Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-16091 | ||
Entity Registrant Name | Avient Corp | ||
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 | AVNT | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.5 | ||
Entity Common Stock, Shares Outstanding | 91,604,913 | ||
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 2022 Annual Meeting of Shareholders. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001122976 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cleveland, Ohio |
Auditor Firm ID | 42 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Sales | $ 4,818.8 | $ 3,242.1 | $ 2,862.7 |
Cost of sales | 3,719.2 | 2,457.8 | 2,205.5 |
Gross margin | 1,099.6 | 784.3 | 657.2 |
Selling and administrative expense | 718.4 | 595 | 500.4 |
Operating income | 381.2 | 189.3 | 156.8 |
Interest expense, net | (75.3) | (74.6) | (59.5) |
Other (expense) income, net | (1.3) | 24.3 | 12.1 |
Income from continuing operations before income taxes | 304.6 | 139 | 109.4 |
Income tax expense | (74) | (5.2) | (33.7) |
Net income from continuing operations | 230.6 | 133.8 | 75.7 |
(Loss) income from discontinued operations, net of income taxes | 0 | (0.4) | 513.1 |
Net income | 230.6 | 133.4 | 588.8 |
Net loss (income) attributable to noncontrolling interests | 0.2 | (1.8) | (0.2) |
Net income attributable to Avient common shareholders | $ 230.8 | $ 131.6 | $ 588.6 |
Earnings per share attributable to Avient common shareholders - Basic: | |||
Continuing operations (in usd per share) | $ 2.53 | $ 1.47 | $ 0.98 |
Discontinued operations (in usd per share) | 0 | (0.01) | 6.64 |
Total (in usd per share) | 2.53 | 1.46 | 7.62 |
Earnings per share attributable to Avient common shareholders - Diluted: | |||
Continuing operations (in usd per share) | 2.51 | 1.46 | 0.97 |
Discontinued operations (in usd per share) | 0 | (0.01) | 6.61 |
Total (in usd per share) | $ 2.51 | $ 1.45 | $ 7.58 |
Weighted-average shares used to compute earnings per common share: | |||
Basic (in shares) | 91.4 | 90.1 | 77.2 |
Plus dilutive impact of share-based compensation (in shares) | 0.7 | 0.5 | 0.5 |
Diluted (in shares) | 92.1 | 90.6 | 77.7 |
Anti-dilutive shares not included in diluted common shares outstanding (in shares) | 0 | 0.8 | 0.6 |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.875 | $ 0.820 | $ 0.788 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 230.6 | $ 133.4 | $ 588.8 |
Other comprehensive (loss) income, net of tax: | |||
Translation adjustments and related hedging instruments | (75.2) | 110.6 | 2.2 |
Cash flow hedges | 3.2 | (1.6) | (2.5) |
Total other comprehensive (loss) income | (72) | 109 | (0.3) |
Total comprehensive income | 158.6 | 242.4 | 588.5 |
Comprehensive loss (income) attributable to noncontrolling interests | 0.2 | (1.8) | (0.2) |
Comprehensive income attributable to Avient common shareholders | $ 158.8 | $ 240.6 | $ 588.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 601.2 | $ 649.5 |
Accounts receivable, net | 642.3 | 516.6 |
Inventories, net | 461.1 | 327.5 |
Other current assets | 122.4 | 108.5 |
Total current assets | 1,827 | 1,602.1 |
Property, net | 676.1 | 694.9 |
Goodwill | 1,286.4 | 1,308.1 |
Intangible assets, net | 925.2 | 1,008.5 |
Operating lease assets, net | 74.1 | 80.9 |
Other non-current assets | 208.4 | 176 |
Total assets | 4,997.2 | 4,870.5 |
Current liabilities: | ||
Short-term and current portion of long-term debt | 8.6 | 18.6 |
Accounts payable | 553.9 | 471.7 |
Current operating lease obligations | 24.2 | 25.1 |
Accrued expenses and other current liabilities | 353.9 | 285.6 |
Total current liabilities | 940.6 | 801 |
Non-current liabilities: | ||
Long-term debt | 1,850.3 | 1,854 |
Pension and other post-retirement benefits | 100 | 115 |
Deferred income taxes | 100.6 | 140 |
Non-current operating lease obligations | 50.1 | 56 |
Other non-current liabilities | 165.1 | 192.8 |
Total non-current liabilities | 2,266.1 | 2,357.8 |
SHAREHOLDERS' EQUITY | ||
Common Shares, $0.01 par, 400.0 shares authorized, 122.2 shares issued | 1.2 | 1.2 |
Additional paid-in capital | 1,511.8 | 1,513.3 |
Retained earnings | 1,208 | 1,057.4 |
Common shares held in treasury, at cost, 30.6 shares in 2021 and 30.9 shares in 2020 | (900.7) | (901.2) |
Accumulated other comprehensive (loss) income | (45.6) | 26.4 |
Avient shareholders’ equity | 1,774.7 | 1,697.1 |
Noncontrolling interest | 15.8 | 14.6 |
Total equity | 1,790.5 | 1,711.7 |
Total liabilities and equity | $ 4,997.2 | $ 4,870.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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) | 30,600,000 | 30,900,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income | $ 230.6 | $ 133.4 | $ 588.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of business, net of tax | 0 | 0 | (457.7) |
Depreciation and amortization | 144.2 | 111.8 | 87.5 |
Accelerated depreciation | 1.7 | 3.2 | 0 |
Deferred income tax benefit | (27.3) | (1.7) | (3.2) |
Share-based compensation expense | 11.2 | 11.3 | 11.6 |
Changes in assets and liabilities, net of the effect of acquisitions: | |||
(Increase) decrease in accounts receivable | (143.1) | (4.6) | 29.7 |
(Increase) decrease in inventories | (139.5) | 40.2 | 40.2 |
Increase (decrease) in accounts payable | 95.3 | 78.4 | (22.7) |
(Decrease) increase in pension and other post-retirement benefits | (10.9) | 30.7 | (19.7) |
Increase in post-acquisition earnout liabilities | 0 | 1 | 36.4 |
Increase (decrease) in accrued expenses and other assets and liabilities - net | 71.6 | (2) | 9.9 |
Taxes paid on gain on divestiture | 0 | (142) | 0 |
Payment of post-acquisition date earnout liability | 0 | (38.1) | 0 |
Net cash provided by operating activities | 233.8 | 221.6 | 300.8 |
Investing activities | |||
Capital expenditures | (100.6) | (63.7) | (81.7) |
Business acquisitions, net of cash acquired | (47.6) | (1,380.2) | (119.6) |
Net proceeds from divestiture | 0 | 7.1 | 761.8 |
Other investing activities | (2) | 5.2 | 51.4 |
Net cash (used) provided by investing activities | (150.2) | (1,431.6) | 611.9 |
Financing activities | |||
Debt offering proceeds | 0 | 650 | 0 |
Borrowings under credit facilities | 0 | 0 | 963.4 |
Repayments under credit facilities | 0 | 0 | (1,083.9) |
Purchase of common shares for treasury | (4.2) | (22.4) | (26.9) |
Cash dividends paid | (77.7) | (71.3) | (60.3) |
Repayment of other debt | 0 | 0 | (1.8) |
Repayment of long-term debt | (18.5) | (7.8) | (6.5) |
Payments on withholding tax on share awards | (10.7) | (2.3) | (2.1) |
Debt financing costs | 0 | (9.5) | (0.2) |
Equity offering proceeds, net of underwriting discount and issuance costs | 0 | 496.1 | 0 |
Payment of acquisition date earnout liability | 0 | (50.8) | 0 |
Other financing activities | (3.5) | 0 | 0 |
Net cash (used) provided by financing activities | (114.6) | 982 | (218.3) |
Effect of exchange rate changes on cash | (17.3) | 12.8 | (0.6) |
(Decrease) increase in cash and cash equivalents | (48.3) | (215.2) | 693.8 |
Cash and cash equivalents at beginning of year | 649.5 | 864.7 | 170.9 |
Cash and cash equivalents at beginning of year | $ 601.2 | $ 649.5 | $ 864.7 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Total Avient shareholders' equity | Common Shares | Common Shares Held in Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | |
Beginning Balance at Dec. 31, 2018 | $ 540.6 | $ 540 | $ 1.2 | $ (1,018.7) | $ 1,166.9 | $ 472.9 | $ (82.3) | $ 0.6 | |
Net income 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 (loss) income | (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) | ||||||||
Share-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) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 133.4 | 131.6 | 131.6 | 1.8 | |||||
Other comprehensive (loss) income | 109 | 109 | 109 | ||||||
Noncontrolling interest activity | 0.8 | ||||||||
Cash dividends declared | [1] | (75.1) | (75.1) | (75.1) | |||||
Repurchase of common shares | (22.4) | (22.4) | $ (22.4) | ||||||
Repurchase of common shares (in shares) | (1) | ||||||||
Common shares equity offering (in shares) | 15.3 | ||||||||
Common shares equity offering | 496.1 | 496.1 | $ 161.3 | 334.8 | |||||
Share-based compensation and exercise of awards | 6.3 | 6.3 | 3 | 3.3 | |||||
Acquisitions/other | 12.5 | (0.3) | (0.3) | 12.8 | |||||
Ending Balance at Dec. 31, 2020 | 1,711.7 | 1,697.1 | $ 1.2 | $ (901.2) | 1,513.3 | 1,057.4 | 26.4 | 14.6 | |
Ending Balance (in shares) at Dec. 31, 2020 | 122.2 | (30.9) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 230.6 | 230.8 | 230.8 | (0.2) | |||||
Other comprehensive (loss) income | (72) | (72) | (72) | ||||||
Noncontrolling interest activity | (1.4) | (1.4) | |||||||
Cash dividends declared | [1] | (80.2) | (80.2) | (80.2) | |||||
Repurchase of common shares | (4.2) | (4.2) | $ (4.2) | ||||||
Repurchase of common shares (in shares) | (0.1) | ||||||||
Share-based compensation and exercise of awards | 5.6 | $ 5.6 | $ 4.7 | 0.9 | |||||
Share-based compensation and exercise of awards (in shares) | 0.1 | 0.4 | |||||||
Acquisitions/other | (2.4) | $ (2.4) | (2.4) | ||||||
Ending Balance at Dec. 31, 2021 | $ 1,790.5 | $ 1,774.7 | $ 1.2 | $ (900.7) | $ 1,511.8 | $ 1,208 | $ (45.6) | $ 15.8 | |
Ending Balance (in shares) at Dec. 31, 2021 | 122.2 | (30.6) | |||||||
[1] | (1) Dividends declared per share were $0.875, $0.820, and $0.788 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share of common stock (in dollars per share) | $ 0.875 | $ 0.820 | $ 0.788 |
DESCRIPTION Of BUSINESS AND SUM
DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
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 formulator of specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. 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 sales, manufacturing and distribution facilities across North America, South America, Europe, the Middle East, Asia, and Africa. 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. When used in these notes to the consolidated financial statements, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries. Our operations are reported in three reportable segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution. See Note 15, Segment Information , for more information. Accounting Standards Adopted On January 1, 2021, the Company adopted Financial Accounting Standards Board (FASB) Account Standards Update (ASU) 2019-12, Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes (ASU 2019-12) , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in FASB Accounting Standards Codification (ASC) 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any material impact. Accounting Standards Not Yet Adopted ASU 2020-04, Reference Rate Reform (ASU 2020-04) , provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as LIBOR. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. These expedients are effective for the period from March 2020 to December 31, 2022. The Company has not adopted any of the expedients or exceptions through December 31, 2021 but will continue to evaluate the impact of adopting this standard on our consolidated financial statements and disclosures. Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Avient 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, current conditions and forecasted information, the credit risk of specific customers, economic conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit insurance. Inventories Raw materials and finished goods are carried at lower of cost or market using either the weighted average cost or the first-in, first-out (FIFO) method. The inventory reserve totaled $24.5 million and $22.5 million at December 31, 2021 and 2020, respectively. 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. We account for operating and finance leases under the provisions of FASB ASC Topic 842. Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The 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 2021, 2020 or 2019. 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 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 2021, 2020 or 2019. There are no reporting units identified as at-risk of 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, 2022. 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 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 12, 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, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , 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 (Loss) (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 immediately. Refer to Note 16, 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 11, Employee Benefit Plans, for more information. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) in 2021, 2020 and 2019 were as follows: (In millions) Cumulative Translation Adjustment and Related Hedging Instruments Pension and other post-retirement benefits Cash Flow Hedges Total Balance at January 1, 2019 $ (86.2) $ 5.2 $ (1.3) $ (82.3) Translation Adjustments (6.9) — — (6.9) Unrealized losses 9.1 — (2.5) 6.6 Balance at December 31, 2019 (84.0) 5.2 (3.8) (82.6) Translation Adjustments 152.3 — — 152.3 Unrealized losses (41.7) — (1.6) (43.3) Balance at December 31, 2020 26.6 5.2 (5.4) 26.4 Translation Adjustments (127.7) — — (127.7) Unrealized gains 52.5 — 3.2 55.7 Balance at December 31, 2021 $ (48.6) $ 5.2 $ (2.2) $ (45.6) 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. 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 $83.2 million in 2021, $59.8 million in 2020 and $50.6 million in 2019 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. As of December 31, 2021, we had one active share-based employee compensation plan, which is described more fully in Note 14, 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 13, Income Taxes , for additional detail. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | Note 2 — BUSINESS COMBINATIONS On July 1, 2020, we completed our acquisition of the equity interests in the global color business of Clariant AG, a corporation organized and existing under the law of Switzerland (Clariant), and certain assets of Clariant Chemicals (India) Limited, a public limited company incorporated in India and an indirect majority owned subsidiary of Clariant (Clariant India). The business and assets are collectively referred to as Clariant Color and the acquisitions are collectively referred to as the Clariant Color Acquisition. Total consideration paid by the Company to complete the Clariant Color Acquisition was $1.4 billion, net of cash and debt. To finance the purchase of Clariant Color, the Company used $496.1 million of net proceeds from the issuance of common shares in an underwritten public offering completed in February 2020 and $640.5 million of net proceeds from a senior unsecured notes offering completed in May 2020, and funded the balance using the net proceeds of the October 2019 sale of our Performance Products and Solutions business segment (PP&S). For additional details related to the sale of PP&S and the senior unsecured notes offering, refer to Note 3, Discontinued Operations and Note 6, Financing Arrangements , respectively. The Clariant Color Acquisition is being accounted for under the acquisition method of accounting in accordance with ASC Topic 805. As of June 30, 2021, the purchase accounting for the Clariant Color Acquisition was finalized. The summarized purchase price allocation is as follows: (In millions) Preliminary Allocation As of December 31, 2020 Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 145.1 $ — $ 145.1 Accounts receivable 170.8 — 170.8 Inventories 99.0 0.2 99.2 Other current assets 56.9 6.3 63.2 Property 267.6 (7.5) 260.1 Goodwill 569.0 (7.8) 561.2 Intangible assets: — Customer relationships 221.9 (20.7) 201.2 Trade names and trademarks 32.0 2.8 34.8 Patents, technology and other 273.9 7.4 281.3 Operating lease assets 30.1 — 30.1 Other long-term assets 1.3 5.8 7.1 Short term debt (0.4) — (0.4) Accounts payable (92.7) 1.2 (91.5) Current operating lease obligations (2.8) — (2.8) Accrued expenses and other current liabilities (81.2) (4.5) (85.7) Long-term debt (6.7) — (6.7) Non-current operating lease obligations (25.8) — (25.8) Deferred tax liabilities (60.7) 25.9 (34.8) Pension and other post-retirement benefits (53.8) — (53.8) Other long-term liabilities (5.4) (6.7) (12.1) Non-controlling interests (12.8) (2.4) (15.2) Total purchase price consideration $ 1,525.3 $ — $ 1,525.3 The intangible assets that have been acquired are being amortized over a period of 18 to 20 years. Goodwill of $561.2 million was recorded and allocated to the Color, Additives and Inks segment. The goodwill recognized is primarily attributable to the expected synergies to be achieved from the business combination. A portion of the goodwill is deductible for tax purposes. Had the Clariant Color Acquisition occurred on January 1, 2019, which was the beginning of the fiscal year prior to the acquisition, sales and income from continuing operations before income taxes for the years ended December 31, 2020 and 2019 on a pro forma basis would have been as follows: (Unaudited) (In millions) 2020 2019 Sales $ 3,782.5 $ 3,981.3 Income from continuing operations before income taxes 204.2 98.9 The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the Clariant Color Acquisition occurred on January 1, 2019. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. In preparation of the pro forma financial information, we eliminated certain historical allocations made by Clariant as they do not represent the stand alone operations of Clariant Color and replaced them with costs more likely to occur as a part of Avient. This elimination removed expense of $6.6 million and $12.7 million during 2020 and 2019, respectively. The amortization of inventory step-up from the preliminary purchase price allocation was $9.7 million, and is reflected in Cost of sale s. Additionally, we incurred $10.1 million of costs related to committed financing which are reflected in Interest expense, net. The amounts associated with the amortization of inventory step-up and costs related to committed financing were removed from 2020, and presented in the pro forma financial information. Costs incurred in connection with the Clariant Color Acquisition were $19.2 million in 2020. These fees were charged to Selling and Administrative expense . Other Acquisitions On July 1, 2021, the Company completed its acquisition of Magna Colours Ltd. (Magna Colours), a market leader in sustainable, water-based inks technology for the textile screen printing industry, for the purchase price of $47.6 million, net of cash acquired. The results of the Magna Colours business are reported in the Color, Additives and Inks segment. The preliminary purchase price allocation resulted in intangible assets of $27.5 million and goodwill of $22.0 million, partially offset by net liabilities assumed. Goodwill is not deductible for tax purposes. The intangible assets that have been acquired are being amortized over a period of 10 to 20 years. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | Note 3 — DISCONTINUED OPERATIONS On October 25, 2019, we divested the PP&S segment for $782.1 million cash. The sale resulted in the recognition of an after-tax gain of $457.7 million, which is reflected within Income (loss) from discontinued operations, net of income taxes . The Company 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, 2020 and 2019. (In millions) 2020 2019 Sales $ — $ 488.9 Cost of sales — (390.1) Selling and administrative expense (0.9) (28.0) Gain on sale — 591.2 Pretax (loss) income of discontinued operations (0.9) 662.0 Income tax expense 0.5 (148.9) (Loss) income from discontinued operations, net of taxes $ (0.4) $ 513.1 The following table presents the depreciation, amortization, and capital expenditures of our discontinued operations for the twelve months ended December 31, 2020 and 2019. There were no other significant operating or investing non-cash items for the twelve months ended December 31, 2020 and 2019. (In millions) 2020 2019 Depreciation and amortization $ — $ 9.4 Capital Expenditures — 14.1 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | Note 4 — GOODWILL AND INTANGIBLE ASSETS Goodwill as of December 31, 2021 and 2020 and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks Distribution Total Balance at January 1, 2020 $ 236.3 $ 447.8 $ 1.6 $ 685.7 Acquisition of businesses — 569.0 — 569.0 Currency translation 1.5 51.9 — 53.4 Balance at December 31, 2020 237.8 1,068.7 1.6 1,308.1 Acquisition of businesses — 14.1 — 14.1 Currency translation (1.5) (34.3) — (35.8) Balance at December 31, 2021 $ 236.3 $ 1,048.5 $ 1.6 $ 1,286.4 Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2021 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 507.2 $ (135.4) $ 6.0 $ 377.8 Patents, technology and other 566.7 (134.3) 1.8 434.2 Indefinite-lived trade names 113.2 — — 113.2 Total $ 1,187.1 $ (269.7) $ 7.8 $ 925.2 As of December 31, 2020 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 508.7 $ (109.8) $ 23.8 $ 422.7 Patents, technology and other 549.9 (102.4) 28.8 476.3 Indefinite-lived trade names 109.5 — — 109.5 Total $ 1,168.1 $ (212.2) $ 52.6 $ 1,008.5 Amortization of finite-lived intangible assets included in continuing operations for the years ended December 31, 2021, 2020 and 2019 was $57.5 million, $43.5 million and $29.5 million, respectively. We expect finite-lived intangibles amortization expense for the next five years as follows: (In millions) 2022 2023 2024 2025 2026 Expected Amortization Expense $ 55.5 $ 53.1 $ 52.6 $ 52.6 $ 51.9 |
EMPLOYEE SEPARATION AND RESTRUC
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS | Note 5 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS As part of our integration efforts associated with the Clariant Color Acquisition, we are engaged in a restructuring plan. The restructuring plan is expected to enable us to better serve customers, improve efficiency and deliver anticipated synergy-related cost savings. We expect to incur costs for exit and disposal activities under generally accepted accounting principles when actions associated with the restructuring plan are approved and announced. The costs recorded in C ost of sales during 2021 and 2020 included $3.2 million and $0.4 million, respectively, related to fixed asset disposals and $7.0 million and $0.2 million, respectively, related to severance. Additionally, in 2021 there were other costs recorded in Cost of sales of $1.0 million. The costs recorded in S elling and administrative expense during 2021 and 2020 include $0.1 million and $6.4 million of severance, respectively, and $0.4 million and $0.2 million of other costs, respectively. We expect that the full restructuring plan will be implemented through 2023 and anticipate that we will incur approximately $75 million of charges in connection with the restructuring plan. Total restructuring costs included in the Consolidated Statement of Income for the twelve months ended December 31, 2021 and 2020 are as follows: (in millions) 2021 2020 Cost of goods sold $ 14.5 $ 4.2 Selling and administrative expenses 0.2 15.4 Total employee separation and restructuring charges $ 14.7 $ 19.6 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | Note 6 — FINANCING ARRANGEMENTS For each of the periods presented, total debt consisted of the following: As of December 31, 2021 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2026 $ — $ — $ — — % 5.25% senior notes due 2023 600.0 1.4 598.6 5.25 % 5.75% senior notes due 2025 650.0 6.8 643.2 5.75 % Senior secured term loan due 2026 611.5 6.2 605.3 1.85 % Other Debt 11.8 — 11.8 Total Debt 1,873.3 14.4 1,858.9 Less short-term and current portion of long-term debt 8.6 — 8.6 Total long-term debt, net of current portion $ 1,864.70 $ 14.40 $ 1,850.30 As of December 31, 2020 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2026 $ — $ — $ — — % 5.25% senior notes due 2023 600.0 2.5 597.5 5.25 % 5.75% senior notes due 2025 650.0 8.8 641.2 5.75 % Senior secured term loan due 2026 618.0 8.0 610.0 2.36 % Other Debt 23.9 — 23.9 Total Debt 1,891.9 19.3 1,872.6 Less short-term and current portion of long-term debt 18.6 — 18.6 Total long-term debt, net of current portion $ 1,873.3 $ 19.3 $ 1,854.0 On October 26, 2021, the Company and certain of its subsidiaries entered into the First Amendment to the Third Amended and Restated Credit Agreement (the ABL Amendment) with Wells Fargo Capital Finance, LLC, as administrative agent (in such capacity, Administrative Agent) and the various lenders and other agents party thereto. The ABL Amendment amends the Third Amended and Restated Credit Agreement, dated June 28, 2019 (the ABL Credit Agreement), by and among the Company and certain subsidiaries of the Company party thereto, Wells Fargo Capital Finance, LLC, as administrative agent, and the various lenders and other agents party thereto. The ABL Amendment, among other things, (i) increased the Company’s total revolving credit line to $500 million (which may be increased by up to $150 million subject to the Company meeting certain requirements and obtaining commitments for such increase) (the Revolving Credit Facility), subject to the borrowing base limitations, (ii) extended the maturity date of the Revolving Credit Facility to October 26, 2026 (subject to certain exceptions), (iii) modified the borrowing base to include qualified cash subject to certain limitations, (iv) modified the applicable margin and the unused line fee to be based on availability, and (v) modified certain negative covenants to provide additional flexibility. 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, 2021, we had no borrowings outstanding under our Revolving Credit Facility, which had remaining availability of $485.5 million. As of December 31, 2020, we had no borrowings under our Revolving Credit Facility, which had remaining availability of $278.2 million. On February 28, 2013, the Company entered into an indenture with Wells Fargo Bank National Association, as trustee, relating to the issuance by the Company of $600.0 million aggregate principal amount of senior notes due 2023. The Senior notes bear an interest rate of 5.25% per year, payable semi-annually, in arrears, on March 15 and September 15 of each year, which commenced on September 15, 2013. On May 13, 2020, the Company entered into an indenture (the Indenture) with U.S. Bank National Association, as trustee (the Trustee), relating to the issuance by the Company of $650 million aggregate principal amount of 5.75% Senior Notes due 2025 (the Notes). The Notes were sold on May 13, 2020 in a private transaction exempt from the registration requirements of the Securities Act of 1933 (the Securities Act), have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Company received net proceeds of $640.5 million from the Notes offering, net of debt issuance costs, which were recorded on the balance sheet and are being amortized into Interest expense, net over the term of the debt. Also included in Interest expense, net for the year ended December 31, 2020, are costs associated with committed financing of $10.1 million related to the Clariant Color Acquisition. 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 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, 2021 were $6.5 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, 2021, we were in compliance with all covenants. As of December 31, 2020, the Company maintained a credit line of $12.0 million with Saudi Hollandi Bank. The credit line had 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, 2020, letters of credit under the credit line were immaterial and borrowings were $10.3 million with a weighted average annual interest rate of 1.85%. As of December 31, 2020, there was remaining availability on the credit line of $1.7 million. This credit line was closed in 2021. The estimated fair value of Avient’s debt instruments at December 31, 2021 and 2020 was $1,917.7 million and $1,955.9 million, respectively, compared to carrying values of $1,858.9 million and $1,872.6 million as of December 31, 2021 and 2020, respectively. The fair value of Avient’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) 2022 $ 8.6 2023 608.6 2024 8.6 2025 658.7 2026 6.9 Thereafter 581.9 Aggregate maturities $ 1,873.3 Included in Interest expense, net for the years ended December 31, 2021, 2020 and 2019 was interest income of $17.5 million, $19.9 million, and $11.0 million, respectively. Total interest paid on debt, net of the impact of hedging (see Note 16, Derivatives and Hedging ), was $72.6 million in 2021, $61.1 million in 2020 and $67.0 million in 2019. |
LEASING ARRANGEMENTS
LEASING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASING ARRANGEMENTS | Note 7 — 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. 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 for the twelve months ended December 31, 2021 and 2020 were as follows: (In millions) 2021 2020 Cost of sales $ 22.3 $ 20.0 Selling and administrative expense 12.1 13.3 Total Operating lease cost $ 34.4 $ 33.3 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, 2021 and 2020 was 4.7 years and 5.4 years, respectively. The non-cash net increase in operating lease liabilities was $18.3 million and $10.5 million for the years ended December 31, 2021 and 2020, respectively. 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, 2021 and 2020 were 3.7% and 3.9%, respectively. Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one year as of December 31, 2021 and 2020 are as follows: Maturity Analysis of Lease Liabilities: (in millions) 2021 2022 $ 26.3 2023 19.8 2024 12.6 2025 7.7 2026 4.6 Thereafter 10.3 Total $ 81.3 Less amount of lease payment representing interest (7.0) Total present value of lease payments $ 74.3 (in millions) 2020 2021 $ 28.0 2022 21.4 2023 15.0 2024 8.7 2025 4.7 Thereafter 13.3 Total $ 91.1 Less amount of lease payment representing interest (10.0) Total present value of lease payments $ 81.1 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | Note 8 — INVENTORIES, NET Components of Inventories, net as of December 31, 2021 and 2020 are as follows: (In millions) 2021 2020 Finished products $ 244.4 $ 171.7 Work in process 21.2 16.6 Raw materials and supplies 195.5 139.2 Inventories, net $ 461.1 $ 327.5 |
PROPERTY, NET
PROPERTY, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, NET | Note 9 — PROPERTY, NET Components of Property, net as of December 31, 2021 and 2020 are as follows: (In millions) 2021 2020 Land and land improvements $ 91.5 $ 95.7 Buildings 350.6 333.5 Machinery and equipment 972.3 948.2 Property, gross 1,414.4 1,377.4 Less accumulated depreciation (738.3) (682.5) Property, net $ 676.1 $ 694.9 Depreciation expense from continuing operations was $84.9 million in 2021, $68.2 million in 2020 and $48.6 million in 2019. |
OTHER BALANCE SHEET LIABILITIES
OTHER BALANCE SHEET LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER BALANCE SHEET LIABILITIES | Note 10 — OTHER BALANCE SHEET LIABILITIES Other liabilities at December 31, 2021 and 2020 consist of the following: Accrued expenses and Other non-current liabilities (in millions) 2021 2020 2021 2020 Employment costs $ 187.9 $ 142.7 $ 7.6 $ 6.1 Environmental liabilities 25.8 20.3 98.7 99.4 Accrued taxes 56.8 49.0 — — Pension and other post-employment benefits 6.9 6.7 — — Accrued interest 14.1 14.1 — — Dividends payable 21.7 19.4 — — Unrecognized tax benefits 0.7 3.2 20.0 7.3 Derivatives 3.1 — — 48.4 Other 36.9 30.2 38.8 31.6 Total $ 353.9 $ 285.6 $ 165.1 $ 192.8 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | Note 11 — EMPLOYEE BENEFIT PLANS 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) 2021 2020 2021 2020 Change in benefit obligation: Projected benefit obligation - beginning of year $ 602.0 $ 478.0 $ 18.3 $ 7.1 Service cost 4.7 3.0 0.1 0.1 Interest cost 14.2 15.3 0.5 0.4 Actuarial (loss) gain (12.1) 24.5 (1.6) — Benefits paid (53.9) (40.9) (1.2) (0.7) Effect of settlement and/or curtailment (1.5) (23.0) (0.3) — Acquired benefit obligation — 137.3 — 11.3 Other (4.1) 7.8 — 0.1 Projected benefit obligation - end of year 549.3 602.0 15.8 18.3 Projected salary increases (7.7) (8.8) — — Accumulated benefit obligation $ 541.6 $ 593.2 $ 15.8 $ 18.3 Change in plan assets: Plan assets - beginning of year $ 573.6 $ 469.1 $ — $ — Actual return on plan assets 2.9 60.5 — — Company contributions 8.6 5.4 1.2 0.7 Benefits paid (53.9) (40.9) (1.2) (0.7) Effect of settlement and curtailment (0.9) (16.5) — — Acquired plan assets — 92.4 — — Other (1.0) 3.6 — — Plan assets - end of year $ 529.3 $ 573.6 $ — $ — Unfunded status at end of year $ (20.0) $ (28.4) $ (15.8) $ (18.3) Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows: Pension Benefits Health Care Benefits (in millions) 2021 2020 2021 2020 Non-current assets $ 71.1 $ 75.0 $ — $ — Accrued expenses and other liabilities 5.7 5.4 1.2 1.3 Pension and other post-retirement benefits 85.4 98.0 14.6 17.0 As of December 31, 2021 and 2020, 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) 2021 2020 2021 2020 Projected benefit obligation $ 116.6 $ 149.5 $ 15.8 $ 18.3 Fair value of plan assets 26.5 46.7 — — Accumulated benefit obligation 108.3 122.8 15.8 18.3 Fair value of plan assets 25.4 28.2 — — Weighted-average assumptions used to determine benefit obligations at December 31: Pension Benefits Health Care Benefits 2021 2020 2021 2020 Discount rate 2.69 % 2.47 % 2.85 % 2.66 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year N/A N/A 6.44 % 5.99 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A 4.08 % 4.04 % Year that the rate reaches the ultimate trend rate N/A N/A 2065 2065 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, 2021. Pension Benefits Health Care Benefits (in millions) 2021 2020 2019 2021 2020 2019 Components of net periodic benefit costs (gains): Service Cost $ 4.7 $ 3.0 $ 0.5 $ 0.1 $ 0.1 $ — Interest Cost 14.2 15.3 18.2 0.5 0.4 0.2 Expected return on plan assets (26.9) (25.3) (23.7) — — — Mark-to-market actuarial net losses (gains) 11.9 (10.8) (9.7) (1.7) — 0.1 Curtailment (0.6) (6.4) — (0.2) — — Net periodic cost (benefit) $ 3.3 $ (24.2) $ (14.7) $ (1.3) $ 0.5 $ 0.3 In 2021, we recognized a $9.4 million mark-to-market loss that was primarily the result of actual asset returns that were lower than our assumed returns. Partially offsetting the lower asset returns was an increase in our year end discount rate from 2.47% to 2.69%. In 2020, we recognized a $17.2 million mark-to-market gain that was primarily the result of actual asset returns that were higher than our assumed returns and mortality assumptions. Included in the mark-to-market gain was a $6.4 million gain related to lump sum payments that were offered to certain eligible participants of our US Qualified Pension Plan in the second quarter of 2020 which resulted in a settlement of $1.1 million, and a curtailment gain of $5.3 million related to certain acquired pension plans during the fourth quarter of 2020. Partially offsetting the mark-to-market gain was the decrease in our year end discount rate from 3.19% to 2.47%. In 2019, we recognized a $9.6 million mark-to-market gain that was primarily a 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%. Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Health Care Benefits 2021 2020 2019 2021 2020 2019 Discount rate* 2.47 % 3.19 % 4.11 % 2.66 % 3.06 % 3.98 % Expected long-term return on plan assets* 4.86 % 5.05 % 5.68 % — — — Assumed health care cost trend rates at December 31: Assumed health care cost trend rates at January 1: N/A N/A N/A 6.24 % 6.16 % 6.09 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A N/A 4.04 % 4.14 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A N/A 2066 2054 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, 2021 and 2020, by asset category, are as follows: Fair Value of Plan Assets at December 31, 2021 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 6.5 $ — $ — $ 6.5 Bonds and Notes 68.3 — — 68.3 Global Equity 10.6 — — 10.6 Other — 3.1 15.3 18.4 Total $ 85.4 $ 3.1 $ 15.3 103.8 Investments measured at NAV: Common collective funds: United States equity 32.7 International equity 32.1 Global equity 16.5 Fixed income 344.2 Balanced — Total common collective funds $ 425.5 Total investments at fair value $ 529.3 Fair Value of Plan Assets at December 31, 2020 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 8.2 $ — $ — $ 8.2 Bonds and Notes 53.4 — — 53.4 Global Equity 4.5 — — 4.5 Other — 3.1 17.4 20.5 Total $ 66.1 $ 3.1 $ 17.4 86.6 Investments at NAV Common collective funds United States equity 35.2 International equity 34.0 Global equity 16.3 Fixed income 383.8 Balanced 17.7 Total common collective funds $ 487.0 Total investments at fair value $ 573.6 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 2022 $ 43.6 $ 1.2 2023 41.8 1.3 2024 39.9 1.3 2025 39.5 1.3 2026 38.8 1.2 2027 through 2031 179.1 5.2 We currently estimate that employer contributions will be $8.2 million to all qualified and non-qualified pension plans and $1.2 million to all healthcare benefit plans in 2022. The Company 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) 2021 2020 2019 Retirement savings match $ 10.7 $ 9.9 $ 10.4 Retirement savings contribution — 0.6 — Total contribution $ 10.7 $ 10.5 $ 10.4 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 12 — 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 c ontribution 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 (Court) in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al., held that we must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls, Inc. (Westlake Vinyls)), together with certain defense costs of Goodrich Corporation. The rulings also provided that we 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 the Company nor The Geon Company ever operated the facility. Since 2009, the Company, along with respondents Westlake Vinyls, and Goodrich Corporation, has worked with the United States Environmental Protection Agency (USEPA) on the remedial activities at the site. 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 actions at the site. In February 2020, the three companies signed the agreed Consent Decree and remedial action Work Plan, which received Federal Court approval in January 2021. Our current reserve totals $113.2 million for this matter. Our Consolidated Balance Sheets include accruals totaling $124.5 million and $119.7 million as of December 31, 2021 and 2020, 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, 2021. However, such additional costs, if any, cannot be currently estimated. The following table details the changes in the environmental accrued liabilities: (in millions) 2021 2020 2019 Balance at beginning of the year $ 119.7 $ 112.0 $ 111.9 Environmental expenses 23.0 20.4 10.2 Net cash payments (18.2) (12.7) (10.3) Currency translation and other — — 0.2 Balance at the end of year $ 124.5 $ 119.7 $ 112.0 The environmental expenses noted in the table above are included in Cost of sales as are insurance recoveries received for previously incurred environmental costs. We received insurance recoveries of $4.5 million, $8.7 million, and $4.5 million in 2021, 2020 and 2019, respectively. Such insurance recoveries are recognized as a gain when received. Other Litigation — Avient is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries, and employment related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes our current reserves are appropriate and these matters will not have a material adverse effect on the condensed consolidated financial statements. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 13 — 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) 2021 2020 2019 Domestic $ 74.2 $ 19.6 $ 41.2 International 230.4 119.4 68.2 Income from continuing operations, before income taxes $ 304.6 $ 139.0 $ 109.4 A summary of income tax expense from continuing operations is as follows: (In millions) 2021 2020 2019 Current income tax expense (benefit): Domestic $ 49.0 $ (25.8) $ 24.8 International 52.3 32.7 21.9 Total current income tax expense $ 101.3 $ 6.9 $ 46.7 Deferred income tax (benefit) expense: Domestic $ (31.5) $ 17.2 $ (12.5) International 4.2 (18.9) (0.5) Total deferred income tax benefit $ (27.3) $ (1.7) $ (13.0) Total income tax expense $ 74.0 $ 5.2 $ 33.7 We elected to recognize the resulting tax on global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) as a period expense in the period in which 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 for the twelve months ended December 31, 2021, 2020 and 2019. . 2021 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % International tax rate differential: Asia 0.3 0.5 0.7 Europe (1.2) (4.4) (10.3) North and South America 0.7 1.2 0.7 Total international tax rate differential (0.2) (2.7) (8.9) (Benefit) Tax on GILTI and FDII (1.7) 3.1 (0.1) International tax on certain current and prior year earnings 1.4 2.0 1.6 Net impact of non-deductible acquisition earnouts and transaction cost 0.1 1.8 2.8 Tax on one-time gain from sale of other assets — — 6.0 Research and development credit (0.8) (2.1) (2.8) Carryback of capital losses (0.4) (13.1) — State and local tax, net 1.4 (3.4) 4.2 International permanent items 0.2 (5.2) 7.5 Net impact of uncertain tax positions 0.7 1.0 (2.4) Changes in valuation allowances 1.7 0.5 1.7 Other 0.9 0.8 0.2 Effective income tax rate 24.3 % 3.7 % 30.8 % 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 international tax rates and certain other items. Permanent items primarily consist of income or expense not taxable or deductible. Significant or other items impacting the effective income tax rate are described below. 2021 Significant items We recognized a U.S. tax benefit of $5.5 million (1.7%) from decreased Tax on GILTI and FDII arising from higher domestic income. State and local tax, net totaled expense of $4.2 million (1.4%), which resulted from normal operations. International permanent items included the favorable tax effect of notional interest deductions and a change in a foreign tax rate. Offsetting these items were withholding taxes on intercompany foreign-to-foreign income and deferred tax adjustments which resulted in a net unfavorable tax impact of $0.6 million (0.2%). 2020 Significant items We recognized a tax benefit of $18.2 million (13.1%) from a carryback of capital losses. State and local tax, net totaled a benefit of $4.7 million (3.4%), which included favorable prior year tax provision adjustments and a state tax benefit from a carryback of capital losses. International permanent items included the favorable tax effect of notional interest deductions, favorable tax treatment of foreign exchanges losses, offset by non-deductibility of interest expense related to the receipt of tax-exempt dividends, which resulted in a net favorable tax impact of $7.2 million (5.2%). 2019 Significant items State and local tax, net included the result from an unfavorable state tax audit decision combined with higher domestic earnings in 2019. International permanent items included the tax effect of non-deductibility of interest expense related to the receipt of tax-exempt dividends, which resulted in 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. Components of our deferred tax assets (liabilities) as of December 31, 2021 and 2020 were as follows: (In millions) 2021 2020 Deferred tax assets: Employment costs 34.2 24.9 Environmental reserves 30.9 29.7 Net operating loss carryforwards 52.8 55.6 Operating leases 16.1 16.6 Research and development 22.0 7.6 Other, net 45.7 36.3 Gross deferred tax assets $ 201.7 $ 170.7 Valuation allowances (19.6) (20.7) Total deferred tax assets, net of valuation allowances $ 182.1 $ 150.0 Deferred tax liabilities: Property, plant and equipment $ (47.4) $ (47.6) Goodwill and intangibles (130.6) (144.9) Operating leases (16.2) (17.0) Other, net (15.0) (2.4) Total deferred tax liabilities $ (209.2) $ (211.9) Net deferred tax (liabilities) assets $ (27.1) $ (61.9) Consolidated Balance Sheets: Non-current deferred income tax assets $ 73.5 $ 78.1 Non-current deferred income tax liabilities $ (100.6) $ (140.0) As of December 31, 2021, we had gross state net operating loss carryforwards of $17.8 million that expire between 2022 and 2041 or that have indefinite carryforward periods. Various international subsidiaries have gross net operating loss carryforwards totaling $195.4 million that expire between 2022 and 2039 or that have indefinite carryforward periods. Total tax valuation allowances decreased $1.1 million from the prior year primarily due to a decrease in the valuation allowance associated with certain assets acquired in the acquisition of Clariant Color. We have provided valuation allowances of $11.9 million against certain international and state net operating loss carryforwards that, as of this time, are expected to expire prior to utilization. As of December 31, 2021, no tax provision has been made on approximately $489 million of undistributed earnings of certain non-U.S. subsidiaries as these amounts continue to be indefinitely reinvested consistent with our policy. The ending balance of international tax on certain current and prior year earnings accrual as of December 31, 2021 and 2020 included in the Other, net deferred tax liabilities line in the table above are $10.1 million and $9.2 million, respectively. We made worldwide income tax payments of $102.1 million, $188.8 million, and $45.7 million in 2021, 2020, and 2019, respectively. We received refunds of $12.6 million, $9.9 million, and $20.0 million in 2021, 2020, and 2019, respectively. The Company records tax provisions for uncertain tax positions in accordance with FASB ASC Topic 740, Income Taxes . A reconciliation of unrecognized tax benefits is as follows: Unrecognized Tax Benefits (In millions) 2021 2020 2019 Balance as of January 1, $ 9.5 $ 11.2 $ 16.4 Increases as a result of positions taken during current year 6.2 0.6 1.1 Increases as a result of positions taken for prior years 0.2 0.6 0.4 Balance related to acquired businesses 5.4 — — Reductions for tax positions of prior years — — (0.7) Decreases as a result of lapse of statute of limitations (1.5) (0.5) (5.0) Decreases relating to settlements with taxing authorities (0.1) (2.8) — Other, net 0.4 0.4 (1.0) Balance as of December 31, $ 20.1 $ 9.5 $ 11.2 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | Note 14 — 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 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 In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan (2020 EICP). This 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 Avient common shares that are held in treasury. Share-based compensation is included in Selling and administrative expense . A summary of compensation expense by type of award follows: (In millions) 2021 2020 2019 Stock appreciation rights $ 5.2 $ 4.4 $ 4.8 Performance shares 0.2 0.2 0.3 Restricted stock units 5.8 6.7 6.5 Total share-based compensation $ 11.2 $ 11.3 $ 11.6 Stock Appreciation Rights During the years ended December 31, 2021, 2020 and 2019, the total number of SARs granted was 0.5 million, 0.5 million and 0.6 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 Avient 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 Avient'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 2021, 2020 and 2019: 2021 2020 2019 Expected volatility 34.0% 33.0% 40.0% Expected dividends 2.01% 2.57% 2.47% Expected term (in years) 6.9 6.9 6.6 Risk-free rate 1.19% 1.56% 2.78% Value of SARs granted $11.72 $8.11 $10.13 A summary of SAR activity for 2021 is presented below: (In millions, except per share data) Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic value Outstanding as of January 1, 2021 2.6 $ 32.43 6.4 $ 20.7 Granted 0.5 42.27 Exercised (1.2) 30.00 Forfeited or expired — 30.43 Outstanding as of December 31, 2021 1.9 $ 35.64 7.1 $ 39.1 Vested and exercisable as of December 31, 2021 0.9 $ 33.86 5.4 $ 19.6 The total intrinsic value of SARs exercised during 2021, 2020 and 2019 was $22.9 million, $1.8 million and $0.4 million, respectively. As of December 31, 2021, there was $3.3 million of total unrecognized compensation cost related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 23 months. Restricted Stock Units RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are met. During 2021, 2020 and 2019, the total number of RSUs granted was 0.2 million, 0.3 million and 0.2 million, respectively. In 2021, 0.2 million RSUs vested. These RSUs, which generally 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, 2021, 0.6 million RSUs remain unvested with a weighted-average grant date fair value of $33.23. Unrecognized compensation cost for RSUs at December 31, 2021 was $7.4 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, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Note 15 — 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 . Avient has three reportable segments. The following is a description of each reportable segment. Color, Additives and Inks Color, Additives and Inks is a leading formulator of specialized custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, as well as specialty inks. 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 consumer, packaging, healthcare, industrial, transportation, building and construction, wire and cable, textiles and appliances. Color, Additives and Inks has manufacturing, sales and service facilities located throughout North America, South America, Asia, Europe, Middle East, and Africa. Specialty Engineered Materials Specialty Engineered Materials is a leading formulator 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 Avient-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: (In millions) Year Ended December 31, 2021 Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 2,392.3 $ 9.3 $ 2,401.6 $ 303.1 $ 105.7 $ 40.5 Specialty Engineered Materials 833.2 85.7 918.9 132.0 31.7 26.4 Distribution 1,587.3 43.6 1,630.9 93.2 0.8 0.8 Corporate and eliminations 6.0 (138.6) (132.6) (147.1) 7.7 32.9 Total $ 4,818.8 $ — $ 4,818.8 $ 381.2 $ 145.9 $ 100.6 Year Ended December 31, 2020 Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 1,497.0 $ 5.9 $ 1,502.9 $ 180.8 $ 75.1 $ 30.5 Specialty Engineered Materials 644.1 64.7 708.8 94.4 30.0 14.2 Distribution 1,087.4 22.9 1,110.3 69.5 0.7 1.4 Corporate and eliminations 13.6 (93.5) (79.9) (155.4) 9.2 17.6 Total $ 3,242.1 $ — $ 3,242.1 $ 189.3 $ 115.0 $ 63.7 Year Ended December 31, 2019 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 $ 42.7 $ 21.5 Specialty Engineered Materials 689.6 56.1 745.7 83.7 29.5 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) (149.7) 5.4 21.2 Total $ 2,862.7 $ — $ 2,862.7 $ 156.8 $ 78.1 $ 67.6 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) 2021 2020 2019 Sales: United States $ 2,281.2 $ 1,619.7 $ 1,560.4 Canada 151.8 107.6 140.6 Mexico 348.2 236.2 261.2 South America 85.8 51.4 27.8 Europe 1,195.6 729.8 556.2 Asia 756.2 497.4 316.5 Total Sales $ 4,818.8 $ 3,242.1 $ 2,862.7 2021 2020 Total Assets: Color, Additives and Inks $ 2,965.2 $ 3,018.7 Specialty Engineered Materials 771.0 728.1 Distribution 384.9 244.9 Corporate and eliminations 876.1 878.8 Total $ 4,997.2 $ 4,870.5 2021 2020 Property, net: United States $ 276.2 $ 261.8 Canada 1.3 1.4 Mexico 8.3 8.9 South America 19.6 20.1 Europe 172.4 224.5 Asia 198.3 178.2 Total Long lived assets $ 676.1 $ 694.9 |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | Note 16 — 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. 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, we assess both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures and that ongoing assessment will be done qualitatively for highly effective relationships. 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. In August and September 2020, we executed an additional five cross currency swaps, which are structured similarly to those executed in 2018. These swaps have a combined notional amount of 677.0 million Euros, which were set to mature in May 2025. In September 2021, we executed five cross currency swap transactions that extended the length of the 2020 swaps agreements through 2028. Additionally, we entered into three new cross currency swaps with a combine notional amount of 338.7 million euros that also mature in 2028. These effectively convert a portion of our U.S. Dollar denominated fixed-rate debt to Euro denominated fixed-rate debt. That conversion resulted in gains of $16.4 million and $10.4 million for the years ended December 31, 2021 and 2020, respectively, which was recognized within Interest expense, net. We designated the swaps as net investment hedges of our net investment in our European operations and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized within A ccumulated Other Comprehensive Income (Loss) (AOCI) to offset the changes in the values of the net investment being hedged. For the years ended December 31, 2021 and 2020, a gain of $52.5 million and a loss of $41.7 million, respectively, were recognized within translation adjustments in AOCI, net of tax. Derivatives Designated as 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. The net interest payments accrued each month for these highly effective hedges 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 AOCI. The amount of expense recognized within Interest expense, net , associated with interest rate swaps was $4.0 million and $3.2 million for the years ending December 31, 2021 and 2020, respectively. The amount recognized in AOCI, net of tax was a gain of $3.2 million and loss of $1.6 million for the years ended December 31, 2021 and 2020, 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 as of December 31, 2021 and 2020 is as follows: (In millions) Balance Sheet Location 2021 2020 Assets Cross Currency Swaps (Net Investment Hedge) Other non-current assets $ 31.7 $ — Liabilities Cross Currency Swaps (Net Investment Hedge) Other non-current liabilities $ — $ 41.1 Interest Rate Swap (Fair Value Hedge) Other current liabilities $ 3.1 $ — Interest Rate Swap (Fair Value Hedge) Other non-current liabilities $ — $ 7.3 |
DESCRIPTION Of BUSINESS AND S_2
DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Adopted and Accounting Standards Not Yet Adopted | Accounting Standards Adopted On January 1, 2021, the Company adopted Financial Accounting Standards Board (FASB) Account Standards Update (ASU) 2019-12, Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes (ASU 2019-12) , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in FASB Accounting Standards Codification (ASC) 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any material impact. Accounting Standards Not Yet Adopted ASU 2020-04, Reference Rate Reform (ASU 2020-04) , provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as LIBOR. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. These expedients are effective for the period from March 2020 to December 31, 2022. The Company has not adopted any of the expedients or exceptions through December 31, 2021 but will continue to evaluate the impact of adopting this standard on our consolidated financial statements and disclosures. |
Consolidation and Basis Of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Avient 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, current conditions and forecasted information, the credit risk of specific customers, economic conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit insurance. |
Inventories | Inventories Raw materials and finished goods are carried at lower of cost or market using either the weighted average cost or the first-in, first-out (FIFO) method. The inventory reserve totaled $24.5 million and $22.5 million at December 31, 2021 and 2020, respectively. |
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. |
Leases | We account for operating and finance leases under the provisions of FASB ASC Topic 842. |
Finite-lived Intangible Assets | Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The 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 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 2021, 2020 or 2019. There are no reporting units identified as at-risk of 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, 2022. 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 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. |
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, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , 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 (Loss) (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. |
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 $83.2 million in 2021, $59.8 million in 2020 and $50.6 million in 2019 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 , 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 |
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, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive income (loss) in 2021, 2020 and 2019 were as follows: (In millions) Cumulative Translation Adjustment and Related Hedging Instruments Pension and other post-retirement benefits Cash Flow Hedges Total Balance at January 1, 2019 $ (86.2) $ 5.2 $ (1.3) $ (82.3) Translation Adjustments (6.9) — — (6.9) Unrealized losses 9.1 — (2.5) 6.6 Balance at December 31, 2019 (84.0) 5.2 (3.8) (82.6) Translation Adjustments 152.3 — — 152.3 Unrealized losses (41.7) — (1.6) (43.3) Balance at December 31, 2020 26.6 5.2 (5.4) 26.4 Translation Adjustments (127.7) — — (127.7) Unrealized gains 52.5 — 3.2 55.7 Balance at December 31, 2021 $ (48.6) $ 5.2 $ (2.2) $ (45.6) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Summarized preliminary purchase price allocation | The summarized purchase price allocation is as follows: (In millions) Preliminary Allocation As of December 31, 2020 Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 145.1 $ — $ 145.1 Accounts receivable 170.8 — 170.8 Inventories 99.0 0.2 99.2 Other current assets 56.9 6.3 63.2 Property 267.6 (7.5) 260.1 Goodwill 569.0 (7.8) 561.2 Intangible assets: — Customer relationships 221.9 (20.7) 201.2 Trade names and trademarks 32.0 2.8 34.8 Patents, technology and other 273.9 7.4 281.3 Operating lease assets 30.1 — 30.1 Other long-term assets 1.3 5.8 7.1 Short term debt (0.4) — (0.4) Accounts payable (92.7) 1.2 (91.5) Current operating lease obligations (2.8) — (2.8) Accrued expenses and other current liabilities (81.2) (4.5) (85.7) Long-term debt (6.7) — (6.7) Non-current operating lease obligations (25.8) — (25.8) Deferred tax liabilities (60.7) 25.9 (34.8) Pension and other post-retirement benefits (53.8) — (53.8) Other long-term liabilities (5.4) (6.7) (12.1) Non-controlling interests (12.8) (2.4) (15.2) Total purchase price consideration $ 1,525.3 $ — $ 1,525.3 |
Pro Forma Information Sales and Income from Continuing Operations | Had the Clariant Color Acquisition occurred on January 1, 2019, which was the beginning of the fiscal year prior to the acquisition, sales and income from continuing operations before income taxes for the years ended December 31, 2020 and 2019 on a pro forma basis would have been as follows: (Unaudited) (In millions) 2020 2019 Sales $ 3,782.5 $ 3,981.3 Income from continuing operations before income taxes 204.2 98.9 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table summarizes the discontinued operations associated with PP&S for the years ended December 31, 2020 and 2019. (In millions) 2020 2019 Sales $ — $ 488.9 Cost of sales — (390.1) Selling and administrative expense (0.9) (28.0) Gain on sale — 591.2 Pretax (loss) income of discontinued operations (0.9) 662.0 Income tax expense 0.5 (148.9) (Loss) income from discontinued operations, net of taxes $ (0.4) $ 513.1 The following table presents the depreciation, amortization, and capital expenditures of our discontinued operations for the twelve months ended December 31, 2020 and 2019. There were no other significant operating or investing non-cash items for the twelve months ended December 31, 2020 and 2019. (In millions) 2020 2019 Depreciation and amortization $ — $ 9.4 Capital Expenditures — 14.1 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Operating Segment | Goodwill as of December 31, 2021 and 2020 and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks Distribution Total Balance at January 1, 2020 $ 236.3 $ 447.8 $ 1.6 $ 685.7 Acquisition of businesses — 569.0 — 569.0 Currency translation 1.5 51.9 — 53.4 Balance at December 31, 2020 237.8 1,068.7 1.6 1,308.1 Acquisition of businesses — 14.1 — 14.1 Currency translation (1.5) (34.3) — (35.8) Balance at December 31, 2021 $ 236.3 $ 1,048.5 $ 1.6 $ 1,286.4 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2021 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 507.2 $ (135.4) $ 6.0 $ 377.8 Patents, technology and other 566.7 (134.3) 1.8 434.2 Indefinite-lived trade names 113.2 — — 113.2 Total $ 1,187.1 $ (269.7) $ 7.8 $ 925.2 As of December 31, 2020 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 508.7 $ (109.8) $ 23.8 $ 422.7 Patents, technology and other 549.9 (102.4) 28.8 476.3 Indefinite-lived trade names 109.5 — — 109.5 Total $ 1,168.1 $ (212.2) $ 52.6 $ 1,008.5 |
Schedule of Finite-lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of December 31, 2021 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 507.2 $ (135.4) $ 6.0 $ 377.8 Patents, technology and other 566.7 (134.3) 1.8 434.2 Indefinite-lived trade names 113.2 — — 113.2 Total $ 1,187.1 $ (269.7) $ 7.8 $ 925.2 As of December 31, 2020 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 508.7 $ (109.8) $ 23.8 $ 422.7 Patents, technology and other 549.9 (102.4) 28.8 476.3 Indefinite-lived trade names 109.5 — — 109.5 Total $ 1,168.1 $ (212.2) $ 52.6 $ 1,008.5 |
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) 2022 2023 2024 2025 2026 Expected Amortization Expense $ 55.5 $ 53.1 $ 52.6 $ 52.6 $ 51.9 |
EMPLOYEE SEPARATION AND RESTR_2
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges Income Statement Line Item and by Activity and Expected to Be Incurred | Total restructuring costs included in the Consolidated Statement of Income for the twelve months ended December 31, 2021 and 2020 are as follows: (in millions) 2021 2020 Cost of goods sold $ 14.5 $ 4.2 Selling and administrative expenses 0.2 15.4 Total employee separation and restructuring charges $ 14.7 $ 19.6 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2026 $ — $ — $ — — % 5.25% senior notes due 2023 600.0 1.4 598.6 5.25 % 5.75% senior notes due 2025 650.0 6.8 643.2 5.75 % Senior secured term loan due 2026 611.5 6.2 605.3 1.85 % Other Debt 11.8 — 11.8 Total Debt 1,873.3 14.4 1,858.9 Less short-term and current portion of long-term debt 8.6 — 8.6 Total long-term debt, net of current portion $ 1,864.70 $ 14.40 $ 1,850.30 As of December 31, 2020 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2026 $ — $ — $ — — % 5.25% senior notes due 2023 600.0 2.5 597.5 5.25 % 5.75% senior notes due 2025 650.0 8.8 641.2 5.75 % Senior secured term loan due 2026 618.0 8.0 610.0 2.36 % Other Debt 23.9 — 23.9 Total Debt 1,891.9 19.3 1,872.6 Less short-term and current portion of long-term debt 18.6 — 18.6 Total long-term debt, net of current portion $ 1,873.3 $ 19.3 $ 1,854.0 |
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) 2022 $ 8.6 2023 608.6 2024 8.6 2025 658.7 2026 6.9 Thereafter 581.9 Aggregate maturities $ 1,873.3 |
LEASING ARRANGEMENTS (Tables)
LEASING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease cost from continued operations recognized within our Condensed Consolidated Statements of Income for the twelve months ended December 31, 2021 and 2020 were as follows: (In millions) 2021 2020 Cost of sales $ 22.3 $ 20.0 Selling and administrative expense 12.1 13.3 Total Operating lease cost $ 34.4 $ 33.3 |
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, 2021 and 2020 are as follows: Maturity Analysis of Lease Liabilities: (in millions) 2021 2022 $ 26.3 2023 19.8 2024 12.6 2025 7.7 2026 4.6 Thereafter 10.3 Total $ 81.3 Less amount of lease payment representing interest (7.0) Total present value of lease payments $ 74.3 (in millions) 2020 2021 $ 28.0 2022 21.4 2023 15.0 2024 8.7 2025 4.7 Thereafter 13.3 Total $ 91.1 Less amount of lease payment representing interest (10.0) Total present value of lease payments $ 81.1 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, Net | Components of Inventories, net as of December 31, 2021 and 2020 are as follows: (In millions) 2021 2020 Finished products $ 244.4 $ 171.7 Work in process 21.2 16.6 Raw materials and supplies 195.5 139.2 Inventories, net $ 461.1 $ 327.5 |
PROPERTY, NET (Tables)
PROPERTY, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Net | Components of Property, net as of December 31, 2021 and 2020 are as follows: (In millions) 2021 2020 Land and land improvements $ 91.5 $ 95.7 Buildings 350.6 333.5 Machinery and equipment 972.3 948.2 Property, gross 1,414.4 1,377.4 Less accumulated depreciation (738.3) (682.5) Property, net $ 676.1 $ 694.9 |
OTHER BALANCE SHEET LIABILITI_2
OTHER BALANCE SHEET LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities | Other liabilities at December 31, 2021 and 2020 consist of the following: Accrued expenses and Other non-current liabilities (in millions) 2021 2020 2021 2020 Employment costs $ 187.9 $ 142.7 $ 7.6 $ 6.1 Environmental liabilities 25.8 20.3 98.7 99.4 Accrued taxes 56.8 49.0 — — Pension and other post-employment benefits 6.9 6.7 — — Accrued interest 14.1 14.1 — — Dividends payable 21.7 19.4 — — Unrecognized tax benefits 0.7 3.2 20.0 7.3 Derivatives 3.1 — — 48.4 Other 36.9 30.2 38.8 31.6 Total $ 353.9 $ 285.6 $ 165.1 $ 192.8 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [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) 2021 2020 2021 2020 Change in benefit obligation: Projected benefit obligation - beginning of year $ 602.0 $ 478.0 $ 18.3 $ 7.1 Service cost 4.7 3.0 0.1 0.1 Interest cost 14.2 15.3 0.5 0.4 Actuarial (loss) gain (12.1) 24.5 (1.6) — Benefits paid (53.9) (40.9) (1.2) (0.7) Effect of settlement and/or curtailment (1.5) (23.0) (0.3) — Acquired benefit obligation — 137.3 — 11.3 Other (4.1) 7.8 — 0.1 Projected benefit obligation - end of year 549.3 602.0 15.8 18.3 Projected salary increases (7.7) (8.8) — — Accumulated benefit obligation $ 541.6 $ 593.2 $ 15.8 $ 18.3 Change in plan assets: Plan assets - beginning of year $ 573.6 $ 469.1 $ — $ — Actual return on plan assets 2.9 60.5 — — Company contributions 8.6 5.4 1.2 0.7 Benefits paid (53.9) (40.9) (1.2) (0.7) Effect of settlement and curtailment (0.9) (16.5) — — Acquired plan assets — 92.4 — — Other (1.0) 3.6 — — Plan assets - end of year $ 529.3 $ 573.6 $ — $ — Unfunded status at end of year $ (20.0) $ (28.4) $ (15.8) $ (18.3) |
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) 2021 2020 2021 2020 Non-current assets $ 71.1 $ 75.0 $ — $ — Accrued expenses and other liabilities 5.7 5.4 1.2 1.3 Pension and other post-retirement benefits 85.4 98.0 14.6 17.0 |
Schedule of Projected and Accumulated Benefit Obligations in Excess of Plan Assets | As of December 31, 2021 and 2020, 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) 2021 2020 2021 2020 Projected benefit obligation $ 116.6 $ 149.5 $ 15.8 $ 18.3 Fair value of plan assets 26.5 46.7 — — Accumulated benefit obligation 108.3 122.8 15.8 18.3 Fair value of plan assets 25.4 28.2 — — |
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, 2021. Pension Benefits Health Care Benefits (in millions) 2021 2020 2019 2021 2020 2019 Components of net periodic benefit costs (gains): Service Cost $ 4.7 $ 3.0 $ 0.5 $ 0.1 $ 0.1 $ — Interest Cost 14.2 15.3 18.2 0.5 0.4 0.2 Expected return on plan assets (26.9) (25.3) (23.7) — — — Mark-to-market actuarial net losses (gains) 11.9 (10.8) (9.7) (1.7) — 0.1 Curtailment (0.6) (6.4) — (0.2) — — Net periodic cost (benefit) $ 3.3 $ (24.2) $ (14.7) $ (1.3) $ 0.5 $ 0.3 |
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 2021 2020 2021 2020 Discount rate 2.69 % 2.47 % 2.85 % 2.66 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year N/A N/A 6.44 % 5.99 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A 4.08 % 4.04 % Year that the rate reaches the ultimate trend rate N/A N/A 2065 2065 Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Health Care Benefits 2021 2020 2019 2021 2020 2019 Discount rate* 2.47 % 3.19 % 4.11 % 2.66 % 3.06 % 3.98 % Expected long-term return on plan assets* 4.86 % 5.05 % 5.68 % — — — Assumed health care cost trend rates at December 31: Assumed health care cost trend rates at January 1: N/A N/A N/A 6.24 % 6.16 % 6.09 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A N/A 4.04 % 4.14 % 4.50 % Year that the rate reaches the ultimate trend rate N/A N/A N/A 2066 2054 2027 |
Fair Values of Pension Plan Assets | The fair values of pension plan assets at December 31, 2021 and 2020, by asset category, are as follows: Fair Value of Plan Assets at December 31, 2021 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 6.5 $ — $ — $ 6.5 Bonds and Notes 68.3 — — 68.3 Global Equity 10.6 — — 10.6 Other — 3.1 15.3 18.4 Total $ 85.4 $ 3.1 $ 15.3 103.8 Investments measured at NAV: Common collective funds: United States equity 32.7 International equity 32.1 Global equity 16.5 Fixed income 344.2 Balanced — Total common collective funds $ 425.5 Total investments at fair value $ 529.3 Fair Value of Plan Assets at December 31, 2020 (In millions) Quoted Significant Significant Total Investments (at Fair Value) Asset category Cash $ 8.2 $ — $ — $ 8.2 Bonds and Notes 53.4 — — 53.4 Global Equity 4.5 — — 4.5 Other — 3.1 17.4 20.5 Total $ 66.1 $ 3.1 $ 17.4 86.6 Investments at NAV Common collective funds United States equity 35.2 International equity 34.0 Global equity 16.3 Fixed income 383.8 Balanced 17.7 Total common collective funds $ 487.0 Total investments at fair value $ 573.6 |
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 2022 $ 43.6 $ 1.2 2023 41.8 1.3 2024 39.9 1.3 2025 39.5 1.3 2026 38.8 1.2 2027 through 2031 179.1 5.2 |
Schedule of Contributions to the Retirement Savings Plan | Following are our contributions to the RSP: (In millions) 2021 2020 2019 Retirement savings match $ 10.7 $ 9.9 $ 10.4 Retirement savings contribution — 0.6 — Total contribution $ 10.7 $ 10.5 $ 10.4 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) 2021 2020 2019 Balance at beginning of the year $ 119.7 $ 112.0 $ 111.9 Environmental expenses 23.0 20.4 10.2 Net cash payments (18.2) (12.7) (10.3) Currency translation and other — — 0.2 Balance at the end of year $ 124.5 $ 119.7 $ 112.0 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income from continuing operations, before income taxes consists of the following: (In millions) 2021 2020 2019 Domestic $ 74.2 $ 19.6 $ 41.2 International 230.4 119.4 68.2 Income from continuing operations, before income taxes $ 304.6 $ 139.0 $ 109.4 |
Summary of Income Tax Expense | A summary of income tax expense from continuing operations is as follows: (In millions) 2021 2020 2019 Current income tax expense (benefit): Domestic $ 49.0 $ (25.8) $ 24.8 International 52.3 32.7 21.9 Total current income tax expense $ 101.3 $ 6.9 $ 46.7 Deferred income tax (benefit) expense: Domestic $ (31.5) $ 17.2 $ (12.5) International 4.2 (18.9) (0.5) Total deferred income tax benefit $ (27.3) $ (1.7) $ (13.0) Total income tax expense $ 74.0 $ 5.2 $ 33.7 |
Reconciliation Between Effective Income Tax Rate and U.S. Statutory Rate | 2021 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % International tax rate differential: Asia 0.3 0.5 0.7 Europe (1.2) (4.4) (10.3) North and South America 0.7 1.2 0.7 Total international tax rate differential (0.2) (2.7) (8.9) (Benefit) Tax on GILTI and FDII (1.7) 3.1 (0.1) International tax on certain current and prior year earnings 1.4 2.0 1.6 Net impact of non-deductible acquisition earnouts and transaction cost 0.1 1.8 2.8 Tax on one-time gain from sale of other assets — — 6.0 Research and development credit (0.8) (2.1) (2.8) Carryback of capital losses (0.4) (13.1) — State and local tax, net 1.4 (3.4) 4.2 International permanent items 0.2 (5.2) 7.5 Net impact of uncertain tax positions 0.7 1.0 (2.4) Changes in valuation allowances 1.7 0.5 1.7 Other 0.9 0.8 0.2 Effective income tax rate 24.3 % 3.7 % 30.8 % |
Components of Deferred Tax Assets and (Liabilities) | Components of our deferred tax assets (liabilities) as of December 31, 2021 and 2020 were as follows: (In millions) 2021 2020 Deferred tax assets: Employment costs 34.2 24.9 Environmental reserves 30.9 29.7 Net operating loss carryforwards 52.8 55.6 Operating leases 16.1 16.6 Research and development 22.0 7.6 Other, net 45.7 36.3 Gross deferred tax assets $ 201.7 $ 170.7 Valuation allowances (19.6) (20.7) Total deferred tax assets, net of valuation allowances $ 182.1 $ 150.0 Deferred tax liabilities: Property, plant and equipment $ (47.4) $ (47.6) Goodwill and intangibles (130.6) (144.9) Operating leases (16.2) (17.0) Other, net (15.0) (2.4) Total deferred tax liabilities $ (209.2) $ (211.9) Net deferred tax (liabilities) assets $ (27.1) $ (61.9) Consolidated Balance Sheets: Non-current deferred income tax assets $ 73.5 $ 78.1 Non-current deferred income tax liabilities $ (100.6) $ (140.0) |
Changes in Unrecognized Tax Benefits | Unrecognized Tax Benefits (In millions) 2021 2020 2019 Balance as of January 1, $ 9.5 $ 11.2 $ 16.4 Increases as a result of positions taken during current year 6.2 0.6 1.1 Increases as a result of positions taken for prior years 0.2 0.6 0.4 Balance related to acquired businesses 5.4 — — Reductions for tax positions of prior years — — (0.7) Decreases as a result of lapse of statute of limitations (1.5) (0.5) (5.0) Decreases relating to settlements with taxing authorities (0.1) (2.8) — Other, net 0.4 0.4 (1.0) Balance as of December 31, $ 20.1 $ 9.5 $ 11.2 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Compensation Expense | Share-based compensation is included in Selling and administrative expense . A summary of compensation expense by type of award follows: (In millions) 2021 2020 2019 Stock appreciation rights $ 5.2 $ 4.4 $ 4.8 Performance shares 0.2 0.2 0.3 Restricted stock units 5.8 6.7 6.5 Total share-based compensation $ 11.2 $ 11.3 $ 11.6 |
Summary of Assumptions Related To Grants | The following is a summary of the weighted average assumptions related to the grants issued during 2021, 2020 and 2019: 2021 2020 2019 Expected volatility 34.0% 33.0% 40.0% Expected dividends 2.01% 2.57% 2.47% Expected term (in years) 6.9 6.9 6.6 Risk-free rate 1.19% 1.56% 2.78% Value of SARs granted $11.72 $8.11 $10.13 |
Summary of Stock Appreciation Rights | A summary of SAR activity for 2021 is presented below: (In millions, except per share data) Shares Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Term Aggregate Intrinsic value Outstanding as of January 1, 2021 2.6 $ 32.43 6.4 $ 20.7 Granted 0.5 42.27 Exercised (1.2) 30.00 Forfeited or expired — 30.43 Outstanding as of December 31, 2021 1.9 $ 35.64 7.1 $ 39.1 Vested and exercisable as of December 31, 2021 0.9 $ 33.86 5.4 $ 19.6 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | Financial information by reportable segment is as follows: (In millions) Year Ended December 31, 2021 Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 2,392.3 $ 9.3 $ 2,401.6 $ 303.1 $ 105.7 $ 40.5 Specialty Engineered Materials 833.2 85.7 918.9 132.0 31.7 26.4 Distribution 1,587.3 43.6 1,630.9 93.2 0.8 0.8 Corporate and eliminations 6.0 (138.6) (132.6) (147.1) 7.7 32.9 Total $ 4,818.8 $ — $ 4,818.8 $ 381.2 $ 145.9 $ 100.6 Year Ended December 31, 2020 Sales to External Customers Intersegment Sales Total Sales Operating Income Depreciation and Amortization Capital Expenditures Color, Additives and Inks $ 1,497.0 $ 5.9 $ 1,502.9 $ 180.8 $ 75.1 $ 30.5 Specialty Engineered Materials 644.1 64.7 708.8 94.4 30.0 14.2 Distribution 1,087.4 22.9 1,110.3 69.5 0.7 1.4 Corporate and eliminations 13.6 (93.5) (79.9) (155.4) 9.2 17.6 Total $ 3,242.1 $ — $ 3,242.1 $ 189.3 $ 115.0 $ 63.7 Year Ended December 31, 2019 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 $ 42.7 $ 21.5 Specialty Engineered Materials 689.6 56.1 745.7 83.7 29.5 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) (149.7) 5.4 21.2 Total $ 2,862.7 $ — $ 2,862.7 $ 156.8 $ 78.1 $ 67.6 |
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) 2021 2020 2019 Sales: United States $ 2,281.2 $ 1,619.7 $ 1,560.4 Canada 151.8 107.6 140.6 Mexico 348.2 236.2 261.2 South America 85.8 51.4 27.8 Europe 1,195.6 729.8 556.2 Asia 756.2 497.4 316.5 Total Sales $ 4,818.8 $ 3,242.1 $ 2,862.7 2021 2020 Total Assets: Color, Additives and Inks $ 2,965.2 $ 3,018.7 Specialty Engineered Materials 771.0 728.1 Distribution 384.9 244.9 Corporate and eliminations 876.1 878.8 Total $ 4,997.2 $ 4,870.5 2021 2020 Property, net: United States $ 276.2 $ 261.8 Canada 1.3 1.4 Mexico 8.3 8.9 South America 19.6 20.1 Europe 172.4 224.5 Asia 198.3 178.2 Total Long lived assets $ 676.1 $ 694.9 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 as of December 31, 2021 and 2020 is as follows: (In millions) Balance Sheet Location 2021 2020 Assets Cross Currency Swaps (Net Investment Hedge) Other non-current assets $ 31.7 $ — Liabilities Cross Currency Swaps (Net Investment Hedge) Other non-current liabilities $ — $ 41.1 Interest Rate Swap (Fair Value Hedge) Other current liabilities $ 3.1 $ — Interest Rate Swap (Fair Value Hedge) Other non-current liabilities $ — $ 7.3 |
DESCRIPTION Of BUSINESS AND S_4
DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Jul. 01, 2020 | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Inventory allowance | $ 24,500,000 | $ 22,500,000 | ||
Impairment of long-lived assets | 0 | 0 | $ 0 | |
Impairment of goodwill | 0 | 0 | 0 | |
Research and development costs | $ 83,200,000 | $ 59,800,000 | $ 50,600,000 | |
Minimum | ||||
Accounting Policies [Line Items] | ||||
Finite-lived intangible asset useful life | 18 years | |||
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 | 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 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | $ 1,711.7 | $ 1,052.7 | $ 540.6 |
Translation Adjustments | (127.7) | 152.3 | (6.9) |
Unrealized gains (losses), cash flow hedge | 3.2 | (1.6) | (2.5) |
Unrealized gains (losses), net investment and cash flow hedge | 55.7 | (43.3) | 6.6 |
Ending Balance | 1,790.5 | 1,711.7 | 1,052.7 |
Cumulative Translation Adjustment and Related Hedging Instruments | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 26.6 | (84) | (86.2) |
Translation Adjustments | (127.7) | 152.3 | (6.9) |
Unrealized gains (losses), net investment hedging | 52.5 | (41.7) | 9.1 |
Ending Balance | (48.6) | 26.6 | (84) |
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 | (5.4) | (3.8) | (1.3) |
Unrealized gains (losses), cash flow hedge | 3.2 | (1.6) | (2.5) |
Ending Balance | (2.2) | (5.4) | (3.8) |
Total | |||
Changes in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 26.4 | (82.6) | (82.3) |
Ending Balance | $ (45.6) | $ 26.4 | $ (82.6) |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) $ in Millions | Jul. 01, 2021USD ($) | Jul. 01, 2020USD ($) | May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($) | Jan. 02, 2019period | May 13, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||
Business acquisitions, net of cash acquired | $ 47.6 | $ 1,380.2 | $ 119.6 | ||||||||
Proceeds from issuance of senior unsecured notes | $ 640.5 | ||||||||||
Goodwill | 1,286.4 | 1,308.1 | 685.7 | ||||||||
Payment associated with earnout | $ 0 | 50.8 | 0 | ||||||||
Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset useful life | 18 years | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset useful life | 20 years | 20 years | |||||||||
Underwritten Public Offering | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from issuance of common shares | $ 496.1 | ||||||||||
Clariant Color Acquisition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business acquisitions, net of cash acquired | $ 1,400 | ||||||||||
Goodwill | 569 | $ 561.2 | |||||||||
Acquisition related costs and adjustments | 19.2 | ||||||||||
Clariant Color Acquisition | Expense Adjustment | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Pro forma adjustments | 6.6 | $ 12.7 | |||||||||
Clariant Color Acquisition | Fair Value Adjustment to Inventory | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Pro forma adjustments | 9.7 | ||||||||||
Clariant Color Acquisition | Interest Expense, Net | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Pro forma adjustments | $ 10.1 | ||||||||||
Magna Colours | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 22 | ||||||||||
Purchase price, net | 47.6 | ||||||||||
Intangible assets | $ 27.5 | ||||||||||
Magna Colours | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset useful life | 10 years | ||||||||||
Magna Colours | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite-lived intangible asset useful life | 20 years | ||||||||||
PlastiComp, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Earn-out ceiling | $ 35 | ||||||||||
Fiber-Line | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of annual earn-out periods | period | 2 | ||||||||||
Payment associated with earnout | $ 53.9 |
BUSINESS COMBINATIONS - Purchas
BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 01, 2020 | Dec. 31, 2019 | |
Preliminary Allocation/Final Allocation | |||||
Goodwill | $ 1,286.4 | $ 1,308.1 | $ 685.7 | ||
Clariant Color Acquisition | |||||
Preliminary Allocation/Final Allocation | |||||
Cash and cash equivalents | $ 145.1 | 145.1 | |||
Accounts receivable | 170.8 | 170.8 | |||
Inventories | 99.2 | 99 | |||
Other current assets | 63.2 | 56.9 | |||
Property | 260.1 | 267.6 | |||
Goodwill | 561.2 | 569 | |||
Operating lease assets | 30.1 | 30.1 | |||
Other long-term assets | 7.1 | 1.3 | |||
Short term debt | (0.4) | (0.4) | |||
Accounts payable | (91.5) | (92.7) | |||
Current operating lease obligations | (2.8) | (2.8) | |||
Accrued expenses and other current liabilities | (85.7) | (81.2) | |||
Long-term debt | (6.7) | (6.7) | |||
Non-current operating lease obligations | (25.8) | (25.8) | |||
Deferred tax liabilities | (34.8) | (60.7) | |||
Pension and other post-retirement benefits | (53.8) | (53.8) | |||
Other long-term liabilities | (12.1) | (5.4) | |||
Non-controlling interests | (15.2) | (12.8) | |||
Total purchase price consideration | 1,525.3 | $ 1,525.3 | |||
Measurement Period Adjustments | |||||
Inventory | 0.2 | ||||
Other current assets | 6.3 | ||||
Property | (7.5) | ||||
Goodwill | (7.8) | ||||
Other long-term assets | 5.8 | ||||
Accounts payable | 1.2 | ||||
Accrued expenses and other current liabilities | (4.5) | ||||
Deferred tax liabilities | 25.9 | ||||
Other long-term liabilities | (6.7) | ||||
Non-controlling Interests | (2.4) | ||||
Clariant Color Acquisition | Customer-Related Intangible Assets | |||||
Preliminary Allocation/Final Allocation | |||||
Intangible assets: | 201.2 | 221.9 | |||
Measurement Period Adjustments | |||||
Intangibles assets | (20.7) | ||||
Clariant Color Acquisition | Trademarks and Trade Names | |||||
Preliminary Allocation/Final Allocation | |||||
Intangible assets: | 34.8 | 32 | |||
Measurement Period Adjustments | |||||
Intangibles assets | 2.8 | ||||
Clariant Color Acquisition | Patents, Technology and Other Intangible Asset | |||||
Preliminary Allocation/Final Allocation | |||||
Intangible assets: | 281.3 | $ 273.9 | |||
Measurement Period Adjustments | |||||
Intangibles assets | $ 7.4 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Pro Forma Information (Details) - Clariant Color Acquisition - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Sales | $ 3,782.5 | $ 3,981.3 |
Income from continuing operations before income taxes | $ 204.2 | $ 98.9 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions | Oct. 25, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on sale of business, net of tax | $ 0 | $ 0 | $ 457.7 | |
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 | $ 782.1 | |||
Gain (loss) on sale of business, net of tax | $ 457.7 | |||
Distribution agreement, term | 4 years | |||
Contract manufacturing and supply agreement, term | 2 years | |||
Net cash outflow related to the agreements | $ (114.1) | $ (65) |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedule of Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Information | ||
Depreciation and amortization | $ 0 | $ 9.4 |
Capital Expenditures | 0 | 14.1 |
Performance Products And Solutions | Discontinued Operations, Disposed of by Sale | ||
Income Statement Information | ||
Sales | 0 | 488.9 |
Cost of sales | 0 | (390.1) |
Selling and administrative expense | (0.9) | (28) |
Gain on sale | 0 | 591.2 |
Pretax (loss) income of discontinued operations | (0.9) | 662 |
Income tax expense | 0.5 | (148.9) |
(Loss) income from discontinued operations, net of taxes | $ (0.4) | $ 513.1 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill by Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 1,308.1 | $ 685.7 |
Acquisition of businesses | 14.1 | 569 |
Currency translation | (35.8) | 53.4 |
Balance, end of period | 1,286.4 | 1,308.1 |
Specialty Engineered Materials | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 237.8 | 236.3 |
Acquisition of businesses | 0 | 0 |
Currency translation | (1.5) | 1.5 |
Balance, end of period | 236.3 | 237.8 |
Color, Additives and Inks | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | 1,068.7 | 447.8 |
Acquisition of businesses | 14.1 | 569 |
Currency translation | (34.3) | 51.9 |
Balance, end of period | 1,048.5 | 1,068.7 |
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, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (269.7) | $ (212.2) |
Currency Translation | 7.8 | 52.6 |
Indefinite-lived Intangible Assets [Line Items] | ||
Acquisition Cost | 1,187.1 | 1,168.1 |
Net | 925.2 | 1,008.5 |
Indefinite-lived trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 113.2 | 109.5 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 507.2 | 508.7 |
Accumulated Amortization | (135.4) | (109.8) |
Currency Translation | 6 | 23.8 |
Net | 377.8 | 422.7 |
Patents, technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 566.7 | 549.9 |
Accumulated Amortization | (134.3) | (102.4) |
Currency Translation | 1.8 | 28.8 |
Net | $ 434.2 | $ 476.3 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other finite-lived intangible assets | $ 57.5 | $ 43.5 | $ 29.5 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization (Details) $ in Millions | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 55.5 |
2023 | 53.1 |
2024 | 52.6 |
2025 | 52.6 |
2026 | $ 51.9 |
EMPLOYEE SEPARATION AND RESTR_3
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS - Narrative (Details) - Clariant Color Acquisition Integration, Restructuring Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Expected cost of restructuring | $ 75 | |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Fixed asset disposals | 3.2 | $ 0.4 |
Severance expense | 7 | 0.2 |
Other restructuring costs | 1 | |
Selling and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance expense | 0.1 | 6.4 |
Other restructuring costs | $ 0.4 | $ 0.2 |
EMPLOYEE SEPARATION AND RESTR_4
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS - Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 14.7 | $ 19.6 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 14.5 | 4.2 |
Selling and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.2 | $ 15.4 |
FINANCING ARRANGEMENTS - Compon
FINANCING ARRANGEMENTS - Components of Long-Term Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | May 13, 2020 | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 1,873,300,000 | $ 1,891,900,000 | |
Unamortized discount and debt issuance cost | 14,400,000 | 19,300,000 | |
Total debt | 1,858,900,000 | 1,872,600,000 | |
Less short-term and current portion of long-term debt, Principal Amount | 8,600,000 | 18,600,000 | |
Less short-term and current portion of long-term debt, Unamortized discount and debt issuance costs | 0 | 0 | |
Less short-term and current portion of long-term debt, Net Debt | 8,600,000 | 18,600,000 | |
Total long-term debt, net of current portion, Principal Amount | 1,864,700,000 | 1,873,300,000 | |
Total long-term debt, net of current portion, Unamortized discount and debt issuance cost | 14,400,000 | 19,300,000 | |
Total long-term debt, net of current portion | 1,850,300,000 | $ 1,854,000,000 | |
5.25% senior notes due 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.25% | ||
Principal Amount | 600,000,000 | $ 600,000,000 | |
Unamortized discount and debt issuance cost | 1,400,000 | 2,500,000 | |
Total debt | $ 598,600,000 | $ 597,500,000 | |
Weighted average interest rate | 5.25% | 5.25% | |
5.75% senior notes due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.75% | 5.75% | |
Principal Amount | $ 650,000,000 | $ 650,000,000 | |
Unamortized discount and debt issuance cost | 6,800,000 | 8,800,000 | |
Total debt | $ 643,200,000 | $ 641,200,000 | |
Weighted average interest rate | 5.75% | 5.75% | |
Senior secured term loan due 2026 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 611,500,000 | $ 618,000,000 | |
Unamortized discount and debt issuance cost | 6,200,000 | 8,000,000 | |
Total debt | $ 605,300,000 | $ 610,000,000 | |
Weighted average interest rate | 1.85% | 2.36% | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 11,800,000 | $ 23,900,000 | |
Unamortized discount and debt issuance cost | 0 | 0 | |
Total debt | 11,800,000 | 23,900,000 | |
Revolving Credit Facility | Senior secured revolving credit facility due 2026 | |||
Debt Instrument [Line Items] | |||
Principal Amount | 0 | 0 | |
Unamortized discount and debt issuance cost | 0 | 0 | |
Total debt | $ 0 | $ 0 | |
Weighted average interest rate | 0.00% | 0.00% |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) - USD ($) | May 13, 2020 | Jun. 28, 2019 | Apr. 11, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 26, 2021 | Aug. 03, 2016 | Feb. 28, 2013 |
Debt Instrument [Line Items] | |||||||||
Borrowings | $ 1,858,900,000 | $ 1,872,600,000 | |||||||
Repayment of long-term debt | 6,500,000 | ||||||||
Fair value of debt instruments | 1,917,700,000 | 1,955,900,000 | |||||||
Interest income | 11,000,000 | 17,500,000 | $ 19,900,000 | ||||||
Total interest paid on debt | 72,600,000 | 61,100,000 | $ 67,000,000 | ||||||
Senior Secured Revolving Credit Facility due 2022 | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings | 0 | 0 | |||||||
Senior Secured Revolving Credit Facility due 2022 | European Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||
Remaining availability on credit line | 485,500,000 | 278,200,000 | |||||||
5.25% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal | $ 600,000,000 | ||||||||
Stated interest rate | 5.25% | ||||||||
5.75% senior notes due 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings | $ 643,200,000 | 641,200,000 | |||||||
Aggregate principal | $ 650,000,000 | ||||||||
Stated interest rate | 5.75% | 5.75% | |||||||
Proceeds from Notes offering, net of issuance costs | $ 640,500,000 | ||||||||
Commitment fees | $ 10,100,000 | ||||||||
Senior Secured Term Loan due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual principal payment percentage | 1.00% | ||||||||
Senior Secured Term Loan due 2026 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.75% | ||||||||
Borrowings | $ 605,300,000 | 610,000,000 | |||||||
Decrease in basis spread on variable rate | 0.25% | ||||||||
Saudi Hollandi Bank, Credit Facility | Foreign Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining availability on credit line | 1,700,000 | ||||||||
Fixed rate | 0.85% | ||||||||
Amount outstanding | $ 12,000,000 | $ 10,300,000 | |||||||
Interest rate at period end | 1.85% | ||||||||
Credit Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||
Line of credit facility, accordion feature, increase limit | $ 150,000,000 | ||||||||
LIBOR | Senior Secured Revolving Credit Facility due 2022 | European Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.00% | ||||||||
Prime Rate | Senior Secured Term Loan due 2026 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 0.75% | ||||||||
Floor | Senior Secured Term Loan due 2026 | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate floor | 1.75% |
FINANCING ARRANGEMENTS - Long-T
FINANCING ARRANGEMENTS - Long-Term Debt Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 8.6 | |
2023 | 608.6 | |
2024 | 8.6 | |
2025 | 658.7 | |
2026 | 6.9 | |
Thereafter | 581.9 | |
Principal Amount | $ 1,873.3 | $ 1,891.9 |
LEASING ARRANGEMENTS - Lease Co
LEASING ARRANGEMENTS - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Total Operating lease cost | $ 34.4 | $ 33.3 |
Cost of Sales | ||
Lessee, Lease, Description [Line Items] | ||
Total Operating lease cost | 22.3 | 20 |
Selling and administrative expense | ||
Lessee, Lease, Description [Line Items] | ||
Total Operating lease cost | $ 12.1 | $ 13.3 |
LEASING ARRANGEMENTS - Narrativ
LEASING ARRANGEMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Weighted average remaining lease term | 4 years 8 months 12 days | 5 years 4 months 24 days |
Non-cash net increase in operating lease liability | $ 18.3 | $ 10.5 |
Weighted average discount rate | 3.70% | 3.90% |
LEASING ARRANGEMENTS - Schedule
LEASING ARRANGEMENTS - Schedule of Maturity of Lease Liabilities Current Year (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 26.3 | $ 28 |
2023 | 19.8 | 21.4 |
2024 | 12.6 | 15 |
2025 | 7.7 | 8.7 |
2026 | 4.6 | 4.7 |
Thereafter | 10.3 | 13.3 |
Total | 81.3 | 91.1 |
Less amount of lease payment representing interest | (7) | (10) |
Total present value of lease payments | $ 74.3 | $ 81.1 |
LEASING ARRANGEMENTS - Schedu_2
LEASING ARRANGEMENTS - Schedule of Maturity of Lease Liabilities Prior Year (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 26.3 | $ 28 |
2022 | 19.8 | 21.4 |
2023 | 12.6 | 15 |
2024 | 7.7 | 8.7 |
2025 | 4.6 | 4.7 |
Thereafter | 10.3 | 13.3 |
Total | 81.3 | 91.1 |
Less amount of lease payment representing interest | (7) | (10) |
Total present value of lease payments | $ 74.3 | $ 81.1 |
INVENTORIES, NET- Components of
INVENTORIES, NET- Components of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 244.4 | $ 171.7 |
Work in process | 21.2 | 16.6 |
Raw materials and supplies | 195.5 | 139.2 |
Inventories, net | $ 461.1 | $ 327.5 |
PROPERTY, NET - Components of P
PROPERTY, NET - Components of Property, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 1,414.4 | $ 1,377.4 |
Less accumulated depreciation | (738.3) | (682.5) |
Property, net | 676.1 | 694.9 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 91.5 | 95.7 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 350.6 | 333.5 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 972.3 | $ 948.2 |
PROPERTY, NET - Narrative (Deta
PROPERTY, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 84.9 | $ 68.2 | $ 48.6 |
OTHER BALANCE SHEET LIABILITI_3
OTHER BALANCE SHEET LIABILITIES - Components of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued expenses and other current liabilities | ||
Total | $ 353.9 | $ 285.6 |
Other non-current liabilities | ||
Pension and other post-employment benefits | 100 | 115 |
Total | 165.1 | 192.8 |
Accrued expenses and other current liabilities | ||
Accrued expenses and other current liabilities | ||
Employment costs | 187.9 | 142.7 |
Environmental liabilities | 25.8 | 20.3 |
Accrued taxes | 56.8 | 49 |
Pension and other post-employment benefits | 6.9 | 6.7 |
Accrued interest | 14.1 | 14.1 |
Dividends payable | 21.7 | 19.4 |
Unrecognized tax benefits | 0.7 | 3.2 |
Derivatives | 3.1 | 0 |
Other | 36.9 | 30.2 |
Total | 353.9 | 285.6 |
Other non-current liabilities | ||
Other non-current liabilities | ||
Employment costs | 7.6 | 6.1 |
Environmental liabilities | 98.7 | 99.4 |
Accrued taxes | 0 | 0 |
Pension and other post-employment benefits | 0 | 0 |
Accrued interest | 0 | 0 |
Dividends payable | 0 | 0 |
Unrecognized tax benefits | 20 | 7.3 |
Derivatives | 0 | 48.4 |
Other | $ 38.8 | $ 31.6 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning of year | $ 602 | $ 478 | |
Service Cost | 4.7 | 3 | $ 0.5 |
Interest Cost | 14.2 | 15.3 | 18.2 |
Actuarial (loss) gain | (12.1) | 24.5 | |
Benefits paid | (53.9) | (40.9) | |
Effect of settlement and/or curtailment | (1.5) | (23) | |
Acquired benefit obligation | 0 | 137.3 | |
Other | (4.1) | 7.8 | |
Projected benefit obligation - end of year | 549.3 | 602 | 478 |
Projected salary increases | (7.7) | (8.8) | |
Accumulated benefit obligation | 541.6 | 593.2 | |
Change in plan assets: | |||
Plan assets - beginning of year | 573.6 | 469.1 | |
Actual return on plan assets | 2.9 | 60.5 | |
Company contributions | 8.6 | 5.4 | |
Benefits paid | (53.9) | (40.9) | |
Effect of settlement and curtailment | (0.9) | (16.5) | |
Acquired plan assets | 0 | 92.4 | |
Other | (1) | 3.6 | |
Plan assets - end of year | 529.3 | 573.6 | 469.1 |
Unfunded status at end of year | (20) | (28.4) | |
Health Care Benefits | |||
Change in benefit obligation: | |||
Projected benefit obligation - beginning of year | 18.3 | 7.1 | |
Service Cost | 0.1 | 0.1 | 0 |
Interest Cost | 0.5 | 0.4 | 0.2 |
Actuarial (loss) gain | (1.6) | 0 | |
Benefits paid | (1.2) | (0.7) | |
Effect of settlement and/or curtailment | (0.3) | 0 | |
Acquired benefit obligation | 0 | 11.3 | |
Other | 0 | 0.1 | |
Projected benefit obligation - end of year | 15.8 | 18.3 | 7.1 |
Projected salary increases | 0 | 0 | |
Accumulated benefit obligation | 15.8 | 18.3 | |
Change in plan assets: | |||
Plan assets - beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 1.2 | 0.7 | |
Benefits paid | (1.2) | (0.7) | |
Effect of settlement and curtailment | 0 | 0 | |
Acquired plan assets | 0 | 0 | |
Other | 0 | 0 | |
Plan assets - end of year | 0 | 0 | $ 0 |
Unfunded status at end of year | $ (15.8) | $ (18.3) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts Included in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and other post-employment benefits | $ 100 | $ 115 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 71.1 | 75 |
Accrued expenses and other liabilities | 5.7 | 5.4 |
Pension and other post-employment benefits | 85.4 | 98 |
Health Care Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0 | 0 |
Accrued expenses and other liabilities | 1.2 | 1.3 |
Pension and other post-employment benefits | $ 14.6 | $ 17 |
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, 2021 | Dec. 31, 2020 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 116.6 | $ 149.5 |
Fair value of plan assets | 26.5 | 46.7 |
Accumulated benefit obligation | 108.3 | 122.8 |
Fair value of plan assets | 25.4 | 28.2 |
Health Care Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 15.8 | 18.3 |
Fair value of plan assets | 0 | 0 |
Accumulated benefit obligation | 15.8 | 18.3 |
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted Average Assumptions Used to Determine Benefit Obligation (Details) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discount rate | ||||
Discount rate | 2.69% | 2.47% | 3.19% | 4.11% |
Pension Benefits | ||||
Discount rate | ||||
Discount rate | 2.69% | 2.47% | ||
Health Care Benefits | ||||
Discount rate | ||||
Discount rate | 2.85% | 2.66% | ||
Assumed health care cost trend rates at December 31: | ||||
Health care cost trend rate assumed for next year | 6.44% | 5.99% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.08% | 4.04% | ||
Year that the rate reaches the ultimate trend rate | 2065 | 2065 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Period Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service Cost | $ 4.7 | $ 3 | $ 0.5 | |
Interest Cost | 14.2 | 15.3 | 18.2 | |
Expected return on plan assets | (26.9) | (25.3) | (23.7) | |
Mark-to-market actuarial net losses (gains) | 11.9 | (10.8) | (9.7) | |
Curtailment | $ (5.3) | (0.6) | (6.4) | 0 |
Net periodic cost (benefit) | 3.3 | (24.2) | (14.7) | |
Health Care Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service Cost | 0.1 | 0.1 | 0 | |
Interest Cost | 0.5 | 0.4 | 0.2 | |
Expected return on plan assets | 0 | 0 | 0 | |
Mark-to-market actuarial net losses (gains) | (1.7) | 0 | 0.1 | |
Curtailment | (0.2) | 0 | 0 | |
Net periodic cost (benefit) | $ (1.3) | $ 0.5 | $ 0.3 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Mark-to-market loss (gain) net on pension plans | $ 9.4 | $ 17.2 | $ 9.6 | |||
Discount rate | 2.47% | 2.69% | 2.47% | 3.19% | 4.11% | |
Settlement | $ 1.1 | |||||
Fixed income securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Plan investment allocation, percentage | 0.83% | |||||
Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Plan investment allocation, percentage | 17.00% | |||||
Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate | 2.47% | 2.69% | 2.47% | |||
Curtailment | $ 5.3 | $ 0.6 | $ 6.4 | $ 0 | ||
Employer contributions to defined benefit plans | $ 8.2 | |||||
Health Care Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rate | 2.66% | 2.85% | 2.66% | |||
Curtailment | $ 0.2 | $ 0 | $ 0 | |||
Employer contributions to defined benefit plans | $ 1.2 |
EMPLOYEE BENEFIT PLANS - Weig_2
EMPLOYEE BENEFIT PLANS - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.47% | 3.19% | 4.11% |
Expected long-term return on plan assets | 4.86% | 5.05% | 5.68% |
Health Care Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.66% | 3.06% | 3.98% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Assumed health care cost trend rates at December 31: | |||
Assumed health care cost trend rates at January 1: | 6.24% | 6.16% | 6.09% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.04% | 4.14% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2066 | 2054 | 2027 |
EMPLOYEE BENEFIT PLANS - Fair V
EMPLOYEE BENEFIT PLANS - Fair Values of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Measured at Net Asset Value Per Share | Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 344.2 | $ 383.8 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 529.3 | 573.6 | $ 469.1 |
Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 103.8 | 86.6 | |
Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6.5 | 8.2 | |
Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 68.3 | 53.4 | |
Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 10.6 | 4.5 | |
Pension Benefits | Fair Value, Inputs, Level 1, 2 and 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 18.4 | 20.5 | |
Pension Benefits | Quoted Prices in Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 85.4 | 66.1 | |
Pension Benefits | Quoted Prices in Active Markets (Level 1) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 6.5 | 8.2 | |
Pension Benefits | Quoted Prices in Active Markets (Level 1) | Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 68.3 | 53.4 | |
Pension Benefits | Quoted Prices in Active Markets (Level 1) | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 10.6 | 4.5 | |
Pension Benefits | Quoted Prices in Active Markets (Level 1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.1 | 3.1 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3.1 | 3.1 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 15.3 | 17.4 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Global Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 15.3 | 17.4 | |
Pension Benefits | Fair Value Measured at Net Asset Value Per Share | Total common collective funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 425.5 | 487 | |
Pension Benefits | Fair Value Measured at Net Asset Value Per Share | United States equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32.7 | 35.2 | |
Pension Benefits | Fair Value Measured at Net Asset Value Per Share | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 32.1 | 34 | |
Pension Benefits | Fair Value Measured at Net Asset Value Per Share | Global equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 16.5 | 16.3 | |
Pension Benefits | Fair Value Measured at Net Asset Value Per Share | Balanced | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 0 | $ 17.7 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 43.6 |
2023 | 41.8 |
2024 | 39.9 |
2025 | 39.5 |
2026 | 38.8 |
2027 through 2031 | 179.1 |
Health Care Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 1.2 |
2023 | 1.3 |
2024 | 1.3 |
2025 | 1.3 |
2026 | 1.2 |
2027 through 2031 | $ 5.2 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Retirement savings match | $ 10.7 | $ 9.9 | $ 10.4 |
Retirement savings contribution | 0 | 0.6 | 0 |
Total contribution | $ 10.7 | $ 10.5 | $ 10.4 |
COMMITMENTS AND CONTINGENCIES-
COMMITMENTS AND CONTINGENCIES- Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 29, 2020company | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||||
Number of companies negotiating consent decree | company | 3 | ||||
Accrued probable future environmental expenditures | $ 124.5 | $ 119.7 | $ 112 | $ 111.9 | |
Insurance recoveries | 4.5 | $ 8.7 | $ 4.5 | ||
Calvert City | |||||
Loss Contingencies [Line Items] | |||||
Accrued probable future environmental expenditures | $ 113.2 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule Of Changes In Environmental Accrued Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at beginning of the year | $ 119.7 | $ 112 | $ 111.9 |
Environmental expenses | 23 | 20.4 | 10.2 |
Net cash payments | (18.2) | (12.7) | (10.3) |
Currency translation and other | 0 | 0 | 0.2 |
Balance at the end of year | $ 124.5 | $ 119.7 | $ 112 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 74.2 | $ 19.6 | $ 41.2 |
International | 230.4 | 119.4 | 68.2 |
Income from continuing operations before income taxes | $ 304.6 | $ 139 | $ 109.4 |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense (benefit): | |||
Domestic | $ 49 | $ (25.8) | $ 24.8 |
International | 52.3 | 32.7 | 21.9 |
Total current income tax expense | 101.3 | 6.9 | 46.7 |
Deferred income tax (benefit) expense: | |||
Domestic | (31.5) | 17.2 | (12.5) |
International | 4.2 | (18.9) | (0.5) |
Total deferred income tax benefit | (27.3) | (1.7) | (13) |
Total income tax expense | $ 74 | $ 5.2 | $ 33.7 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Total international tax rate differential | (0.20%) | (2.70%) | (8.90%) |
(Benefit) Tax on GILTI and FDII | (1.70%) | 3.10% | (0.10%) |
International tax on certain current and prior year earnings | 1.40% | 2.00% | 1.60% |
Net impact of non-deductible acquisition earnouts and transaction cost | 0.10% | 1.80% | 2.80% |
Tax on one-time gain from sale of other assets | 0.00% | 0.00% | 6.00% |
Research and development credit | (0.80%) | (2.10%) | (2.80%) |
Carryback of capital losses | (0.40%) | (13.10%) | 0.00% |
State and local tax, net | 1.40% | (3.40%) | 4.20% |
International permanent items | 0.20% | (5.20%) | 7.50% |
Net impact of uncertain tax positions | 0.70% | 1.00% | (2.40%) |
Changes in valuation allowances | 1.70% | 0.50% | 1.70% |
Other | 0.90% | 0.80% | 0.20% |
Effective income tax rate | 24.30% | 3.70% | 30.80% |
Asia | |||
Income Tax Contingency [Line Items] | |||
Total international tax rate differential | 0.30% | 0.50% | 0.70% |
Europe | |||
Income Tax Contingency [Line Items] | |||
Total international tax rate differential | (1.20%) | (4.40%) | (10.30%) |
North and South America | |||
Income Tax Contingency [Line Items] | |||
Total international tax rate differential | 0.70% | 1.20% | 0.70% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||||
Tax benefit from GILTI and FDII, decrease | $ 5,500,000 | |||
Tax benefit from GILTI and FDII decrease, percent | (1.70%) | 3.10% | (0.10%) | |
State and local taxes, net benefit | $ 4,200,000 | $ 4,700,000 | ||
State and local tax, percent | 1.40% | (3.40%) | 4.20% | |
Foreign permanent items, favorable, amount | $ 600,000 | $ 7,200,000 | $ 2,000,000 | |
Foreign permanent items, favorable, percent | 0.20% | 5.20% | 1.90% | |
One-time U.S. tax benefit from internal reorganization of international subsidiaries | $ 18,200,000 | |||
One-time U.S. tax benefit from internal reorganization of international subsidiaries, percent | (13.10%) | |||
Foreign permanent items, unfavorable, amount | $ 10,300,000 | |||
Foreign permanent items, unfavorable | 9.40% | |||
Gross state net operating loss carryforwards | $ 17,800,000 | |||
Foreign subsidiaries gross net operating loss carryforwards | 195,400,000 | |||
Increase (decrease) in valuation allowance | (1,100,000) | |||
Provision for income taxes on undistributed earnings of non-United States subsidiaries | $ 0 | |||
Undistributed earnings of non-United States subsidiaries | 489,000,000 | |||
Liability for repatriation of foreign earnings | 10,100,000 | 9,200,000 | ||
Income tax payments | 102,100,000 | $ 188,800,000 | $ 45,700,000 | |
Income tax refunds | 12,600,000 | $ 9,900,000 | $ 20,000,000 | |
Income tax penalties and interest accrued | 1,200,000 | 1,100,000 | ||
Reduction in unrecognized tax benefits on the outcome of tax examinations and the expiration of statutes of limitations | 700,000 | |||
Income tax expense if unrecognized tax benefits were recognized | $ 10,900,000 | |||
Domestic and Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Increase (decrease) in valuation allowance | $ (11,900,000) |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Liabilities and Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Employment costs | $ 34.2 | $ 24.9 |
Environmental reserves | 30.9 | 29.7 |
Net operating loss carryforwards | 52.8 | 55.6 |
Operating leases | 16.1 | 16.6 |
Research and development | 22 | 7.6 |
Other, net | 45.7 | 36.3 |
Gross deferred tax assets | 201.7 | 170.7 |
Valuation allowances | (19.6) | (20.7) |
Total deferred tax assets, net of valuation allowances | 182.1 | 150 |
Deferred tax liabilities: | ||
Property, plant and equipment | (47.4) | (47.6) |
Goodwill and intangibles | (130.6) | (144.9) |
Operating leases | (16.2) | (17) |
Other, net | (15) | (2.4) |
Total deferred tax liabilities | (209.2) | (211.9) |
Net deferred tax (liabilities) assets | (27.1) | (61.9) |
Consolidated Balance Sheets: | ||
Non-current deferred income tax liabilities | (100.6) | (140) |
Income Tax Contingency [Line Items] | ||
Deferred income taxes | 100.6 | 140 |
Deferred Tax Liabilities Noncurrent | ||
Consolidated Balance Sheets: | ||
Non-current deferred income tax assets | 73.5 | 78.1 |
Non-current deferred income tax liabilities | (100.6) | (140) |
Income Tax Contingency [Line Items] | ||
Non-current deferred income tax assets | 73.5 | 78.1 |
Deferred income taxes | $ 100.6 | $ 140 |
INCOME TAXES - Changes in Unrec
INCOME TAXES - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1, | $ 9.5 | $ 11.2 | $ 16.4 |
Increases as a result of positions taken during current year | 6.2 | 0.6 | 1.1 |
Increases as a result of positions taken for prior years | 0.2 | 0.6 | 0.4 |
Balance related to acquired businesses | 5.4 | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 | (0.7) |
Decreases as a result of lapse of statute of limitations | (1.5) | (0.5) | (5) |
Decreases relating to settlements with taxing authorities | (0.1) | (2.8) | 0 |
Other, net | 0.4 | 0.4 | (1) |
Balance as of December 31, | $ 20.1 | $ 9.5 | $ 11.2 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2020 | |
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) | 500,000 | 500,000 | 600,000 | |
Vesting period | 3 years | |||
SARs granted appreciation cap percentage | 200.00% | |||
Forfeitures percentage | 3.00% | |||
Intrinsic value of SARS exercised | $ 22.9 | $ 1.8 | $ 0.4 | |
Unrecognized compensation cost | $ 3.3 | |||
Weighted average award vesting period | 23 months | |||
Nonvested, balance (in shares) | 1,900,000 | 2,600,000 | ||
Weighted-average grant date fair value (in usd per share) | $ 35.64 | $ 32.43 | ||
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 | $ 7.4 | |||
RSUs granted (in shares) | 200,000 | 300,000 | 200,000 | |
RSUs vested (in shares) | 200,000 | |||
Nonvested, balance (in shares) | 600,000 | |||
Weighted-average grant date fair value (in usd per share) | $ 33.23 | |||
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- Summa
SHARE-BASED COMPENSATION- Summary of Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 11.2 | $ 11.3 | $ 11.6 |
Stock appreciation rights | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | 5.2 | 4.4 | 4.8 |
Performance shares | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | 0.2 | 0.2 | 0.3 |
Restricted stock units | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 5.8 | $ 6.7 | $ 6.5 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Assumptions Related to Grants (Details) - Stock appreciation rights - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Expected volatility | 34.00% | 33.00% | 40.00% |
Expected dividends | 2.01% | 2.57% | 2.47% |
Expected term | 6 years 10 months 24 days | 6 years 10 months 24 days | 6 years 7 months 6 days |
Risk-free rate | 1.19% | 1.56% | 2.78% |
Value of SARs granted (in dollars per share) | $ 11.72 | $ 8.11 | $ 10.13 |
SHARE-BASED COMPENSATION - Su_2
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Shares outstanding, beginning balance (in shares) | 2.6 | ||
Granted (in shares) | 0.5 | 0.5 | 0.6 |
Exercised (in shares) | (1.2) | ||
Forfeited or expired (in shares) | 0 | ||
Shares outstanding, ending balance (in shares) | 1.9 | 2.6 | |
Outstanding, vested and exercisable (in shares) | 0.9 | ||
Weighted-Average Exercise Price per Share | |||
Outstanding beginning balance (in usd per share) | $ 32.43 | ||
Granted (in usd per share) | 42.27 | ||
Exercised (in usd per share) | 30 | ||
Forfeited or expired (in usd per share) | 30.43 | ||
Outstanding, ending balance (in usd per share) | 35.64 | $ 32.43 | |
Vested and exercisable (in usd per share) | $ 33.86 | ||
Weighted-Average Remaining Contractual Term And Aggregate Intrinsic Value | |||
Outstanding, Weighted Average Remaining Contractual Term | 7 years 1 month 6 days | 6 years 4 months 24 days | |
Vested and exercisable Weighted Average Remaining Contractual Term | 5 years 4 months 24 days | ||
Aggregate Intrinsic value | $ 39.1 | $ 20.7 | |
Vested and exercisable, Aggregate Intrinsic Value | $ 19.6 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) grade_resin in Thousands | 12 Months Ended |
Dec. 31, 2021grade_resinsupplierinjectionMoldersAndExtruderssegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Number of grades of resins sold by the distribution business (more than) | grade_resin | 4 |
Number of products sold | injectionMoldersAndExtruders | 6,500 |
Number of suppliers represented by the distribution business (more than) | supplier | 25 |
SEGMENT INFORMATION- Schedule o
SEGMENT INFORMATION- Schedule of Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 4,818.8 | $ 3,242.1 | $ 2,862.7 |
Operating Income | 381.2 | 189.3 | 156.8 |
Depreciation and Amortization | 144.2 | 111.8 | 87.5 |
Capital Expenditures | 100.6 | 63.7 | 81.7 |
Color, Additives and Inks | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,392.3 | 1,497 | 998.2 |
Specialty Engineered Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 833.2 | 644.1 | 689.6 |
Distribution | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,587.3 | 1,087.4 | 1,172.9 |
Operating Segments | Color, Additives and Inks | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,401.6 | 1,502.9 | 1,003.8 |
Operating Income | 303.1 | 180.8 | 147.4 |
Depreciation and Amortization | 105.7 | 75.1 | 42.7 |
Capital Expenditures | 40.5 | 30.5 | 21.5 |
Operating Segments | Specialty Engineered Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 918.9 | 708.8 | 745.7 |
Operating Income | 132 | 94.4 | 83.7 |
Depreciation and Amortization | 31.7 | 30 | 29.5 |
Capital Expenditures | 26.4 | 14.2 | 23.3 |
Operating Segments | Distribution | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,630.9 | 1,110.3 | 1,192.2 |
Operating Income | 93.2 | 69.5 | 75.4 |
Depreciation and Amortization | 0.8 | 0.7 | 0.5 |
Capital Expenditures | 0.8 | 1.4 | 1.6 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales | (138.6) | (93.5) | (81) |
Intersegment Eliminations | Color, Additives and Inks | |||
Segment Reporting Information [Line Items] | |||
Sales | 9.3 | 5.9 | 5.6 |
Intersegment Eliminations | Specialty Engineered Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 85.7 | 64.7 | 56.1 |
Intersegment Eliminations | Distribution | |||
Segment Reporting Information [Line Items] | |||
Sales | 43.6 | 22.9 | 19.3 |
Corporate and eliminations excluding intersegment eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales | 6 | 13.6 | 2 |
Corporate and eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales | (132.6) | (79.9) | (79) |
Operating Income | (147.1) | (155.4) | (149.7) |
Depreciation and Amortization | 7.7 | 9.2 | 5.4 |
Capital Expenditures | 32.9 | 17.6 | 21.2 |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and Amortization | 145.9 | 115 | 78.1 |
Capital Expenditures | $ 100.6 | $ 63.7 | $ 67.6 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Revenue and Long-Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 4,818.8 | $ 3,242.1 | $ 2,862.7 |
Total assets | 4,997.2 | 4,870.5 | |
Long lived assets | 676.1 | 694.9 | |
Corporate and eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales | (132.6) | (79.9) | (79) |
Total assets | 876.1 | 878.8 | |
Color, Additives and Inks | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,392.3 | 1,497 | 998.2 |
Color, Additives and Inks | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,401.6 | 1,502.9 | 1,003.8 |
Total assets | 2,965.2 | 3,018.7 | |
Specialty Engineered Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 833.2 | 644.1 | 689.6 |
Specialty Engineered Materials | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 918.9 | 708.8 | 745.7 |
Total assets | 771 | 728.1 | |
Distribution | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,587.3 | 1,087.4 | 1,172.9 |
Distribution | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,630.9 | 1,110.3 | 1,192.2 |
Total assets | 384.9 | 244.9 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,281.2 | 1,619.7 | 1,560.4 |
Long lived assets | 276.2 | 261.8 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Sales | 151.8 | 107.6 | 140.6 |
Long lived assets | 1.3 | 1.4 | |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Sales | 348.2 | 236.2 | 261.2 |
Long lived assets | 8.3 | 8.9 | |
South America | |||
Segment Reporting Information [Line Items] | |||
Sales | 85.8 | 51.4 | 27.8 |
Long lived assets | 19.6 | 20.1 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,195.6 | 729.8 | 556.2 |
Long lived assets | 172.4 | 224.5 | |
Asia | |||
Segment Reporting Information [Line Items] | |||
Sales | 756.2 | 497.4 | $ 316.5 |
Long lived assets | $ 198.3 | $ 178.2 |
DERIVATIVES AND HEDGING - Narra
DERIVATIVES AND HEDGING - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($)swap | Sep. 30, 2020EUR (€)swap | Dec. 31, 2018USD ($)swap | Aug. 31, 2018USD ($)swap | |
Derivative [Line Items] | |||||||
Gain (loss) recognized in AOCI | $ 3.2 | $ (1.6) | $ (2.5) | ||||
Cross Currency Swaps | Net Investment Hedging | |||||||
Derivative [Line Items] | |||||||
Number of cross currency swaps | swap | 3 | 5 | |||||
Notional amount | $ 338.7 | € 677 | $ 250 | ||||
Number of derivatives contracts extended | swap | 5 | ||||||
Gain (loss) in recognized within translation adjustments in AOCI | 52.5 | (41.7) | |||||
Cross Currency Swaps | Net Investment Hedging | Interest Expense, Net | |||||||
Derivative [Line Items] | |||||||
Number of cross currency swaps | swap | 6 | ||||||
Conversion gains | 16.4 | 10.4 | |||||
Interest Rate Swap | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 150 | ||||||
Number of interest rate swaps | swap | 2 | ||||||
Floating rate debt | $ 150 | ||||||
Floating rate | 2.732% | ||||||
Gain (loss) recognized in AOCI | 3.2 | (1.6) | |||||
Interest Rate Swap | Cash Flow Hedging | Interest Expense, Net | |||||||
Derivative [Line Items] | |||||||
Expense recognized | $ 4 | $ 3.2 |
DERIVATIVES AND HEDGING - Fair
DERIVATIVES AND HEDGING - Fair Value of Derivatives (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Net Investment Hedging | Cross Currency Swaps | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 31.7 | $ 0 |
Net Investment Hedging | Cross Currency Swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 0 | 41.1 |
Fair Value Hedging | Interest Rate Swap | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | 0 | 7.3 |
Fair Value Hedging | Interest Rate Swap | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 3.1 | $ 0 |