Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 1-13879 | |
Entity Registrant Name | INNOSPEC INC. | |
Entity Central Index Key | 0001054905 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0181725 | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 303 | |
Local Phone Number | 792 5554 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common stock | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,560,830 | |
Entity Address, Address Line One | 8310 South Valley Highway | |
Entity Address, Address Line Two | Suite 350 | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Trading Symbol | IOSP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 372.3 | $ 388.3 |
Cost of goods sold | (258.4) | (270.5) |
Gross profit | 113.9 | 117.8 |
Operating expenses: | ||
Selling, general and administrative | (64.4) | (72.5) |
Research and development | (8.6) | (9.1) |
Total operating expenses | (73) | (81.6) |
Operating income | 40.9 | 36.2 |
Other income, net | 3.9 | 4.1 |
Interest expense, net | (0.6) | (1.5) |
Income before income tax expense | 44.2 | 38.8 |
Income tax expense | (11.1) | (10.1) |
Net income | $ 33.1 | $ 28.7 |
Earnings per share: | ||
Basic | $ 1.35 | $ 1.17 |
Diluted | $ 1.34 | $ 1.17 |
Weighted average shares outstanding (in thousands): | ||
Basic | 24,529 | 24,437 |
Diluted | 24,742 | 24,594 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 33.1 | $ 28.7 |
Changes in cumulative translation adjustment, net of tax of $1.6 million and $0.4 million respectively | (7.9) | (5) |
Changes in unrealized gains on derivative instruments, net of tax of $0.0 million and $0.1 million respectively | 0 | (0.5) |
Amortization of prior service credit, net of tax of $0.0 million and $0.0 million respectively | (0.2) | (0.2) |
Amortization of actuarial net losses, net of tax of $0.0 million and $0.0 million respectively | 0.2 | 0 |
Total other comprehensive loss | (7.9) | (5.7) |
Total comprehensive income | $ 25.2 | $ 23 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Changes in cumulative translation adjustment, tax | $ 1.6 | $ 0.4 |
Unrealized gains on derivative instruments, tax | 0 | 0.1 |
Amortization of prior service credit, tax | 0 | 0 |
Amortization of actuarial net losses, tax | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 68.1 | $ 75.7 |
Trade and other accounts receivable (less allowances of $3.8 million and $3.8 million respectively) | 296.3 | 292 |
Inventories (less allowances of $14.7 million and $14.5 million respectively): | ||
Finished goods | 171.8 | 173.9 |
Raw materials | 74.2 | 70.7 |
Total inventories | 246 | 244.6 |
Prepaid expenses | 11.6 | 14.7 |
Prepaid income taxes | 4.7 | 2.5 |
Other current assets | 0 | 0.8 |
Total current assets | 626.7 | 630.3 |
Net property, plant and equipment | 197.8 | 198.7 |
Operating lease right-of-use assets | 31.7 | 32.4 |
Goodwill | 361.2 | 363 |
Other intangible assets | 107.1 | 113.5 |
Deferred tax assets | 8.8 | 9.1 |
Pension asset | 117.3 | 115.9 |
Other non-current assets | 4.7 | 5.9 |
Total assets | 1,455.3 | 1,468.8 |
Current liabilities: | ||
Accounts payable | 108.4 | 122 |
Accrued liabilities | 127.9 | 154 |
Current portion of finance leases | 0.8 | 1 |
Current portion of plant closure provisions | 5.6 | 5.6 |
Current portion of accrued income taxes | 12.3 | 10.3 |
Current portion of operating lease liabilities | 11.1 | 10.6 |
Total current liabilities | 266.1 | 303.5 |
Long-term debt | 58.7 | 58.6 |
Finance leases, net of current portion | 0.4 | 0.5 |
Plant closure provisions, net of current portion | 43.7 | 43.7 |
Accrued income taxes, net of current portion | 36.2 | 36.2 |
Unrecognized tax benefits | 16.4 | 16.4 |
Operating lease liabilities, net of current portion | 20.7 | 21.9 |
Deferred tax liabilities | 49.9 | 49.6 |
Pension liabilities and post-employment benefits | 17.4 | 17.8 |
Other non-current liabilities | 1.5 | 1.7 |
Equity: | ||
Common stock, $0.01 par value, authorized 40,000,000 shares, issued 29,554,500 shares | 0.3 | 0.3 |
Additional paid-in capital | 331.2 | 330.4 |
Treasury stock (4,993,670 and 5,047,278 shares at cost, respectively) | (94) | (93.3) |
Retained earnings | 788.6 | 755.5 |
Accumulated other comprehensive loss | (82.3) | (74.4) |
Total Innospec stockholders' equity | 943.8 | 918.5 |
Non-controlling interest | 0.5 | 0.4 |
Total equity | 944.3 | 918.9 |
Total liabilities and equity | $ 1,455.3 | $ 1,468.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 3.8 | $ 3.8 |
Inventory allowances | $ 14.7 | $ 14.5 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 29,554,500 | 29,554,500 |
Treasury stock, shares | 4,993,670 | 5,047,278 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 33.1 | $ 28.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12 | 11.6 |
Deferred tax expense | 0.7 | 0.2 |
Cash contributions to defined benefit pension plans | 0 | (0.3) |
Non-cash movements on defined benefit pension plans | (1.2) | (1.6) |
Stock option compensation | 1.2 | 1.6 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Trade and other accounts receivable | (7.9) | (18.5) |
Inventories | (5) | (1.8) |
Prepaid expenses | 2.1 | (0.1) |
Accounts payable and accrued liabilities | (36) | (10.9) |
Accrued income taxes | 1.6 | 4.4 |
Plant closure provisions | 0.1 | 0.4 |
Unrecognized tax benefits | 0 | 0.3 |
Other assets and liabilities | 1.7 | (0.8) |
Net cash provided by operating activities | 2.4 | 13.2 |
Cash Flows from Investing Activities | ||
Capital expenditures | (7.8) | (10.7) |
Internally developed software | 0 | (0.5) |
Net cash used in investing activities | (7.8) | (11.2) |
Cash Flows from Financing Activities | ||
Non-controlling interest | 0.1 | 0 |
Repayments of finance leases | (0.3) | (0.6) |
Issue of treasury stock | 0.7 | 1 |
Repurchase of common stock | (2.1) | (1.9) |
Net cash used in financing activities | (1.6) | (1.5) |
Effect of foreign currency exchange rate changes on cash | (0.6) | (0.1) |
Net change in cash and cash equivalents | (7.6) | 0.4 |
Cash and cash equivalents at beginning of period | 75.7 | 123.1 |
Cash and cash equivalents at end of period | $ 68.1 | $ 123.5 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Amortization of deferred finance costs | $ 0.1 | $ 0.2 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-Controlling Interest [Member] |
Beginning Balance at Dec. 31, 2018 | $ 825.5 | $ 0.3 | $ 324.9 | $ (92.8) | $ 668.3 | $ (75.7) | $ 0.5 |
Net income | 28.7 | 28.7 | |||||
Changes in cumulative translation adjustment, net of tax | (5) | (5) | |||||
Changes in unrealized gains on derivative instruments, net of tax | (0.5) | (0.5) | |||||
Treasury stock reissued | 0.7 | (0.5) | 1.2 | ||||
Treasury stock repurchased | (1.9) | (1.9) | |||||
Stock option compensation | 1.6 | 1.6 | |||||
Amortization of prior service credit, net of tax | (0.2) | (0.2) | |||||
Amortization of actuarial net losses, net of tax | 0 | 0 | |||||
Ending Balance at Mar. 31, 2019 | 848.9 | 0.3 | 326 | (93.5) | 697 | (81.4) | 0.5 |
Beginning Balance at Dec. 31, 2019 | 918.9 | 0.3 | 330.4 | (93.3) | 755.5 | (74.4) | 0.4 |
Net income | 33.1 | 33.1 | |||||
Changes in cumulative translation adjustment, net of tax | (7.9) | (7.9) | |||||
Non-controlling interest investment | 0.1 | 0.1 | |||||
Changes in unrealized gains on derivative instruments, net of tax | 0 | ||||||
Treasury stock reissued | 1 | (0.4) | 1.4 | ||||
Treasury stock repurchased | (2.1) | (2.1) | |||||
Stock option compensation | 1.2 | 1.2 | |||||
Amortization of prior service credit, net of tax | (0.2) | (0.2) | |||||
Amortization of actuarial net losses, net of tax | 0.2 | 0.2 | |||||
Ending Balance at Mar. 31, 2020 | $ 944.3 | $ 0.3 | $ 331.2 | $ (94) | $ 788.6 | $ (82.3) | $ 0.5 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934. Accordingly, they do not include all the information and notes necessary for a comprehensive presentation of financial position, results of operations and cash flows. It is our opinion, however, that all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) have been made which are necessary for the condensed consolidated financial statements to be fairly stated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed on February 19, 2020 (the “2019 Form 10-K”). The results for the interim period covered by this report are not necessarily indicative of the results to be expected for the full year. When we use the terms “Innospec,” “the Corporation,” “the Company,” “Registrant,” “we,” “us” and “our,” we are referring to Innospec Inc. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires. Credit losses With an effective date of January 1, 2020, we have applied Accounting Standards Update (ASU) No. 2016-13, Financial Instruments — Credit Losses (ASC Topic 326). This replaces the incurred loss impairment methodology under previous GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard was adopted using prospective application and principally impacts the allowance for trade and other accounts receivables. Upon adoption, there was no adjustment made to opening retained earnings as at January 1, 2020. As a result of implementing the standard, the Company did not recognize any material change to the allowance within trade and other accounts receivable as at January 1, 2020. Trade and other accounts receivable are shown net of a $3.8 million allowance at March 31, 2020. The allowance remains immaterial to the financial statements. The Company is exposed to credit losses primarily through sales of products. The Company’s expected loss allowance methodology for trade and other accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers’ receivables. Due to the short-term nature of such receivables, the estimate of accounts receivable amounts that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, a further allowance is included to account for the Company’s historic track record of credit losses, for balances which are not aged sufficiently to be considered under the aging based approach. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 2 – SEGMENT REPORTING The Company reports its financial performance based on the following four reportable segments: Fuel Specialties, Performance Chemicals, Oilfield Services and Octane Additives. The Fuel Specialties, Performance Chemicals and Oilfield Services segments operate in markets where we actively seek growth opportunities although their ultimate customers are different. The Octane Additives segment revenues may conclude in 2020 as our one remaining refinery customer transitions to unleaded fuel. The Company evaluates the performance of its segments based on operating income. The following tables analyze sales and other financial information by the Company’s reportable segments: Three Months Ended March 31 (in millions) 2020 2019 Net Sales: Refinery and Performance 108.6 $ 117.3 Other 38.4 38.7 Fuel Specialties 147.0 156.0 Personal Care 63.0 61.0 Home Care 21.6 27.0 Other 28.5 30.1 Performance Chemicals 113.1 118.1 Oilfield Services 112.2 114.2 $ 372.3 $ 388.3 Gross profit/(loss): Fuel Specialties $ 51.2 $ 55.7 Performance Chemicals 27.6 26.6 Oilfield Services 36.2 37.7 Octane Additives (1.1 ) (2.2 ) $ 113.9 $ 117.8 Operating income/(loss): Fuel Specialties $ 32.1 $ 32.9 Performance Chemicals 15.6 13.5 Oilfield Services 7.2 7.8 Octane Additives (1.2 ) (2.8 ) Corporate costs (12.8 ) (15.2 ) Total operating income $ 40.9 $ 36.2 The following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments: Three Months Ended (in millions) 2020 2019 Depreciation: Fuel Specialties $ 1.0 $ 0.9 Performance Chemicals 2.8 2.5 Oilfield Services 1.7 1.7 Octane Additives 0.3 0.3 Corporate 0.3 0.3 $ 6.1 $ 5.7 Amortization: Performance Chemicals 2.2 2.2 Oilfield Services 2.6 2.6 Corporate 1.0 0.9 $ 5.8 $ 5.7 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | NOTE 3 – EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the effect of options that are dilutive and outstanding during the period under the treasury stock method. Per share amounts are computed as follows: Three Months Ended 2020 2019 Numerator (in millions): Net income available to common stockholders $ 33.1 $ 28.7 Denominator (in thousands): Weighted average common shares outstanding 24,529 24,437 Dilutive effect of stock options and awards 213 157 Denominator for diluted earnings per share 24,742 24,594 Net income per share, basic: $ 1.35 $ 1.17 Net income per share, diluted: $ 1.34 $ 1.17 In the three months ended March 31, 2020, the average number of anti-dilutive options excluded from the calculation of diluted earnings per share was 17,636 (three months ended March 31, 2019 – 12,539). |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 4 – GOODWILL The following table summarizes the goodwill movements: (in millions) Gross Cost Accumulated Net Book Opening balance at January 1 $ 599.5 $ (236.5 ) $ 363.0 Exchange effect (1.8 ) 0.0 (1.8 ) Closing balance at March 31 $ 597.7 $ (236.5 ) $ 361.2 |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | NOTE 5 – OTHER INTANGIBLE ASSETS The following table summarizes the other intangible assets movements: (in millions) 2020 Gross cost at January 1 $ 294.8 Exchange effect (0.9 ) Gross cost at March 31 293.9 Accumulated amortization at January 1 (181.3 ) Amortization expense (5.8 ) Exchange effect 0.3 Accumulated amortization at March 31 (186.8 ) Net book amount at March 31 $ 107.1 The amortization expense for the three months ended March 31, 2020 was $5.8 million (three months ended March 31, 2019 – $5.7 million) . The net book amount by category of other intangible asset s (in millions) March 31 2020 December 31 2019 Product rights $ 9.1 $ 10.1 Brand names 2.7 2.9 Technology 31.7 32.6 Customer relationships 57.7 60.8 Internally developed software 5.9 7.1 $ 107.1 $ 113.5 |
Pension and Post-Employment Ben
Pension and Post-Employment Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Post-Employment Benefits | NOTE 6 – PENSION AND POST EMPLOYMENT BENEFITS The Company maintains a defined benefit pension plan (the “Plan”) covering a number of its current and former employees in the United Kingdom, although it does also have other much smaller pension arrangements in the U.S. and overseas. The Plan is closed to future service accrual but has a large number of deferred and current pensioners. The net service cost for the three months ended March 31, 2020 was $0.3 million (three months ended March 31, 2019 – $0.2 million) and has been recognized in selling, general and administrative expenses within corporate costs. The following table shows the income statement effect recognized within other income, net: Three Months Ended (in millions) 2020 2019 Plan net pension credit/(charge): Interest cost on projected benefit obligation $ (2.8 ) $ (3.9 ) Expected return on plan assets 4.5 5.6 Amortization of prior service credit 0.2 0.2 Amortization of actuarial net losses (0.2 ) 0.0 $ 1.7 $ 1.9 The amortization of prior service credit and actuarial net losses is a reclassification out of accumulated other comprehensive loss into other income and expense. The Company also maintains an unfunded defined benefit pension plan covering a number of its current and former employees in Germany (the “German plan”) within our Fuel Specialties segment. The German plan is closed to new entrants and has no assets. The net service cost for the German plan for the three months ended March 31, 2020 was $0.0 million (three months ended March 31, 2019 – $0.0 million) and has been recognized in selling, general and administrative expenses. The following table shows the income statement effect recognized within other income and expense: Three Months Ended (in millions) 2020 2019 Plan net pension charge: Interest cost on projected benefit obligation $ 0.0 $ (0.1 ) Amortization of actuarial net losses (0.2 ) (0.1 ) $ (0.2 ) $ (0.2 ) As at March 31, 2020, our Performance Chemicals segment has obligations for post-employment benefits in its European businesses with a liability of $4.5 million (December 31, 2019 – $4.5 million). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 – INCOME TAXES A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows: (in millions) Unrecognized Interest Total Opening balance at January 1 $ 14.4 $ 2.0 $ 16.4 Additions for tax positions of prior periods 0.0 0.0 0.0 Closing balance at March 31 14.4 2.0 16.4 Current 0.0 0.0 0.0 Non-current $ 14.4 $ 2.0 $ 16.4 All of the $16.4 million of unrecognized tax benefits, interest and penalties would impact our effective tax rate if recognized. As previously disclosed, a non-U.S. subsidiary, Innospec Performance Chemicals Italia Srl, is subject to an ongoing tax audit in relation to the period 2011 to 2014 inclusive. The Company has determined that additional tax, interest and penalties totaling $3.1 million may arise as a consequence of the tax audit. This includes a reduction in interest accrued of $0.2 million recorded in the three months to March 31, 2020. As any additional tax arising as a consequence of the tax audit would be reimbursed by the previous owner under the terms of the sale and purchase agreement, an indemnification asset of the same amount is recorded in the financial statements to reflect this arrangement. As previously disclosed, in 2018 the Company recorded an unrecognized tax benefit of $10.8 million which primarily relates to a potential adjustment that could arise as a consequence of the Tax Cuts and Jobs Act, but for which retrospective adjustment to the filed 2017 U.S. federal income tax returns was not permissible. The Company accrued a net increase in interest of $0.2 million in the three months to March 31, 2020 relating to this matter. The Company and its U.S. subsidiaries remain open to examination by the IRS for years 2016 onwards under the statute of limitations. The Company’s subsidiaries in foreign tax jurisdictions are open to examination including Germany (2015 onwards), Switzerland (2015 onwards), Spain (2016 onwards), France (2017 onwards) and the United Kingdom (2018 onwards). |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 8 – LONG-TERM DEBT Long-term debt consists of the following: (in millions) March 31, 2020 December 31, 2019 Revolving credit facility $ 60.0 $ 60.0 Deferred finance costs (1.3 ) (1.4 ) 58.7 58.6 Less current portion 0.0 0.0 $ 58.7 $ 58.6 |
Plant Closure Provisions
Plant Closure Provisions | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Plant Closure Provisions | NOTE 9 – PLANT CLOSURE PROVISIONS The Company has continuing plans to close some of its manufacturing facilities at sites around the world as and when those operations are expected to be decommissioned. The liability for estimated closure costs of Innospec’s manufacturing facilities includes costs for decontamination and environmental remediation activities (“remediation”). As a result, the principal site giving rise to remediation liabilities is the manufacturing site at Ellesmere Port in the United Kingdom. There are also remediation liabilities on a much smaller scale in respect of our other manufacturing sites in the U.S. and Europe. Movements in the provisions are summarized as follows: (in millions) 2020 Total at January 1 $ 49.3 Charge for the period 1.1 Utilized in the period (1.0 ) Exchange effect (0.1 ) Total at March 31 49.3 Due within one year (5.6 ) Due after one year $ 43.7 The charge for the three months ended March 31, 2020 was $1.1 million (three months ended March 31, 2019 – $1.0 million) Amounts due within one year refer to provisions where expenditure is expected to arise within one year of the balance sheet date. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 10 – FAIR VALUE MEASUREMENTS The following table presents the carrying amount and fair values of the Company’s financial assets and liabilities measured on a recurring basis: March 31, 2020 December 31, 2019 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets Non-derivatives: Cash and cash equivalents $ 68.1 $ 68.1 $ 75.7 $ 75.7 Derivatives (Level 1 measurement): Other current and non-current assets: Foreign currency forward exchange contracts 0.0 0.0 0.8 0.8 Liabilities Non-derivatives: Long-term debt (including current portion) $ 58.7 $ 58.7 $ 58.6 $ 58.6 Finance leases (including current portion) 1.2 1.2 1.5 1.5 Derivatives (Level 1 measurement): Other current and non-current liabilities: Foreign currency forward exchange contracts 1.3 1.3 0.0 0.0 Non-financial liabilities (Level 3 measurement): Other current and non-current liabilities Stock equivalent units 12.0 12.0 24.6 24.6 The following methods and assumptions were used to estimate the fair values of financial instruments: Cash and cash equivalents: Derivatives: Long-term debt and finance leases: Stock equivalent units: |
Derivative Instruments and Risk
Derivative Instruments and Risk Management | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Risk Management | NOTE 11 – DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT The Company enters into various foreign currency forward exchange contracts to minimize currency exchange rate exposure from expected future cash flows. As at March 31, 2020 the contracts have maturity dates of up to twelve months at the date of inception. These foreign currency forward exchange contracts have not been designated as hedging instruments, and their impact on the income statement for the first three months of 2020 was a gain of $1.9 million (first three months of 2019: gain of $0.2 million). As at March 31, 2020 and December 31, 2019 the Company did not hold any interest rate swaps. In prior years, the Company entered into interest rate swaps to minimize interest rate exposure related to a portion of its |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12 – COMMITMENTS AND CONTINGENCIES Legal matters While we are involved from time to time in claims and legal proceedings that result from, and are incidental to, the conduct of our business including business and commercial litigation, employee and product liability claims, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party, or of which any of their property is subject. It is possible, however, that an adverse resolution of an unexpectedly large number of such individual claims or proceedings could in the aggregate have a material adverse effect on the results of operations for a particular year or quarter. Guarantees The Company and certain of the Company’s consolidated subsidiaries are contingently liable for certain obligations of affiliated companies primarily in the form of guarantees of debt and performance under contracts entered into as a normal business practice. This includes guarantees of non-U.S. excise taxes and customs duties. As at March 31, 2020, such guarantees which are not recognized as liabilities in the condensed consolidated financial statements amounted to $4.6 million (December 31, 2019–$4.7 million). The remaining terms of the fixed maturity guarantees vary from 1 month to 4 years, with some further guarantees having no fixed expiry date. Under the terms of the guarantee arrangements, generally the Company would be required to perform should the affiliated company fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements have recourse provisions that would enable the Company to recover any payments made under the terms of the guarantees from securities held of the guaranteed parties’ assets. The Company and its affiliates have numerous long-term sales and purchase commitments in their various business activities, which are expected to be fulfilled with no adverse consequences material to the Company. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | NOTE 13 – STOCK-BASED COMPENSATION PLANS The Company grants stock options and stock equivalent units (“SEUs”) from time to time as a long-term performance incentive. In certain cases the grants are subject to performance conditions such as the Company’s stock price. Where performance conditions apply the Monte Carlo simulation model is used to determine the fair values. Otherwise the Black-Scholes model is used to determine the fair values. Stock option plans The following table summarizes the transactions of the Company’s stock option plans for the three months ended March 31, 2020: Number Weighted Weighted Outstanding at December 31, 2019 504,459 $ 33.05 $ 41.35 Granted – at discount 61,678 $ 0.00 $ 77.83 – at market value 10,419 $ 95.70 $ 18.69 Exercised (74,074 ) $ 9.11 $ 52.83 Forfeited (10,250 ) $ 13.80 $ 47.17 Outstanding at March 31, 2020 492,232 $ 34.24 $ 43.59 At March 31, 2020, there were 49,444 stock options that were exercisable, of which 12,519 had performance conditions attached. The stock option compensation cost for the first three months of 2020 was $1.2 million (first three months of 2019 – $1.6 million). The total intrinsic value of options exercised in the first three months of 2020 was $4.2 million (first three months of 2019 – $2.1 million). The total compensation cost related to non-vested stock options not yet recognized at March 31, 2020 was $11.9 million and this cost is expected to be recognized over the weighted-average period of 2.11 years. Stock equivalent units The following table summarizes the transactions of the Company’s SEUs for the three months ended March 31, 2020: Number Weighted Weighted Outstanding at December 31, 2019 390,816 $ 3.69 $ 59.91 Granted – at discount 103,607 $ 0.00 $ 77.33 – at market value 3,634 $ 95.70 $ 18.69 Exercised (81,557 ) $ 0.94 $ 60.35 Forfeited (9,536 ) $ 1.53 $ 58.85 Outstanding at March 31, 2020 406,964 $ 4.17 $ 63.92 At March 31, 2020 there were 63,196 SEUs that are exercisable, of which 56,664 had performance conditions attached. The charges for SEUs are spread over the life of the award subject to a revaluation to fair value each quarter. The revaluation may result in a charge or a credit to the income statement in the quarter dependent upon our share price and other performance criteria. The SEU compensation for the first three months of 2020 was $6.0 million credit (first three months of 2019 – $7.5 million charge). The total intrinsic value of SEUs exercised in the first three months of 2020 was $5.6 million (first three months of 2019 – $6.2 million). The weighted-average remaining vesting period of non-vested SEUs is 2.39 years. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Loss | NOTE 14 – RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS Reclassifications out of accumulated other comprehensive loss for the first quarter of 2020 were: (in millions) Details about AOCL Components Amount Affected Line Item in Defined benefit pension plan items: Amortization of prior service credit $ (0.2 ) See (¹) below Amortization of actuarial net losses 0.2 See (¹) below 0.0 Total before tax 0.0 Income tax expense Total reclassifications $ 0.0 Net of tax (1) These items are included in other income and expense. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information. Changes in accumulated other comprehensive loss for the first three months of 2020, net of tax, were: (in millions) Defined Cumulative Total Balance at December 31, 2019 $ (9.3 ) $ (65.1 ) $ (74.4 ) Other comprehensive income before reclassifications 0.0 (7.9 ) (7.9 ) Amounts reclassified from AOCL 0.0 0.0 0.0 Total other comprehensive income 0.0 (7.9 ) (7.9 ) Balance at March 31, 2020 $ (9.3 ) $ (73.0 ) $ (82.3 ) |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | NOTE 15 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326). As disclosed in the Basis of Preparation, the Company adopted this standard from January 1, 2020. In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Company’s disclosures. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 16 – RELATED PARTY TRANSACTIONS Mr. Patrick S. Williams has been an executive director of the Company since April 2009 and has been a non-executive director of AdvanSix, a chemicals manufacturer, since February 2020. In the first three months of 2020 the Company purchased product from AdvanSix for $0.1 million. As at March 31, 2020, the Company owed $0.0 million to AdvanSix. Mr. Robert I. Paller has been a non-executive director of the Company since November 1, 2009. The Company has retained and continues to retain Smith, Gambrell & Russell, LLP (“SGR”), a law firm with which Mr. Paller holds a position. In the first three months of 2020 the Company incurred fees from SGR of $0.1 million (first three months of 2019 – $0.2 million). As at March 31, 2020, the Company owed $0.0 million to SGR (December 31, 2019 – $0.0 million). Mr. David F. Landless has been a non-executive director of the Company since January 1, 2016 and is a non-executive director of Ausurus Group Limited which owns European Metal Recycling Limited (“EMR”). The Company has sold scrap metal to EMR in the first three months of 2020 for a value of $0.1 million (first three months of 2019 – $0.3 million). A tendering process is operated periodically to select the best buyer for the sale of scrap metal by the Company. As at March 31, 2020 EMR owed $0.1 million for scrap metal purchased from the Company (December 31, 2019 – $0.0 million). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | The Company evaluates the performance of its segments based on operating income. The following tables analyze sales and other financial information by the Company’s reportable segments: Three Months Ended March 31 (in millions) 2020 2019 Net Sales: Refinery and Performance 108.6 $ 117.3 Other 38.4 38.7 Fuel Specialties 147.0 156.0 Personal Care 63.0 61.0 Home Care 21.6 27.0 Other 28.5 30.1 Performance Chemicals 113.1 118.1 Oilfield Services 112.2 114.2 $ 372.3 $ 388.3 Gross profit/(loss): Fuel Specialties $ 51.2 $ 55.7 Performance Chemicals 27.6 26.6 Oilfield Services 36.2 37.7 Octane Additives (1.1 ) (2.2 ) $ 113.9 $ 117.8 Operating income/(loss): Fuel Specialties $ 32.1 $ 32.9 Performance Chemicals 15.6 13.5 Oilfield Services 7.2 7.8 Octane Additives (1.2 ) (2.8 ) Corporate costs (12.8 ) (15.2 ) Total operating income $ 40.9 $ 36.2 |
Summary of Segment Depreciation and Amortization | The following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments: Three Months Ended (in millions) 2020 2019 Depreciation: Fuel Specialties $ 1.0 $ 0.9 Performance Chemicals 2.8 2.5 Oilfield Services 1.7 1.7 Octane Additives 0.3 0.3 Corporate 0.3 0.3 $ 6.1 $ 5.7 Amortization: Performance Chemicals 2.2 2.2 Oilfield Services 2.6 2.6 Corporate 1.0 0.9 $ 5.8 $ 5.7 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | Per share amounts are computed as follows: Three Months Ended 2020 2019 Numerator (in millions): Net income available to common stockholders $ 33.1 $ 28.7 Denominator (in thousands): Weighted average common shares outstanding 24,529 24,437 Dilutive effect of stock options and awards 213 157 Denominator for diluted earnings per share 24,742 24,594 Net income per share, basic: $ 1.35 $ 1.17 Net income per share, diluted: $ 1.34 $ 1.17 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The following table summarizes the goodwill movements: (in millions) Gross Cost Accumulated Net Book Opening balance at January 1 $ 599.5 $ (236.5 ) $ 363.0 Exchange effect (1.8 ) 0.0 (1.8 ) Closing balance at March 31 $ 597.7 $ (236.5 ) $ 361.2 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | The following table summarizes the other intangible assets movements: (in millions) 2020 Gross cost at January 1 $ 294.8 Exchange effect (0.9 ) Gross cost at March 31 293.9 Accumulated amortization at January 1 (181.3 ) Amortization expense (5.8 ) Exchange effect 0.3 Accumulated amortization at March 31 (186.8 ) Net book amount at March 31 $ 107.1 |
Schedule of Amortization Expense | The net book amount by category of other intangible asset s (in millions) March 31 2020 December 31 2019 Product rights $ 9.1 $ 10.1 Brand names 2.7 2.9 Technology 31.7 32.6 Customer relationships 57.7 60.8 Internally developed software 5.9 7.1 $ 107.1 $ 113.5 |
Pension and Post-Employment B_2
Pension and Post-Employment Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
United Kingdom Plan [Member] | |
Plan Net Pension Credit | The following table shows the income statement effect recognized within other income, net: Three Months Ended (in millions) 2020 2019 Plan net pension credit/(charge): Interest cost on projected benefit obligation $ (2.8 ) $ (3.9 ) Expected return on plan assets 4.5 5.6 Amortization of prior service credit 0.2 0.2 Amortization of actuarial net losses (0.2 ) 0.0 $ 1.7 $ 1.9 |
German Plan [Member] | |
Plan Net Pension Credit | The following table shows the income statement effect recognized within other income and expense: Three Months Ended (in millions) 2020 2019 Plan net pension charge: Interest cost on projected benefit obligation $ 0.0 $ (0.1 ) Amortization of actuarial net losses (0.2 ) (0.1 ) $ (0.2 ) $ (0.2 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Roll-forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties | A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows: (in millions) Unrecognized Interest Total Opening balance at January 1 $ 14.4 $ 2.0 $ 16.4 Additions for tax positions of prior periods 0.0 0.0 0.0 Closing balance at March 31 14.4 2.0 16.4 Current 0.0 0.0 0.0 Non-current $ 14.4 $ 2.0 $ 16.4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: (in millions) March 31, 2020 December 31, 2019 Revolving credit facility $ 60.0 $ 60.0 Deferred finance costs (1.3 ) (1.4 ) 58.7 58.6 Less current portion 0.0 0.0 $ 58.7 $ 58.6 |
Plant Closure Provisions (Table
Plant Closure Provisions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Movements in Plant Closure and Restructuring Provisions | Movements in the provisions are summarized as follows: (in millions) 2020 Total at January 1 $ 49.3 Charge for the period 1.1 Utilized in the period (1.0 ) Exchange effect (0.1 ) Total at March 31 49.3 Due within one year (5.6 ) Due after one year $ 43.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Fair Values of the Company's Assets and Liabilities Measured on a Recurring Basis | The following table presents the carrying amount and fair values of the Company’s financial assets and liabilities measured on a recurring basis: March 31, 2020 December 31, 2019 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets Non-derivatives: Cash and cash equivalents $ 68.1 $ 68.1 $ 75.7 $ 75.7 Derivatives (Level 1 measurement): Other current and non-current assets: Foreign currency forward exchange contracts 0.0 0.0 0.8 0.8 Liabilities Non-derivatives: Long-term debt (including current portion) $ 58.7 $ 58.7 $ 58.6 $ 58.6 Finance leases (including current portion) 1.2 1.2 1.5 1.5 Derivatives (Level 1 measurement): Other current and non-current liabilities: Foreign currency forward exchange contracts 1.3 1.3 0.0 0.0 Non-financial liabilities (Level 3 measurement): Other current and non-current liabilities Stock equivalent units 12.0 12.0 24.6 24.6 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock Options Plan [Member] | |
Summary of Transactions of Company's Stock Option Plans | The following table summarizes the transactions of the Company’s stock option plans for the three months ended March 31, 2020: Number Weighted Weighted Outstanding at December 31, 2019 504,459 $ 33.05 $ 41.35 Granted – at discount 61,678 $ 0.00 $ 77.83 – at market value 10,419 $ 95.70 $ 18.69 Exercised (74,074 ) $ 9.11 $ 52.83 Forfeited (10,250 ) $ 13.80 $ 47.17 Outstanding at March 31, 2020 492,232 $ 34.24 $ 43.59 |
Stock Equivalent Units [Member] | |
Summarizes Transactions of SEUs | The following table summarizes the transactions of the Company’s SEUs for the three months ended March 31, 2020: Number Weighted Weighted Outstanding at December 31, 2019 390,816 $ 3.69 $ 59.91 Granted – at discount 103,607 $ 0.00 $ 77.33 – at market value 3,634 $ 95.70 $ 18.69 Exercised (81,557 ) $ 0.94 $ 60.35 Forfeited (9,536 ) $ 1.53 $ 58.85 Outstanding at March 31, 2020 406,964 $ 4.17 $ 63.92 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss for the first quarter of 2020 were: (in millions) Details about AOCL Components Amount Affected Line Item in Defined benefit pension plan items: Amortization of prior service credit $ (0.2 ) See (¹) below Amortization of actuarial net losses 0.2 See (¹) below 0.0 Total before tax 0.0 Income tax expense Total reclassifications $ 0.0 Net of tax (1) These items are included in other income and expense. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information. |
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for the first three months of 2020, net of tax, were: (in millions) Defined Cumulative Total Balance at December 31, 2019 $ (9.3 ) $ (65.1 ) $ (74.4 ) Other comprehensive income before reclassifications 0.0 (7.9 ) (7.9 ) Amounts reclassified from AOCL 0.0 0.0 0.0 Total other comprehensive income 0.0 (7.9 ) (7.9 ) Balance at March 31, 2020 $ (9.3 ) $ (73.0 ) $ (82.3 ) |
Basis of Presentation - Addtion
Basis of Presentation - Addtional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowances for doubtful accounts | $ 3.8 | $ 3.8 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 372.3 | $ 388.3 |
Gross profit/(loss) | 113.9 | 117.8 |
Operating income/(loss) | 40.9 | 36.2 |
Operating Segments [Member] | Fuel Specialties [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 147 | 156 |
Gross profit/(loss) | 51.2 | 55.7 |
Operating income/(loss) | 32.1 | 32.9 |
Operating Segments [Member] | Fuel Specialties [Member] | Refinery and Performance [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 108.6 | 117.3 |
Operating Segments [Member] | Fuel Specialties [Member] | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 38.4 | 38.7 |
Operating Segments [Member] | Performance Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 113.1 | 118.1 |
Gross profit/(loss) | 27.6 | 26.6 |
Operating income/(loss) | 15.6 | 13.5 |
Operating Segments [Member] | Performance Chemicals [Member] | Personal Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 63 | 61 |
Operating Segments [Member] | Performance Chemicals [Member] | Home Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 21.6 | 27 |
Operating Segments [Member] | Performance Chemicals [Member] | Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 28.5 | 30.1 |
Operating Segments [Member] | Oilfield Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 112.2 | 114.2 |
Gross profit/(loss) | 36.2 | 37.7 |
Operating income/(loss) | 7.2 | 7.8 |
Operating Segments [Member] | Octane Additives [Member] | ||
Segment Reporting Information [Line Items] | ||
Gross profit/(loss) | (1.1) | (2.2) |
Operating income/(loss) | (1.2) | (2.8) |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Corporate costs | $ (12.8) | $ (15.2) |
Segment Reporting - Summary of
Segment Reporting - Summary of Segment Depreciation and Amortization (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary of segment depreciation and amortization | ||
Depreciation | $ 6.1 | $ 5.7 |
Amortization | 5.8 | 5.7 |
Operating Segments [Member] | Fuel Specialties [Member] | ||
Summary of segment depreciation and amortization | ||
Depreciation | 1 | 0.9 |
Operating Segments [Member] | Performance Chemicals [Member] | ||
Summary of segment depreciation and amortization | ||
Depreciation | 2.8 | 2.5 |
Amortization | 2.2 | 2.2 |
Operating Segments [Member] | Oilfield Services [Member] | ||
Summary of segment depreciation and amortization | ||
Depreciation | 1.7 | 1.7 |
Amortization | 2.6 | 2.6 |
Operating Segments [Member] | Octane Additives [Member] | ||
Summary of segment depreciation and amortization | ||
Depreciation | 0.3 | 0.3 |
Corporate, Non-Segment [Member] | ||
Summary of segment depreciation and amortization | ||
Depreciation | 0.3 | 0.3 |
Amortization | $ 1 | $ 0.9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Average number of anti-dilutive options excluded from the calculation of diluted earnings per share | 17,636 | 12,539 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator (in millions): | ||
Net income available to common stockholders | $ 33.1 | $ 28.7 |
Denominator (in thousands): | ||
Weighted average common shares outstanding | 24,529 | 24,437 |
Dilutive effect of stock options and awards | 213 | 157 |
Denominator for diluted earnings per share | 24,742 | 24,594 |
Net income per share, basic: | $ 1.35 | $ 1.17 |
Net income per share, diluted: | $ 1.34 | $ 1.17 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Gross cost, beginning balance | $ 599.5 |
Accumulated impairment losses, beginning balance | (236.5) |
Net book amount, beginning balance | 363 |
Exchange effect | (1.8) |
Exchange effect | 0 |
Gross cost, ending balance | 597.7 |
Accumulated impairment losses, ending balance | (236.5) |
Net book amount, ending balance | $ 361.2 |
Other Intangible Assets - Summa
Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Gross cost at January 1 | $ 294.8 | ||
Exchange effect | (0.9) | ||
Gross cost at March 31 | 293.9 | ||
Accumulated amortization at January 1 | (181.3) | ||
Amortization expense | (5.8) | $ (5.7) | |
Exchange effect | 0.3 | ||
Accumulated amortization at March 31 | (186.8) | ||
Net book amount at March 31 | $ 107.1 | $ 113.5 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Amortization Expense (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross cost at January 1 | $ 293.9 | $ 294.8 |
Other Intangible Assets, Net | 107.1 | 113.5 |
Product Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross cost at January 1 | 9.1 | 10.1 |
Brand Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross cost at January 1 | 2.7 | 2.9 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross cost at January 1 | 31.7 | 32.6 |
Customer and Distributor Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross cost at January 1 | 57.7 | 60.8 |
Internally Developed Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross cost at January 1 | $ 5.9 | $ 7.1 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 5.8 | $ 5.7 |
Pension and Post-Employment B_3
Pension and Post-Employment Benefits - Additional Information (Detail) - Selling, General and Administrative Expenses [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
United Kingdom Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net service cost, total | $ 0.3 | $ 0.2 | |
Germany [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net service cost, total | 0 | $ 0 | |
Europe [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Post-employment obligations European businesses | $ 4.5 | $ 4.5 |
Pension and Post-Employment B_4
Pension and Post-Employment Benefits - Plan Net Pension Credit (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
United Kingdom Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | $ (2.8) | $ (3.9) |
Expected return on plan assets | 4.5 | 5.6 |
Amortization of prior service credit | 0.2 | 0.2 |
Amortization of actuarial net losses | (0.2) | 0 |
Net pension credit total | 1.7 | 1.9 |
GERMANY | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost on projected benefit obligation | 0 | (0.1) |
Amortization of actuarial net losses | (0.2) | (0.1) |
Net pension credit total | $ (0.2) | $ (0.2) |
Income Taxes - Roll-forward of
Income Taxes - Roll-forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Opening balance at January 1 | $ 16.4 | |
Additions for tax positions of prior periods | 0 | |
Closing balance at 31 December | 16.4 | |
Current | 0 | |
Non-current | 16.4 | $ 16.4 |
Interest and Penalties [Member] | ||
Income Tax Contingency [Line Items] | ||
Opening balance at January 1 | 2 | |
Additions for tax positions of prior periods | 0 | |
Closing balance at 31 December | 2 | |
Current | 0 | |
Non-current | 2 | |
Unrecognized Tax Benefits [Member] | ||
Income Tax Contingency [Line Items] | ||
Opening balance at January 1 | 14.4 | |
Additions for tax positions of prior periods | 0 | |
Closing balance at 31 December | 14.4 | |
Current | 0 | |
Non-current | $ 14.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits would impact effective tax rate if recognized | $ 16.4 | ||
Unrecognized tax benefit | 16.4 | $ 16.4 | |
Income tax interest expense | 0.2 | ||
Uncertain tax positions | $ 0 | ||
Income tax examination, description | The Company and its U.S. subsidiaries remain open to examination by the IRS for years 2016 onwards under the statute of limitations. The Company’s subsidiaries in foreign tax jurisdictions are open to examination including Germany (2015 onwards), Switzerland (2015 onwards), Spain (2016 onwards), France (2017 onwards) and the United Kingdom (2018 onwards). | ||
Increase to income tax expense | $ 0.2 | ||
Italian Tax Authorities [Member] | |||
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefit | $ 3.1 | ||
Tax Cuts and Jobs Act [Member] | |||
Income Tax Contingency [Line Items] | |||
Uncertain tax positions | $ 10.8 | ||
Non-US [Member] | Earliest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2011 | ||
Non-US [Member] | Latest Tax Year [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2014 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Deferred finance costs | $ (1.3) | $ (1.4) |
Long-term debt | 58.7 | 58.6 |
Less current portion | 0 | 0 |
Long-term debt, net of current portion | 58.7 | 58.6 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 60 | $ 60 |
Plant Closure Provisions - Move
Plant Closure Provisions - Movements in Plant Closure and Restructuring Provisions (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Beginning Balance | $ 49.3 | |
Charge for the period | 1.1 | |
Utilized in the period | (1) | |
Exchange effect | (0.1) | |
Ending Balance | 49.3 | |
Due within one year | (5.6) | $ (5.6) |
Due after one year | $ 43.7 | $ 43.7 |
Plant Closure Provisions - Addi
Plant Closure Provisions - Additional Information (Detail) - Remediation [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Accretion expense recognized | $ 1.1 | |
Remediation charge for changes in the scope and cost of future remediation activities | $ 1 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Fair Values of the Company's Assets and Liabilities Measured on a Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount [Member] | ||
Non-derivatives: | ||
Cash and cash equivalents | $ 68.1 | $ 75.7 |
Non-derivatives: | ||
Long-term debt (including current portion) | 58.7 | 58.6 |
Finance leases (including current portion) | 1.2 | 1.5 |
Carrying Amount [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Currency Forward Exchange Contracts [Member] | ||
Derivatives (Level 1 measurement): | ||
Foreign currency forward exchange contracts | 0 | 0.8 |
Derivatives (Level 1 measurement): | ||
Foreign currency forward exchange contracts | 1.3 | 0 |
Carrying Amount [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Non-financial liabilities (Level 3 measurement): | ||
Stock equivalent units | 12 | 24.6 |
Fair Value [Member] | ||
Non-derivatives: | ||
Cash and cash equivalents | 68.1 | 75.7 |
Non-derivatives: | ||
Long-term debt (including current portion) | 58.7 | 58.6 |
Finance leases (including current portion) | 1.2 | 1.5 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Currency Forward Exchange Contracts [Member] | ||
Derivatives (Level 1 measurement): | ||
Foreign currency forward exchange contracts | 0 | 0.8 |
Derivatives (Level 1 measurement): | ||
Foreign currency forward exchange contracts | 1.3 | 0 |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Non-financial liabilities (Level 3 measurement): | ||
Stock equivalent units | $ 12 | $ 24.6 |
Derivative Instruments and Ri_2
Derivative Instruments and Risk Management - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other net income/(expense) [Member] | ||
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in income | $ 1.9 | $ 0.2 |
Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Accumulated Other Comprehensive Loss [Member] | ||
Derivative [Line Items] | ||
Amount of gain/(loss) recognized in income | $ (0.7) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||
Guarantees | $ 4.6 | $ 4.7 |
Minimum [Member] | ||
Other Commitments [Line Items] | ||
Fixed maturity guarantee remaining term | 1 month | |
Maximum [Member] | ||
Other Commitments [Line Items] | ||
Fixed maturity guarantee remaining term | 4 years |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option compensation | $ 1.2 | $ 1.6 |
Stock Options Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number exercisable and fully vested | 49,444 | |
Fully vested stock options with performance conditions attached | 12,519 | |
Stock option compensation | $ 1.2 | 1.6 |
Total intrinsic value exercised | 4.2 | 2.1 |
Total compensation cost related to non-vested stock options not yet recognized | $ 11.9 | |
Expected compensation cost recognized over the weighted-average period | 2 years 1 month 9 days | |
Stock Equivalent Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fully vested stock options with performance conditions attached | 56,664 | |
Total intrinsic value exercised | $ 5.6 | 6.2 |
Expected compensation cost recognized over the weighted-average period | 2 years 4 months 20 days | |
Number of exercisable SEUs | 63,196 | |
Compensation cost | $ 6 | $ 7.5 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summary of Transactions of the Company's Stock Option Plans (Detail) - Stock Options Plan [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of Options, Beginning balance | shares | 504,459 |
Exercised, Number of Options | shares | (74,074) |
Forfeited, Number of Options | shares | (10,250) |
Outstanding, Number of Options, Ending balance | shares | 492,232 |
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 33.05 |
Exercised, Weighted Average Exercise Price | 9.11 |
Forfeited, Weighted Average Exercise Price | 13.80 |
Outstanding, Weighted Average Exercise Price, Ending balance | 34.24 |
Outstanding, Weighted Average Grant-Date Fair Value | 41.35 |
Exercised, Weighted Average Grant-Date Fair Value | 52.83 |
Forfeited, Weighted Average Grant-Date Fair Value | 47.17 |
Outstanding, Weighted Average Grant-Date Fair Value | $ 43.59 |
Discount [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Number of Options | shares | 61,678 |
Granted, Weighted Average Exercise Price | $ 0 |
Granted, Weighted Average Grant-Date Fair Value | $ 77.83 |
Market Value [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Number of Options | shares | 10,419 |
Granted, Weighted Average Exercise Price | $ 95.70 |
Granted, Weighted Average Grant-Date Fair Value | $ 18.69 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Summarizes Transactions of SEUs (Detail) - Stock Equivalent Units [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of SEUs, Beginning balance | shares | 390,816 |
Granted at discount, Number of SEUs | shares | 103,607 |
Granted at market value, Number of SEUs | shares | 3,634 |
Exercised, Number of SEUs | shares | (81,557) |
Forfeited, Number of SEUs | shares | (9,536) |
Outstanding, Number of SEUs, Ending balance | shares | 406,964 |
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 3.69 |
Granted at discount, Weighted Average Exercise Price | 0 |
Granted at market value, Weighted Average Exercise Price | 95.70 |
Exercised, Weighted Average Exercise Price | 0.94 |
Forfeited, Weighted Average Exercise Price | 1.53 |
Outstanding, Weighted Average Exercise Price, Ending balance | 4.17 |
Outstanding, Weighted Average Grant-Date Fair Value | 59.91 |
Granted at discount, Weighted Average Grant-Date Fair Value | 77.33 |
Granted at market value, Weighted Average Grant-Date Fair Value | 18.69 |
Exercised, Weighted Average Grant-Date Fair Value | 60.35 |
Forfeited, Weighted Average Grant-Date Fair Value | 58.85 |
Outstanding, Weighted Average Grant-Date Fair Value | $ 63.92 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss - Summary of Reclassifications out of Accumulated Other Comprehensive Loss (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total reclassifications | $ 0 |
Defined Benefit Pension Plan Items [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total reclassifications | 0 |
Reclassification Out of Accumulated Other Comprehensive Income/(Loss) [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Total before tax | 0 |
Income tax expense | 0 |
Total reclassifications | 0 |
Reclassification Out of Accumulated Other Comprehensive Income/(Loss) [Member] | Defined Benefit Pension Plan Items [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Amortization of prior service credit | (0.2) |
Amortization of actuarial net losses | $ 0.2 |
Reclassifications out of Accu_4
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 918.5 | |
Other comprehensive income before reclassifications | (7.9) | |
Amounts reclassified from AOCL | 0 | |
Total other comprehensive loss | (7.9) | $ (5.7) |
Ending Balance | 943.8 | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (74.4) | |
Ending Balance | (82.3) | |
Defined Benefit Pension Plan Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (9.3) | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from AOCL | 0 | |
Total other comprehensive loss | 0 | |
Ending Balance | (9.3) | |
Foreign Currency Translation Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (65.1) | |
Other comprehensive income before reclassifications | (7.9) | |
Amounts reclassified from AOCL | 0 | |
Total other comprehensive loss | (7.9) | |
Ending Balance | $ (73) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Smith, Gambrell & Russell, LLP [Member] | |||
Related Party Transaction [Line Items] | |||
Fees payable to Smith, Gambrell & Russell | $ 0.1 | $ 0.2 | |
Amount due to related party | 0 | $ 0 | |
European Metal Recycling Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related party | 0.1 | $ 0 | |
Tendering process to select best buyer of scrap metal | 0.1 | $ 0.3 | |
Advan Six [Member] | |||
Related Party Transaction [Line Items] | |||
Amount due to related party | 0 | ||
Tendering process to select best buyer of scrap metal | $ 0.1 |