Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-31921 | |
Entity Registrant Name | Compass Minerals International, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3972986 | |
Entity Address, Address Line One | 9900 West 109th Street | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Overland Park | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66210 | |
City Area Code | 913 | |
Local Phone Number | 344-9200 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | CMP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,904,602 | |
Entity Central Index Key | 0001227654 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 109.8 | $ 34.7 |
Receivables, less allowance for doubtful accounts of $9.5 in 2020 and $10.7 in 2019 | 225 | 342.4 |
Inventories | 254.2 | 311.5 |
Other | 37.2 | 96.4 |
Total current assets | 626.2 | 785 |
Property, plant and equipment, net | 953.8 | 1,030.8 |
Intangible assets, net | 88.6 | 103 |
Goodwill | 274.7 | 343 |
Investment in equity investee | 23.1 | 24.9 |
Other | 144.4 | 156.5 |
Total assets | 2,110.8 | 2,443.2 |
Current liabilities: | ||
Current portion of long-term debt | 40.1 | 52.1 |
Accounts payable | 112.8 | 126.2 |
Accrued salaries and wages | 24.7 | 34.4 |
Income taxes payable | 2.7 | 10.4 |
Accrued interest | 16.9 | 11.3 |
Accrued expenses and other current liabilities | 62.1 | 61.5 |
Total current liabilities | 259.3 | 295.9 |
Long-term debt, net of current portion | 1,253.7 | 1,363.9 |
Deferred income taxes, net | 81.9 | 89.9 |
Other noncurrent liabilities | 154.4 | 163.9 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock: $0.01 par value, 200,000,000 authorized shares; 35,367,264 issued shares | 0.4 | 0.4 |
Additional paid-in capital | 119.6 | 117.1 |
Treasury stock, at cost — 1,475,196 shares at March 31, 2020 and 1,481,611 shares at December 31, 2019 | (3.3) | (3.2) |
Retained earnings | 610.1 | 607.4 |
Accumulated other comprehensive loss | (365.3) | (192.1) |
Total stockholders’ equity | 361.5 | 529.6 |
Total liabilities and stockholders’ equity | $ 2,110.8 | $ 2,443.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Allowance for doubtful accounts | $ 9.5 | $ 10.7 |
Stockholders’ equity: | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 35,367,264 | 35,367,264 |
Treasury stock, shares (in shares) | 1,475,196 | 1,481,611 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Sales | $ 413.9 | $ 403.7 |
Gross profit | 87.3 | 72.6 |
Selling, general and administrative expenses | 43.1 | 39.4 |
Operating earnings | 44.2 | 33.2 |
Other expense (income): | ||
Interest expense | 19 | 16.2 |
Net loss in equity investee | 0.1 | 0.1 |
(Gain) loss on foreign exchange | (14.3) | 5 |
Other, net | 0.1 | (0.6) |
Earnings before income taxes | 39.3 | 12.5 |
Income tax expense | 11.7 | 4.9 |
Net earnings | $ 27.6 | $ 7.6 |
Basic net earnings per common share (in dollars per share) | $ 0.80 | $ 0.22 |
Diluted net earnings per common share (in dollars per share) | $ 0.80 | $ 0.22 |
Weighted-average common shares outstanding (in thousands): | ||
Basic (in shares) | 33,892 | 33,874 |
Diluted (in shares) | 33,892 | 33,874 |
Shipping and handling cost | ||
Cost | $ 101.8 | $ 112.9 |
Product cost | ||
Cost | $ 224.8 | $ 218.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 27.6 | $ 7.6 |
Other comprehensive income (loss): | ||
Unrealized gain from change in pension obligations, net of tax of $(0.0) in both 2020 and 2019 | 0.2 | 0.1 |
Unrealized gain on cash flow hedges, net of tax of $(0.0) in both 2020 and 2019 | 0.1 | 0.1 |
Cumulative translation adjustment | (173.5) | 14.5 |
Comprehensive (loss) income | $ (145.6) | $ 22.3 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain from change in pension obligations, tax | $ 0 | $ 0 |
Unrealized gain on cash flow hedges, tax | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2018 | $ 540.2 | $ 0.4 | $ 110.1 | $ (2.9) | $ 643.5 | $ (210.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 22.3 | 7.6 | 14.7 | |||
Dividends on common stock | (24.5) | 0.1 | (24.6) | |||
Shares issued for stock units, net of shares withheld for taxes | (0.2) | (0.2) | ||||
Stock-based compensation | 1.1 | 1.1 | ||||
Ending balance at Mar. 31, 2019 | 538.8 | 0.4 | 111.3 | (3.1) | 626.4 | (196.2) |
Beginning balance at Dec. 31, 2019 | 529.6 | 0.4 | 117.1 | (3.2) | 607.4 | (192.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | (145.6) | 27.6 | (173.2) | |||
Dividends on common stock | (24.8) | 0.1 | (24.9) | |||
Shares issued for stock units, net of shares withheld for taxes | (0.1) | (0.1) | ||||
Stock-based compensation | 2.4 | 2.4 | ||||
Ending balance at Mar. 31, 2020 | $ 361.5 | $ 0.4 | $ 119.6 | $ (3.3) | $ 610.1 | $ (365.3) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in dollars per share) | $ 0.72 | $ 0.72 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 27.6 | $ 7.6 |
Adjustments to reconcile net earnings to net cash flows provided by operating activities: | ||
Depreciation, depletion and amortization | 33.1 | 35 |
Finance fee amortization | 0.8 | 0.7 |
Stock-based compensation | 2.4 | 1.1 |
Deferred income taxes | 7.5 | (0.1) |
Net loss in equity investee | 0.1 | 0.1 |
Unrealized foreign exchange (gain) loss | (18) | 5.1 |
Other, net | 3.4 | 1.4 |
Changes in operating assets and liabilities: | ||
Receivables | 87.1 | 72 |
Inventories | 36.6 | 41 |
Other assets | 54.5 | 17.3 |
Accounts payable and accrued expenses and other current liabilities | (4.9) | (46.7) |
Other liabilities | (1.6) | (6.1) |
Net cash provided by operating activities | 228.6 | 128.4 |
Cash flows from investing activities: | ||
Capital expenditures | (25.3) | (21.5) |
Other, net | (0.6) | (0.3) |
Net cash used in investing activities | (25.9) | (21.8) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility borrowings | 46.2 | 61.7 |
Principal payments on revolving credit facility borrowings | (147.2) | (139.6) |
Proceeds from issuance of long-term debt | 22 | 18.5 |
Principal payments on long-term debt | (18.7) | (5.5) |
Dividends paid | (24.8) | (24.6) |
Deferred financing costs | (0.1) | 0 |
Shares withheld to satisfy employee tax obligations | (0.1) | (0.2) |
Other, net | (0.1) | (0.3) |
Net cash used in financing activities | (122.8) | (90) |
Effect of exchange rate changes on cash and cash equivalents | (4.8) | 0.2 |
Net change in cash and cash equivalents | 75.1 | 16.8 |
Cash and cash equivalents, beginning of the year | 34.7 | 27 |
Cash and cash equivalents, end of period | 109.8 | 43.8 |
Supplemental cash flow information: | ||
Interest paid, net of amounts capitalized | 11.3 | 17.3 |
Income taxes paid, net of refunds | $ (37.7) | $ 10.2 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies and Basis of Presentation | Accounting Policies and Basis of Presentation: Compass Minerals International, Inc. (“CMI”), through its subsidiaries (collectively, the “Company”), is a leading producer of essential minerals that solve nature’s challenges, including salt for winter roadway safety and other consumer, industrial and agricultural uses, specialty plant nutrition minerals that improve the quality and yield of crops, and specialty chemicals for water treatment and other industrial processes. The Company’s principal products are salt, consisting of sodium chloride and magnesium chloride; plant nutrients, consisting of sulfate of potash (“SOP”), secondary nutrients and micronutrients; and specialty chemicals. The Company also provides records management services to businesses located in the United Kingdom (the “U.K.”). The Company’s production sites are located in the United States (“U.S.”), Canada, Brazil and the U.K. Except where otherwise noted, references to North America include only the continental U.S. and Canada, and references to the U.K. include only England, Scotland and Wales. References to “Compass Minerals,” “our,” “us” and “we” refer to CMI and its consolidated subsidiaries. CMI is a holding company with no significant operations other than those of its wholly-owned subsidiaries. The consolidated financial statements include the accounts of CMI and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company uses the equity method of accounting for equity securities when it has significant influence or when it has more than a minor ownership interest or more than minor influence over an investee’s operations but does not have a controlling financial interest. Initial investments are recorded at cost (including certain transaction costs) and are adjusted by the Company’s share of the investees’ undistributed earnings and losses. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2019 , as filed with the Securities and Exchange Commission in its Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. The Company experiences a substantial amount of seasonality in its sales with respect to its deicing salt products. As a result, sales and operating earnings are generally higher in the first and fourth quarters and lower during the second and third quarters of each year. In particular, sales of highway and consumer deicing salt and magnesium chloride products vary based on the severity of the winter conditions in areas where the products are used. Following industry practice in North America and the U.K., the Company seeks to stockpile sufficient quantities of deicing salt throughout the second, third and fourth quarters to meet the estimated requirements for the upcoming winter season. Production of deicing salt can also vary based on the severity or mildness of the preceding winter season. Due to the seasonal nature of the deicing product lines, operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. The Company’s plant nutrition business is also seasonal. For example, the strongest demand for the Company’s plant nutrition products in Brazil typically occurs during the spring planting season. As a result, the Company and its customers generally build inventories during the low demand periods of the year to ensure timely product availability during the peak sales season. The seasonality of this demand results in the Company’s sales volumes and operating income for the Plant Nutrition South America segment usually being the highest during the third and fourth quarters of each year (as the spring planting season begins in September in Brazil). Significant Accounting Policies The Company’s significant accounting policies are detailed in “Note 2 – Summary of Significant Accounting Policies” within Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (the “FASB”) issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. The adoption of this guidance on January 1, 2020 did not have an impact on the Company’s consolidated financial statements. On January 1, 2020, the Company adopted guidance related to credit losses for financial instruments, which replaces the incurred lost methodology with a current expected credit loss methodology (“CECL”). The Company has determined that its trade receivables are the only financial instrument that is within scope of the new CECL guidance issued by FASB. The CECL methodology requires financial assets to be recorded at the net amount expected to be collected over the lifetime of the asset such that the estimated losses are accrued on the day the asset is acquired. The CECL methodology also requires financial assets to be aggregated and evaluated within pools with similar risk characteristics. The Company has accrued an allowance on its trade receivables based on historical loss rates modified to consider supportable forecasts related to customer-specific and macroeconomic factors. For instance, the Company’s first quarter 2020 allowance for doubtful accounts considered the potential impact that the coronavirus (“COVID-19”) pandemic could have on the collectability of its outstanding receivables. The Company’s customer pools are comprised of North American highway deicing customers, North American consumer and industrial customers, Plant Nutrition North America customers, Plant Nutrition South America customers and customers whose outstanding receivable balances have been sent to collections. Customers grouped within these pools have similar risk characteristics. The Company’s allowance for doubtful accounts consists of estimates of expected credit losses and accruals for returns and allowances. At the transition date of January 1, 2020, the implementation of CECL had an immaterial impact of less than $0.1 million on the Company’s consolidated financial statements. Under CECL, the Company had an allowance for doubtful accounts of $9.4 million and $7.9 million as o f January 1, 2020 , and March 31, 2020 , respectively. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition: Nature of Products and Services The Company’s Salt segment products include salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners, and agricultural and industrial applications. The Company’s plant nutrition products include SOP, secondary nutrients, micronutrients and chemicals for the industrial chemical industry. In the U.K., the Company operates a records management business utilizing excavated areas of the Winsford salt mine with one other location in London, England. Identifying the Contract The Company accounts for a customer contract when there is approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Identifying the Performance Obligations At contract inception, the Company assesses the goods and services it has promised to its customers and identifies a performance obligation for each promise to transfer to the customer a distinct good or service (or bundle of goods or services). Determining whether products and services are considered distinct performance obligations that should be accounted for separately or aggregated together may require significant judgment. Identifying and Allocating the Transaction Price The Company’s revenues are measured based on consideration specified in the customer contract, net of any sales incentives and amounts collected on behalf of third parties such as sales taxes. In certain cases, the Company’s customer contracts may include promises to transfer multiple products and services to a customer. For multiple-element arrangements, the Company generally allocates the transaction price to each performance obligation in proportion to its stand-alone selling price. When Performance Obligations Are Satisfied The vast majority of the Company’s revenues are recognized at a point in time when the performance obligations are satisfied based upon transfer of control of the product or service to a customer. To determine when the control of goods is transferred, the Company typically assesses, among other things, the shipping terms of the contract, as shipping is an indicator of transfer of control. Some of the Company’s products are sold when the control of the goods transfers to the customer at the time of shipment. There are also instances when the Company provides shipping services to deliver its products. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company recognizes shipping and handling costs that are incurred after the customer obtains control of the goods as fulfillment costs which are accrued at the time of revenue recognition. Significant Payment Terms The customer contract states the final terms of the sale, including the description, quantity and price of each product or service purchased. Payment is typically due in full within 30 days of delivery. The Company does not adjust the consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the good or service is transferred to the customer and when the customer pays for that good or service will be one year or less. Refunds, Returns and Warranties The Company’s products are generally not sold with a right of return and the Company does not generally provide credits or incentives, which may be required to be accounted for as variable consideration when estimating the amount of revenue to be recognized. The Company uses historical experience to estimate accruals for refunds due to manufacturing or other defects. See Note 10 for disaggregation of revenue by segment, type and geographical region. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases: In February 2016, the FASB issued guidance which requires lessees to recognize on their balance sheet a right-of-use asset which represents a lessee’s right to use the underlying asset and a lease liability which represents a lessee’s obligation to make lease payments for the right to use the asset. In addition, the guidance requires expanded qualitative and quantitative disclosures. The Company has adopted this guidance beginning in the first quarter of 2019, using a modified retrospective transition method, which required the cumulative effect of this change in accounting of $0.1 million to be recorded as an adjustment to beginning retained earnings. The Company elected the package of transition provisions available for existing contracts, which allowed entities to carryforward the historical assessment of whether the contract contained a lease and the lease classification. The Company enters into leases for warehouses and depots, rail cars, vehicles, mobile equipment, office space and certain other types of property and equipment. The Company determines whether an arrangement is or contains a lease at the inception of the contract. The right-of-use asset and lease liability are recognized based on the present value of the future minimum lease payments over the estimated lease term. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company estimates its incremental borrowing rate for each lease based upon the estimated lease term, the type of asset and the location of the leased asset. The most significant judgments in the application of the FASB guidance include whether a contract contains a lease and the lease term. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Many of the Company’s leases include one or more options to renew and extend the initial lease term. The exercise of lease renewal options is generally at the Company’s discretion. The lease term includes renewal periods in only those instances in which the Company determines it is reasonably assured of renewal. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. In these instances, the assets are depreciated over the useful life of the asset. The Company has elected the practical expedient available under the FASB guidance to not separate lease and nonlease components on all of its lease categories. As a result, many of the Company’s leases include variable payments for services (such as handling or storage) or payments based on the usage of the asset. In addition, certain of the Company’s lease agreements include rental payments that are adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or any material restrictive covenants. The Company’s sublease income is immaterial. The Company’s Consolidated Balance Sheets includes the following (in millions): Consolidated Balance Sheets Location March 31, December 31, Assets Operating lease assets Other assets $ 49.7 $ 53.7 Finance lease assets Property, plant and equipment, net 5.9 5.8 Total leased assets $ 55.6 $ 59.5 Liabilities Current liabilities: Operating Accrued expenses and other current liabilities $ 9.5 $ 12.8 Finance Accrued expenses and other current liabilities 1.7 1.1 Noncurrent liabilities: Operating Other noncurrent liabilities 40.4 41.0 Finance Other noncurrent liabilities 5.3 6.2 Total lease liabilities $ 56.9 $ 61.1 The Company’s components of lease cost are as follows (in millions): Three Months Ended March 31, 2020 2019 Finance lease cost: Amortization of lease assets $ 0.5 $ 0.3 Interest on lease liabilities 0.1 0.2 Operating lease cost 4.6 4.8 Variable lease cost (a) 5.1 6.1 Net lease cost $ 10.3 $ 11.4 (a) Short-term leases are immaterial and included in variable lease cost. Maturities of lease liabilities under the new guidance (“Topic 842”) are as follows (in millions): Topic 842 March 31, 2020 Operating Leases Finance Leases Total Remainder of 2020 $ 8.7 $ 1.6 $ 10.3 2021 10.1 1.6 11.7 2022 7.5 0.9 8.4 2023 6.2 0.9 7.1 2024 5.3 0.9 6.2 After 2024 22.4 2.8 25.2 Total lease payments 60.2 8.7 68.9 Less: Interest (10.3 ) (1.7 ) (12.0 ) Present value of lease liabilities $ 49.9 $ 7.0 $ 56.9 Topic 842 December 31, 2019 Operating Leases Finance Leases Total 2020 $ 13.0 $ 1.6 $ 14.6 2021 10.0 1.3 11.3 2022 7.5 1.1 8.6 2023 6.3 1.1 7.4 2024 5.3 1.1 6.4 After 2024 22.8 3.3 26.1 Total lease payments 64.9 9.5 74.4 Less: Interest (11.1 ) (2.2 ) (13.3 ) Present value of lease liabilities $ 53.8 $ 7.3 $ 61.1 Supplemental lease term and discount rate information related to leases is as follows: March 31, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 7.7 7.7 Finance leases 6.2 7.2 Weighted-average discount rate Operating leases 4.3 % 4.3 % Finance leases 7.1 % 7.6 % Supplemental cash flow information related to leases is as follows (in millions): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4.5 $ 4.9 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 0.5 0.3 Leased assets obtained in exchange for new operating lease liabilities 1.0 2.4 Leased assets obtained in exchange for new finance lease liabilities 1.2 — |
Leases | Leases: In February 2016, the FASB issued guidance which requires lessees to recognize on their balance sheet a right-of-use asset which represents a lessee’s right to use the underlying asset and a lease liability which represents a lessee’s obligation to make lease payments for the right to use the asset. In addition, the guidance requires expanded qualitative and quantitative disclosures. The Company has adopted this guidance beginning in the first quarter of 2019, using a modified retrospective transition method, which required the cumulative effect of this change in accounting of $0.1 million to be recorded as an adjustment to beginning retained earnings. The Company elected the package of transition provisions available for existing contracts, which allowed entities to carryforward the historical assessment of whether the contract contained a lease and the lease classification. The Company enters into leases for warehouses and depots, rail cars, vehicles, mobile equipment, office space and certain other types of property and equipment. The Company determines whether an arrangement is or contains a lease at the inception of the contract. The right-of-use asset and lease liability are recognized based on the present value of the future minimum lease payments over the estimated lease term. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company estimates its incremental borrowing rate for each lease based upon the estimated lease term, the type of asset and the location of the leased asset. The most significant judgments in the application of the FASB guidance include whether a contract contains a lease and the lease term. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Many of the Company’s leases include one or more options to renew and extend the initial lease term. The exercise of lease renewal options is generally at the Company’s discretion. The lease term includes renewal periods in only those instances in which the Company determines it is reasonably assured of renewal. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. In these instances, the assets are depreciated over the useful life of the asset. The Company has elected the practical expedient available under the FASB guidance to not separate lease and nonlease components on all of its lease categories. As a result, many of the Company’s leases include variable payments for services (such as handling or storage) or payments based on the usage of the asset. In addition, certain of the Company’s lease agreements include rental payments that are adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or any material restrictive covenants. The Company’s sublease income is immaterial. The Company’s Consolidated Balance Sheets includes the following (in millions): Consolidated Balance Sheets Location March 31, December 31, Assets Operating lease assets Other assets $ 49.7 $ 53.7 Finance lease assets Property, plant and equipment, net 5.9 5.8 Total leased assets $ 55.6 $ 59.5 Liabilities Current liabilities: Operating Accrued expenses and other current liabilities $ 9.5 $ 12.8 Finance Accrued expenses and other current liabilities 1.7 1.1 Noncurrent liabilities: Operating Other noncurrent liabilities 40.4 41.0 Finance Other noncurrent liabilities 5.3 6.2 Total lease liabilities $ 56.9 $ 61.1 The Company’s components of lease cost are as follows (in millions): Three Months Ended March 31, 2020 2019 Finance lease cost: Amortization of lease assets $ 0.5 $ 0.3 Interest on lease liabilities 0.1 0.2 Operating lease cost 4.6 4.8 Variable lease cost (a) 5.1 6.1 Net lease cost $ 10.3 $ 11.4 (a) Short-term leases are immaterial and included in variable lease cost. Maturities of lease liabilities under the new guidance (“Topic 842”) are as follows (in millions): Topic 842 March 31, 2020 Operating Leases Finance Leases Total Remainder of 2020 $ 8.7 $ 1.6 $ 10.3 2021 10.1 1.6 11.7 2022 7.5 0.9 8.4 2023 6.2 0.9 7.1 2024 5.3 0.9 6.2 After 2024 22.4 2.8 25.2 Total lease payments 60.2 8.7 68.9 Less: Interest (10.3 ) (1.7 ) (12.0 ) Present value of lease liabilities $ 49.9 $ 7.0 $ 56.9 Topic 842 December 31, 2019 Operating Leases Finance Leases Total 2020 $ 13.0 $ 1.6 $ 14.6 2021 10.0 1.3 11.3 2022 7.5 1.1 8.6 2023 6.3 1.1 7.4 2024 5.3 1.1 6.4 After 2024 22.8 3.3 26.1 Total lease payments 64.9 9.5 74.4 Less: Interest (11.1 ) (2.2 ) (13.3 ) Present value of lease liabilities $ 53.8 $ 7.3 $ 61.1 Supplemental lease term and discount rate information related to leases is as follows: March 31, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 7.7 7.7 Finance leases 6.2 7.2 Weighted-average discount rate Operating leases 4.3 % 4.3 % Finance leases 7.1 % 7.6 % Supplemental cash flow information related to leases is as follows (in millions): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4.5 $ 4.9 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 0.5 0.3 Leased assets obtained in exchange for new operating lease liabilities 1.0 2.4 Leased assets obtained in exchange for new finance lease liabilities 1.2 — |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: Inventories consist of the following (in millions): March 31, December 31, Finished goods $ 185.6 $ 235.3 Raw materials and supplies 68.6 76.2 Total inventories $ 254.2 $ 311.5 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net: Property, plant and equipment, net, consists of the following (in millions): March 31, December 31, Land, buildings and structures, and leasehold improvements $ 578.3 $ 596.0 Machinery and equipment 974.8 1,001.9 Office furniture and equipment 62.4 60.7 Mineral interests 165.9 171.1 Construction in progress 136.2 141.3 1,917.6 1,971.0 Less accumulated depreciation and depletion (963.8 ) (940.2 ) Property, plant and equipment, net $ 953.8 $ 1,030.8 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net: Amounts related to the Company’s amortization of intangible assets are as follows (in millions): Three Months Ended 2020 2019 Aggregate amortization expense $ 3.2 $ 3.6 Amounts related to the Company’s goodwill are as follows (in millions): March 31, December 31, Goodwill - Plant Nutrition North America Segment $ 50.5 $ 55.4 Goodwill - Plant Nutrition South America Segment 218.4 281.6 Other 5.8 6.0 Total $ 274.7 $ 343.0 The change in goodwill between December 31, 2019 and March 31, 2020 was due to the impact from translating foreign-denominated amounts to U.S. dollars. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: The Company’s effective income tax rate differs from the U.S. statutory federal income tax rate primarily due to U.S. statutory depletion, state income taxes (net of federal tax benefit), foreign income, mining and withholding taxes, global intangible low-taxed income and interest expense recognition differences for book and tax purposes. The Company’s effective rate is impacted by permanent tax deductions which have a less favorable impact as pretax income increases. The Company had $14.8 million and $18.8 million as of March 31, 2020 and December 31, 2019 , respectively, of gross foreign federal net operating loss (“NOL”) carryforwards that have no expiration date, $1.2 million and $1.7 million , respectively, of gross foreign federal NOL carryforwards which expire beginning in 2033 and $0.2 million and $0.3 million , respectively, of net operating tax-effected state NOL carryforwards which expire beginning in 2027 . Canadian provincial tax authorities have challenged tax positions claimed by one of the Company’s Canadian subsidiaries and have issued tax reassessments for years 2002 - 2014 . The reassessments are a result of ongoing audits and total $120.4 million , including interest, through March 31, 2020 . The Company disputes these reassessments and will continue to work with the appropriate authorities in Canada to resolve the dispute. There is a reasonable possibility that the ultimate resolution of this dispute, and any related disputes for other open tax years, may be materially higher or lower than the amounts the Company has reserved for such disputes. In connection with this dispute, local regulations require the Company to post security with the tax authority until the dispute is resolved. The Company has posted collateral in the form of an $89.6 million performance bond and has paid $34.8 million to the Canadian tax authorities (most of which is recorded in other assets in the Consolidated Balance Sheets). The Company expects that it will be required by local regulations to provide security for additional interest on the above unresolved disputed amounts and for any future reassessments issued by these Canadian tax authorities in the form of cash, letters of credit, performance bonds, asset liens or other arrangements agreeable with the tax authorities until the disputes are resolved. The Company expects that the ultimate outcome of these matters will not have a material impact on its results of operations or financial condition. However, the Company can provide no assurance as to the ultimate outcome of these matters, and the impact could be material if they are not resolved in the Company’s favor. As of March 31, 2020 , the Company believes it has adequately reserved for these reassessments. Additionally, the Company has other uncertain tax positions as well as assessments and disputed positions with taxing authorities in its various jurisdictions, which are consistent with those matters disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Settlements In the fourth quarter of 2017, the Company, the Canadian Revenue Authority (“CRA”) and the U.S. Internal Revenue Service (“IRS”) reached a settlement agreement on transfer pricing issues for the Company’s 2007-2012 tax years. As a result of this settlement agreement, the Company recognized $13.8 million of tax expense in its 2017 Consolidated Statements of Operations related to the Company’s Canadian tax positions for the years 2007-2016. The recording of this settlement resulted in increased sales for the Company’s Canadian subsidiary of $85.7 million and increased offsetting expenses for the Company’s U.S. subsidiary in 2017 causing a domestic loss and significant foreign income. During 2018, in accordance with the settlement agreement, the Company’s U.S. subsidiary made intercompany cash payments of $85.7 million to its Canadian subsidiary and tax payments to Canadian taxing authorities of $17.5 million . The remaining liability was satisfied in 2019 with tax payments of $5.3 million . Corresponding tax refunds of $21.4 million were received in 2019 from U.S. taxing authorities, with the remaining refund of approximately $1.6 million expected in 2020 (recorded in other current assets in the Consolidated Balance Sheets). In the fourth quarter of 2018, the Company, the CRA and the IRS reached a settlement agreement on transfer pricing and management fees as part of an advanced pricing agreement that covers tax years 2013-2021. The tax expense was previously recognized in 2017, however the recording of this settlement resulted in increased sales for the Company’s Canadian subsidiary of $106.1 million and offsetting expenses for the Company’s U.S. subsidiary in 2018 causing a domestic loss and significant foreign income. During 2019, in accordance with the settlement agreement, the Company’s U.S. subsidiary made intercompany cash payments of $106.1 million to its Canadian subsidiary and tax payments to Canadian taxing authorities of $29.9 million , with the remaining $1.3 million of tax payments to be paid during 2020. Corresponding tax refunds of $59.2 million have been received as of March 31, 2020 from U.S. taxing authorities, of which $55 million was received during the first quarter of 2020, with the remaining $2.4 million expected in 2020 (recorded in other current assets in its Consolidated Balance Sheets). |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt: Long-term debt consists of the following (in millions): March 31, December 31, 4.875% Senior Notes due July 2024 $ 250.0 $ 250.0 Term Loan due January 2025 397.5 400.0 Revolving Credit Facility due January 2025 59.0 160.0 6.75% Senior Notes due December 2027 500.0 500.0 3.7% Banco Itaú loan due March 2020 — 15.4 Banco Santander loan due October 2020 12.5 16.2 Banco Itaú loan due February 2021 9.4 — Banco Rabobank loan due July 2021 13.5 17.4 Banco Santander loan due September 2021 15.4 19.9 Banco do Brasil loan due September 2021 9.6 12.4 Banco Rabobank loan due November 2021 13.5 17.4 Banco Santander loan due December 2021 11.6 14.9 Banco Votorantim loan due Febr uary 2022 7.7 — Banco Santander loan due March 2022 2.9 — Financiadora de Estudos e Projetos loan due November 2023 5.2 7.2 1,307.8 1,430.8 Less unamortized debt issuance costs (14.0 ) (14.8 ) Total debt 1,293.8 1,416.0 Less current portion (40.1 ) (52.1 ) Long-term debt $ 1,253.7 $ 1,363.9 In the first quarter of 2020, the Company entered into three loans totaling $20.0 million which mature between February 2021 and March 2022, respectively. Two of the loans were denominated in Brazilian reais and one loan was denominated in euros. In connection with the loan denominated in euros, the Company entered into a swap to exchange principal and interest payments denominated in euros to Brazilian reais (see Note 12 ). These loans bear interest ranging from 143% - 150% of CDI. As of March 31, 2020 , the weighted average interest rate of all the Company’s outstanding debt was approximated 5.69% . During the first quarter of 2020, the Company sold approximately $3.4 million of Brazilian receivables for $3.3 million . The proceeds of the transaction were used to maintain liquidity for working capital needs. The Company is contingently liable for up to 20% of the sale balance up to $0.7 million if the banks are unable to collect on these accounts. As of March 31, 2020 , the term loans and revolving credit facility under the Company’s credit agreement were secured by substantially all existing and future U.S. assets, the Goderich mine in Ontario, Canada and capital stock of certain subsidiaries. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: The Wisconsin Department of Agriculture, Trade and Consumer Protection (“DATCP”) and the Wisconsin Department of Natural Resources (“DNR”) have information indicating that agricultural chemicals are present within the subsurface area of the Company’s property located in Kenosha, Wisconsin. The agricultural chemicals were used by previous owners and operators of the site. None of the identified chemicals have been used in association with the Company’s operations since it acquired the property in 2002. DATCP and DNR have directed the Company to conduct further investigations into the environmental conditions at the Kenosha property. The Company continues on-property investigations and has provided the findings to DATCP and DNR as they have become available. All investigations and mitigation activities to date, and any potential future remediation work, are being conducted under the Wisconsin Agricultural Chemical Cleanup Program, which provides for reimbursement of some of the costs. The Company conducts business operations in several countries and is subject to various federal and local labor, social security, environmental and tax laws. While the Company believes it complies with such laws, they are complex and subject to interpretation. In addition to the tax assessments discussed in Note 7 , the Company’s Brazilian subsidiaries are party to administrative tax proceedings and claims which totaled $7.9 million and $15.8 million as of March 31, 2020 and December 31, 2019 , respectively, and relate primarily to value added tax, state tax (ICMS) and social security tax (PIS and COFINS) assessments. The Company has assessed the likelihood of a loss at less than probable and therefore, has not established a reserve for these matters. The Company also assumed liabilities for labor-related matters in connection with the 2016 acquisition of Compass Minerals South America, which are primarily related to compensation, labor benefits and consequential tax claims that totaled $3.9 million and $5.6 million as of March 31, 2020 and December 31, 2019 , respectively. The Company believes the maximum exposure for these other labor matters totaled approximately $18 million and $25 million as of March 31, 2020 and December 31, 2019 , respectively. The Division of Enforcement of the U.S. Securities and Exchange Commission (“SEC”) is investigating the Company’s disclosures concerning the operation of the Goderich mine. The Company has cooperated with this investigation and will continue to do so. While it is not possible to predict the timing or the outcome of the SEC inquiry, the Company believes that this matter will not have a material impact on its results of operation, cash flows or financial position. The Company is also involved in legal and administrative proceedings and claims of various types from the ordinary course of the Company’s business. Management cannot predict the outcome of legal claims and proceedings with certainty. Nevertheless, management believes the outcome of legal proceedings and claims, which are pending or known to be threatened, even if determined adversely, will not, individually or in the aggregate, have a material adverse effect on the Company’s results of operations, cash flows or financial position. |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments: The Company’s reportable segments are strategic business units that offer different products and services, and each business requires different technology and marketing strategies. The Company has three reportable segments: Salt, Plant Nutrition North America and Plant Nutrition South America. The Salt segment produces and markets salt, consisting of sodium chloride and magnesium chloride, for use in road deicing for winter roadway safety and for dust control, food processing, water softeners and other consumer, agricultural and industrial applications. Plant nutrients, including SOP, secondary nutrients and micronutrients are produced and marketed through the Plant Nutrition North America segment. The Plant Nutrition South America segment operates two primary businesses in Brazil – agricultural productivity and chemical solutions. The agricultural productivity division manufactures and distributes a broad offering of specialty plant nutrition solution-based products that are used in direct soil and foliar applications, as well as through irrigation systems and for seed treatment. The chemical solutions division manufactures and markets specialty chemicals for the industrial chemical industry. Segment information is as follows (in millions): Three Months Ended March 31, 2020 Salt Plant Plant Corporate (a) Total Sales to external customers $ 287.8 $ 60.6 $ 62.8 $ 2.7 $ 413.9 Intersegment sales — 0.3 0.1 (0.4 ) — Shipping and handling cost 89.8 9.0 3.0 — 101.8 Operating earnings (loss) 56.9 5.2 0.3 (18.2 ) 44.2 Depreciation, depletion and amortization 14.6 10.5 5.0 3.0 33.1 Total assets (as of end of period) 956.5 552.3 561.0 41.0 2,110.8 Three Months Ended March 31, 2019 Salt Plant Plant Corporate (a) Total Sales to external customers $ 306.4 $ 37.2 $ 57.7 $ 2.4 $ 403.7 Intersegment sales — 0.5 1.5 (2.0 ) — Shipping and handling cost 103.7 6.0 3.2 — 112.9 Operating earnings (loss) 52.3 (1.6 ) (2.6 ) (14.9 ) 33.2 Depreciation, depletion and amortization 15.3 11.6 5.6 2.5 35.0 Total assets (as of end of period) 889.7 594.1 710.6 114.2 2,308.6 Disaggregated revenue by product type is as follows (in millions): Three Months Ended March 31, 2020 Salt Plant Plant Corporate (a) Total Highway Deicing Salt $ 215.1 $ — $ — $ — $ 215.1 Consumer & Industrial Salt 72.7 — — — 72.7 SOP and Specialty Plant Nutrients — 60.9 41.1 — 102.0 Industrial Chemicals — — 21.8 — 21.8 Eliminations & Other — (0.3 ) (0.1 ) 2.7 2.3 Sales to external customers $ 287.8 $ 60.6 $ 62.8 $ 2.7 $ 413.9 Three Months Ended March 31, 2019 Salt Plant Nutrition North America Plant Corporate & Other (a) Total Highway Deicing Salt $ 218.7 $ — $ — $ — $ 218.7 Consumer & Industrial Salt 87.7 — — — 87.7 SOP and Specialty Plant Nutrients — 37.7 36.6 — 74.3 Industrial Chemicals — — 22.6 — 22.6 Eliminations & Other — (0.5 ) (1.5 ) 2.4 0.4 Sales to external customers $ 306.4 $ 37.2 $ 57.7 $ 2.4 $ 403.7 (a) Corporate and other includes corporate entities, records management operations and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead, including costs for general corporate governance and oversight, as well as costs for the human resources, information technology, legal and finance functions. The Company’s revenue by geographic area is as follows (in millions): Three Months Ended March 31, Revenue 2020 2019 United States (a) $ 257.9 $ 238.3 Canada 77.4 87.4 Brazil 62.1 55.7 United Kingdom 11.8 17.3 Other 4.7 5.0 Total revenue $ 413.9 $ 403.7 (a) United States sales exclude product sold to foreign customers at U.S. ports. |
Stockholders' Equity and Equity
Stockholders' Equity and Equity Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity and Equity Instruments | Stockholders’ Equity and Equity Instruments: In May 2015, the Company’s stockholders approved the 2015 Incentive Award Plan (as amended, the “2015 Plan”), which authorizes the issuance of 3,000,000 shares of Company common stock. Since the date the 2015 Plan was approved, the Company ceased issuing equity awards under the 2005 Incentive Award Plan (as amended, the “2005 Plan”). The 2005 Plan and 2015 Plan allow for grants of equity awards to executive officers, other employees and directors, including restricted stock units (“RSUs”), performance stock units (“PSUs”), stock options and deferred stock units. The grants occur following approval by the compensation committee of the Company’s board of directors, with the amount and terms communicated to employees shortly thereafter. Options Most of the stock options granted under the 2005 Plan and 2015 Plan vest ratably, in tranches, over a four -year service period. Unexercised options expire after seven years . Options do not have dividend or voting rights. Upon vesting, each option can be exercised to purchase one share of the Company’s common stock. The exercise price of options is equal to the closing stock price on the grant date. To estimate the fair value of options on the grant date, the Company uses the Black-Scholes option valuation model . Award recipients are grouped according to expected exercise behavior. Unless better information is available to estimate the expected term of the options, the estimate is based on historical exercise experience. The risk-free rate, using U.S. Treasury yield curves in effect at the time of grant, is selected based on the expected term of each group. The Company’s historical stock price is used to estimate expected volatility. The fair value and inputs used to calculate fair value for options granted in 2020 are included in the table below: Fair value of options granted $10.91 Exercise price $58.91 Expected term (years) 4.75 Expected volatility 29.3% Dividend yield 3.5% Risk-free rate of return 1.6% RSUs Typically, the RSUs granted under the 2015 Plan vest after three years of service. RSUs entitle the holders to one share of common stock for each vested RSU. Unvested RSUs do not have voting rights but are entitled to receive non-forfeitable dividends (generally after a performance hurdle has been satisfied for the year of the grant) or other distributions equal to those declared on the Company’s common stock for RSUs that are earned as a result of the satisfaction of the performance hurdle. The closing stock price on the grant date is used to determine the fair value of RSUs. PSUs The PSUs granted under the 2015 Plan are either total shareholder return PSUs (“TSR PSUs”) or return on invested capital PSUs (“ROIC PSUs”). The actual number of shares of the Company’s common stock that may be earned with respect to TSR PSUs is calculated by comparing the Company’s total shareholder return to the total shareholder return for each company comprising the Russell 3000 Index (for TSR PSUs granted in 2017 and earlier) or the Company’s peer group (for TSR PSUs granted in 2018 and later) over the three -year performance period and may range from 0% to 200% of the target number of shares based upon the attainment of these market conditions. The actual number of shares of common stock that may be earned with respect to ROIC PSUs is calculated based on the average of the Company’s annual return on invested capital for each year in the three -year performance period and may range from 0% to 200% of the target number of shares based upon the attainment of these performance conditions. PSUs represent a target number of shares of the Company’s common stock that may be earned before adjustment based upon the attainment of certain conditions. Holders of PSUs do not have voting rights but are entitled to receive non-forfeitable dividends or other distributions equal to those declared on the Company’s common stock for PSUs that are earned, which are paid when the shares underlying the PSUs are paid. To estimate the fair value of the TSR PSUs on the grant date, the Company uses a Monte-Carlo simulation model , which simulates future stock prices of the Company as well as the companies comprising the Russell 3000 Index or the Company’s peer group depending on the year granted. This model uses historical stock prices to estimate expected volatility and the Company’s correlation to the Russell 3000 Index or peer group. The risk-free rate was determined using the same methodology as the option valuations as discussed above. The Company’s closing stock price on the grant date was used to estimate the fair value of the ROIC PSUs. The Company will adjust the expense of the ROIC PSUs based upon its estimate of the number of shares that will ultimately vest at each interim date during the vesting period. During the three months ended March 31, 2020 , the Company reissued the following number of shares from treasury stock: no shares related to the exercise of stock options, 4,517 shares related to the release of RSUs which vested and 3,377 shares related to stock payments. In 2019, the Company issued 32,197 shares from treasury stock. The Company withheld 1,479 shares with a fair value of $0.1 million related to the vesting of RSUs during the first three months of 2020. The fair value of the shares were valued at the closing price at the vesting date and represent the employee tax withholding for the employee’s compensation. The Company recognized a tax deficiency of $0.2 million from its equity compensation awards as an increase to income tax expense during the first three months of 2020 . During the first three months of 2020 and 2019 , the Company recorded $2.9 million (includes $0.5 million to be paid in cash) and $1.1 million , respectively, of compensation expense pursuant to its stock-based compensation plans. No amounts have been capitalized. The following table summarizes stock-based compensation activity during the three months ended March 31, 2020 : Stock Options RSUs PSUs (a) Number Weighted-average exercise price Number Weighted-average fair value Number Weighted-average fair value Outstanding at December 31, 2019 887,867 $ 64.21 217,413 $ 52.07 179,397 $ 61.43 Granted 94,945 58.91 83,337 58.92 69,635 82.38 Exercised (b) — — — — — — Released from restriction (b) — — (4,517 ) 39.75 — — Cancelled/expired (64,666 ) 72.67 (27,981 ) 50.18 (26,899 ) 67.55 Outstanding at March 31, 2020 918,146 $ 63.07 268,252 $ 54.61 222,133 $ 67.26 (a) Until the performance period is completed, PSUs are included in the table at the target level at their grant date and at that level represent one share of common stock per PSU. (b) Common stock issued for exercised options and for vested and earned RSUs and PSUs was issued from treasury stock. Other Comprehensive (Loss) Income The Company’s comprehensive (loss) income is comprised of net earnings, net amortization of the unrealized loss of the pension obligation, the change in the unrealized gain on natural gas and foreign currency cash flow hedges and foreign currency translation adjustments. The components of and changes in accumulated other comprehensive loss (“AOCL”) as of and for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (0.6 ) $ (6.9 ) $ (184.6 ) $ (192.1 ) Other comprehensive income (loss) before reclassifications (b) 2.7 — (173.5 ) (170.8 ) Amounts reclassified from accumulated other comprehensive loss (2.6 ) 0.2 — (2.4 ) Net current period other comprehensive income (loss) 0.1 0.2 (173.5 ) (173.2 ) Ending balance $ (0.5 ) $ (6.7 ) $ (358.1 ) $ (365.3 ) Three Months Ended March 31, 2019 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (0.7 ) $ (4.5 ) $ (205.7 ) $ (210.9 ) Other comprehensive income before reclassifications (b) 0.2 — 14.5 14.7 Amounts reclassified from accumulated other comprehensive loss (0.1 ) 0.1 — — Net current period other comprehensive income 0.1 0.1 14.5 14.7 Ending balance $ (0.6 ) $ (4.4 ) $ (191.2 ) $ (196.2 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive loss presented in the tables above are reflected net of applicable income taxes. (b) The Company recorded a foreign exchange gain (loss) of $(75.5) million and $2.3 million in the three months ended March 31, 2020 and 2019 , respectively, in accumulated other comprehensive loss related to intercompany notes which were deemed to be of a long-term investment nature. The amounts reclassified from AOCL to expense (income) for the three months ended March 31, 2020 and 2019 , are shown below (in millions): Amount Reclassified from AOCL Three Months Ended Three Months Ended Line Item Impacted in the Consolidated Statements of Operations Gains (losses) on cash flow hedges: Natural gas instruments $ (0.3 ) $ (0.1 ) Product cost Foreign currency contracts (3.6 ) (0.1 ) Interest expense Income tax expense 1.3 0.1 Reclassifications, net of income taxes (2.6 ) (0.1 ) Amortization of defined benefit pension: Amortization of loss $ 0.2 $ 0.1 Product cost Reclassifications, net of income taxes 0.2 0.1 Total reclassifications, net of income taxes $ (2.4 ) $ — |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments: The Company is subject to various types of market risks, including interest rate risk, foreign currency exchange rate transaction and translation risk and commodity pricing risk. Management may take actions to mitigate the exposure to these types of risks, including entering into forward purchase contracts and other financial instruments. Currently, the Company manages a portion of its commodity pricing and foreign currency exchange rate risks by using derivative instruments. The Company does not seek to engage in trading activities or take speculative positions with any financial instrument arrangement. The Company has entered into natural gas derivative instruments and foreign currency derivative instruments with counterparties it views as creditworthy. However, the Company does attempt to mitigate its counterparty credit risk exposures by, among other things, entering into master netting agreements with some of these counterparties. The Company records derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. Depending on the exposure being hedged, the Company must designate the hedging instrument as a fair value hedge, a cash flow hedge or a net investment in foreign operations hedge. For the qualifying derivative instruments that have been designated as hedges, the change in fair value is recognized through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the statements of operations. Any ineffectiveness related to these hedges was not material for any of the periods presented. For derivative instruments that have not been designated as hedges, the entire change in fair value is recorded through earnings in the period of change. Natural Gas Derivative Instruments Natural gas is consumed at several of the Company’s production facilities, and changes in natural gas prices impact the Company’s operating margin. The Company’s objective is to reduce the earnings and cash flow impacts of changes in market prices of natural gas by fixing the purchase price of up to 90% of its forecasted natural gas usage. It is the Company’s policy to consider hedging portions of its natural gas usage up to 36 months in advance of the forecasted purchase. As of March 31, 2020 , the Company had entered into natural gas derivative instruments to hedge a portion of its natural gas purchase requirements through December 2021 . As of March 31, 2020 and December 31, 2019 , the Company had agreements in place to hedge forecasted natural gas purchases of 2.8 million MMBtus. All natural gas derivative instruments held by the Company as of March 31, 2020 and December 31, 2019 qualified and were designated as cash flow hedges. As of March 31, 2020 , the Company expects to reclassify from accumulated other comprehensive loss to earnings during the next twelve months $0.6 million of net losses on derivative instruments related to its natural gas hedges. Foreign Currency Derivatives Not Designated as Hedges In March 2020, the Company entered into forward instruments to swap currency denominated in U.S. dollars to Canadian dollars for a future intercompany payment from a U.S. subsidiary to a Canadian subsidiary. These instruments mature in April 2020 with a combined notional amounts of $89.9 million . The objective of the instruments was to mitigate the foreign currency fluctuation risk related to intercompany payments denominated in a currency other than U.S. dollars, the Company’s functional currency. The instrument was not designated as a hedge. During the three months ended March 31, 2020 , the Company recognized a loss of $5.3 million in loss on foreign exchange in its Consolidated Statements of Operations for these agreements. Foreign Currency Derivatives Designated as Hedges The Company has entered into U.S. dollar-denominated debt instruments to provide funds for its operations in Brazil. The Company may also concurrently enter into foreign currency agreements whereby the Company agrees to swap interest and principal payments on loans denominated in U.S. dollars for principal and interest payments denominated in Brazilian reais, its Brazil subsidiary’s functional currency. The objective of the swap agreements is to mitigate the foreign currency fluctuation risk related to holding debt denominated in a currency other than the Company’s Brazil subsidiary’s functional currency. As of March 31, 2020 , the Company had a swap agreement in place to hedge $9.4 million of a loan denominated in a currency other than its Brazil subsidiary’s functional currency. Payments on this loan are due on various dates extending through February 2021. As of March 31, 2020 , this foreign currency derivative instrument qualified and was designated as a cash flow hedge. As of March 31, 2020 , the Company expects to reclassify from accumulated other comprehensive loss to earnings during the next twelve months $1.7 million of net gains on derivative instruments related to this foreign currency swap agreement. The following tables present the fair value of the Company’s hedged items as of March 31, 2020 and December 31, 2019 (in millions): Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Consolidated Balance Sheets Location March 31, 2020 Consolidated Balance Sheets Location March 31, 2020 Commodity contracts Other current assets $ 0.3 Accrued expenses and other current liabilities $ 0.9 Commodity contracts Other assets — Other noncurrent liabilities 0.1 Swap contracts Other current assets 1.7 Accrued expenses and other current liabilities — Total derivatives designated as hedging instruments (a)(b) $ 2.0 $ 1.0 (a) The Company has master netting agreements with both of its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets $0.3 million of its commodity contracts that are in a receivable position against its contracts in payable positions. (b) The Company has commodity hedge agreements with two counterparties and a foreign currency swap agreement with one counterparty. Amounts recorded as liabilities for the Company’s commodity contracts are payable to both counterparties and amounts recorded as assets for the Company’s foreign currency swap agreements are receivable from one counterparty. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Consolidated Balance Sheets Location December 31, 2019 Consolidated Balance Sheets Location December 31, 2019 Commodity contracts Other current assets $ 0.3 Accrued expenses and other current liabilities $ 0.8 Commodity contracts Other assets 0.1 Other noncurrent liabilities 0.2 Swap contracts Other current assets 2.8 Accrued expenses and other current liabilities — Total derivatives designated as hedging instruments (a)(b) $ 3.2 $ 1.0 (a) The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets $0.4 million of its commodity contracts that are in a receivable position against its contracts in payable positions. (b) The Company has both commodity hedge and foreign currency swap agreements with two |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements: The Company’s financial instruments are measured and reported at their estimated fair values. Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction. When available, the Company uses quoted prices in active markets to determine the fair values for its financial instruments (Level 1 inputs) or, absent quoted market prices, observable market-corroborated inputs over the term of the financial instruments (Level 2 inputs). The Company does not have any unobservable inputs that are not corroborated by market inputs (Level 3 inputs). The Company holds marketable securities associated with its defined contribution and pre-tax savings plans, which are valued based on readily available quoted market prices. The Company utilizes derivative instruments to manage its risk of changes in natural gas prices and its risk of changes in foreign currency exchange rates (see Note 12 ). The fair values of the natural gas and foreign currency derivative instruments are determined using market data of forward prices for all of the Company’s contracts. The estimated fair values for each type of instrument are presented below (in millions): March 31, Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 1.3 $ 1.3 $ — $ — Derivatives – foreign currency contracts, net 1.7 — 1.7 — Total Assets $ 3.0 $ 1.3 $ 1.7 $ — Liability Class: Liabilities related to non-qualified savings plan $ (1.3 ) $ (1.3 ) $ — $ — Derivatives – natural gas instruments, net (0.7 ) — (0.7 ) — Total Liabilities $ (2.0 ) $ (1.3 ) $ (0.7 ) $ — (a) Includes mutual fund investments of approximately 30% in common stock of large-cap U.S. companies, 10% in common stock of small to mid-cap U.S. companies, 5% in international companies, 20% in bond funds, 10% in short-term investments and 25% in blended funds. December 31, Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 1.4 $ 1.4 $ — $ — Derivatives – foreign currency contracts, net 2.8 — 2.8 — Total Assets $ 4.2 $ 1.4 $ 2.8 $ — Liability Class: Liabilities related to non-qualified savings plan $ (1.4 ) $ (1.4 ) $ — $ — Derivatives – natural gas instruments, net (0.6 ) — (0.6 ) — Total Liabilities $ (2.0 ) $ (1.4 ) $ (0.6 ) $ — (a) Includes mutual fund investments of approximately 30% in the common stock of large-cap U.S. companies, 15% in the common stock of small to mid-cap U.S. companies, 5% in the common stock of international companies, 10% in bond funds, 20% in short-term investments and 20% in blended funds. Cash and cash equivalents, accounts receivable (net of allowance for bad debts) and payables are carried at cost, which approximates fair value due to their liquid and short-term nature. The Company’s investments related to its nonqualified savings plan of $1.3 million and $1.4 million at March 31, 2020 and December 31, 2019 , respectively, are stated at fair value based on quoted market prices. As of March 31, 2020 and December 31, 2019 , the estimated amount a third party would pay for the Company’s fixed-rate 4.875% Senior Notes due July 2024, based on available trading information (Level 2), totaled $235.0 million and $249.1 million , respectively, compared with the aggregate principal amount at maturity of $250.0 million . As of March 31, 2020 and December 31, 2019 , the estimated amount a third party would pay for the Company’s fixed-rate 6.75% Senior Notes due December 2027, based on available trading information (Level 2), totaled $451.4 million and $530.6 million , respectively, compared with the aggregate principal amount at maturity of $500.0 million . The estimated amount a third party would pay at March 31, 2020 and December 31, 2019 for the amounts outstanding under the Company’s term loans and revolving credit facility, based upon available bid information received from the Company’s lender (Level 2), totaled $451.3 million and $552.8 million , respectively, compared with the aggregate principal balance of $456.5 million and $560.0 million |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share: The Company calculates earnings per share using the two-class method. The two-class method requires allocating the Company’s net earnings to both common shares and participating securities. The following table sets forth the computation of basic and diluted earnings per common share (in millions, except for share and per-share data): Three Months Ended 2020 2019 Numerator: Net earnings $ 27.6 $ 7.6 Less: net earnings allocated to participating securities (a) (0.5 ) (0.2 ) Net earnings available to common shareholders $ 27.1 $ 7.4 Denominator (in thousands): Weighted-average common shares outstanding, shares for basic earnings per share 33,892 33,874 Weighted-average awards outstanding (b) — — Shares for diluted earnings per share 33,892 33,874 Net earnings per common share, basic $ 0.80 $ 0.22 Net earnings per common share, diluted $ 0.80 $ 0.22 (a) Weighted participating securities include RSUs and PSUs that receive non-forfeitable dividends and consist of 412,000 and 233,000 weighted participating securities for the three months ended March 31, 2020 and 2019, respectively. (b) For the calculation of diluted net earnings per share, the Company uses the more dilutive of either the treasury stock method or the two-class method to determine the weighted-average number of outstanding common shares. In addition, the Company had 1,266,000 and 788,000 weighted-average equity awards outstanding for the three months ended March 31, 2020 |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | CMI is a holding company with no significant operations other than those of its wholly-owned subsidiaries. The consolidated financial statements include the accounts of CMI and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Equity Method Investments | The Company uses the equity method of accounting for equity securities when it has significant influence or when it has more than a minor ownership interest or more than minor influence over an investee’s operations but does not have a controlling financial interest. Initial investments are recorded at cost (including certain transaction costs) and are adjusted by the Company’s share of the investees’ undistributed earnings and losses. |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2019 , as filed with the Securities and Exchange Commission in its Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. |
Significant and Recent Accounting Pronouncements | Significant Accounting Policies The Company’s significant accounting policies are detailed in “Note 2 – Summary of Significant Accounting Policies” within Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (the “FASB”) issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. The adoption of this guidance on January 1, 2020 did not have an impact on the Company’s consolidated financial statements. On January 1, 2020, the Company adopted guidance related to credit losses for financial instruments, which replaces the incurred lost methodology with a current expected credit loss methodology (“CECL”). The Company has determined that its trade receivables are the only financial instrument that is within scope of the new CECL guidance issued by FASB. The CECL methodology requires financial assets to be recorded at the net amount expected to be collected over the lifetime of the asset such that the estimated losses are accrued on the day the asset is acquired. The CECL methodology also requires financial assets to be aggregated and evaluated within pools with similar risk characteristics. The Company has accrued an allowance on its trade receivables based on historical loss rates modified to consider supportable forecasts related to customer-specific and macroeconomic factors. For instance, the Company’s first quarter 2020 allowance for doubtful accounts considered the potential impact that the coronavirus (“COVID-19”) pandemic could have on the collectability of its outstanding receivables. The Company’s customer pools are comprised of North American highway deicing customers, North American consumer and industrial customers, Plant Nutrition North America customers, Plant Nutrition South America customers and customers whose outstanding receivable balances have been sent to collections. Customers grouped within these pools have similar risk characteristics. The Company’s allowance for doubtful accounts consists of estimates of expected credit losses and accruals for returns and allowances. At the transition date of January 1, 2020, the implementation of CECL had an immaterial impact of less than $0.1 million on the Company’s consolidated financial statements. Under CECL, the Company had an allowance for doubtful accounts of $9.4 million and $7.9 million as o f January 1, 2020 , and March 31, 2020 , respectively. |
Derivative Financial Instruments | The Company is subject to various types of market risks, including interest rate risk, foreign currency exchange rate transaction and translation risk and commodity pricing risk. Management may take actions to mitigate the exposure to these types of risks, including entering into forward purchase contracts and other financial instruments. Currently, the Company manages a portion of its commodity pricing and foreign currency exchange rate risks by using derivative instruments. The Company does not seek to engage in trading activities or take speculative positions with any financial instrument arrangement. The Company has entered into natural gas derivative instruments and foreign currency derivative instruments with counterparties it views as creditworthy. However, the Company does attempt to mitigate its counterparty credit risk exposures by, among other things, entering into master netting agreements with some of these counterparties. The Company records derivative financial instruments as either assets or liabilities at fair value in the Consolidated Balance Sheets. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. Depending on the exposure being hedged, the Company must designate the hedging instrument as a fair value hedge, a cash flow hedge or a net investment in foreign operations hedge. For the qualifying derivative instruments that have been designated as hedges, the change in fair value is recognized through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the statements of operations. Any ineffectiveness related to these hedges was not material for any of the periods presented. For derivative instruments that have not been designated as hedges, the entire change in fair value is recorded through earnings in the period of change. |
Earnings Per Share | The Company calculates earnings per share using the two-class method. The two-class method requires allocating the Company’s net earnings to both common shares and participating securities. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating and Finance Leases by Balance Sheets Location | The Company’s Consolidated Balance Sheets includes the following (in millions): Consolidated Balance Sheets Location March 31, December 31, Assets Operating lease assets Other assets $ 49.7 $ 53.7 Finance lease assets Property, plant and equipment, net 5.9 5.8 Total leased assets $ 55.6 $ 59.5 Liabilities Current liabilities: Operating Accrued expenses and other current liabilities $ 9.5 $ 12.8 Finance Accrued expenses and other current liabilities 1.7 1.1 Noncurrent liabilities: Operating Other noncurrent liabilities 40.4 41.0 Finance Other noncurrent liabilities 5.3 6.2 Total lease liabilities $ 56.9 $ 61.1 |
Schedule of Lease Cost, Lease Terms and Supplemental Cash Flow Information | Supplemental lease term and discount rate information related to leases is as follows: March 31, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 7.7 7.7 Finance leases 6.2 7.2 Weighted-average discount rate Operating leases 4.3 % 4.3 % Finance leases 7.1 % 7.6 % Supplemental cash flow information related to leases is as follows (in millions): Three Months Ended March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4.5 $ 4.9 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 0.5 0.3 Leased assets obtained in exchange for new operating lease liabilities 1.0 2.4 Leased assets obtained in exchange for new finance lease liabilities 1.2 — The Company’s components of lease cost are as follows (in millions): Three Months Ended March 31, 2020 2019 Finance lease cost: Amortization of lease assets $ 0.5 $ 0.3 Interest on lease liabilities 0.1 0.2 Operating lease cost 4.6 4.8 Variable lease cost (a) 5.1 6.1 Net lease cost $ 10.3 $ 11.4 (a) Short-term leases are immaterial and included in variable lease cost. |
Schedule of Operating Lease Maturities | Maturities of lease liabilities under the new guidance (“Topic 842”) are as follows (in millions): Topic 842 March 31, 2020 Operating Leases Finance Leases Total Remainder of 2020 $ 8.7 $ 1.6 $ 10.3 2021 10.1 1.6 11.7 2022 7.5 0.9 8.4 2023 6.2 0.9 7.1 2024 5.3 0.9 6.2 After 2024 22.4 2.8 25.2 Total lease payments 60.2 8.7 68.9 Less: Interest (10.3 ) (1.7 ) (12.0 ) Present value of lease liabilities $ 49.9 $ 7.0 $ 56.9 Topic 842 December 31, 2019 Operating Leases Finance Leases Total 2020 $ 13.0 $ 1.6 $ 14.6 2021 10.0 1.3 11.3 2022 7.5 1.1 8.6 2023 6.3 1.1 7.4 2024 5.3 1.1 6.4 After 2024 22.8 3.3 26.1 Total lease payments 64.9 9.5 74.4 Less: Interest (11.1 ) (2.2 ) (13.3 ) Present value of lease liabilities $ 53.8 $ 7.3 $ 61.1 |
Schedule of Financing Lease Maturities | Maturities of lease liabilities under the new guidance (“Topic 842”) are as follows (in millions): Topic 842 March 31, 2020 Operating Leases Finance Leases Total Remainder of 2020 $ 8.7 $ 1.6 $ 10.3 2021 10.1 1.6 11.7 2022 7.5 0.9 8.4 2023 6.2 0.9 7.1 2024 5.3 0.9 6.2 After 2024 22.4 2.8 25.2 Total lease payments 60.2 8.7 68.9 Less: Interest (10.3 ) (1.7 ) (12.0 ) Present value of lease liabilities $ 49.9 $ 7.0 $ 56.9 Topic 842 December 31, 2019 Operating Leases Finance Leases Total 2020 $ 13.0 $ 1.6 $ 14.6 2021 10.0 1.3 11.3 2022 7.5 1.1 8.6 2023 6.3 1.1 7.4 2024 5.3 1.1 6.4 After 2024 22.8 3.3 26.1 Total lease payments 64.9 9.5 74.4 Less: Interest (11.1 ) (2.2 ) (13.3 ) Present value of lease liabilities $ 53.8 $ 7.3 $ 61.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following (in millions): March 31, December 31, Finished goods $ 185.6 $ 235.3 Raw materials and supplies 68.6 76.2 Total inventories $ 254.2 $ 311.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net, consists of the following (in millions): March 31, December 31, Land, buildings and structures, and leasehold improvements $ 578.3 $ 596.0 Machinery and equipment 974.8 1,001.9 Office furniture and equipment 62.4 60.7 Mineral interests 165.9 171.1 Construction in progress 136.2 141.3 1,917.6 1,971.0 Less accumulated depreciation and depletion (963.8 ) (940.2 ) Property, plant and equipment, net $ 953.8 $ 1,030.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Amounts related to the Company’s amortization of intangible assets are as follows (in millions): Three Months Ended 2020 2019 Aggregate amortization expense $ 3.2 $ 3.6 |
Summary of Goodwill | Amounts related to the Company’s goodwill are as follows (in millions): March 31, December 31, Goodwill - Plant Nutrition North America Segment $ 50.5 $ 55.4 Goodwill - Plant Nutrition South America Segment 218.4 281.6 Other 5.8 6.0 Total $ 274.7 $ 343.0 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following (in millions): March 31, December 31, 4.875% Senior Notes due July 2024 $ 250.0 $ 250.0 Term Loan due January 2025 397.5 400.0 Revolving Credit Facility due January 2025 59.0 160.0 6.75% Senior Notes due December 2027 500.0 500.0 3.7% Banco Itaú loan due March 2020 — 15.4 Banco Santander loan due October 2020 12.5 16.2 Banco Itaú loan due February 2021 9.4 — Banco Rabobank loan due July 2021 13.5 17.4 Banco Santander loan due September 2021 15.4 19.9 Banco do Brasil loan due September 2021 9.6 12.4 Banco Rabobank loan due November 2021 13.5 17.4 Banco Santander loan due December 2021 11.6 14.9 Banco Votorantim loan due Febr uary 2022 7.7 — Banco Santander loan due March 2022 2.9 — Financiadora de Estudos e Projetos loan due November 2023 5.2 7.2 1,307.8 1,430.8 Less unamortized debt issuance costs (14.0 ) (14.8 ) Total debt 1,293.8 1,416.0 Less current portion (40.1 ) (52.1 ) Long-term debt $ 1,253.7 $ 1,363.9 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Segment information is as follows (in millions): Three Months Ended March 31, 2020 Salt Plant Plant Corporate (a) Total Sales to external customers $ 287.8 $ 60.6 $ 62.8 $ 2.7 $ 413.9 Intersegment sales — 0.3 0.1 (0.4 ) — Shipping and handling cost 89.8 9.0 3.0 — 101.8 Operating earnings (loss) 56.9 5.2 0.3 (18.2 ) 44.2 Depreciation, depletion and amortization 14.6 10.5 5.0 3.0 33.1 Total assets (as of end of period) 956.5 552.3 561.0 41.0 2,110.8 Three Months Ended March 31, 2019 Salt Plant Plant Corporate (a) Total Sales to external customers $ 306.4 $ 37.2 $ 57.7 $ 2.4 $ 403.7 Intersegment sales — 0.5 1.5 (2.0 ) — Shipping and handling cost 103.7 6.0 3.2 — 112.9 Operating earnings (loss) 52.3 (1.6 ) (2.6 ) (14.9 ) 33.2 Depreciation, depletion and amortization 15.3 11.6 5.6 2.5 35.0 Total assets (as of end of period) 889.7 594.1 710.6 114.2 2,308.6 |
Summary of Disaggregated Revenue by Product Type | Disaggregated revenue by product type is as follows (in millions): Three Months Ended March 31, 2020 Salt Plant Plant Corporate (a) Total Highway Deicing Salt $ 215.1 $ — $ — $ — $ 215.1 Consumer & Industrial Salt 72.7 — — — 72.7 SOP and Specialty Plant Nutrients — 60.9 41.1 — 102.0 Industrial Chemicals — — 21.8 — 21.8 Eliminations & Other — (0.3 ) (0.1 ) 2.7 2.3 Sales to external customers $ 287.8 $ 60.6 $ 62.8 $ 2.7 $ 413.9 Three Months Ended March 31, 2019 Salt Plant Nutrition North America Plant Corporate & Other (a) Total Highway Deicing Salt $ 218.7 $ — $ — $ — $ 218.7 Consumer & Industrial Salt 87.7 — — — 87.7 SOP and Specialty Plant Nutrients — 37.7 36.6 — 74.3 Industrial Chemicals — — 22.6 — 22.6 Eliminations & Other — (0.5 ) (1.5 ) 2.4 0.4 Sales to external customers $ 306.4 $ 37.2 $ 57.7 $ 2.4 $ 403.7 (a) Corporate and other includes corporate entities, records management operations and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead, including costs for general corporate governance and oversight, as well as costs for the human resources, information technology, legal and finance functions. |
Summary of Revenue by Geographic Area | The Company’s revenue by geographic area is as follows (in millions): Three Months Ended March 31, Revenue 2020 2019 United States (a) $ 257.9 $ 238.3 Canada 77.4 87.4 Brazil 62.1 55.7 United Kingdom 11.8 17.3 Other 4.7 5.0 Total revenue $ 413.9 $ 403.7 (a) United States sales exclude product sold to foreign customers at U.S. ports. |
Stockholders' Equity and Equi_2
Stockholders' Equity and Equity Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Fair Value and Inputs Used to Calculate Fair Value for Options Granted | The fair value and inputs used to calculate fair value for options granted in 2020 are included in the table below: Fair value of options granted $10.91 Exercise price $58.91 Expected term (years) 4.75 Expected volatility 29.3% Dividend yield 3.5% Risk-free rate of return 1.6% |
Summary of Stock-Based Compensation Activity | The following table summarizes stock-based compensation activity during the three months ended March 31, 2020 : Stock Options RSUs PSUs (a) Number Weighted-average exercise price Number Weighted-average fair value Number Weighted-average fair value Outstanding at December 31, 2019 887,867 $ 64.21 217,413 $ 52.07 179,397 $ 61.43 Granted 94,945 58.91 83,337 58.92 69,635 82.38 Exercised (b) — — — — — — Released from restriction (b) — — (4,517 ) 39.75 — — Cancelled/expired (64,666 ) 72.67 (27,981 ) 50.18 (26,899 ) 67.55 Outstanding at March 31, 2020 918,146 $ 63.07 268,252 $ 54.61 222,133 $ 67.26 (a) Until the performance period is completed, PSUs are included in the table at the target level at their grant date and at that level represent one share of common stock per PSU. (b) Common stock issued for exercised options and for vested and earned RSUs and PSUs was issued from treasury stock. |
Summary of Components and Changes in Accumulated Other Comprehensive Income (Loss) | The components of and changes in accumulated other comprehensive loss (“AOCL”) as of and for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (0.6 ) $ (6.9 ) $ (184.6 ) $ (192.1 ) Other comprehensive income (loss) before reclassifications (b) 2.7 — (173.5 ) (170.8 ) Amounts reclassified from accumulated other comprehensive loss (2.6 ) 0.2 — (2.4 ) Net current period other comprehensive income (loss) 0.1 0.2 (173.5 ) (173.2 ) Ending balance $ (0.5 ) $ (6.7 ) $ (358.1 ) $ (365.3 ) Three Months Ended March 31, 2019 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (0.7 ) $ (4.5 ) $ (205.7 ) $ (210.9 ) Other comprehensive income before reclassifications (b) 0.2 — 14.5 14.7 Amounts reclassified from accumulated other comprehensive loss (0.1 ) 0.1 — — Net current period other comprehensive income 0.1 0.1 14.5 14.7 Ending balance $ (0.6 ) $ (4.4 ) $ (191.2 ) $ (196.2 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive loss presented in the tables above are reflected net of applicable income taxes. (b) The Company recorded a foreign exchange gain (loss) of $(75.5) million and $2.3 million in the three months ended March 31, 2020 and 2019 , respectively, in accumulated other comprehensive loss related to intercompany notes which were deemed to be of a long-term investment nature. |
Summary of Reclassifications out of Accumulated Other Comprehensive Income | The amounts reclassified from AOCL to expense (income) for the three months ended March 31, 2020 and 2019 , are shown below (in millions): Amount Reclassified from AOCL Three Months Ended Three Months Ended Line Item Impacted in the Consolidated Statements of Operations Gains (losses) on cash flow hedges: Natural gas instruments $ (0.3 ) $ (0.1 ) Product cost Foreign currency contracts (3.6 ) (0.1 ) Interest expense Income tax expense 1.3 0.1 Reclassifications, net of income taxes (2.6 ) (0.1 ) Amortization of defined benefit pension: Amortization of loss $ 0.2 $ 0.1 Product cost Reclassifications, net of income taxes 0.2 0.1 Total reclassifications, net of income taxes $ (2.4 ) $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Hedges | The following tables present the fair value of the Company’s hedged items as of March 31, 2020 and December 31, 2019 (in millions): Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Consolidated Balance Sheets Location March 31, 2020 Consolidated Balance Sheets Location March 31, 2020 Commodity contracts Other current assets $ 0.3 Accrued expenses and other current liabilities $ 0.9 Commodity contracts Other assets — Other noncurrent liabilities 0.1 Swap contracts Other current assets 1.7 Accrued expenses and other current liabilities — Total derivatives designated as hedging instruments (a)(b) $ 2.0 $ 1.0 (a) The Company has master netting agreements with both of its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets $0.3 million of its commodity contracts that are in a receivable position against its contracts in payable positions. (b) The Company has commodity hedge agreements with two counterparties and a foreign currency swap agreement with one counterparty. Amounts recorded as liabilities for the Company’s commodity contracts are payable to both counterparties and amounts recorded as assets for the Company’s foreign currency swap agreements are receivable from one counterparty. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Consolidated Balance Sheets Location December 31, 2019 Consolidated Balance Sheets Location December 31, 2019 Commodity contracts Other current assets $ 0.3 Accrued expenses and other current liabilities $ 0.8 Commodity contracts Other assets 0.1 Other noncurrent liabilities 0.2 Swap contracts Other current assets 2.8 Accrued expenses and other current liabilities — Total derivatives designated as hedging instruments (a)(b) $ 3.2 $ 1.0 (a) The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets $0.4 million of its commodity contracts that are in a receivable position against its contracts in payable positions. (b) The Company has both commodity hedge and foreign currency swap agreements with two counterparties each. Amounts recorded as liabilities for the Company’s commodity contracts are payable to both counterparties, and amounts recorded as assets for the Company’s foreign currency swap agreements are receivable from both counterparties. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Value of Assets and Liabilities | The estimated fair values for each type of instrument are presented below (in millions): March 31, Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 1.3 $ 1.3 $ — $ — Derivatives – foreign currency contracts, net 1.7 — 1.7 — Total Assets $ 3.0 $ 1.3 $ 1.7 $ — Liability Class: Liabilities related to non-qualified savings plan $ (1.3 ) $ (1.3 ) $ — $ — Derivatives – natural gas instruments, net (0.7 ) — (0.7 ) — Total Liabilities $ (2.0 ) $ (1.3 ) $ (0.7 ) $ — (a) Includes mutual fund investments of approximately 30% in common stock of large-cap U.S. companies, 10% in common stock of small to mid-cap U.S. companies, 5% in international companies, 20% in bond funds, 10% in short-term investments and 25% in blended funds. December 31, Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 1.4 $ 1.4 $ — $ — Derivatives – foreign currency contracts, net 2.8 — 2.8 — Total Assets $ 4.2 $ 1.4 $ 2.8 $ — Liability Class: Liabilities related to non-qualified savings plan $ (1.4 ) $ (1.4 ) $ — $ — Derivatives – natural gas instruments, net (0.6 ) — (0.6 ) — Total Liabilities $ (2.0 ) $ (1.4 ) $ (0.6 ) $ — (a) Includes mutual fund investments of approximately 30% in the common stock of large-cap U.S. companies, 15% in the common stock of small to mid-cap U.S. companies, 5% in the common stock of international companies, 10% in bond funds, 20% in short-term investments and 20% in blended funds. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share (in millions, except for share and per-share data): Three Months Ended 2020 2019 Numerator: Net earnings $ 27.6 $ 7.6 Less: net earnings allocated to participating securities (a) (0.5 ) (0.2 ) Net earnings available to common shareholders $ 27.1 $ 7.4 Denominator (in thousands): Weighted-average common shares outstanding, shares for basic earnings per share 33,892 33,874 Weighted-average awards outstanding (b) — — Shares for diluted earnings per share 33,892 33,874 Net earnings per common share, basic $ 0.80 $ 0.22 Net earnings per common share, diluted $ 0.80 $ 0.22 (a) Weighted participating securities include RSUs and PSUs that receive non-forfeitable dividends and consist of 412,000 and 233,000 weighted participating securities for the three months ended March 31, 2020 and 2019, respectively. (b) For the calculation of diluted net earnings per share, the Company uses the more dilutive of either the treasury stock method or the two-class method to determine the weighted-average number of outstanding common shares. In addition, the Company had 1,266,000 and 788,000 weighted-average equity awards outstanding for the three months ended March 31, 2020 and 2019, respectively. |
Accounting Policies and Basis_3
Accounting Policies and Basis of Presentation Accounting Policies and Basis of Presentation (Details) - Accounting Standards Update 2016-13 - USD ($) $ in Millions | Mar. 31, 2020 | Jan. 01, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative period adjustment, less than | $ 0.1 | |
Allowance for doubtful accounts | $ 7.9 | $ 9.4 |
Revenue Recognition (Details)
Revenue Recognition (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Payment terms | 30 days |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect to retained earnings from change in accounting principle | $ (610.1) | $ (607.4) | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect to retained earnings from change in accounting principle | $ 0.1 |
Leases - Operating and Finance
Leases - Operating and Finance Leases by Balance Sheets Location (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease assets | $ 49.7 | $ 53.7 |
Finance lease assets | 5.9 | 5.8 |
Total leased assets | 55.6 | 59.5 |
Current liabilities: | ||
Current operating lease liabilities | 9.5 | 12.8 |
Current finance lease liabilities | 1.7 | 1.1 |
Noncurrent liabilities: | ||
Other noncurrent operating lease liabilities | 40.4 | 41 |
Other noncurrent finance lease liabilities | 5.3 | 6.2 |
Total lease liabilities | $ 56.9 | $ 61.1 |
Leases - Operating and Financ_2
Leases - Operating and Finance Leases by Income Statement Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Amortization of lease assets | $ 0.5 | $ 0.3 |
Interest on lease liabilities | 0.1 | 0.2 |
Operating lease cost | 4.6 | 4.8 |
Variable lease cost | 5.1 | 6.1 |
Net lease cost | $ 10.3 | $ 11.4 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases, After Adoption of 842 | ||
Remainder of 2020 | $ 8.7 | $ 13 |
2021 | 10.1 | 10 |
2022 | 7.5 | 7.5 |
2023 | 6.2 | 6.3 |
2024 | 5.3 | 5.3 |
After 2024 | 22.4 | 22.8 |
Total lease payments | 60.2 | 64.9 |
Less: Interest | (10.3) | (11.1) |
Present value of lease liabilities | 49.9 | 53.8 |
Finance Leases, After Adoption of 842 | ||
Remainder of 2020 | 1.6 | 1.6 |
2021 | 1.6 | 1.3 |
2022 | 0.9 | 1.1 |
2023 | 0.9 | 1.1 |
2024 | 0.9 | 1.1 |
After 2024 | 2.8 | 3.3 |
Total lease payments | 8.7 | 9.5 |
Less: Interest | (1.7) | (2.2) |
Present value of lease liabilities | 7 | 7.3 |
Total, After Adoption of 842 | ||
Remainder of 2020 | 10.3 | 14.6 |
2021 | 11.7 | 11.3 |
2022 | 8.4 | 8.6 |
2023 | 7.1 | 7.4 |
2024 | 6.2 | 6.4 |
After 2024 | 25.2 | 26.1 |
Total lease payments | 68.9 | 74.4 |
Less: Interest | (12) | (13.3) |
Present value of lease liabilities | $ 56.9 | $ 61.1 |
Leases - Schedule of Lease Term
Leases - Schedule of Lease Terms and Discount Rates (Details) | Mar. 31, 2020 | Dec. 31, 2019 |
Weighted Average Lease Term [Abstract] | ||
Operating leases | 7 years 8 months 12 days | 7 years 8 months 12 days |
Finance leases | 6 years 2 months 12 days | 7 years 2 months 12 days |
Weighted Average Discount Rate [Abstract] | ||
Operating leases | 4.30% | 4.30% |
Finance leases | 7.10% | 7.60% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 4.5 | $ 4.9 |
Operating cash flows from finance leases | 0.1 | 0.2 |
Financing cash flows from finance leases | 0.5 | 0.3 |
Leased assets obtained in exchange for new operating lease liabilities | 1 | 2.4 |
Leased assets obtained in exchange for new finance lease liabilities | $ 1.2 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 185.6 | $ 235.3 |
Raw materials and supplies | 68.6 | 76.2 |
Total inventories | $ 254.2 | $ 311.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,917.6 | $ 1,971 |
Less accumulated depreciation and depletion | (963.8) | (940.2) |
Property, plant and equipment, net | 953.8 | 1,030.8 |
Land, buildings and structures, and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 578.3 | 596 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 974.8 | 1,001.9 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 62.4 | 60.7 |
Mineral interests | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 165.9 | 171.1 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 136.2 | $ 141.3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Aggregate amortization expense | $ 3.2 | $ 3.6 | |
Goodwill | 274.7 | $ 343 | |
Other | |||
Goodwill [Line Items] | |||
Goodwill | 5.8 | 6 | |
Goodwill - Plant Nutrition North America Segment | Operating Segments | |||
Goodwill [Line Items] | |||
Goodwill | 50.5 | 55.4 | |
Goodwill - Plant Nutrition South America Segment | Operating Segments | |||
Goodwill [Line Items] | |||
Goodwill | $ 218.4 | $ 281.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | ||||||
Increase to tax expense from settlement | $ 5.3 | |||||
Sales increase | $ 106.1 | $ 85.7 | ||||
Tax Year 2007 Through 2016 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Intercompany cash payments for tax settlements | 85.7 | |||||
Tax Year 2013 Through 2021 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Intercompany cash payments for tax settlements | $ 106.1 | |||||
Tax refund received | $ 55 | |||||
Foreign Tax Authority | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | 14.8 | 18.8 | ||||
Foreign Tax Authority | NOL carryforwards expire beginning in 2033 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | 1.2 | 1.7 | ||||
Foreign Tax Authority | NOL carryforwards expire beginning in 2027 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | 0.2 | 0.3 | ||||
Foreign Tax Authority | Tax Year 2007 Through 2016 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Payments for income tax settlements | $ 17.5 | |||||
Foreign Tax Authority | Tax Year 2013 Through 2021 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Payments for income tax settlements | $ 29.9 | |||||
Foreign Tax Authority | Tax Year 2013 Through 2021 | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax liability (refund) from settlement | $ (1.3) | |||||
Foreign Tax Authority | Canadian Tax Authority | ||||||
Income Tax Disclosure [Line Items] | ||||||
Total reassessments including interest | 120.4 | |||||
Amount of security posted in the form of a performance bond | 89.6 | |||||
Amount of security posted in the form of cash | 34.8 | |||||
Foreign Tax Authority | Canadian Tax Authority | Tax Year 2007 Through 2016 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Increase to tax expense from settlement | $ 13.8 | |||||
U.S. Federal | Tax Year 2007 Through 2016 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax refund received | $ 21.4 | |||||
U.S. Federal | Tax Year 2007 Through 2016 | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax liability (refund) from settlement | (1.6) | |||||
U.S. Federal | Tax Year 2013 Through 2021 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax refund received | $ 59.2 | |||||
U.S. Federal | Tax Year 2013 Through 2021 | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Tax liability (refund) from settlement | $ 2.4 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,307.8 | $ 1,430.8 |
Less unamortized debt issuance costs | (14) | (14.8) |
Total debt | 1,293.8 | 1,416 |
Less current portion | (40.1) | (52.1) |
Long-term debt | 1,253.7 | 1,363.9 |
Term Loan due January 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 397.5 | 400 |
6.75% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 500 | 500 |
Interest rate stated percentage | 6.75% | |
3.7% Banco Itaú loan due March 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | 15.4 |
Interest rate stated percentage | 3.70% | |
Banco Santander loan due October 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 12.5 | 16.2 |
Banco Itaú loan due February 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 9.4 | 0 |
Banco Rabobank loan due July 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 13.5 | 17.4 |
Banco Santander loan due September 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 15.4 | 19.9 |
Banco do Brasil loan due September 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 9.6 | 12.4 |
Banco Rabobank loan due November 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 13.5 | 17.4 |
Banco Santander loan due December 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 11.6 | 14.9 |
Banco Votorantim loan due February 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 7.7 | 0 |
Banco Santander loan due March 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 2.9 | 0 |
Financiadora de Estudos e Projetos loan due November 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 5.2 | 7.2 |
Revolving Credit Facility due January 2025 | Revolving Credit Facility due January 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 59 | 160 |
Senior Notes | 4.875% Senior Notes due July 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 250 | $ 250 |
Interest rate stated percentage | 4.875% | 4.875% |
Senior Notes | 6.75% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate stated percentage | 6.75% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)loan | |
Debt Instrument [Line Items] | |
Amount of receivables sold | $ 3,400,000 |
Proceeds from sale of receivable | $ 3,300,000 |
Amount of receivables liable for (as a percent) | 20.00% |
Amount of receivables liable for | $ 700,000 |
Certificado de Deposito Interbancario (CDI) | |
Debt Instrument [Line Items] | |
Effective interest rate on outstanding debt (as a percent) | 5.69% |
Brazilian Reais-denominated Loans | |
Debt Instrument [Line Items] | |
Number of debt instruments | loan | 3 |
Face amount | $ 20,000,000 |
Number of loans denominated in foreign currency | loan | 2 |
Euro-Denominated Loans | |
Debt Instrument [Line Items] | |
Number of loans denominated in foreign currency | loan | 1 |
Minimum | Brazilian Reais-denominated Loans | Certificado de Deposito Interbancario (CDI) | |
Debt Instrument [Line Items] | |
Variable rate, percentage of reference rate | 143.00% |
Maximum | Brazilian Reais-denominated Loans | Certificado de Deposito Interbancario (CDI) | |
Debt Instrument [Line Items] | |
Variable rate, percentage of reference rate | 150.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Maximum exposure for other labor matters | $ 18 | $ 25 |
Produquímica | ||
Loss Contingencies [Line Items] | ||
Contingent liabilities assumed | 3.9 | 5.6 |
Brazilian Tax Litigation and Assessments | ||
Loss Contingencies [Line Items] | ||
Amount of potential payments | $ 7.9 | $ 15.8 |
Operating Segments (Details)
Operating Segments (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)Businesssegment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Segment Reporting Information [Abstract] | |||
Sales | $ 413.9 | $ 403.7 | |
Operating earnings (loss) | 44.2 | 33.2 | |
Depreciation, depletion and amortization | 33.1 | 35 | |
Total assets (as of end of period) | 2,110.8 | 2,308.6 | $ 2,443.2 |
United States | |||
Segment Reporting Information [Abstract] | |||
Sales | 257.9 | 238.3 | |
Canada | |||
Segment Reporting Information [Abstract] | |||
Sales | 77.4 | 87.4 | |
Brazil | |||
Segment Reporting Information [Abstract] | |||
Sales | 62.1 | 55.7 | |
United Kingdom | |||
Segment Reporting Information [Abstract] | |||
Sales | 11.8 | 17.3 | |
Other | |||
Segment Reporting Information [Abstract] | |||
Sales | 4.7 | 5 | |
Shipping and handling cost | |||
Segment Reporting Information [Abstract] | |||
Shipping and handling cost | 101.8 | 112.9 | |
Highway Deicing Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 215.1 | 218.7 | |
Consumer & Industrial Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 72.7 | 87.7 | |
SOP and Specialty Plant Nutrients | |||
Segment Reporting Information [Abstract] | |||
Sales | 102 | 74.3 | |
Industrial Chemicals | |||
Segment Reporting Information [Abstract] | |||
Sales | 21.8 | 22.6 | |
Operating Segments | Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 287.8 | 306.4 | |
Operating earnings (loss) | 56.9 | 52.3 | |
Depreciation, depletion and amortization | 14.6 | 15.3 | |
Total assets (as of end of period) | 956.5 | 889.7 | |
Operating Segments | Salt | Shipping and handling cost | |||
Segment Reporting Information [Abstract] | |||
Shipping and handling cost | 89.8 | 103.7 | |
Operating Segments | Salt | Highway Deicing Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 215.1 | 218.7 | |
Operating Segments | Salt | Consumer & Industrial Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 72.7 | 87.7 | |
Operating Segments | Salt | SOP and Specialty Plant Nutrients | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Salt | Industrial Chemicals | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Salt | Eliminations & Other | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Plant Nutrition North America | |||
Segment Reporting Information [Abstract] | |||
Sales | 60.6 | 37.2 | |
Operating earnings (loss) | 5.2 | (1.6) | |
Depreciation, depletion and amortization | 10.5 | 11.6 | |
Total assets (as of end of period) | 552.3 | 594.1 | |
Operating Segments | Plant Nutrition North America | Shipping and handling cost | |||
Segment Reporting Information [Abstract] | |||
Shipping and handling cost | 9 | 6 | |
Operating Segments | Plant Nutrition North America | Highway Deicing Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Plant Nutrition North America | Consumer & Industrial Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Plant Nutrition North America | SOP and Specialty Plant Nutrients | |||
Segment Reporting Information [Abstract] | |||
Sales | 60.9 | 37.7 | |
Operating Segments | Plant Nutrition North America | Industrial Chemicals | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Plant Nutrition North America | Eliminations & Other | |||
Segment Reporting Information [Abstract] | |||
Sales | $ (0.3) | (0.5) | |
Operating Segments | Plant Nutrition South America | |||
Segment Reporting Information [Line Items] | |||
Number of primary businesses | Business | 2 | ||
Segment Reporting Information [Abstract] | |||
Sales | $ 62.8 | 57.7 | |
Operating earnings (loss) | 0.3 | (2.6) | |
Depreciation, depletion and amortization | 5 | 5.6 | |
Total assets (as of end of period) | 561 | 710.6 | |
Operating Segments | Plant Nutrition South America | Shipping and handling cost | |||
Segment Reporting Information [Abstract] | |||
Shipping and handling cost | 3 | 3.2 | |
Operating Segments | Plant Nutrition South America | Highway Deicing Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Plant Nutrition South America | Consumer & Industrial Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Operating Segments | Plant Nutrition South America | SOP and Specialty Plant Nutrients | |||
Segment Reporting Information [Abstract] | |||
Sales | 41.1 | 36.6 | |
Operating Segments | Plant Nutrition South America | Industrial Chemicals | |||
Segment Reporting Information [Abstract] | |||
Sales | 21.8 | 22.6 | |
Operating Segments | Plant Nutrition South America | Eliminations & Other | |||
Segment Reporting Information [Abstract] | |||
Sales | (0.1) | (1.5) | |
Corporate & Other | |||
Segment Reporting Information [Abstract] | |||
Sales | 2.7 | 2.4 | |
Operating earnings (loss) | (18.2) | (14.9) | |
Depreciation, depletion and amortization | 3 | 2.5 | |
Total assets (as of end of period) | 41 | 114.2 | |
Corporate & Other | Shipping and handling cost | |||
Segment Reporting Information [Abstract] | |||
Shipping and handling cost | 0 | 0 | |
Corporate & Other | Highway Deicing Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Corporate & Other | Consumer & Industrial Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Corporate & Other | SOP and Specialty Plant Nutrients | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Corporate & Other | Industrial Chemicals | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Corporate & Other | Eliminations & Other | |||
Segment Reporting Information [Abstract] | |||
Sales | 2.7 | 2.4 | |
Intersegment Eliminations | |||
Segment Reporting Information [Abstract] | |||
Sales | (0.4) | (2) | |
Intersegment Eliminations | Eliminations & Other | |||
Segment Reporting Information [Abstract] | |||
Sales | 2.3 | 0.4 | |
Intersegment Eliminations | Salt | |||
Segment Reporting Information [Abstract] | |||
Sales | 0 | 0 | |
Intersegment Eliminations | Plant Nutrition North America | |||
Segment Reporting Information [Abstract] | |||
Sales | 0.3 | 0.5 | |
Intersegment Eliminations | Plant Nutrition South America | |||
Segment Reporting Information [Abstract] | |||
Sales | $ 0.1 | $ 1.5 |
Stockholders' Equity and Equi_3
Stockholders' Equity and Equity Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Reissued shares of treasury stock (in shares) | 3,377 | |||
Treasury stock reissued (in shares) | 32,197 | |||
Shares withheld related to vesting of restricted stock units (in shares) | 1,479 | |||
Fair value of stock withheld related to vesting of restricted stock units | $ 0.1 | |||
Tax deficiency from equity compensation awards recorded as an increase to income tax expense | 0.2 | |||
Compensation expense recorded during period pursuant to stock-based compensation plans | 2.9 | $ 1.1 | ||
Compensation expense to be paid in cash | $ 0.5 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Options expiration period | 7 years | |||
Number of shares available from conversion (in shares) | 1 | |||
Reissued shares of treasury stock (in shares) | 0 | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available from conversion (in shares) | 1 | |||
Service period | 3 years | |||
Reissued shares of treasury stock (in shares) | 4,517 | |||
TSR PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period of PSUs | 3 years | |||
TSR PSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares earned | 0.00% | |||
TSR PSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares earned | 200.00% | |||
ROIC PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period of PSUs | 3 years | |||
ROIC PSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares earned | 0.00% | |||
ROIC PSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares earned | 200.00% | |||
2015 Incentive Award Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 3,000,000 |
Stockholders' Equity and Equi_4
Stockholders' Equity and Equity Instruments - Schedule of Fair Value and Inputs Used to Calculate Fair Value for Options Granted (Details) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Equity [Abstract] | |
Fair value of options granted (in dollars per share) | $ 10.91 |
Exercise price (in dollars per share) | $ 58.91 |
Expected term (years) | 4 years 9 months |
Expected volatility | 29.30% |
Dividend yield | 3.50% |
Risk-free rate of return | 1.60% |
Stockholders' Equity and Equi_5
Stockholders' Equity and Equity Instruments - Stock-Based Compensation Activity (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Stock Options | |
Number | |
Outstanding at beginning of period (in shares) | 887,867 |
Granted (in shares) | 94,945 |
Cancelled/expired (in shares) | (64,666) |
Outstanding at end of period (in shares) | 918,146 |
Weighted-average exercise price | |
Weighted-average exercise price at beginning of period (in dollars per share) | $ / shares | $ 64.21 |
Weighted-average exercise price, granted (in dollars per share) | $ / shares | 58.91 |
Weighted-average exercise price, cancelled/expired (in dollars per share) | $ / shares | 72.67 |
Weighted-average exercise price at end of period (in dollars per share) | $ / shares | $ 63.07 |
RSUs | |
Number | |
Outstanding at beginning of period (in shares) | 217,413 |
Granted (in shares) | 83,337 |
Released from restriction (in shares) | (4,517) |
Cancelled/expired (in shares) | (27,981) |
Outstanding at end of period (in shares) | 268,252 |
Weighted-average fair value | |
Weighted-average fair value at beginning of period (in dollars per share) | $ / shares | $ 52.07 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 58.92 |
Weighted-average fair value, released from restriction (in dollars per share) | $ / shares | 39.75 |
Weighted-average fair value, cancelled/expired (in dollars per share) | $ / shares | 50.18 |
Weighted-average fair value at end of period (in dollars per share) | $ / shares | $ 54.61 |
PSUs | |
Number | |
Outstanding at beginning of period (in shares) | 179,397 |
Granted (in shares) | 69,635 |
Cancelled/expired (in shares) | (26,899) |
Outstanding at end of period (in shares) | 222,133 |
Weighted-average fair value | |
Weighted-average fair value at beginning of period (in dollars per share) | $ / shares | $ 61.43 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 82.38 |
Weighted-average fair value, cancelled/expired (in dollars per share) | $ / shares | 67.55 |
Weighted-average fair value at end of period (in dollars per share) | $ / shares | $ 67.26 |
PSU at grant date (in shares per unit) | 1 |
Stockholders' Equity and Equi_6
Stockholders' Equity and Equity Instruments - Components and Changes In AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 529.6 | $ 540.2 |
Other comprehensive income (loss) before reclassifications | (170.8) | 14.7 |
Amounts reclassified from accumulated other comprehensive loss | (2.4) | 0 |
Net current period other comprehensive income | (173.2) | 14.7 |
Ending balance | 361.5 | 538.8 |
Gains (loss) on foreign exchange of intercompany notes of long-term nature | (75.5) | 2.3 |
Gains and (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (0.6) | (0.7) |
Other comprehensive income (loss) before reclassifications | 2.7 | 0.2 |
Amounts reclassified from accumulated other comprehensive loss | (2.6) | (0.1) |
Net current period other comprehensive income | 0.1 | 0.1 |
Ending balance | (0.5) | (0.6) |
Defined Benefit Pension | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (6.9) | (4.5) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.1 |
Net current period other comprehensive income | 0.2 | 0.1 |
Ending balance | (6.7) | (4.4) |
Foreign Currency | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (184.6) | (205.7) |
Other comprehensive income (loss) before reclassifications | (173.5) | 14.5 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income | (173.5) | 14.5 |
Ending balance | (358.1) | (191.2) |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (192.1) | (210.9) |
Ending balance | $ (365.3) | $ (196.2) |
Stockholders' Equity and Equi_7
Stockholders' Equity and Equity Instruments - Reclassifications From AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (19) | $ (16.2) |
Income tax expense | 11.7 | 4.9 |
Net earnings | 27.6 | 7.6 |
Product cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Product cost | (224.8) | (218.2) |
Amount Reclassified from AOCL | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | (2.4) | 0 |
Amount Reclassified from AOCL | Gains (losses) on cash flow hedges: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | 1.3 | 0.1 |
Net earnings | (2.6) | (0.1) |
Amount Reclassified from AOCL | Amortization of defined benefit pension: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net earnings | 0.2 | 0.1 |
Amount Reclassified from AOCL | Amortization of defined benefit pension: | Product cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Product cost | 0.2 | 0.1 |
Natural gas instruments | Amount Reclassified from AOCL | Gains (losses) on cash flow hedges: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Product cost | (0.3) | (0.1) |
Foreign currency contracts | Amount Reclassified from AOCL | Gains (losses) on cash flow hedges: | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense | $ (3.6) | $ (0.1) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) MMBTU in Millions, $ in Millions | Mar. 31, 2020USD ($)MMBTU | Dec. 31, 2019MMBTU | Mar. 31, 2020USD ($) |
Natural gas instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount (in MMBtus) | MMBTU | 2.8 | 2.8 | |
Net losses to be reclassified from accumulated other comprehensive loss to earnings during the next 12 months | $ (0.6) | ||
Natural gas instruments | Derivatives Designated as Hedging Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Percent of forecasted usage to be hedged | 90.00% | 90.00% | |
Maximum period which the Company hedges in advance of forecasted purchase | 36 months | ||
Foreign currency contracts | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | $ 89.9 | $ 89.9 | |
Loss on foreign exchange derivative not designated as hedging instruments | 5.3 | ||
Swap contracts | Derivatives Designated as Hedging Instruments | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 9.4 | 9.4 | |
Gain (loss) expected to be reclassified during the next twelve months | $ 1.7 | $ 1.7 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Hedged Items (Details) $ in Millions | Mar. 31, 2020USD ($)counterparty | Dec. 31, 2019USD ($)counterparty |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Netting of contracts in a receivable position against contracts in payable position | $ 0.3 | $ 0.4 |
Number of counterparties | counterparty | 2 | 2 |
Swap contracts | ||
Derivatives, Fair Value [Line Items] | ||
Number of counterparties | counterparty | 1 | 2 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 2 | $ 3.2 |
Liability Derivatives | 1 | 1 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.3 | 0.3 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0.9 | 0.8 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0.1 |
Derivatives Designated as Hedging Instruments | Commodity contracts | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0.1 | 0.2 |
Derivatives Designated as Hedging Instruments | Swap contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1.7 | 2.8 |
Derivatives Designated as Hedging Instruments | Swap contracts | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Estimated Fair Values (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Mutual Fund Investments, Concentration Risk | Common Stock, Large Cap US Companies | ||
Liability Class: | ||
Concentration risk percentage | 30.00% | 30.00% |
Mutual Fund Investments, Concentration Risk | Common Stock of Small to Mid Cap US Companies | ||
Liability Class: | ||
Concentration risk percentage | 10.00% | 15.00% |
Mutual Fund Investments, Concentration Risk | Common Stock, International Companies | ||
Liability Class: | ||
Concentration risk percentage | 5.00% | 5.00% |
Mutual Fund Investments, Concentration Risk | Bond Funds | ||
Liability Class: | ||
Concentration risk percentage | 20.00% | 10.00% |
Mutual Fund Investments, Concentration Risk | Short-Term Investments | ||
Liability Class: | ||
Concentration risk percentage | 10.00% | 20.00% |
Mutual Fund Investments, Concentration Risk | Blended Funds | ||
Liability Class: | ||
Concentration risk percentage | 25.00% | 20.00% |
Fair Value, Measurements, Recurring | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | $ 1.3 | $ 1.4 |
Derivatives – foreign currency contracts, net | 1.7 | 2.8 |
Total Assets | 3 | 4.2 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | (1.3) | (1.4) |
Derivatives – natural gas instruments, net | (0.7) | (0.6) |
Total Liabilities | (2) | (2) |
Fair Value, Measurements, Recurring | Level One | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | 1.3 | 1.4 |
Derivatives – foreign currency contracts, net | 0 | 0 |
Total Assets | 1.3 | 1.4 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | (1.3) | (1.4) |
Derivatives – natural gas instruments, net | 0 | 0 |
Total Liabilities | (1.3) | (1.4) |
Fair Value, Measurements, Recurring | Level Two | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | 0 | 0 |
Derivatives – foreign currency contracts, net | 1.7 | 2.8 |
Total Assets | 1.7 | 2.8 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | 0 | 0 |
Derivatives – natural gas instruments, net | (0.7) | (0.6) |
Total Liabilities | (0.7) | (0.6) |
Fair Value, Measurements, Recurring | Level Three | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | 0 | 0 |
Derivatives – foreign currency contracts, net | 0 | 0 |
Total Assets | 0 | 0 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | 0 | 0 |
Derivatives – natural gas instruments, net | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
6.75% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate stated percentage | 6.75% | |
Senior Notes | 4.875% Senior Notes due July 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate stated percentage | 4.875% | 4.875% |
Fair value of senior notes | $ 235,000,000 | $ 249,100,000 |
Aggregate principal amount due at maturity | $ 250,000,000 | 250,000,000 |
Senior Notes | 6.75% Senior Notes due December 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate stated percentage | 6.75% | |
Fair value of senior notes | $ 451,400,000 | 530,600,000 |
Senior Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Debt fair value amount | 500,000,000 | 500,000,000 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount due at maturity | 456,500,000 | 560,000,000 |
Fair value of credit agreement debt | 451,300,000 | 552,800,000 |
Fair Value, Measurements, Recurring | ||
Debt Instrument [Line Items] | ||
Mutual fund investments in a non-qualified savings plan | 1,300,000 | 1,400,000 |
Fair Value, Measurements, Recurring | Level One | ||
Debt Instrument [Line Items] | ||
Mutual fund investments in a non-qualified savings plan | $ 1,300,000 | $ 1,400,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net earnings | $ 27.6 | $ 7.6 |
Less: net earnings allocated to participating securities | (0.5) | (0.2) |
Net earnings available to common shareholders | $ 27.1 | $ 7.4 |
Denominator (in thousands): | ||
Weighted-average common shares outstanding, shares for basic earnings per share (in shares) | 33,892,000 | 33,874,000 |
Weighted-average awards outstanding (in shares) | 0 | 0 |
Shares for diluted earnings per share (in shares) | 33,892,000 | 33,874,000 |
Net earnings per common share, basic (in dollars per share) | $ 0.80 | $ 0.22 |
Net earnings per common share, diluted (in dollars per share) | $ 0.80 | $ 0.22 |
Participating securities (in shares) | 412,000 | 233,000 |
Weighted anti-dilutive awards outstanding (in shares) | 1,266,000 | 788,000 |
Uncategorized Items - cmp-20200
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (100,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (100,000) |