Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 22, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34581 | ||
Entity Registrant Name | KRATON CORP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-0411521 | ||
Entity Address, Address Line One | 15710 John F. Kennedy Blvd. | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77032 | ||
City Area Code | 281 | ||
Local Phone Number | 504-4700 | ||
Title of 12(b) Security | Common Stock, par value $0.01 | ||
Trading Symbol | KRA | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 390,823,903 | ||
Entity Common Stock, Shares Outstanding | 31,894,023 | ||
Documents Incorporated by Reference | Portions of Kraton Corporation's proxy statement for the 2021 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001321646 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 85,901 | $ 35,033 |
Receivables, net of allowances of $598 and $434 | 180,258 | 169,603 |
Inventories of products | 318,885 | 332,457 |
Inventories of materials and supplies | 34,164 | 32,211 |
Prepaid expense | 11,844 | 6,991 |
Other current assets | 15,338 | 22,385 |
Current assets held for sale | 0 | 51,356 |
Total current assets | 646,390 | 650,036 |
Property, plant, and equipment, less accumulated depreciation of $732,279 and $639,197 | 942,703 | 925,940 |
Goodwill | 375,061 | 772,418 |
Intangible assets, less accumulated amortization of $330,070 and $285,819 | 294,734 | 325,877 |
Investment in unconsolidated joint venture | 12,723 | 11,971 |
Deferred income taxes | 83,534 | 8,863 |
Long-term operating lease assets, net | 84,042 | 85,003 |
Other long-term assets | 21,770 | 25,219 |
Long-term assets held for sale | 0 | 27,058 |
Total assets | 2,460,957 | 2,832,385 |
Current liabilities: | ||
Current portion of long-term debt | 72,347 | 53,139 |
Accounts payable-trade | 176,229 | 168,541 |
Other payables and accruals | 167,364 | 112,645 |
Due to related party | 17,147 | 17,470 |
Current liabilities held for sale | 0 | 14,849 |
Total current liabilities | 433,087 | 366,644 |
Long-term debt, net of current portion | 865,516 | 1,311,486 |
Deferred income taxes | 125,559 | 125,240 |
Long-term operating lease liabilities | 67,898 | 66,624 |
Deferred income | 151,329 | 11,049 |
Other long-term liabilities | 168,566 | 161,911 |
Long-term liabilities held for sale | 0 | 3 |
Total liabilities | 1,811,955 | 2,042,957 |
Commitments and contingencies (note 12) | ||
Kraton stockholders’ equity: | ||
Preferred stock, $0.01 par value; 100,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 500,000 shares authorized; 31,873 shares issued and outstanding at December 31, 2020; 31,751 shares issued and outstanding at December 31, 2019 | 319 | 318 |
Additional paid in capital | 401,445 | 392,208 |
Retained earnings | 240,464 | 464,712 |
Accumulated other comprehensive loss | (37,865) | (105,795) |
Total Kraton stockholders’ equity | 604,363 | 751,443 |
Noncontrolling interest | 44,639 | 37,985 |
Total equity | 649,002 | 789,428 |
Total liabilities and equity | $ 2,460,957 | $ 2,832,385 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables, allowances | $ 598 | $ 434 |
Less accumulated depreciation | 732,279 | 639,197 |
Intangible assets, accumulated amortization | $ 330,070 | $ 285,819 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 31,873,000 | 31,751,000 |
Common stock, shares outstanding (in shares) | 31,873,000 | 31,751,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 1,563,150 | $ 1,804,436 | $ 2,011,675 |
Cost of goods sold | 1,165,279 | 1,390,007 | 1,431,069 |
Gross profit | 397,871 | 414,429 | 580,606 |
Operating expenses: | |||
Research and development | 40,743 | 41,073 | 41,296 |
Selling, general, and administrative | 161,944 | 149,800 | 153,897 |
Depreciation and amortization | 126,022 | 136,171 | 141,410 |
Impairment of goodwill | 400,000 | 0 | 0 |
Gain on insurance proceeds | 0 | (32,850) | (8,900) |
Loss on disposal of fixed assets | 750 | 773 | 2,169 |
Operating income (loss) | (331,588) | 119,462 | 250,734 |
Other income (expense) | 995 | 3,339 | (3,472) |
Disposition and exit of business activities | 175,189 | 0 | 0 |
Loss on extinguishment of debt | (40,843) | (3,521) | (79,866) |
Earnings of unconsolidated joint venture | 457 | 506 | 471 |
Interest expense, net | (57,930) | (75,782) | (93,772) |
Income (loss) before income taxes | (253,720) | 44,004 | 74,095 |
Income tax benefit (expense) | 32,034 | 11,813 | (3,574) |
Consolidated net income (loss) | (221,686) | 55,817 | 70,521 |
Net income attributable to noncontrolling interest | (3,916) | (4,512) | (3,506) |
Net income (loss) attributable to Kraton | $ (225,602) | $ 51,305 | $ 67,015 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (7.08) | $ 1.61 | $ 2.10 |
Diluted (in dollars per share) | $ (7.08) | $ 1.60 | $ 2.08 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 31,746 | 31,581 | 31,416 |
Diluted (in shares) | 31,746 | 31,881 | 31,789 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) attributable to Kraton | $ (225,602) | $ 51,305 | $ 67,015 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of tax of $0 | 36,431 | (5,296) | (14,439) |
Reclassification of foreign currency translation adjustments from disposition and exit of business activities, net of tax of $0 | 66,533 | 0 | 0 |
Unrealized gain (loss) on cash flow hedges, net of tax expense of $458, benefit of $1,165, and expense of $979, respectively | 1,387 | (6,311) | 1,368 |
Reclassification of (gain) loss on cash flow hedge, net of tax benefit of $293 and expense of $587, respectively | 1,002 | 0 | (1,996) |
Unrealized gain (loss) on net investment hedge, net of tax benefit of $6,865, expense of $1,379 and $2,378, respectively | (25,881) | 7,471 | 8,079 |
Reclassification of gain on net investment hedge, net of tax expense of $0 | (899) | 0 | 0 |
(Increase) decrease in benefit plans liability, net of tax benefit of $3,702 and $2,117, and expense of $3,202, respectively | (10,643) | (9,960) | 13,584 |
Other comprehensive income (loss), net of tax | 67,930 | (14,096) | 6,596 |
Comprehensive income (loss) attributable to Kraton | (157,672) | 37,209 | 73,611 |
Comprehensive income attributable to noncontrolling interest | 6,654 | 5,524 | 2,423 |
Consolidated comprehensive income (loss) | $ (151,018) | $ 42,733 | $ 76,034 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax effect | $ 0 | $ 0 | $ 0 |
Reclassification of foreign currency translation adjustments, tax effect | 0 | 0 | 0 |
Unrealized gain on cash flow hedges, tax effect | (458) | 1,165 | 979 |
Reclassification of (gain) loss on cash flow hedge, tax | 293 | (587) | |
Unrealized gain on net investment hedge, tax (benefit) | (6,865) | 1,379 | 2,378 |
Reclassification of gain on net investment hedge, tax expense | 0 | 0 | 0 |
(Increase) decrease in pension liability, (tax) benefit | $ (3,702) | $ 2,117 | $ 3,202 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Kraton Equity | Total Kraton EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201609Member | |||||||||
Beginning Balance at Dec. 31, 2017 | $ 666,519 | $ 0 | $ 636,481 | $ 0 | $ 316 | $ 377,957 | $ 356,503 | $ 0 | $ (98,295) | $ 30,038 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 70,521 | 67,015 | 67,015 | 3,506 | ||||||
Other comprehensive income (loss) | 5,513 | 6,596 | 6,596 | (1,083) | ||||||
Retired treasury stock from employee tax withholdings | (6,189) | (6,189) | (2) | (3,266) | (2,921) | |||||
Exercise of stock options | 3,133 | 3,133 | 2 | 3,131 | ||||||
Non-cash compensation related to equity awards | 8,102 | 8,102 | 3 | 8,099 | ||||||
Ending Balance at Dec. 31, 2018 | 747,599 | 715,138 | 319 | 385,921 | 420,597 | (91,699) | 32,461 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 55,817 | 51,305 | 51,305 | 4,512 | ||||||
Other comprehensive income (loss) | (13,084) | (14,096) | (14,096) | 1,012 | ||||||
Retired treasury stock from employee tax withholdings | (2,821) | (2,821) | (1,431) | (1,390) | ||||||
Canceled stock from share repurchases | (10,000) | (10,000) | (3) | (4,197) | (5,800) | |||||
Exercise of stock options | 2,424 | 2,424 | 1 | 2,423 | ||||||
Non-cash compensation related to equity awards | 9,493 | 9,493 | 1 | 9,492 | ||||||
Ending Balance at Dec. 31, 2019 | 789,428 | 751,443 | 318 | 392,208 | 464,712 | (105,795) | 37,985 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (221,686) | (225,602) | (225,602) | 3,916 | ||||||
Other comprehensive income (loss) | 70,668 | 67,930 | 67,930 | 2,738 | ||||||
Retired treasury stock from employee tax withholdings | (847) | (847) | (2,201) | 1,354 | ||||||
Exercise of stock options | 78 | 78 | 78 | |||||||
Non-cash compensation related to equity awards | 11,361 | 11,361 | 1 | 11,360 | ||||||
Ending Balance at Dec. 31, 2020 | $ 649,002 | $ 604,363 | $ 319 | $ 401,445 | $ 240,464 | $ (37,865) | $ 44,639 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Consolidated net income (loss) | $ (221,686) | $ 55,817 | $ 70,521 |
Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 126,022 | 136,171 | 141,410 |
Lease amortization | 24,488 | 23,093 | |
Amortization of debt premium and original issue discount | 148 | 1,064 | 2,202 |
Amortization of debt issuance costs | 3,045 | 4,654 | 5,771 |
Amortization of deferred income | (20,054) | 0 | 0 |
Loss on disposal of property, plant, and equipment | 750 | 773 | 2,169 |
Disposition and exit of business activities | (175,189) | 0 | 0 |
Loss on extinguishment of debt | 40,843 | 3,521 | 79,866 |
Impairment of goodwill | 400,000 | 0 | 0 |
(Earnings) loss from unconsolidated joint venture, net of dividends received | 50 | (62) | 74 |
Deferred income tax benefit | (56,114) | (159) | (26,487) |
Release of uncertain tax positions | (2,445) | (18,309) | 0 |
Gain on insurance proceeds for capital expenditures | 0 | (3,948) | 0 |
Share-based compensation | 11,361 | 9,493 | 8,102 |
Decrease (increase) in: | |||
Accounts receivable | (563) | 5,848 | (7,841) |
Inventories of products, materials, and supplies | 18,234 | 46,533 | (58,077) |
Other assets | 483 | 10,986 | 12,304 |
Increase (decrease) in: | |||
Accounts payable-trade | 352 | (3,472) | 20,271 |
Other payables and accruals | 5,595 | (20,018) | (18,693) |
Other long-term liabilities | (2,900) | (13,401) | 13,742 |
Due to related party | (1,089) | (3,644) | 1,245 |
Net cash provided by operating activities | 151,331 | 234,940 | 246,579 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Kraton purchase of property, plant, and equipment | (73,893) | (103,688) | (100,122) |
KFPC purchase of property, plant, and equipment | (4,132) | (965) | (2,746) |
Purchase of software and other intangibles | (7,943) | (8,019) | (8,229) |
Insurance proceeds for capital expenditures | 0 | 3,948 | |
Cash proceeds from disposition and exit of business activities | 510,500 | 0 | 0 |
Net cash provided by (used in) investing activities | 424,532 | (108,724) | (111,097) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from debt | 477,000 | 57,941 | 732,540 |
Repayments of debt | (967,967) | (198,053) | (828,747) |
KFPC proceeds from debt | 71,949 | 34,240 | 24,918 |
KFPC repayments of debt | (90,577) | (59,700) | (52,947) |
Capital lease payments | (179) | (169) | |
Capital lease payments | (902) | ||
Purchase of treasury stock | (847) | (12,821) | (6,189) |
Proceeds from the exercise of stock options | 78 | 2,424 | 3,133 |
Settlement of interest rate swap | (1,295) | 0 | 2,584 |
Debt issuance costs | (9,095) | 0 | (11,113) |
Net cash used in financing activities | (520,933) | (176,138) | (136,723) |
Effect of exchange rate differences on cash | (4,062) | (936) | (1,920) |
Net increase (decrease) in cash and cash equivalents | 50,868 | (50,858) | (3,161) |
Cash and cash equivalents, beginning of period | 35,033 | 85,891 | 89,052 |
Cash and cash equivalents, end of period | 85,901 | 35,033 | 85,891 |
Supplemental disclosures during the period: | |||
Cash paid for income taxes, net of refunds received | 6,917 | 7,804 | 4,715 |
Cash paid for interest, net of capitalized interest | 66,757 | 56,407 | 106,838 |
Capitalized interest | 3,099 | 3,625 | 3,882 |
Supplemental non-cash disclosures increase (decrease) during the period: | |||
Property, plant, and equipment accruals | (9,785) | 2,277 | (1,891) |
Operating leases | $ 19,928 | $ 105,308 | $ 0 |
Description of Business, Basis
Description of Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Significant Accounting Policies | Description of Business, Basis of Presentation and Significant Accounting Policies Description of Business . We are a leading global specialty chemicals company that manufactures styrenic block copolymers (“SBCs”), specialty polymers, and high-value performance products primarily derived from pine wood pulping co-products. Our operations are managed through two operating segments: (i) Polymer segment and (ii) Chemical segment. Operating results for Arizona Chemical are included in the accompanying consolidated financial statements since the date of acquisition. Basis of Presentation . The accompanying consolidated financial statements are for us and our consolidated subsidiaries, each of which is a wholly-owned subsidiary, except our 50% investment in our joint venture, Kraton Formosa Polymers Corporation (“KFPC”), located in Mailiao, Taiwan. KFPC is a variable interest entity for which we have determined that we are the primary beneficiary and, therefore, have consolidated into our financial statements. Our 50% investment in our joint venture located in Kashima, Japan, is accounted for under the equity method of accounting. All significant intercompany transactions have been eliminated. Significant Accounting Policies . These financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to fairly present our results of operations and financial position. Use of Estimates . The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include: • the useful lives of long-lived assets; • allowances for doubtful accounts and sales returns; • valuation of goodwill; • the valuation of derivatives, deferred taxes, property, plant and equipment, inventory, share-based compensation; and deferred income; and • liabilities for employee benefit obligations, environmental matters, asset retirement obligations, income tax uncertainties, and other contingencies. Cash and Cash Equivalents . It is our policy to invest our excess cash in investment instruments whose value is not subject to market fluctuations, such as bank deposits or certificates of deposit. Other permitted investments include commercial paper of major U.S. corporations with ratings of A1 by Standard & Poor’s Ratings Group or P1 by Moody’s Investor Services, Inc., loan participations of major U.S. corporations with a short term credit rating of A1/P1 and direct obligations of the U.S. government or its agencies. We consider all investments having a remaining maturity, at the time of purchase, of three months or less to be cash equivalents. Receivables . Receivables are recorded at the invoiced amount once the performance obligation has been met and do not bear interest. The allowance for doubtful accounts represents our best estimate of the amount of probable credit losses in our existing receivables and is determined based on our assessment of the credit worthiness of individual customers, historical write-off experience, and global economic data. We review the allowance for doubtful accounts quarterly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have significant off-balance sheet credit exposure related to our customers. See Note 3 Revenue Recognition to the consolidated financial statements. Inventories of Products . Inventory values include all costs directly associated with manufacturing products and are stated at the lower of cost or net realizable value, primarily determined on a first-in, first-out basis. We evaluate the carrying cost of our inventory on a quarterly basis for this purpose. If the cost of the inventories exceeds their net realizable value, provisions are made for the difference between the cost and the net realizable value. See Note 7 Detail of Certain Balance Sheet Accounts to the consolidated financial statements. Derivative Instruments and Hedging Activities . We account for derivatives and hedging activities in accordance with ASC 815, Derivatives and Hedging, which requires entities to recognize all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. For all hedging relationships that qualify as derivatives under ASC 815, we formally document the hedging relationship and our risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. We designate net investment hedges as economic hedges of the certain net investment in foreign subsidiaries. The gain or loss on such hedging derivative instruments (or the foreign currency transaction gain or loss on the nonderivative hedging instrument) that is designated as, and is effective as, an economic hedge of the net investment in a foreign subsidiary is reported in the same manner as a translation adjustment to the extent it is effective. Any hedge ineffectiveness is recognized in earnings during the period incurred. We discontinue hedge accounting prospectively when we determine that the derivative is no longer effective, the derivative expires or is sold, terminated, or exercised, or the hedge is de-designated. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, we continue to carry the derivative at its fair value on the balance sheet and recognize any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, we discontinue hedge accounting and recognize immediately in earnings gains and losses that were accumulated in other comprehensive income (loss) related to the hedging relationship. See Note 10 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements. Property, Plant, and Equipment. Property, plant, and equipment are stated at cost, net of accumulated depreciation. Major renewals and improvements which extend the useful lives of equipment are capitalized. Repair and maintenance costs are expensed as incurred. Disposals are removed at carrying cost less accumulated depreciation with any resulting gain or loss reflected in earnings. We capitalize interest costs which are incurred as part of the cost of constructing major facilities and equipment. See Note 14 Industry Segment and Foreign Operations to the consolidated financial statements. Depreciation is recognized using the straight-line method over the following estimated useful lives: Machinery and equipment 20 years Building and land improvements 20 years Manufacturing control equipment 10 years Office equipment 5 years Research equipment and facilities 5 years Vehicles 5 years Computer hardware and information systems 3 years Major Maintenance Activities. Major maintenance is expensed as incurred. Goodwill. We record goodwill when the purchase price of an acquired business exceeds the fair value of the net identifiable assets acquired. Goodwill is allocated to the reporting unit level based on the estimated fair value at the date of acquisition. Goodwill was recorded as a result of the Arizona Chemical Acquisition and is recorded in the Chemical operating segment. Goodwill is tested for impairment at the reporting unit level annually or more frequently as deemed necessary. Our annual measurement date for testing impairment is October 1st. The assessment is performed in three steps. We assess qualitative factors, or step zero, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is more likely than not that an impairment indicator exists utilizing the qualitative method, we then utilize step one to test for impairment via estimating the fair value of our reporting units utilizing a combination of market and income approaches. This step one provides a fair value to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill. The estimated fair value of our reporting units are subject to a number of estimates, including discount rates, revenue growth rates, cash flow assumptions, and market information. If potential impairments are identified, we perform step two to measure the impairment loss through a full fair value allocation of the assets and liabilities of the reporting unit utilizing the acquisition method of accounting. During the third quarter of 2020, we performed an interim impairment test of goodwill as of September 30, 2020. As a result, we recorded a non-cash impairment charge of $400.0 million within the Chemical segment. The Company updated this assessment as of October 1, 2020 (our annual impairment date) utilizing a qualitative approach as outlined in ASC 350-20-35-38, and noted no impairment indicators during the fourth quarter of 2020. Therefore, the company’s annual assessment concluded that the fair value of the reporting unit exceeded the book value of the reporting unit, including goodwill, and thus there was no impairment recognized in the fourth quarter of 2020. For further discussion on the Company’s goodwill impairment see Note 14 Industry Segment and Foreign Operations . Asset Retirement Obligations (“ARO”). We have determined that we have contractual or regulatory requirements to decommission and perform other remediation for many of our manufacturing and research facilities upon retirement. We account for ARO’s pursuant to the provisions of ASC 410-20, Asset Retirement Obligations. ASC 410-20 requires us to record the fair value of an ARO as a liability in the period in which we have a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and/or normal use of the assets. The ARO is also capitalized as part of the carrying cost of the asset and is depreciated over the life of the asset. The recognition of an ARO requires us to make numerous estimates, assumptions, and judgments regarding such factors as the existence of a legal obligation for an ARO; estimated probabilities; amounts and timing of settlements; the credit-adjusted risk-free rate to be used; discount rate and inflation rates. Subsequent to the initial measurement of the ARO, the obligation is adjusted at the end of each period to reflect accretion of the liability to its non-discounted amount and changes in either the timing or the amount of the original estimated future cash flows underlying the obligation. Revisions also result in increases or decreases in the carrying cost of these assets. Increases in the ARO liability due to accretion is charged to depreciation and amortization expense. The related capitalized cost, including revisions thereto, is charged to depreciation and amortization expense. See Note 12 Commitments and Contingencies to the consolidated financial statements. Long-Lived Assets. In accordance with the Impairment or Disposal of Long-Lived Assets Subsections of ASC 360-10, Property, Plant, and Equipment—Overall, long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. See Note 10 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements. Intangible Assets. Intangible assets are stated at cost, net of accumulated amortization. We have intangible assets related to technology, customer relationships, tradenames/trademarks, and software as detailed in Note 6 Detail of Certain Balance Sheet Accounts to the consolidated financial statements. See Note 7 Detail of Certain Balance Sheet Accounts to the consolidated financial statements. Intangible assets are amortized using the straight-line method over the asset's estimated useful life as follows: Technology 15 years Customer relationships 15 years Tradenames/trademarks 15 years Software 3 - 10 years Pension and Other Postretirement Plans. We sponsor noncontributory defined benefit pension plans (“Pension Plans”) and a post-retirement benefit plan (“Retiree Medical Plan”). We annually evaluate significant assumptions related to the benefits and obligations of these plans. Our estimation of the projected benefit obligations and related benefit expense requires that certain assumptions be made regarding such variables as expected return on plan assets, discount rates, rates of future compensation increases, estimated future employee turnover rates and retirement dates, distribution election rates, mortality rates, retiree utilization rates for health care services, and health care cost trend rates. The determination of the appropriate assumptions requires considerable judgment concerning future events and has a significant impact on the amount of the obligations and expense recorded. We rely in part on actuarial studies when determining the appropriateness of certain of the assumptions used in determining the benefit obligations and the annual expenses for these plans. See Note 13 Employee Benefits to the consolidated financial statements. Investment in Unconsolidated Joint Venture. Our 50.0% equity investment in a manufacturing joint venture at our Kashima site is accounted for under the equity method with our share of the operating results of the joint venture classified within earnings of unconsolidated joint venture. We evaluate our equity method investment for impairment when events or changes in circumstances indicate, in our judgment, that the carrying value of such investment may have experienced an other-than-temporary decline in value. When evidence of loss in value has occurred, we compare the estimated fair value of the investment to the carrying value of the investment to determine whether impairment has occurred. We assess the fair value of our equity method investment using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third party comparable sales, internally developed analysis and analysis from outside advisors. If the estimated fair value is less than the carrying value and we consider the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the financial statements as an impairment. See Note 15 Related Party Transactions to the consolidated financial statements. Debt Issuance Costs. We capitalize financing fees and other costs related to issuing long-term debt. We amortize these costs using the effective interest method, except for costs related to revolving debt, which are amortized using the straight-line method. The amortization of debt issuance costs is recorded in interest expense. See Note 9 Long-Term Debt to the consolidated financial statements. Contingencies . We are routinely involved in litigation, claims, and disputes incidental to our business. Professional judgment is required to classify the likelihood of these contingencies occurring. All relevant information that can be acquired concerning the uncertain set of circumstances needs to be obtained and used to determine the probability classification. A contingency is categorized as probable, reasonably possible, or remote. A contingency is classified as probable if the future event or events are likely to occur. For the probable contingencies, a loss is accrued and disclosed as of the date of the financial statements if it is both probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. A reasonably possible contingency occurs if the chance of the future event or events happening is more than remote but less than likely (reasonably possible but not probable). We disclose the loss contingencies in the footnotes to the financial statements but do not recognize any liability. A remote contingency is one where the chance of the future event or events occurring is slight. We neither accrue for nor disclose the liability in the notes to the financial statements. For loss contingencies, our accounting policy is to expense legal costs as incurred. See Note 12 Commitments and Contingencies to the consolidated financial statements. Environmental Costs. Environmental costs are expensed as incurred unless the expenditures extend the economic useful life of the relevant assets. Costs that extend the economic useful life of assets are capitalized and depreciated over the remaining life of those assets. Liabilities are recorded when environmental assessments, or remedial efforts are probable, and the cost can be reasonably estimated. See Note 12 Commitments and Contingencies to the consolidated financial statements. Disclosures about Fair Value of Financial Instruments. For cash and cash equivalents, receivables, accounts payable, and certain accrued expenses, the carrying amount approximates fair value due to the short maturities of these instruments. For long-term debt instruments and interest rate swap agreements, fair value is estimated based upon market values (if applicable) or on the current interest rates available to us for debt with similar terms and remaining maturities. See Note 10 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements. Revenue Recognition. Revenue is recognized in accordance with the provisions of ASC 606, Revenue from Contracts with Customers, when obligations under the terms of a contract with our customer are satisfied. Generally, this occurs at a point in time when the transfer of risk and title to the product transfers to the customer. Our products are generally sold free on board shipping point or, with respect to countries other than the U.S., an equivalent basis. Our standard terms of delivery are included in our contracts of sale, order confirmation documents, and invoices. As such, all revenue is considered revenue recognized from contracts with customers and we do not have other sources of revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized net of sales tax, value-added taxes, and other taxes. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. Certain customers may receive cash-based incentives (including rebates and price supports), which are accounted for as variable consideration. We estimate rebates and price supports based on the expected amount to be provided to customers and reduce revenues recognized once the performance obligation has been met. Sales commissions are expensed in cost of goods sold once the performance obligation with the associated sale has been met. We do not have significant changes in our estimates for variable considerations. See Note 3 Revenue Recognition to the consolidated financial statements. Research and Development Expenses. Research and development costs are expensed as incurred. Share-Based Compensation . Share-based compensation cost is measured at the grant date based on the fair value of the award. We recognize these costs using the straight-line method over the requisite service period. Upon adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 817) , we now recognize actual forfeitures by reducing the employee share-based compensation expense in the same period as the forfeitures occur. We estimate the fair value of performance-based restricted share units using a combination of Monte Carlo simulations and internal metrics. The expected term represents the period of time that performance share units granted are expected to be outstanding. Our expected volatilities are based on historical volatilities for Kraton and the members of the peer group. The risk free interest rate for the periods within the contractual life of the performance-based restricted share units is equal to the yield, as of the valuation date, of the zero coupon U.S. Treasury STRIPS that have a remaining term equal to the length of the remaining performance period. The expected dividend yield is assumed to be zero, which is the equivalent of reinvesting dividends in the underlying company's stock. Forfeitures are recognized when they occur. See Note 6 Share-Based Compensation to the consolidated financial statements. Leases. Our leases, with a term greater than one year, are classified as either operating or financing and carried at fair value on the balance sheet as lease assets acquired and liabilities assumed, except for capital leases in existence prior to our adoption of ASC 842, Leases . Capital leases in existence at the time of our adoption of ASC 842, Leases, are accounted for in accordance with ASC 840, Leases . Our contracts, with a term greater than one year, are classified as leases if 1) there is an identified asset and contract term, 2) we have the right to substantially all the economic benefit of the asset, and 3) we have the right to direct how and for what purpose the identified asset is used or we have the right to operate the asset throughout the period of use without changing operations of the asset. We classify leases as financing under any of the following circumstances: • ownership of the underlying asset is transferred to us by the end of the lease term; • the lease grants us an option to purchase the underlying asset that it is reasonably certain to be exercised; • the lease term is for the major part of the remaining economic life of the underlying asset; • the present value of the lease payments and residual value guarantee equals or exceeds substantially all of the fair value of the underlying asset; or • the underlying asset is so specialized that it is expected to have no use to the lessor at the end of the lease term. Our lease policy follows ASC 842, Leases, practical expedients election whereby: 1) we do not reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs; 2) we elected the short-term lease recognition exemption for all leases that qualify, and 3) we do not separate lease and non-lease components for all of our leases. See Note 12 Commitments and Contingencies to the consolidated financial statements. Income Taxes. We conduct operations in separate legal entities in different jurisdictions. As a result, income tax amounts are reflected in these consolidated financial statements for each of those jurisdictions. Income taxes are recorded utilizing an asset and liability approach. This method gives consideration to the future tax consequences associated with the differences between the financial accounting and tax basis of the assets and liabilities as well as the ultimate realization of any deferred tax asset resulting from such differences. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. In assessing the realizability of deferred tax assets, we consider all available evidence both positive and negative, to determine whether a valuation allowance is necessary relative to net deferred tax assets. In making this determination, we consider the current year and two preceding years for potential cumulative losses, and sources of income for sufficient taxable income. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances. We have established valuation allowances against a variety of deferred tax assets, including net operating loss carryforwards, foreign tax credits and other income tax credits. Our ability to realize these deferred tax assets is dependent on achieving our forecast of future taxable operating income over an extended period of time. We review our forecast in relation to actual results and expected trends on a quarterly basis. If we fail to achieve our operating income targets, we may change our assessment regarding the recoverability of our net deferred tax assets and such change could result in a valuation allowance being recorded against some or all of our net deferred tax assets. A change in our valuation allowance would impact our income tax benefit (expense) and our stockholders’ equity and could have a significant impact on our results of operations or financial condition in future periods. See Note 11 Income Taxes to the consolidated financial statements. Foreign Currency Translation and Foreign Currency Exchange Rates. Financial statements of our operations outside the U.S. where the local currency is considered to be the functional currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue, expenses, gains, losses, and cash flows. The effects of translating such operations into U.S. dollars are included as a component of accumulated other comprehensive income (loss). |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Adoption of Accounting Standards We have implemented all new accounting pronouncements that are in effect and that management believes would materially impact our financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases , by issuing ASU 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU 2018-10, Codification Improvements to Topic 842, Leases ; and ASU 2018-11, Targeted Improvements . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than twelve months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application. The new standard provides a number of optional practical expedients in transition. We elected the following practical expedients: (1) “package of practical expedients”, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs; (2) the short-term lease recognition exemption for all leases that qualify; and (3) the practical expedient to not separate lease and non-lease components for all of our leases. This standard had a material effect on our financial statements. The most significant effects relate to: (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our equipment, building, and vehicle operating leases; (2) the derecognition of existing assets and liabilities for straight line lease accounting under ASC 840, Leases ; and (3) providing significant new disclosures about our leasing activities. On adoption, we recognized additional operating liabilities of $70.9 million, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. See Note 12 Commitments and Contingencies to the consolidated financial statements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2016-13 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2016-13 effective January 1, 2020. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Our analysis of ASU 2017-04 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2017-04 effective January 1, 2020. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2018-18 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2018-18 effective January 1, 2020. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides practical expedients and exception for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. This standard is applicable to our contracts and hedging relationships that reference LIBOR. The amendments may be applied through December 31, 2022. We will apply this guidance to transactions and modifications of these arrangements as appropriate. New Accounting Standards to be Adopted in Future Periods |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Generally, this occurs at a point in time when control of the product transfers to the customer. Our standard terms of delivery are included in our contracts of sale, order confirmation documents, and invoices. As such, all revenue is considered revenue recognized from contracts with customers and we do not have other sources of revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized net of sales tax, value-added taxes, and other taxes. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. Certain customers may receive cash-based incentives (including rebates and price supports), which are accounted for as variable consideration. We estimate rebates and price supports based on the expected amount to be provided to customers and reduce revenues recognized once the performance obligation has been met. Sales commissions are expensed in cost of goods sold once the performance obligation with the associated sale has been met. We do not have significant changes in our estimates for variable considerations. We have deferred revenue of $175.5 million, of which $24.2 million is in other payables and accruals, related to contractual commitments with customers for which the performance obligation will be satisfied over time, which will range from one Disposition and Exit of Business Activities for further discussion of the IRSA. Occasionally, we enter into bill-and-hold contracts, where we invoice the customer for products even though we retain possession of the products until a point in time in the future when the products will be shipped to the customer. In these contracts, the primary performance obligation is satisfied at a point in time when the product is segregated from our general inventory, it is ready for shipment to customer, and we do not have the ability to use the product or direct it to another customer. Additionally, we have a secondary performance obligation related to custodial costs, including storage and freight, which is satisfied over time once the product has been delivered to the customer. During the the years ended December 31, 2020, 2019, and 2018, we recognized $4.1 million, $5.6 million, and $7.3 million, respectively, of revenue related to these arrangements. We disaggregate our revenue by segment product lines, which is how we market our products and review results of operations. The following tables disaggregate our segment revenue by major product lines: Years Ended December 31, 2020 2019 2018 Revenue (In thousands) Performance Products $ 459,906 $ 531,437 $ 631,728 Specialty Polymers 316,206 334,726 408,628 Cariflex 36,930 186,266 180,814 Isoprene Rubber 42,986 — — Other 1,530 539 416 Polymer Product Line Revenue $ 857,558 $ 1,052,968 $ 1,221,586 Years Ended December 31, 2020 2019 2018 Revenue (In thousands) Adhesives $ 257,855 $ 262,941 $ 280,867 Performance Chemicals 406,152 438,146 461,100 Tires 41,585 50,381 48,122 Chemical Product Line Revenue $ 705,592 $ 751,468 $ 790,089 December 31, 2020 December 31, 2019 (In thousands) Contract receivables (1) $ 179,805 $ 190,093 Contract liabilities (2) $ 175,511 $ 12,456 ____________________________________________________ (1) Contract receivables are recorded within receivables, net of allowances on our Consolidated Balance Sheets. This includes $20.4 million of contract receivables related to the Cariflex business recorded as current assets held for sale as of December 31, 2019. (2) Our contract liability increased by $163.1 million largely attributable to consideration received as part of the sale of our Cariflex business and entering into a multi-year IRSA with Daelim. |
Disposition and Exit of Busines
Disposition and Exit of Business Activities | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition and Exit of Business Activities | Disposition and Exit of Business Activities On March 6, 2020, we completed the sale of our Cariflex business to Daelim for gross proceeds of $530.0 million, adjusted for incremental working capital of $5.8 million, less contractual capital contributions of $25.3 million. The sale closed and is subject to a customary post-closing working capital adjustment and a contractual capital contribution post-closing adjustment. Upon closing, we recognized a gain of $175.2 million, and as part of the consideration received, entered into a multi-year IRSA with Daelim. As the IRSA product sales are at cost, we deferred approximately $180.6 million, of which $158.2 million and $22.4 million were recorded within deferred income and other payables and accruals, respectively, on the consolidated balance sheet as of the transaction date. The deferred income will be amortized into revenue as a non-cash transaction when the products are sold. In accordance with the IRSA, we will supply Isoprene Rubber to Daelim for a period of five years, with an optional extension for an additional five years. The IRSA provided $43.0 million of Isoprene Rubber sales revenue for the year ended December 31, 2020. Included within Isoprene Rubber sales revenue is $18.5 million of amortization of deferred income, which represents non-cash revenue realized as the products are sold under the IRSA for the year ended December 31, 2020. See Note 3 Revenue Recognition for further discussion of the impact to the year ended December 31, 2020 related to Cariflex and Isoprene Rubber sales. We used the $510.5 million net proceeds from the sale of our Cariflex business principally for repayment of the full outstanding balance of $290.0 million under the U.S. dollar denominated tranche (the “USD Tranche”) of the Company’s senior secured term loan facility (the “Term Loan Facility”) and repayment in the amount of €160.0 million (or approximately $184.8 million) of borrowings under the Euro dollar denominated tranche (the “Euro Tranche”) of the Term Loan Facility. We used the remaining proceeds in accordance with the terms of the Term Loan Facility to make additional repayments of debt and/or invest in strategic assets in the Company. For further discussion on assets held for sale, see Note 5 Assets Held for Sale. December 31, 2019 (In thousands) ASSETS Receivables, net of allowances of $51 $ 20,397 Inventories of products, net 27,030 Inventories of materials and supplies, net 965 Prepaid expenses 1,913 Other current assets 1,051 Property, plant, and equipment, less accumulated depreciation of $27,146 26,891 Other long-term assets 93 Long-term operating lease assets, net 74 Total assets $ 78,414 LIABILITIES Accounts payable-trade 9,180 Other payables and accruals 5,669 Long-term operating lease liabilities 3 Total liabilities 14,852 Net assets $ 63,562 The results of operations of this business are not classified as discontinued operations. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Assets Held for Sale | Disposition and Exit of Business Activities On March 6, 2020, we completed the sale of our Cariflex business to Daelim for gross proceeds of $530.0 million, adjusted for incremental working capital of $5.8 million, less contractual capital contributions of $25.3 million. The sale closed and is subject to a customary post-closing working capital adjustment and a contractual capital contribution post-closing adjustment. Upon closing, we recognized a gain of $175.2 million, and as part of the consideration received, entered into a multi-year IRSA with Daelim. As the IRSA product sales are at cost, we deferred approximately $180.6 million, of which $158.2 million and $22.4 million were recorded within deferred income and other payables and accruals, respectively, on the consolidated balance sheet as of the transaction date. The deferred income will be amortized into revenue as a non-cash transaction when the products are sold. In accordance with the IRSA, we will supply Isoprene Rubber to Daelim for a period of five years, with an optional extension for an additional five years. The IRSA provided $43.0 million of Isoprene Rubber sales revenue for the year ended December 31, 2020. Included within Isoprene Rubber sales revenue is $18.5 million of amortization of deferred income, which represents non-cash revenue realized as the products are sold under the IRSA for the year ended December 31, 2020. See Note 3 Revenue Recognition for further discussion of the impact to the year ended December 31, 2020 related to Cariflex and Isoprene Rubber sales. We used the $510.5 million net proceeds from the sale of our Cariflex business principally for repayment of the full outstanding balance of $290.0 million under the U.S. dollar denominated tranche (the “USD Tranche”) of the Company’s senior secured term loan facility (the “Term Loan Facility”) and repayment in the amount of €160.0 million (or approximately $184.8 million) of borrowings under the Euro dollar denominated tranche (the “Euro Tranche”) of the Term Loan Facility. We used the remaining proceeds in accordance with the terms of the Term Loan Facility to make additional repayments of debt and/or invest in strategic assets in the Company. For further discussion on assets held for sale, see Note 5 Assets Held for Sale. December 31, 2019 (In thousands) ASSETS Receivables, net of allowances of $51 $ 20,397 Inventories of products, net 27,030 Inventories of materials and supplies, net 965 Prepaid expenses 1,913 Other current assets 1,051 Property, plant, and equipment, less accumulated depreciation of $27,146 26,891 Other long-term assets 93 Long-term operating lease assets, net 74 Total assets $ 78,414 LIABILITIES Accounts payable-trade 9,180 Other payables and accruals 5,669 Long-term operating lease liabilities 3 Total liabilities 14,852 Net assets $ 63,562 The results of operations of this business are not classified as discontinued operations. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | Share-Based Compensation We account for share-based awards under the provisions of ASC 718, Compensation—Stock Compensation, which established the accounting for share-based awards exchanged for employee services. Accordingly, share-based compensation cost is measured at the grant date based on the fair value of the award and we expense these costs using the straight-line method over the requisite service period. Upon adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 817) , we now recognize actual forfeitures by reducing the employee share-based compensation expense in the same period as the forfeitures occur. Share-based compensation expense was approximately $11.4 million, $9.5 million, and $8.1 million, tax effected by $2.5 million, $2.1 million, and $1.9 million for the years ended December 31, 2020, 2019, and 2018, respectively. Our unrecognized compensation expense related to our share-based awards was as follows as of December 31, 2020: Unrecognized Compensation Expense Weighted Average Remaining Recognition Period (In thousands) Restricted stock awards $ 165 0.15 Restricted stock units $ 4,484 1.86 Performance stock units $ 4,614 1.61 2016 Equity and Cash Incentive Plan. On May 18, 2016, our stockholders approved the Kraton Corporation 2016 Equity and Cash Incentive Plan (the “2016 Plan”). Under the 2016 Plan, there are a total of 4,678,621 shares of our common stock reserved for issuance. As of December 31, 2020 and 2019 there were 1,804,184 and 2,901,188 shares of our common stock available for issuance under the 2016 Plan, respectively. 2019 Equity Inducement Plan. On April 17, 2019, our stockholders approved the Kraton Corporation 2019 Equity Inducement Plan (the “Inducement Plan”). Under the Inducement Plan, there are a total of 150,000 shares of our common stock reserved for issuance. As of December 31, 2020 there were 97,039 shares of our common stock available for issuance under the Inducement Plan. Non-qualified Stock Option Activity Non-qualified option activities for the year ended December 31, 2020 are as follows: Options Weighted Average Exercise Price Aggregate (1) Weighted Average Remaining Contractual Term (In thousands) (In thousands) Outstanding at December 31, 2019 387 $ 30.31 Granted — — Exercised (3) 28.42 Forfeited — — Expired (36) 28.68 Outstanding and exercisable at December 31, 2020 348 $ 30.49 $ 299 1.44 ________________________________________________ (1) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option as of December 31, 2020. These options have a ten Years Ended December 31, 2020 2019 2018 (In thousands) Options exercised 3 116 173 Total intrinsic value of options exercised $ — $ 623 $ 1,050 Restricted Stock Awards and Restricted Stock Units We may grant to certain employees time-vested restricted stock awards and time-vested restricted stock units. Holders of restricted stock units do not have any beneficial ownership in the common stock underlying the restricted stock units and the grant represents an unsecured promise to deliver common stock on a future date. Actual shares of common stock underlying the restricted stock units will not be issued until the earlier of the passage of the vesting period, a change in control that also results in the termination of the grantee’s employment, or the death/disability of the participant. We awarded 108,076 restricted stock awards to our employees, which are subject to a three three The following table represents the non-vested restricted stock awards and restricted stock units granted, vested, and forfeited during 2020. Restricted Stock Awards Restricted Stock Units Shares Weighted- Shares Weighted- (In thousands) (In thousands) Non-vested shares at December 31, 2019 204 $ 35.19 249 $ 32.74 Granted 78 10.21 360 10.45 Vested (198) 21.02 (127) 30.37 Forfeited (12) 45.10 (37) 20.83 Non-vested shares at December 31, 2020 73 $ 45.13 445 $ 17.34 The aggregate intrinsic value was $13.3 million and the weighted average remaining contractual term was 1.02 for restricted stock units. The intrinsic value of a restricted stock unit is the amount by which the market value of the underlying restricted stock unit exceeds the grant date value of the restricted stock unit as of December 31, 2020. The total fair value of shares vested during the years ended December 31, 2020, 2019, and 2018 pursuant to restricted stock awards and restricted stock units was $3.6 million, $6.7 million, and $12.4 million, respectively. Performance Share Units We may grant to certain employees performance share units, which vest after the achievement of performance criteria and time vesting established at grant. Holders of performance share units do not have any beneficial ownership in the shares of our common stock underlying the performance share units, and the grant represents an unsecured promise to deliver shares of our common stock on a future date. The performance share units vest at the end of a three The following table represents the non-vested performance share units granted, vested, and forfeited during 2020. Shares Weighted- Aggregate (1) Weighted Average Remaining Contractual Term (In thousands) (In thousands) Non-vested shares at December 31, 2019 378 $ 43.08 Granted 358 8.53 Vested — — Forfeited (188) 28.85 Non-vested shares at December 31, 2020 548 $ 23.25 $ 15,446 1.61 ________________________________________________ (1) The intrinsic value of a performance share unit is the amount by which the market value of the underlying performance share unit exceeds the grant date value of the performance share unit as of December 31, 2020. The total fair value of shares vested during the year ended December 31, 2019 pursuant to performance share units was $2.4 million. Weighted-Average Assumptions for Performance Share Unit Grant Date Fair Value For the performance share units granted in 2020, a component of the performance targets was based on relative total shareholder return over the three-year performance cycle compared to an industry peer group. The weighted average fair value using a Monte Carlo simulation model and the corresponding weighted average assumptions for the performance share units granted were as follows: 2020 2019 2018 Risk-free interest rate 0.84 % 2.51 % 2.36 % Expected dividend yield — % — % — % Expected volatility 50.9 % 32.2 % 36.6 % Fair value per performance share award $ 6.46 $ 60.68 $ 61.30 |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Balance Sheet Accounts | Detail of Certain Balance Sheet Accounts December 31, 2020 2019 (In thousands) Inventories of products: Finished products $ 240,021 $ 255,406 Work in progress 3,074 4,589 Raw materials 84,039 80,647 Inventories of products, gross 327,134 340,642 Inventory reserves (8,249) (8,185) Inventories of products, net $ 318,885 $ 332,457 Property, plant, and equipment: Land $ 46,936 $ 38,494 Buildings 199,720 182,873 Plant and equipment (1) 1,358,990 1,270,646 Construction in progress 69,336 73,124 Property, plant, and equipment 1,674,982 1,565,137 Less accumulated depreciation 732,279 639,197 Property, plant, and equipment, net of accumulated depreciation $ 942,703 $ 925,940 Intangible assets: Contractual agreements $ 265,375 $ 261,923 Technology 147,011 145,663 Customer relationships 60,623 60,291 Tradenames/trademarks 83,519 80,638 Software 68,276 63,181 Intangible assets 624,804 611,696 Less accumulated amortization: Contractual agreements 110,811 87,576 Technology 74,693 68,132 Customer relationships 40,205 38,760 Tradenames/trademarks 53,951 48,162 Software 50,410 43,189 Accumulated amortization 330,070 285,819 Intangible assets, net of accumulated amortization $ 294,734 $ 325,877 ________________________________________________ (1) Plant and equipment, net of depreciation, includes $2.7 million and $3.4 million of assets related to capital leases as of December 31, 2020 and December 31, 2019, respectively. December 31, 2020 2019 (In thousands) Other payables and accruals: Employee related $ 52,145 $ 27,078 Short-term operating lease liabilities 18,299 20,908 Interest payable 3,873 16,289 Capital project accruals 1,149 13,259 Customer related 10,484 10,329 Short-term deferred income 24,182 1,407 Income tax payable 26,367 3,372 Utilities payable 2,886 2,397 Property and other taxes 1,303 1,548 Other 26,676 16,058 Total other payables and accruals $ 167,364 $ 112,645 Other long-term liabilities: Pension and other postretirement benefits $ 133,634 $ 126,386 Long-term tax liability 19,530 21,022 Other 15,402 14,503 Total other long-term liabilities $ 168,566 $ 161,911 Depreciation expense for property, plant, and equipment was approximately $82.7 million, $89.9 million, and $91.8 million for the years ended December 31, 2020, 2019, and 2018, respectively. Amortization expense for intangible assets was approximately $43.0 million, $46.0 million, and $49.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. Estimated amortization expense for each of the next five years is as follows: December 31: Amortization (In thousands) 2021 $ 41,214 2022 $ 38,530 2023 $ 37,246 2024 $ 36,910 2025 $ 36,849 Changes in accumulated other comprehensive income (loss) by component were as follows: Cumulative Foreign Currency Translation Cash Flow Hedges, Net of Tax Net Investment Hedges, Net of Tax Benefit Plans Liability, Net of Tax Total (In thousands) Balance at December 31, 2018 $ (24,093) $ 3,922 $ 6,153 $ (77,681) $ (91,699) Other comprehensive income (loss) before reclassifications (5,296) (6,311) 7,471 (12,849) (16,985) Amounts reclassified to expense from accumulated other comprehensive loss — — — 2,889 (1) 2,889 Net other comprehensive income (loss) for the year (5,296) (6,311) 7,471 (9,960) (14,096) Balance at December 31, 2019 (29,389) (2,389) 13,624 (87,641) (105,795) Other comprehensive income (loss) before reclassifications 36,431 1,387 (25,881) (11,370) 567 Amounts reclassified to (income) expense from accumulated other comprehensive loss 66,533 1,002 (2) (899) 727 (1) 67,363 Net other comprehensive income (loss) for the year 102,964 2,389 (26,780) (10,643) 67,930 Balance at December 31, 2020 $ 73,575 $ — $ (13,156) $ (98,284) $ (37,865) ________________________________________________ (1) The reclassifications from accumulated other comprehensive income (loss) is for the change in benefit plans liability represents amortization of net actuarial losses and prior service costs. These costs are allocated between cost of goods sold, selling, general, and administrative and research and development expenses in the Consolidated Statement of Operations. See Note 13 Employee Benefits for further information related to net periodic benefit cost for pension and other post-retirement benefit plans. (2) The reclassifications from accumulated other comprehensive income (loss) is related to the exit of interest rate swaps related to prepayments under our U.S. dollar denominated tranche (the “USD Tranche”). These costs are recorded in loss on extinguishment of debt in the Consolidated Statement of Operations. |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share ("EPS") | Earnings per Share (“EPS”) Basic EPS is computed by dividing net income attributable to Kraton by the weighted-average number of shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Kraton by the diluted weighted-average number of shares outstanding during the period and, accordingly, reflects the potential dilution that could occur if securities or other agreements to issue common stock, such as stock options, were exercised, settled, or converted into common stock and were dilutive. The diluted weighted-average number of shares used in our diluted EPS calculation is determined using the treasury stock method. Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards are considered to be participating securities and therefore the two-class method is used for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock. These shares are subject to forfeiture and restrictions on transfer until vested and have identical voting, income, and distribution rights to the unrestricted common shares outstanding. We withheld 33,927, 82,721, and 140,064 shares of restricted stock upon vesting to satisfy employee payroll tax withholding requirements for the years ended December 31, 2020, 2019, and 2018, respectively. We immediately retired all shares withheld and the transactions were reflected in additional paid in capital and retained earnings in the Consolidated Statements of Changes in Equity and as a purchase of treasury stock in the Consolidated Statements of Cash Flows. The computation of diluted EPS excludes weighted average restricted share units of 460,014 for the year ended December 31, 2020, as they are anti-dilutive due to a net loss attributable to Kraton. The computation of diluted EPS excludes the effect of performance share units for which the performance contingencies had not been met as of the reporting date, amounting to 547,912, 378,084, and 436,370 units at December 31, 2020, 2019, and 2018, respectively. The computation of diluted earnings per share excludes the effect of the potential exercise of stock options that are anti-dilutive, amounting to 309,476, and 431,627 options for the years ended December 31, 2019, and 2018, respectively. We did not exclude any options for the year ended December 31, 2020. The calculations of basic and diluted EPS are as follows: Year Ended December 31, 2020 Net Weighted Earnings (In thousands, except per share data) Basic: As reported $ (225,602) 31,845 Amounts allocated to unvested restricted shares 701 (99) Amounts available to common stockholders (224,901) 31,746 $ (7.08) Diluted: Amounts allocated to unvested restricted shares (701) 99 Non participating share units — Stock options added under the treasury stock method — Amounts reallocated to unvested restricted shares 701 (99) Amounts available to stockholders and assumed conversions $ (224,901) 31,746 $ (7.08) Year Ended December 31, 2019 Net Weighted Earnings (In thousands, except per share data) Basic: As reported $ 51,305 31,828 Amounts allocated to unvested restricted shares (399) (247) Amounts available to common stockholders 50,906 31,581 $ 1.61 Diluted: Amounts allocated to unvested restricted shares 399 247 Non participating share units 259 Stock options added under the treasury stock method 41 Amounts reallocated to unvested restricted shares (395) (247) Amounts available to stockholders and assumed conversions $ 50,910 31,881 $ 1.60 Year Ended December 31, 2018 Net Weighted Earnings (In thousands, except per share data) Basic: As reported $ 67,015 31,878 Amounts allocated to unvested restricted shares (972) (462) Amounts available to common stockholders 66,043 31,416 $ 2.10 Diluted: Amounts allocated to unvested restricted shares 972 462 Non participating share units 168 Stock options added under the treasury stock method 205 Amounts reallocated to unvested restricted shares (961) (462) Amounts available to stockholders and assumed conversions $ 66,054 31,789 $ 2.08 Share Repurchase Program. In February 2019, we announced a repurchase program for up to $50.0 million of the Company's common stock by March 2021. Repurchases may be made at management's discretion from time to time through privately-negotiated transactions, in the open market, or through broker-negotiated purchases in compliance with applicable securities law, including through a 10b5-1 Plan. The repurchase program may be suspended for periods or discontinued at any time, and the amount and timing of the repurchases are subject to a number of factors, including Kraton's stock price. During the year ended December 31, 2020, we did not repurchase any shares of our common stock under this program. From inception of the program through December 31, 2020, we repurchased 311,152 shares of our common stock at an average price of $32.14 per share and a total cost of $10.0 million. We are not obligated to acquire any specific number of shares of our common stock. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following: December 31, 2020 December 31, 2019 Principal Discount Debt Issuance Cost Total Principal Discount Debt Issuance Cost Total (In thousands) USD Tranche $ — $ — $ — $ — $ 290,000 $ (5,057) $ (6,985) $ 277,958 Euro Tranche 104,159 — (996) 103,163 277,134 — (3,237) 273,897 7.0% Senior Notes — — — — 394,750 — (5,846) 388,904 4.25% Senior Notes 400,000 — (6,995) 393,005 — — — — 5.25% Senior Notes 355,366 — (4,221) 351,145 325,378 — (4,879) 320,499 ABL Facility — — — — — — — — KFPC Loan Agreement 52,730 — (18) 52,712 82,375 — (33) 82,342 KFPC Revolving Credit Facilities 37,003 — — 37,003 20,010 — — 20,010 Capital lease obligation 835 — — 835 1,015 — — 1,015 Total debt 950,093 — (12,230) 937,863 1,390,662 (5,057) (20,980) 1,364,625 Less current portion of total debt 72,347 — — 72,347 53,139 — — 53,139 Long-term debt $ 877,746 $ — $ (12,230) $ 865,516 $ 1,337,523 $ (5,057) $ (20,980) $ 1,311,486 Senior Secured Term Loan Facility. On March 6, 2020, we sold our Cariflex business and the net proceeds from the transaction were used to fully repay $290.0 million of outstanding borrowings under the USD Tranche of our Term Loan Facility and repay €75.0 million (or approximately $84.7 million) of outstanding borrowings under the Euro Tranche . We repaid an additional €70.0 million (or approximately $82.1 million) and €15.0 million (or approximately $18.0 million) on September 30, 2020 and November 30, 2020, respectively, under the Euro Tranche. The Euro Tranche interest rate applicable margin is 2.0%. Our Term Loan Facility will mature on March 8, 2025. As of the date of this filing, the effective interest rate for the Euro Tranche is 2.8%. The Term Loan Facility contains a number of customary affirmative and negative covenants and we were in compliance with those covenants as of the date of this filing. 7.0% Senior Notes due 2025. On December 21, 2020, we called for redemption and satisfied and discharged the remaining $394.8 million outstanding aggregate principal amount of our 7.0% Senior Notes due 2025 (the “7.0% Senior Notes”). The consideration and redemption price plus accrued and unpaid interest for the redemption were paid with the net proceeds of the offering of the 4.25% Senior Notes due 2025 (the “4.25% Senior Notes”). On December 6, 2018 we commenced a repurchase program for up to $20.0 million of our 7.0% Senior Notes. Purchases under the program may take place from time to time in the open market and through privately negotiated transactions, including pursuant to a 10b5-1 Plan. During the year ended December 31, 2019, we repurchased $4.3 million of our 7.0% Senior Notes. The repurchase program ended March 4, 2019. 4.25% Senior Notes due 2025. Kraton Polymers LLC and its wholly-owned financing subsidiary Kraton Polymers Capital Corporation issued $400.0 million aggregate principal amount of 4.25% Senior Notes due 2025 (the “4.25% Senior Notes”) in December 2020, which mature on December 15, 2025. The 4.25% Senior Notes are general unsecured, senior obligations, and are unconditionally guaranteed on a senior unsecured basis by each of Kraton Corporation and certain of our wholly-owned domestic subsidiaries. We pay interest on the Senior Notes at 4.25% per annum, semi-annually in arrears on June 15 and December 15 of each year. 5.25% Senior Notes due 2026. Kraton Polymers LLC and its wholly-owned financing subsidiary Kraton Polymers Capital Corporation issued €290.0 million, or approximately $355.4 million, aggregate principal amount of 5.25% Senior Notes due 2026 (the “5.25% Senior Notes”) in May 2018, which mature on May 15, 2026. The 5.25% Senior Notes are general unsecured, senior obligations, and are unconditionally guaranteed on a senior unsecured basis by each of Kraton Corporation and certain of our wholly-owned domestic subsidiaries. We pay interest on the Senior Notes at 5.25% per annum, semi-annually in arrears on May 15 and November 15 of each year. ABL Facility. Our asset-based revolving credit facility provides financing of up to $300.0 million (as amended, the “ABL Facility”). The ABL Facility also provides that we have the right at any time to request up to $100.0 million of additional commitments, provided that we satisfy certain additional conditions. We had no outstanding borrowings under the ABL Facility as of December 31, 2020. The termination date of the ABL Facility is December 3, 2025 (subject to earlier termination if certain outstanding indebtedness under the Term Loan Facility or our senior unsecured notes is not previously refinanced). We amended and restated the credit agreement governing our ABL Facility in April 2020 pursuant to which the termination date was extended from January 6, 2021 to January 6, 2023. In December 2020, we further amended the credit agreement governing the amended and restated credit agreement to extend the termination date to December 3, 2025. Borrowing availability under the ABL Facility is subject to borrowing base limitations based on the level of receivables and inventory available for security. Revolver commitments under the ABL Facility consist of U.S. and Dutch revolving credit facility commitments, and the terms of the ABL Facility require the U.S. revolver commitment comprises at least 60.0% of the commitments under the ABL Facility. The ABL Facility contains a number of customary affirmative and negative covenants, and we were in compliance with those covenants as of the date of this filing. As part of the April 2020 amendment and restatement, there was no significant change in terms and a price increase of 50 basis points in the borrowing margin for amounts outstanding under the ABL Facility, while improving certain borrowing base advance rates and borrowing base eligibility criteria from the existing agreement. In December 2020, we amended and restated the credit agreement governing the ABL Facility to extend the term through December 3, 2025, reduced the borrowing margin by 50 basis points along with a 75 basis point decrease in the floor rate for amounts outstanding and borrowed under the facility, and reduced the unused line fee by 12.5 basis points for available committed amounts with no outstanding borrowings under the facility. In addition, the aggregate commitments under the ABL Facility were also increased from $250.0 million to $300.0 million. KFPC Loan Agreement. As of December 31, 2020, NTD 1.5 billion, or approximately $52.7 million, was drawn on KFPC's syndicated loan agreement (the “KFPC Loan Agreement”). For the year ended December 31, 2020, the effective interest rate for borrowings on the KFPC Loan Agreement was 1.8%. The KFPC Loan Agreement contains certain financial covenants that change during the term of the KFPC Loan Agreement. KFPC was in compliance with those covenants as of the date of this filing. Additionally, due to a waiver received from the majority of lenders, we are no longer subject to the remaining 2020 financial covenants. In each case, these covenants are calculated and tested on an annual basis at December 31 st each year. The KFPC Loan Agreement will mature on January 17, 2022. KFPC Revolving Facilities. KFPC also has four revolving credit facilities (the “KFPC Revolving Facilities”) to provide funding for working capital requirements and/or general corporate purposes, which allow for total borrowings of up to NTD 2.2 billion (or approximately $76.5 million). All of the KFPC Revolving Facilities are subject to variable interest rates. As of December 31, 2020, NTD 1.0 billion (or approximately $37.0 million) was drawn on the KFPC Revolving Facilities. Debt Issuance Costs. We capitalize debt issuance costs related to issuing long-term debt and amortize these costs using the effective interest method, except for costs related to revolving debt, which are amortized using the straight-line method. Amortization is recorded as a component of interest expense and the accelerated write-off of debt issuance costs in connection with refinancing activities are recorded as a component of loss on extinguishment of debt. We recorded a $40.8 million loss on extinguishment of debt during the year ended December 31, 2020, which includes a write off of $20.7 million related to the call premium on the redemption of our outstanding 7.0% Senior Notes, a write off of $13.9 million related to previously capitalized deferred financing costs on our Term Loan Facility and 7.0% Senior Notes, a write off of $4.9 million related to original issue discount on our USD Tranche, and a $1.3 million loss on the settlement of the ineffective portion of interest rate swaps. We recorded a $3.5 million loss on extinguishment of debt during the year ended December 31, 2019, which includes a write off of $2.5 million related to previously capitalized deferred financing costs on our Term Loan Facility and 7.0% Senior Notes and a write off of $1.3 million related to original issue discount on our Term Loan Facility. These write offs were partially offset by a $0.3 million gain resulting from our repurchase of 7.0% Senior Notes. We recorded a $79.9 million loss on extinguishment of debt during the year ended December 31, 2018, which includes a write off of $18.7 million related to previously capitalized deferred financing costs, a write off of $17.4 million related to original issue discount on our Term Loan Facility, and a $46.4 million related to the cash tender offer and subsequent redemption of the outstanding 10.5% Senior Notes, all of which was partially offset by a $2.6 million gain on the settlement of the ineffective portion of interest rate swaps. We had net debt issuance cost of $14.4 million as of December 31, 2020, of which $2.2 million related to our ABL Facility is recorded in other current assets and $12.2 million is recorded as a reduction to long-term debt. We had net debt issuance cost of $22.2 million as of December 31, 2019, of which $1.2 million related to our ABL Facility is recorded in other current assets and $21.0 million is recorded as a reduction to long-term debt. We amortized $3.0 million, $4.7 million, and $5.8 million during the years ended December 31, 2020, 2019, and 2018, respectively. Debt Maturities. The principal payments on our outstanding total debt as of December 31, 2020, are as follows: Principal December 31, (In thousands) 2021 $ 72,347 2022 17,778 2023 215 2024 228 2025 504,159 Thereafter 355,366 Total debt $ 950,093 See Note 10 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements for fair value information related to our long-term debt. |
Fair Value Measurements, Financ
Fair Value Measurements, Financial Instruments, and Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Financial Instruments, and Credit Risk | Fair Value Measurements, Financial Instruments, and Credit Risk ASC 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820 requires entities to, among other things, maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. In accordance with ASC 820, these two types of inputs have created the following fair value hierarchy: • Level 1—Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in markets that are not active; • Inputs other than quoted prices that is observable for the asset or liability; and • Inputs that are derived principally from or corroborated by observable market data by correlation or other means; and • Level 3—Inputs that are unobservable and reflect our assumptions used in pricing the asset or liability based on the best information available under the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Recurring Fair Value Measurements . The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2020 and December 31, 2019, respectively. These financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, which judgment may affect the valuation of their fair value and placement within the fair value hierarchy levels. As of December 31, 2020 and 2019, the Company has no assets or liabilities utilizing significant unobservable inputs (or Level 3) to derive its estimated fair values. Fair Value Measurements at Reporting Balance Sheet Location December 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Retirement plan asset—noncurrent Other long-term assets 2,454 2,454 — Derivative liability – current Other payables and accruals (219) — (219) Total $ 2,235 $ 2,454 $ (219) Fair Value Measurements at Reporting Balance Sheet Location December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Derivative asset – current Other current assets $ 14 $ — $ 14 Derivative asset – noncurrent Other long-term assets 32 — 32 Retirement plan asset—noncurrent Other long-term assets 2,547 2,547 — Derivative liability – current Other payables and accruals (170) — (170) Total $ 2,423 $ 2,547 $ (124) The use of derivatives creates exposure to credit risk relating to potential losses that could be recognized in the event that the counterparties to these instruments fail to perform their obligations under the contracts. We seek to minimize this risk by limiting our counterparties to major financial institutions with acceptable credit ratings and monitoring the total value of positions with individual counterparties. In the event of a default by one of our counterparties, we may not receive payments provided for under the terms of our derivatives. Nonrecurring Fair Value Measurements. Our long-lived assets, such as property, plant, and equipment, and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When impairment has occurred, such long-lived assets are written down to fair value. These evaluations are performed using Level 3 inputs to derive its estimated fair values. During the year ended December 31, 2020, we impaired $0.8 million related to specifically identified assets in our Chemical segment. During the year ended December 31, 2019, we impaired $0.8 million of certain assets, of which $0.5 million related to an expansion project in our Polymer segment. During the year ended December 31, 2018, we impaired certain assets totaling $2.2 million, largely related to the impact of Hurricane Michael in our Chemical segment. The following table presents the carrying values and approximate fair values of our debt. December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (In thousands) USD Tranche (significant other observable inputs – level 2) $ — $ — $ 290,000 $ 290,183 Euro Tranche (significant other observable inputs – level 2) $ 104,159 $ 103,574 $ 277,134 $ 277,827 7.0% Senior Notes (quoted prices in active market for identical assets – level 1) $ — $ — $ 394,750 $ 406,214 4.25% Senior Notes (quoted prices in active market for identical assets – level 1) $ 400,000 $ 409,880 $ — $ — 5.25% Senior Notes (quoted prices in active market for identical assets – level 1) $ 355,366 $ 367,886 $ 325,378 $ 338,364 ABL Facility $ — $ — $ — $ — Capital lease obligation $ 835 $ 835 $ 1,015 $ 1,015 KFPC Loan Agreement $ 52,730 $ 52,730 $ 82,375 $ 82,375 KFPC Revolving Credit Facilities $ 37,003 $ 37,003 $ 20,010 $ 20,010 The ABL Facility, Capital lease obligation, KFPC Loan Agreement, and KFPC Revolving Facilities are variable rate instruments, and as such, the fair value approximates the carrying value. Financial Instruments Interest Rate Swap Agreements. Periodically, we enter into interest rate swap agreements to hedge or otherwise protect against interest rate fluctuations on a portion of our variable rate debt. These interest rate swap agreements are designated as cash flow hedges on our exposure to the variability of future cash flows. In an effort to convert a substantial portion of our future interest payments pursuant to the USD Tranche to a fixed interest rate, in February and March 2016 we entered into a series of interest rate swap agreements with an aggregate notional value of $925.4 million, effective dates of January 3, 2017 and maturity dates of December 31, 2020. Based on debt repayments, we have exited all of the interest rate swap agreements originally entered into in 2017. We reclassified out of other comprehensive income (loss) the settlement of our interest rate swaps that amounted to a $1.3 million loss on extinguishment of debt for the year ended December 31, 2020. We recorded an unrealized gain of $1.8 million and an unrealized loss of $5.1 million for the years ended December 31, 2020 and 2019, respectively, in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets related to the effective portion of these interest rate swap agreements. Foreign Currency Hedges. Periodically, we enter into foreign currency agreements to hedge or otherwise protect against fluctuations in foreign currency exchange rates. These agreements do not qualify for hedge accounting and gains/losses resulting from both the up-front premiums and/or settlement of the hedges at expiration of the agreements are recognized in the period in which they are incurred. We settled these hedges and recorded a gain of $0.9 million and a loss of $4.0 million and $1.1 million for the years ended December 31, 2020, 2019, and 2018, respectively, which are recorded in cost of goods sold in the Consolidated Statement of Operations. These contracts are structured such that these gains/losses from the mark-to-market impact of the hedging instruments materially offset the underlying foreign currency exchange gains/losses to reduce the overall impact of foreign currency exchange movements throughout the period. Net Investment Hedge. During the year ended December 31, 2020, we designated €290.0 million of euro-denominated borrowing as a hedge against a portion of our net investment in the Company's European operations. The mark to market of this instrument was a loss of $30.0 million and a gain of $6.1 million for the year ended December 31, 2020 and 2019, respectively, which is recorded within accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Credit Risk The use of derivatives creates exposure to credit risk in the event that the counterparties to these instruments fail to perform their obligations under the contracts, which we seek to minimize by limiting our counterparties to major financial institutions with acceptable credit ratings and by monitoring the total value of positions with individual counterparties. We analyze our counterparties’ financial condition prior to extending credit and we establish credit limits and monitor the appropriateness of those limits on an ongoing basis. We also obtain cash, letters of credit, or other acceptable forms of security from customers to provide credit support, where appropriate, based on our financial analysis of the customer and the contractual terms and conditions applicable to each transaction. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Kraton Corporation, the parent company, is domiciled in the U.S. and is subject to U.S. statutory rate of 21.0% from January 1, 2018 through December 31, 2020. The provision for income taxes is comprised of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Current tax benefit (expense): U.S. $ (9,579) $ 13,968 $ (22,158) Foreign (14,501) (2,314) (7,903) Current tax benefit (expense) (24,080) 11,654 (30,061) Deferred tax benefit (expense): U.S. (3,376) (1,621) 18,868 Foreign 59,490 1,780 7,619 Deferred tax benefit (expense) 56,114 159 26,487 Income tax benefit (expense) $ 32,034 $ 11,813 $ (3,574) Income (loss) before income taxes is comprised of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Income (loss) before income taxes: U.S. $ (484,131) $ 1,998 $ 10,605 Foreign 230,411 42,006 63,490 Income before income taxes $ (253,720) $ 44,004 $ 74,095 The provision for income taxes differs from the amount computed by applying the U.S. corporate statutory income tax rate to income (loss) before income taxes for the reasons set forth below: Years Ended December 31, 2020 2019 2018 Income taxes at the statutory rate (21.0) % (21.0) % (21.0) % Foreign tax rate differential (0.2) 5.1 15.3 State taxes, net of federal benefit (0.7) (0.1) (0.5) Permanent differences 0.6 8.7 10.9 Cariflex disposition (4.3) — — Dutch transfer of assets (25.9) — — Tax credits (0.5) 3.6 (0.1) Uncertain tax positions (1.2) 40.3 (8.3) Valuation allowance (0.6) 10.6 8.8 Goodwill impairment 33.1 — — Deferred tax rate change and transition tax 0.2 (7.7) 14.4 U.S. minimum tax on foreign entities 2.0 (17.8) (16.2) Other 5.9 5.1 (8.0) Effective tax rate (12.6) % 26.8 % (4.7) % As of December 31, 2020, we have recorded a deferred tax asset of $65.8 million related to the intercompany transfers of certain intellectual property rights to our Dutch subsidiary. This transfer was to align the ownership of these rights with our evolving business. The transfer did not result in a taxable gain; however, our Dutch subsidiary received a step-up in tax basis based on the fair value of the transferred intellectual property rights. The fair value was determined utilizing certain estimates within the income approach based on our expectations of future cash flows, long-term growth rates, and discount rates. We recorded a one-time benefit of $65.8 million for the recognition of the deferred tax asset in the Netherlands. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted by the U.S. on March 27, 2020. The CARES Act among other things, includes provisions relating to modifications of the net interest deduction limitations and revisions to alternative minimum tax credit (“AMT”) refunds. We have recognized a current tax benefit of $9.7 million related to the modification to the interest deduction limitation. As a result of the CARES Act, we reclassified $1.6 million of expected AMT refunds from long-term to current. We are continuing to analyze the CARES Act, but we do not anticipate the other income tax provisions of the CARES Act to have a material impact on our financial statements. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as net operating loss and tax credit carryforwards. The tax effects of temporary differences are comprised of the following: December 31, 2020 2019 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 36,093 $ 49,634 Interest carryforwards 4,974 30,429 Tax credit carryforwards 4,938 10,301 Inventory 8,309 8,100 Benefit plans accrual 31,431 25,219 Operating leases 13,279 17,543 Deferred income 36,999 — Other accruals and reserves 11,821 4,782 Deferred tax assets 147,844 146,008 Valuation allowance for deferred tax assets (39,517) (38,440) Net deferred tax assets after valuation allowance 108,327 107,568 Deferred tax liabilities: Property, plant, and equipment 117,678 112,454 Intangible assets 2,603 76,293 Operating leases 11,715 16,842 Investment in subsidiaries 18,356 18,356 Deferred tax liabilities 150,352 223,945 Net deferred tax liabilities $ 42,025 $ 116,377 December 31, 2020 2019 (In thousands) Net deferred tax liabilities consist of: Non-current deferred tax assets $ 83,534 $ 8,863 Non-current deferred tax liabilities 125,559 125,240 Net deferred tax liabilities $ 42,025 $ 116,377 As of December 31, 2020 and December 31, 2019, the net deferred tax liabilities were $42.0 million and $116.4 million, respectfully, the primary change was due to recording a $65.8 million deferred tax asset for the intercompany transfer of certain intellectual property rights that resulted in a step-up of basis to fair value for the Dutch subsidiary. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We consider all available material evidence, both positive and negative, in assessing the appropriateness of a valuation allowance for our deferred tax assets. As of December 31, 2020 and December 31, 2019, we recorded a valuation allowance of $39.5 million and $38.4 million, respectively, against our net operating loss carryforwards (“NOL”) and other deferred tax assets. We currently believe that certain unremitted foreign earnings of our subsidiaries will be permanently reinvested for an infinite period of time. Accordingly, we have not provided deferred taxes for the differences between these subsidiaries’ book basis and underlying tax basis or on related foreign currency translation adjustment amounts. As of December 31, 2020, we had $131.5 million of NOL carryforwards, related to foreign jurisdictions of which $129.5 million is subject to a valuation allowance. Of the NOL carryforwards, $1.6 million are set to expire at various times between 2027 through 2037, and $129.9 million are non-expiring. We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. Our U.S. federal income tax returns, for 2004 remain open to examination, as a result of the utilization of NOL carryforwards from 2004. In addition, open tax years for state and foreign jurisdictions remain subject to examination. Although the outcome of tax audits is always uncertain, we believe that adequate amounts of tax, interest, and penalties have been provided for in the accompanying condensed financial statements for any adjustments that might be incurred due to federal, state, or foreign audits. As of December 31, 2020 and December 31, 2019, we had unrecognized tax benefits of $8.8 million and $11.3 million, respectively, if recognized, would impact our effective tax rate. The net decrease was primarily due to the lapse in a statute of limitations for unrecognized tax benefits in the U.S. and China of $3.4 million. Interest and penalties relating to income taxes are included in income tax expense. As of December 31, 2020 and December 31, 2019, we had $1.7 million and $2.1 million of penalties and interest included in the total unrecognized tax benefits. Accrued interest and penalties relating to uncertain tax positions that are not actually assessed will be reversed in the year of resolution. It is reasonable that the existing liabilities for the unrecognized tax benefits may increase or decrease over the next 12 months as a result of audit closures and statute expirations; however, the ultimate timing of the resolution and/or closure of audits is highly uncertain. The following presents a roll forward of our unrecognized tax benefits including associated interest and penalties. December 31, 2020 2019 (In thousands) Balance at January 1 $ 11,294 $ 29,603 Increase in current year tax positions 148 185 Increase in prior year tax positions 1,142 710 Decrease in prior year tax positions — (18,143) Lapse of statute of limitations (3,735) (1,061) Balance at December 31 $ 8,849 $ 11,294 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Lease Commitments - accounted for under ASC 842, Leases All of our lease ROU assets and lease liabilities are related to operating leases, where the lease term exceeds one year. Our operating leases are generally for railcars, office space, and equipment used to conduct our operations. We currently have no finance leases as that term is defined under ASC 842. These leases were discounted using a rate of 3.584%, which is based on a weighted average borrowing rate of specific debt. Non-variable lease costs include the amortization of the asset recorded on a straight-line basis. Variable lease components are non-index based payments based on performance or usage of the underlying asset. We have no material lessor or sublease income. The components of lease cost for operating leases are as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 (In thousands) Lease cost $ 24,488 $ 23,093 Variable lease cost 1,090 543 Operating lease expense $ 25,578 $ 23,636 The operating lease liabilities on a discounted basis arising from obtaining ROU assets as of December 31, 2020 were comprised as follows: Leased Asset Class Polymer Chemical Percentage Average Months Remaining on the Lease Weighted Average in Months (In thousands) Railcars $ 2,733 $ 26,748 34.2 % 65 22.3 Buildings 24,623 9,868 40.0 % 27 10.6 Equipment 2,151 6,712 10.3 % 36 3.7 Land 7,045 44 8.2 % 359 29.5 Other 775 5,498 7.3 % 35 2.5 Total $ 37,327 $ 48,870 68.6 The following tables show the undiscounted cash flows for the operating lease liabilities. December 31, 2020 (In thousands) 2021 $ 21,098 2022 15,992 2023 14,309 2024 10,668 2025 8,605 Thereafter 26,988 Total undiscounted operating lease liabilities 97,660 Present value discount (11,474) Foreign currency and other 11 Total discounted operating lease liabilities $ 86,197 December 31, 2019 (In thousands) 2020 $ 23,310 2021 17,629 2022 13,087 2023 9,665 2024 6,264 Thereafter 27,860 Total undiscounted operating lease liabilities 97,815 Present value discount (10,400) Foreign currency and other 117 Total discounted operating lease liabilities $ 87,532 (b) Environmental and Safety Matters Our finished products are not generally classified as hazardous under U.S. environmental laws. However, our operations involve the handling, transportation, treatment, and disposal of potentially hazardous materials that are extensively regulated by environmental, health and safety laws, regulations, and permit requirements. Environmental permits required for our operations are subject to periodic renewal and can be revoked or modified for cause or when new or revised environmental requirements are implemented. Changing and increasingly stringent environmental requirements can affect the manufacturing, handling, processing, distribution and use of our chemical products and the raw materials used to produce such products and, if so affected, our business and operations may be materially and adversely affected. In addition, changes in environmental requirements can cause us to incur substantial costs in upgrading or redesigning our facilities and processes, including waste treatment, disposal, and other waste handling practices and equipment. We conduct environmental management programs designed to maintain compliance with applicable environmental requirements at all of our facilities. We routinely conduct inspection and surveillance programs designed to detect and respond to leaks or spills of regulated hazardous substances and to identify and correct identified regulatory deficiencies. However, a business risk inherent with chemical operations is the potential for personal injury and property damage claims from employees, contractors and their employees, and nearby landowners and occupants. While we believe our business operations and facilities generally are operated in compliance, in all material respects, with all applicable environmental and health and safety requirements, we cannot be sure that past practices or future operations will not result in material claims or regulatory action, require material environmental expenditures, or result in exposure or injury claims by employees, contractors and their employees, and the public. Some risk of environmental costs and liabilities are inherent in our operations and products, as it is with other companies engaged in similar businesses. Our Belpre, Ohio, facility is subject to a number of actual and/or potential environmental liabilities primarily relating to contamination caused by former operations at this facility. Some environmental laws could impose on us the entire costs of cleanup regardless of fault, legality of the original disposal, or ownership of the disposal site. In some cases, the governmental entity with jurisdiction could seek an assessment for damage to the natural resources caused by contamination from this site. Shell Chemicals has agreed, subject to certain limitations, in time and amounts, to indemnify us against most environmental liabilities related to the acquired facility that arose from conditions existing prior to the closing. We had no material operating expenditures for environmental fines, penalties, government imposed remedial, or corrective actions in each of the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020 and 2019, we have recorded an environment obligation and corresponding receivable of $2.2 million and $2.7 million, respectively, relating to an indemnification agreement with International Paper, our Chemical segment's former owner. (c) Legal Proceedings We received an initial notice from the tax authorities in Brazil during the fourth quarter of 2012 in connection with tax credits that were generated from the purchase of certain goods which were subsequently applied by us against taxes owed. The tax authorities are currently assessing R$10.2 million, or approximately $2.0 million. We have appealed the assertion by the tax authorities in Brazil that the goods purchased were not eligible to earn the credits. While the outcome of this proceeding cannot be predicted with certainty, we do not expect this matter to have a material adverse effect upon our financial position, results of operations, or cash flows. We and certain of our subsidiaries, from time to time, are parties to various other legal proceedings, claims, and disputes that have arisen in the ordinary course of business. These claims may involve significant amounts, some of which would not be covered by insurance. A substantial settlement payment or judgment in excess of our accruals could have a material adverse effect on our financial position, results of operations or cash flows. While the outcome of these proceedings cannot be predicted with certainty, we do not expect any of these existing matters, individually or in the aggregate, to have a material adverse effect upon our financial position, results of operations or cash flows. (d) Asset Retirement Obligations (“ARO”) The changes in the aggregate carrying amount of our ARO liability are as follows: December 31, 2020 2019 (In thousands) Beginning balance $ 6,523 $ 5,703 Additional accruals 119 772 Accretion expense 348 343 Obligations settled (1,164) (206) Foreign currency translation 506 (89) Ending balance $ 6,332 $ 6,523 In the third quarter of 2019, the Company recorded an ARO of $0.8 million related to the decommissioning of certain assets related to isosteric production at its Dover, Ohio facility. Pursuant to the indemnity included in the February 2001 separation agreement from Shell Chemical, we recorded a receivable of $0.2 million as of December 31, 2019. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits (a) Pension Plans. U.S. Retirement Benefit Plan. We have two U.S. noncontributory defined benefit pension plans (“U.S. Pension Plans”). Our Polymer segment U.S. Pension Plans covers all salaried and hourly wage employees in the U.S. who were employed by us on or before December 31, 2005. Employees who began their employment with us after December 31, 2005 are not covered by our Pension Plans. The benefits under the Pension Plans are based primarily on years of service and employees’ pay near retirement. For our employees who were employed as of March 1, 2001 and who: (1) were previously employed by Shell Chemicals; and (2) elected to transfer their pension assets to us, we consider the total combined Shell Chemicals and Kraton service when calculating the employee’s pension benefit. For those employees who: (1) elected to retire from Shell Chemicals; or (2) elected not to transfer their pension benefit, only Kraton service (since March 1, 2001) is considered when calculating benefits. Our Chemical segment U.S. Pension Plans cover all U.S. employees hired prior to July 2004 and certain retirees of the Company participate in International Paper’s defined benefit pension plans. International Paper remains responsible for all benefits related to years of service prior to December 31, 2007. The Company implemented its own defined benefit pension plan for then eligible U.S. employees on March 1, 2007. Based on the funded status and a related change in accrued pension obligations we reported an increase in our accumulated other comprehensive income (loss) of approximately $9.9 million and a decrease of $0.1 million as of December 31, 2020 and 2019, respectively. Non-U.S. Retirement Benefit Plan. The Company sponsors defined benefit pension and retirement plans (“non-U.S. Pension Plans”) in certain foreign subsidiaries. Generally, the Company’s non-U.S. Pension Plans are funded using the projected benefit as a target in countries where funding of benefit plans is required. Based on the funded status and a related change in accrued pension obligations we reported an increase in our accumulated other comprehensive income (loss) of approximately $2.8 million and $9.1 million as of December 31, 2020 and 2019, respectively. The 2020 measurement date of the Pension Plan’s assets and obligations was December 31, 2020. Information concerning the pension obligation, plan assets, amounts recognized in our financial statements, and underlying actuarial and other assumptions are as follows: U.S. Plans Non-U.S. Plans December 31, December 31, 2020 2019 2020 2019 (In thousands) Change in benefit obligation: Benefit obligation at beginning of period $ 194,897 $ 177,589 $ 95,265 $ 81,108 Service cost 187 2,671 1,861 1,491 Interest cost 6,621 7,781 1,656 2,112 Participant contributions — — 242 215 Benefits paid (8,170) (7,354) (5,255) (3,577) Plan amendments — (12,507) — (321) Settlements — — (1,018) (400) Other events — — 9,183 — Actuarial (gain) loss 22,083 26,717 5,326 13,070 Exchange rate (gain) loss — — 5,504 1,567 Benefit obligation at end of period 215,618 194,897 112,764 95,265 Change in plan assets: Fair value at beginning of period 131,980 110,899 52,680 45,024 Return on plan assets 19,653 20,849 7,501 5,926 Employer contributions 3,865 7,586 5,502 4,067 Participant contributions — — 242 215 Benefits paid (8,170) (7,354) (5,255) (3,577) Settlements — — (1,018) (400) Other events — — 6,952 — Exchange rate (gain) loss — — 2,682 1,425 Fair value at end of period 147,328 131,980 69,286 52,680 Funded status at end of period $ (68,290) $ (62,917) $ (43,478) $ (42,585) Amounts recognized on balance sheet: Current liabilities $ — $ — $ (2,945) $ (2,323) Noncurrent liabilities (68,290) (62,917) (40,533) (40,262) $ (68,290) $ (62,917) $ (43,478) $ (42,585) Amounts recognized in accumulated other comprehensive loss: Prior service costs $ — $ — $ 2,754 $ 573 Net actuarial loss 68,407 58,505 21,112 20,495 Amounts recognized in accumulated other comprehensive loss $ 68,407 $ 58,505 $ 23,866 $ 21,068 Accumulated benefit obligations $ 215,618 $ 194,887 $ 106,525 $ 91,152 During the fourth quarter of 2019 (the effective date), we amended our Polymer segment U.S. Pension Plan, eliminating future participant benefit accruals after January 31, 2020, which resulted in a pension curtailment and remeasurement as of the effective date. This plan amendment resulted in a $12.5 million reduction in pension liabilities during the year ended December 31, 2019. During the third quarter of 2019, we amended our Japan pension plan, which resulted in a pension curtailment. This plan amendment resulted in a $0.3 million reduction in pension liabilities during the year ended December 31, 2019. Estimated Future Cash Flows. The following employer contributions and benefit payments, which reflect expected future service, as appropriate, are expected to be paid: U.S. Plans Non-U.S. Plans (In thousands) Employer Contributions 2021 Employer contributions $ 10,245 $ 4,888 Benefit Payments 2021 $ 8,215 $ 5,431 2022 8,584 6,240 2023 8,924 5,371 2024 9,195 5,633 2025 9,510 6,914 Years 2026-2030 51,938 34,566 Total Benefit Payments $ 96,366 $ 64,155 Net Periodic Pension Costs. Net periodic pension costs consist of the following components: U.S. Plans Non-U.S. Plans Years Ended December 31, Years Ended December 31, 2020 2019 2018 2020 2019 2018 (In thousands) Service cost benefits earned during the period $ 187 $ 2,671 $ 3,221 $ 1,861 $ 1,491 $ 2,504 Interest on prior year’s projected benefit obligation 6,621 7,781 7,200 1,656 2,112 2,073 Expected return on plan assets (9,106) (10,065) (9,808) (2,731) (2,520) (2,685) One-time settlement costs — — — 143 56 — Amortization of prior service costs — — — 17 34 13 Amortization of net actuarial loss 1,634 3,487 4,650 1,050 419 645 Net periodic pension costs $ (664) $ 3,874 $ 5,263 $ 1,996 $ 1,592 $ 2,550 The estimated losses that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2021 are as follows: U.S. Plans Non-U.S. Plans (In thousands) Amortization of prior service costs $ — $ 19 Amortization of net actuarial loss 2,420 1,048 $ 2,420 $ 1,067 Significant Assumptions. Discount rates are determined annually and are based on rates of return of high-quality long-term fixed income securities currently available and expected to be available during the maturity of the pension benefits. U.S. Plans Non-U.S. Plans December 31, December 31, 2020 2019 2020 2019 Weighted average assumptions used to determine benefit obligations: Discount rate 2.66 % 3.45 % 1.13 % 1.79 % Rates of increase in salary compensation level 3.00 % 3.00 % 2.73 % 2.96 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 4.93 % 5.24 % Weighted average assumptions used to determine net periodic benefit cost: Discount rate 3.45 % 4.45 % 1.79 % 2.63 % Rates of increase in salary compensation level 3.00 % 3.00 % 2.96 % 2.98 % Expected long-term rate of return on plan assets 7.00 % 8.00 % 5.24 % 5.49 % Our management relied in part on actuarial studies in establishing the expected long-term rate of return on assets assumption. The studies include a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the Pension Plans to determine the average rate of earnings expected on the funds invested to provide for the Pension Plans' benefits. While the studies give appropriate consideration to recent fund performance and historical returns, the assumption is primarily a long-term, prospective rate. Based on our most recent study, the expected long-term return assumption for our U.S. Pension Plans effective for 2021 will be 7.0% and 4.9% for our non-U.S. Pension Plans. Based on the U.S. Pension Plan’s current target asset allocation, the median estimate for future asset returns (before non-investment expenses) was 7.5%. The asset return assumption set for determining the 2020 FASB ASC 715 expense was 7.0%, after non-investment expenses paid by the Trust. For the past three years, non-investment related expenses have averaged 0.5%. Therefore, the 7.0% return after non-investment expenses assumption is equivalent to a gross assumption of 7.5% (7.0% + 0.5%). An 7.5% rate (before non-investment expenses) falls within an acceptable range of simulated asset returns, between the 40th and 60th percentile. Pension Plan Assets. We maintain target allocation percentages among various asset classes based on an investment policy established for our Pension Plans. The target allocation is designed to achieve long term objectives of return, while mitigating downside risk and considering expected cash flows. Our investment policy is reviewed from time to time to ensure consistency with our long term objective. Our Pension Plan asset allocations at December 31, 2020 and 2019 by asset category are as follows: U.S. Plans Non-U.S. Plans Target Allocation Percentage of Plan Target Allocation Percentage of Plan 2020 2020 2019 2020 2020 2019 Equity 50.0 % 68.1 % 68.1 % 45.0 % 36.2 % 42.1 % Debt 35.0 31.9 31.9 — 50.9 53.7 Other 15.0 — — 55.0 12.9 4.2 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % No pension assets were invested in debt or equity securities of Kraton at December 31, 2020 or 2019. The inputs and methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a description of the primary valuation methodologies used for assets measured at fair value: • Common/Collective Trust Funds: Valued at the net asset value per unit held at year end as quoted by the funds. • Mutual Funds, Real Estate Funds, and Other Funds: Valued at the net asset value of shares held at year end as quoted in the active market. • Insurance contracts for purposes of funding pension benefits. A summary of total investments for our pension plan assets measured at fair value is presented below. See Note 10 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements for a detailed description of fair value measurements and the hierarchy established for Level 1, 2, and 3 valuation inputs. Pension Plan Assets Fair Value Measurements at December 31, 2020 Total Quoted Prices Significant Significant (In thousands) Equity $ 125,359 $ 62,790 $ 62,569 $ — Debt 82,253 14,063 68,190 — Other 9,002 984 — 8,018 Total $ 216,614 $ 77,837 $ 130,759 $ 8,018 ___________________________________________ (1) Included are plan assets of $70.4 million, which are comprised of $37.5 million and $32.9 million in equity and debt, respectively, valued using the net asset value practical expedient measuring the fair value of investments in certain entities that calculate net asset value per share (or its equivalent). Pension Plan Assets Fair Value Measurements at December 31, 2019 Total Quoted Prices Significant Observable Inputs (Level 2) (1) Significant (In thousands) Equity $ 112,094 $ 56,220 $ 55,874 $ — Debt 70,358 12,745 57,613 — Other 2,208 963 944 301 Total $ 184,660 $ 69,928 $ 114,431 $ 301 ___________________________________________ (1) Included are plan assets of $63.0 million, which are comprised of $33.7 million and $29.3 million in equity and debt, respectively, valued using the net asset value practical expedient measuring the fair value of investments in certain entities that calculate net asset value per share (or its equivalent). (b) Other Retirement Benefit Plans. Certain employees were eligible to participate in non-qualified defined benefit restoration plans (“BRP”), which were intended to restore certain benefits under the Pension Plan in the U.S. and the Kraton Savings Plan in the U.S., that would otherwise be lost due to certain limitations imposed by law on tax-qualified plans. (c) Postretirement Benefits Other Than Pensions. Health and welfare benefits are provided to benefit eligible employees in the U.S. who retire from Kraton and were employed by us prior to January 1, 2006. Retirees under the age of 65 are eligible for the same medical, dental, and vision plans as active employees, but with an annual cap on premiums that vary based on years of service and ranges from $7,000 to $10,000 per employee. Our subsidy schedule for medical plans is based on accredited service at retirement. Retirees are responsible for the full cost of premiums for postretirement dental and vision coverage. In general, the plans stipulate that health and welfare benefits are paid as covered expenses as incurred. We accrue the cost of these benefits during the period in which the employee renders the necessary service. Employees who were retirement eligible as of February 28, 2001, have the option to participate in either Shell Chemicals' or Kraton's postretirement health and welfare plans. ASC 715, “Compensation-Retirement Benefits,” requires that we measure the plans’ assets and obligations that determine our funded status at the end of each fiscal year. The 2020 measurement date of the plans’ assets and obligations was December 31, 2020. We are also required to recognize as a component of accumulated other comprehensive income (loss) the changes in funded status that occurred during the year that are not recognized as part of new periodic benefit cost. Based on the funded status of our postretirement benefit plan as of December 31, 2020 and 2019, we reported an increase in our accumulated other comprehensive income (loss) of approximately $2.9 million and $3.1 million, respectively, and a related change in accrued pension obligations. Information concerning the plan obligation, the funded status and amounts recognized in our financial statements and underlying actuarial and other assumptions are as follows: December 31, 2020 2019 (In thousands) Change in benefit obligation: Benefit obligation at beginning of period $ 23,979 $ 22,824 Service cost 291 290 Interest cost 789 941 Benefits and expenses paid (premiums) (921) (2,055) Actuarial (gain) loss 2,031 1,979 Plan amendments — — Benefit obligation at end of period 26,169 23,979 Change in plan assets (1) : Fair value at beginning of period — — Employer contributions 921 2,055 Benefits paid (921) (2,055) Fair value at end of period — — Funded status at end of year $ (26,169) $ (23,979) ___________________________________________ (1) Shell Chemicals has committed to a future cash payment related to retiree medical expenses based on a specified dollar amount per employee, if certain contractual commitments are met. We have recorded an asset of approximately $4.4 million and $5.7 million as our estimate of the present value of this commitment as of December 31, 2020 and 2019, respectively. December 31, 2020 2019 (In thousands) Amounts recognized in the balance sheet: Current liabilities $ (1,443) $ (1,446) Noncurrent liabilities (24,726) (22,533) $ (26,169) $ (23,979) Amounts recognized in accumulated other comprehensive loss: Prior service cost $ (7,507) $ (9,254) Net actuarial loss $ 10,977 $ 9,833 $ 3,470 $ 579 Estimated Future Cash Flows. The following employer contributions and benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Retiree Medical Plan (In thousands) Employer Contributions 2021 Employer contributions $ 1,461 Benefit Payments 2021 $ 1,461 2022 1,458 2023 1,449 2024 1,439 2025 1,459 Years 2026-2030 7,190 Total Benefit Payments $ 14,456 Net periodic benefit costs consist of the following components: Years Ended December 31, 2020 2019 2018 (In thousands) Service cost $ 291 $ 290 $ 490 Interest cost 789 941 1,224 Amortization of prior service cost (1,747) (1,747) (582) Amortization of net actuarial loss 887 621 742 Net periodic benefit costs $ 220 $ 105 $ 1,874 December 31, 2020 2019 Weighted average assumptions used to determine benefit obligations: Measurement date 12/31/2020 12/31/2019 Discount rate 2.55 % 3.34 % Rates of increase in salary compensation level N/A N/A Weighted average assumptions used to determine net periodic benefit cost: Discount rate 3.34 % 4.36 % Rates of increase in salary compensation level N/A N/A Expected long-term rate of return on plan assets N/A N/A December 31, 2020 2019 Assumed Pre-65 health care cost trend rates: Health care cost trend rate assumed for next year 7.00 % 7.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2026 2026 December 31, 2020 2019 Assumed Post-65 health care cost trend rates: Health care cost trend rate assumed for next year N/A N/A Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A Year that the rate reaches the ultimate trend rate N/A N/A Discount rates are determined annually and are based on rates of return of high-quality long-term fixed income securities currently available and expected to be available during the maturity of the postretirement benefit plan. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1.0% change in assumed health care cost trend rates would have the following effect (in thousands): 1% Increase 1% Decrease Effect on total of service and interest cost components $ 1,576 $ (2,382) Effect on postretirement benefit obligation $ 41,919 $ (55,903) (d) Kraton Savings Plan. The Kraton Savings Plan, as adopted on March 1, 2001, covers substantially all U.S. employees, including executive officers. Through automatic payroll deduction, participants have the option to defer up to 60% of eligible earnings in any combination of pre-tax and/or post-tax contributions, subject to annual dollar limitations set forth in the Internal Revenue Code. Under this plan, we have two types of employer contributions: (1) We make standard matching contributions of 50.0% of the first 6.0% contributed by the employee from start of employment and we make matching contributions of 100.0% of the first 6.0% contributed by the employee after completing five years of service. (2) We make enhanced employer contributions of 4.0% for all employees. For our employees who were employed as of February 28, 2001, and who were previously employed by Shell Chemicals, we recognize their Shell Chemicals years of service for purposes of determining employer contributions under our Plan. Our contributions to the plan for the years ended December 31, 2020, 2019, and 2018, were $10.6 million, $9.7 million, and $9.2 million, respectively. |
Industry Segment and Foreign Op
Industry Segment and Foreign Operations | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Industry Segment and Foreign Operations | Industry Segment and Foreign Operations Commensurate with the acquisition on January 6, 2016, Arizona Chemical became a separate operating segment with our operations managed through two operating segments: (i) Polymer segment and (ii) Chemical segment. In accordance with the provisions of ASC 280, “ Segment Reporting ,” our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. • Polymer Segment . Our Polymer segment is comprised of our SBCs and other engineered polymers business. • Chemical Segment . Our Chemical segment is comprised of our pine-based specialty products business. Our chief operating decision maker uses operating income (loss) as the primary measure of each segment's operating results in order to allocate resources and in assessing the company's performance. In accordance with ASC 280, Segment Reporting , we have presented operating income (loss) for each segment. We currently do not have sales between segments. Operating Results by Segment Year Ended December 31, 2020 Year Ended December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 857,558 $ 705,592 $ 1,563,150 $ 1,052,968 $ 751,468 $ 1,804,436 Cost of goods sold 627,297 537,982 1,165,279 820,410 569,597 1,390,007 Gross profit 230,261 167,610 397,871 232,558 181,871 414,429 Operating expenses: Research and development 29,972 10,771 40,743 29,392 11,681 41,073 Selling, general, and administrative 90,074 71,870 161,944 86,025 63,775 149,800 Depreciation and amortization 52,910 73,112 126,022 59,151 77,020 136,171 Impairment of goodwill — 400,000 400,000 — — — Gain on insurance proceeds — — — — (32,850) (32,850) Loss on disposal of fixed assets 503 247 750 647 126 773 Operating income (loss) $ 56,802 $ (388,390) (331,588) $ 57,343 $ 62,119 119,462 Other income (expense) 995 3,339 Disposition and exit of business activities 175,189 — Loss on extinguishment of debt (40,843) (3,521) Earnings of unconsolidated joint venture 457 506 Interest expense, net (57,930) (75,782) Income (loss) before income taxes $ (253,720) $ 44,004 Year Ended December 31, 2018 Polymer Chemical Total (In thousands) Revenue $ 1,221,586 $ 790,089 $ 2,011,675 Cost of goods sold 872,506 558,563 1,431,069 Gross profit 349,080 231,526 580,606 Operating expenses: Research and development 28,957 12,339 41,296 Selling, general, and administrative 89,753 64,144 153,897 Depreciation and amortization 71,006 70,404 141,410 Gain on insurance proceeds — (8,900) (8,900) Loss on disposal of fixed assets 202 1,967 2,169 Operating income (loss) $ 159,162 $ 91,572 250,734 Other expense (3,472) Loss on extinguishment of debt (79,866) Earnings of unconsolidated joint venture 471 Interest expense, net (93,772) Income (loss) before income taxes $ 74,095 Goodwill The Company conducts an annual impairment review of goodwill on October 1st of each year, unless events occur which trigger the need for an interim impairment review. During the third quarter of 2020, the Company updated its annual long-range plan, taking into consideration the following: • a continued decline in rosin margins, resulting from excess hydrocarbon supply, negatively affecting our adhesives applications • a significant decline in gum turpentine pricing, which began in the second half of 2019, resulting in lower CST margins • the impacts of COVID-19, which weakened demand fundamentals, including applications such as oilfield, tires, and automotive These and other factors were considered indicators of impairment of our Chemical segment’s goodwill. We performed an interim impairment test of goodwill as of September 30, 2020. As a result, we recorded a non-cash impairment charge of $400.0 million within the Chemical segment. The Company updated this assessment as of October 1, 2020 (our annual impairment date) utilizing a qualitative approach, and noted no impairment indicators during the fourth quarter of 2020. There can be no assurances that future sustained declines in macroeconomic or business conditions affecting our industry will not occur, which could result in goodwill impairment charges in future periods. The Company estimated the fair value using both an income and market approach. The determination of the fair value using the income approach requires management to make significant estimates and assumptions related to forecasts of future revenues, profit margins, and discount rates. The determination of the fair value using the market approach requires management to make significant assumptions related to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) multiples. The Company estimates future cash flows based upon EBITDA projections within our long-range plan, discounted at an appropriate risk-adjusted rate. Under the income approach, the fair value for Chemical segment was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. We used our internal forecast, including our annual long-range plan, updated for recent events, to estimate future cash flows, including a terminal value. Our internal forecast includes assumptions about future commodity pricing and expected demand for goods and services. Due to the inherent uncertainties involved in making estimates and assumptions, actual results may differ from those assumed in our forecast. Valuations using the market approach were derived from metrics of selected publicly traded peer companies. The selection of peer companies was based on the markets in which the Chemical segment operates, considering risk profiles, size, geography, and diversity of products and services. We derived our risk-adjusted rate using a capital asset pricing model and analyzing published rates for industries and comparable businesses similar to our Chemical segment taking into account the cost of equity and debt. We used a risk-adjusted rate that is commensurate with the risks and uncertainties inherent in the respective businesses and in our internally developed forecast. Changes in goodwill from January 1, 2020 through December 31, 2020 were as follows: Chemical (In thousands) Balance at January 1, 2020 $ 772,418 Goodwill impairment charge (400,000) Foreign currency translation 2,643 Balance at December 31, 2020 $ 375,061 Long-Lived Assets Including Goodwill and Total Assets December 31, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Property, plant, and equipment, net $ 523,067 $ 419,636 $ 942,703 $ 526,692 $ 399,248 $ 925,940 Investment in unconsolidated joint venture $ 12,723 $ — $ 12,723 $ 11,971 $ — $ 11,971 Goodwill $ — $ 375,061 $ 375,061 $ — $ 772,418 $ 772,418 Total assets $ 1,104,954 $ 1,356,003 $ 2,460,957 $ 1,097,691 $ 1,734,694 $ 2,832,385 During the years ended December 31, 2020, 2019, and 2018, no single customer accounted for 10.0% or more of our total revenue. For geographic reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. Long-lived assets consist primarily of property, plant, and equipment, which are attributed to the geographic location in which they are located and presented at historical cost. Revenue by Geographic Region December 31, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue: United States $ 311,129 $ 289,989 $ 601,118 $ 352,735 $ 317,347 $ 670,082 Germany 89,304 44,439 133,743 107,661 51,598 159,259 All other countries 457,125 371,164 828,289 592,572 382,523 975,095 $ 857,558 $ 705,592 $ 1,563,150 $ 1,052,968 $ 751,468 $ 1,804,436 December 31, 2018 Polymer Chemical Total (In thousands) Revenue: United States $ 412,308 $ 325,193 $ 737,501 Germany 141,451 53,908 195,359 All other countries 667,827 410,988 1,078,815 $ 1,221,586 $ 790,089 $ 2,011,675 Long-Lived Assets by Geographic Region December 31, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Long-lived assets, at cost: United States $ 591,361 $ 413,787 $ 1,005,148 $ 568,710 $ 385,235 $ 953,945 Taiwan 191,726 — 191,726 183,963 — 183,963 France 156,410 15,489 171,899 144,785 13,153 157,938 Germany 79,388 6,057 85,445 70,617 5,170 75,787 Sweden — 78,329 78,329 — 64,281 64,281 All other countries 68,833 73,602 142,435 69,320 59,903 129,223 $ 1,087,718 $ 587,264 $ 1,674,982 $ 1,037,395 $ 527,742 $ 1,565,137 Our capital expenditures, excluding software and other intangibles, for the Polymer segment, excluding capital expenditures by the KFPC joint venture, were $36.5 million and $58.7 million during the year ended December 31, 2020 and 2019, respectively, and capital expenditures, excluding software and other intangibles, for our Chemical segment were $37.4 million and $45.0 million during the year ended December 31, 2020 and 2019, respectively. Impact of Hurricane Michael During the year ended December 31, 2019, we finalized our insurance claims with our carrier related to Hurricane Michael. As result, we received payments from our carrier of $32.9 million, of which $1.1 million was received in 2018 and deferred into 2019 when realized, which has been recorded as a gain on insurance proceeds within the Consolidated Statement of Operations. This brings our total insurance proceeds to $41.8 million to date, which offsets the lost margin and reimburses us for the direct costs and capital expenditures known to date. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We own a 50.0% equity investment in an SBC manufacturing joint venture in Kashima, Japan. Our outstanding payables were $14.8 million and $16.4 million as of December 31, 2020 and 2019, respectively, which were recorded in “Due to related party” liability on the Consolidated Balance Sheets. Our total purchases from the joint venture were $28.4 million, $33.0 million, and $35.4 million for the years ended December 31, 2020, 2019, and 2018, respectively. We own a 50% variable interest in KFPC, an HSBC manufacturing joint venture in Mailiao, Taiwan. The KFPC joint venture is fully consolidated in our financial statements, and our joint venture partner, Formosa Petrochemical Corporation (“FPCC”), is a related party affiliate. Under the terms of the joint venture agreement, FPCC is to provide certain site services and raw materials to KFPC. Additionally, we purchase certain raw materials from FPCC for our other manufacturing locations. Our outstanding payables were $2.3 million and $1.1 million as of December 31, 2020 and 2019, respectively, which were recorded in “Due to related party” liability on the Consolidated Balance Sheets. Our total purchases from this joint venture were $47.6 million, $48.5 million, and $47.2 million for the years ended December 31, 2020, 2019, and 2018, respectively. See Note 16 Variable Interest Entity , for further discussion related to the KFPC joint venture. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity We hold a variable interest in a joint venture with FPCC to own and operate a 30 kiloton HSBC plant at FPCC’s petrochemical site in Mailiao, Taiwan. Kraton and FPCC are each 50% owners of the joint venture company, KFPC. Under the provisions of an offtake agreement with KFPC, we have exclusive rights to purchase all production from KFPC. Additionally, the agreement requires us to purchase a minimum of 80% of the plant production capacity each year at a defined fixed margin. This offtake agreement represents a variable interest that provides us the power to direct the most significant activities of KFPC and exposes us to the economic variability of the joint venture. As such, we have determined that we are the primary beneficiary of this variable interest entity, and therefore, we have consolidated KFPC in our financial statements and reflected FPCC’s 50% percent ownership as a noncontrolling interest. The following table summarizes the carrying amounts of assets and liabilities as of December 31, 2020 and 2019 for KFPC before intercompany eliminations. See Note 9 Long Term Debt , for further discussion related to the KFPC Loan Agreement executed on July 17, 2014. December 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 3,097 $ 10,402 Other current assets 17,304 14,847 Property, plant, and equipment 150,838 155,153 Intangible assets 7,959 8,133 Long-term operating lease assets, net 7,178 7,044 Other long-term assets 6,510 2,147 Total assets $ 192,886 $ 197,726 Current portion of long-term debt $ 72,156 $ 52,961 Current liabilities 5,209 12,801 Long-term debt 17,559 49,391 Deferred income taxes 1,984 — Long-term operating lease liabilities 6,700 6,603 Total liabilities $ 103,608 $ 121,756 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following table sets forth a summary of our quarterly financial information for each of the four quarters ended December 31, 2020 and December 31, 2019: First Quarter (1) Second Quarter (2) Third Quarter (3) Fourth Quarter (4) Total (In thousands, except per share data) 2020 Revenue $ 427,269 $ 355,679 $ 373,438 $ 406,764 $ 1,563,150 Gross profit $ 119,200 $ 93,044 $ 68,754 $ 116,873 $ 397,871 Operating income $ 28,241 $ 12,831 $ (406,771) $ 34,111 $ (331,588) Net income (loss) attributable to Kraton $ 208,086 $ (7,968) $ (403,794) $ (21,926) $ (225,602) Earnings (loss) per common share Basic $ 6.55 $ (0.25) $ (12.67) $ (0.69) $ (7.08) Diluted $ 6.47 $ (0.25) $ (12.67) $ (0.69) $ (7.08) Weighted average common shares outstanding Basic 31,587 31,782 31,787 31,798 31,746 Diluted 31,949 31,782 31,787 31,798 31,746 2019 Revenue $ 456,411 $ 495,280 $ 444,221 $ 408,524 $ 1,804,436 Gross profit $ 107,002 $ 129,202 $ 101,279 $ 76,946 $ 414,429 Operating income (loss) $ 35,135 $ 56,168 $ 38,103 $ (9,944) $ 119,462 Net income (loss) attributable to Kraton $ 12,668 $ 41,208 $ 18,693 $ (21,264) $ 51,305 Earnings (loss) per common share Basic $ 0.40 $ 1.29 $ 0.59 $ (0.67) $ 1.61 Diluted $ 0.39 $ 1.28 $ 0.58 $ (0.67) $ 1.60 Weighted average common shares outstanding Basic 31,633 31,692 31,486 31,516 31,581 Diluted 31,901 32,017 31,823 31,516 31,881 _______________________________________ (1) The first quarter of 2020 was positively impacted by a $175.2 million gain on the sale of our Cariflex business. The first quarter of 2019 was positively impacted by a $11.1 million gain on insurance proceeds. (2) The second quarter of 2019 was positively impacted by a $7.5 million gain on insurance proceeds. (3) The third quarter of 2020 was negatively impacted by a $400.0 million goodwill impairment. The third quarter of 2019 was positively impacted by a $14.3 million gain on insurance proceeds. (4) The fourth quarter of 2020 was negatively impacted by a $25.9 million loss on extinguishment of debt. The fourth quarter of 2019 was negatively impacted by approximately $5.0 million largely related to the process to review strategic alternatives for our Cariflex business and a $3.7 million loss on extinguishment of debt. Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per share information may not equal annual basic and diluted earnings per share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsWe have evaluated significant events and transactions that occurred after the balance sheet date and determined that there were no events or transactions that require recognition or disclosure in our consolidated financial statements for the period ended December 31, 2020. |
SCHEDULE II_VALUATION AND QUALI
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES For the Years Ended December 31, 2020, 2019, and 2018 (In thousands) Balance Net Write-offs Balance Allowance for doubtful accounts: Year Ended December 31, 2020 $ 434 $ 164 $ — $ 598 Year Ended December 31, 2019 $ 784 $ (117) $ (233) $ 434 Year Ended December 31, 2018 $ 824 $ (40) $ — $ 784 Balance Net Foreign Balance Inventory reserves: Year Ended December 31, 2020 $ 8,923 $ 22 $ 23 $ 8,968 Year Ended December 31, 2019 $ 8,951 $ 6 $ (34) $ 8,923 Year Ended December 31, 2018 $ 11,452 $ (2,274) $ (227) $ 8,951 |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . The accompanying consolidated financial statements are for us and our consolidated subsidiaries, each of which is a wholly-owned subsidiary, except our 50% investment in our joint venture, Kraton Formosa Polymers Corporation (“KFPC”), located in Mailiao, Taiwan. KFPC is a variable interest entity for which we have determined that we are the primary beneficiary and, therefore, have consolidated into our financial statements. Our 50% investment in our joint venture located in Kashima, Japan, is accounted for under the equity method of accounting. All significant intercompany transactions have been eliminated. Significant Accounting Policies . These financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to fairly present our results of operations and financial position. |
Use of Estimates | Use of Estimates . The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include: • the useful lives of long-lived assets; • allowances for doubtful accounts and sales returns; • valuation of goodwill; • the valuation of derivatives, deferred taxes, property, plant and equipment, inventory, share-based compensation; and deferred income; and • liabilities for employee benefit obligations, environmental matters, asset retirement obligations, income tax uncertainties, and other contingencies. |
Cash and Cash Equivalents | Cash and Cash Equivalents . It is our policy to invest our excess cash in investment instruments whose value is not subject to market fluctuations, such as bank deposits or certificates of deposit. Other permitted investments include commercial paper of major U.S. corporations with ratings of A1 by Standard & Poor’s Ratings Group or P1 by Moody’s Investor Services, Inc., loan participations of major U.S. corporations with a short term credit rating of A1/P1 and direct obligations of the U.S. government or its agencies. We consider all investments having a remaining maturity, at the time of purchase, of three months or less to be cash equivalents. |
Receivables | Receivables. Receivables are recorded at the invoiced amount once the performance obligation has been met and do not bear interest. The allowance for doubtful accounts represents our best estimate of the amount of probable credit losses in our existing receivables and is determined based on our assessment of the credit worthiness of individual customers, historical write-off experience, and global economic data. We review the allowance for doubtful accounts quarterly. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. We do not have significant off-balance sheet credit exposure related to our customers. |
Inventories of Products | Inventories of Products . Inventory values include all costs directly associated with manufacturing products and are stated at the lower of cost or net realizable value, primarily determined on a first-in, first-out basis. We evaluate the carrying cost of our inventory on a quarterly basis for this purpose. If the cost of the inventories exceeds their net realizable value, provisions are made for the difference between the cost and the net realizable value. See Note 7 Detail of Certain Balance Sheet Accounts to the consolidated financial statements. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities . We account for derivatives and hedging activities in accordance with ASC 815, Derivatives and Hedging, which requires entities to recognize all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. For all hedging relationships that qualify as derivatives under ASC 815, we formally document the hedging relationship and our risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. We designate net investment hedges as economic hedges of the certain net investment in foreign subsidiaries. The gain or loss on such hedging derivative instruments (or the foreign currency transaction gain or loss on the nonderivative hedging instrument) that is designated as, and is effective as, an economic hedge of the net investment in a foreign subsidiary is reported in the same manner as a translation adjustment to the extent it is effective. Any hedge ineffectiveness is recognized in earnings during the period incurred. |
Property, Plant, and Equipment | Property, Plant, and Equipment. Property, plant, and equipment are stated at cost, net of accumulated depreciation. Major renewals and improvements which extend the useful lives of equipment are capitalized. Repair and maintenance costs are expensed as incurred. Disposals are removed at carrying cost less accumulated depreciation with any resulting gain or loss reflected in earnings. We capitalize interest costs which are incurred as part of the cost of constructing major facilities and equipment. See Note 14 Industry Segment and Foreign Operations to the consolidated financial statements. Depreciation is recognized using the straight-line method over the following estimated useful lives: Machinery and equipment 20 years Building and land improvements 20 years Manufacturing control equipment 10 years Office equipment 5 years Research equipment and facilities 5 years Vehicles 5 years Computer hardware and information systems 3 years |
Major Maintenance Activities | Major Maintenance Activities. Major maintenance is expensed as incurred. |
Goodwill | Goodwill. We record goodwill when the purchase price of an acquired business exceeds the fair value of the net identifiable assets acquired. Goodwill is allocated to the reporting unit level based on the estimated fair value at the date of acquisition. Goodwill was recorded as a result of the Arizona Chemical Acquisition and is recorded in the Chemical operating segment. Goodwill is tested for impairment at the reporting unit level annually or more frequently as deemed necessary. Our annual measurement date for testing impairment is October 1st. The assessment is performed in three steps. We assess qualitative factors, or step zero, to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is more likely than not that an impairment indicator exists utilizing the qualitative method, we then utilize step one to test for impairment via estimating the fair value of our reporting units utilizing a combination of market and income approaches. This step one provides a fair value to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill. The estimated fair value of our reporting units are subject to a number of estimates, including discount rates, revenue growth rates, cash flow assumptions, and market information. If potential impairments are identified, we perform step two to measure the impairment loss through a full fair value allocation of the assets and liabilities of the reporting unit utilizing the acquisition method of accounting. During the third quarter of 2020, we performed an interim impairment test of goodwill as of September 30, 2020. As a result, we recorded a non-cash impairment charge of $400.0 million within the Chemical segment. The Company updated this assessment as of October 1, 2020 (our annual impairment date) utilizing a qualitative approach as outlined in ASC 350-20-35-38, and noted no impairment indicators during the fourth quarter of 2020. Therefore, the company’s annual assessment concluded that the fair value of the reporting unit exceeded the book value of the reporting unit, including goodwill, and thus there was no impairment recognized in the fourth quarter of 2020. For further discussion on the Company’s goodwill impairment see Note 14 Industry Segment and Foreign Operations . |
Asset Retirement Obligation | Asset Retirement Obligations (“ARO”). We have determined that we have contractual or regulatory requirements to decommission and perform other remediation for many of our manufacturing and research facilities upon retirement. We account for ARO’s pursuant to the provisions of ASC 410-20, Asset Retirement Obligations. |
Long-Lived Assets | Long-Lived Assets. In accordance with the Impairment or Disposal of Long-Lived Assets Subsections of ASC 360-10, Property, Plant, and Equipment—Overall, |
Intangible Assets | Intangible Assets. Intangible assets are stated at cost, net of accumulated amortization. We have intangible assets related to technology, customer relationships, tradenames/trademarks, and software as detailed in Note 6 Detail of Certain Balance Sheet Accounts to the consolidated financial statements. See Note 7 Detail of Certain Balance Sheet Accounts |
Pension and Other Postretirement Plans | Pension and Other Postretirement Plans. We sponsor noncontributory defined benefit pension plans (“Pension Plans”) and a post-retirement benefit plan (“Retiree Medical Plan”). We annually evaluate significant assumptions related to the benefits and obligations of these plans. Our estimation of the projected benefit obligations and related benefit expense requires that certain assumptions be made regarding such variables as expected return on plan assets, discount rates, rates of future compensation increases, estimated future employee turnover rates and retirement dates, distribution election rates, mortality rates, retiree utilization rates for health care services, and health care cost trend rates. The determination of the appropriate assumptions requires considerable judgment concerning future events and has a significant impact on the amount of the obligations and expense recorded. We rely in part on actuarial studies when determining the appropriateness of certain of the assumptions used in determining the benefit obligations and the annual expenses for these plans. |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture. Our 50.0% equity investment in a manufacturing joint venture at our Kashima site is accounted for under the equity method with our share of the operating results of the joint venture classified within earnings of unconsolidated joint venture. |
Debt Issuance Costs | Debt Issuance Costs. We capitalize financing fees and other costs related to issuing long-term debt. We amortize these costs using the effective interest method, except for costs related to revolving debt, which are amortized using the straight-line method. The amortization of debt issuance costs is recorded in interest expense. |
Contingencies | Contingencies. We are routinely involved in litigation, claims, and disputes incidental to our business. Professional judgment is required to classify the likelihood of these contingencies occurring. All relevant information that can be acquired concerning the uncertain set of circumstances needs to be obtained and used to determine the probability classification. A contingency is categorized as probable, reasonably possible, or remote. A contingency is classified as probable if the future event or events are likely to occur. For the probable contingencies, a loss is accrued and disclosed as of the date of the financial statements if it is both probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. A reasonably possible contingency occurs if the chance of the future event or events happening is more than remote but less than likely (reasonably possible but not probable). We disclose the loss contingencies in the footnotes to the financial statements but do not recognize any liability. A remote contingency is one where the chance of the future event or events occurring is slight. We neither accrue for nor disclose the liability in the notes to the financial statements. For loss contingencies, our accounting policy is to expense legal costs as incurred. |
Environmental Costs | Environmental Costs. Environmental costs are expensed as incurred unless the expenditures extend the economic useful life of the relevant assets. Costs that extend the economic useful life of assets are capitalized and depreciated over the remaining life of those assets. Liabilities are recorded when environmental assessments, or remedial efforts are probable, and the cost can be reasonably estimated. |
Disclosures about Fair Value of Financial Instruments | Disclosures about Fair Value of Financial Instruments. For cash and cash equivalents, receivables, accounts payable, and certain accrued expenses, the carrying amount approximates fair value due to the short maturities of these instruments. For long-term debt instruments and interest rate swap agreements, fair value is estimated based upon market values (if applicable) or on the current interest rates available to us for debt with similar terms and remaining maturities. |
Revenue Recognition | Revenue Recognition. Revenue is recognized in accordance with the provisions of ASC 606, Revenue from Contracts with Customers, Revenue is recognized when performance obligations under the terms of a contract with our customer are satisfied. Generally, this occurs at a point in time when control of the product transfers to the customer. Our standard terms of delivery are included in our contracts of sale, order confirmation documents, and invoices. As such, all revenue is considered revenue recognized from contracts with customers and we do not have other sources of revenue. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Revenue is recognized net of sales tax, value-added taxes, and other taxes. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. We do not have any material significant payment terms as payment is received at or shortly after the point of sale. Certain customers may receive cash-based incentives (including rebates and price supports), which are accounted for as variable consideration. We estimate rebates and price supports based on the expected amount to be provided to customers and reduce revenues recognized once the performance obligation has been met. Sales commissions are expensed in cost of goods sold once the performance obligation with the associated sale has been met. We do not have significant changes in our estimates for variable considerations. We have deferred revenue of $175.5 million, of which $24.2 million is in other payables and accruals, related to contractual commitments with customers for which the performance obligation will be satisfied over time, which will range from one Disposition and Exit of Business Activities for further discussion of the IRSA. Occasionally, we enter into bill-and-hold contracts, where we invoice the customer for products even though we retain possession of the products until a point in time in the future when the products will be shipped to the customer. In these contracts, the primary performance obligation is satisfied at a point in time when the product is segregated from our general inventory, it is ready for shipment to customer, and we do not have the ability to use the product or direct it to another customer. Additionally, we have a secondary performance obligation related to custodial costs, including storage and freight, which is satisfied over time once the product has been delivered to the customer. During the the years ended December 31, 2020, 2019, and 2018, we recognized $4.1 million, $5.6 million, and $7.3 million, respectively, of revenue related to these arrangements. |
Research and Development Expenses | Research and Development Expenses. Research and development costs are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation . Share-based compensation cost is measured at the grant date based on the fair value of the award. We recognize these costs using the straight-line method over the requisite service period. Upon adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 817) , we now recognize actual forfeitures by reducing the employee share-based compensation expense in the same period as the forfeitures occur. We estimate the fair value of performance-based restricted share units using a combination of Monte Carlo simulations and internal metrics. The expected term represents the period of time that performance share units granted are expected to be outstanding. Our expected volatilities are based on historical volatilities for Kraton and the members of the peer group. The risk free interest rate for the periods within the contractual life of the performance-based restricted share units is equal to the yield, as of the valuation date, of the zero coupon U.S. Treasury STRIPS that have a remaining term equal to the length of the remaining performance period. The expected dividend yield is assumed to be zero, which is the equivalent of reinvesting dividends in the underlying company's stock. Forfeitures are recognized when they occur. See Note 6 Share-Based Compensation to the consolidated financial statements. |
Leases | Leases. Our leases, with a term greater than one year, are classified as either operating or financing and carried at fair value on the balance sheet as lease assets acquired and liabilities assumed, except for capital leases in existence prior to our adoption of ASC 842, Leases . Capital leases in existence at the time of our adoption of ASC 842, Leases, are accounted for in accordance with ASC 840, Leases . Our contracts, with a term greater than one year, are classified as leases if 1) there is an identified asset and contract term, 2) we have the right to substantially all the economic benefit of the asset, and 3) we have the right to direct how and for what purpose the identified asset is used or we have the right to operate the asset throughout the period of use without changing operations of the asset. We classify leases as financing under any of the following circumstances: • ownership of the underlying asset is transferred to us by the end of the lease term; • the lease grants us an option to purchase the underlying asset that it is reasonably certain to be exercised; • the lease term is for the major part of the remaining economic life of the underlying asset; • the present value of the lease payments and residual value guarantee equals or exceeds substantially all of the fair value of the underlying asset; or • the underlying asset is so specialized that it is expected to have no use to the lessor at the end of the lease term. Our lease policy follows ASC 842, Leases, |
Income Taxes | Income Taxes. We conduct operations in separate legal entities in different jurisdictions. As a result, income tax amounts are reflected in these consolidated financial statements for each of those jurisdictions. Income taxes are recorded utilizing an asset and liability approach. This method gives consideration to the future tax consequences associated with the differences between the financial accounting and tax basis of the assets and liabilities as well as the ultimate realization of any deferred tax asset resulting from such differences. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. In assessing the realizability of deferred tax assets, we consider all available evidence both positive and negative, to determine whether a valuation allowance is necessary relative to net deferred tax assets. In making this determination, we consider the current year and two preceding years for potential cumulative losses, and sources of income for sufficient taxable income. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances. |
Foreign Currency Translation and Foreign Currency Exchange Rates | Foreign Currency Translation and Foreign Currency Exchange Rates. Financial statements of our operations outside the U.S. where the local currency is considered to be the functional currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue, expenses, gains, losses, and cash flows. The effects of translating such operations into U.S. dollars are included as a component of accumulated other comprehensive income (loss). |
Adoption of Accounting Standards and New Accounting Standards to be Adopted in Future Periods | Adoption of Accounting Standards We have implemented all new accounting pronouncements that are in effect and that management believes would materially impact our financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases , by issuing ASU 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU 2018-10, Codification Improvements to Topic 842, Leases ; and ASU 2018-11, Targeted Improvements . The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than twelve months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application. The new standard provides a number of optional practical expedients in transition. We elected the following practical expedients: (1) “package of practical expedients”, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs; (2) the short-term lease recognition exemption for all leases that qualify; and (3) the practical expedient to not separate lease and non-lease components for all of our leases. This standard had a material effect on our financial statements. The most significant effects relate to: (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our equipment, building, and vehicle operating leases; (2) the derecognition of existing assets and liabilities for straight line lease accounting under ASC 840, Leases ; and (3) providing significant new disclosures about our leasing activities. On adoption, we recognized additional operating liabilities of $70.9 million, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. See Note 12 Commitments and Contingencies to the consolidated financial statements. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2016-13 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2016-13 effective January 1, 2020. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Our analysis of ASU 2017-04 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2017-04 effective January 1, 2020. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This standard is effective for fiscal years beginning after December 15, 2019. Our analysis of ASU 2018-18 was completed during 2019, and there is no material change to our financial position, results of operations, and cash flows. We adopted ASU 2018-18 effective January 1, 2020. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard provides practical expedients and exception for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. This standard is applicable to our contracts and hedging relationships that reference LIBOR. The amendments may be applied through December 31, 2022. We will apply this guidance to transactions and modifications of these arrangements as appropriate. New Accounting Standards to be Adopted in Future Periods In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted for any interim period after issuance of the ASU. Our evaluation of this standard is currently ongoing, and we expect to adopt ASU 2019-12 effective on January 1, 2021. |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated useful lives of property, plant and equipment | Depreciation is recognized using the straight-line method over the following estimated useful lives: Machinery and equipment 20 years Building and land improvements 20 years Manufacturing control equipment 10 years Office equipment 5 years Research equipment and facilities 5 years Vehicles 5 years Computer hardware and information systems 3 years |
Schedule of intangible assets | Intangible assets are amortized using the straight-line method over the asset's estimated useful life as follows: Technology 15 years Customer relationships 15 years Tradenames/trademarks 15 years Software 3 - 10 years |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | We disaggregate our revenue by segment product lines, which is how we market our products and review results of operations. The following tables disaggregate our segment revenue by major product lines: Years Ended December 31, 2020 2019 2018 Revenue (In thousands) Performance Products $ 459,906 $ 531,437 $ 631,728 Specialty Polymers 316,206 334,726 408,628 Cariflex 36,930 186,266 180,814 Isoprene Rubber 42,986 — — Other 1,530 539 416 Polymer Product Line Revenue $ 857,558 $ 1,052,968 $ 1,221,586 Years Ended December 31, 2020 2019 2018 Revenue (In thousands) Adhesives $ 257,855 $ 262,941 $ 280,867 Performance Chemicals 406,152 438,146 461,100 Tires 41,585 50,381 48,122 Chemical Product Line Revenue $ 705,592 $ 751,468 $ 790,089 |
Schedule of Contract with Customer, Asset and Liability | December 31, 2020 December 31, 2019 (In thousands) Contract receivables (1) $ 179,805 $ 190,093 Contract liabilities (2) $ 175,511 $ 12,456 ____________________________________________________ (1) Contract receivables are recorded within receivables, net of allowances on our Consolidated Balance Sheets. This includes $20.4 million of contract receivables related to the Cariflex business recorded as current assets held for sale as of December 31, 2019. (2) Our contract liability increased by $163.1 million largely attributable to consideration received as part of the sale of our Cariflex business and entering into a multi-year IRSA with Daelim. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Disposal Groups | The following are the major classes of assets and liabilities for this business that were reflected in our balance sheet as assets and liabilities held for sale at December 31, 2019. December 31, 2019 (In thousands) ASSETS Receivables, net of allowances of $51 $ 20,397 Inventories of products, net 27,030 Inventories of materials and supplies, net 965 Prepaid expenses 1,913 Other current assets 1,051 Property, plant, and equipment, less accumulated depreciation of $27,146 26,891 Other long-term assets 93 Long-term operating lease assets, net 74 Total assets $ 78,414 LIABILITIES Accounts payable-trade 9,180 Other payables and accruals 5,669 Long-term operating lease liabilities 3 Total liabilities 14,852 Net assets $ 63,562 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of unrecognized compensation expense | Our unrecognized compensation expense related to our share-based awards was as follows as of December 31, 2020: Unrecognized Compensation Expense Weighted Average Remaining Recognition Period (In thousands) Restricted stock awards $ 165 0.15 Restricted stock units $ 4,484 1.86 Performance stock units $ 4,614 1.61 |
Schedule of option activity | Non-qualified option activities for the year ended December 31, 2020 are as follows: Options Weighted Average Exercise Price Aggregate (1) Weighted Average Remaining Contractual Term (In thousands) (In thousands) Outstanding at December 31, 2019 387 $ 30.31 Granted — — Exercised (3) 28.42 Forfeited — — Expired (36) 28.68 Outstanding and exercisable at December 31, 2020 348 $ 30.49 $ 299 1.44 ________________________________________________ (1) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option as of December 31, 2020. |
Summary of additional information regarding outstanding and exercisable options | Years Ended December 31, 2020 2019 2018 (In thousands) Options exercised 3 116 173 Total intrinsic value of options exercised $ — $ 623 $ 1,050 |
Schedule of non-vested restricted stock awards, restricted share units | The following table represents the non-vested restricted stock awards and restricted stock units granted, vested, and forfeited during 2020. Restricted Stock Awards Restricted Stock Units Shares Weighted- Shares Weighted- (In thousands) (In thousands) Non-vested shares at December 31, 2019 204 $ 35.19 249 $ 32.74 Granted 78 10.21 360 10.45 Vested (198) 21.02 (127) 30.37 Forfeited (12) 45.10 (37) 20.83 Non-vested shares at December 31, 2020 73 $ 45.13 445 $ 17.34 |
Schedule of non-vested performance-based units activity | The following table represents the non-vested performance share units granted, vested, and forfeited during 2020. Shares Weighted- Aggregate (1) Weighted Average Remaining Contractual Term (In thousands) (In thousands) Non-vested shares at December 31, 2019 378 $ 43.08 Granted 358 8.53 Vested — — Forfeited (188) 28.85 Non-vested shares at December 31, 2020 548 $ 23.25 $ 15,446 1.61 ________________________________________________ (1) The intrinsic value of a performance share unit is the amount by which the market value of the underlying performance share unit exceeds the grant date value of the performance share unit as of December 31, 2020. |
Summary of weighted-average assumptions for performance shares pricing | The weighted average fair value using a Monte Carlo simulation model and the corresponding weighted average assumptions for the performance share units granted were as follows: 2020 2019 2018 Risk-free interest rate 0.84 % 2.51 % 2.36 % Expected dividend yield — % — % — % Expected volatility 50.9 % 32.2 % 36.6 % Fair value per performance share award $ 6.46 $ 60.68 $ 61.30 |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of certain balance sheet accounts - assets | December 31, 2020 2019 (In thousands) Inventories of products: Finished products $ 240,021 $ 255,406 Work in progress 3,074 4,589 Raw materials 84,039 80,647 Inventories of products, gross 327,134 340,642 Inventory reserves (8,249) (8,185) Inventories of products, net $ 318,885 $ 332,457 Property, plant, and equipment: Land $ 46,936 $ 38,494 Buildings 199,720 182,873 Plant and equipment (1) 1,358,990 1,270,646 Construction in progress 69,336 73,124 Property, plant, and equipment 1,674,982 1,565,137 Less accumulated depreciation 732,279 639,197 Property, plant, and equipment, net of accumulated depreciation $ 942,703 $ 925,940 Intangible assets: Contractual agreements $ 265,375 $ 261,923 Technology 147,011 145,663 Customer relationships 60,623 60,291 Tradenames/trademarks 83,519 80,638 Software 68,276 63,181 Intangible assets 624,804 611,696 Less accumulated amortization: Contractual agreements 110,811 87,576 Technology 74,693 68,132 Customer relationships 40,205 38,760 Tradenames/trademarks 53,951 48,162 Software 50,410 43,189 Accumulated amortization 330,070 285,819 Intangible assets, net of accumulated amortization $ 294,734 $ 325,877 ________________________________________________ (1) Plant and equipment, net of depreciation, includes $2.7 million and $3.4 million of assets related to capital leases as of December 31, 2020 and December 31, 2019, respectively. |
Detail of certain balance sheet accounts - other liabilities and accumulated other comprehensive loss | December 31, 2020 2019 (In thousands) Other payables and accruals: Employee related $ 52,145 $ 27,078 Short-term operating lease liabilities 18,299 20,908 Interest payable 3,873 16,289 Capital project accruals 1,149 13,259 Customer related 10,484 10,329 Short-term deferred income 24,182 1,407 Income tax payable 26,367 3,372 Utilities payable 2,886 2,397 Property and other taxes 1,303 1,548 Other 26,676 16,058 Total other payables and accruals $ 167,364 $ 112,645 Other long-term liabilities: Pension and other postretirement benefits $ 133,634 $ 126,386 Long-term tax liability 19,530 21,022 Other 15,402 14,503 Total other long-term liabilities $ 168,566 $ 161,911 |
Estimated amortization expense | Estimated amortization expense for each of the next five years is as follows: December 31: Amortization (In thousands) 2021 $ 41,214 2022 $ 38,530 2023 $ 37,246 2024 $ 36,910 2025 $ 36,849 |
Changes in accumulated other comprehensive income (loss) | Changes in accumulated other comprehensive income (loss) by component were as follows: Cumulative Foreign Currency Translation Cash Flow Hedges, Net of Tax Net Investment Hedges, Net of Tax Benefit Plans Liability, Net of Tax Total (In thousands) Balance at December 31, 2018 $ (24,093) $ 3,922 $ 6,153 $ (77,681) $ (91,699) Other comprehensive income (loss) before reclassifications (5,296) (6,311) 7,471 (12,849) (16,985) Amounts reclassified to expense from accumulated other comprehensive loss — — — 2,889 (1) 2,889 Net other comprehensive income (loss) for the year (5,296) (6,311) 7,471 (9,960) (14,096) Balance at December 31, 2019 (29,389) (2,389) 13,624 (87,641) (105,795) Other comprehensive income (loss) before reclassifications 36,431 1,387 (25,881) (11,370) 567 Amounts reclassified to (income) expense from accumulated other comprehensive loss 66,533 1,002 (2) (899) 727 (1) 67,363 Net other comprehensive income (loss) for the year 102,964 2,389 (26,780) (10,643) 67,930 Balance at December 31, 2020 $ 73,575 $ — $ (13,156) $ (98,284) $ (37,865) ________________________________________________ (1) The reclassifications from accumulated other comprehensive income (loss) is for the change in benefit plans liability represents amortization of net actuarial losses and prior service costs. These costs are allocated between cost of goods sold, selling, general, and administrative and research and development expenses in the Consolidated Statement of Operations. See Note 13 Employee Benefits for further information related to net periodic benefit cost for pension and other post-retirement benefit plans. |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculations of basic and diluted EPS | The calculations of basic and diluted EPS are as follows: Year Ended December 31, 2020 Net Weighted Earnings (In thousands, except per share data) Basic: As reported $ (225,602) 31,845 Amounts allocated to unvested restricted shares 701 (99) Amounts available to common stockholders (224,901) 31,746 $ (7.08) Diluted: Amounts allocated to unvested restricted shares (701) 99 Non participating share units — Stock options added under the treasury stock method — Amounts reallocated to unvested restricted shares 701 (99) Amounts available to stockholders and assumed conversions $ (224,901) 31,746 $ (7.08) Year Ended December 31, 2019 Net Weighted Earnings (In thousands, except per share data) Basic: As reported $ 51,305 31,828 Amounts allocated to unvested restricted shares (399) (247) Amounts available to common stockholders 50,906 31,581 $ 1.61 Diluted: Amounts allocated to unvested restricted shares 399 247 Non participating share units 259 Stock options added under the treasury stock method 41 Amounts reallocated to unvested restricted shares (395) (247) Amounts available to stockholders and assumed conversions $ 50,910 31,881 $ 1.60 Year Ended December 31, 2018 Net Weighted Earnings (In thousands, except per share data) Basic: As reported $ 67,015 31,878 Amounts allocated to unvested restricted shares (972) (462) Amounts available to common stockholders 66,043 31,416 $ 2.10 Diluted: Amounts allocated to unvested restricted shares 972 462 Non participating share units 168 Stock options added under the treasury stock method 205 Amounts reallocated to unvested restricted shares (961) (462) Amounts available to stockholders and assumed conversions $ 66,054 31,789 $ 2.08 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: December 31, 2020 December 31, 2019 Principal Discount Debt Issuance Cost Total Principal Discount Debt Issuance Cost Total (In thousands) USD Tranche $ — $ — $ — $ — $ 290,000 $ (5,057) $ (6,985) $ 277,958 Euro Tranche 104,159 — (996) 103,163 277,134 — (3,237) 273,897 7.0% Senior Notes — — — — 394,750 — (5,846) 388,904 4.25% Senior Notes 400,000 — (6,995) 393,005 — — — — 5.25% Senior Notes 355,366 — (4,221) 351,145 325,378 — (4,879) 320,499 ABL Facility — — — — — — — — KFPC Loan Agreement 52,730 — (18) 52,712 82,375 — (33) 82,342 KFPC Revolving Credit Facilities 37,003 — — 37,003 20,010 — — 20,010 Capital lease obligation 835 — — 835 1,015 — — 1,015 Total debt 950,093 — (12,230) 937,863 1,390,662 (5,057) (20,980) 1,364,625 Less current portion of total debt 72,347 — — 72,347 53,139 — — 53,139 Long-term debt $ 877,746 $ — $ (12,230) $ 865,516 $ 1,337,523 $ (5,057) $ (20,980) $ 1,311,486 |
Schedule of principal payments on outstanding total debt | Debt Maturities. The principal payments on our outstanding total debt as of December 31, 2020, are as follows: Principal December 31, (In thousands) 2021 $ 72,347 2022 17,778 2023 215 2024 228 2025 504,159 Thereafter 355,366 Total debt $ 950,093 |
Fair Value Measurements, Fina_2
Fair Value Measurements, Financial Instruments, and Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value measurements at reporting date | Our assessment of the significance of a particular input to the fair value measurement requires judgment, which judgment may affect the valuation of their fair value and placement within the fair value hierarchy levels. As of December 31, 2020 and 2019, the Company has no assets or liabilities utilizing significant unobservable inputs (or Level 3) to derive its estimated fair values. Fair Value Measurements at Reporting Balance Sheet Location December 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Retirement plan asset—noncurrent Other long-term assets 2,454 2,454 — Derivative liability – current Other payables and accruals (219) — (219) Total $ 2,235 $ 2,454 $ (219) Fair Value Measurements at Reporting Balance Sheet Location December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (In thousands) Derivative asset – current Other current assets $ 14 $ — $ 14 Derivative asset – noncurrent Other long-term assets 32 — 32 Retirement plan asset—noncurrent Other long-term assets 2,547 2,547 — Derivative liability – current Other payables and accruals (170) — (170) Total $ 2,423 $ 2,547 $ (124) |
Summary of carrying values and approximate fair values of long-term debt | The following table presents the carrying values and approximate fair values of our debt. December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (In thousands) USD Tranche (significant other observable inputs – level 2) $ — $ — $ 290,000 $ 290,183 Euro Tranche (significant other observable inputs – level 2) $ 104,159 $ 103,574 $ 277,134 $ 277,827 7.0% Senior Notes (quoted prices in active market for identical assets – level 1) $ — $ — $ 394,750 $ 406,214 4.25% Senior Notes (quoted prices in active market for identical assets – level 1) $ 400,000 $ 409,880 $ — $ — 5.25% Senior Notes (quoted prices in active market for identical assets – level 1) $ 355,366 $ 367,886 $ 325,378 $ 338,364 ABL Facility $ — $ — $ — $ — Capital lease obligation $ 835 $ 835 $ 1,015 $ 1,015 KFPC Loan Agreement $ 52,730 $ 52,730 $ 82,375 $ 82,375 KFPC Revolving Credit Facilities $ 37,003 $ 37,003 $ 20,010 $ 20,010 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Expense for Income Taxes | The provision for income taxes is comprised of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Current tax benefit (expense): U.S. $ (9,579) $ 13,968 $ (22,158) Foreign (14,501) (2,314) (7,903) Current tax benefit (expense) (24,080) 11,654 (30,061) Deferred tax benefit (expense): U.S. (3,376) (1,621) 18,868 Foreign 59,490 1,780 7,619 Deferred tax benefit (expense) 56,114 159 26,487 Income tax benefit (expense) $ 32,034 $ 11,813 $ (3,574) |
Income Before Income Taxes | Income (loss) before income taxes is comprised of the following: Years Ended December 31, 2020 2019 2018 (In thousands) Income (loss) before income taxes: U.S. $ (484,131) $ 1,998 $ 10,605 Foreign 230,411 42,006 63,490 Income before income taxes $ (253,720) $ 44,004 $ 74,095 |
Reconciliation of Statutory Income Tax Rate | The provision for income taxes differs from the amount computed by applying the U.S. corporate statutory income tax rate to income (loss) before income taxes for the reasons set forth below: Years Ended December 31, 2020 2019 2018 Income taxes at the statutory rate (21.0) % (21.0) % (21.0) % Foreign tax rate differential (0.2) 5.1 15.3 State taxes, net of federal benefit (0.7) (0.1) (0.5) Permanent differences 0.6 8.7 10.9 Cariflex disposition (4.3) — — Dutch transfer of assets (25.9) — — Tax credits (0.5) 3.6 (0.1) Uncertain tax positions (1.2) 40.3 (8.3) Valuation allowance (0.6) 10.6 8.8 Goodwill impairment 33.1 — — Deferred tax rate change and transition tax 0.2 (7.7) 14.4 U.S. minimum tax on foreign entities 2.0 (17.8) (16.2) Other 5.9 5.1 (8.0) Effective tax rate (12.6) % 26.8 % (4.7) % |
Significant Components of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as net operating loss and tax credit carryforwards. The tax effects of temporary differences are comprised of the following: December 31, 2020 2019 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 36,093 $ 49,634 Interest carryforwards 4,974 30,429 Tax credit carryforwards 4,938 10,301 Inventory 8,309 8,100 Benefit plans accrual 31,431 25,219 Operating leases 13,279 17,543 Deferred income 36,999 — Other accruals and reserves 11,821 4,782 Deferred tax assets 147,844 146,008 Valuation allowance for deferred tax assets (39,517) (38,440) Net deferred tax assets after valuation allowance 108,327 107,568 Deferred tax liabilities: Property, plant, and equipment 117,678 112,454 Intangible assets 2,603 76,293 Operating leases 11,715 16,842 Investment in subsidiaries 18,356 18,356 Deferred tax liabilities 150,352 223,945 Net deferred tax liabilities $ 42,025 $ 116,377 December 31, 2020 2019 (In thousands) Net deferred tax liabilities consist of: Non-current deferred tax assets $ 83,534 $ 8,863 Non-current deferred tax liabilities 125,559 125,240 Net deferred tax liabilities $ 42,025 $ 116,377 |
Rollforward of Unrecognized Tax Benefits | The following presents a roll forward of our unrecognized tax benefits including associated interest and penalties. December 31, 2020 2019 (In thousands) Balance at January 1 $ 11,294 $ 29,603 Increase in current year tax positions 148 185 Increase in prior year tax positions 1,142 710 Decrease in prior year tax positions — (18,143) Lapse of statute of limitations (3,735) (1,061) Balance at December 31 $ 8,849 $ 11,294 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | The components of lease cost for operating leases are as follows: Year Ended December 31, 2020 Year Ended December 31, 2019 (In thousands) Lease cost $ 24,488 $ 23,093 Variable lease cost 1,090 543 Operating lease expense $ 25,578 $ 23,636 |
Schedule Of Lease By Asset Type | The operating lease liabilities on a discounted basis arising from obtaining ROU assets as of December 31, 2020 were comprised as follows: Leased Asset Class Polymer Chemical Percentage Average Months Remaining on the Lease Weighted Average in Months (In thousands) Railcars $ 2,733 $ 26,748 34.2 % 65 22.3 Buildings 24,623 9,868 40.0 % 27 10.6 Equipment 2,151 6,712 10.3 % 36 3.7 Land 7,045 44 8.2 % 359 29.5 Other 775 5,498 7.3 % 35 2.5 Total $ 37,327 $ 48,870 68.6 |
Lessee, Operating Lease, Liability, Maturity | The following tables show the undiscounted cash flows for the operating lease liabilities. December 31, 2020 (In thousands) 2021 $ 21,098 2022 15,992 2023 14,309 2024 10,668 2025 8,605 Thereafter 26,988 Total undiscounted operating lease liabilities 97,660 Present value discount (11,474) Foreign currency and other 11 Total discounted operating lease liabilities $ 86,197 December 31, 2019 (In thousands) 2020 $ 23,310 2021 17,629 2022 13,087 2023 9,665 2024 6,264 Thereafter 27,860 Total undiscounted operating lease liabilities 97,815 Present value discount (10,400) Foreign currency and other 117 Total discounted operating lease liabilities $ 87,532 |
Changes in the aggregate carrying amount of ARO liability | The changes in the aggregate carrying amount of our ARO liability are as follows: December 31, 2020 2019 (In thousands) Beginning balance $ 6,523 $ 5,703 Additional accruals 119 772 Accretion expense 348 343 Obligations settled (1,164) (206) Foreign currency translation 506 (89) Ending balance $ 6,332 $ 6,523 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Plan Obligation, Plan Assets, Amounts Recognized in Financial Statements and Underlying Actuarial and Other Assumptions | Information concerning the pension obligation, plan assets, amounts recognized in our financial statements, and underlying actuarial and other assumptions are as follows: U.S. Plans Non-U.S. Plans December 31, December 31, 2020 2019 2020 2019 (In thousands) Change in benefit obligation: Benefit obligation at beginning of period $ 194,897 $ 177,589 $ 95,265 $ 81,108 Service cost 187 2,671 1,861 1,491 Interest cost 6,621 7,781 1,656 2,112 Participant contributions — — 242 215 Benefits paid (8,170) (7,354) (5,255) (3,577) Plan amendments — (12,507) — (321) Settlements — — (1,018) (400) Other events — — 9,183 — Actuarial (gain) loss 22,083 26,717 5,326 13,070 Exchange rate (gain) loss — — 5,504 1,567 Benefit obligation at end of period 215,618 194,897 112,764 95,265 Change in plan assets: Fair value at beginning of period 131,980 110,899 52,680 45,024 Return on plan assets 19,653 20,849 7,501 5,926 Employer contributions 3,865 7,586 5,502 4,067 Participant contributions — — 242 215 Benefits paid (8,170) (7,354) (5,255) (3,577) Settlements — — (1,018) (400) Other events — — 6,952 — Exchange rate (gain) loss — — 2,682 1,425 Fair value at end of period 147,328 131,980 69,286 52,680 Funded status at end of period $ (68,290) $ (62,917) $ (43,478) $ (42,585) Amounts recognized on balance sheet: Current liabilities $ — $ — $ (2,945) $ (2,323) Noncurrent liabilities (68,290) (62,917) (40,533) (40,262) $ (68,290) $ (62,917) $ (43,478) $ (42,585) Amounts recognized in accumulated other comprehensive loss: Prior service costs $ — $ — $ 2,754 $ 573 Net actuarial loss 68,407 58,505 21,112 20,495 Amounts recognized in accumulated other comprehensive loss $ 68,407 $ 58,505 $ 23,866 $ 21,068 Accumulated benefit obligations $ 215,618 $ 194,887 $ 106,525 $ 91,152 Information concerning the plan obligation, the funded status and amounts recognized in our financial statements and underlying actuarial and other assumptions are as follows: December 31, 2020 2019 (In thousands) Change in benefit obligation: Benefit obligation at beginning of period $ 23,979 $ 22,824 Service cost 291 290 Interest cost 789 941 Benefits and expenses paid (premiums) (921) (2,055) Actuarial (gain) loss 2,031 1,979 Plan amendments — — Benefit obligation at end of period 26,169 23,979 Change in plan assets (1) : Fair value at beginning of period — — Employer contributions 921 2,055 Benefits paid (921) (2,055) Fair value at end of period — — Funded status at end of year $ (26,169) $ (23,979) ___________________________________________ (1) Shell Chemicals has committed to a future cash payment related to retiree medical expenses based on a specified dollar amount per employee, if certain contractual commitments are met. We have recorded an asset of approximately $4.4 million and $5.7 million as our estimate of the present value of this commitment as of December 31, 2020 and 2019, respectively. December 31, 2020 2019 (In thousands) Amounts recognized in the balance sheet: Current liabilities $ (1,443) $ (1,446) Noncurrent liabilities (24,726) (22,533) $ (26,169) $ (23,979) Amounts recognized in accumulated other comprehensive loss: Prior service cost $ (7,507) $ (9,254) Net actuarial loss $ 10,977 $ 9,833 $ 3,470 $ 579 |
Estimated Future Benefit Payments | The following employer contributions and benefit payments, which reflect expected future service, as appropriate, are expected to be paid: U.S. Plans Non-U.S. Plans (In thousands) Employer Contributions 2021 Employer contributions $ 10,245 $ 4,888 Benefit Payments 2021 $ 8,215 $ 5,431 2022 8,584 6,240 2023 8,924 5,371 2024 9,195 5,633 2025 9,510 6,914 Years 2026-2030 51,938 34,566 Total Benefit Payments $ 96,366 $ 64,155 Retiree Medical Plan (In thousands) Employer Contributions 2021 Employer contributions $ 1,461 Benefit Payments 2021 $ 1,461 2022 1,458 2023 1,449 2024 1,439 2025 1,459 Years 2026-2030 7,190 Total Benefit Payments $ 14,456 |
Components of Net Periodic Pension Costs | Net periodic pension costs consist of the following components: U.S. Plans Non-U.S. Plans Years Ended December 31, Years Ended December 31, 2020 2019 2018 2020 2019 2018 (In thousands) Service cost benefits earned during the period $ 187 $ 2,671 $ 3,221 $ 1,861 $ 1,491 $ 2,504 Interest on prior year’s projected benefit obligation 6,621 7,781 7,200 1,656 2,112 2,073 Expected return on plan assets (9,106) (10,065) (9,808) (2,731) (2,520) (2,685) One-time settlement costs — — — 143 56 — Amortization of prior service costs — — — 17 34 13 Amortization of net actuarial loss 1,634 3,487 4,650 1,050 419 645 Net periodic pension costs $ (664) $ 3,874 $ 5,263 $ 1,996 $ 1,592 $ 2,550 Net periodic benefit costs consist of the following components: Years Ended December 31, 2020 2019 2018 (In thousands) Service cost $ 291 $ 290 $ 490 Interest cost 789 941 1,224 Amortization of prior service cost (1,747) (1,747) (582) Amortization of net actuarial loss 887 621 742 Net periodic benefit costs $ 220 $ 105 $ 1,874 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) | The estimated losses that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in fiscal 2021 are as follows: U.S. Plans Non-U.S. Plans (In thousands) Amortization of prior service costs $ — $ 19 Amortization of net actuarial loss 2,420 1,048 $ 2,420 $ 1,067 |
Weighted Average Assumptions used to Determine Benefit Obligation and Net Periodic Benefit Cost | Discount rates are determined annually and are based on rates of return of high-quality long-term fixed income securities currently available and expected to be available during the maturity of the pension benefits. U.S. Plans Non-U.S. Plans December 31, December 31, 2020 2019 2020 2019 Weighted average assumptions used to determine benefit obligations: Discount rate 2.66 % 3.45 % 1.13 % 1.79 % Rates of increase in salary compensation level 3.00 % 3.00 % 2.73 % 2.96 % Expected long-term rate of return on plan assets 7.00 % 7.00 % 4.93 % 5.24 % Weighted average assumptions used to determine net periodic benefit cost: Discount rate 3.45 % 4.45 % 1.79 % 2.63 % Rates of increase in salary compensation level 3.00 % 3.00 % 2.96 % 2.98 % Expected long-term rate of return on plan assets 7.00 % 8.00 % 5.24 % 5.49 % December 31, 2020 2019 Weighted average assumptions used to determine benefit obligations: Measurement date 12/31/2020 12/31/2019 Discount rate 2.55 % 3.34 % Rates of increase in salary compensation level N/A N/A Weighted average assumptions used to determine net periodic benefit cost: Discount rate 3.34 % 4.36 % Rates of increase in salary compensation level N/A N/A Expected long-term rate of return on plan assets N/A N/A |
Pension Plan Asset Allocations by Asset Category | Our Pension Plan asset allocations at December 31, 2020 and 2019 by asset category are as follows: U.S. Plans Non-U.S. Plans Target Allocation Percentage of Plan Target Allocation Percentage of Plan 2020 2020 2019 2020 2020 2019 Equity 50.0 % 68.1 % 68.1 % 45.0 % 36.2 % 42.1 % Debt 35.0 31.9 31.9 — 50.9 53.7 Other 15.0 — — 55.0 12.9 4.2 Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Fair Values of Pension Plan Assets by Asset Category | A summary of total investments for our pension plan assets measured at fair value is presented below. See Note 10 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements for a detailed description of fair value measurements and the hierarchy established for Level 1, 2, and 3 valuation inputs. Pension Plan Assets Fair Value Measurements at December 31, 2020 Total Quoted Prices Significant Significant (In thousands) Equity $ 125,359 $ 62,790 $ 62,569 $ — Debt 82,253 14,063 68,190 — Other 9,002 984 — 8,018 Total $ 216,614 $ 77,837 $ 130,759 $ 8,018 ___________________________________________ (1) Included are plan assets of $70.4 million, which are comprised of $37.5 million and $32.9 million in equity and debt, respectively, valued using the net asset value practical expedient measuring the fair value of investments in certain entities that calculate net asset value per share (or its equivalent). Pension Plan Assets Fair Value Measurements at December 31, 2019 Total Quoted Prices Significant Observable Inputs (Level 2) (1) Significant (In thousands) Equity $ 112,094 $ 56,220 $ 55,874 $ — Debt 70,358 12,745 57,613 — Other 2,208 963 944 301 Total $ 184,660 $ 69,928 $ 114,431 $ 301 ___________________________________________ (1) Included are plan assets of $63.0 million, which are comprised of $33.7 million and $29.3 million in equity and debt, respectively, valued using the net asset value practical expedient measuring the fair value of investments in certain entities that calculate net asset value per share (or its equivalent). |
Assumed Health Care Cost Trend Rates | December 31, 2020 2019 Assumed Pre-65 health care cost trend rates: Health care cost trend rate assumed for next year 7.00 % 7.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2026 2026 December 31, 2020 2019 Assumed Post-65 health care cost trend rates: Health care cost trend rate assumed for next year N/A N/A Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) N/A N/A Year that the rate reaches the ultimate trend rate N/A N/A |
Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates | A 1.0% change in assumed health care cost trend rates would have the following effect (in thousands): 1% Increase 1% Decrease Effect on total of service and interest cost components $ 1,576 $ (2,382) Effect on postretirement benefit obligation $ 41,919 $ (55,903) |
Industry Segment and Foreign _2
Industry Segment and Foreign Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Sales Revenue for Primary Product Lines | Operating Results by Segment Year Ended December 31, 2020 Year Ended December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue $ 857,558 $ 705,592 $ 1,563,150 $ 1,052,968 $ 751,468 $ 1,804,436 Cost of goods sold 627,297 537,982 1,165,279 820,410 569,597 1,390,007 Gross profit 230,261 167,610 397,871 232,558 181,871 414,429 Operating expenses: Research and development 29,972 10,771 40,743 29,392 11,681 41,073 Selling, general, and administrative 90,074 71,870 161,944 86,025 63,775 149,800 Depreciation and amortization 52,910 73,112 126,022 59,151 77,020 136,171 Impairment of goodwill — 400,000 400,000 — — — Gain on insurance proceeds — — — — (32,850) (32,850) Loss on disposal of fixed assets 503 247 750 647 126 773 Operating income (loss) $ 56,802 $ (388,390) (331,588) $ 57,343 $ 62,119 119,462 Other income (expense) 995 3,339 Disposition and exit of business activities 175,189 — Loss on extinguishment of debt (40,843) (3,521) Earnings of unconsolidated joint venture 457 506 Interest expense, net (57,930) (75,782) Income (loss) before income taxes $ (253,720) $ 44,004 Year Ended December 31, 2018 Polymer Chemical Total (In thousands) Revenue $ 1,221,586 $ 790,089 $ 2,011,675 Cost of goods sold 872,506 558,563 1,431,069 Gross profit 349,080 231,526 580,606 Operating expenses: Research and development 28,957 12,339 41,296 Selling, general, and administrative 89,753 64,144 153,897 Depreciation and amortization 71,006 70,404 141,410 Gain on insurance proceeds — (8,900) (8,900) Loss on disposal of fixed assets 202 1,967 2,169 Operating income (loss) $ 159,162 $ 91,572 250,734 Other expense (3,472) Loss on extinguishment of debt (79,866) Earnings of unconsolidated joint venture 471 Interest expense, net (93,772) Income (loss) before income taxes $ 74,095 |
Schedule of Goodwill | Changes in goodwill from January 1, 2020 through December 31, 2020 were as follows: Chemical (In thousands) Balance at January 1, 2020 $ 772,418 Goodwill impairment charge (400,000) Foreign currency translation 2,643 Balance at December 31, 2020 $ 375,061 |
Schedule of Assets by Segments | Long-Lived Assets Including Goodwill and Total Assets December 31, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Property, plant, and equipment, net $ 523,067 $ 419,636 $ 942,703 $ 526,692 $ 399,248 $ 925,940 Investment in unconsolidated joint venture $ 12,723 $ — $ 12,723 $ 11,971 $ — $ 11,971 Goodwill $ — $ 375,061 $ 375,061 $ — $ 772,418 $ 772,418 Total assets $ 1,104,954 $ 1,356,003 $ 2,460,957 $ 1,097,691 $ 1,734,694 $ 2,832,385 |
Sales Revenue by Geographic Region | Revenue by Geographic Region December 31, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Revenue: United States $ 311,129 $ 289,989 $ 601,118 $ 352,735 $ 317,347 $ 670,082 Germany 89,304 44,439 133,743 107,661 51,598 159,259 All other countries 457,125 371,164 828,289 592,572 382,523 975,095 $ 857,558 $ 705,592 $ 1,563,150 $ 1,052,968 $ 751,468 $ 1,804,436 December 31, 2018 Polymer Chemical Total (In thousands) Revenue: United States $ 412,308 $ 325,193 $ 737,501 Germany 141,451 53,908 195,359 All other countries 667,827 410,988 1,078,815 $ 1,221,586 $ 790,089 $ 2,011,675 |
Long-Lived Assets by Geographic Region | Long-Lived Assets by Geographic Region December 31, 2020 December 31, 2019 Polymer Chemical Total Polymer Chemical Total (In thousands) Long-lived assets, at cost: United States $ 591,361 $ 413,787 $ 1,005,148 $ 568,710 $ 385,235 $ 953,945 Taiwan 191,726 — 191,726 183,963 — 183,963 France 156,410 15,489 171,899 144,785 13,153 157,938 Germany 79,388 6,057 85,445 70,617 5,170 75,787 Sweden — 78,329 78,329 — 64,281 64,281 All other countries 68,833 73,602 142,435 69,320 59,903 129,223 $ 1,087,718 $ 587,264 $ 1,674,982 $ 1,037,395 $ 527,742 $ 1,565,137 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Fair Value and Carrying Value of Assets and Liabilities | The following table summarizes the carrying amounts of assets and liabilities as of December 31, 2020 and 2019 for KFPC before intercompany eliminations. See Note 9 Long Term Debt , for further discussion related to the KFPC Loan Agreement executed on July 17, 2014. December 31, 2020 December 31, 2019 (In thousands) Cash and cash equivalents $ 3,097 $ 10,402 Other current assets 17,304 14,847 Property, plant, and equipment 150,838 155,153 Intangible assets 7,959 8,133 Long-term operating lease assets, net 7,178 7,044 Other long-term assets 6,510 2,147 Total assets $ 192,886 $ 197,726 Current portion of long-term debt $ 72,156 $ 52,961 Current liabilities 5,209 12,801 Long-term debt 17,559 49,391 Deferred income taxes 1,984 — Long-term operating lease liabilities 6,700 6,603 Total liabilities $ 103,608 $ 121,756 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financials Data | The following table sets forth a summary of our quarterly financial information for each of the four quarters ended December 31, 2020 and December 31, 2019: First Quarter (1) Second Quarter (2) Third Quarter (3) Fourth Quarter (4) Total (In thousands, except per share data) 2020 Revenue $ 427,269 $ 355,679 $ 373,438 $ 406,764 $ 1,563,150 Gross profit $ 119,200 $ 93,044 $ 68,754 $ 116,873 $ 397,871 Operating income $ 28,241 $ 12,831 $ (406,771) $ 34,111 $ (331,588) Net income (loss) attributable to Kraton $ 208,086 $ (7,968) $ (403,794) $ (21,926) $ (225,602) Earnings (loss) per common share Basic $ 6.55 $ (0.25) $ (12.67) $ (0.69) $ (7.08) Diluted $ 6.47 $ (0.25) $ (12.67) $ (0.69) $ (7.08) Weighted average common shares outstanding Basic 31,587 31,782 31,787 31,798 31,746 Diluted 31,949 31,782 31,787 31,798 31,746 2019 Revenue $ 456,411 $ 495,280 $ 444,221 $ 408,524 $ 1,804,436 Gross profit $ 107,002 $ 129,202 $ 101,279 $ 76,946 $ 414,429 Operating income (loss) $ 35,135 $ 56,168 $ 38,103 $ (9,944) $ 119,462 Net income (loss) attributable to Kraton $ 12,668 $ 41,208 $ 18,693 $ (21,264) $ 51,305 Earnings (loss) per common share Basic $ 0.40 $ 1.29 $ 0.59 $ (0.67) $ 1.61 Diluted $ 0.39 $ 1.28 $ 0.58 $ (0.67) $ 1.60 Weighted average common shares outstanding Basic 31,633 31,692 31,486 31,516 31,581 Diluted 31,901 32,017 31,823 31,516 31,881 _______________________________________ (1) The first quarter of 2020 was positively impacted by a $175.2 million gain on the sale of our Cariflex business. The first quarter of 2019 was positively impacted by a $11.1 million gain on insurance proceeds. (2) The second quarter of 2019 was positively impacted by a $7.5 million gain on insurance proceeds. (3) The third quarter of 2020 was negatively impacted by a $400.0 million goodwill impairment. The third quarter of 2019 was positively impacted by a $14.3 million gain on insurance proceeds. (4) The fourth quarter of 2020 was negatively impacted by a $25.9 million loss on extinguishment of debt. The fourth quarter of 2019 was negatively impacted by approximately $5.0 million largely related to the process to review strategic alternatives for our Cariflex business and a $3.7 million loss on extinguishment of debt. |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Number of operating segments | segment | 2 | |||||
Goodwill, impairment loss | $ 400,000,000 | $ 400,000,000 | $ 0 | $ 0 | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Chemical | ||||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Goodwill, impairment loss | $ 0 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 0 | |
KFPC | ||||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Percentage of investment in joint venture | 50.00% | 50.00% | ||||
Styrenic Block Copolymer Joint Venture | ||||||
Schedule Of Description Of Business Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||
Percentage of investment in joint venture | 50.00% | 50.00% |
Description of Business, Basi_5
Description of Business, Basis of Presentation and Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 20 years |
Building and land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 20 years |
Manufacturing control equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 10 years |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Research equipment and facilities | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Computer hardware and information systems | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 3 years |
Description of Business, Basi_6
Description of Business, Basis of Presentation and Significant Accounting Policies - Estimated Useful Life of Assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of assets, years | 15 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of assets, years | 15 years |
Tradenames/trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of assets, years | 15 years |
Software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of assets, years | 3 years |
Software | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of assets, years | 10 years |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||
Operating lease, ROU assets | $ 84,042 | $ 85,003 | $ 70,900 |
Operating lease, liability | $ 70,900 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Liability, revenue recognized | $ 4,100 | $ 5,600 | $ 7,300 |
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | 175,511 | $ 12,456 | |
Specialty Polymers | Cariflex | Polymer | |||
Disaggregation of Revenue [Line Items] | |||
Additions to contract liabilities | 180,600 | ||
Other Payables and Accruals | |||
Disaggregation of Revenue [Line Items] | |||
Contract liabilities | $ 24,200 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) | Dec. 31, 2020 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected timing of satisfaction | 1 year |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, expected timing of satisfaction | 10 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Polymer | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 857,558 | $ 1,052,968 | $ 1,221,586 |
Polymer | Performance Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 459,906 | 531,437 | 631,728 |
Polymer | Specialty Polymers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 316,206 | 334,726 | 408,628 |
Polymer | Cariflex | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 36,930 | 186,266 | 180,814 |
Polymer | Isoprene Rubber | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 42,986 | 0 | 0 |
Polymer | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,530 | 539 | 416 |
Chemical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 705,592 | 751,468 | 790,089 |
Chemical | Adhesives | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 257,855 | 262,941 | 280,867 |
Chemical | Performance Chemicals | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 406,152 | 438,146 | 461,100 |
Chemical | Tires | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 41,585 | $ 50,381 | $ 48,122 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Contract receivables | $ 179,805 | $ 190,093 |
Contract liabilities | 175,511 | 12,456 |
Cariflex | Disposal Group | ||
Disaggregation of Revenue [Line Items] | ||
Assets held for sale, receivables | $ 20,397 | |
Additions to contract liabilities | $ 163,100 |
Disposition and Exit of Busin_2
Disposition and Exit of Business Activities - Narrative (Details) $ in Thousands, € in Millions | Nov. 30, 2020USD ($) | Nov. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Mar. 06, 2020USD ($) | Mar. 06, 2020EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain on disposition | $ 175,189 | $ 0 | $ 0 | |||||||
Contract liabilities | 175,511 | 12,456 | ||||||||
Amortization of deferred income | 20,054 | 0 | 0 | |||||||
Cash proceeds from disposition and exit of business activities | 510,500 | 0 | 0 | |||||||
Secured Debt | USD Tranche | Term Loan | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Extinguishment of debt, amount | $ 290,000 | |||||||||
Secured Debt | Euro Tranche | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Extinguishment of debt, amount | 184,800 | € 160 | ||||||||
Secured Debt | Euro Tranche | Term Loan | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Extinguishment of debt, amount | $ 18,000 | € 15 | $ 82,100 | € 70 | 84,700 | € 75 | ||||
Polymer | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Revenue | 857,558 | 1,052,968 | 1,221,586 | |||||||
Polymer | Isoprene Rubber | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Revenue | 42,986 | 0 | 0 | |||||||
Polymer | Specialty Polymers | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Revenue | 316,206 | $ 334,726 | $ 408,628 | |||||||
Cariflex | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Gain on disposition | $ 175,200 | |||||||||
Cariflex | Polymer | Specialty Polymers | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Amortization of deferred income | 18,500 | |||||||||
Disposed of by Sale | Cariflex | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Consideration for certain assets sold | 530,000 | |||||||||
Incremental working capital | 5,800 | |||||||||
Contractual capital contributions | 25,300 | |||||||||
Gain on disposition | $ 175,200 | |||||||||
Contract liabilities | 180,600 | |||||||||
Cash proceeds from disposition and exit of business activities | 510,500 | |||||||||
Disposed of by Sale | Cariflex | Other payables and accruals | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Contract liabilities | 22,400 | |||||||||
Disposed of by Sale | Cariflex | Deferred Income | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Contract liabilities | $ 158,200 |
Disposition and Exit of Busin_3
Disposition and Exit of Business Activities - Obligations (Details) - Cariflex - Disposed of by Sale | Mar. 06, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Performance obligation, optional extension period | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Performance obligation, expected timing of satisfaction | 5 years |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (Loss) on Disposition of Assets | $ (750) | $ (773) | $ (2,169) | ||
Cariflex | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (Loss) on Disposition of Assets | $ 175,200 | ||||
Cariflex | Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration for certain assets sold | $ 530,000 |
Assets Held for Sale - Assets a
Assets Held for Sale - Assets and Liabilities to be Disposed of (Details) - Cariflex - Not Discontinued Operations $ in Thousands | Dec. 31, 2019USD ($) |
ASSETS | |
Receivables, net of allowances of $51 | $ 20,397 |
Inventories of products, net | 27,030 |
Inventories of materials and supplies, net | 965 |
Prepaid expenses | 1,913 |
Other current assets | 1,051 |
Property, plant, and equipment, less accumulated depreciation of $27,146 | 26,891 |
Other long-term assets | 93 |
Long-term operating lease assets, net | 74 |
Total assets | 78,414 |
LIABILITIES | |
Accounts payable-trade | 9,180 |
Other payables and accruals | 5,669 |
Long-term operating lease liabilities | 3 |
Total liabilities | 14,852 |
Net assets | 63,562 |
Allowance | 51 |
Accumulated depreciation | $ 27,146 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 17, 2019 | May 18, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense, net of tax | $ 11,400 | $ 9,500 | $ 8,100 | ||
Tax impact to share-based compensation expense | 2,500 | 2,100 | 1,900 | ||
Proceeds from the exercise of stock options | 78 | 2,424 | $ 3,133 | ||
Aggregate intrinsic value | $ 13,300 | ||||
Weighted average remaining contractual terms | 1 year 7 days | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period of options, years | 10 years | ||||
Proceeds from the exercise of stock options | $ 100 | ||||
Restricted stock awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awarded shares (in shares) | 108,076 | ||||
Share units granted to employees (in shares) | 78,000 | ||||
Total fair value of shares vested | $ 3,600 | $ 6,700 | $ 12,400 | ||
Restricted stock awards | Board Of Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock to members (in shares) | 78,336 | 23,447 | 16,932 | ||
Restricted stock awards | Cliff Vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average remaining recognition period | 3 years | 3 years | 3 years | ||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share units granted to employees (in shares) | 360,153 | 192,214 | 32,908 | ||
Restricted stock units | Cliff Vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average remaining recognition period | 3 years | 3 years | 3 years | ||
Performance stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average remaining recognition period | 3 years | ||||
Share units granted to employees (in shares) | 358,316 | 137,508 | 109,844 | ||
Aggregate intrinsic value | $ 15,446 | ||||
Weighted average remaining contractual terms | 1 year 7 months 9 days | ||||
Total fair value of shares vested | $ 2,400 | ||||
Increase in compensation cost | $ 2,900 | ||||
Performance stock units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of number of shares of common stock to initial grant value to be issued when performance shares units vest | 0.00% | ||||
Performance stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of number of shares of common stock to initial grant value to be issued when performance shares units vest | 200.00% | ||||
2016 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 4,678,621 | ||||
Common stock available for issuance (in shares) | 1,804,184 | 2,901,188 | |||
Inducement Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 150,000 | ||||
Common stock available for issuance (in shares) | 97,039 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 165 |
Weighted Average Remaining Recognition Period | 1 month 24 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4,484 |
Weighted Average Remaining Recognition Period | 1 year 10 months 9 days |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 4,614 |
Weighted Average Remaining Recognition Period | 1 year 7 months 9 days |
Share-Based Compensation - Opti
Share-Based Compensation - Option Activities (Detail) - Non-qualified Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Options | |
Outstanding beginning balance (in shares) | shares | 387 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (3) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | (36) |
Outstanding ending balance (in shares) | shares | 348 |
Weighted Average Exercise Price | |
Outstanding beginning balance (in dollars per share) | $ / shares | $ 30.31 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 28.42 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 28.68 |
Outstanding ending balance (in dollars per share) | $ / shares | $ 30.49 |
Outstanding options, Aggregate Intrinsic Value | $ | $ 299 |
Outstanding options, Weighted Average Remaining Contractual Term | 1 year 5 months 8 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Additional Information Regarding Outstanding and Exercisable Options (Detail) - Stock Options - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options exercised | $ 3 | $ 116 | $ 173 |
Total intrinsic value of options exercised | $ 0 | $ 623 | $ 1,050 |
Share-Based Compensation - Non-
Share-Based Compensation - Non-Vested Restricted Stock Awards, Restricted Share Units and Performance Share Units (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted- average Grant-date Fair Value | |||
Aggregate intrinsic value | $ 13,300 | ||
Weighted average remaining contractual terms | 1 year 7 days | ||
Restricted stock awards | |||
Shares | |||
Non-vested shares, beginning balance (in shares) | 204,000 | ||
Granted (in shares) | 78,000 | ||
Vested (in shares) | (198,000) | ||
Forfeited (in shares) | (12,000) | ||
Non-vested shares, ending balance (in shares) | 73,000 | 204,000 | |
Weighted- average Grant-date Fair Value | |||
Non-vested shares, beginning balance (in dollars per share) | $ 35.19 | ||
Granted (in dollars per share) | 10.21 | ||
Vested (in dollars per share) | 21.02 | ||
Forfeited (in dollars per share) | 45.10 | ||
Non-vested shares, ending balance (in dollars per share) | $ 45.13 | $ 35.19 | |
Restricted stock units | |||
Shares | |||
Non-vested shares, beginning balance (in shares) | 249,000 | ||
Granted (in shares) | 360,153 | 192,214 | 32,908 |
Vested (in shares) | (127,000) | ||
Forfeited (in shares) | (37,000) | ||
Non-vested shares, ending balance (in shares) | 445,000 | 249,000 | |
Weighted- average Grant-date Fair Value | |||
Non-vested shares, beginning balance (in dollars per share) | $ 32.74 | ||
Granted (in dollars per share) | 10.45 | ||
Vested (in dollars per share) | 30.37 | ||
Forfeited (in dollars per share) | 20.83 | ||
Non-vested shares, ending balance (in dollars per share) | $ 17.34 | $ 32.74 | |
Performance stock units | |||
Shares | |||
Non-vested shares, beginning balance (in shares) | 378,000 | ||
Granted (in shares) | 358,316 | 137,508 | 109,844 |
Vested (in shares) | 0 | ||
Forfeited (in shares) | (188,000) | ||
Non-vested shares, ending balance (in shares) | 548,000 | 378,000 | |
Weighted- average Grant-date Fair Value | |||
Non-vested shares, beginning balance (in dollars per share) | $ 43.08 | ||
Granted (in dollars per share) | 8.53 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 28.85 | ||
Non-vested shares, ending balance (in dollars per share) | $ 23.25 | $ 43.08 | |
Aggregate intrinsic value | $ 15,446 | ||
Weighted average remaining contractual terms | 1 year 7 months 9 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance share units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.84% | 2.51% | 2.36% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 50.90% | 32.20% | 36.60% |
Fair value per performance share award (in dollars per share) | $ 6.46 | $ 60.68 | $ 61.30 |
Detail of Certain Balance She_3
Detail of Certain Balance Sheet Accounts - Inventories of Products and Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories of products: | ||
Finished products | $ 240,021 | $ 255,406 |
Work in progress | 3,074 | 4,589 |
Raw materials | 84,039 | 80,647 |
Inventories of products, gross | 327,134 | 340,642 |
Inventory reserves | (8,249) | (8,185) |
Inventories of products, net | 318,885 | 332,457 |
Property, plant, and equipment: | ||
Land | 46,936 | 38,494 |
Buildings | 199,720 | 182,873 |
Plant and equipment | 1,358,990 | 1,270,646 |
Construction in progress | 69,336 | 73,124 |
Property, plant, and equipment | 1,674,982 | 1,565,137 |
Less accumulated depreciation | 732,279 | 639,197 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization, Total | 942,703 | 925,940 |
Property, plant, and equipment, net of accumulated depreciation | 942,703 | 925,940 |
Intangible assets: | ||
Intangible assets | 624,804 | 611,696 |
Accumulated amortization | 330,070 | 285,819 |
Intangible assets, net of accumulated amortization | 294,734 | 325,877 |
Plant and Equipment | ||
Intangible assets: | ||
Operating lease, liability | 2,700 | 3,400 |
Contractual agreements | ||
Intangible assets: | ||
Intangible assets | 265,375 | 261,923 |
Accumulated amortization | 110,811 | 87,576 |
Technology | ||
Intangible assets: | ||
Intangible assets | 147,011 | 145,663 |
Accumulated amortization | 74,693 | 68,132 |
Customer relationships | ||
Intangible assets: | ||
Intangible assets | 60,623 | 60,291 |
Accumulated amortization | 40,205 | 38,760 |
Tradenames/trademarks | ||
Intangible assets: | ||
Intangible assets | 83,519 | 80,638 |
Accumulated amortization | 53,951 | 48,162 |
Software | ||
Intangible assets: | ||
Intangible assets | 68,276 | 63,181 |
Accumulated amortization | $ 50,410 | $ 43,189 |
Detail of Certain Balance She_4
Detail of Certain Balance Sheet Accounts - Other Liabilities and Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other payables and accruals: | ||
Employee related | $ 52,145 | $ 27,078 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Short-term operating lease liabilities | $ 18,299 | $ 20,908 |
Interest payable | 3,873 | 16,289 |
Capital project accruals | 1,149 | 13,259 |
Customer related | 10,484 | 10,329 |
Short-term deferred income | 24,182 | 1,407 |
Income tax payable | 26,367 | 3,372 |
Utilities payable | 2,886 | 2,397 |
Property and other taxes | 1,303 | 1,548 |
Other | 26,676 | 16,058 |
Total other payables and accruals | 167,364 | 112,645 |
Other long-term liabilities: | ||
Pension and other postretirement benefits | 133,634 | 126,386 |
Long-term tax liability | 19,530 | 21,022 |
Other | 15,402 | 14,503 |
Total other long-term liabilities | $ 168,566 | $ 161,911 |
Detail of Certain Balance She_5
Detail of Certain Balance Sheet Accounts - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Aggregate depreciation expense for property, plant and equipment | $ 82.7 | $ 89.9 | $ 91.8 |
Aggregate amortization expense for intangible assets | $ 43 | $ 46 | $ 49.3 |
Detail of Certain Balance She_6
Detail of Certain Balance Sheet Accounts - Estimated Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Estimated amortization expense | |
2021 | $ 41,214 |
2022 | 38,530 |
2023 | 37,246 |
2024 | 36,910 |
2025 | $ 36,849 |
Detail of Certain Balance She_7
Detail of Certain Balance Sheet Accounts - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 789,428 | $ 747,599 | $ 666,519 |
Other comprehensive income (loss) before reclassifications | 567 | (16,985) | |
Amounts reclassified to (income) expense from accumulated other comprehensive loss | 67,363 | 2,889 | |
Other comprehensive income (loss), net of tax | 67,930 | (14,096) | 6,596 |
Ending Balance | 649,002 | 789,428 | 747,599 |
Cumulative Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (29,389) | (24,093) | |
Other comprehensive income (loss) before reclassifications | 36,431 | (5,296) | |
Amounts reclassified to (income) expense from accumulated other comprehensive loss | 66,533 | 0 | |
Other comprehensive income (loss), net of tax | 102,964 | (5,296) | |
Ending Balance | 73,575 | (29,389) | (24,093) |
Cash Flow Hedges, Net of Tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (2,389) | 3,922 | |
Other comprehensive income (loss) before reclassifications | 1,387 | (6,311) | |
Amounts reclassified to (income) expense from accumulated other comprehensive loss | 1,002 | 0 | |
Other comprehensive income (loss), net of tax | 2,389 | (6,311) | |
Ending Balance | 0 | (2,389) | 3,922 |
Net Investment Hedges, Net of Tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 13,624 | 6,153 | |
Other comprehensive income (loss) before reclassifications | (25,881) | 7,471 | |
Amounts reclassified to (income) expense from accumulated other comprehensive loss | (899) | 0 | |
Other comprehensive income (loss), net of tax | (26,780) | 7,471 | |
Ending Balance | (13,156) | 13,624 | 6,153 |
Benefit Plans Liability, Net of Tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (87,641) | (77,681) | |
Other comprehensive income (loss) before reclassifications | (11,370) | (12,849) | |
Amounts reclassified to (income) expense from accumulated other comprehensive loss | 727 | 2,889 | |
Other comprehensive income (loss), net of tax | (10,643) | (9,960) | |
Ending Balance | (98,284) | (87,641) | (77,681) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (105,795) | (91,699) | (98,295) |
Ending Balance | $ (37,865) | $ (105,795) | $ (91,699) |
Earnings per Share ("EPS") - Na
Earnings per Share ("EPS") - Narrative (Details) - USD ($) | 12 Months Ended | 23 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Feb. 28, 2019 | |
Earnings Per Share Basic [Line Items] | |||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||
Stock repurchased during period (in shares) | 0 | 311,152 | |||
Average cost (in dollars per share) | $ 32.14 | ||||
Stock repurchased during period | $ 10,000,000 | ||||
Restricted stock awards | |||||
Earnings Per Share Basic [Line Items] | |||||
Shares paid for tax withholding for share based compensation (in shares) | 33,927 | 82,721 | 140,064 | ||
Anti-dilutive securities excluded from computation (in shares) | 460,014 | ||||
Performance stock units | |||||
Earnings Per Share Basic [Line Items] | |||||
Anti-dilutive securities excluded from computation, have not met performance contingencies (in shares) | 547,912 | 378,084 | 436,370 | ||
Stock Options | |||||
Earnings Per Share Basic [Line Items] | |||||
Anti-dilutive securities excluded from computation (in shares) | 309,476 | 431,627 |
Earnings per Share ("EPS") - Ef
Earnings per Share ("EPS") - Effects of Share-Based Compensation Awards on Diluted Weighted-Average Number of Shares Outstanding used in Calculating Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic: | |||||||||||
Net income (loss) attributable to Kraton | $ (21,926) | $ (403,794) | $ (7,968) | $ 208,086 | $ (21,264) | $ 18,693 | $ 41,208 | $ 12,668 | $ (225,602) | $ 51,305 | $ 67,015 |
Amounts allocated to unvested restricted shares | (701) | 399 | 972 | ||||||||
Amounts available to common stockholders | $ (224,901) | $ 50,906 | $ 66,043 | ||||||||
Weighted Average Shares Outstanding, Basic | |||||||||||
As reported (in shares) | 31,845 | 31,828 | 31,878 | ||||||||
Amounts allocated to unvested restricted shares (in shares) | (99) | (247) | (462) | ||||||||
Amounts available to common stockholders (in shares) | 31,798 | 31,787 | 31,782 | 31,587 | 31,516 | 31,486 | 31,692 | 31,633 | 31,746 | 31,581 | 31,416 |
Diluted: | |||||||||||
Amounts allocated to unvested restricted shares | $ (701) | $ 399 | $ 972 | ||||||||
Amounts reallocated to unvested restricted shares | 701 | (395) | (961) | ||||||||
Amounts available to stockholders and assumed conversions | $ (224,901) | $ 50,910 | $ 66,054 | ||||||||
Weighted Average Shares Outstanding, Diluted | |||||||||||
Amounts allocated to unvested restricted shares (in shares) | 99 | 247 | 462 | ||||||||
Non participating share units (in shares) | 0 | 259 | 168 | ||||||||
Stock options added under the treasury stock method (in shares) | 0 | 41 | 205 | ||||||||
Amounts reallocated to unvested restricted shares (in shares) | (99) | (247) | (462) | ||||||||
Amounts available to stockholders and assumed conversions (in shares) | 31,798 | 31,787 | 31,782 | 31,949 | 31,516 | 31,823 | 32,017 | 31,901 | 31,746 | 31,881 | 31,789 |
Earnings Per Share, Basic (in dollars per share) | $ (0.69) | $ (12.67) | $ (0.25) | $ 6.55 | $ (0.67) | $ 0.59 | $ 1.29 | $ 0.40 | $ (7.08) | $ 1.61 | $ 2.10 |
Earnings Per Share, Diluted (in dollars per share) | $ (0.69) | $ (12.67) | $ (0.25) | $ 6.47 | $ (0.67) | $ 0.58 | $ 1.28 | $ 0.39 | $ (7.08) | $ 1.60 | $ 2.08 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||||
Principal | $ 950,093 | $ 1,390,662 | ||
Discount | 0 | (5,057) | ||
Debt Issuance Costs | (12,230) | (20,980) | ||
Total | 937,863 | 1,364,625 | ||
Capital lease obligation | 835 | 1,015 | ||
Less current portion of total debt | 72,347 | 53,139 | ||
Long-term debt | 877,746 | 1,337,523 | ||
Total | 865,516 | 1,311,486 | ||
KFPC Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Principal | 52,730 | 82,375 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | (18) | (33) | ||
Total | 52,712 | 82,342 | ||
KFPC Revolving Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Principal | 37,003 | 20,010 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | 0 | 0 | ||
Total | 37,003 | 20,010 | ||
ABL Facility | ||||
Debt Instrument [Line Items] | ||||
Principal | 0 | 0 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | 0 | 0 | ||
Total | 0 | 0 | ||
Medium-term Notes | USD Tranche | ||||
Debt Instrument [Line Items] | ||||
Principal | 0 | 290,000 | ||
Discount | 0 | (5,057) | ||
Debt Issuance Costs | 0 | (6,985) | ||
Total | 0 | 277,958 | ||
Medium-term Notes | Euro Tranche | ||||
Debt Instrument [Line Items] | ||||
Principal | 104,159 | 277,134 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | (996) | (3,237) | ||
Total | $ 103,163 | 273,897 | ||
Senior Notes | 7.0% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 7.00% | 7.00% | ||
Principal | $ 0 | 394,750 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | 0 | (5,846) | ||
Total | $ 0 | 388,904 | ||
Senior Notes | 4.25% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 4.25% | |||
Principal | $ 400,000 | 0 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | (6,995) | 0 | ||
Total | $ 393,005 | 0 | ||
Senior Notes | 5.25% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.25% | 5.25% | ||
Principal | $ 355,366 | 325,378 | ||
Discount | 0 | 0 | ||
Debt Issuance Costs | (4,221) | (4,879) | ||
Total | $ 351,145 | $ 320,499 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facilities (Details) $ in Thousands, € in Millions | Nov. 30, 2020USD ($) | Nov. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Mar. 06, 2020USD ($) | Mar. 06, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings | $ 950,093 | $ 1,390,662 | ||||||
Outstanding amount | 950,093 | |||||||
USD Tranche | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings | 0 | 290,000 | ||||||
USD Tranche | Term Loan | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt, amount | $ 290,000 | |||||||
Euro Tranche | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of debt, amount | 184,800 | € 160 | ||||||
Euro Tranche | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings | $ 104,159 | $ 277,134 | ||||||
Euro Tranche | Term Loan | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 2.00% | |||||||
Line of credit facility, fixed interest rate | 2.80% | |||||||
Extinguishment of debt, amount | $ 18,000 | € 15 | $ 82,100 | € 70 | $ 84,700 | € 75 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - Senior Notes $ in Millions | Dec. 31, 2020EUR (€) | Dec. 21, 2020USD ($) | Dec. 06, 2018USD ($) | May 31, 2018USD ($) | May 31, 2018EUR (€) | Mar. 31, 2018 |
7.0% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 7.00% | 7.00% | ||||
Repurchase amount | $ 394.8 | $ 4.3 | ||||
Authorized amount to be repurchased | $ 20 | |||||
4.25% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 4.25% | |||||
Senior note face amount | € | € 400,000,000 | |||||
5.25% Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 5.25% | 5.25% | 5.25% | |||
Senior note face amount | $ 355.4 | € 290,000,000 |
Long-Term Debt - ABL Facility (
Long-Term Debt - ABL Facility (Details) - USD ($) | 1 Months Ended | |||
Dec. 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Jan. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Outstanding amount | $ 950,093,000 | |||
ABL Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, borrowing capacity | 300,000,000 | $ 250,000,000 | $ 300,000,000 | |
Right of maximum additional commitments | $ 100,000,000 | |||
Outstanding amount | $ 0 | |||
Minimum percent required of federal outstanding commitments | 60.00% | |||
Price increase, basis points | 0.50% | |||
Reduction in borrowing margin | 0.50% | |||
Decrease in floor rate | 0.75% | |||
Reduction in unused line fee | 0.125% |
Long-Term Debt - KFPC (Details)
Long-Term Debt - KFPC (Details) $ in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)facility | Dec. 31, 2020TWD ($)facility | |
Debt Instrument [Line Items] | ||
Outstanding amount | $ | $ 950,093 | |
KFPC Loan Agreement | ||
Debt Instrument [Line Items] | ||
Outstanding amount | $ 52,700 | $ 1,500 |
Interest rate during period | 1.80% | |
Revolving Credit Facility | Kraton Formosa Polymers Corporation, Expires September 29, 2018 | ||
Debt Instrument [Line Items] | ||
Number of revolving credit facilities | facility | 4 | 4 |
Credit facility, borrowing capacity | $ 76,500 | $ 2,200 |
KFPC Short Term Facility | ||
Debt Instrument [Line Items] | ||
Outstanding amount | $ 37,000 | $ 1,000 |
Long-Term Debt - Debt Issuance
Long-Term Debt - Debt Issuance Cost (Details) $ in Thousands, € in Millions | Nov. 30, 2020USD ($) | Nov. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Mar. 06, 2020USD ($) | Mar. 06, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018 | Jan. 06, 2016 |
Debt Instrument [Line Items] | |||||||||||||
Loss on extinguishment of debt | $ 25,900 | $ (3,700) | $ (40,843) | $ (3,521) | $ (79,866) | ||||||||
Debt issuance cost charged to interest expense | 18,700 | ||||||||||||
Gain (loss) on repurchase of debt | 1,300 | (46,400) | |||||||||||
Debt issuance costs | 12,230 | 20,980 | 12,230 | 20,980 | |||||||||
Debt issuance costs | 14,400 | 22,200 | 14,400 | 22,200 | |||||||||
Amortization of debt issuance costs | 3,045 | 4,654 | $ 5,771 | ||||||||||
Long-term debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | 12,200 | 12,200 | |||||||||||
Interest Rate Swap | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Loss on extinguishment of debt | 1,300 | 2,600 | |||||||||||
Term Loan Facility and 7.0% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost charged to interest expense | 2,500 | ||||||||||||
7.0% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost charged to interest expense | 20,700 | ||||||||||||
Euro Tranche | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost charged to interest expense | 13,900 | ||||||||||||
ABL Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | 0 | 0 | 0 | 0 | |||||||||
Debt issuance costs | $ 2,200 | 1,200 | $ 2,200 | 1,200 | |||||||||
ABL Facility | Long-term debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | 21,000 | 21,000 | |||||||||||
Secured Debt | Euro Tranche | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extinguishment of debt, amount | $ 184,800 | € 160 | |||||||||||
Senior Notes | 7.0% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | ||||||||||
Gain (loss) on repurchase of debt | $ 300 | ||||||||||||
Debt issuance costs | $ 0 | 5,846 | 0 | 5,846 | |||||||||
Senior Notes | 10.5% Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate | 10.50% | ||||||||||||
Term Loan | Euro Tranche | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost charged to interest expense | 1,300 | ||||||||||||
Debt issuance costs | 996 | 3,237 | 996 | 3,237 | |||||||||
Term Loan | USD Tranche | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance cost charged to interest expense | 4,900 | ||||||||||||
Debt issuance costs | $ 0 | $ 6,985 | $ 0 | 6,985 | |||||||||
Term Loan | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Write-off of debt discounts | $ 17,400 | ||||||||||||
Term Loan | Secured Debt | Euro Tranche | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate | 2.00% | 2.00% | |||||||||||
Extinguishment of debt, amount | $ 18,000 | € 15 | $ 82,100 | € 70 | 84,700 | € 75 | |||||||
Term Loan | Secured Debt | USD Tranche | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Extinguishment of debt, amount | $ 290,000 |
Long-Term Debt - Remaining Prin
Long-Term Debt - Remaining Principal Payments on Outstanding Total Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 72,347 |
2022 | 17,778 |
2023 | 215 |
2024 | 228 |
2025 | 504,159 |
Thereafter | 355,366 |
Principal | $ 950,093 |
Fair Value Measurements, Fina_3
Fair Value Measurements, Financial Instruments, and Credit Risk - Summary of Fair Value Measurements at Reporting Date (Details) - Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives Fair Value [Line Items] | ||
Total | $ 2,235 | $ 2,423 |
Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset – current | 14 | |
Other long-term assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset – noncurrent | 32 | |
Retirement plan asset—noncurrent | 2,454 | 2,547 |
Other payables and accruals | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability – current | (219) | (170) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivatives Fair Value [Line Items] | ||
Total | 2,454 | 2,547 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset – current | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other long-term assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset – noncurrent | 0 | |
Retirement plan asset—noncurrent | 2,454 | 2,547 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other payables and accruals | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability – current | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivatives Fair Value [Line Items] | ||
Total | (219) | (124) |
Significant Other Observable Inputs (Level 2) | Other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset – current | 14 | |
Significant Other Observable Inputs (Level 2) | Other long-term assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset – noncurrent | 32 | |
Retirement plan asset—noncurrent | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other payables and accruals | ||
Derivatives Fair Value [Line Items] | ||
Derivative liability – current | $ (219) | $ (170) |
Fair Value Measurements, Fina_4
Fair Value Measurements, Financial Instruments, and Credit Risk - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 31, 2018USD ($) | May 31, 2018EUR (€) | Jan. 03, 2017USD ($) | |
Derivative [Line Items] | ||||||||
Impairment of assets | $ 800 | $ 2,200 | ||||||
Notional amount | $ 925,400 | |||||||
Loss on extinguishment of debt | $ 25,900 | $ (3,700) | $ (40,843) | (3,521) | (79,866) | |||
Gain (loss) on derivatives arising during period | (30,000) | 6,100 | ||||||
Interest Rate Swap | ||||||||
Derivative [Line Items] | ||||||||
Loss on extinguishment of debt | 1,300 | 2,600 | ||||||
Unrealized gain (loss) on derivative | 1,800 | (5,100) | ||||||
Foreign Currency Hedges | ||||||||
Derivative [Line Items] | ||||||||
Aggregate gain (loss) on settlement of hedges | $ (900) | 4,000 | $ 1,100 | |||||
Senior Notes | 5.25% Senior Notes | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument interest rate | 5.25% | 5.25% | 5.25% | 5.25% | ||||
Principal | $ 355,400 | € 290,000,000 | ||||||
Chemical | ||||||||
Derivative [Line Items] | ||||||||
Impairment of assets | $ 800 | |||||||
Polymer | ||||||||
Derivative [Line Items] | ||||||||
Impairment of assets | $ 500 |
Fair Value Measurements, Fina_5
Fair Value Measurements, Financial Instruments, and Credit Risk - Carrying Values and Approximate Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2018 | Mar. 31, 2018 |
7.0% Senior Notes | Senior Notes | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt instrument interest rate | 7.00% | 7.00% | ||
4.25% Senior Notes | Senior Notes | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt instrument interest rate | 4.25% | |||
5.25% Senior Notes | Senior Notes | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt instrument interest rate | 5.25% | 5.25% | ||
Carrying Value | KFPC Loan Agreement | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | $ 52,730 | $ 82,375 | ||
Carrying Value | KFPC Revolving Credit Facilities | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 37,003 | 20,010 | ||
Carrying Value | Capital lease obligation | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 835 | 1,015 | ||
Carrying Value | USD Tranche | Medium-term Notes | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 0 | 290,000 | ||
Carrying Value | Euro Tranche | Medium-term Notes | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 104,159 | 277,134 | ||
Carrying Value | 7.0% Senior Notes | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 0 | 394,750 | ||
Carrying Value | 4.25% Senior Notes | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 400,000 | 0 | ||
Carrying Value | 5.25% Senior Notes | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 355,366 | 325,378 | ||
Carrying Value | ABL Facility | Revolving Credit Facility | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 0 | 0 | ||
Fair Value | KFPC Loan Agreement | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 52,730 | 82,375 | ||
Fair Value | KFPC Revolving Credit Facilities | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 37,003 | 20,010 | ||
Fair Value | Capital lease obligation | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 835 | 1,015 | ||
Fair Value | USD Tranche | Medium-term Notes | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 0 | 290,183 | ||
Fair Value | Euro Tranche | Medium-term Notes | Significant Other Observable Inputs (Level 2) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 103,574 | 277,827 | ||
Fair Value | 7.0% Senior Notes | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 0 | 406,214 | ||
Fair Value | 4.25% Senior Notes | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 409,880 | 0 | ||
Fair Value | 5.25% Senior Notes | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | 367,886 | 338,364 | ||
Fair Value | ABL Facility | Revolving Credit Facility | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Long-term debt | $ 0 | $ 0 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax benefit (expense): | |||
U.S. | $ (9,579) | $ 13,968 | $ (22,158) |
Foreign | (14,501) | (2,314) | (7,903) |
Current tax benefit (expense) | (24,080) | 11,654 | (30,061) |
Deferred tax benefit (expense): | |||
U.S. | (3,376) | (1,621) | 18,868 |
Foreign | 59,490 | 1,780 | 7,619 |
Deferred tax benefit (expense) | 56,114 | 159 | 26,487 |
Income tax benefit (expense) | $ 32,034 | $ 11,813 | $ (3,574) |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income (loss) before income taxes: | |||
U.S. | $ (484,131) | $ 1,998 | $ 10,605 |
Foreign | 230,411 | 42,006 | 63,490 |
Income before income taxes | $ (253,720) | $ 44,004 | $ 74,095 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes at the statutory rate | (21.00%) | (21.00%) | (21.00%) |
Foreign tax rate differential | (0.20%) | 5.10% | 15.30% |
State taxes, net of federal benefit | (0.70%) | (0.10%) | (0.50%) |
Permanent differences | 0.60% | 8.70% | 10.90% |
Cariflex disposition | (4300.00%) | 0.00% | 0.00% |
Dutch transfer of assets | (25900.00%) | 0.00% | 0.00% |
Tax credits | (0.50%) | 3.60% | (0.10%) |
Uncertain tax positions | (1.20%) | 40.30% | (8.30%) |
Valuation allowance | (0.60%) | 10.60% | 8.80% |
Goodwill impairment | 33.10% | 0.00% | 0.00% |
Deferred tax rate change and transition tax | 0.20% | (7.70%) | 14.40% |
U.S. minimum tax on foreign entities | 2.00% | (17.80%) | (16.20%) |
Other | 5.90% | 5.10% | (8.00%) |
Effective tax rate | (12.60%) | 26.80% | (4.70%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred income taxes | $ 83,534,000 | $ 8,863,000 | |
Current income tax benefit | 9,700,000 | ||
AMT refunds, current | 1,600,000 | ||
Valuation allowance for deferred tax assets | 39,517,000 | 38,440,000 | |
Net operating loss carryforwards | 131,500,000 | ||
Operating loss carryforwards, subject to valuation allowance | 129,500,000 | ||
Operating loss carryforwards, subject to expiration | 1,600,000 | ||
Operating loss carryforwards, not subject to expiration | 129,900,000 | ||
Unrecognized tax benefits | 8,849,000 | 11,294,000 | $ 29,603,000 |
Decrease due to lapse in a statute of limitations for unrecognized tax benefits | 3,735,000 | 1,061,000 | |
Unrecognized tax benefits, accrued income tax penalties and interest expense | 1,700,000 | $ 2,100,000 | |
Denmark | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred income taxes | 65,800,000 | ||
United States and China | |||
Operating Loss Carryforwards [Line Items] | |||
Decrease due to lapse in a statute of limitations for unrecognized tax benefits | $ 3,400,000 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 36,093 | $ 49,634 |
Interest carryforwards | 4,974 | 30,429 |
Tax credit carryforwards | 4,938 | 10,301 |
Inventory | 8,309 | 8,100 |
Benefit plans accrual | 31,431 | 25,219 |
Operating leases | 13,279 | 17,543 |
Deferred income | 36,999 | 0 |
Other accruals and reserves | 11,821 | 4,782 |
Deferred tax assets | 147,844 | 146,008 |
Valuation allowance for deferred tax assets | (39,517) | (38,440) |
Net deferred tax assets after valuation allowance | 108,327 | 107,568 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 117,678 | 112,454 |
Intangible assets | 2,603 | 76,293 |
Operating leases | 11,715 | 16,842 |
Investment in subsidiaries | 18,356 | 18,356 |
Deferred tax liabilities | 150,352 | 223,945 |
Net deferred tax liabilities | $ 42,025 | $ 116,377 |
Income Taxes - Deferred Taxes C
Income Taxes - Deferred Taxes Classifications (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax assets | $ 83,534 | $ 8,863 |
Non-current deferred tax liabilities | 125,559 | 125,240 |
Net Deferred Tax Liabilities | $ 42,025 | $ 116,377 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance | $ 11,294 | $ 29,603 |
Increase in current year tax positions | 148 | 185 |
Increase in prior year tax positions | 1,142 | 710 |
Decrease in prior year tax positions | 0 | (18,143) |
Lapse of statute of limitations | (3,735) | (1,061) |
Ending Balance | $ 8,849 | $ 11,294 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands, R$ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |||||
Discount rate, percent | 3.584% | 3.584% | |||
Asset retirement obligation | $ 6,332 | $ 800 | $ 6,523 | $ 5,703 | |
Tax credits generated from purchase of certain goods | 2,000 | R$ 10.2 | |||
Shell Chemicals | |||||
Loss Contingencies [Line Items] | |||||
Receivables | 200 | ||||
Chemical | |||||
Loss Contingencies [Line Items] | |||||
Asset retirement obligation | $ 2,200 | $ 2,700 | |||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Term of contract | 1 year | 1 year |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Lease cost | $ 24,488 | $ 23,093 |
Variable lease cost | 1,090 | 543 |
Operating lease expense | $ 25,578 | $ 23,636 |
Commitments and Contingencies_3
Commitments and Contingencies - Leased Assets Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | $ 70,900 | |
Weighted Average in Months | 5 years 4 months 24 days | |
Railcars | ||
Lessee, Lease, Description [Line Items] | ||
Average Months Remaining on the Lease | 65 months | |
Weighted Average in Months | 1 year | |
Buildings | ||
Lessee, Lease, Description [Line Items] | ||
Average Months Remaining on the Lease | 27 months | |
Weighted Average in Months | 1 year 3 months 18 days | |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Average Months Remaining on the Lease | 36 months | |
Weighted Average in Months | 6 months | |
Land | ||
Lessee, Lease, Description [Line Items] | ||
Average Months Remaining on the Lease | 359 months | |
Weighted Average in Months | 2 years 6 months | |
Other | ||
Lessee, Lease, Description [Line Items] | ||
Average Months Remaining on the Lease | 35 months | |
Weighted Average in Months | 1 month 6 days | |
Operating Lease, Concentration Risk | Operating Lease Liability | Railcars | ||
Lessee, Lease, Description [Line Items] | ||
Percentage | 34.20% | |
Operating Lease, Concentration Risk | Operating Lease Liability | Buildings | ||
Lessee, Lease, Description [Line Items] | ||
Percentage | 40.00% | |
Operating Lease, Concentration Risk | Operating Lease Liability | Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Percentage | 10.30% | |
Operating Lease, Concentration Risk | Operating Lease Liability | Land | ||
Lessee, Lease, Description [Line Items] | ||
Percentage | 8.20% | |
Operating Lease, Concentration Risk | Operating Lease Liability | Other | ||
Lessee, Lease, Description [Line Items] | ||
Percentage | 7.30% | |
Polymer | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | $ 37,327 | |
Polymer | Railcars | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 2,733 | |
Polymer | Buildings | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 24,623 | |
Polymer | Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 2,151 | |
Polymer | Land | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 7,045 | |
Polymer | Other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 775 | |
Chemical | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 48,870 | |
Chemical | Railcars | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 26,748 | |
Chemical | Buildings | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 9,868 | |
Chemical | Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 6,712 | |
Chemical | Land | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | 44 | |
Chemical | Other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, liability | $ 5,498 |
Commitments and Contingencies_4
Commitments and Contingencies - Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021 | $ 21,098 | $ 23,310 |
2022 | 15,992 | 17,629 |
2023 | 14,309 | 13,087 |
2024 | 10,668 | 9,665 |
2025 | 8,605 | 6,264 |
Thereafter | 26,988 | 27,860 |
Total undiscounted operating lease liabilities | 97,660 | 97,815 |
Present value discount | (11,474) | (10,400) |
Foreign currency and other | 11 | 117 |
Total discounted operating lease liabilities | $ 86,197 | $ 87,532 |
Commitments and Contingencies_5
Commitments and Contingencies - Changes in Aggregate Carrying Amount of Asset Retirement Obligation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation | ||
Beginning balance | $ 6,523 | $ 5,703 |
Additional accruals | 119 | 772 |
Accretion expense | 348 | 343 |
Obligations settled | (1,164) | (206) |
Foreign currency translation | (506) | 89 |
Ending balance | $ 6,332 | $ 6,523 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Detail) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)typeplan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | $ 0 | $ 0 | ||
Number of defined benefit pension plans | plan | 2 | |||
Number of types of employee contributions | type | 2 | |||
Post-Retirement Benefits Other Than Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase (decrease) in our accumulated other comprehensive income (loss) | $ 2,900,000 | 3,100,000 | ||
Retirement age of employees | 65 years | |||
Post-Retirement Benefits Other Than Pensions | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution per employee | $ 7,000 | |||
Post-Retirement Benefits Other Than Pensions | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution per employee | $ 10,000 | |||
Post-Retirement Benefits Other Than Pensions | Polymer Segment Savings Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Eligible earnings deferral, maximum | 60.00% | |||
Employee contribution expense | $ 10,600,000 | 9,700,000 | $ 9,200,000 | |
Post-Retirement Benefits Other Than Pensions | Polymer Segment Savings Plan | One Year Service | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer standard contribution, rate | 50.00% | |||
Employee matching contribution, rate | 6.00% | |||
Post-Retirement Benefits Other Than Pensions | Polymer Segment Savings Plan | Five Year Service | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer standard contribution, rate | 100.00% | |||
Employee matching contribution, rate | 6.00% | |||
Number of years of service | 5 years | |||
Post-Retirement Benefits Other Than Pensions | Polymer Segment Savings Plan | Less Than Five Years Of Service | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee enhanced contribution, rate | 4.00% | |||
U.S. Plans | Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | $ 0 | 12,507,000 | ||
Increase (decrease) in our accumulated other comprehensive income (loss) | $ 9,900,000 | $ 100,000 | ||
Expected long-term return on assets under pension plan | 7.00% | 8.00% | ||
Expected long-term rate of return on plan assets before non-interest expense | 7.50% | |||
Expected long-term rate of return on plan assets | 7.00% | 7.00% | ||
Expected long-term rate of return on plan assets, non-investment expense | 0.50% | |||
Non-U.S. Plans | Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendments | $ 300,000 | $ 0 | $ 321,000 | |
Increase (decrease) in our accumulated other comprehensive income (loss) | $ 2,800,000 | $ 9,100,000 | ||
Expected long-term return on assets under pension plan | 5.24% | 5.49% | ||
Expected long-term rate of return on plan assets | 4.93% | 5.24% |
Employee Benefits - Pension Obl
Employee Benefits - Pension Obligation, Plan Assets, Amounts Recognized in Financial Statements and Underlying Actuarial Assumptions 123 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | ||||
Plan amendments | $ 0 | $ 0 | ||
Change in plan assets: | ||||
Fair value at beginning of period | 184,660 | |||
Fair value at end of period | 216,614 | 184,660 | ||
Pension Plan | U.S. Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of period | 194,897 | 177,589 | ||
Service cost | 187 | 2,671 | $ 3,221 | |
Interest cost | 6,621 | 7,781 | 7,200 | |
Participant contributions | 0 | 0 | ||
Benefits paid | (8,170) | (7,354) | ||
Plan amendments | 0 | (12,507) | ||
Settlements | 0 | 0 | ||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 0 | 0 | ||
Actuarial (gain) loss | 22,083 | 26,717 | ||
Exchange rate (gain) loss | 0 | 0 | ||
Benefit obligation at end of period | 215,618 | 194,897 | 177,589 | |
Change in plan assets: | ||||
Fair value at beginning of period | 131,980 | 110,899 | ||
Return on plan assets | 19,653 | 20,849 | ||
Employer contributions | 3,865 | 7,586 | ||
Participant contributions | 0 | 0 | ||
Benefits paid | (8,170) | (7,354) | ||
Settlements | 0 | 0 | ||
Other events | 0 | 0 | ||
Exchange rate (gain) loss | 0 | 0 | ||
Fair value at end of period | 147,328 | 131,980 | 110,899 | |
Funded status at end of period | (68,290) | (62,917) | ||
Amounts recognized on balance sheet: | ||||
Current liabilities | 0 | 0 | ||
Noncurrent liabilities | (68,290) | (62,917) | ||
Defined benefit pension plan liabilities | (68,290) | (62,917) | ||
Amounts recognized in accumulated other comprehensive loss: | ||||
Prior service costs | 0 | 0 | ||
Net actuarial loss | 68,407 | 58,505 | ||
Amounts recognized in accumulated other comprehensive loss | 68,407 | 58,505 | ||
Accumulated benefit obligation | 215,618 | 194,887 | ||
Pension Plan | Non-U.S. Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of period | 95,265 | 81,108 | ||
Service cost | 1,861 | 1,491 | 2,504 | |
Interest cost | 1,656 | 2,112 | 2,073 | |
Participant contributions | 242 | 215 | ||
Benefits paid | (5,255) | (3,577) | ||
Plan amendments | $ (300) | 0 | (321) | |
Settlements | (1,018) | (400) | ||
Defined Benefit Plan, Benefit Obligation, Period Increase (Decrease) | 9,183 | 0 | ||
Actuarial (gain) loss | 5,326 | 13,070 | ||
Exchange rate (gain) loss | 5,504 | 1,567 | ||
Benefit obligation at end of period | 112,764 | 95,265 | 81,108 | |
Change in plan assets: | ||||
Fair value at beginning of period | 52,680 | 45,024 | ||
Return on plan assets | 7,501 | 5,926 | ||
Employer contributions | 5,502 | 4,067 | ||
Participant contributions | 242 | 215 | ||
Benefits paid | (5,255) | (3,577) | ||
Settlements | (1,018) | (400) | ||
Other events | 6,952 | 0 | ||
Exchange rate (gain) loss | 2,682 | 1,425 | ||
Fair value at end of period | 69,286 | 52,680 | $ 45,024 | |
Funded status at end of period | (43,478) | (42,585) | ||
Amounts recognized on balance sheet: | ||||
Current liabilities | (2,945) | (2,323) | ||
Noncurrent liabilities | (40,533) | (40,262) | ||
Defined benefit pension plan liabilities | (43,478) | (42,585) | ||
Amounts recognized in accumulated other comprehensive loss: | ||||
Prior service costs | 2,754 | 573 | ||
Net actuarial loss | 21,112 | 20,495 | ||
Amounts recognized in accumulated other comprehensive loss | 23,866 | 21,068 | ||
Accumulated benefit obligation | $ 106,525 | $ 91,152 |
Employee Benefits - Estimated F
Employee Benefits - Estimated Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Plan | U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 Employer contributions | $ 10,245 |
Benefit Payments | |
2021 | 8,215 |
2022 | 8,584 |
2023 | 8,924 |
2024 | 9,195 |
2025 | 9,510 |
Years 2026-2030 | 51,938 |
Total Benefit Payments | 96,366 |
Pension Plan | Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 Employer contributions | 4,888 |
Benefit Payments | |
2021 | 5,431 |
2022 | 6,240 |
2023 | 5,371 |
2024 | 5,633 |
2025 | 6,914 |
Years 2026-2030 | 34,566 |
Total Benefit Payments | 64,155 |
Post-Retirement Benefits Other Than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 Employer contributions | 1,461 |
Benefit Payments | |
2021 | 1,461 |
2022 | 1,458 |
2023 | 1,449 |
2024 | 1,439 |
2025 | 1,459 |
Years 2026-2030 | 7,190 |
Total Benefit Payments | $ 14,456 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Pension Costs - United States Retirement Benefit Plan (Detail) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost benefits earned during the period | $ 187 | $ 2,671 | $ 3,221 |
Interest on prior year’s projected benefit obligation | 6,621 | 7,781 | 7,200 |
Expected return on plan assets | (9,106) | (10,065) | (9,808) |
One-time settlement costs | 0 | 0 | 0 |
Amortization of prior service costs | 0 | 0 | 0 |
Amortization of net actuarial loss | 1,634 | 3,487 | 4,650 |
Net periodic pension costs | (664) | 3,874 | 5,263 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost benefits earned during the period | 1,861 | 1,491 | 2,504 |
Interest on prior year’s projected benefit obligation | 1,656 | 2,112 | 2,073 |
Expected return on plan assets | (2,731) | (2,520) | (2,685) |
One-time settlement costs | 143 | 56 | 0 |
Amortization of prior service costs | 17 | 34 | 13 |
Amortization of net actuarial loss | 1,050 | 419 | 645 |
Net periodic pension costs | $ 1,996 | $ 1,592 | $ 2,550 |
Employee Benefits - Future Amor
Employee Benefits - Future Amortization (Details) - Pension Plan $ in Thousands | Dec. 31, 2020USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service costs | $ 0 |
Amortization of net actuarial loss | 2,420 |
Total | 2,420 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service costs | 19 |
Amortization of net actuarial loss | 1,048 |
Total | $ 1,067 |
Employee Benefits - Weighted Av
Employee Benefits - Weighted Average Assumptions used to Determine Benefit Obligations and Net Periodic Benefit Cost - United States Retirement Benefit Plan (Detail) - Pension Plan | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Plans | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate | 2.66% | 3.45% |
Rates of increase in salary compensation level | 3.00% | 3.00% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate | 3.45% | 4.45% |
Rates of increase in salary compensation level | 3.00% | 3.00% |
Expected long-term rate of return on plan assets | 7.00% | 8.00% |
Non-U.S. Plans | ||
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate | 1.13% | 1.79% |
Rates of increase in salary compensation level | 2.73% | 2.96% |
Expected long-term rate of return on plan assets | 4.93% | 5.24% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate | 1.79% | 2.63% |
Rates of increase in salary compensation level | 2.96% | 2.98% |
Expected long-term rate of return on plan assets | 5.24% | 5.49% |
Employee Benefits - Pension Pla
Employee Benefits - Pension Plan Asset Allocations by Asset Category (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
U.S. Plans | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 50.00% | |
Percentage of Plan Assets | 68.10% | 68.10% |
U.S. Plans | Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 35.00% | |
Percentage of Plan Assets | 31.90% | 31.90% |
U.S. Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 15.00% | |
Percentage of Plan Assets | 0.00% | 0.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets | 100.00% | 100.00% |
Non-U.S. Plans | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 45.00% | |
Percentage of Plan Assets | 36.20% | 42.10% |
Non-U.S. Plans | Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Percentage of Plan Assets | 50.90% | 53.70% |
Non-U.S. Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 55.00% | |
Percentage of Plan Assets | 12.90% | 4.20% |
Employee Benefits - Fair Value
Employee Benefits - Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 216,614 | $ 184,660 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 77,837 | 69,928 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 130,759 | 114,431 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,018 | 301 |
Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 70,400 | 63,000 |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 125,359 | 112,094 |
Equity | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 62,790 | 56,220 |
Equity | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 62,569 | 55,874 |
Equity | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 37,500 | 33,700 |
Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 82,253 | 70,358 |
Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14,063 | 12,745 |
Debt | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 68,190 | 57,613 |
Debt | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Debt | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 32,900 | 29,300 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9,002 | 2,208 |
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 984 | 963 |
Other | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 944 |
Other | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 8,018 | $ 301 |
Employee Benefits - Plan Obliga
Employee Benefits - Plan Obligation, Funded Status and Amounts Recognized in Financial Statements and Underlying Actuarial and Other Assumptions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Plan amendments | $ 0 | $ 0 | |
Change in plan assets: | |||
Fair value at beginning of period | 184,660 | ||
Fair value at end of period | 216,614 | 184,660 | |
Post-Retirement Benefits Other Than Pensions | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | 23,979 | 22,824 | |
Service cost | 291 | 290 | $ 490 |
Interest cost | 789 | 941 | 1,224 |
Benefits and expenses paid (premiums) | (921) | (2,055) | |
Actuarial (gain) loss | 2,031 | 1,979 | |
Benefit obligation at end of period | 26,169 | 23,979 | 22,824 |
Change in plan assets: | |||
Fair value at beginning of period | 0 | 0 | |
Employer contributions | 921 | 2,055 | |
Benefits paid | (921) | (2,055) | |
Fair value at end of period | 0 | 0 | $ 0 |
Funded status at end of period | (26,169) | (23,979) | |
Amounts recognized in the balance sheet: | |||
Current liabilities | (1,443) | (1,446) | |
Noncurrent liabilities | (24,726) | (22,533) | |
Defined benefit pension plan liabilities | (26,169) | (23,979) | |
Amounts recognized in accumulated other comprehensive loss: | |||
Prior service costs | (7,507) | (9,254) | |
Net actuarial loss | 10,977 | 9,833 | |
Amounts recognized in accumulated other comprehensive loss | 3,470 | 579 | |
Ripplewood Transaction Shell Chemicals | Post-Retirement Benefits Other Than Pensions | |||
Amounts recognized in accumulated other comprehensive loss: | |||
Retirement plan asset—noncurrent | $ 4,400 | $ 5,700 |
Employee Benefits - Component_2
Employee Benefits - Components of Net Periodic Pension Costs - Postretirement Benefits Other Than Pensions (Detail) - Post-Retirement Benefits Other Than Pensions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 291 | $ 290 | $ 490 |
Interest cost | 789 | 941 | 1,224 |
Amortization of prior service costs | (1,747) | (1,747) | (582) |
Amortization of net actuarial loss | 887 | 621 | 742 |
Net periodic pension costs | $ 220 | $ 105 | $ 1,874 |
Employee Benefits - Weighted _2
Employee Benefits - Weighted Average Assumptions used to Determine Benefit Obligations and Net Periodic Benefit Cost - Postretirement Benefits Other Than Pensions (Detail) - Post-Retirement Benefits Other Than Pensions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average assumptions used to determine benefit obligations: | ||
Discount rate | 2.55% | 3.34% |
Weighted average assumptions used to determine net periodic benefit cost: | ||
Discount rate | 3.34% | 4.36% |
Employee Benefits - Assumed Hea
Employee Benefits - Assumed Health Care Cost Trend Rates (Detail) - Post-Retirement Benefits Other Than Pensions - Pre-65 health care cost trend | Dec. 31, 2020 | Dec. 31, 2019 |
Assumed Pre-65 health care cost trend rates: | ||
Health care cost trend rate assumed for next year | 7.00% | 7.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% |
Employee Benefits - Effect of O
Employee Benefits - Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates (Detail) - Post-Retirement Benefits Other Than Pensions $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect on total of service and interest cost components, 1% Increase | $ 1,576 |
Effect on postretirement benefit obligation, 1% Increase | 41,919 |
Effect on total of service and interest cost components, 1% Decrease | (2,382) |
Effect on postretirement benefit obligation, 1% Decrease | $ (55,903) |
Industry Segment and Foreign _3
Industry Segment and Foreign Operations - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||||||||||
Number of operating segments | segment | 2 | |||||||||
Segment Reporting Information [Line Items] | ||||||||||
Capital expenditure | $ 73,893,000 | $ 103,688,000 | $ 100,122,000 | |||||||
Gain on insurance proceeds | $ 14,300,000 | $ 7,500,000 | $ 11,100,000 | 0 | 32,850,000 | 8,900,000 | ||||
Goodwill, impairment loss | $ 400,000,000 | 400,000,000 | 0 | 0 | ||||||
Hurricane | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Gain on insurance proceeds | 32,900,000 | 1,100,000 | ||||||||
Proceeds from insurance settlement | 41,800,000 | |||||||||
Polymer | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Capital expenditure | 36,500,000 | 58,700,000 | ||||||||
Gain on insurance proceeds | 0 | 0 | 0 | |||||||
Goodwill, impairment loss | 0 | 0 | ||||||||
Chemical | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Capital expenditure | 37,400,000 | 45,000,000 | ||||||||
Gain on insurance proceeds | $ 32,850,000 | 0 | $ 8,900,000 | |||||||
Goodwill, impairment loss | $ 0 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 0 |
Industry Segment and Foreign _4
Industry Segment and Foreign Operations - Sales Revenue by Product Groups (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | $ 406,764,000 | $ 373,438,000 | $ 355,679,000 | $ 427,269,000 | $ 408,524,000 | $ 444,221,000 | $ 495,280,000 | $ 456,411,000 | $ 1,563,150,000 | $ 1,804,436,000 | $ 2,011,675,000 | |
Cost of goods sold | 1,165,279,000 | 1,390,007,000 | 1,431,069,000 | |||||||||
Gross profit | 116,873,000 | 68,754,000 | 93,044,000 | 119,200,000 | 76,946,000 | 101,279,000 | 129,202,000 | 107,002,000 | 397,871,000 | 414,429,000 | 580,606,000 | |
Operating expenses | ||||||||||||
Research and development | 40,743,000 | 41,073,000 | 41,296,000 | |||||||||
Selling, general, and administrative | 161,944,000 | 149,800,000 | 153,897,000 | |||||||||
Depreciation and amortization | 126,022,000 | 136,171,000 | 141,410,000 | |||||||||
Gain on insurance proceeds | (14,300,000) | (7,500,000) | (11,100,000) | 0 | (32,850,000) | (8,900,000) | ||||||
Loss on disposal of fixed assets | 750,000 | 773,000 | 2,169,000 | |||||||||
Operating income (loss) | 34,111,000 | (406,771,000) | $ 12,831,000 | $ 28,241,000 | (9,944,000) | $ 38,103,000 | $ 56,168,000 | $ 35,135,000 | (331,588,000) | 119,462,000 | 250,734,000 | |
Other income (expense) | 995,000 | 3,339,000 | (3,472,000) | |||||||||
Disposition and exit of business activities | (175,189,000) | 0 | 0 | |||||||||
Loss on extinguishment of debt | 25,900,000 | (3,700,000) | (40,843,000) | (3,521,000) | (79,866,000) | |||||||
Earnings of unconsolidated joint venture | 457,000 | 506,000 | 471,000 | |||||||||
Interest expense, net | (57,930,000) | (75,782,000) | (93,772,000) | |||||||||
Income (loss) before income taxes | (253,720,000) | 44,004,000 | 74,095,000 | |||||||||
Goodwill, impairment loss | 400,000,000 | 400,000,000 | 0 | 0 | ||||||||
Polymer | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 857,558,000 | 1,052,968,000 | 1,221,586,000 | |||||||||
Cost of goods sold | 627,297,000 | 820,410,000 | 872,506,000 | |||||||||
Gross profit | 230,261,000 | 232,558,000 | 349,080,000 | |||||||||
Operating expenses | ||||||||||||
Research and development | 29,972,000 | 29,392,000 | 28,957,000 | |||||||||
Selling, general, and administrative | 90,074,000 | 86,025,000 | 89,753,000 | |||||||||
Depreciation and amortization | 52,910,000 | 59,151,000 | 71,006,000 | |||||||||
Gain on insurance proceeds | 0 | 0 | 0 | |||||||||
Loss on disposal of fixed assets | 503,000 | 647,000 | (202,000) | |||||||||
Operating income (loss) | 56,802,000 | 57,343,000 | 159,162,000 | |||||||||
Goodwill, impairment loss | 0 | 0 | ||||||||||
Chemical | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 705,592,000 | 751,468,000 | 790,089,000 | |||||||||
Cost of goods sold | 537,982,000 | 569,597,000 | 558,563,000 | |||||||||
Gross profit | 167,610,000 | 181,871,000 | 231,526,000 | |||||||||
Operating expenses | ||||||||||||
Research and development | 10,771,000 | 11,681,000 | 12,339,000 | |||||||||
Selling, general, and administrative | 71,870,000 | 63,775,000 | 64,144,000 | |||||||||
Depreciation and amortization | 73,112,000 | 77,020,000 | 70,404,000 | |||||||||
Gain on insurance proceeds | $ (32,850,000) | 0 | (8,900,000) | |||||||||
Loss on disposal of fixed assets | 247,000 | 126,000 | (1,967,000) | |||||||||
Operating income (loss) | (388,390,000) | 62,119,000 | $ 91,572,000 | |||||||||
Goodwill, impairment loss | $ 0 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 0 |
Industry Segment and Foreign _5
Industry Segment and Foreign Operations - Goodwill (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||||||
Balance at January 1, 2020 | $ 772,418,000 | $ 772,418,000 | ||||
Goodwill impairment charge | $ (400,000,000) | (400,000,000) | $ 0 | $ 0 | ||
Foreign currency translation | 2,643,000 | |||||
Balance at September 30, 2020 | $ 375,061,000 | 375,061,000 | 772,418,000 | |||
Polymer | ||||||
Goodwill [Roll Forward] | ||||||
Balance at January 1, 2020 | 0 | 0 | ||||
Goodwill impairment charge | 0 | 0 | ||||
Balance at September 30, 2020 | 0 | 0 | 0 | |||
Chemical | ||||||
Goodwill [Roll Forward] | ||||||
Balance at January 1, 2020 | 772,418,000 | 772,418,000 | ||||
Goodwill impairment charge | 0 | $ (400,000,000) | $ (400,000,000) | (400,000,000) | 0 | |
Balance at September 30, 2020 | $ 375,061,000 | $ 375,061,000 | $ 772,418,000 |
Industry Segment and Foreign _6
Industry Segment and Foreign Operations - Long-lived Assets Including Goodwill and Total Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment | $ 942,703 | $ 925,940 |
Investment in unconsolidated joint venture | 12,723 | 11,971 |
Goodwill | 375,061 | 772,418 |
Total assets | 2,460,957 | 2,832,385 |
Polymer | ||
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment | 523,067 | 526,692 |
Investment in unconsolidated joint venture | 12,723 | 11,971 |
Goodwill | 0 | 0 |
Total assets | 1,104,954 | 1,097,691 |
Chemical | ||
Segment Reporting Information [Line Items] | ||
Property, plant, and equipment | 419,636 | 399,248 |
Investment in unconsolidated joint venture | 0 | 0 |
Goodwill | 375,061 | 772,418 |
Total assets | $ 1,356,003 | $ 1,734,694 |
Industry Segment and Foreign _7
Industry Segment and Foreign Operations - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 406,764 | $ 373,438 | $ 355,679 | $ 427,269 | $ 408,524 | $ 444,221 | $ 495,280 | $ 456,411 | $ 1,563,150 | $ 1,804,436 | $ 2,011,675 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 601,118 | 670,082 | 737,501 | ||||||||
Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 133,743 | 159,259 | 195,359 | ||||||||
All other countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 828,289 | 975,095 | 1,078,815 | ||||||||
Polymer | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 857,558 | 1,052,968 | 1,221,586 | ||||||||
Polymer | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 311,129 | 352,735 | 412,308 | ||||||||
Polymer | Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 89,304 | 107,661 | 141,451 | ||||||||
Polymer | All other countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 457,125 | 592,572 | 667,827 | ||||||||
Chemical | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 705,592 | 751,468 | 790,089 | ||||||||
Chemical | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 289,989 | 317,347 | 325,193 | ||||||||
Chemical | Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 44,439 | 51,598 | 53,908 | ||||||||
Chemical | All other countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 371,164 | $ 382,523 | $ 410,988 |
Industry Segment and Foreign _8
Industry Segment and Foreign Operations - Long-Lived Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | $ 1,674,982 | $ 1,565,137 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 1,005,148 | 953,945 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 191,726 | 183,963 |
France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 171,899 | 157,938 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 85,445 | 75,787 |
Sweden | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 78,329 | 64,281 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 142,435 | 129,223 |
Polymer | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 1,087,718 | 1,037,395 |
Polymer | Reportable Geographical Components | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 591,361 | 568,710 |
Polymer | Reportable Geographical Components | Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 191,726 | 183,963 |
Polymer | Reportable Geographical Components | France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 156,410 | 144,785 |
Polymer | Reportable Geographical Components | Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 79,388 | 70,617 |
Polymer | Reportable Geographical Components | Sweden | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 0 | 0 |
Polymer | Reportable Geographical Components | All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 68,833 | 69,320 |
Chemical | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 587,264 | 527,742 |
Chemical | Reportable Geographical Components | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 413,787 | 385,235 |
Chemical | Reportable Geographical Components | Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 0 | 0 |
Chemical | Reportable Geographical Components | France | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 15,489 | 13,153 |
Chemical | Reportable Geographical Components | Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 6,057 | 5,170 |
Chemical | Reportable Geographical Components | Sweden | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | 78,329 | 64,281 |
Chemical | Reportable Geographical Components | All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets, at cost | $ 73,602 | $ 59,903 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
KFPC | Variable Interest Entity, Primary Beneficiary | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 2.3 | $ 1.1 | |
Ownership percentage | 50.00% | ||
Purchases from related party | $ 47.6 | 48.5 | $ 47.2 |
Styrenic Block Copolymer Joint Venture | |||
Related Party Transaction [Line Items] | |||
Percentage of equity investment | 50.00% | ||
Due to related parties | $ 14.8 | 16.4 | |
Amounts of transaction | $ 28.4 | $ 33 | $ 35.4 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) - kt | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
KFPC | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 50.00% | |
Minimum percent to be purchased from plant production | 80.00% | |
Formosa Petrochemical Corporation | Taiwan | BASF, S.A. | ||
Variable Interest Entity [Line Items] | ||
Capacity of plant | 30 |
Variable Interest Entity - Summ
Variable Interest Entity - Summary of Assets and Liabilities at Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 85,901 | $ 35,033 | |
Other current assets | 15,338 | 22,385 | |
Property, plant, and equipment | 942,703 | 925,940 | |
Intangible assets, less accumulated amortization of $330,070 and $285,819 | 294,734 | 325,877 | |
Long-term operating lease assets, net | 84,042 | 85,003 | $ 70,900 |
Other long-term assets | 21,770 | 25,219 | |
Total assets | 2,460,957 | 2,832,385 | |
Current portion of long-term debt | 72,347 | 53,139 | |
Current liabilities | 433,087 | 366,644 | |
Long-term debt | 937,863 | 1,364,625 | |
Deferred income taxes | 125,559 | 125,240 | |
Long-term operating lease liabilities | 67,898 | 66,624 | |
Total liabilities | 1,811,955 | 2,042,957 | |
KFPC | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 3,097 | 10,402 | |
Other current assets | 17,304 | 14,847 | |
Property, plant, and equipment | 150,838 | 155,153 | |
Intangible assets, less accumulated amortization of $330,070 and $285,819 | 7,959 | 8,133 | |
Long-term operating lease assets, net | 7,178 | 7,044 | |
Other long-term assets | 6,510 | 2,147 | |
Total assets | 192,886 | 197,726 | |
Current portion of long-term debt | 72,156 | 52,961 | |
Current liabilities | 5,209 | 12,801 | |
Long-term debt | 17,559 | 49,391 | |
Deferred income taxes | 1,984 | 0 | |
Long-term operating lease liabilities | 6,700 | 6,603 | |
Total liabilities | $ 103,608 | $ 121,756 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 406,764 | $ 373,438 | $ 355,679 | $ 427,269 | $ 408,524 | $ 444,221 | $ 495,280 | $ 456,411 | $ 1,563,150 | $ 1,804,436 | $ 2,011,675 |
Gross profit | 116,873 | 68,754 | 93,044 | 119,200 | 76,946 | 101,279 | 129,202 | 107,002 | 397,871 | 414,429 | 580,606 |
Operating income (loss) | 34,111 | (406,771) | 12,831 | 28,241 | (9,944) | 38,103 | 56,168 | 35,135 | (331,588) | 119,462 | 250,734 |
Net income (loss) attributable to Kraton | $ (21,926) | $ (403,794) | $ (7,968) | $ 208,086 | $ (21,264) | $ 18,693 | $ 41,208 | $ 12,668 | $ (225,602) | $ 51,305 | $ 67,015 |
Earnings (loss) per common share | |||||||||||
Basic (in dollars per share) | $ (0.69) | $ (12.67) | $ (0.25) | $ 6.55 | $ (0.67) | $ 0.59 | $ 1.29 | $ 0.40 | $ (7.08) | $ 1.61 | $ 2.10 |
Diluted (in dollars per share) | $ (0.69) | $ (12.67) | $ (0.25) | $ 6.47 | $ (0.67) | $ 0.58 | $ 1.28 | $ 0.39 | $ (7.08) | $ 1.60 | $ 2.08 |
Weighted average common shares outstanding | |||||||||||
Basic (in shares) | 31,798 | 31,787 | 31,782 | 31,587 | 31,516 | 31,486 | 31,692 | 31,633 | 31,746 | 31,581 | 31,416 |
Diluted (in shares) | 31,798 | 31,787 | 31,782 | 31,949 | 31,516 | 31,823 | 32,017 | 31,901 | 31,746 | 31,881 | 31,789 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Gain on insurance proceeds | $ 14,300 | $ 7,500 | $ 11,100 | $ 0 | $ 32,850 | $ 8,900 | ||||
Goodwill, impairment loss | $ 400,000 | 400,000 | 0 | 0 | ||||||
Loss on extinguishment of debt | $ (25,900) | $ 3,700 | 40,843 | 3,521 | 79,866 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Disposition and exit of business activities | $ 175,189 | $ 0 | $ 0 | |||||||
Cariflex | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Disposition and exit of business activities | $ 175,200 | |||||||||
Cariflex | Disposal Group | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Professional fees | $ 5,000 |
SCHEDULE II_VALUATION AND QUA_2
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 434 | $ 784 | $ 824 |
Net Expenses | 164 | (117) | (40) |
Write-offs | 0 | (233) | 0 |
Balance at End of Period | 598 | 434 | 784 |
Inventory reserves | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 8,923 | 8,951 | 11,452 |
Net Expenses | 22 | 6 | (2,274) |
Foreign Currency | 23 | (34) | (227) |
Balance at End of Period | $ 8,968 | $ 8,923 | $ 8,951 |