest rates and foreign currency exposures with gains and losses on the derivative contracts used to hedge them. The Company uses derivative financial instruments only for risk management and not for trading or speculative purposes.

By using derivative financial instruments to hedge exposures to changes in interest rates and foreign currencies, the Company exposes itself to credit risk and market risk. Credit risk is the risk that the counterparty will fail to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty, and therefore, it does not face any credit risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with major financial institutions.

Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates, currency exchange rates, or commodity prices. The market risk associated with interest rate and forward exchange contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the Company records the effective portion of the gain or loss in accumulated other comprehensive income (loss) as a separate component of shareholders' equity. The Company subsequently reclassifies the effective portion of gain or loss into earnings in the period during which the hedged transaction is recognized in earnings.

The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt. In the second quarter of 2018, the Company entered into a floating to fixed interest rate swap for a notional amount of $150 million. The fair value of this swap is a liability of ~~$6.3~~$4.0 million at December 31, ~~2019~~2021 and is recorded in other non-current liabilities on the Consolidated Balance Sheet. ~~In addition, in the second quarter of 2016, the Company entered into a floating to fixed~~This interest rate swap ~~for an initial aggregate notional amount of $300 million. The notional amount at December 31, 2019 was $86 million. The fair value of this swap~~ is ~~an asset of $0.4 million at December 31, 2019 and is recorded in other assets and deferred charges on the Consolidated Balance Sheet. These interest rate swaps are~~ designated as a cash flow ~~hedges. The~~hedge. As a result, the gains and losses associated with ~~these~~this interest rate ~~swaps are~~swap is recorded in accumulated other comprehensive income (loss).

Net Investment Hedges

To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, the Company from time to time hedges a portion of our net investment in ~~one~~1 or more of our foreign subsidiaries. During the second quarter of 2018, the Company entered into a cross currency rate swap with a total notional value of $150 million to exchange monthly fixed-rate interest payments in U.S. dollars for monthly fixed-rate interest rate payments in Euros. This contract matures in May 2023 and requires the exchange of Euros and U.S. dollar principal payments upon maturity. The fair value of this swap is an asset of ~~$10.2~~$8.2 million at December 31, ~~2019~~2021 and is recorded in other assets and deferred charges on the Consolidated Balance Sheet. Changes in the fair value of this instrument are recognized in accumulated other comprehensive income (loss) to offset the change in the carrying amount of the net investment being hedged. Amounts are reclassified out of accumulated other comprehensive income (loss) into earnings when the hedged net investment is either sold or substantially liquidated.

~~F-25~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Other

The Company is exposed to potential gains or losses from foreign currency fluctuations affecting net investments and earnings denominated in foreign currencies. The Company is particularly sensitive to currency exchange rate fluctuations for the following currencies: British pound sterling (GBP), Chinese renminbi ~~(CYN)~~(CNY), Euro, Malaysian ringgit (MYR), Polish zloty (PLN), South African Rand (ZAR), Thai baht (THB) and Turkish lira (TRY). When considered appropriate, the Company enters into foreign exchange derivative contracts to mitigate the risk of fluctuations on these exposures. The Company does not designate these contracts for hedge accounting treatment and the changes in fair value of these contracts are recorded in earnings. The Company recorded losses (gains) of ~~$2.1~~$0.7 million, $0.2 million and ~~$(0.7)~~$2.1 million in other non-operating income (deductions), net within the Consolidated Statements of Income for the years ended ~~2019~~2021, 2020 and ~~2018,~~2019 respectively. There were 0 open contracts at December 31, ~~2019~~2021 and December 31, ~~2018.~~2020.

F-23

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 13. Fair Value of Financial Instruments

Fair value is an exchange price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. The Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Assets and liabilities measured at fair value are based on one or more of three valuation techniques. The three valuation techniques are as follows:

●

Market approach – prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

●

Cost approach – amount that would be required to replace the service capacity of an asset or replacement cost.

●

Income approach – techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing and other models.

The Company primarily applies the income approach for foreign exchange derivatives for recurring fair value measurements and attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The following table sets forth by level within the fair value hierarchy the Company's financial assets and liabilities accounted for at fair value on a recurring basis at the end of each of the past two years. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

(millions of dollars) Fair Value Measurements Using

Asset /
(Liability)
Balance at

Quoted Prices in
Active Markets for
Identical Assets

Significant
Other Observable
Inputs

Significant
Unobservable
Inputs

Description December 31, 2019 (Level 1) (Level 2) (Level 3)
Deferred compensation plan assets $ 13.7 $ — $ 13.7 $ —

Supplementary pension plan assets 12.8 — 12.8 —

Cross currency rate swap 10.2 — 10.2 —

Interest rate swaps (5.9 ) — (5.9 ) —

(millions of dollars)				Fair Value Measurements Using
	Asset / (Liability) Balance at			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs			Significant Unobservable Inputs
Description	December 31, 2021			(Level 1)		(Level 2)			(Level 3)
Deferred compensation plan assets	$	14.6		$	0	$	14.6		$	0

Supplementary pension plan assets		16.8			0		16.8			0

Cross currency rate swap		8.2			0		8.2			0

Interest rate swaps		(4.0	)		0		(4.0	)		0

				Fair Value Measurements Using
	Asset / (Liability) Balance at			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs			Significant Unobservable Inputs
Description	December 31, 2020			(Level 1)		(Level 2)			(Level 3)
Deferred compensation plan assets	$	14.2		$	0	$	14.2		$	0

Supplementary pension plan assets		15.0			0		15.0			0

Cross currency rate swap		0.4			0		0.4			0

Interest rate swaps		(7.6	)		0		(7.6	)		0

~~F-26~~F-24

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements Using

Asset /
(Liability)
Balance at

Quoted Prices in
Active Markets for
Identical Assets

Significant
Other Observable
Inputs

Significant
Unobservable
Inputs

Description December 31, 2018 (Level 1) (Level 2) (Level 3)
Deferred compensation plan assets $ 12.6 $ — $ 12.6 $ —

Supplementary pension plan assets 10.8 — 10.8 —

Cross currency rate swap 3.7 — 3.7 —

Interest rate swaps 0.3 — 0.3 —

~~The fair value of investment in the money market funds is determined by quoted prices in active markets and is categorized as Level 1.~~

The fair value of foreign exchange contracts is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and are categorized as Level 2. Deferred compensation and supplementary pension plan assets related to the acquisition of AMCOL businesses and are valued using quoted prices for similar assets in active markets.

The Company does not have any financial assets or liabilities measured at fair value on a recurring basis categorized as Level 3, except for pension assets discussed in Note 16, and there were 0 transfers in or out of Level 3 during the year ended December 31, ~~2019~~2021 and ~~2018.~~2020. There were also no changes to the Company's valuation techniques used to measure asset and liability fair values on a recurring basis.

Note 14. Financial Instruments and Concentrations of Credit Risk

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash and cash equivalents, short-term investments, accounts receivable and payable: The carrying amounts approximate fair value because of the short maturities of these instruments.

Short-term debt and other liabilities: The carrying amounts of short-term debt and other liabilities approximate fair value because of the short maturities of these instruments.

Long-term debt: The fair value of the long-term debt of the Company is estimated based on the quoted market prices for that debt or similar debt and approximates the carrying amount.

Forward exchange contracts: The fair value of forward exchange contracts (used for hedging purposes) is based on information derived from active markets. If appropriate, the Company would enter into forward exchange contracts to mitigate the impact of foreign exchange rate movements on the Company's operating results. It does not engage in speculation. Such foreign exchange contracts would offset losses and gains on the assets, liabilities and transactions being hedged.

Credit risk: The Company provides credit to customers in the ordinary course of business. The Company’s customer base is diverse and includes customers located throughout the world. Credit risk results from the possibility that a loss may occur from the failure of another party to perform according to the terms of the contracts. The Company regularly monitors its credit risk exposures and takes steps to mitigate the likelihood of these exposures resulting in an actual loss. The Company's extension of credit is based on an evaluation of the customer's financial condition and collateral is generally not required.

~~F-27~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The Company's bad debt expense for the years ended December 31, 2021, 2020 and 2019 ~~2018 and 2017~~ was ~~$6.3~~$0.9 million, ~~$3.2~~$2.6 million and ~~$3.8~~$6.3 million, respectively.

Note 15. Long-Term Debt and Commitments

The following is a summary of long-term debt:

	December 31,				December 31,
(millions of dollars)	2019		2018		2021		2020
Term Loan Facility- Variable Tranche due February 14, 2024, net of unamortized discount and deferred financing costs of $16.0 million and $19.4 million	$	642.0	$	638.6
Term Loan Facility- Fixed Tranche due May 9, 2021, net of unamortized discount and deferred financing costs of $0.2 million and $0.3 million	$	177.8	$	262.6
Netherlands Term Loan due 2020		1.1		3.4
Term Loan Facility- Variable Tranche due February 14, 2024, net of unamortized discount and deferred financing costs of $8.8 million and $12.4 million					$	539.2	$	535.6
Senior Notes due 2028, net of unamortized deferred financing costs of $5.4 million						394.6		393.9
Netherlands Term Loan due 2022		1.0		1.4		0.2		0.6
Japan Loan Facilities		4.5		5.1		3.0		4.1
Total	$	826.4	$	911.1	$	937.0	$	934.2
Less: Current maturities		2.1		3.3		0.8		1.0
Long-term debt	$	824.3	$	907.8	$	936.2	$	933.2

F-25

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On May 9, 2014, in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for a $1,560 million senior secured term loan facility (the “Term Facility”) and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”).

On June 23, 2015, the Company entered into an amendment (the “First Amendment”) to the credit agreement to reprice the $1.378 billion then outstanding on the Term Facility. As amended, the Term Facility had a $1.078 billion floating rate tranche and a $300 million fixed rate tranche. On February 14, 2017, the Company entered into an amendment (the “Second Amendment”) to the credit agreement to reprice the $788 million floating rate tranche then outstanding, which extended the maturity and lowered the interest costs by 75 basis points. On April 18, 2018, the Company entered into an amendment (the “Third Amendment”) to the credit agreement to refinance its then existing senior secured revolving credit facility. In connection with the ~~Revolving Facility. As amended,~~Third Amendment, the ~~Revolving Facility has been increased to~~existing senior secured revolving credit facility was replaced with a new revolving credit facility with $300 million inof aggregate ~~commitments.~~commitments (the "Revolving Credit Facility" and, together with the Term Facility, the "Senior Secured Credit Facilities"). Following the amendments, the loans outstanding under the floating rate tranche of the Term Facility ~~will~~are scheduled to mature on February 14, 2024, ~~the loans outstanding under the fixed rate tranche of the Term Facility will mature on May 9, 2021~~ and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on April 18, 2023. Loans under the fixed rate tranche of the Term Facility were repaid in full in June 2020. Loans under the floating rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 2.25% per annum. ~~Loans under the fixed rate tranche of the Term Facility bear interest at a rate of 4.75%.~~ Loans under the Revolving Facility bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.625% per annum. Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds. The floating rate tranche of the Term Facility was issued at par and the fixed rate tranche of the Term Facility was issued at a 0.25% discount in connection with the First Amendment. The variable rate tranche of the Term Facility was issued at a 0.25% discount in connection with the Second Amendment. The variable rate tranche has a 1% required amortization per year. The Company will pay certain fees under the credit agreement, including customary annual administration fees. The obligations of the Company under the Senior Secured Credit Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors.

~~F-28~~

~~MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to ~~$15~~$25 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of ~~initially, 5.25~~3.50 to 1.00 for the ~~four~~4 fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00. In connection with the Sivomatic acquisition, the Company incurred $113.0 million of short-term debt under the Revolving Facility. As of December 31, ~~2019,~~2021, there were ~~$100 million in~~80 outstanding loans and ~~$9.7~~$10.6 million in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with the Revolving Facility as of the end of the period covered by this report.

~~During 2019,~~On June 30, 2020, the Company ~~repaid $85~~issued $400 million onaggregate principal amount of 5.0% Senior Notes due 2028 (the "Notes"). The Notes were issued pursuant to an indenture, dated as of June 30, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. The Company used the net proceeds of its offering of the Notes to repay all of its outstanding loans under the fixed rate tranche of the Term ~~Facility.~~Facility, repay all of its outstanding borrowings under its Revolving Credit Facility, and the remainder for general corporate purposes.

The Notes bear an interest rate of 5.0% per annum payable semi-annually on January 1 and July 1 of each year, beginning on January 1, 2021. The Notes are unconditionally guaranteed on a senior unsecured basis by each of the Company's existing and future wholly owned domestic restricted subsidiaries that is a borrower under or that guarantees the Company's obligations under its Senior Secured Credit Facilities or that guarantees the Company's or any of the Company's wholly owned domestic subsidiaries' long-term indebtedness in an aggregate amount in excess of $50 million.

At any time and from time to time prior to July 1, 2023, the Company may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount, plus the “make-whole” premium described in the Indenture and accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. Beginning on July 1, 2023, the Company may redeem some or all of the Notes at any time and from time to time at the applicable redemption prices listed in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, at any time and from time to time prior to July 1, 2023, the Company may redeem up to 40% of the aggregate principal amount of the Notes with funds from 1 or more equity offerings at a redemption price equal to 105% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.

F-26

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The indenture contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions, as well as customary events of default.

As part of the Company's acquisition of Sivomatic, ~~acquisition,~~ the Company assumed $10.7 million in long-term debt, recorded at fair value, consisting of 2 term loans, ~~one~~1 of which ~~matures~~matured in the third quarter of 2020 and the other of which matures in ~~2022. These loans carry~~2022. The outstanding loan carries an interest rate of Euribor plus 2.0% and ~~have~~has quarterly repayments. During ~~2019,~~2021, the Company repaid ~~$2.6~~$0.4 million on ~~these loans.~~this loan.

The Company has a committed loan facility in Japan. As of December 31, ~~2019,~~2021, there was an outstanding balance of ~~$4.5~~$3.0 million on this facility. Principal will be repaid in accordance with the payment schedules ending in 2021. The Company repaid ~~$0.6~~$0.8 million on this loan in 2019. In 2019, the Company also repaid $2.2 million on committed loan facilities for the funding of new manufacturing facilities in China. As of December 31, 2019, the China facilities were repaid in full.2021.

As of December 31, ~~2019,~~2021, the Company had ~~$42.0~~$25.9 million in uncommitted short-term bank credit lines, NaN of which ~~approximately $1.2 million was~~were in use.

~~Short-term~~There were $80.0 million and 0 short-term borrowings as of December 31, ~~2019~~2021 and ~~2018 were $101.2 million and $105.2 million,~~2020, respectively. The weighted average interest rate on short-term borrowings outstanding as of December 31, ~~2019 and December 31, 2018~~2021 was ~~3.9% and 4.0%, respectively.~~1.8%.

The aggregate maturities of long-term debt are as follows: ~~$2.1~~$0.8 million in ~~2020; $182.3 million in 2021; $0.2 million in 2022, $—~~2022; $0.6 million in 2023; ~~$658.0~~$548.6 million in 2024, $0.6 million in 2025; $0.6 million in 2026 and $—$400.0 million thereafter.

During ~~2019, 2018~~2021, 2020 and ~~2017,~~2019, respectively, the Company incurred interest costs of $42.1 million, $40.7 million and $46.0 million, ~~$48.6~~including $1.5 million, $0.6 million and ~~$45.4 million, including~~ $0.6 ~~million, $0.5 million and $0.2~~ million, respectively, which were capitalized. Interest paid approximated the incurred interest cost.

Note 16. Benefit Plans

Pension Plans and Other Postretirement Benefit Plans

The Company and its subsidiaries have pension plans covering the majority of eligible employees on a contributory or non-contributory basis. Benefits under defined benefit plans are generally based on years of service and an employee's career earnings. Employees generally become fully vested after five years.

The Company also provides postretirement health care and life insurance benefits for the majority of its U.S. retired employees. Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. The Company does not pre-fund these benefits and has the right to modify or terminate the plan in the future.

The Company’s disclosures for the U.S. plans have been combined with those outside of the U.S. as the international plans do not have significantly different assumptions, and together represent less than ~~21%~~22% of our total benefit obligation.

Delaware		25-1190717
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

622 Third Avenue, 38^th38th Floor New York, New York		10017-6707
(Address of principal executive office)		(Zip Code)

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, ~~$.10~~$0.10 par value	MTX	New York Stock Exchange LLC

Large Accelerated Filer ☒	Accelerated Filer ☐	Emerging Growth Company ☐
Non-accelerated Filer ☐	Smaller Reporting ~~Company~~ ☐
~~Emerging Growth~~ Company ☐

Location	Facility	Product Line	Segment
United States
Alabama, Sandy Ridge	Plant; Mine	Metalcasting and specialty products	Performance Materials
Arizona, Phoenix	Plant	Pet care products	Performance Materials
Arizona, Pima County	Plant; Mine (1)	Limestone	Specialty Minerals
Arkansas, Ashdown	Plant	PCC	Specialty Minerals
California, Lucerne Valley	Plant; Mine	Limestone	Specialty Minerals
Connecticut, Canaan	Plant; Mine	Limestone, Metallurgical Wire/Calcium	Specialty Minerals; Refractories
Georgia, Cartersville	Plant	Environmental products and other building materials products	Performance Materials

		Page No.
PART I


Item 1.	Business	3

Item 1A.	Risk Factors	15

Item 1B.	Unresolved Staff Comments	2021

Item 2.	Properties	21

Item 3.	Legal Proceedings	2633

Item 4.	Mine Safety Disclosures	2733

PART II

Item 5.	Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	2935

Item 6.	~~Selected Financial Data~~ [Reserved]	3139

Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3239

Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	4750

Item 8.	Financial Statements and Supplementary Data	4852

Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	4852

Item 9A.	Controls and Procedures	4852

Item 9B.	Other Information	4852

Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	52

PART III

Item 10.	Directors, Executive Officers and Corporate Governance	4953

Item 11.	Executive Compensation	4953

Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	4953

Item 13.	Certain Relationships and Related Transactions, and Director Independence	4953

Item 14.	Principal Accountant Fees and Services	4953

PART IV

Item 15.	Exhibits and Financial Statement Schedules	5054

Signatures		5458

~~Location~~	~~Facility~~	~~Product Line~~	~~Segment~~
Thailand, Laemchabang	Plant	Metalcasting and fabric care products	Performance Materials
Thailand, Wangnoi	Plant	Pet Care Products	Performance Materials
Turkey, Enez	Plant; Mine	Metalcasting, specialty and basic minerals products	Performance Materials
Turkey, Gebze	Plant/Research Laboratories	Monolithic Refractories/Shapes/ Application Equipment	Refractories
Turkey, Istanbul	Sales Office/Administrative Office	Monolithic Refractories	Refractories
Turkey, Kutahya	Plant	Monolithic Refractories/Shapes	Refractories
Turkey, ~~Ordu~~Unye	Plant; Mine	Pet Care Products	Performance Materials
Turkey, Usak	Plant; Mine	Specialty material products	Performance Materials
United Kingdom, Aberdeen	Operations base (2)	Environmental products	Performance Materials
United Kingdom, Birkenhead	Research Laboratories (2)	Environmental products	Performance Materials
United Kingdom, Lifford	Plant	PCC, Lime	Specialty Minerals
United Kingdom, Rotherham	Plant/Sales Office	Monolithic Refractories/Shapes	Refractories
~~United Kingdom, Winsford~~	~~Plant/Research Laboratories~~	~~Fabric care and other products~~	~~Performance Materials~~

Location		Principal Customer
United States
Alabama, ~~Jackson~~		~~PCA Corporation~~
~~Alabama,~~ Selma		International Paper Company
Arkansas, Ashdown		Domtar Inc.
~~Maine, Jay~~Kentucky, Wickliffe		~~Verso~~Phoenix Paper ~~Holdings~~Wickliffe LLC
Michigan, Quinnesec		Verso Paper Holdings LLC
Minnesota, Cloquet		Sappi Ltd.
Minnesota, International Falls		PCA Corporation
New York, Ticonderoga		~~International Paper Company~~Sylvamo Corporation
Ohio, Chillicothe		~~P.H. Glatfelter Co./~~Pixelle Specialty Solutions
South Carolina, Eastover		~~International Paper Company~~Sylvamo Corporation
Washington, Longview		North Pacific Paper Corporation
~~Wisconsin, Superior~~		~~Verso Paper Holdings LLC~~
~~Wisconsin, Wisconsin Rapids~~		~~New Page Corporation~~

														Mining Claims																Proven and Probable Reserves (1)(2) Tons (000s)
	2019 Tons Usage (000s)		Total Tons of Reserves (000s)		Assigned Reserves (000s)			Unassigned Reserves** (000s)			Conversion Factor			Owned			Unpatented *			Leased			Proven Reserves (1)(2) Tons (000s)		Probable Reserves (1)(2) Tons (000s)		Conversion Factor (%)			Owned			Unpatented (3)			Leased
Limestone
Adams, MA		718		22,310		22,310			—			80	%		22,310			—			—			7,132		1,076		56	%		8,208			—			—
Canaan, CT		612		22,245		22,245			—			90	%		22,245			—			—			14,480		4,268		89	%		18,748			—			—
Lucerne Valley, CA		1,043		39,719		39,719			—			95	%		39,719			—			—			31,066		9,143		95	%		40,209			—			—
Pima County, AZ		170		7,699		7,699			—			90	%		7,699			—			—			7,357		—		90	%		—			7,357			—
Total Limestone		2,543		91,973		91,973			—						91,973			—			—			60,035		14,487					67,165			7,357			—
						100	%		0	%					100	%		0	%		0	%									90	%		10	%		0	%
Talc
Dillon, MT		167		2,574		2,574			—			85	%		2,574			—			—			973		541		80	%		1,045			—			469
						100	%		0	%					100	%		0	%		0	%									69	%		0	%		31	%
Sodium Bentonite
Australia		97		1,073		1,073			—			80	%								1,073			—		945		80	%		—			—			945
Belle/Colony, WY/SD		1,458		63,610		63,610			—			77	%		3,591			12,141			47,878			32,708		23,399		77	%		3,044			12,496			40,567
Lovell, WY		647		36,148		36,148			—			86	%		16,786			15,593			3,769			31,893		2,534		87	%		16,257			13,996			4,174
Other SD, WY, MT				72,831		—			72,831			79	%		54,815			15,048			2,968			43,117		29,714		77	%		54,815			15,048			2,968
Total Sodium Bentonite		2,202		173,662		100,831			72,831						75,192			42,782			55,688			107,718		56,592					74,116			41,540			48,654
						58	%		42	%					43	%		25	%		32	%									45	%		25	%		30	%
Calcium Bentonite
Chao Yang, Liaoning, China		27		1,623		1,623			—			78	%								1,623			—		784		78	%		—			—			784
Nevada		1		1,559		1,059			500			76	%		1,015			44			500			—		1,057		75	%		1,013			44			—
Sandy Ridge, AL		76		6,450		6,450			—			75	%		1,839						4,611			4,492		1,841		75	%		1,839			—			4,494
Turkey, Enez//Usak		220		3,396		3,396			—			77	%								3,396
Turkey, Enez																								210		1,942		78	%		—			—			2,152
Turkey, Usak																								98		731		43	%		—			—			829
Turkey, Unye		215		4,535		4,535			—			80	%								4,535			833		5,207		80	%		—			—			6,040
Total Calcium Bentonite		539		17,563		17,063			500						2,854			44			14,665			5,633		11,562					2,852			44			14,299
						97	%		3	%					16	%		0	%		84	%									17	%		—			83	%
Leonardite
Gascoyne, ND		44		2,408		2,408			—			72	%		—			2,019			389			120		2,237		67	%		—			2,237			120
						100	%		0	%								84	%		16	%									0	%		95	%		5	%
Chromite
South Africa		—		3,494		3,494			—			75	%		—			—			3,494			2,113		1,381		75	%		—			—			3,494
						100	%		0	%					0	%		0	%		100	%									0	%		0	%		100	%
Other
Nevada**		—		2,997		0	%		2,997			80	%					2,997			—
						—			100	%					0	%		100	%		0	%

GRAND TOTALS		5,495		294,671		218,343			76,328						172,593			47,842			74,236			176,592		86,800					145,178			51,178			67,036
						74	%		26	%					59	%		16	%		25	%									55	%		19	%		26	%

	Year Ended December 31,
(in millions)	2019		2018		2017		2016		2015
Working capital	$	520.7	$	494.4	$	542.2	$	455.6	$	485.0
Total assets		3,112.6		3,087.1		2,970.4		2,863.4		2,980.0
Long-term debt, net of unamortized discount and deferred financing costs		824.3		907.8		959.8		1,069.9		1,255.3
Total debt		927.6		1,016.3		969.9		1,082.8		1,264.9
Total shareholders' equity		1,434.6		1,385.3		1,279.1		1,030.9		937.7

	Payments Due by Period
(millions of dollars)	Total		2020			2021– 2022		2023– 2024	After 2024
Long-term debt	$	842.6	$	2.1	$	182.5	$	658.0	$	—
Interest related to long term debt		127.3		36.2		58.9		32.2		—
Estimated pension and post retirement plan funding		23.4		11.7		11.7		—		—
Operating lease obligations		66.8		14.3		19.2		11.8		21.4
Repatriation tax liability		20.4		—		2.4		10.5		7.5
Other long term liabilities		23.9		0.4		—		—		23.5
Total contractual obligations	$	1,104.4	$	64.7	$	274.7	$	712.5	$	52.4

(millions of dollars)	Discount Rate			Salary Scale			Return on Asset
1% increase	$	(4.7	)	$	0.5		$	(2.1	)
1% decrease	$	5.9		$	(1.4	)	$	2.9

(millions of dollars)	December 31, 2018		December 31, 2017

Rent expense	$	19.5	$	19.3

(millions of dollars)
Restructuring liability, December 31, 2018	$	2.5
Additional provisions		5.7
Cash payments		(3.2	)
Other		—
Restructuring liability, December 31, 2019	$	5.0

	Pension Benefits						Post-Retirement Benefits						Pension Benefits						Post-Retirement Benefits
(millions of dollars)	2019			2018			2019			2018			2021			2020			2021			2020
Change in benefit obligations:
Beginning projected benefit obligation	$	416.3		$	469.5		$	5.7		$	6.9		$	534.3		$	484.4		$	4.6		$	5.9
Service cost		6.8			8.1			0.2			0.2			7.7			7.7			0.1			0.2
Interest cost		14.0			13.0			0.2			0.2			7.9			10.5			0.1			0.2
Actuarial (gain)/loss		63.9			(40.5	)		0.3			(1.5	)		(23.8	)		56.5			(0.3	)		(1.3	)
Benefits paid		(18.6	)		(12.2	)		(0.5	)		(0.1	)		(12.4	)		(12.3	)		(0.5	)		(0.4	)
Settlements		(0.5	)		(17.1	)		—			—			(16.3	)		(18.4	)		(1.6	)		0
Foreign exchange impact		2.1			(5.1	)		—			—			(2.7	)		5.5			(0.1	)		0
Other		0.4			0.6			—			—			0.3			0.4			0			0
Ending projected benefit obligation		484.4			416.3			5.9			5.7			495.0			534.3			2.3			4.6

Change in plan assets:
Beginning fair value		296.7			320.2			—			—			358.2			340.0			0			0
Actual return on plan assets		52.4			(13.6	)		—			—			44.0			31.1			0			0
Employer contributions		7.7			24.2			0.5			0.1			10.7			11.8			0.5			0.4
Plan participants' contributions		0.4			0.4			—			—			0.3			0.3			0			0
Benefits paid		(18.6	)		(12.2	)		(0.5	)		(0.1	)		(12.4	)		(12.2	)		(0.5	)		(0.4	)
Settlements		(0.2	)		(18.2	)		—			—			(17.1	)		(16.9	)		0			0
Foreign exchange impact		1.6			(4.1	)		—			—			(2.3	)		4.1			0			0
Ending fair value		340.0			296.7			—			—			381.4			358.2			0			0

Funded status of the plan	$	(144.4	)	$	(119.6	)	$	(5.9	)	$	(5.7	)
Funded status													$	(113.6	)	$	(176.1	)	$	(2.3	)	$	(4.6	)

Location		Principal Customer
International
Brazil, Guaiba		CMPC - Celulose Rio Grandense
Brazil, Jacarei		Munksjo Brasil Ind e Com de Papeis Especiais Ltda.
Brazil, Luiz Antonio		International Paper do Brasil Ltda.
Brazil, Mucuri		Suzano Papel e Celulose S. A.
Brazil, Suzano		Suzano Papel e Celulose S. A.
Canada, St. Jerome, Quebec		Les Entreprises Rolland Inc
Canada, Windsor, Quebec		Domtar Inc.
China, Changshu		UPM Changshu
China, Dagang (1)		Gold East Paper (Jiangsu) Company Ltd.
China, Zhenjiang (1)		Gold East Paper (Jiangsu) Company Ltd.
China, Suzhou (1)		Gold HuaSheng Paper Company Ltd.
China, Henan		Henan Jianghe Paper Co., Ltd.
China, Shandong		Shandong Sun Paper Industry Joint Stock Company Ltd
China, Shouguang ~~(2)~~(1)		Shandong Meilun Paper Corporation
China, Yanzhou		Yanzhou Tianzhang Paper Industry Co., LTD
China, Zhumadian(2)		Zhumadianshi Baiyun Paper
Finland, Äänekoski		Metsa Board Corporation
Finland, Tervakoski		Delfort
France, Alizay		Double A Paper Company Ltd.
France, Quimperle		PDM Industries
France, Saillat Sur Vienne		International Paper Company
Germany, Schongau		UPM Corporation
India, Ballarshah (1)		Ballarpur Industries Ltd.
India, Dandeli		West Coast Paper Mill Ltd.
India, Erode (2)		SPB
India, Gaganapur (1)		Ballarpur Industries Ltd.
India, Kala Amb ~~(2)~~		Ruchira Papers Limited
India, ~~Lalkuan(2)~~Lalkuan		Century Papers Ltd.
India, Saila Khurd		Kuantum Papers Ltd.
India, Rayagada (1)		JK Paper
India, Mukstar		Satia Industries Ltd.
Indonesia, Perawang (1)		PT Indah Kiat Pulp and Paper Corporation
Indonesia, Perawang 2 ~~(2)~~(1)		PT Indah Kiat Pulp and Paper Corporation
Japan, Shiraoi (1)		Nippon Paper Group Inc.
Malaysia, Sipitang		Ballarpur Industries Ltd.
Poland, Kwidzyn		International Paper – Kwidzyn, S.A
Portugal, Figueira da Foz (1)		Navigator Paper Figueira, S.A.
Slovakia, Ruzomberok		Mondi Business Paper SCP

	U.S. Plans									International Plans
(millions of dollars)	2019			2018			2017			2019			2018			2017
Fair value of plan assets		$	261.5		$	227.1		$	241.9		$	78.5		$	69.6		$	78.3

(millions of dollars)
Beginning balance at December 31, 2017	$	24.7
Beginning balance at December 31, 2019				$	21.0
Purchases, sales, settlements		—			0
Actual return on plan assets still held at reporting date		(4.4	)		(12.8	)
Foreign exchange impact		(0.3	)		0.1
Ending balance at December 31, 2018	$	20.0
Ending balance at December 31, 2020				$	8.3
Purchases, sales, settlements		—			0
Actual return on plan assets still held at reporting date		0.9			(2.3	)
Foreign exchange impact		0.1			0
Ending balance at December 31, 2019	$	21.0
Ending balance at December 31, 2021				$	6.0

(millions of dollars)	Pension Benefits		Other Benefits		Pension Benefits		Other Benefits
2020	$	25.0	$	0.4
2021	$	25.3	$	0.4
2022	$	27.0	$	0.4	$	24.1	$	0.2
2023	$	27.2	$	0.5	$	25.9	$	0.2
2024	$	27.0	$	0.5	$	26.3	$	0.2
2025-2029	$	134.1	$	2.3
2025					$	26.1	$	0.2
2026					$	26.6	$	0.2
2027-2031					$	130.0	$	0.8

				Stock Options					Restricted Shares
	Shares Available for Grant			Shares			Weighted Average Exercise Price per Share ($)		Shares			Weighted Average Exercise Price per Share ($)
Balance January 1, 2016		1,202,426			1,198,725		$	41.66		227,213		$	49.57
Granted		(257,072	)		187,533			77.99		69,539			78.00
Exercised/vested		—			(353,636	)		41.56		(61,274	)		52.51
Canceled		91,151			(35,783	)		50.47		(55,368	)		52.74
Balance December 31, 2017		1,036,505			996,839			48.21		180,110			58.57
Granted		(260,508	)		191,147			76.09		69,361			76.26
Exercised/vested		—			(98,945	)		33.83		(59,649	)		56.44
Canceled		90,026			(34,782	)		65.47		(55,244	)		58.57
Balance December 31, 2018		866,023			1,054,259			54.04		134,578			68.64
Granted		(388,162	)		271,261			54.44		116,901			54.51
Exercised/vested		—			(79,686	)		27.26		(40,776	)		60.79
Canceled		51,181			(18,214	)		66.93		(32,967	)		61.87
Balance December 31, 2019		529,042			1,227,620		$	55.83		177,736		$	62.40

	2019 Quarters
(millions of dollars, except per share data)	First		Second		Third		Fourth
Net sales by segment
Performance Materials segment	$	199.2	$	215.4	$	207.3	$	201.4
Specialty Minerals segment		144.4		145.1		143.1		141.8
Refractories segment		73.8		77.5		73.4		73.4
Energy Services segment		20.3		25.8		25.5		23.6
Net sales		437.7		463.8		449.3		440.2

Gross profit		109.7		112.0		111.2		107.7

Income from operations		62.0		45.5		53.5		47.7

Consolidated net income		40.0		27.6		39.1		29.6

Net income attributable to Minerals Technologies Inc. (MTI)		39.1		26.6		38.0		29.0

Basic earnings per share attributable to MTI shareholders	$	1.11	$	0.76	$	1.09	$	0.83

Diluted earnings per share attributable to MTI shareholders	$	1.11	$	0.75	$	1.08	$	0.83

Market price range per share of common stock:
High	$	61.01	$	63.20	$	55.33	$	58.12
Low	$	49.47	$	51.78	$	45.55	$	48.92
Close	$	58.79	$	53.51	$	52.77	$	57.63

Dividends paid per common share	$	0.05	$	0.05	$	0.05	$	0.05

	2018 Quarters
(millions of dollars, except per share data)	First		Second		Third		Fourth
Net sales by segment
Performance Materials segment	$	187.3	$	214.5	$	219.5	$	206.8
Specialty Minerals segment		149.6		150.9		146.3		142.5
Refractories segment		75.3		79.6		79.1		77.9
Energy Services segment		19.1		19.7		19.2		20.3
Net sales		431.3		464.7		464.1		447.5

Gross profit		113.5		115.9		119.2		112.8
							��
Income from operations		62.6		62.8		68.2		62.3

Consolidated net income		41.1		45.2		42.9		44.0

Net income attributable to MTI		39.9		44.1		41.9		43.1

Basic earnings per share attributable to MTI shareholders	$	1.13	$	1.25	$	1.19	$	1.22

Diluted earnings per share attributable to MTI shareholders	$	1.12	$	1.24	$	1.18	$	1.22

Market price range per share of common stock:
High	$	76.95	$	76.40	$	77.75	$	67.65
Low	$	66.10	$	65.10	$	65.75	$	47.89
Close	$	66.95	$	75.35	$	67.60	$	51.34

Dividends paid per common share	$	0.05	$	0.05	$	0.05	$	0.05

/s/ Douglas T. Dietrich Chairman of the Board and Chief Executive Officer		/s/ Matthew E. Garth Senior Vice President, Finance and Treasury, Chief Financial Officer

/s/ Michael A. Cipolla Vice President, Corporate Controller and Chief Accounting Officer

Description	Balance at Beginning of Period		Additions Charged to Costs, Provisions and Expenses		Deductions (a)			Balance at End of Period		Balance at Beginning of Period		Additions Charged to Costs, Provisions and Expenses		Deductions (a)			Balance at End of Period
Year Ended December 31, 2021
Valuation and qualifying accounts deducted from assets to which they apply:
Allowance for doubtful accounts										$	15.0		0.9		(0.9	)	$	15.0
Year Ended December 31, 2020
Valuation and qualifying accounts deducted from assets to which they apply:
Allowance for doubtful accounts										$	12.9		2.6		(0.5	)	$	15.0
Year Ended December 31, 2019
Valuation and qualifying accounts deducted from assets to which they apply:
Allowance for doubtful accounts	$	3.2		6.3		3.4		$	12.9	$	3.2		6.3		3.4		$	12.9
Year Ended December 31, 2018
Valuation and qualifying accounts deducted from assets to which they apply:
Allowance for doubtful accounts	$	4.2		3.2		(4.2	)	$	3.2
Year Ended December 31, 2017
Valuation and qualifying accounts deducted from assets to which they apply:
Allowance for doubtful accounts	$	7.9		3.8		(7.5	)	$	4.2