Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-16091 | ||
Entity Registrant Name | PolyOne Corporation | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-1730488 | ||
Entity Address, Address Line One | 33587 Walker Road, | ||
Entity Address, City or Town | Avon Lake | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44012 | ||
City Area Code | 440 | ||
Local Phone Number | 930-1000 | ||
Title of 12(b) Security | Common Shares, par value $.01 per share | ||
Trading Symbol | POL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.4 | ||
Entity Common Stock, Shares Outstanding | 92,281,940 | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference certain information from the registrant’s definitive Proxy Statement with respect to the 2020 Annual Meeting of Shareholders. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001122976 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Sales | $ 2,862.7 | $ 2,881 | $ 2,590.3 |
Cost of sales | 2,205.5 | 2,256.2 | 1,993.9 |
Gross margin | 657.2 | 624.8 | 596.4 |
Selling and administrative expense | 500.4 | 446.2 | 423.3 |
Operating income | 156.8 | 178.6 | 173.1 |
Interest expense, net | (59.5) | (62.8) | (60.8) |
Debt extinguishment costs | 0 | (1.1) | (0.3) |
Other income (expense), net | 12.1 | (12.9) | (0.1) |
Income from continuing operations before income taxes | 109.4 | 101.8 | 111.9 |
Income tax expense | (33.7) | (14.4) | (0.8) |
Net income from continuing operations | 75.7 | 87.4 | 111.1 |
Income (loss) from discontinued operations, net of income taxes | 513.1 | 72.1 | (168.7) |
Net income (loss) | 588.8 | 159.5 | (57.6) |
Net (income) loss attributable to noncontrolling interests | (0.2) | 0.3 | (0.1) |
Net income (loss) attributable to PolyOne common shareholders | $ 588.6 | $ 159.8 | $ (57.7) |
Earnings (loss) per share attributable to PolyOne common shareholders - Basic: | |||
Continuing operations (in usd per share) | $ 0.98 | $ 1.10 | $ 1.36 |
Discontinued operations (in usd per share) | 6.64 | 0.91 | (2.07) |
Total (in usd per share) | 7.62 | 2.01 | (0.71) |
Earnings (loss) per share attributable to PolyOne common shareholders - Diluted: | |||
Continuing operations (in usd per share) | 0.97 | 1.09 | 1.35 |
Discontinued operations (in usd per share) | 6.61 | 0.90 | (2.05) |
Total (in usd per share) | $ 7.58 | $ 1.99 | $ (0.70) |
Weighted-average shares used to compute earnings per common share: | |||
Basic (in shares) | 77.2 | 79.7 | 81.5 |
Plus dilutive impact of share-based compensation (in shares) | 0.5 | 0.7 | 0.6 |
Diluted (in shares) | 77.7 | 80.4 | 82.1 |
Anti-dilutive shares not included in diluted common shares outstanding (in shares) | 0.6 | 0 | 0.6 |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.788 | $ 0.720 | $ 0.580 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 588.8 | $ 159.5 | $ (57.6) |
Other comprehensive (loss) income, net of tax: | |||
Translation adjustments and related hedging instruments | 2.2 | (27.6) | 41.2 |
Cash flow hedges | (2.5) | (1.3) | 0 |
Other | 0 | (0.4) | 0 |
Total other comprehensive (loss) income | (0.3) | (29.3) | 41.2 |
Total comprehensive income (loss) | 588.5 | 130.2 | (16.4) |
Comprehensive (income) loss attributable to noncontrolling interests | (0.2) | 0.3 | (0.1) |
Comprehensive income (loss) attributable to PolyOne common shareholders | $ 588.3 | $ 130.5 | $ (16.5) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 864.7 | $ 170.9 |
Accounts receivable, net | 330 | 347.2 |
Inventories, net | 260.9 | 284.6 |
Current assets held for sale | 0 | 129.7 |
Other current assets | 57.7 | 66.4 |
Total current assets | 1,513.3 | 998.8 |
Property, net | 407.4 | 384.5 |
Goodwill | 685.7 | 639.1 |
Intangible assets, net | 469.3 | 422.4 |
Operating lease assets, net | 63.8 | |
Non-current assets held for sale | 0 | 124.5 |
Other non-current assets | 133.8 | 154 |
Total assets | 3,273.3 | 2,723.3 |
Current liabilities: | ||
Short-term and current portion of long-term debt | 18.4 | 19.4 |
Accounts payable | 287.7 | 305 |
Current operating lease obligations | 21 | |
Current liabilities held for sale | 0 | 104.5 |
Accrued expenses and other current liabilities | 375.4 | 128.7 |
Total current liabilities | 702.5 | 557.6 |
Non-current liabilities: | ||
Long-term debt | 1,210.9 | 1,336.2 |
Pension and other post-retirement benefits | 56.6 | 54.3 |
Deferred income taxes | 63.5 | 69.1 |
Non-current operating lease obligations | 42.8 | |
Non-current liabilities held for sale | 0 | 3.3 |
Other non-current liabilities | 144.3 | 162.2 |
Total non-current liabilities | 1,518.1 | 1,625.1 |
SHAREHOLDERS' EQUITY | ||
Common Shares, $0.01 par, 400.0 shares authorized, 122.2 shares issued | 1.2 | 1.2 |
Additional paid-in capital | 1,175.2 | 1,166.9 |
Retained earnings | 1,001.2 | 472.9 |
Common shares held in treasury, at cost, 45.3 shares in 2019 and 44.5 shares in 2018 | (1,043.1) | (1,018.7) |
Accumulated other comprehensive loss | (82.6) | (82.3) |
PolyOne shareholders’ equity | 1,051.9 | 540 |
Noncontrolling interest | 0.8 | 0.6 |
Total equity | 1,052.7 | 540.6 |
Total liabilities and equity | $ 3,273.3 | $ 2,723.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 122,200,000 | 122,200,000 |
Treasury stock, shares (in shares) | 45,300,000 | 44,500,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income (loss) | $ 588.8 | $ 159.5 | $ (57.6) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
(Gain) Loss on sale of business, net of tax | (457.7) | 0 | 227.7 |
Depreciation and amortization | 87.5 | 88.5 | 97.4 |
Accelerated depreciation and fixed asset charges associated with restructuring activities | 0 | 3 | 0.9 |
Gain from sale of closed facilities | 0 | 0 | (3.6) |
Deferred income tax benefit | (3.2) | (4.8) | (1.4) |
Debt extinguishment costs | 0 | 1.1 | 0.3 |
Share-based compensation expense | 12.3 | 10.9 | 10.2 |
Changes in assets and liabilities, net of the effect of acquisitions: | |||
Decrease (increase) in accounts receivable | 29.7 | (11.3) | (44.7) |
Decrease (increase) in inventories | 40.2 | (10.6) | (41.1) |
(Decrease) increase in accounts payable | (22.7) | 7.9 | 52.2 |
(Decrease) increase in pension and other post-retirement benefits | (19.7) | 4.8 | (9.6) |
Increase in post-acquisition earnouts | 36.4 | 0.7 | 0 |
Increase (decrease) in accrued expenses and other assets and liabilities - net | 9.2 | 4 | (28.3) |
Net cash provided by operating activities | 300.8 | 253.7 | 202.4 |
Investing activities | |||
Capital expenditures | (81.7) | (76) | (79.6) |
Business acquisitions, net of cash acquired | (119.6) | (98.6) | (163.8) |
Net proceeds from divestiture | 761.8 | 0 | 111 |
Net proceeds from other assets | 51.4 | 4.3 | 13 |
Net cash provided (used) by investing activities | 611.9 | (170.3) | (119.4) |
Financing activities | |||
Borrowings under credit facilities | 963.4 | 1,152.9 | 1,472.9 |
Repayments under credit facilities | (1,083.9) | (1,090.3) | (1,417) |
Purchase of common shares for treasury | (26.9) | (123) | (70.7) |
Cash dividends paid | (60.3) | (56.1) | (44.1) |
Repayment of other debt | (1.8) | (16.4) | 0 |
Repayment of long-term debt | (6.5) | (6.5) | (6.5) |
Payments on withholding tax on share awards | (2.1) | (4.1) | (4.7) |
Debt financing costs | (0.2) | (4.6) | (2.6) |
Net cash used by financing activities | (218.3) | (148.1) | (72.7) |
Effect of exchange rate changes on cash | (0.6) | (8) | 6.6 |
Increase (decrease) in cash and cash equivalents | 693.8 | (72.7) | 16.9 |
Cash and cash equivalents at beginning of year | 170.9 | 243.6 | 226.7 |
Cash and cash equivalents at end of year | $ 864.7 | $ 170.9 | $ 243.6 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Total PolyOne shareholders' equity | Common Shares | Common Shares Held in Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | |
Beginning Balance at Dec. 31, 2016 | $ 725.5 | $ 724.7 | $ 1.2 | $ (830.6) | $ 1,157.1 | $ 491.2 | $ (94.2) | $ 0.8 | |
Beginning Balance (in shares) at Dec. 31, 2016 | 122.2 | (39.6) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (57.6) | (57.7) | (57.7) | 0.1 | |||||
Other comprehensive income (loss) | 41.2 | 41.2 | 41.2 | ||||||
Cash dividends declared | [1] | (46.9) | (46.9) | (46.9) | |||||
Repurchase of common shares | (70.7) | (70.7) | $ (70.7) | ||||||
Repurchase of common shares (in shares) | (2) | ||||||||
Stock-based compensation and exercise of awards | 7.4 | 7.4 | $ 3 | 4.4 | |||||
Share-based compensation and exercise of awards (in shares) | 0.3 | ||||||||
Other | [2] | 0.5 | 0.5 | 0.5 | |||||
Ending Balance at Dec. 31, 2017 | 599.4 | 598.5 | $ 1.2 | $ (898.3) | 1,161.5 | 387.1 | (53) | 0.9 | |
Ending Balance (in shares) at Dec. 31, 2017 | 122.2 | (41.3) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 159.5 | 159.8 | 159.8 | (0.3) | |||||
Other comprehensive income (loss) | (29.3) | (29.3) | (29.3) | ||||||
Cash dividends declared | [1] | (57.5) | (57.5) | (57.5) | |||||
Repurchase of common shares | (123) | (123) | $ (123) | ||||||
Repurchase of common shares (in shares) | (3.4) | ||||||||
Stock-based compensation and exercise of awards | 8 | 8 | $ 2.6 | 5.4 | |||||
Share-based compensation and exercise of awards (in shares) | 0.2 | ||||||||
Other | [2] | (16.5) | (16.5) | (16.5) | |||||
Ending Balance at Dec. 31, 2018 | 540.6 | 540 | $ 1.2 | $ (1,018.7) | 1,166.9 | 472.9 | (82.3) | 0.6 | |
Ending Balance (in shares) at Dec. 31, 2018 | 122.2 | (44.5) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 588.8 | 588.6 | 588.6 | 0.2 | |||||
Other comprehensive income (loss) | (0.3) | (0.3) | (0.3) | ||||||
Cash dividends declared | [1] | (60.3) | (60.3) | (60.3) | |||||
Repurchase of common shares | (26.9) | (26.9) | $ (26.9) | ||||||
Repurchase of common shares (in shares) | (1) | ||||||||
Stock-based compensation and exercise of awards | 10.8 | 10.8 | $ 2.5 | 8.3 | |||||
Share-based compensation and exercise of awards (in shares) | 0.2 | ||||||||
Ending Balance at Dec. 31, 2019 | $ 1,052.7 | $ 1,051.9 | $ 1.2 | $ (1,043.1) | $ 1,175.2 | $ 1,001.2 | $ (82.6) | $ 0.8 | |
Ending Balance (in shares) at Dec. 31, 2019 | 122.2 | (45.3) | |||||||
[1] | (1) Dividends declared per share were $0.788, $0.720, and $0.580 for the years ended December 31, 2019, 2018, and 2017, respectively. | ||||||||
[2] | (2) In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other than Inventory (ASU 2016-16), which requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense or benefit in the period the sale or transfer occurs. We recognized an adjustment of $17.0 million to beginning retained earnings upon adoption of this standard on January 1, 2018 from transactions completed as of December 31, 2017. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.788 | $ 0.720 | $ 0.580 | |
Accounting Standards Update 2016-16 | Retained Earnings | ||||
Cumulative effect of adoption | $ 17 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business We are a premier provider of specialized and sustainable polymer materials and polymer services and solutions. Our products include specialty engineered materials, advanced composites, color and additive systems and polymer distribution. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants, and fluoropolymer and silicone colorants. Headquartered in Avon Lake, Ohio, we have employees at manufacturing sites and distribution facilities across North America, South America, Europe and Asia. We provide value to our customers through our ability to link our knowledge of polymers and formulation technology with our manufacturing and supply chain to provide value added solutions to designers, assemblers and processors of plastics (our customers). When used in these notes to the consolidated financial statements, the terms “we,” “us,” “our,” “PolyOne” and the “Company” mean PolyOne Corporation and its consolidated subsidiaries. Our operations are located primarily in North America, South America, Europe and Asia. Our operations are reported in three reportable segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution. See Note 14, Segment Information , for more information. Accounting Standards Adopted On January 1, 2019, the Company adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842). ASC 842 was issued to increase transparency and comparability among entities by recognizing right-of-use assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. We elected to transition to ASC 842 using the option to apply the standard on its effective date, January 1, 2019. The comparative periods presented reflect the former lease accounting guidance and the required comparative disclosures are included in Note 6, Leasing Arrangements . There was not a material cumulative-effect adjustment to our beginning retained earnings as a result of adopting ASC 842. We have recognized additional operating lease assets and obligations of $72.3 million and $63.8 million as of January 1, 2019 and December 31, 2019, respectively. We elected to not reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases that commenced prior to January 1, 2019. Additionally, we elected to not use hindsight to determine lease terms and to not separate non-lease components within our lease portfolio. For additional disclosure and detail, see Note 6, Leasing Arrangements . In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). This standard requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost must be presented below operating income. The Company has adopted ASU 2017-07 on January 1, 2018. ASU 2017-07 provides a practical expedient to utilize previously disclosed components of net periodic benefit costs as an estimate for retrospective presentation. Utilizing this practical expedient, the Company reclassified non-service components of net periodic benefit cost from Cost of sales and Selling and administrative expense into Other income, net on the Consolidated Statements of Income. The adoption of ASU 2017-07 resulted in $9.6 million of costs for the year ended December 31, 2018 and a gain of $4.7 million for the year ended December 31, 2017 of the non-service components of net periodic benefit presented in Other income, net. For additional detail on the components of our annual net periodic benefit cost, see Note 10, Employee Benefit Plans . In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other than Inventory (ASU 2016-16), which requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense or benefit in the period the sale or transfer occurs. We recognized an adjustment of $17.0 million to beginning retained earnings upon adoption of this standard on January 1, 2018 from transactions completed as of December 31, 2017. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. Under ASU 2016-13, the Company will be required to use a current expected credit loss model (CECL) that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, including trade receivables. The CECL model uses a broader range of reasonable and supportable information in the development of credit loss estimates. This guidance became effective for the Company on January 1, 2020, including the interim periods in the year. The Company is in the process of finalizing the business processes and controls to support recognition of credit losses and related disclosures under the new standard. We currently do not expect ASU 2016-13 to have a material effect on our consolidated financial statements and related disclosures. Consolidation and Basis of Presentation The consolidated financial statements include the accounts of PolyOne and its subsidiaries. All majority-owned affiliates over which we have control are consolidated. Transactions with related parties, including joint ventures, are in the ordinary course of business. Historical information has been retrospectively adjusted to reflect the classification of discontinued operations. Discontinued operations are further discussed in Note 3, Discontinued Operations . Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates. Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of less than three months to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Allowance for Doubtful Accounts We evaluate the collectability of receivables based on a combination of factors, each of which are adjusted if specific circumstances change. We reserve for amounts determined to be uncollectible based on a specific customer’s inability to meet its financial obligation to us. We also record a general reserve based on the age of receivables past due, economic conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit insurance. The allowance for doubtful accounts was $2.6 million and $2.3 million as of December 31, 2019 and 2018, respectively. Inventories External purchases of raw materials and finished goods are valued at weighted average cost. Raw materials and finished goods are stated at the lower of cost or market using the first-in, first-out (FIFO) method. Long-lived Assets Property, plant and equipment is carried at cost, net of depreciation and amortization that is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from three We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balance is removed from the respective account, and the resulting net amount, less any proceeds, is included as a component of income from continuing operations in the accompanying Consolidated Statements of Income (Loss). We account for operating and capital leases under the provisions of FASB ASC Topic 842, Leases. Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The remaining useful lives range up to 20 years. We assess the recoverability of long-lived assets when events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected future undiscounted cash flows associated with the asset. We measure the amount of impairment of long-lived assets as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined based on projected discounted future cash flows or appraised values. No such impairments were recognized during 2019, 2018 or 2017. Goodwill and Indefinite Lived Intangible Assets In accordance with the provisions of FASB ASC Topic 350, Intangibles — Goodwill and Other , we assess the fair value of goodwill, quantitatively or qualitatively, on an annual basis or at an interim date if potential impairment indicators are present. Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested for impairment, quantitatively or qualitatively, at the reporting unit level. Our reporting units have been identified at the operating segment level, or in most cases, one level below the operating segment level. Goodwill is allocated to the reporting units based on the estimated fair value at the date of acquisition. Our annual measurement date for testing impairment of goodwill and indefinite-lived intangibles is October 1. We completed our testing of impairment as of October 1, noting no impairment in 2019, 2018 or 2017. There are no reporting units identified as at-risk of future impairment. The future occurrence of a potential indicator of impairment would require an interim assessment for some or all of the reporting units prior to the next required annual assessment on October 1, 2020. We test our goodwill either quantitatively or qualitatively for impairment. For our quantitative approach, we use an income approach to estimate the fair value of our reporting units. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs and number of units, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. We validate our estimates of fair value under the income approach by considering the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions. A qualitative approach for both goodwill and indefinite-lived intangible assets is performed if the last quantitative test exceeded certain thresholds. During our qualitative approach, we assess whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we determine it is more likely than not that the fair value is less than carrying value, a quantitative impairment test is performed for each asset, as described above. Indefinite-lived intangible assets primarily consist of the GLS, ColorMatrix, Gordon Composites, and Fiber-Line trade names. Indefinite-lived intangible assets are tested, quantitatively or qualitatively, for impairment annually at the same time we test goodwill for impairment. For our quantitative approach, the implied fair value of indefinite-lived intangible assets is determined based on significant unobservable inputs, as summarized below. The fair value of the trade names is calculated using a “relief from royalty” methodology. This approach involves two steps (1) estimating reasonable royalty rates for the trade name and (2) applying this royalty rate to a net sales stream and discounting the resulting cash flows to determine fair value using a weighted-average cost of capital that is determined based on current market conditions. This fair value is then compared with the carrying value of the trade name. Litigation Reserves FASB ASC Topic 450, Contingencies, requires that we accrue for loss contingencies associated with outstanding litigation, claims and assessments for which management has determined it is probable that a loss contingency exists and the amount of loss can be reasonably estimated. We recognize expense associated with professional fees related to litigation claims and assessments as incurred. Refer to Note 11, Commitments and Contingencies , for further information. Derivative Financial Instruments FASB ASC Topic 815, Derivative and Hedging , requires that all derivative financial instruments, such as foreign exchange contracts, be recognized in the financial statements and measured at fair value, regardless of the purpose or intent in holding them. We are exposed to foreign currency changes and to changes in cash flows due to changes in our contractually specified interest rates (e.g., LIBOR) in the normal course of business. We have established policies and procedures that manage this exposure through the use of financial instruments. By policy, we do not enter into these instruments for trading purposes or speculation. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, in accordance with ASU 2017-12, we assess at inception whether the financial instruments used in the hedging transaction are highly effective at offsetting changes in either the fair values or cash flows of the underlying exposures. If highly effective, any subsequent test may be done qualitatively. The net interest payments accrued each month for effective instruments designated as a hedge are reflected in net income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded as a component of A ccumulated Other Comprehensive Income (AOCI) . Instruments not designated as hedges are adjusted to fair value at each period end, with the resulting gains and losses recognized in the accompanying Consolidated Statements of Income (Loss) immediately. Refer to Note 15, Derivatives and Hedging, for more information. Pension and Other Post-retirement Plans We account for our pensions and other post-retirement benefits in accordance with FASB ASC Topic 715, Compensation — Retirement Benefits . We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur. Refer to Note 10, Employee Benefit Plans, for more information. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss in 2019, 2018 and 2017 were as follows: (In millions) Cumulative Translation Adjustment and Related Hedging Instruments Pension and other post-retirement benefits Cash Flow Hedges Other Total Balance at January 1, 2017 $ (99.8) $ 5.2 $ — $ 0.4 $ (94.2) Translation Adjustments 41.2 — — — 41.2 Balance at December 31, 2017 (58.6) 5.2 — 0.4 (53.0) Translation Adjustments (25.6) — — — (25.6) Unrealized losses (2.0) — (1.3) — (3.3) Other — — — (0.4) (0.4) Balance at December 31, 2018 (86.2) 5.2 (1.3) — (82.3) Translation Adjustments (6.9) — — — (6.9) Unrealized gains (losses) 9.1 — (2.5) — 6.6 Balance at December 31, 2019 $ (84.0) $ 5.2 $ (3.8) $ — $ (82.6) Fair Value of Financial Instruments FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosures of the fair value of financial instruments. The estimated fair values of financial instruments were principally based on market prices where such prices were available and, where unavailable, fair values were estimated based on market prices of similar instruments. Foreign Currency Translation Revenues and expenses are translated at average currency exchange rates during the related period. Assets and liabilities of foreign subsidiaries are translated using the exchange rate at the end of the period. The resulting translation adjustments are recorded as accumulated other comprehensive income or loss. Gains and losses resulting from foreign currency transactions, including intercompany transactions that are not considered long-term investments, are included in Other income (expense), net in the accompanying Consolidated Statements of Income (Loss). Revenue Recognition We recognize revenue once control of the product is transferred to the customer, which typically occurs when products are shipped from our facilities. Shipping and Handling Costs Shipping and handling costs are included in cost of sales. Research and Development Expense Research and development costs of $50.6 million in 2019, $49.6 million in 2018 and $45.3 million in 2017 are charged to expense as incurred. Environmental Costs We expense costs that are associated with managing hazardous substances and pollution in ongoing operations on a current basis. Costs associated with environmental contamination are accrued when it becomes probable that a liability has been incurred and our proportionate share of the cost can be reasonably estimated. Any such provision is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated range, when a single best estimate is not determinable. In some cases, the Company may be able to recover a portion of the costs relating to these obligations from insurers or other third parties; however, the Company records such amounts only when they are collected. Share-Based Compensation We account for share-based compensation under the provisions of FASB ASC Topic 718, Compensation - Stock Compensation , which requires us to estimate the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying Consolidated Statements of Income (Loss). As of December 31, 2019, we had one active share-based employee compensation plan, which is described more fully in Note 13, Share-Based Compensation . Income Taxes Deferred income tax liabilities and assets are determined based upon the differences between the financial reporting and tax basis of assets and liabilities and are measured using the tax rate and laws currently in effect. In accordance with FASB ASC Topic 740, Income Taxes , we evaluate our deferred income taxes to determine whether a valuation allowance should be established against the deferred tax assets or whether the valuation allowance should be reduced based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard. See Note 12, Income Taxes , for additional detail. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2 — BUSINESS COMBINATIONS On December 19, 2019, we entered into a definitive share purchase agreement (the Agreement) with Clariant AG, a corporation organized and existing under the laws of Switzerland (Clariant), and through one of our wholly owned subsidiaries, a definitive business transfer agreement (the BTA), with Clariant Chemicals (India) Limited, a public limited company incorporated in India and an indirect majority-owned subsidiary of Clariant (Clariant India). Pursuant to the Agreement, we have agreed to acquire Clariant’s global masterbatch business outside of India, and pursuant to the BTA, we have agreed to purchase Clariant India’s masterbatch business, for a net purchase price of $1.45 billion in cash, subject to customary working capital and net debt adjustments. Each of the Agreement and the BTA contain certain customary termination rights, and, with respect to the Agreement only, the requirement that PolyOne pay a termination fee in the event the Agreement is terminated under certain conditions. The closing of each acquisition is expected to occur in mid-2020, subject to the receipt of regulatory approvals, the satisfaction or waiver of customary closing conditions and, in the case of the Clariant India masterbatch acquisition, shareholder approval of Clariant India. In connection with the Clariant Acquisition, on December 19, 2019, we entered into a Commitment Letter with a number of banks (the Commitment Parties), pursuant to which the Commitment Parties have provided a 12-month commitment for a $1.15 billion senior unsecured bridge loan facility (the Bridge Facility) for purposes of funding the Clariant Acquisition. The Commitment Parties’ commitments under the Bridge Facility were subsequently reduced on a dollar-for-dollar basis by the net proceeds from the issuance of common shares described below. The Company currently intends to issue new senior unsecured notes in lieu of borrowing under the Bridge Facility. We intend to use (i) a portion of the net proceeds from the sale of our Performance Products and Solutions segment (PP&S), (ii) the net proceeds from the issuance of common shares in an underwritten public offering that we completed in February 2020 and (iii) the net proceeds of a senior unsecured notes offering to finance the Clariant Acquisition, including the payment of related fees and expenses. On January 2, 2019, the Company acquired Fiber-Line, LLC (Fiber-Line), a global leader in polymer coated engineered fibers and composite materials, for total consideration of $152.7 million, net of cash acquired and inclusive of contingent consideration. Fiber-Line's results are reported in the Specialty Engineered Materials segment. The purchase price allocation resulted in intangible assets of $77.1 million, goodwill of $47.0 million, and net working capital of $24.9 million. Of the total goodwill, $22.9 million was deductible for U.S. federal income tax purposes. The definite-lived intangible assets that have been acquired are being amortized over a period of five Our acquisitions of PlastiComp, Inc. (PlastiComp) on May 31, 2018 and Fiber-Line have contingent consideration that includes earnouts payable over periods of up to two years in the event that certain operating results are achieved. The PlastiComp earnout has a ceiling of $35 million. The Fiber-Line earnout is based on two annual earnout periods, with the second earnout period target based on year-one results. We estimate the total earnout payment for Fiber-Line to be in the range of $55 to $70 million. The earnouts are considered Level 3 under the fair value hierarchy as the fair value is based on unobservable inputs, which require PolyOne to develop its own assumptions. The earnouts are valued each quarter using Monte Carlo simulation analyses in a risk-neutral framework with assumptions for volatility, risk-free rate and dividend yield. As of December 31, 2019, we had recorded a total of $87.9 million of contingent consideration liabilities for both acquisitions, all of which was reflected within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. During the twelve months ended December 31, 2019, the Company recorded charges of $36.4 million, associated with the earnouts within Selling and administrative expense on the Condensed Consolidated Statements of Income that was primarily attributable to improved earnings from the acquisitions. The fair value of intangible assets acquired during the year ended December 31, 2019, including their estimated useful lives are as follows: (In millions) Fair Value Useful Life Customer relationships $ 9.0 16 Patents, technology and other 58.9 5 - 19 Indefinite-lived trade names 9.2 N/A Total $ 77.1 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 3 — DISCONTINUED OPERATIONS On July 19, 2017, PolyOne divested its Designed Structures and Solutions segment (DSS) for $115.0 million cash. The sale resulted in the recognition of an after-tax loss of $229.0 million that was primarily recognized during the second quarter of 2017. The following table summarizes the discontinued operations associated with DSS for the years ended December 31, 2018 and 2017, which is reflected within the Loss from discontinued operations, net of income taxes line of the Consolidated Statements of Income (Loss): (In millions) 2018 2017 Sales $ — $ 222.1 Loss on sale $ (1.8) $ (295.6) Loss from Operations — (8.6) Loss before taxes (1.8) (304.2) Income tax benefit 0.5 73.0 Loss from discontinued operations, net of taxes $ (1.3) $ (231.2) On October 25, 2019, PolyOne divested PP&S for $775.0 million cash subject to a customary working capital adjustment. The sale resulted in the recognition of an after-tax gain of $457.7 million, which is reflected within the Income (loss) from discontinued operations, net of income taxes line of the Consolidated Statements of Income (Loss). PolyOne has continuing involvement with the former PP&S business following the close of the transaction. The Company entered into a four two The following table summarizes the discontinued operations associated with PP&S for the years ended December 31, 2019, 2018 and 2017, which is reflected within the Income (loss) from discontinued operations, net of income taxes line of the Consolidated Statements of Income (Loss): (In millions) 2019 2018 2017 Sales $ 488.9 $ 652.4 $ 639.6 Cost of sales (390.1) (532.3) (517.1) Selling and administrative expense (28.0) (24.7) (22.1) Gain on sale 591.2 — — Pretax income of discontinued operations 662.0 95.4 100.4 Income tax expense (148.9) (22.0) (37.9) Income from discontinued operations, net of taxes $ 513.1 $ 73.4 $ 62.5 The following table summarizes the major classes of assets and liabilities of PP&S that were classified as held for sale in the consolidated balance sheets as of December 31, 2018: Year Ended December 31, (In millions) 2018 Assets: Current assets: Accounts receivable, net $ 66.2 Inventories, net 60.1 Other current assets 3.4 Current assets held for sale 129.7 Non-current assets: Property, net $ 110.9 Goodwill 11.2 Other non-current assets 2.4 Non-current assets held for sale 124.5 Total assets held for sale $ 254.2 Liabilities Current liabilities: Accounts payable $ 94.0 Other current liabilities 10.5 Current liabilities held for sale 104.5 Non-current liabilities held for sale 3.3 Total liabilities held for sale $ 107.8 The following table presents the depreciation, amortization, and capital expenditures of our discontinued operations for the twelve months ended December 31, 2019, 2018 and 2017. There were no other significant operating or investing non-cash items for the twelve months ended December 31, 2019, 2018 and 2017. Year Ended December 31, (In millions) 2019 2018 2017 Depreciation and amortization $ 9.4 $ 15.9 $ 30.1 Capital Expenditures 14.1 19.5 25.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4 — GOODWILL AND INTANGIBLE ASSETS The total purchase price associated with acquisitions is allocated to the fair value of assets acquired and liabilities assumed based on their fair values at the acquisition date, with excess amounts recorded as goodwill. Goodwill as of December 31, 2019 and 2018 and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks PolyOne Distribution Total Balance at January 1, 2018 $ 173.2 $ 424.5 $ 1.6 $ 599.3 Acquisition of businesses 16.3 25.8 — 42.1 Currency translation (0.6) (1.7) — (2.3) Balance at December 31, 2018 188.9 448.6 1.6 639.1 Acquisition of businesses 47.9 — — 47.9 Currency translation (0.5) (0.8) — (1.3) Balance at December 31, 2019 $ 236.3 $ 447.8 $ 1.6 $ 685.7 Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2019 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 286.8 $ (89.1) $ (1.0) $ 196.7 Patents, technology and other 244.0 (79.6) (1.3) 163.1 Indefinite-lived trade names 109.5 — — 109.5 Total $ 640.3 $ (168.7) $ (2.3) $ 469.3 As of December 31, 2018 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 277.8 $ (74.8) $ (0.7) $ 202.3 Patents, technology and other 185.1 (64.4) (0.9) 119.8 Indefinite-lived trade names 100.3 — — 100.3 Total $ 563.2 $ (139.2) $ (1.6) $ 422.4 Amortization of finite-lived intangible assets included in continuing operations for the years ended December 31, 2019, 2018 and 2017 was $29.5 million, $25.5 million and $21.2 million, respectively. We expect finite-lived intangibles amortization expense for the next five years as follows: (In millions) 2020 2021 2022 2023 2024 Expected Amortization Expense $ 28.9 $ 28.7 $ 26.7 $ 24.3 $ 24.2 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 5 — FINANCING ARRANGEMENTS For each of the periods presented, total debt consisted of the following: As of December 31, 2019 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ — $ — $ — 3.90 % Senior secured term loan due 2026 624.5 9.8 614.7 4.01 % 5.25% senior notes due 2023 600.0 3.7 596.3 5.25 % Other Debt 18.3 — 18.3 Total Debt $ 1,242.8 $ 13.5 $ 1,229.3 Less short-term and current portion of long-term debt 18.4 — 18.4 Total long-term debt, net of current portion $ 1,224.4 $ 13.5 $ 1,210.9 As of December 31, 2018 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ 120.1 $ — $ 120.1 3.35 % Senior secured term loan due 2026 631.0 11.2 619.8 3.80 % 5.25% senior notes due 2023 600.0 5.0 595.0 5.25 % Other Debt 20.7 — 20.7 Total Debt $ 1,371.8 $ 16.2 $ 1,355.6 Less short-term and current portion of long-term debt 19.4 — 19.4 Total long-term debt, net of current portion $ 1,352.4 $ 16.2 $ 1,336.2 On April 11, 2018, the Company entered into a fifth amendment to its senior secured term loan. Under the terms of the amended senior secured term loan, the margin was reduced by 25 basis points to 175 basis points. At the Company's discretion, interest is based upon (i) a margin rate of 175 basis points plus the 1-, 2-, 3-, or 6-month LIBOR, subject to a floor of 75 basis points, or (ii) a margin rate of 75 basis points plus a Prime Rate, subject to a floor of 175 basis points. On November 9, 2018, the Company entered into a sixth amendment to its senior secured term loan, which extended the maturity to 2026. Repayments in the amount of one percent of the aggregate principal amount as of August 3, 2016 are payable annually, while the remaining balance matures on January 30, 2026. The total principal repayments for the year ended December 31, 2019 were $6.5 million. The Company maintains a senior secured revolving credit facility, which matures on February 24, 2022 and provides a maximum borrowing facility size of $450.0 million, subject to a borrowing base with advances against certain U.S. and Canadian accounts receivable, inventory and other assets as specified in the agreement. On June 28, 2019, the Company amended and restated its senior secured revolving credit facility to, among other things, add a European line of credit, up to the euro equivalent of $50.0 million, subject to a borrowing base with advances against certain European accounts receivable. Advances under the U.S. portion of our revolving credit facility bear interest, at the Company’s option, at a Base Rate or a LIBOR Rate plus an applicable margin. The Base Rate is a fluctuating rate equal to the greater of (i) the Federal Funds Rate plus one-half percent, (ii) the prevailing LIBOR Rate plus one percent, and (iii) the prevailing Prime Rate. The applicable margins vary based on the Company’s daily average excess availability during the previous quarter. As of December 31, 2019, we had no borrowings under our revolving credit facility, which had remaining availability of $279.4 million. As of December 31, 2018, we had borrowings of $120.1 million under our revolving credit facility, which had remaining availability of $279.4 million. The agreements governing our revolving credit facility and our senior secured term loan, and the indentures and credit agreements governing other debt, contain a number of customary financial and restrictive covenants that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of December 31, 2019, we were in compliance with all covenants. As of both December 31, 2019 and 2018, the Company maintained a credit line of $12.0 million with Saudi Hollandi Bank. The credit line has an interest rate equal to the Saudi Arabia Interbank Offered Rate plus a fixed rate of 0.85% and is subject to annual renewal. Borrowings under the credit line were primarily used to fund capital expenditures related to the manufacturing facility in Jeddah, Saudi Arabia. As of December 31, 2019, letters of credit under the credit line were immaterial and borrowings were $10.3 million with a weighted average annual interest rate of 3.14%. As of December 31, 2018, letters of credit under the credit line were immaterial and borrowings were $10.7 million with a weighted average annual interest rate of 3.35%. As of December 31, 2019 and 2018, there was remaining availability on the credit line of $1.7 million and $1.3 million, respectively. The estimated fair value of PolyOne’s debt instruments at December 31, 2019 and 2018 was $1,271.8 million and $1,316.8 million, respectively, compared to carrying values of $1,229.3 million and $1,355.6 million as of December 31, 2019 and 2018, respectively. The fair value of PolyOne’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy. Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows: (In millions) 2020 $ 18.4 2021 7.5 2022 7.2 2023 607.0 2024 7.0 Thereafter 595.7 Aggregate maturities $ 1,242.8 Included in Interest expense, net for the years ended December 31, 2019, 2018 and 2017 was interest income of $11.0 million, $3.1 million, and $0.7 million, respectively. Total interest paid on debt was $67.0 million in 2019, $61.0 million in 2018 and $59.4 million in 2017. |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leasing Arrangements | Note 6 — LEASING ARRANGEMENTS We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment under operating leases. The majority of our leases are operating leases. Finance leases are immaterial to our condensed consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease assets, net, Current operating lease obligations, and Non-current operating lease obligations, respectively, on the Condensed Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost from continued operations recognized within our Condensed Consolidated Statements of Income were as follows: (in millions) Condensed Consolidated Statements of Income Location Year-Ended December 31, 2019 Lease Cost Operating lease cost Cost of Sales $ 10.9 Operating lease cost Selling and administrative expense 11.3 Other (1) Selling and administrative expense 1.8 Total Operating lease cost $ 24.0 (1) Other lease costs include short-term lease costs and variable lease costs We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of December 31, 2019 was 4.0 years. The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2019 was 7.9%. Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one year as of December 31, 2019 are as follows: Maturity Analysis of Lease Liabilities: As of December 31, 2019 (in millions) Operating Leases 2020 $ 24.0 2021 16.0 2022 11.3 2023 8.1 2024 4.5 Thereafter 7.8 Total $ 71.7 Less amount of lease payment representing interest (7.9) Total present value of lease payments $ 63.8 As of December 31, 2018 (in millions) Operating Leases 2019 $ 24.5 2020 20.4 2021 12.4 2022 8.5 2023 5.8 Thereafter 9.0 Total $ 80.6 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 7 — INVENTORIES, NET Components of Inventories, net are as follows: (In millions) December 31, 2019 December 31, 2018 Finished products $ 157.6 $ 174.6 Work in process 8.0 6.4 Raw materials and supplies 95.3 103.6 Inventories, net $ 260.9 $ 284.6 |
Property, Net
Property, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Net | Note 8 — PROPERTY, NET Components of Property, net are as follows: (In millions) December 31, 2019 December 31, 2018 Land and land improvements $ 32.8 $ 32.6 Buildings 231.8 226.4 Machinery and equipment 748.9 705.0 Property, gross 1,013.5 964.0 Less accumulated depreciation (606.1) (579.5) Property, net $ 407.4 $ 384.5 |
Other Balance Sheet Liabilities
Other Balance Sheet Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Balance Sheet Liabilities | Note 9 — OTHER BALANCE SHEET LIABILITIES Other liabilities at December 31, 2019 and 2018 consist of the following: Accrued expenses and other current liabilities Other non-current liabilities December 31, December 31, (in millions) 2019 2018 2019 2018 Employment costs $ 68.6 $ 47.5 $ 20.5 $ 18.0 Earnouts payable 87.9 18.6 — — Environmental liabilities 11.2 9.9 100.8 102.0 Accrued taxes 165.4 15.3 — — Pension and other post-employment benefits 4.8 4.9 — — Accrued interest 10.0 10.8 — — Dividends payable 15.6 15.6 — — Unrecognized tax benefits 0.7 1.7 11.9 16.1 Other 11.2 4.4 11.1 26.1 Total $ 375.4 $ 128.7 $ 144.3 $ 162.2 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Note 10 — EMPLOYEE BENEFIT PLANS We recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur. These gains and losses are generally only measured annually as of December 31 and, accordingly, are recorded during the fourth quarter of each year. We recognized a benefit of $9.6 million in the fourth quarter of 2019 and charges of $15.6 million and $3.3 million in the fourth quarter of 2018 and 2017, respectively, related to the actuarial losses during the year. All U.S. qualified defined benefit pension plans are frozen, no longer accrue benefits and are closed to new participants. We have foreign pension plans that accrue benefits. The plans generally provide benefit payments using a formula that is based upon employee compensation and length of service. The following tables present the change in benefit obligation, change in plan assets and components of funded status for defined benefit pension and post-retirement health care benefit plans. Pension Benefits Health Care Benefits (in millions) 2019 2018 2019 2018 Change in benefit obligation: Projected benefit obligation - beginning of year $ 462.7 $ 507.7 $ 7.4 $ 8.8 Service cost 0.5 0.6 — — Interest cost 18.2 17.6 0.2 0.3 Actuarial loss (gain) 34.0 (23.9) 0.1 (0.6) Benefits paid (36.9) (37.7) (0.8) (0.8) Other (0.5) (1.6) 0.2 (0.3) Projected benefit obligation - end of year $ 478.0 $ 462.7 $ 7.1 $ 7.4 Projected salary increases (1.9) (1.6) — — Accumulated benefit obligation $ 476.1 $ 461.1 $ 7.1 $ 7.4 Change in plan assets: Plan assets - beginning of year $ 434.4 $ 484.7 $ — $ — Actual return (loss) on plan assets 67.4 (16.4) — — Company contributions 4.4 4.5 0.8 0.8 Benefits paid (36.9) (37.7) (0.8) (0.8) Other (0.2) (0.7) — — Plan assets - end of year $ 469.1 $ 434.4 $ — $ — Unfunded status at end of year $ (8.9) $ (28.3) $ (7.1) $ (7.4) Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows: Pension Benefits Health Care Benefits (in millions) 2019 2018 2019 2018 Non-current assets $ 45.4 $ 23.5 $ — $ — Accrued expenses and other liabilities 4.0 4.1 0.8 0.8 Other non-current liabilities 50.3 47.7 6.3 6.6 As of December 31, 2019 and 2018, we had plans with total projected and accumulated benefit obligations in excess of the related plan assets as follows: Pension Benefits Health Care Benefits (in millions) 2019 2018 2019 2018 Projected benefit obligation $ 58.9 $ 56.4 $ 7.1 $ 7.4 Accumulated benefit obligation 57.0 54.8 7.1 7.4 Fair value of plan assets 4.6 4.6 — — Weighted-average assumptions used to determine benefit obligations at December 31: Pension Benefits Health Care Benefits 2019 2018 2019 2018 Discount rate 3.19 % 4.11 % 3.18 % 3.98 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year N/A N/A 5.88 % 6.09 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A 2027 2027 The following table summarizes the components of net periodic benefit cost or gain that was recognized during each of the years in the three-year period ended December 31, 2019. Pension Benefits Health Care Benefits (in millions) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit costs (gains): Service Cost $ 0.5 $ 0.6 $ 0.6 $ — $ — $ — Interest Cost 18.2 17.6 19.3 0.2 0.3 0.4 Expected return on plan assets (23.7) (23.8) (27.7) — — — Mark-to-market actuarial net losses (gains) (9.7) 16.2 5.0 0.1 (0.6) (1.7) Other — (0.1) — — — — Net periodic cost (benefit) $ (14.7) $ 10.5 $ (2.8) $ 0.3 $ (0.3) $ (1.3) In 2019, we recognized a $9.6 million mark-to-market gain that was primarily the result of actual asset returns that were higher than our assumed returns and mortality assumptions. Partially offsetting the higher asset returns was the decrease in our year end discount rate from 4.11% to 3.19%. In 2018, we recognized a $15.6 million mark-to-market charge that was primarily a result of actual asset returns that were lower than our assumed returns. Partially offsetting the lower asset returns was the increase in our year end discount rates from 3.62% to 4.11%. In 2017, we recognized a $3.3 million mark-to-market charge that was primarily a result of the decrease in our year end discount rates, from 3.97% to 3.62%, and updated mortality assumptions, partially offset by a higher than expected return on assets. Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Health Care Benefits 2019 2018 2017 2019 2018 2017 Discount rate* 4.11 % 3.62 % 3.97 % 3.98 % 3.60 % 4.04 % Expected long-term return on plan assets* 5.68 % 5.09 % 6.08 % — — — Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year N/A N/A N/A 6.09 % 6.29 % 6.52 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A N/A 2027 2027 2027 *The mark-to-market component of net periodic costs is determined based on discount rates as of year-end and actual asset returns during the year. The expected long-term rate of return on pension assets was determined after considering the historical and forward looking long-term asset returns by asset category and the expected investment portfolio mix. Our pension investment strategy is to diversify the portfolio among asset categories to enhance the portfolio’s risk-adjusted return as well as insulate it from exposure to changes in interest rates. Our asset mix considers the duration of plan liabilities, historical and expected returns of the investments, and the funded status of the plan. The pension asset allocation is reviewed and actively managed based on the funded status of the plan. Based on the current funded status of the plan, our pension asset investment allocation guidelines are to invest 83% in fixed income securities and 17% in equity securities. The plan keeps a minimal amount of cash available to fund benefit payments. These investments may include funds of multiple asset investment strategies and funds of hedge funds. The fair values of pension plan assets at December 31, 2019 and 2018, by asset category, are as follows: Fair Value of Plan Assets at December 31, 2019 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 3.7 $ — $ — $ 3.7 Other — — 4.6 4.6 Total $ 3.7 $ — $ 4.6 8.3 Investments measured at NAV: Common collective funds: United States equity 31.7 International equity 31.9 Global equity 15.7 Fixed income 381.5 Total common collective funds 460.8 Total investments at fair value $ 469.1 Fair Value of Plan Assets at December 31, 2018 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 3.7 $ — $ — $ 3.7 Other — — 4.6 4.6 Total $ 3.7 $ — $ 4.6 8.3 Investments at NAV Common collective funds United States equity 14.9 International equity 14.9 Global equity 8.5 Fixed income 387.8 Total common collective funds $ 426.1 Total investments at fair value $ 434.4 Pension Plan Assets Other assets are primarily insurance contracts for international plans. The U.S. equity common collective funds are predominately invested in equity securities actively traded in public markets. The international and global equity common collective funds have broadly diversified investments across economic sectors and focus on low volatility, long-term investments. The fixed income common collective funds consist primarily of publicly traded United States fixed interest obligations (principally investment grade bonds and government securities). Level 1 assets are valued based on quoted market prices. Level 2 investments are valued based on quoted market prices and/or other market data for the same or comparable instruments and transactions of the underlying fixed income investments. The insurance contracts included in the other asset category are valued at the transacted price. Common collective funds are valued at the net asset value of units held by the fund at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The estimated future benefit payments for our pension and health care plans are as follows: (In millions) Pension Benefits Health Care benefits 2020 $ 38.0 $ 0.8 2021 38.4 0.8 2022 36.3 0.7 2023 35.9 0.7 2024 34.6 0.6 2025 through 2029 156.2 2.4 We currently estimate that 2020 employer contributions will be $4.2 million to all qualified and non-qualified pension plans and $0.8 million to all healthcare benefit plans. PolyOne sponsors various voluntary retirement savings plans (RSP). Under the provisions of the plans, eligible employees receive defined Company contributions and are eligible for Company matching contributions based on their eligible earnings contributed to the plan. In addition, we may make discretionary contributions to the plans for eligible employees based on a specific percentage of each employee’s compensation. Following are our contributions to the RSP: (In millions) 2019 2018 2017 Retirement savings match $ 10.4 $ 10.1 $ 9.1 Retirement savings contribution — — 1.6 Total contribution $ 10.4 $ 10.1 $ 10.7 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — COMMITMENTS AND CONTINGENCIES Environmental — We have been notified by federal and state environmental agencies and by private parties that we may be a potentially responsible party (PRP) in connection with the environmental investigation and remediation of certain sites. While government agencies frequently assert that PRPs are jointly and severally liable at these sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative contribution of waste. We may also initiate corrective and preventive environmental projects of our own to ensure safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows. In September 2007, the United States District Court for the Western District of Kentucky in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al. , held that PolyOne must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls), together with certain defense costs of Goodrich Corporation. The rulings also provided that PolyOne can seek indemnification for contamination attributable to Westlake Vinyls. Following the rulings, the parties to the litigation agreed to settle all claims regarding past environmental costs incurred at the site. The settlement agreement provides a mechanism to pursue allocation of future remediation costs at the Calvert City site to Westlake Vinyls. We will adjust our accrual, in the future, consistent with any such future allocation of costs. Additionally, we continue to pursue available insurance coverage related to this matter and recognize gains as we receive reimbursement. The environmental obligation at the site arose as a result of an agreement between The B.F.Goodrich Company (n/k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993. Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither PolyOne nor The Geon Company ever operated the facility. Since 2009, PolyOne, along with respondents Westlake Vinyls and Goodrich Corporation, have worked with the United States Environmental Protection Agency (USEPA) on the investigation of contamination at the site as well as evaluation of potential remedies to address the contamination. The USEPA issued its Record of Decision (ROD) in September 2018, selecting a remedy consistent with our accrual assumptions. In April 2019, the respondents signed an Administrative Settlement Agreement and Order on Consent with the USEPA to conduct the remedial design. In October 2019, the USEPA sent a Special Notice Letter to PolyOne, Westlake Vinyls and Goodrich Corporation inviting negotiation of a Consent Decree to perform the remedial actions at the site. On December 23, 2019, the three companies submitted to the USEPA a Good Faith Offer Letter agreeing to negotiate a Consent Decree, along with a draft proposed Consent Decree and draft remedial action Work Plan. Our current reserve of $100.8 million is consistent with the USEPA's estimates contained in the ROD. On March 13, 2013, PolyOne acquired Spartech Corporation (Spartech). One of Spartech's subsidiaries, Franklin-Burlington Plastics, Inc. (Franklin-Burlington), operated a plastic resin compounding facility in Kearny, New Jersey, located adjacent to the Passaic River. The USEPA requested that companies located in the area of the lower Passaic River, including Franklin-Burlington, cooperate in an investigation of contamination of approximately 17 miles of the lower Passaic River Study Area (the LPRSA). In response, Franklin-Burlington and approximately 70 other companies (collectively, the Cooperating Parties) agreed, pursuant to an Administrative Order on Consent (AOC) with the USEPA, to assume responsibility for development of a Remedial Investigation and Feasibility Study of the LPRSA. Franklin-Burlington has not admitted to any liability or agreed to bear any other costs for remediation or natural resource damage. In 2015, the Cooperating Parties submitted to the USEPA a remedial investigation report and feasibility study for the LPRSA, and are currently engaged in technical discussions with the USEPA to revise and finalize those documents. Neither of those documents contemplates who is responsible for remediation or how such costs might be allocated to PRPs. In March 2016, the USEPA issued a ROD selecting a remedy for an eight-mile portion of the LPRSA at an estimated and discounted cost of $1.4 billion. On March 31, 2016, the USEPA sent a Notice of Potential Liability to over 100 companies, including Franklin-Burlington, and several municipalities for this eight-mile portion. In September 2016, the USEPA reached an agreement with Occidental Chemical Corporation (OCC), which orders OCC to perform the remedial design for the lower eight mile portion of the Passaic River. In September 2017, the USEPA sent a letter to over 80 companies, including Franklin-Burlington, indicating that the USEPA would engage the recipients in an allocation process for the lower eight miles of the LPRSA, and has engaged a third-party allocator as part of that process. Along with other parties, Franklin-Burlington is participating in the development of this allocation process with the allocator retained by the USEPA, and this process is expected to continue into at least 2020. On June 30, 2018, OCC, independent of the USEPA, filed suit against over 100 named entities, including Franklin-Burlington, seeking contribution for past and future costs associated with the remediation of the lower eight-mile portion of the LPRSA. Based on the currently available information, we have not identified evidence that Franklin-Burlington contributed any of the primary contaminants of concern to the lower Passaic River. A timeline as to when an allocation of the remedial costs may be determined is not yet known and any allocation to Franklin-Burlington has not been determined. As a result of these uncertainties, we are unable to estimate a liability related to this matter and, as of December 31, 2019, we have not accrued for costs of remediation related to the lower Passaic River. The Consolidated Balance Sheets include accruals totaling $112.0 million and $111.9 million as of December 31, 2019 and 2018, respectively, based on our estimates of probable future environmental expenditures relating to previously contaminated sites. These undiscounted amounts are included in Accrued expenses and other current liabilities and Other non-current liabilities on the accompanying Consolidated Balance Sheets. The accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology and our view of the most likely remedy. Depending upon the results of future testing, completion and results of remedial investigation and feasibility studies, the ultimate remediation alternatives undertaken, changes in regulations, technology development, new information, newly discovered conditions and other factors, it is reasonably possible that we could incur additional costs in excess of the amount accrued at December 31, 2019. However, such additional costs, if any, cannot be currently estimated. The following table details the changes in the environmental accrued liabilities: (in millions) 2019 2018 2017 Balance at beginning of the year $ 111.9 $ 114.8 $ 114.9 Environmental expenses 10.2 23.1 14.9 Net cash payments (10.3) (26.0) (15.1) Currency translation and other 0.2 — 0.1 Balance at the end of year $ 112.0 $ 111.9 $ 114.8 The environmental expenses noted in the table above are included in Cost of sales in the accompanying Consolidated Statements of Income (Loss), as are insurance recoveries received for previously incurred environmental costs. We received insurance recoveries of $4.5 million, $4.3 million, and $9.1 million in 2019, 2018 and 2017, respectively. Such insurance recoveries are recognized as a gain when received. Other Litigation — We are involved in various pending or threatened claims, lawsuits and administrative proceedings, all arising from the ordinary course of business concerning commercial, product liability, employment and environmental matters that seek remedies or damages. We believe that the probability is remote that losses in excess of the amounts we have accrued would be materially adverse to our financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 — INCOME TAXES Income from continuing operations, before income taxes is summarized below based on the geographic location of the operation to which such earnings are attributable. Income from continuing operations, before income taxes consists of the following: (In millions) 2019 2018 2017 Domestic $ 41.2 $ 4.1 $ 18.0 Foreign 68.2 97.7 93.9 Income from continuing operations, before income taxes $ 109.4 $ 101.8 $ 111.9 A summary of income tax expense from continuing operations is as follows: (In millions) 2019 2018 2017 Current income tax expense (benefit): Domestic - GILTI, FDII, and U.S. tax reform transition tax $ 0.1 $ 5.0 $ 19.9 Domestic - other 24.7 (5.4) (41.4) Foreign 21.9 22.0 23.9 Total current income tax expense $ 46.7 $ 21.6 $ 2.4 Deferred income tax (benefit) expense: Domestic - U.S. tax reform, tax effect on net deferred tax liabilities $ — $ (6.8) $ (20.1) Domestic - other (12.5) 17.9 26.4 Foreign (0.5) (18.3) (7.9) Total deferred income tax (benefit) expense $ (13.0) $ (7.2) $ (1.6) Total income tax expense $ 33.7 $ 14.4 $ 0.8 The Tax Cuts and Jobs Act (TCJA) was enacted on December 22, 2017. Among other things, effective in 2018, the TCJA reduced the US federal corporate tax rate from 35% to 21%, exempts from U.S. federal income taxation dividends from certain foreign corporations to their U.S. shareholders, eliminates or reduces the effect of various federal tax deductions and creates new taxes on certain outbound payments and future foreign earnings generated after 2017. The TCJA required U.S. companies to pay a one-time transition tax on earnings of foreign corporate subsidiaries that were at least ten-percent owned by such U.S. companies and that were previously deferred from U.S. taxation. As of December 31, 2018, we completed our accounting for the tax effects of the enactment of the TCJA. In compliance with the one-year measurement period of the SEC's Staff Accounting Bulletin 118 (SAB 118) (issued December 22, 2017), we have finalized the effects of the TCJA on our existing deferred income tax balances, the one-time transition tax and, as discussed below, the impact the TCJA had on our indefinite reinvestment assertion pursuant to Accounting Principles Board 23 (APB 23). These finalized effects are included as components of income tax expense from continuing operations and are noted in the following tabular reconciliation. As of December 31, 2018, we completed our analysis with respect to the impact of the TCJA on our continuing assertion that our foreign earnings are indefinitely reinvested pursuant to APB 23 of Accounting Standards Codification 740-30 (ASC 740-30). APB 23 provides guidance that US companies do not need to recognize tax effects on foreign earnings that are indefinitely reinvested. Our assertion has changed with respect to certain earnings of foreign affiliates in certain countries, which resulted in a recognition of tax liabilities. As of December 31, 2018, and noted in the following tabular reconciliation, Repatriation of certain foreign earnings from prior and current periods line totaled 9.4%. This consisted of an impact of 7.5% to our provision from a decision to repatriate prior year earnings after completing our analysis with respect to the TCJA and 1.9% pertaining to our decision to repatriate certain current year earnings. For the year ended December 31, 2019, the rate impact was 1.6% pertaining to our decision to repatriate certain current year earnings. The rest of our foreign earnings are indefinitely reinvested pursuant to APB 23 and our policy. No deferred income taxes were recorded on outside basis differences as it was not practicable to determine the provision impact, if any, due to the complexities associated with this calculation. We elected to recognize the resulting tax on GILTI and FDII as a period expense in the period the tax is incurred. A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from continuing operations along with a description of significant or unusual reconciling items is included below. Twelve Months Ended December 31, 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % Foreign tax rate differential: Asia 0.7 0.4 (2.2) Europe (10.3) (11.6) (16.2) Canada and Mexico 0.7 (0.9) (1.6) Total foreign tax rate differential (8.9) (12.1) (20.0) Tax on GILTI 1.9 3.3 — Repatriation on certain foreign earnings from prior and current periods 1.6 9.4 0.8 Net impact of non-deductible acquisition earnouts 2.8 0.2 — Tax on one-time gain from sale of other assets 6.0 — — U.S. tax reform, transition tax 0.2 2.1 17.8 U.S. tax reform, tax effect on net deferred tax liabilities — (5.4) (18.0) Tax impact of FDII deduction (2.0) (0.4) — Research and development credit (2.8) (0.8) (1.4) Domestic production activities deduction — (1.1) (2.4) Amended prior period tax returns and corresponding favorable audit adjustments (0.7) — (6.8) Tax benefits on certain foreign investments — — (12.8) State and local tax, net 4.2 2.3 0.2 Foreign permanent items 7.5 (1.6) 2.4 Net impact of uncertain tax positions (2.4) (0.6) 4.8 Changes in valuation allowances 1.7 (3.4) 1.4 Other 0.7 1.2 (0.3) Effective income tax rate 30.8 % 14.1 % 0.7 % The effective tax rates for all periods differed from the applicable U.S. federal statutory tax rate as a result of permanent items, state and local income taxes, differences in foreign tax rates and certain unusual items. Permanent items primarily consist of income or expense not taxable or deductible. Significant or unusual items impacting the effective income tax rate are described below. 2019 Significant items The State and local tax, net line included the result from an unfavorable state tax audit decision combined with higher domestic earnings in 2019. Foreign permanent items line included the tax effect of non-deductibility of interest expense related to the receipt of tax-exempt dividends, which caused an unfavorable tax effect of $10.3 million (9.4%) partially offset by the tax impact of other net favorable permanent items of $2.0 million (1.9%). Net impact of uncertain tax positions line resulted from the expiration of statute of limitations and favorable tax settlements. Changes in valuation allowances line in 2019 resulted from foreign operational losses. 2018 Significant items Repatriation of certain foreign earnings from prior and current periods line had an unfavorable tax impact of $10.3 million (9.4%). This consisted of an impact of 7.5% to our provision from a decision to repatriate prior year earnings after completing our analysis with respect to the TCJA and 1.9% pertaining to our decision to repatriate certain current year earnings. State and local tax, net line was unfavorably impacted by a state tax audit decision. Foreign permanent items line included a favorable tax treatment of a foreign intellectual property transaction. The benefit reflected in the Changes in valuation allowances line resulted from the realizability of a deferred tax asset for one of our foreign entities. 2017 Significant items The Foreign tax rate differential line item primarily related to a European legal entity realignment. Tax benefits on certain foreign investments was a result of distributions from foreign subsidiaries with net foreign tax credits. Components of our deferred tax assets (liabilities) as of December 31, 2019 and 2018 were as follows: (In millions) 2019 2018 Deferred tax assets: Pension and other post-retirement benefits $ 2.7 $ 7.6 Employment costs 20.5 20.1 Environmental reserves 27.9 28.2 Net operating loss carryforwards 45.3 48.8 Operating leases 18.0 — Other, net 42.4 39.8 Gross deferred tax assets $ 156.8 $ 144.5 Valuation allowances (16.2) (15.2) Total deferred tax assets, net of valuation allowances $ 140.6 $ 129.3 Deferred tax liabilities: Property, plant and equipment $ (25.9) $ (33.9) Goodwill and intangibles (95.1) (101.5) Operating leases (18.0) — Other, net (14.2) (14.2) Total deferred tax liablities $ (153.2) $ (149.6) Net deferred tax (liabilities) assets $ (12.6) $ (20.3) Consolidated Balance Sheets: Non-current deferred income tax assets $ 50.9 $ 48.8 Non-current deferred income tax liabilities $ (63.5) $ (69.1) As of December 31, 2019, we had gross state net operating loss carryforwards of $32.5 million that expire between 2020 and 2038. Various foreign subsidiaries have gross net operating loss carryforwards totaling $155.6 million that expire between 2020 and 2036 or that have indefinite carryforward periods. Total tax valuation allowances increased $1.0 million from the prior year primarily due to additional losses from certain foreign entities. We have provided valuation allowances of $14.3 million against certain foreign and state net operating loss carryforwards that are expected to expire prior to utilization. We decided to repatriate certain current year foreign earnings which we expect to receive in 2020 for which the provision impact was 1.6% in the current year and 9.4% in 2018, included in the tabular rate reconciliation above. The balance of the related accrual is included in the above Other, net deferred tax liabilities line ($6.7 million and $8.2 million, respectively) above. As of December 31, 2019, no provision has been made for income taxes on the undistributed earnings of certain non-U.S. subsidiaries of approximately $395 million as these amounts continue to be indefinitely reinvested as consistent with our policy. We made worldwide income tax payments of $45.7 million and received refunds of $20.0 million in 2019. We made worldwide income tax payments of $40.5 million and $51.1 million in 2018 and 2017, respectively, and received refunds of $29.9 million and $6.7 million in 2018 and 2017, respectively. The Company records provisions for uncertain tax positions in accordance with ASC Topic 740, Income Taxes. A reconciliation of unrecognized tax benefits is as follows: Unrecognized Tax Benefits (In millions) 2019 2018 2017 Balance as of January 1, $ 16.4 $ 17.8 $ 7.1 Increases as a result of positions taken during current year 1.1 1.3 9.2 Increases as a result of positions taken for prior years 0.4 1.1 1.8 Reductions for tax positions of prior years (0.7) (2.6) (0.3) Decreases as a result of lapse of statute of limitations (5.0) (0.2) — Decreases relating to settlements with taxing authorities — (0.5) — Other, net (1.0) (0.5) — Balance as of December 31, $ 11.2 $ 16.4 $ 17.8 We recognize interest and penalties related to uncertain tax positions in the provision for income taxes. As of December 31, 2019 and 2018, we had $1.4 million and $2.5 million accrued for interest and penalties, respectively. Although the timing and outcome of tax settlements are uncertain, it is reasonably possible that during the next twelve months a reduction in unrecognized tax benefits may occur up to $0.2 million based on the outcome of tax examinations and the expiration of statutes of limitations. If all unrecognized tax benefits were recognized, the net impact on the provision for income tax expense would be a benefit of $4.9 million. The Company is currently being audited by federal, state and foreign taxing jurisdictions. We are no longer subject to U.S. federal income tax examinations for periods preceding 2016. With limited exceptions, we are no longer subject to state tax and foreign tax examinations for periods preceding 2015. For the income tax impact associated with PP&S and DSS, refer to Note 3, Discontinued Operations . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 13 — SHARE-BASED COMPENSATION Share-based compensation cost is based on the value of the portion of share-based payment awards that are ultimately expected to vest during the period. Share-based compensation cost recognized in the accompanying Consolidated Statements of Income (Loss) includes compensation cost for share-based payment awards based on the grant date fair value estimated in accordance with the provision of FASB ASC Topic 718, Compensation — Stock Compensation . Share-based compensation expense is based on awards expected to vest and therefore has been reduced for estimated forfeitures. Equity and Performance Incentive Plans The PolyOne Corporation 2017 Equity and Incentive Compensation Plan reserved 2.5 million common shares for the award of a variety of share-based compensation alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all share-based grants and awards that are earned and exercised will be issued from PolyOne common shares that are held in treasury. Share-based compensation is included in Selling and administrative expense in the accompanying Consolidated Statements of Income (Loss). A summary of compensation expense by type of award follows: (In millions) 2019 2018 2017 Stock appreciation rights $ 4.8 $ 4.2 $ 4.0 Performance shares 0.3 0.4 0.5 Restricted stock units 6.4 5.6 5.1 Total share-based compensation $ 11.5 $ 10.2 $ 9.6 Stock Appreciation Rights During the years ended December 31, 2019, 2018 and 2017, the total number of SARs granted was 0.6 million, 0.3 million and 0.5 million, respectively. Awards vest in one-third increments upon the later of the attainment of time-based vesting over a three The SARs were valued using a Monte Carlo simulation method as the vesting is dependent on the achievement of certain stock price targets. The SARs have time and market-based vesting conditions but vest no earlier than their three year graded vesting schedule. The expected term is an output from the Monte Carlo model and is derived from employee exercise assumptions that are based on PolyOne historical exercise experience. The expected volatility was determined based on the average weekly volatility for our common shares for the contractual life of the awards. The expected dividend assumption was determined based upon PolyOne's dividend yield at the time of grant. The risk-free rate of return was based on available yields on U.S. Treasury bills of the same duration as the contractual life of the awards. Forfeitures were estimated at 3% per year based on our historical experience. The following is a summary of the weighted average assumptions related to the grants issued during 2019, 2018 and 2017: 2019 2018 2017 Expected volatility 40.0% 41.0% 41.0% Expected dividends 2.47% 1.67% 1.58% Expected term (in years) 6.6 6.5 6.5 Risk-free rate 2.78% 3.06% 2.72% Value of SARs granted $10.13 $14.82 $12.01 A summary of SAR activity for 2019 is presented below: Stock Appreciation Rights Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic value Outstanding as of January 1, 2019 1.8 $ 32.14 6.8 $ 4.0 Granted 0.6 31.54 Exercised (0.1) 22.47 Forfeited or expired (0.1) 35.46 Outstanding as of December 31, 2019 2.2 $ 32.04 6.6 $ 12.3 Vested and exercisable as of December 31, 2019 1.2 $ 29.13 5.1 $ 9.3 The total intrinsic value of SARs exercised during 2019, 2018 and 2017 was $0.4 million, $6.5 million and $7.6 million, respectively. As of December 31, 2019, there was $2.7 million of total unrecognized compensation cost related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 34 months. Restricted Stock Units RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are met. During 2019, 2018 and 2017, the total number of RSUs granted was 0.2 million, 0.2 million and 0.3 million, respectively. These RSUs, which vest on the third anniversary of the grant date, were granted to executives and other key employees. Compensation expense is measured on the grant date using the quoted market price of our common shares and is recognized on a straight-line basis over the requisite service period. As of December 31, 2019, 0.6 million RSUs remain unvested with a weighted-average grant date fair value of $35.56. Unrecognized compensation cost for RSUs at December 31, 2019 was $6.2 million, which is expected to be recognized over the weighted average remaining vesting period of 21 months. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14 — SEGMENT INFORMATION Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for purposes of allocating resources to the segments and assessing their performance. Operating income at the segment level does not include: corporate general and administrative expenses that are not allocated to segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phase-in costs; executive separation agreements; share-based compensation costs; asset impairments; environmental remediation costs, along with related gains from insurance recoveries, and other liabilities for facilities no longer owned or closed in prior years; gains and losses on the divestiture of joint ventures and equity investments; actuarial gains and losses associated with our pension and other post-retirement benefit plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in Corporate and eliminations . Segment assets are primarily customer receivables, inventories, net property, plant and equipment, intangible assets and goodwill. Intersegment sales are generally accounted for at prices that approximate those for similar transactions with unaffiliated customers. Corporate and eliminations assets and liabilities primarily include cash, debt, pension and other employee benefits, environmental liabilities, retained assets and liabilities of discontinued operations, and other unallocated corporate assets and liabilities. The accounting policies of each segment are consistent with those described in Note 1, Description of Business and Summary of Significant Accounting Policies . PolyOne has three reportable segments. Previously, PolyOne had five reportable segments. However, as a result of the divestitures of DSS and PP&S, we have removed both as separate operating segments and their results are presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes. The following is a description of each of our three reportable segments. Color, Additives and Inks Color, Additives and Inks is a leading provider of specialized custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, as well as specialty inks, plastisols, and vinyl slush molding solutions. Color and additive solutions include an innovative array of colors, special effects and performance-enhancing and sustainable solutions. When combined with polymer resins, our solutions help customers achieve differentiated specialized colors and effects targeted at the demands of today’s highly design-oriented consumer and industrial end markets. Our additive concentrates encompass a wide variety of performance and process enhancing characteristics and are commonly categorized by the function that they perform, including UV light stabilization and blocking, antimicrobial, anti-static, blowing or foaming, antioxidant, lubricant, oxygen and visible light blocking and productivity enhancement. Of growing importance is our portfolio of additives that enable our customers to achieve their sustainability goals, including improved recyclability, reduced energy use, light weighting, and renewable energy applications. Our colorant and additives concentrates are used in a broad range of polymers, including those used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable markets. We also provide custom-formulated liquid systems that meet a variety of customer needs and chemistries, including polyester, vinyl, natural rubber and latex, polyurethane and silicone. Our offerings also include proprietary inks and latexes for diversified markets such as recreational and athletic apparel, construction and filtration, outdoor furniture and healthcare. Our liquid polymer coatings and additives are largely based on vinyl and are used in a variety of markets, including building and construction, consumer, healthcare, industrial, packaging, textiles, appliances, transportation, and wire and cable. Color, Additives and Inks has manufacturing, sales and service facilities located throughout North America, South America, Europe and Asia. Specialty Engineered Materials Specialty Engineered Materials is a leading provider of specialty and sustainable polymer formulations, services and solutions for designers, assemblers and processors of thermoplastic materials across a wide variety of markets and end-use applications. Our product portfolio, which we believe to be one of the most diverse in our industry, includes specialty formulated high-performance polymer materials that are manufactured using thermoplastic resins and elastomers, which are then combined with advanced polymer additives, reinforcement, filler, colorant and/or biomaterial technologies. We also have what we believe is the broadest composite platform of solutions, which include a full range of products from long glass and carbon fiber technology to thermoset and thermoplastic composites. These solutions meet a wide variety of unique customer requirements for sustainability, in particular light weighting. Our technical and market expertise enables us to expand the performance range and structural properties of traditional engineering-grade thermoplastic resins to meet evolving customer needs. Specialty Engineered Materials has manufacturing, sales and service facilities located throughout North America, Europe, and Asia. Our product development and application reach is further enhanced by the capabilities of our Innovation Centers in the United States, Germany and China, which produce and evaluate prototype and sample parts to help assess end-use performance and guide product development. Our manufacturing capabilities are targeted at meeting our customers’ demand for speed, flexibility and critical quality. Distribution The Distribution business distributes more than 4,000 grades of engineering and commodity grade resins, including PolyOne-produced solutions, principally to the North American, Central American and Asian markets. These products are sold to over 6,500 custom injection molders and extruders who, in turn, convert them into plastic parts that are sold to end-users in a wide range of industries. Representing over 25 major suppliers, we offer our customers a broad product portfolio, just-in-time delivery from multiple stocking locations and local technical support. Expansion in Central America and Asia have bolstered Distribution's ability to serve the specialized needs of customers globally. Financial information by reportable segment is as follows: Year Ended December 31, 2019 (In millions) Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 998.2 $ 5.6 $ 1,003.8 $ 147.4 $ 43.2 $ 21.5 Specialty Engineered Materials 689.6 56.1 745.7 86.8 29.8 23.3 Distribution 1,172.9 19.3 1,192.2 75.4 0.5 1.6 Corporate and eliminations 2.0 (81.0) (79.0) (152.8) 4.6 21.2 Total $ 2,862.7 $ — $ 2,862.7 $ 156.8 $ 78.1 $ 67.6 Year Ended December 31, 2018 (In millions) Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 1,040.6 $ 5.9 $ 1,046.5 $ 158.5 $ 44.3 $ 22.9 Specialty Engineered Materials 593.6 52.2 645.8 72.3 23.2 25.2 Distribution 1,246.8 18.6 1,265.4 71.5 0.7 0.1 Corporate and eliminations — (76.7) (76.7) (123.7) 4.4 8.3 Total $ 2,881.0 $ — $ 2,881.0 $ 178.6 $ 72.6 $ 56.5 Year Ended December 31, 2017 (In millions) Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 877.7 $ 15.5 $ 893.2 $ 138.6 $ 41.2 $ 21.2 Specialty Engineered Materials 574.8 49.5 624.3 75.5 21.1 23.4 Distribution 1,137.8 16.8 1,154.6 72.6 0.8 0.5 Corporate and eliminations — (81.8) (81.8) (113.6) 4.2 9.3 Total $ 2,590.3 $ — $ 2,590.3 $ 173.1 $ 67.3 $ 54.4 Our sales are primarily to customers in the United States, Canada, Mexico, Europe, South America and Asia, and the majority of our assets are located in these same geographic areas. The following is a summary of sales and long-lived assets based on the geographic areas where the sales originated and where the assets are located: (In millions) 2019 2018 2017 Sales: United States $ 1,560.4 $ 1,543.1 $ 1,439.2 Europe 556.2 547.4 455.7 Canada 140.6 142.2 133.8 Asia 316.5 331.8 296.3 Mexico 261.2 296.5 246.2 South America 27.8 20.0 19.1 Total Sales $ 2,862.7 $ 2,881.0 $ 2,590.3 (In millions) 2019 2018 Total Assets: Color, Additives and Inks $ 1,215.8 $ 1,243.5 Specialty Engineered Materials 774.0 599.0 Distribution 235.6 249.0 Corporate and eliminations 1,047.9 377.6 Assets held for sale — 254.2 Total $ 3,273.3 $ 2,723.3 (In millions) 2019 2018 Long lived assets: United States $ 220.0 $ 205.4 Europe 98.1 113.5 Canada 0.1 0.2 Asia 77.3 57.5 Mexico 5.5 6.2 South America 6.4 1.7 Total Long lived assets $ 407.4 $ 384.5 |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 15 — DERIVATIVES AND HEDGING We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. As of December 31, 2019, we had derivatives designated as net investment hedging and cash flow hedging instruments. Net Investment Hedge During October and December 2018, as a means of mitigating the impact of currency fluctuations on our Euro investments in foreign entities, we executed a total of six cross currency swaps, in which we will pay fixed-rate interest in Euros and receive fixed-rate interest in U.S. dollars with a combined notional amount of 250.0 million Euros and which mature in March 2023. This effectively converts a portion of our U.S. Dollar denominated fixed-rate debt to Euro denominated fixed-rate debt. That conversion resulted in net benefits of $8.3 million and $2.0 million for the years ended December 31, 2019 and 2018, respectively, which was recognized within Interest expense, net within the Condensed Consolidated Statements of Income. We designated the swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. For the years ended December 31, 2019 and 2018, gains of $9.1 million and $2.0 million, respectively, were recognized within translation adjustments in AOCI, net of tax. Cash Flow Hedging Instruments In August 2018, we entered into two interest rate swaps with a combined notional amount of $150.0 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $150.0 million of our floating rate debt to a fixed rate. We began to receive floating rate interest payments based upon one month U.S. dollar LIBOR and in return are obligated to pay interest at a fixed rate of 2.732% until November 2022. We have designated these swap contracts as cash flow hedges pursuant to ASC 815, Derivatives and Hedging . The amount of expense recognized within Interest expense, net in our Consolidated Statements of Income (Loss) was $0.7 million and $0.3 million for the years ending December 31, 2019 and 2018, respectively. The amount of loss recognized in AOCI, net of tax was $2.5 million and $1.3 million for the years ended December 31, 2019 and 2018, respectively. All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts present value using market based observable inputs, including interest rate curves and foreign currency rates. The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets is as follows: (In millions) Balance Sheet Location December 31, 2019 December 31, 2018 Assets Cross Currency Swaps (Net Investment Hedge) Other non-current assets $ 14.7 $ 2.6 Liabilities Interest Rate Swap (Fair Value Hedge) Other non-current liabilities $ 5.1 $ 1.7 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 16 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) 2019 Quarters 2018 Quarters (In millions, except per share data) Fourth (2) Third (3) Second (4) First (5) Fourth (6) Third (7) Second (8) First (9) Sales $ 658.6 $ 705.3 $ 748.2 $ 750.6 $ 677.1 $ 729.0 $ 743.9 $ 731.0 Gross Margin 153.3 160.5 175.3 168.1 140.9 157.2 162.9 163.8 Operating Income 20.5 43.1 46.1 47.1 30.2 48.7 49.6 50.1 Net income (loss) from continuing operations 6.4 23.6 23.2 22.5 (1.5) 32.5 29.4 27.0 Net income from continuing operations attributable to PolyOne Shareholders 6.4 23.5 23.2 22.4 (1.3) 32.5 29.5 27.0 Income (loss) from discontinued operations, net of income taxes 458.9 19.5 18.9 15.8 12.7 17.7 21.8 19.9 Net income (loss) attributable to PolyOne common shareholders $ 465.3 $ 43.0 $ 42.1 $ 38.2 $ 11.4 $ 50.2 $ 51.3 $ 46.9 Earnings (loss) per share from continuing operations attributable to PolyOne shareholders: (1) Basic earnings per share $ 0.08 $ 0.31 $ 0.30 $ 0.29 $ (0.02) $ 0.41 $ 0.37 $ 0.34 Diluted earnings per share $ 0.08 $ 0.30 $ 0.30 $ 0.29 $ (0.02) $ 0.40 $ 0.37 $ 0.33 Earnings (loss) per share from discontinued operations: (1) Basic earnings per share $ 5.97 $ 0.25 $ 0.24 $ 0.20 $ 0.16 $ 0.22 $ 0.27 $ 0.25 Diluted earnings per share $ 5.92 $ 0.25 $ 0.24 $ 0.20 $ 0.16 $ 0.22 $ 0.27 $ 0.24 Total earnings (loss) per share attributable to PolyOne shareholders: (1) Basic earnings per share $ 6.05 $ 0.56 $ 0.54 $ 0.49 $ 0.15 $ 0.63 $ 0.64 $ 0.58 Diluted earnings per share $ 6.00 $ 0.56 $ 0.54 $ 0.49 $ 0.14 $ 0.62 $ 0.63 $ 0.58 (1) Per share amounts for each quarter and the full year have been computed separately. The sum of the quarterly amounts may not equal the annual amounts presented because of the differences in average shares outstanding during each period. (2) Included for the fourth quarter 2019 are: 1) acquisition charges and earnout adjustments of $20.9 million, 2) mark-to-market pension and other post-retirement gains of $9.6 million, 3) restructuring activities of $4.1 million, 4) legal costs of $1.9 million, and 5) an after-tax gain on the sale of discontinued operations of $457.7 million. (3) Included for the third quarter 2019 are: 1) acquisition charges and earnout adjustments of $11.1 million, 2) environmental remediation expenses of $6.4 million, and 3) legal costs of $1.6 million. (4) Included for the second quarter 2019 are: 1) acquisition related charges of $10.7 million, 2) legal expenses of $3.7 million, 3) restructuring charges of $2.3 million, and 4) environmental remediation expenses of $1.9 million. (5) Included for the first quarter 2019 are: 1) restructuring expenses of $3.9 million, 2) legal expenses of $2.4 million, 3) acquisition related charges of $2.2 million, and 4) environmental remediation expenses of $2.1 million. (6) Included for the fourth quarter 2018 are: 1) mark-to-market pension and other post-retirement charge of $15.6 million, 2) environmental remediation costs of $3.9 million and 3) acquisition related costs and adjustments of $1.5 million. (7) Included for the third quarter 2018 are: 1) environmental remediation costs of $7.4 million and 2) a gain related to the reimbursement of previously incurred environmental costs of $1.5 million. (8) Included for the second quarter 2018 are: 1) environmental remediation costs of $8.7 million, 2) acquisition related costs and adjustments of $1.9 million and 3) a gain related to the reimbursement of previously incurred environmental costs of $1.6 million. (9) Included for the first quarter 2018 are: 1) environmental remediation costs of $3.1 million and 2) acquisition related costs and adjustments of $1.9 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 — SUBSEQUENT EVENTS In February 2020, we received net proceeds of approximately $496.8 million, after deducting the underwriters' discount but before deducting expenses, from the issuance of common shares in an underwritten public offering (the Equity Offering). For additional disclosure and detail, see Note 2, Business Combinations . |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Adopted and Accounting Standards Not Yet Adopted | Accounting Standards Adopted On January 1, 2019, the Company adopted Accounting Standards Codification (ASC) 842, Leases (ASC 842). ASC 842 was issued to increase transparency and comparability among entities by recognizing right-of-use assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. We elected to transition to ASC 842 using the option to apply the standard on its effective date, January 1, 2019. The comparative periods presented reflect the former lease accounting guidance and the required comparative disclosures are included in Note 6, Leasing Arrangements . There was not a material cumulative-effect adjustment to our beginning retained earnings as a result of adopting ASC 842. We have recognized additional operating lease assets and obligations of $72.3 million and $63.8 million as of January 1, 2019 and December 31, 2019, respectively. We elected to not reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases that commenced prior to January 1, 2019. Additionally, we elected to not use hindsight to determine lease terms and to not separate non-lease components within our lease portfolio. For additional disclosure and detail, see Note 6, Leasing Arrangements . In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). This standard requires the presentation of the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. All other components of net periodic benefit cost must be presented below operating income. The Company has adopted ASU 2017-07 on January 1, 2018. ASU 2017-07 provides a practical expedient to utilize previously disclosed components of net periodic benefit costs as an estimate for retrospective presentation. Utilizing this practical expedient, the Company reclassified non-service components of net periodic benefit cost from Cost of sales and Selling and administrative expense into Other income, net on the Consolidated Statements of Income. The adoption of ASU 2017-07 resulted in $9.6 million of costs for the year ended December 31, 2018 and a gain of $4.7 million for the year ended December 31, 2017 of the non-service components of net periodic benefit presented in Other income, net. For additional detail on the components of our annual net periodic benefit cost, see Note 10, Employee Benefit Plans . In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other than Inventory (ASU 2016-16), which requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense or benefit in the period the sale or transfer occurs. We recognized an adjustment of $17.0 million to beginning retained earnings upon adoption of this standard on January 1, 2018 from transactions completed as of December 31, 2017. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 changes the impairment model for most financial instruments. Current guidance requires the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. Under ASU 2016-13, the Company will be required to use a current expected credit loss model (CECL) that will immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of this update, |
Consolidation and Basis Of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of PolyOne and its subsidiaries. All majority-owned affiliates over which we have control are consolidated. Transactions with related parties, including joint ventures, are in the ordinary course of business. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of less than three months to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsWe evaluate the collectability of receivables based on a combination of factors, each of which are adjusted if specific circumstances change. We reserve for amounts determined to be uncollectible based on a specific customer’s inability to meet its financial obligation to us. We also record a general reserve based on the age of receivables past due, economic conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit insurance. |
Inventories | InventoriesExternal purchases of raw materials and finished goods are valued at weighted average cost. Raw materials and finished goods are stated at the lower of cost or market using the first-in, first-out (FIFO) method. |
Long-lived Assets | Long-lived Assets Property, plant and equipment is carried at cost, net of depreciation and amortization that is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from three We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balance is removed from the respective account, and the resulting net amount, less any proceeds, is included as a component of income from continuing operations in the accompanying Consolidated Statements of Income (Loss). |
Leases | We account for operating and capital leases under the provisions of FASB ASC Topic 842, Leases. |
Intangible Assets | Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The remaining useful lives range up to 20 years. |
Impairment or Disposal of Long-Lived Assets | We assess the recoverability of long-lived assets when events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected future undiscounted cash flows associated with the asset. We measure the amount of impairment of long-lived assets as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined based on projected discounted future cash flows or appraised values. |
Goodwill and Indefinite Lived Intangible Assets | Goodwill and Indefinite Lived Intangible Assets In accordance with the provisions of FASB ASC Topic 350, Intangibles — Goodwill and Other , we assess the fair value of goodwill, quantitatively or qualitatively, on an annual basis or at an interim date if potential impairment indicators are present. Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested for impairment, quantitatively or qualitatively, at the reporting unit level. Our reporting units have been identified at the operating segment level, or in most cases, one level below the operating segment level. Goodwill is allocated to the reporting units based on the estimated fair value at the date of acquisition. Our annual measurement date for testing impairment of goodwill and indefinite-lived intangibles is October 1. We completed our testing of impairment as of October 1, noting no impairment in 2019, 2018 or 2017. There are no reporting units identified as at-risk of future impairment. The future occurrence of a potential indicator of impairment would require an interim assessment for some or all of the reporting units prior to the next required annual assessment on October 1, 2020. We test our goodwill either quantitatively or qualitatively for impairment. For our quantitative approach, we use an income approach to estimate the fair value of our reporting units. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs and number of units, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. We validate our estimates of fair value under the income approach by considering the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions. A qualitative approach for both goodwill and indefinite-lived intangible assets is performed if the last quantitative test exceeded certain thresholds. During our qualitative approach, we assess whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we determine it is more likely than not that the fair value is less than carrying value, a quantitative impairment test is performed for each asset, as described above. Indefinite-lived intangible assets primarily consist of the GLS, ColorMatrix, Gordon Composites, and Fiber-Line trade names. Indefinite-lived intangible assets are tested, quantitatively or qualitatively, for impairment annually at the same time we test goodwill for impairment. For our quantitative approach, the implied fair value of indefinite-lived intangible assets is determined based on significant unobservable inputs, as summarized below. The fair value of the trade names is calculated using a “relief from royalty” methodology. This approach involves two steps (1) estimating reasonable royalty rates for the trade name and (2) applying this royalty rate to a net sales stream and discounting the resulting cash flows to determine fair value using a weighted-average cost of capital that is determined based on current market conditions. This fair value is then compared with the carrying value of the trade name. |
Litigation Reserves | Litigation Reserves FASB ASC Topic 450, Contingencies, |
Derivative Financial Instruments | Derivative Financial Instruments FASB ASC Topic 815, Derivative and Hedging , requires that all derivative financial instruments, such as foreign exchange contracts, be recognized in the financial statements and measured at fair value, regardless of the purpose or intent in holding them. We are exposed to foreign currency changes and to changes in cash flows due to changes in our contractually specified interest rates (e.g., LIBOR) in the normal course of business. We have established policies and procedures that manage this exposure through the use of financial instruments. By policy, we do not enter into these instruments for trading purposes or speculation. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, in accordance with ASU 2017-12, we assess at inception whether the financial instruments The net interest payments accrued each month for effective instruments designated as a hedge are reflected in net income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded as a component of A ccumulated Other Comprehensive Income (AOCI) |
Pension and Other Post-Retirement Plans | Pension and Other Post-retirement Plans We account for our pensions and other post-retirement benefits in accordance with FASB ASC Topic 715, Compensation — Retirement Benefits |
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC Topic 820, Fair Value Measurements and Disclosures, |
Foreign Currency Translation | Foreign Currency Translation Revenues and expenses are translated at average currency exchange rates during the related period. Assets and liabilities of foreign subsidiaries are translated using the exchange rate at the end of the period. The resulting translation adjustments are recorded as accumulated other comprehensive income or loss. Gains and losses resulting from foreign currency transactions, including intercompany transactions that are not considered long-term investments, are included in Other income (expense), net in the accompanying Consolidated Statements of Income (Loss). |
Revenue Recognition | Revenue RecognitionWe recognize revenue once control of the product is transferred to the customer, which typically occurs when products are shipped from our facilities. |
Shipping and Handling Costs | Shipping and Handling CostsShipping and handling costs are included in cost of sales. |
Research and Development Expense | Research and Development Expense Research and development costs of $50.6 million in 2019, $49.6 million in 2018 and $45.3 million in 2017 are charged to expense as incurred. |
Environmental Costs | Environmental CostsWe expense costs that are associated with managing hazardous substances and pollution in ongoing operations on a current basis. Costs associated with environmental contamination are accrued when it becomes probable that a liability has been incurred and our proportionate share of the cost can be reasonably estimated. Any such provision is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated range, when a single best estimate is not determinable. In some cases, the Company may be able to recover a portion of the costs relating to these obligations from insurers or other third parties; however, the Company records such amounts only when they are collected. |
Share-Based Compensation | Share-Based Compensation We account for share-based compensation under the provisions of FASB ASC Topic 718, Compensation - Stock Compensation |
Income Taxes | Income Taxes Deferred income tax liabilities and assets are determined based upon the differences between the financial reporting and tax basis of assets and liabilities and are measured using the tax rate and laws currently in effect. In accordance with FASB ASC Topic 740, Income Taxes |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss in 2019, 2018 and 2017 were as follows: (In millions) Cumulative Translation Adjustment and Related Hedging Instruments Pension and other post-retirement benefits Cash Flow Hedges Other Total Balance at January 1, 2017 $ (99.8) $ 5.2 $ — $ 0.4 $ (94.2) Translation Adjustments 41.2 — — — 41.2 Balance at December 31, 2017 (58.6) 5.2 — 0.4 (53.0) Translation Adjustments (25.6) — — — (25.6) Unrealized losses (2.0) — (1.3) — (3.3) Other — — — (0.4) (0.4) Balance at December 31, 2018 (86.2) 5.2 (1.3) — (82.3) Translation Adjustments (6.9) — — — (6.9) Unrealized gains (losses) 9.1 — (2.5) — 6.6 Balance at December 31, 2019 $ (84.0) $ 5.2 $ (3.8) $ — $ (82.6) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The fair value of intangible assets acquired during the year ended December 31, 2019, including their estimated useful lives are as follows: (In millions) Fair Value Useful Life Customer relationships $ 9.0 16 Patents, technology and other 58.9 5 - 19 Indefinite-lived trade names 9.2 N/A Total $ 77.1 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table summarizes the discontinued operations associated with DSS for the years ended December 31, 2018 and 2017, which is reflected within the Loss from discontinued operations, net of income taxes line of the Consolidated Statements of Income (Loss): (In millions) 2018 2017 Sales $ — $ 222.1 Loss on sale $ (1.8) $ (295.6) Loss from Operations — (8.6) Loss before taxes (1.8) (304.2) Income tax benefit 0.5 73.0 Loss from discontinued operations, net of taxes $ (1.3) $ (231.2) The following table summarizes the discontinued operations associated with PP&S for the years ended December 31, 2019, 2018 and 2017, which is reflected within the Income (loss) from discontinued operations, net of income taxes line of the Consolidated Statements of Income (Loss): (In millions) 2019 2018 2017 Sales $ 488.9 $ 652.4 $ 639.6 Cost of sales (390.1) (532.3) (517.1) Selling and administrative expense (28.0) (24.7) (22.1) Gain on sale 591.2 — — Pretax income of discontinued operations 662.0 95.4 100.4 Income tax expense (148.9) (22.0) (37.9) Income from discontinued operations, net of taxes $ 513.1 $ 73.4 $ 62.5 The following table summarizes the major classes of assets and liabilities of PP&S that were classified as held for sale in the consolidated balance sheets as of December 31, 2018: Year Ended December 31, (In millions) 2018 Assets: Current assets: Accounts receivable, net $ 66.2 Inventories, net 60.1 Other current assets 3.4 Current assets held for sale 129.7 Non-current assets: Property, net $ 110.9 Goodwill 11.2 Other non-current assets 2.4 Non-current assets held for sale 124.5 Total assets held for sale $ 254.2 Liabilities Current liabilities: Accounts payable $ 94.0 Other current liabilities 10.5 Current liabilities held for sale 104.5 Non-current liabilities held for sale 3.3 Total liabilities held for sale $ 107.8 The following table presents the depreciation, amortization, and capital expenditures of our discontinued operations for the twelve months ended December 31, 2019, 2018 and 2017. There were no other significant operating or investing non-cash items for the twelve months ended December 31, 2019, 2018 and 2017. Year Ended December 31, (In millions) 2019 2018 2017 Depreciation and amortization $ 9.4 $ 15.9 $ 30.1 Capital Expenditures 14.1 19.5 25.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Operating Segment | Goodwill as of December 31, 2019 and 2018 and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks PolyOne Distribution Total Balance at January 1, 2018 $ 173.2 $ 424.5 $ 1.6 $ 599.3 Acquisition of businesses 16.3 25.8 — 42.1 Currency translation (0.6) (1.7) — (2.3) Balance at December 31, 2018 188.9 448.6 1.6 639.1 Acquisition of businesses 47.9 — — 47.9 Currency translation (0.5) (0.8) — (1.3) Balance at December 31, 2019 $ 236.3 $ 447.8 $ 1.6 $ 685.7 |
Carrying Value and Accumulated Amortization of Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2019 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 286.8 $ (89.1) $ (1.0) $ 196.7 Patents, technology and other 244.0 (79.6) (1.3) 163.1 Indefinite-lived trade names 109.5 — — 109.5 Total $ 640.3 $ (168.7) $ (2.3) $ 469.3 As of December 31, 2018 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 277.8 $ (74.8) $ (0.7) $ 202.3 Patents, technology and other 185.1 (64.4) (0.9) 119.8 Indefinite-lived trade names 100.3 — — 100.3 Total $ 563.2 $ (139.2) $ (1.6) $ 422.4 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2019 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 286.8 $ (89.1) $ (1.0) $ 196.7 Patents, technology and other 244.0 (79.6) (1.3) 163.1 Indefinite-lived trade names 109.5 — — 109.5 Total $ 640.3 $ (168.7) $ (2.3) $ 469.3 As of December 31, 2018 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 277.8 $ (74.8) $ (0.7) $ 202.3 Patents, technology and other 185.1 (64.4) (0.9) 119.8 Indefinite-lived trade names 100.3 — — 100.3 Total $ 563.2 $ (139.2) $ (1.6) $ 422.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | We expect finite-lived intangibles amortization expense for the next five years as follows: (In millions) 2020 2021 2022 2023 2024 Expected Amortization Expense $ 28.9 $ 28.7 $ 26.7 $ 24.3 $ 24.2 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | For each of the periods presented, total debt consisted of the following: As of December 31, 2019 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ — $ — $ — 3.90 % Senior secured term loan due 2026 624.5 9.8 614.7 4.01 % 5.25% senior notes due 2023 600.0 3.7 596.3 5.25 % Other Debt 18.3 — 18.3 Total Debt $ 1,242.8 $ 13.5 $ 1,229.3 Less short-term and current portion of long-term debt 18.4 — 18.4 Total long-term debt, net of current portion $ 1,224.4 $ 13.5 $ 1,210.9 As of December 31, 2018 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ 120.1 $ — $ 120.1 3.35 % Senior secured term loan due 2026 631.0 11.2 619.8 3.80 % 5.25% senior notes due 2023 600.0 5.0 595.0 5.25 % Other Debt 20.7 — 20.7 Total Debt $ 1,371.8 $ 16.2 $ 1,355.6 Less short-term and current portion of long-term debt 19.4 — 19.4 Total long-term debt, net of current portion $ 1,352.4 $ 16.2 $ 1,336.2 |
Schedule of Maturities of Long-term Debt | Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows: (In millions) 2020 $ 18.4 2021 7.5 2022 7.2 2023 607.0 2024 7.0 Thereafter 595.7 Aggregate maturities $ 1,242.8 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease cost from continued operations recognized within our Condensed Consolidated Statements of Income were as follows: (in millions) Condensed Consolidated Statements of Income Location Year-Ended December 31, 2019 Lease Cost Operating lease cost Cost of Sales $ 10.9 Operating lease cost Selling and administrative expense 11.3 Other (1) Selling and administrative expense 1.8 Total Operating lease cost $ 24.0 (1) Other lease costs include short-term lease costs and variable lease costs |
Schedule of Maturity of Lease Liabilities | Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one year as of December 31, 2019 are as follows: Maturity Analysis of Lease Liabilities: As of December 31, 2019 (in millions) Operating Leases 2020 $ 24.0 2021 16.0 2022 11.3 2023 8.1 2024 4.5 Thereafter 7.8 Total $ 71.7 Less amount of lease payment representing interest (7.9) Total present value of lease payments $ 63.8 |
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2018 (in millions) Operating Leases 2019 $ 24.5 2020 20.4 2021 12.4 2022 8.5 2023 5.8 Thereafter 9.0 Total $ 80.6 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Components of Inventories, net are as follows: (In millions) December 31, 2019 December 31, 2018 Finished products $ 157.6 $ 174.6 Work in process 8.0 6.4 Raw materials and supplies 95.3 103.6 Inventories, net $ 260.9 $ 284.6 |
Property, Net (Tables)
Property, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Net | Components of Property, net are as follows: (In millions) December 31, 2019 December 31, 2018 Land and land improvements $ 32.8 $ 32.6 Buildings 231.8 226.4 Machinery and equipment 748.9 705.0 Property, gross 1,013.5 964.0 Less accumulated depreciation (606.1) (579.5) Property, net $ 407.4 $ 384.5 |
Other Balance Sheet Liabiliti_2
Other Balance Sheet Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities | Other liabilities at December 31, 2019 and 2018 consist of the following: Accrued expenses and other current liabilities Other non-current liabilities December 31, December 31, (in millions) 2019 2018 2019 2018 Employment costs $ 68.6 $ 47.5 $ 20.5 $ 18.0 Earnouts payable 87.9 18.6 — — Environmental liabilities 11.2 9.9 100.8 102.0 Accrued taxes 165.4 15.3 — — Pension and other post-employment benefits 4.8 4.9 — — Accrued interest 10.0 10.8 — — Dividends payable 15.6 15.6 — — Unrecognized tax benefits 0.7 1.7 11.9 16.1 Other 11.2 4.4 11.1 26.1 Total $ 375.4 $ 128.7 $ 144.3 $ 162.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Change in Benefit Obligation, Change in Plan Assets and Components of Funded Status | The following tables present the change in benefit obligation, change in plan assets and components of funded status for defined benefit pension and post-retirement health care benefit plans. Pension Benefits Health Care Benefits (in millions) 2019 2018 2019 2018 Change in benefit obligation: Projected benefit obligation - beginning of year $ 462.7 $ 507.7 $ 7.4 $ 8.8 Service cost 0.5 0.6 — — Interest cost 18.2 17.6 0.2 0.3 Actuarial loss (gain) 34.0 (23.9) 0.1 (0.6) Benefits paid (36.9) (37.7) (0.8) (0.8) Other (0.5) (1.6) 0.2 (0.3) Projected benefit obligation - end of year $ 478.0 $ 462.7 $ 7.1 $ 7.4 Projected salary increases (1.9) (1.6) — — Accumulated benefit obligation $ 476.1 $ 461.1 $ 7.1 $ 7.4 Change in plan assets: Plan assets - beginning of year $ 434.4 $ 484.7 $ — $ — Actual return (loss) on plan assets 67.4 (16.4) — — Company contributions 4.4 4.5 0.8 0.8 Benefits paid (36.9) (37.7) (0.8) (0.8) Other (0.2) (0.7) — — Plan assets - end of year $ 469.1 $ 434.4 $ — $ — Unfunded status at end of year $ (8.9) $ (28.3) $ (7.1) $ (7.4) |
Amounts Included In Consolidated Balance Sheets | Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows: Pension Benefits Health Care Benefits (in millions) 2019 2018 2019 2018 Non-current assets $ 45.4 $ 23.5 $ — $ — Accrued expenses and other liabilities 4.0 4.1 0.8 0.8 Other non-current liabilities 50.3 47.7 6.3 6.6 |
Schedule of Projected and Accumulated Benefit Obligations in Excess of Plan Assets | As of December 31, 2019 and 2018, we had plans with total projected and accumulated benefit obligations in excess of the related plan assets as follows: Pension Benefits Health Care Benefits (in millions) 2019 2018 2019 2018 Projected benefit obligation $ 58.9 $ 56.4 $ 7.1 $ 7.4 Accumulated benefit obligation 57.0 54.8 7.1 7.4 Fair value of plan assets 4.6 4.6 — — |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost and Benefit Obligation | Weighted-average assumptions used to determine benefit obligations at December 31: Pension Benefits Health Care Benefits 2019 2018 2019 2018 Discount rate 3.19 % 4.11 % 3.18 % 3.98 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year N/A N/A 5.88 % 6.09 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A 2027 2027 Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Health Care Benefits 2019 2018 2017 2019 2018 2017 Discount rate* 4.11 % 3.62 % 3.97 % 3.98 % 3.60 % 4.04 % Expected long-term return on plan assets* 5.68 % 5.09 % 6.08 % — — — Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year N/A N/A N/A 6.09 % 6.29 % 6.52 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A N/A 2027 2027 2027 |
Components of Net Period Benefit Cost | The following table summarizes the components of net periodic benefit cost or gain that was recognized during each of the years in the three-year period ended December 31, 2019. Pension Benefits Health Care Benefits (in millions) 2019 2018 2017 2019 2018 2017 Components of net periodic benefit costs (gains): Service Cost $ 0.5 $ 0.6 $ 0.6 $ — $ — $ — Interest Cost 18.2 17.6 19.3 0.2 0.3 0.4 Expected return on plan assets (23.7) (23.8) (27.7) — — — Mark-to-market actuarial net losses (gains) (9.7) 16.2 5.0 0.1 (0.6) (1.7) Other — (0.1) — — — — Net periodic cost (benefit) $ (14.7) $ 10.5 $ (2.8) $ 0.3 $ (0.3) $ (1.3) |
Fair Values of Pension Plan Assets | The fair values of pension plan assets at December 31, 2019 and 2018, by asset category, are as follows: Fair Value of Plan Assets at December 31, 2019 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 3.7 $ — $ — $ 3.7 Other — — 4.6 4.6 Total $ 3.7 $ — $ 4.6 8.3 Investments measured at NAV: Common collective funds: United States equity 31.7 International equity 31.9 Global equity 15.7 Fixed income 381.5 Total common collective funds 460.8 Total investments at fair value $ 469.1 Fair Value of Plan Assets at December 31, 2018 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 3.7 $ — $ — $ 3.7 Other — — 4.6 4.6 Total $ 3.7 $ — $ 4.6 8.3 Investments at NAV Common collective funds United States equity 14.9 International equity 14.9 Global equity 8.5 Fixed income 387.8 Total common collective funds $ 426.1 Total investments at fair value $ 434.4 |
Estimated Future Benefit Payments | The estimated future benefit payments for our pension and health care plans are as follows: (In millions) Pension Benefits Health Care benefits 2020 $ 38.0 $ 0.8 2021 38.4 0.8 2022 36.3 0.7 2023 35.9 0.7 2024 34.6 0.6 2025 through 2029 156.2 2.4 |
Schedule of Contributions to the Retirement Savings Plan | Following are our contributions to the RSP: (In millions) 2019 2018 2017 Retirement savings match $ 10.4 $ 10.1 $ 9.1 Retirement savings contribution — — 1.6 Total contribution $ 10.4 $ 10.1 $ 10.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Environmental Accrued Liabilities | The following table details the changes in the environmental accrued liabilities: (in millions) 2019 2018 2017 Balance at beginning of the year $ 111.9 $ 114.8 $ 114.9 Environmental expenses 10.2 23.1 14.9 Net cash payments (10.3) (26.0) (15.1) Currency translation and other 0.2 — 0.1 Balance at the end of year $ 112.0 $ 111.9 $ 114.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | Income from continuing operations, before income taxes consists of the following: (In millions) 2019 2018 2017 Domestic $ 41.2 $ 4.1 $ 18.0 Foreign 68.2 97.7 93.9 Income from continuing operations, before income taxes $ 109.4 $ 101.8 $ 111.9 |
Summary of Income Tax (Expense) Benefit | A summary of income tax expense from continuing operations is as follows: (In millions) 2019 2018 2017 Current income tax expense (benefit): Domestic - GILTI, FDII, and U.S. tax reform transition tax $ 0.1 $ 5.0 $ 19.9 Domestic - other 24.7 (5.4) (41.4) Foreign 21.9 22.0 23.9 Total current income tax expense $ 46.7 $ 21.6 $ 2.4 Deferred income tax (benefit) expense: Domestic - U.S. tax reform, tax effect on net deferred tax liabilities $ — $ (6.8) $ (20.1) Domestic - other (12.5) 17.9 26.4 Foreign (0.5) (18.3) (7.9) Total deferred income tax (benefit) expense $ (13.0) $ (7.2) $ (1.6) Total income tax expense $ 33.7 $ 14.4 $ 0.8 |
Difference Between Effective Income Tax Rate And U.S. Statutory Rate | A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from continuing operations along with a description of significant or unusual reconciling items is included below. Twelve Months Ended December 31, 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % Foreign tax rate differential: Asia 0.7 0.4 (2.2) Europe (10.3) (11.6) (16.2) Canada and Mexico 0.7 (0.9) (1.6) Total foreign tax rate differential (8.9) (12.1) (20.0) Tax on GILTI 1.9 3.3 — Repatriation on certain foreign earnings from prior and current periods 1.6 9.4 0.8 Net impact of non-deductible acquisition earnouts 2.8 0.2 — Tax on one-time gain from sale of other assets 6.0 — — U.S. tax reform, transition tax 0.2 2.1 17.8 U.S. tax reform, tax effect on net deferred tax liabilities — (5.4) (18.0) Tax impact of FDII deduction (2.0) (0.4) — Research and development credit (2.8) (0.8) (1.4) Domestic production activities deduction — (1.1) (2.4) Amended prior period tax returns and corresponding favorable audit adjustments (0.7) — (6.8) Tax benefits on certain foreign investments — — (12.8) State and local tax, net 4.2 2.3 0.2 Foreign permanent items 7.5 (1.6) 2.4 Net impact of uncertain tax positions (2.4) (0.6) 4.8 Changes in valuation allowances 1.7 (3.4) 1.4 Other 0.7 1.2 (0.3) Effective income tax rate 30.8 % 14.1 % 0.7 % |
Components of Deferred Tax Liabilities and Assets | Components of our deferred tax assets (liabilities) as of December 31, 2019 and 2018 were as follows: (In millions) 2019 2018 Deferred tax assets: Pension and other post-retirement benefits $ 2.7 $ 7.6 Employment costs 20.5 20.1 Environmental reserves 27.9 28.2 Net operating loss carryforwards 45.3 48.8 Operating leases 18.0 — Other, net 42.4 39.8 Gross deferred tax assets $ 156.8 $ 144.5 Valuation allowances (16.2) (15.2) Total deferred tax assets, net of valuation allowances $ 140.6 $ 129.3 Deferred tax liabilities: Property, plant and equipment $ (25.9) $ (33.9) Goodwill and intangibles (95.1) (101.5) Operating leases (18.0) — Other, net (14.2) (14.2) Total deferred tax liablities $ (153.2) $ (149.6) Net deferred tax (liabilities) assets $ (12.6) $ (20.3) Consolidated Balance Sheets: Non-current deferred income tax assets $ 50.9 $ 48.8 Non-current deferred income tax liabilities $ (63.5) $ (69.1) |
Changes in Unrecognized Tax Benefits | Unrecognized Tax Benefits (In millions) 2019 2018 2017 Balance as of January 1, $ 16.4 $ 17.8 $ 7.1 Increases as a result of positions taken during current year 1.1 1.3 9.2 Increases as a result of positions taken for prior years 0.4 1.1 1.8 Reductions for tax positions of prior years (0.7) (2.6) (0.3) Decreases as a result of lapse of statute of limitations (5.0) (0.2) — Decreases relating to settlements with taxing authorities — (0.5) — Other, net (1.0) (0.5) — Balance as of December 31, $ 11.2 $ 16.4 $ 17.8 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Compensation Expense | Share-based compensation is included in Selling and administrative expense in the accompanying Consolidated Statements of Income (Loss). A summary of compensation expense by type of award follows: (In millions) 2019 2018 2017 Stock appreciation rights $ 4.8 $ 4.2 $ 4.0 Performance shares 0.3 0.4 0.5 Restricted stock units 6.4 5.6 5.1 Total share-based compensation $ 11.5 $ 10.2 $ 9.6 |
Summary of Assumptions Related To Grants | The following is a summary of the weighted average assumptions related to the grants issued during 2019, 2018 and 2017: 2019 2018 2017 Expected volatility 40.0% 41.0% 41.0% Expected dividends 2.47% 1.67% 1.58% Expected term (in years) 6.6 6.5 6.5 Risk-free rate 2.78% 3.06% 2.72% Value of SARs granted $10.13 $14.82 $12.01 |
Summary of Stock Appreciation Rights | A summary of SAR activity for 2019 is presented below: Stock Appreciation Rights Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic value Outstanding as of January 1, 2019 1.8 $ 32.14 6.8 $ 4.0 Granted 0.6 31.54 Exercised (0.1) 22.47 Forfeited or expired (0.1) 35.46 Outstanding as of December 31, 2019 2.2 $ 32.04 6.6 $ 12.3 Vested and exercisable as of December 31, 2019 1.2 $ 29.13 5.1 $ 9.3 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by reportable segment is as follows: Year Ended December 31, 2019 (In millions) Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 998.2 $ 5.6 $ 1,003.8 $ 147.4 $ 43.2 $ 21.5 Specialty Engineered Materials 689.6 56.1 745.7 86.8 29.8 23.3 Distribution 1,172.9 19.3 1,192.2 75.4 0.5 1.6 Corporate and eliminations 2.0 (81.0) (79.0) (152.8) 4.6 21.2 Total $ 2,862.7 $ — $ 2,862.7 $ 156.8 $ 78.1 $ 67.6 Year Ended December 31, 2018 (In millions) Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 1,040.6 $ 5.9 $ 1,046.5 $ 158.5 $ 44.3 $ 22.9 Specialty Engineered Materials 593.6 52.2 645.8 72.3 23.2 25.2 Distribution 1,246.8 18.6 1,265.4 71.5 0.7 0.1 Corporate and eliminations — (76.7) (76.7) (123.7) 4.4 8.3 Total $ 2,881.0 $ — $ 2,881.0 $ 178.6 $ 72.6 $ 56.5 Year Ended December 31, 2017 (In millions) Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 877.7 $ 15.5 $ 893.2 $ 138.6 $ 41.2 $ 21.2 Specialty Engineered Materials 574.8 49.5 624.3 75.5 21.1 23.4 Distribution 1,137.8 16.8 1,154.6 72.6 0.8 0.5 Corporate and eliminations — (81.8) (81.8) (113.6) 4.2 9.3 Total $ 2,590.3 $ — $ 2,590.3 $ 173.1 $ 67.3 $ 54.4 |
Schedule of Revenue and Long-Lived Assets | Our sales are primarily to customers in the United States, Canada, Mexico, Europe, South America and Asia, and the majority of our assets are located in these same geographic areas. The following is a summary of sales and long-lived assets based on the geographic areas where the sales originated and where the assets are located: (In millions) 2019 2018 2017 Sales: United States $ 1,560.4 $ 1,543.1 $ 1,439.2 Europe 556.2 547.4 455.7 Canada 140.6 142.2 133.8 Asia 316.5 331.8 296.3 Mexico 261.2 296.5 246.2 South America 27.8 20.0 19.1 Total Sales $ 2,862.7 $ 2,881.0 $ 2,590.3 (In millions) 2019 2018 Total Assets: Color, Additives and Inks $ 1,215.8 $ 1,243.5 Specialty Engineered Materials 774.0 599.0 Distribution 235.6 249.0 Corporate and eliminations 1,047.9 377.6 Assets held for sale — 254.2 Total $ 3,273.3 $ 2,723.3 (In millions) 2019 2018 Long lived assets: United States $ 220.0 $ 205.4 Europe 98.1 113.5 Canada 0.1 0.2 Asia 77.3 57.5 Mexico 5.5 6.2 South America 6.4 1.7 Total Long lived assets $ 407.4 $ 384.5 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets is as follows: (In millions) Balance Sheet Location December 31, 2019 December 31, 2018 Assets Cross Currency Swaps (Net Investment Hedge) Other non-current assets $ 14.7 $ 2.6 Liabilities Interest Rate Swap (Fair Value Hedge) Other non-current liabilities $ 5.1 $ 1.7 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Data | 2019 Quarters 2018 Quarters (In millions, except per share data) Fourth (2) Third (3) Second (4) First (5) Fourth (6) Third (7) Second (8) First (9) Sales $ 658.6 $ 705.3 $ 748.2 $ 750.6 $ 677.1 $ 729.0 $ 743.9 $ 731.0 Gross Margin 153.3 160.5 175.3 168.1 140.9 157.2 162.9 163.8 Operating Income 20.5 43.1 46.1 47.1 30.2 48.7 49.6 50.1 Net income (loss) from continuing operations 6.4 23.6 23.2 22.5 (1.5) 32.5 29.4 27.0 Net income from continuing operations attributable to PolyOne Shareholders 6.4 23.5 23.2 22.4 (1.3) 32.5 29.5 27.0 Income (loss) from discontinued operations, net of income taxes 458.9 19.5 18.9 15.8 12.7 17.7 21.8 19.9 Net income (loss) attributable to PolyOne common shareholders $ 465.3 $ 43.0 $ 42.1 $ 38.2 $ 11.4 $ 50.2 $ 51.3 $ 46.9 Earnings (loss) per share from continuing operations attributable to PolyOne shareholders: (1) Basic earnings per share $ 0.08 $ 0.31 $ 0.30 $ 0.29 $ (0.02) $ 0.41 $ 0.37 $ 0.34 Diluted earnings per share $ 0.08 $ 0.30 $ 0.30 $ 0.29 $ (0.02) $ 0.40 $ 0.37 $ 0.33 Earnings (loss) per share from discontinued operations: (1) Basic earnings per share $ 5.97 $ 0.25 $ 0.24 $ 0.20 $ 0.16 $ 0.22 $ 0.27 $ 0.25 Diluted earnings per share $ 5.92 $ 0.25 $ 0.24 $ 0.20 $ 0.16 $ 0.22 $ 0.27 $ 0.24 Total earnings (loss) per share attributable to PolyOne shareholders: (1) Basic earnings per share $ 6.05 $ 0.56 $ 0.54 $ 0.49 $ 0.15 $ 0.63 $ 0.64 $ 0.58 Diluted earnings per share $ 6.00 $ 0.56 $ 0.54 $ 0.49 $ 0.14 $ 0.62 $ 0.63 $ 0.58 (1) Per share amounts for each quarter and the full year have been computed separately. The sum of the quarterly amounts may not equal the annual amounts presented because of the differences in average shares outstanding during each period. (2) Included for the fourth quarter 2019 are: 1) acquisition charges and earnout adjustments of $20.9 million, 2) mark-to-market pension and other post-retirement gains of $9.6 million, 3) restructuring activities of $4.1 million, 4) legal costs of $1.9 million, and 5) an after-tax gain on the sale of discontinued operations of $457.7 million. (3) Included for the third quarter 2019 are: 1) acquisition charges and earnout adjustments of $11.1 million, 2) environmental remediation expenses of $6.4 million, and 3) legal costs of $1.6 million. (4) Included for the second quarter 2019 are: 1) acquisition related charges of $10.7 million, 2) legal expenses of $3.7 million, 3) restructuring charges of $2.3 million, and 4) environmental remediation expenses of $1.9 million. (5) Included for the first quarter 2019 are: 1) restructuring expenses of $3.9 million, 2) legal expenses of $2.4 million, 3) acquisition related charges of $2.2 million, and 4) environmental remediation expenses of $2.1 million. (6) Included for the fourth quarter 2018 are: 1) mark-to-market pension and other post-retirement charge of $15.6 million, 2) environmental remediation costs of $3.9 million and 3) acquisition related costs and adjustments of $1.5 million. (7) Included for the third quarter 2018 are: 1) environmental remediation costs of $7.4 million and 2) a gain related to the reimbursement of previously incurred environmental costs of $1.5 million. (8) Included for the second quarter 2018 are: 1) environmental remediation costs of $8.7 million, 2) acquisition related costs and adjustments of $1.9 million and 3) a gain related to the reimbursement of previously incurred environmental costs of $1.6 million. (9) Included for the first quarter 2018 are: 1) environmental remediation costs of $3.1 million and 2) acquisition related costs and adjustments of $1.9 million. |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 3 | 5 | |||
Operating lease assets, net | $ 63,800,000 | ||||
Operating lease liabilities | 63,800,000 | ||||
Allowance for doubtful accounts | 2,600,000 | $ 2,300,000 | |||
Impairment of long-lived assets | 0 | 0 | $ 0 | ||
Impairment of goodwill | 0 | 0 | 0 | ||
Research and development costs | $ 50,600,000 | 49,600,000 | 45,300,000 | ||
Minimum | Machinery and equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment useful lives | 3 years | ||||
Maximum | |||||
Accounting Policies [Line Items] | |||||
Finite-lived intangible asset useful life | 20 years | ||||
Maximum | Machinery and equipment | |||||
Accounting Policies [Line Items] | |||||
Property and equipment useful lives | 15 years | ||||
Maximum | Buildings | |||||
Accounting Policies [Line Items] | |||||
Property and equipment useful lives | 40 years | ||||
Maximum | Software | |||||
Accounting Policies [Line Items] | |||||
Property and equipment useful lives | 10 years | ||||
Accounting Standards Update 2016-02 | |||||
Accounting Policies [Line Items] | |||||
Operating lease assets, net | $ 72,300,000 | ||||
Operating lease liabilities | $ 72,300,000 | ||||
Accounting Standards Update 2017-07 | Other Income | |||||
Accounting Policies [Line Items] | |||||
Non-service components of net periodic benefit costs (gains) | $ 9,600,000 | $ (4,700,000) | |||
Accounting Standards Update 2016-16 | Retained Earnings | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect of adoption | $ 17,000,000 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | $ 540.6 | $ 599.4 | $ 725.5 |
Translation Adjustments | (6.9) | (25.6) | 41.2 |
Unrealized gains (losses), cash flow hedge | (2.5) | (1.3) | 0 |
Unrealized gains (losses), net investment and cash flow hedge | 6.6 | (3.3) | |
Other | (0.4) | ||
Ending Balance | 1,052.7 | 540.6 | 599.4 |
Cumulative Translation Adjustment and Related Hedging Instruments | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (86.2) | (58.6) | (99.8) |
Translation Adjustments | (6.9) | (25.6) | 41.2 |
Unrealized gains (losses), net investment hedging | 9.1 | (2) | |
Ending Balance | (84) | (86.2) | (58.6) |
Pension and other post-retirement benefits | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 5.2 | 5.2 | 5.2 |
Ending Balance | 5.2 | 5.2 | 5.2 |
Cash Flow Hedges | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (1.3) | 0 | 0 |
Unrealized gains (losses), cash flow hedge | (2.5) | (1.3) | |
Ending Balance | (3.8) | (1.3) | 0 |
Other | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 0 | 0.4 | 0.4 |
Other | (0.4) | ||
Ending Balance | 0 | 0 | 0.4 |
Total | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (82.3) | (53) | (94.2) |
Ending Balance | $ (82.6) | $ (82.3) | $ (53) |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | Dec. 19, 2019USD ($) | Jan. 02, 2019USD ($) | May 31, 2018USD ($)period | Feb. 29, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Business acquisitions, net of cash acquired | $ 119,600,000 | $ 98,600,000 | $ 163,800,000 | ||||
Intangible assets, other than goodwill | 77,100,000 | ||||||
Goodwill | 685,700,000 | $ 639,100,000 | $ 599,300,000 | ||||
Contingent liabilities | 87,900,000 | ||||||
Increase to contingent liabilities | 36,400,000 | ||||||
Fiber-Line | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisitions, net of cash acquired | $ 152,700,000 | ||||||
Intangible assets, other than goodwill | 77,100,000 | ||||||
Goodwill | 47,000,000 | ||||||
Net working capital | 24,900,000 | ||||||
Goodwill, deductible for tax purposes | $ 22,900,000 | ||||||
Revenues | $ 114,700,000 | ||||||
Contingent consideration, earn-out period | 2 years | ||||||
Earn-out ceiling | $ 70,000,000 | ||||||
Number of annual earn-out periods | period | 2 | ||||||
Earn-out floor | $ 55,000,000 | ||||||
Fiber-Line | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset useful life | 5 years | ||||||
Fiber-Line | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset useful life | 19 years | ||||||
PlastiComp, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration, earn-out period | 2 years | ||||||
Earn-out ceiling | $ 35,000,000 | ||||||
Bridge Facility | Bridge Loan | Clariant | |||||||
Business Acquisition [Line Items] | |||||||
Debt term | 12 months | ||||||
Maximum borrowing capacity | $ 1,150,000,000 | ||||||
Forecast [Member] | Clariant | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisitions, net of cash acquired | $ 1,450,000,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Intangible Assets Acquired (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Intangible assets, other than goodwill | $ 77.1 |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets, other than goodwill | $ 9 |
Finite-lived intangible asset useful life | 16 years |
Patents, technology and other | |
Business Acquisition [Line Items] | |
Intangible assets, other than goodwill | $ 58.9 |
Patents, technology and other | Minimum | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset useful life | 5 years |
Patents, technology and other | Maximum | |
Business Acquisition [Line Items] | |
Finite-lived intangible asset useful life | 19 years |
Indefinite-lived trade names | |
Business Acquisition [Line Items] | |
Intangible assets, other than goodwill | $ 9.2 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | Oct. 25, 2019 | Dec. 31, 2019 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 19, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (loss) on sale of business, net of tax | $ 457.7 | $ 457.7 | $ 0 | $ (227.7) | |||
Designed Structures and Solutions | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sales price of business | $ 115 | ||||||
Gain (loss) on sale of business, net of tax | $ (229) | ||||||
Performance Products And Solutions | Discontinued Operations, Disposed of by Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sales price of business | $ 775 | ||||||
Gain (loss) on sale of business, net of tax | $ 457.7 | ||||||
Distribution agreement, term | 4 years | ||||||
Contract manufacturing and supply agreement, term | 2 years |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Current assets held for sale | $ 0 | $ 129.7 | |
Non-current assets: | |||
Non-current assets held for sale | 0 | 124.5 | |
Total assets held for sale | 0 | 254.2 | |
Current liabilities: | |||
Current liabilities held for sale | 0 | 104.5 | |
Non-current liabilities held for sale | 0 | 3.3 | |
Cash Flow Information | |||
Depreciation and amortization | 9.4 | 15.9 | $ 30.1 |
Capital Expenditures | 14.1 | 19.5 | 25.2 |
Designed Structures and Solutions | Discontinued Operations, Disposed of by Sale | |||
Income Statement Information | |||
Sales | 0 | 222.1 | |
Gain (loss) on sale | (1.8) | (295.6) | |
Loss from Operations | 0 | (8.6) | |
Income (loss) before taxes | (1.8) | (304.2) | |
Income tax benefit (expense) | 0.5 | 73 | |
Income (loss) from discontinued operations, net of taxes | (1.3) | (231.2) | |
Performance Products And Solutions | Discontinued Operations, Disposed of by Sale | |||
Income Statement Information | |||
Sales | 488.9 | ||
Cost of sales | (390.1) | ||
Selling and administrative expense | (28) | ||
Gain (loss) on sale | 591.2 | ||
Income (loss) before taxes | 662 | ||
Income tax benefit (expense) | (148.9) | ||
Income (loss) from discontinued operations, net of taxes | $ 513.1 | ||
Performance Products And Solutions | Discontinued Operations, Held-for-sale | |||
Income Statement Information | |||
Sales | 652.4 | 639.6 | |
Cost of sales | (532.3) | (517.1) | |
Selling and administrative expense | (24.7) | (22.1) | |
Gain (loss) on sale | 0 | 0 | |
Income (loss) before taxes | 95.4 | 100.4 | |
Income tax benefit (expense) | (22) | (37.9) | |
Income (loss) from discontinued operations, net of taxes | 73.4 | $ 62.5 | |
Current assets: | |||
Accounts receivable, net | 66.2 | ||
Inventories, net | 60.1 | ||
Other current assets | 3.4 | ||
Current assets held for sale | 129.7 | ||
Non-current assets: | |||
Property, net | 110.9 | ||
Goodwill | 11.2 | ||
Other non-current assets | 2.4 | ||
Non-current assets held for sale | 124.5 | ||
Total assets held for sale | 254.2 | ||
Current liabilities: | |||
Accounts payable | 94 | ||
Other current liabilities | 10.5 | ||
Current liabilities held for sale | 104.5 | ||
Non-current liabilities held for sale | 3.3 | ||
Total liabilities held for sale | $ 107.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill By Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 639.1 | $ 599.3 |
Acquisition of businesses | 47.9 | 42.1 |
Currency translation | (1.3) | (2.3) |
Balance, end of period | 685.7 | 639.1 |
Specialty Engineered Materials | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 188.9 | 173.2 |
Acquisition of businesses | 47.9 | 16.3 |
Currency translation | (0.5) | (0.6) |
Balance, end of period | 236.3 | 188.9 |
Color, Additives and Inks | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 448.6 | 424.5 |
Acquisition of businesses | 0 | 25.8 |
Currency translation | (0.8) | (1.7) |
Balance, end of period | 447.8 | 448.6 |
Distribution | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 1.6 | 1.6 |
Acquisition of businesses | 0 | 0 |
Currency translation | 0 | 0 |
Balance, end of period | $ 1.6 | $ 1.6 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Carrying Value And Accumulated Amortization Of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (168.7) | $ (139.2) |
Currency Translation | (2.3) | (1.6) |
Indefinite-lived Intangible Assets [Line Items] | ||
Acquisition Cost | 640.3 | 563.2 |
Net | 469.3 | 422.4 |
Indefinite-lived trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 109.5 | 100.3 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 286.8 | 277.8 |
Accumulated Amortization | (89.1) | (74.8) |
Currency Translation | (1) | (0.7) |
Net | 196.7 | 202.3 |
Patents, technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 244 | 185.1 |
Accumulated Amortization | (79.6) | (64.4) |
Currency Translation | (1.3) | (0.9) |
Net | $ 163.1 | $ 119.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other finite-lived intangible assets | $ 29.5 | $ 25.5 | $ 21.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 28.9 |
2021 | 28.7 |
2022 | 26.7 |
2023 | 24.3 |
2024 | $ 24.2 |
Financing Arrangements - Compon
Financing Arrangements - Components of Long-Term Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Apr. 11, 2018 | |
Debt Instrument [Line Items] | |||
Aggregate maturities | $ 1,242,800,000 | $ 1,371,800,000 | |
Debt, current portion | 18,400,000 | 19,400,000 | |
Total long-term debt, net of current portion, Principal Amount | 1,224,400,000 | 1,352,400,000 | |
Unamortized discount and debt issuance cost | 13,500,000 | 16,200,000 | |
Debt, excluding current, Unamortized discount and debt issuance cost | 0 | 0 | |
Total long-term debt, net of current portion, Unamortized Discount And Debt Issuance Cost | 13,500,000 | 16,200,000 | |
Total debt | 1,229,300,000 | 1,355,600,000 | |
Total long-term debt, current portion | 18,400,000 | 19,400,000 | |
Total long-term debt, net of current portion | 1,210,900,000 | 1,336,200,000 | |
Senior secured term loan due 2026 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.75% | ||
Aggregate maturities | 624,500,000 | 631,000,000 | |
Unamortized discount and debt issuance cost | 9,800,000 | 11,200,000 | |
Total debt | $ 614,700,000 | $ 619,800,000 | |
Weighted average interest rate | 4.01% | 3.80% | |
5.25% senior notes due 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.25% | 5.25% | |
Aggregate maturities | $ 600,000,000 | $ 600,000,000 | |
Unamortized discount and debt issuance cost | 3,700,000 | 5,000,000 | |
Total debt | $ 596,300,000 | $ 595,000,000 | |
Weighted average interest rate | 5.25% | 5.25% | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Aggregate maturities | $ 18,300,000 | $ 20,700,000 | |
Unamortized discount and debt issuance cost | 0 | 0 | |
Total debt | 18,300,000 | 20,700,000 | |
Revolving Credit Facility | Senior secured revolving credit facility due 2022 | |||
Debt Instrument [Line Items] | |||
Aggregate maturities | 0 | 120,100,000 | |
Unamortized discount and debt issuance cost | 0 | 0 | |
Total debt | $ 0 | $ 120,100,000 | |
Weighted average interest rate | 3.90% | 3.35% |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | Apr. 11, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 28, 2019 | Aug. 03, 2016 |
Debt Instrument [Line Items] | ||||||
Repayment of long-term debt | $ 6,500,000 | $ 6,500,000 | $ 6,500,000 | |||
Borrowings | 1,229,300,000 | 1,355,600,000 | ||||
Fair value of debt instruments | 1,271,800,000 | 1,316,800,000 | ||||
Interest income | 11,000,000 | 3,100,000 | 700,000 | |||
Total interest paid on long-term and short-term borrowings | 67,000,000 | 61,000,000 | $ 59,400,000 | |||
Saudi Hollandi Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 12,000,000 | 12,000,000 | ||||
Fixed rate | 0.85% | |||||
Amount outstanding | $ 10,300,000 | $ 10,700,000 | ||||
Interest rate at period end | 3.14% | 3.35% | ||||
Remaining availability on credit line | $ 1,700,000 | $ 1,300,000 | ||||
Senior secured term loan due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Annual payment | 1.00% | |||||
Repayment of long-term debt | 6,500,000 | |||||
Senior secured term loan due 2026 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Decrease in basis spread on variable rate | 0.25% | |||||
Stated interest rate | 1.75% | |||||
Borrowings | 614,700,000 | 619,800,000 | ||||
Senior secured revolving credit facility due 2022 | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 450,000,000 | |||||
Borrowings | 0 | 120,100,000 | ||||
Current borrowing capacity | $ 279,400,000 | $ 279,400,000 | ||||
Senior secured revolving credit facility due 2022 | European Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
London Interbank Offered Rate (LIBOR) | Senior secured term loan due 2026 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis point spread | 1.75% | |||||
Variable rate floor | 0.75% | |||||
Prime Rate | Senior secured term loan due 2026 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis point spread | 0.75% | |||||
Variable rate floor | 1.75% |
Financing Arrangements - Long-T
Financing Arrangements - Long-Term Debt Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 18.4 | |
2021 | 7.5 | |
2022 | 7.2 | |
2023 | 607 | |
2024 | 7 | |
Thereafter | 595.7 | |
Aggregate maturities | $ 1,242.8 | $ 1,371.8 |
Leasing Arrangements - Lease Co
Leasing Arrangements - Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Total Operating lease cost | $ 24 |
Cost of Sales | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 10.9 |
Selling and administrative expense | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | 11.3 |
Other | $ 1.8 |
Leasing Arrangements - Narrativ
Leasing Arrangements - Narrative (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 4 years |
Weighted average discount rate | 7.90% |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Maturity Of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 24 |
2021 | 16 |
2022 | 11.3 |
2023 | 8.1 |
2024 | 4.5 |
Thereafter | 7.8 |
Total | 71.7 |
Less amount of lease payment representing interest | (7.9) |
Total present value of lease payments | $ 63.8 |
Leasing Arrangements - Schedu_2
Leasing Arrangements - Schedule of Future Minimum Lease Payments, Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 24.5 |
2020 | 20.4 |
2021 | 12.4 |
2022 | 8.5 |
2023 | 5.8 |
Thereafter | 9 |
Total | $ 80.6 |
Inventories, Net - Components O
Inventories, Net - Components Of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 157.6 | $ 174.6 |
Work in process | 8 | 6.4 |
Raw materials and supplies | 95.3 | 103.6 |
Inventories, net | $ 260.9 | $ 284.6 |
Property, Net - Components of P
Property, Net - Components of Property, Net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 1,013.5 | $ 964 |
Less accumulated depreciation | (606.1) | (579.5) |
Property, net | 407.4 | 384.5 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 32.8 | 32.6 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 231.8 | 226.4 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 748.9 | $ 705 |
Property, Net - Narrative (Deta
Property, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 48.6 | $ 47.1 | $ 46.1 |
Other Balance Sheet Liabiliti_3
Other Balance Sheet Liabilities - Components Of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and other current liabilities | ||
Total | $ 375.4 | $ 128.7 |
Other non-current liabilities | ||
Pension and other post-employment benefits | 56.6 | 54.3 |
Total | 144.3 | 162.2 |
Accrued expenses and other current liabilities | ||
Accrued expenses and other current liabilities | ||
Employment costs | 68.6 | 47.5 |
Earnouts payable | 87.9 | 18.6 |
Environmental liabilities | 11.2 | 9.9 |
Accrued taxes | 165.4 | 15.3 |
Pension and other post-employment benefits | 4.8 | 4.9 |
Accrued interest | 10 | 10.8 |
Dividends payable | 15.6 | 15.6 |
Unrecognized tax benefits | 0.7 | 1.7 |
Other | 11.2 | 4.4 |
Total | 375.4 | 128.7 |
Other non-current liabilities | ||
Other non-current liabilities | ||
Employment costs | 20.5 | 18 |
Earnouts payable | 0 | 0 |
Environmental liabilities | 100.8 | 102 |
Accrued taxes | 0 | 0 |
Pension and other post-employment benefits | 0 | 0 |
Accrued interest | 0 | 0 |
Dividends payable | 0 | 0 |
Unrecognized tax benefits | 11.9 | 16.1 |
Other | 11.1 | 26.1 |
Total | $ 144.3 | $ 162.2 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Mark-to-market actuarial net (losses) gains | $ 9.6 | $ (15.6) | $ (3.3) | $ 9.6 | $ (15.6) | $ (3.3) | |
Discount rate | 3.19% | 4.11% | 3.62% | 3.19% | 4.11% | 3.62% | 3.97% |
Fixed income securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of equity securities | 83.00% | 83.00% | |||||
Equity Securities | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Percentage of equity securities | 17.00% | 17.00% | |||||
Pension Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discount rate | 3.19% | 4.11% | 3.19% | 4.11% | |||
Employer contributions to defined benefit plans | $ 4.2 | $ 4.2 | |||||
Health Care Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer contributions to defined benefit plans | $ 0.8 | $ 0.8 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation, Change in Plan Assets and Components of Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning of year | $ 462.7 | $ 507.7 | |
Service cost | 0.5 | 0.6 | $ 0.6 |
Interest cost | 18.2 | 17.6 | 19.3 |
Actuarial loss (gain) | 34 | (23.9) | |
Benefits paid | (36.9) | (37.7) | |
Other | (0.5) | (1.6) | |
Projected benefit obligation - end of year | 478 | 462.7 | 507.7 |
Projected salary increases | (1.9) | (1.6) | |
Accumulated benefit obligation | 476.1 | 461.1 | |
Change in plan assets: | |||
Plan assets - beginning of year | 434.4 | 484.7 | |
Actual return (loss) on plan assets | 67.4 | (16.4) | |
Company contributions | 4.4 | 4.5 | |
Benefits paid | (36.9) | (37.7) | |
Other | (0.2) | (0.7) | |
Plan assets - end of year | 469.1 | 434.4 | 484.7 |
Unfunded status at end of year | (8.9) | (28.3) | |
Health Care Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning of year | 7.4 | 8.8 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.2 | 0.3 | 0.4 |
Actuarial loss (gain) | 0.1 | (0.6) | |
Benefits paid | (0.8) | (0.8) | |
Other | 0.2 | (0.3) | |
Projected benefit obligation - end of year | 7.1 | 7.4 | 8.8 |
Projected salary increases | 0 | 0 | |
Accumulated benefit obligation | 7.1 | 7.4 | |
Change in plan assets: | |||
Plan assets - beginning of year | 0 | 0 | |
Actual return (loss) on plan assets | 0 | 0 | |
Company contributions | 0.8 | 0.8 | |
Benefits paid | (0.8) | (0.8) | |
Other | 0 | 0 | |
Plan assets - end of year | 0 | 0 | $ 0 |
Unfunded status at end of year | $ (7.1) | $ (7.4) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Included in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | $ 45.4 | $ 23.5 |
Accrued expenses and other liabilities | 4 | 4.1 |
Other non-current liabilities | 50.3 | 47.7 |
Health Care Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Accrued expenses and other liabilities | 0.8 | 0.8 |
Other non-current liabilities | $ 6.3 | $ 6.6 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Projected and Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 58.9 | $ 56.4 |
Accumulated benefit obligation | 57 | 54.8 |
Fair value of plan assets | 4.6 | 4.6 |
Health Care Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 7.1 | 7.4 |
Accumulated benefit obligation | 7.1 | 7.4 |
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Discount rate | ||||
Discount rate | 3.19% | 4.11% | 3.62% | 3.97% |
Pension Benefits | ||||
Discount rate | ||||
Discount rate | 3.19% | 4.11% | ||
Health Care Benefits | ||||
Discount rate | ||||
Discount rate | 3.18% | 3.98% | ||
Assumed health care cost trend rates at December 31: | ||||
Health care cost trend rate assumed for next year | 5.88% | 6.09% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Period Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0.5 | $ 0.6 | $ 0.6 |
Interest cost | 18.2 | 17.6 | 19.3 |
Expected return on plan assets | (23.7) | (23.8) | (27.7) |
Mark-to-market actuarial net losses (gains) | (9.7) | 16.2 | 5 |
Other | 0 | (0.1) | 0 |
Net periodic cost (benefit) | (14.7) | 10.5 | (2.8) |
Health Care Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.2 | 0.3 | 0.4 |
Expected return on plan assets | 0 | 0 | 0 |
Mark-to-market actuarial net losses (gains) | 0.1 | (0.6) | (1.7) |
Other | 0 | 0 | 0 |
Net periodic cost (benefit) | $ 0.3 | $ (0.3) | $ (1.3) |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.11% | 3.62% | 3.97% |
Expected long-term return on plan assets | 5.68% | 5.09% | 6.08% |
Health Care Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.98% | 3.60% | 4.04% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Assumed health care cost trend rates at December 31: | |||
Health care cost trend rate assumed for next year | 6.09% | 6.29% | 6.52% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2027 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Values of Pension Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 469.1 | $ 434.4 | $ 484.7 |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 8.3 | 8.3 | |
Fair Value, Inputs, Level 1, 2 and 3 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.7 | 3.7 | |
Fair Value, Inputs, Level 1, 2 and 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.6 | 4.6 | |
Quoted Prices in Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.7 | 3.7 | |
Quoted Prices in Active Markets (Level 1) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.7 | 3.7 | |
Quoted Prices in Active Markets (Level 1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.6 | 4.6 | |
Significant Unobservable Inputs (Level 3) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4.6 | 4.6 | |
Fair Value Measured at Net Asset Value Per Share | Total common collective funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 460.8 | 426.1 | |
Fair Value Measured at Net Asset Value Per Share | United States equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 31.7 | 14.9 | |
Fair Value Measured at Net Asset Value Per Share | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 31.9 | 14.9 | |
Fair Value Measured at Net Asset Value Per Share | Global equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 15.7 | 8.5 | |
Fair Value Measured at Net Asset Value Per Share | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 381.5 | $ 387.8 |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 38 |
2021 | 38.4 |
2022 | 36.3 |
2023 | 35.9 |
2024 | 34.6 |
2025 through 2029 | 156.2 |
Health Care Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 0.8 |
2021 | 0.8 |
2022 | 0.7 |
2023 | 0.7 |
2024 | 0.6 |
2025 through 2029 | $ 2.4 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule Of Contributions To The Retirement Savings Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |||
Retirement savings match | $ 10.4 | $ 10.1 | $ 9.1 |
Retirement savings contribution | 0 | 0 | 1.6 |
Total contribution | $ 10.4 | $ 10.1 | $ 10.7 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Jun. 30, 2018entitymi | Mar. 31, 2016USD ($)companymi | Mar. 13, 2013companymi | Sep. 30, 2017companymi | Sep. 30, 2016mi | Mar. 31, 2016USD ($)mi | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)entity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 23, 2019company | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | |||||||||||||
Accrued probable future environmental expenditures | $ | $ 112 | $ 111.9 | $ 114.8 | $ 114.9 | |||||||||
Insurance recoveries | $ | $ 1.5 | $ 1.6 | 4.5 | $ 4.3 | $ 9.1 | ||||||||
Contamination of Passaic River Study Area | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency, number of third-party companies assuming responsibility for development of RIFS | company | 70 | ||||||||||||
Calvert City | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of companies negotiating consent decree | company | 3 | ||||||||||||
Accrued probable future environmental expenditures | $ | $ 100.8 | ||||||||||||
Lower Passaic River | Contamination of Passaic River Study Area | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Length of portion of river | mi | 8 | 8 | 17 | 8 | 8 | 8 | |||||||
Site contingency, environmental remediation, total estimated cost of remedy | $ | $ 1,400 | $ 1,400 | |||||||||||
Site contingency, number of companies receiving notice of potential liability (more than) | company | 100 | ||||||||||||
Site contingency, number of companies receiving notice of process to allocate remedial costs | company | 80 | ||||||||||||
Number of entities named in suit | entity | 100 | 100 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule Of Changes In Environmental Accrued Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at beginning of the year | $ 111.9 | $ 114.8 | $ 114.9 |
Environmental expenses | 10.2 | 23.1 | 14.9 |
Net cash payments | (10.3) | (26) | (15.1) |
Currency translation and other | 0.2 | 0 | 0.1 |
Balance at the end of year | $ 112 | $ 111.9 | $ 114.8 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 41.2 | $ 4.1 | $ 18 |
Foreign | 68.2 | 97.7 | 93.9 |
Income from continuing operations, before income taxes | $ 109.4 | $ 101.8 | $ 111.9 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax (Expense) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense (benefit): | |||
Domestic - GILTI, FDII, and U.S. tax reform transition tax | $ 0.1 | $ 5 | $ 19.9 |
Domestic - other | 24.7 | (5.4) | (41.4) |
Foreign | 21.9 | 22 | 23.9 |
Total current income tax expense | 46.7 | 21.6 | 2.4 |
Deferred income tax (benefit) expense: | |||
Domestic - U.S. tax reform, tax effect on net deferred tax liabilities | 0 | (6.8) | (20.1) |
Domestic - other | (12.5) | 17.9 | 26.4 |
Foreign | (0.5) | (18.3) | (7.9) |
Total deferred income tax (benefit) expense | (13) | (7.2) | (1.6) |
Total income tax expense | $ 33.7 | $ 14.4 | $ 0.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Repatriation on certain foreign earnings from prior and current periods | 1.60% | 9.40% | 0.80% |
Foreign permanent items, unfavorable, amount | $ 10,300,000 | ||
Foreign permanent items, unfavorable | 9.40% | ||
Foreign permanent items, favorable, amount | $ 2,000,000 | ||
Foreign permanent items, favorable | 1.90% | ||
Repatriation on certain foreign earnings from prior and current periods, amount | $ 10,300,000 | ||
Gross state net operating loss carryforwards | $ 32,500,000 | ||
Foreign subsidiaries gross net operating loss carryforwards | 155,600,000 | ||
Increase (decrease) in valuation allowance | 1,000,000 | ||
Liability for repatriation of foreign earnings | 6,700,000 | 8,200,000 | |
Provision for income taxes on undistributed earnings of non-United States subsidiaries | 0 | ||
Undistributed earnings of non-United States subsidiaries | 395,000,000 | ||
Income tax payments | 45,700,000 | 40,500,000 | $ 51,100,000 |
Income tax refunds | 20,000,000 | 29,900,000 | $ 6,700,000 |
Income tax penalties and interest accrued | 1,400,000 | $ 2,500,000 | |
Reduction in unrecognized tax benefits on the outcome of tax examinations and the expiration of statutes of limitations | 200,000 | ||
Income tax expense if unrecognized tax benefits were recognized | 4,900,000 | ||
Domestic and Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Increase (decrease) in valuation allowance | $ 14,300,000 | ||
Tax Year 2017 | |||
Income Tax Contingency [Line Items] | |||
Repatriation on certain foreign earnings from prior and current periods | 7.50% | ||
Tax Year 2018 | |||
Income Tax Contingency [Line Items] | |||
Repatriation on certain foreign earnings from prior and current periods | 1.90% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Total foreign tax rate differential | (8.90%) | (12.10%) | (20.00%) |
Tax on GILTI | 1.90% | 3.30% | 0.00% |
Repatriation on certain foreign earnings from prior and current periods | 1.60% | 9.40% | 0.80% |
Net impact of non-deductible acquisition earnouts | 2.80% | 0.20% | 0.00% |
Tax on one-time gain from sale of other assets | 6.00% | 0.00% | 0.00% |
U.S. tax reform, transition tax | 0.002 | 0.021 | 0.178 |
U.S. tax reform, tax effect on net deferred tax liabilities | 0.00% | (5.40%) | (18.00%) |
Tax impact of FDII deduction | (2.00%) | (0.40%) | 0.00% |
Research and development credit | (2.80%) | (0.80%) | (1.40%) |
Domestic production activities deduction | 0.00% | (1.10%) | (2.40%) |
Amended prior period tax returns and corresponding favorable audit adjustments | (0.70%) | 0.00% | (6.80%) |
Tax benefits on certain foreign investments | 0.00% | 0.00% | (12.80%) |
State and local tax, net | 4.20% | 2.30% | 0.20% |
Foreign permanent items | 7.50% | (1.60%) | 2.40% |
Net impact of uncertain tax positions | (2.40%) | (0.60%) | 4.80% |
Changes in valuation allowances | 1.70% | (3.40%) | 1.40% |
Other | 0.70% | 1.20% | (0.30%) |
Tax benefits on certain foreign investments | 30.80% | 14.10% | 0.70% |
Asia | |||
Income Tax Contingency [Line Items] | |||
Total foreign tax rate differential | 0.70% | 0.40% | (2.20%) |
Europe | |||
Income Tax Contingency [Line Items] | |||
Total foreign tax rate differential | (10.30%) | (11.60%) | (16.20%) |
Canada and Mexico | |||
Income Tax Contingency [Line Items] | |||
Total foreign tax rate differential | 0.70% | (0.90%) | (1.60%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Pension and other post-retirement benefits | $ 2.7 | $ 7.6 |
Employment costs | 20.5 | 20.1 |
Environmental reserves | 27.9 | 28.2 |
Net operating loss carryforwards | 45.3 | 48.8 |
Operating leases | 18 | |
Other, net | 42.4 | 39.8 |
Gross deferred tax assets | 156.8 | 144.5 |
Valuation allowances | (16.2) | (15.2) |
Total deferred tax assets, net of valuation allowances | 140.6 | 129.3 |
Deferred tax liabilities: | ||
Property, plant and equipment | (25.9) | (33.9) |
Goodwill and intangibles | (95.1) | (101.5) |
Operating leases | (18) | |
Other, net | (14.2) | (14.2) |
Total deferred tax liablities | (153.2) | (149.6) |
Net deferred tax (liabilities) assets | (12.6) | (20.3) |
Consolidated Balance Sheets: | ||
Non-current deferred income tax assets | 50.9 | 48.8 |
Non-current deferred income tax liabilities | $ (63.5) | $ (69.1) |
Income Taxes - Changes In Unrec
Income Taxes - Changes In Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1, | $ 16.4 | $ 17.8 | $ 7.1 |
Increases as a result of positions taken during current year | 1.1 | 1.3 | 9.2 |
Increases as a result of positions taken for prior years | 0.4 | 1.1 | 1.8 |
Reductions for tax positions of prior years | (0.7) | (2.6) | (0.3) |
Decreases as a result of lapse of statute of limitations | (5) | (0.2) | 0 |
Decreases relating to settlements with taxing authorities | 0 | (0.5) | 0 |
Other, net | (1) | (0.5) | 0 |
Balance as of December 31, | $ 11.2 | $ 16.4 | $ 17.8 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Shares reserved for grant (in shares) | 2,500,000 | ||
Stock appreciation rights | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
SARs granted (in shares) | 600,000 | 300,000 | 500,000 |
Vesting period | 3 years | ||
SARs granted appreciation cap percentage | 200.00% | ||
Forfeitures percentage | 3.00% | ||
Intrinsic value of SARS exercised | $ 0.4 | $ 6.5 | $ 7.6 |
Unrecognized compensation cost | $ 2.7 | ||
Weighted average award vesting period | 34 months | ||
Nonvested, balance (in shares) | 2,200,000 | 1,800,000 | |
Weighted-average grant date fair value (in usd per share) | $ 32.04 | $ 32.14 | |
Stock appreciation rights | Maximum | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Stock awards expiration | 10 years | ||
Restricted stock units | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Vesting period | 21 months | ||
Unrecognized compensation cost | $ 6.2 | ||
RSUs granted (in shares) | 200,000 | 200,000 | 300,000 |
Nonvested, balance (in shares) | 600,000 | ||
Weighted-average grant date fair value (in usd per share) | $ 35.56 | ||
Vests Rateably over 3 Years | Stock appreciation rights | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.33% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary Of Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 11.5 | $ 10.2 | $ 9.6 |
Stock appreciation rights | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | 4.8 | 4.2 | 4 |
Performance shares | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | 0.3 | 0.4 | 0.5 |
Restricted stock units | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 6.4 | $ 5.6 | $ 5.1 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary Of Assumptions Related To Grants (Details) - Stock appreciation rights - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Expected volatility | 40.00% | 41.00% | 41.00% |
Expected dividends | 2.47% | 1.67% | 1.58% |
Expected term | 6 years 7 months 6 days | 6 years 6 months | 6 years 6 months |
Risk-free rate | 2.78% | 3.06% | 2.72% |
Value of SARs granted (in dollars per share) | $ 10.13 | $ 14.82 | $ 12.01 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary Of Stock Appreciation Rights (Details) - Stock Appreciation Rights - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Shares outstanding, beginning balance (in shares) | 1.8 | ||
Granted, Shares (in shares) | 0.6 | 0.3 | 0.5 |
Exercised, Shares (in shares) | (0.1) | ||
Forfeited or expired, Shares (in shares) | (0.1) | ||
Shares outstanding, ending balance (in shares) | 2.2 | 1.8 | |
Outstanding, vested and exercisable (in shares) | 1.2 | ||
Weighted-Average Exercise Price per Share | |||
Weighted-Average Exercise Price Per Share, beginning balance (in usd per share) | $ 32.14 | ||
Granted, Weighted-Average Exercise Price Per Share (in usd per share) | 31.54 | ||
Exercised, Weighted-Average Exercise Price Per Share (in usd per share) | 22.47 | ||
Forfeited or expired, Weighted-Average Exercise Price Per Share (in usd per share) | 35.46 | ||
Weighted-Average Exercise Price Per Share, ending balance (in usd per share) | 32.04 | $ 32.14 | |
Outstanding, vested and exercisable, Weighted Average Exercise Price Per Share (in usd per share) | $ 29.13 | ||
Weighted-Average Remaining Contractual Term And Aggregate Intrinsic Value | |||
Outstanding, Weighted-Average Remaining Contractual Term | 6 years 7 months 6 days | 6 years 9 months 18 days | |
Vested and exercisable, Weighted-Average Remaining Contractual Term | 5 years 1 month 6 days | ||
Aggregate Intrinsic value | $ 12.3 | $ 4 | |
Vested and exercisable, Aggregate Intrinsic Value | $ 9.3 |
Segment Information - Narrative
Segment Information - Narrative (Details) grade_resin in Thousands | 12 Months Ended | |
Dec. 31, 2019segmentinjection_molder_extrudersuppliergrade_resin | Dec. 31, 2018segment | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 3 | 5 |
Number of grades of resins sold by polyone distribution (more than) | grade_resin | 4 | |
Number of products sold | injection_molder_extruder | 6,500 | |
Number of suppliers represented by PolyOne distribution (more than) | supplier | 25 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 658.6 | $ 705.3 | $ 748.2 | $ 750.6 | $ 677.1 | $ 729 | $ 743.9 | $ 731 | $ 2,862.7 | $ 2,881 | $ 2,590.3 |
Operating Income | $ 20.5 | $ 43.1 | $ 46.1 | $ 47.1 | $ 30.2 | $ 48.7 | $ 49.6 | $ 50.1 | 156.8 | 178.6 | 173.1 |
Depreciation and Amortization | 87.5 | 88.5 | 97.4 | ||||||||
Capital Expenditures | 81.7 | 76 | 79.6 | ||||||||
Color, Additives and Inks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 998.2 | 1,040.6 | 877.7 | ||||||||
Specialty Engineered Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 689.6 | 593.6 | 574.8 | ||||||||
Distribution | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,172.9 | 1,246.8 | 1,137.8 | ||||||||
Operating Segments | Color, Additives and Inks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,003.8 | 1,046.5 | 893.2 | ||||||||
Operating Income | 147.4 | 158.5 | 138.6 | ||||||||
Depreciation and Amortization | 43.2 | 44.3 | 41.2 | ||||||||
Capital Expenditures | 21.5 | 22.9 | 21.2 | ||||||||
Operating Segments | Specialty Engineered Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 745.7 | 645.8 | 624.3 | ||||||||
Operating Income | 86.8 | 72.3 | 75.5 | ||||||||
Depreciation and Amortization | 29.8 | 23.2 | 21.1 | ||||||||
Capital Expenditures | 23.3 | 25.2 | 23.4 | ||||||||
Operating Segments | Distribution | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,192.2 | 1,265.4 | 1,154.6 | ||||||||
Operating Income | 75.4 | 71.5 | 72.6 | ||||||||
Depreciation and Amortization | 0.5 | 0.7 | 0.8 | ||||||||
Capital Expenditures | 1.6 | 0.1 | 0.5 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 81 | 76.7 | 81.8 | ||||||||
Intersegment Eliminations | Color, Additives and Inks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (5.6) | (5.9) | (15.5) | ||||||||
Intersegment Eliminations | Specialty Engineered Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (56.1) | (52.2) | (49.5) | ||||||||
Intersegment Eliminations | Distribution | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (19.3) | (18.6) | (16.8) | ||||||||
Corporate and Eliminations, Before Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2 | ||||||||||
Corporate and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (79) | (76.7) | (81.8) | ||||||||
Operating Income | (152.8) | (123.7) | (113.6) | ||||||||
Depreciation and Amortization | 4.6 | 4.4 | 4.2 | ||||||||
Capital Expenditures | 21.2 | 8.3 | 9.3 | ||||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and Amortization | 78.1 | 72.6 | 67.3 | ||||||||
Capital Expenditures | $ 67.6 | $ 56.5 | $ 54.4 |
Segment Information - Schedul_2
Segment Information - Schedule of Revenue and Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 658.6 | $ 705.3 | $ 748.2 | $ 750.6 | $ 677.1 | $ 729 | $ 743.9 | $ 731 | $ 2,862.7 | $ 2,881 | $ 2,590.3 |
Total assets | 3,273.3 | 2,723.3 | 3,273.3 | 2,723.3 | |||||||
Assets held-for-sale | 0 | 254.2 | 0 | 254.2 | |||||||
Long lived assets | 407.4 | 384.5 | 407.4 | 384.5 | |||||||
Color, Additives and Inks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 998.2 | 1,040.6 | 877.7 | ||||||||
Specialty Engineered Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 689.6 | 593.6 | 574.8 | ||||||||
Distribution | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,172.9 | 1,246.8 | 1,137.8 | ||||||||
Operating Segments | Color, Additives and Inks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,003.8 | 1,046.5 | 893.2 | ||||||||
Total assets | 1,215.8 | 1,243.5 | 1,215.8 | 1,243.5 | |||||||
Operating Segments | Specialty Engineered Materials | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 745.7 | 645.8 | 624.3 | ||||||||
Total assets | 774 | 599 | 774 | 599 | |||||||
Operating Segments | Distribution | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,192.2 | 1,265.4 | 1,154.6 | ||||||||
Total assets | 235.6 | 249 | 235.6 | 249 | |||||||
Corporate and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (79) | (76.7) | (81.8) | ||||||||
Total assets | 1,047.9 | 377.6 | 1,047.9 | 377.6 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,560.4 | 1,543.1 | 1,439.2 | ||||||||
Long lived assets | 220 | 205.4 | 220 | 205.4 | |||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 556.2 | 547.4 | 455.7 | ||||||||
Long lived assets | 98.1 | 113.5 | 98.1 | 113.5 | |||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 140.6 | 142.2 | 133.8 | ||||||||
Long lived assets | 0.1 | 0.2 | 0.1 | 0.2 | |||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 316.5 | 331.8 | 296.3 | ||||||||
Long lived assets | 77.3 | 57.5 | 77.3 | 57.5 | |||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 261.2 | 296.5 | 246.2 | ||||||||
Long lived assets | 5.5 | 6.2 | 5.5 | 6.2 | |||||||
South America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 27.8 | 20 | $ 19.1 | ||||||||
Long lived assets | $ 6.4 | $ 1.7 | $ 6.4 | $ 1.7 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)swap | Dec. 31, 2017USD ($) | Aug. 31, 2018USD ($)swap | |
Derivative [Line Items] | ||||
Unrealized gains (losses), cash flow hedge | $ (2.5) | $ (1.3) | $ 0 | |
Net Investment Hedging | Cross Currency Swaps | ||||
Derivative [Line Items] | ||||
Notional amount | 250 | |||
Unrealized gains | 9.1 | 2 | ||
Cash Flow Hedging | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Notional amount | $ 150 | |||
Number of interest rate swaps | swap | 2 | |||
Floating rate debt | $ 150 | |||
Floating rate | 2.732% | |||
Unrealized gains (losses), cash flow hedge | (2.5) | $ (1.3) | ||
Interest Expense, Net | Net Investment Hedging | Cross Currency Swaps | ||||
Derivative [Line Items] | ||||
Number of cross currency swaps | swap | 6 | |||
Conversion benefit | 8.3 | $ 2 | ||
Interest Expense, Net | Cash Flow Hedging | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Expense recognized | $ (0.7) | $ (0.3) |
Derivatives and Hedging (Fair V
Derivatives and Hedging (Fair Value Of Derivatives) (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Net Investment Hedging | Cross Currency Swaps | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 14.7 | $ 2.6 |
Fair Value Hedging | Interest Rate Swap | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 5.1 | $ 1.7 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Schedule Of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Sales | $ 658.6 | $ 705.3 | $ 748.2 | $ 750.6 | $ 677.1 | $ 729 | $ 743.9 | $ 731 | $ 2,862.7 | $ 2,881 | $ 2,590.3 | |
Gross Margin | 153.3 | 160.5 | 175.3 | 168.1 | 140.9 | 157.2 | 162.9 | 163.8 | 657.2 | 624.8 | 596.4 | |
Operating Income | 20.5 | 43.1 | 46.1 | 47.1 | 30.2 | 48.7 | 49.6 | 50.1 | 156.8 | 178.6 | 173.1 | |
Net income (loss) from continuing operations | 6.4 | 23.6 | 23.2 | 22.5 | (1.5) | 32.5 | 29.4 | 27 | ||||
Net income from continuing operations attributable to PolyOne Shareholders | 6.4 | 23.5 | 23.2 | 22.4 | (1.3) | 32.5 | 29.5 | 27 | ||||
Income (loss) from discontinued operations, net of income taxes | 458.9 | 19.5 | 18.9 | 15.8 | 12.7 | 17.7 | 21.8 | 19.9 | 513.1 | 72.1 | (168.7) | |
Net income (loss) attributable to PolyOne common shareholders | $ 465.3 | $ 43 | $ 42.1 | $ 38.2 | $ 11.4 | $ 50.2 | $ 51.3 | $ 46.9 | $ 588.6 | $ 159.8 | $ (57.7) | |
Earnings (loss) per share from continuing operations attributable to PolyOne shareholders: | ||||||||||||
Basic earnings per share - continuing operations (in usd per share) | $ 0.08 | $ 0.31 | $ 0.30 | $ 0.29 | $ (0.02) | $ 0.41 | $ 0.37 | $ 0.34 | $ 0.98 | $ 1.10 | $ 1.36 | |
Diluted earnings per share - continuing operations (in usd per share) | 0.08 | 0.30 | 0.30 | 0.29 | (0.02) | 0.40 | 0.37 | 0.33 | 0.97 | 1.09 | 1.35 | |
Earnings (loss) per share from discontinued operations: | ||||||||||||
Basic earnings per share - discontinued operations (in usd per share) | 5.97 | 0.25 | 0.24 | 0.20 | 0.16 | 0.22 | 0.27 | 0.25 | 6.64 | 0.91 | (2.07) | |
Diluted earnings per share - discontinued operations (in usd per share) | 5.92 | 0.25 | 0.24 | 0.20 | 0.16 | 0.22 | 0.27 | 0.24 | 6.61 | 0.90 | (2.05) | |
Total earnings (loss) per share attributable to PolyOne shareholders: | ||||||||||||
Basic earnings per share (in usd per share) | 6.05 | 0.56 | 0.54 | 0.49 | 0.15 | 0.63 | 0.64 | 0.58 | 7.62 | 2.01 | (0.71) | |
Diluted earnings per share (in usd per share) | $ 6 | $ 0.56 | $ 0.54 | $ 0.49 | $ 0.14 | $ 0.62 | $ 0.63 | $ 0.58 | $ 7.58 | $ 1.99 | $ (0.70) | |
Acquisition related costs and adjustments | $ 20.9 | $ 11.1 | $ 10.7 | $ 2.2 | $ 1.5 | $ 1.9 | $ 1.9 | |||||
Mark-to-market actuarial net (losses) gains | 9.6 | (15.6) | $ (3.3) | $ 9.6 | $ (15.6) | $ (3.3) | ||||||
Restructuring activities | 4.1 | 2.3 | 3.9 | |||||||||
Legal costs | $ 1.9 | 1.6 | 3.7 | 2.4 | ||||||||
Environmental remediation expense | $ 6.4 | $ 1.9 | $ 2.1 | $ 3.9 | $ 7.4 | 8.7 | $ 3.1 | |||||
Reimbursement of previously incurred environmental costs | $ 1.5 | $ 1.6 | $ 4.5 | $ 4.3 | $ 9.1 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | 1 Months Ended |
Feb. 18, 2020USD ($) | |
Clariant | Subsequent Event | |
Subsequent Event [Line Items] | |
Net proceeds from issuance of common shares | $ 496.8 |