Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37586 | |
Entity Registrant Name | INGEVITY CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4027764 | |
Entity Address, Address Line One | 4920 O'Hear Avenue Suite 400 | |
Entity Address, City or Town | North Charleston | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29405 | |
City Area Code | 843 | |
Local Phone Number | 740-2300 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | NGVT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,286,199 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001653477 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 376.8 | $ 331.7 | $ 1,055.5 | $ 890.5 |
Cost of sales | 235 | 192.1 | 647.7 | 552.4 |
Gross profit | 141.8 | 139.6 | 407.8 | 338.1 |
Selling, general, and administrative expenses | 43.5 | 34.9 | 131 | 107.9 |
Research and technical expenses | 6.8 | 5.2 | 19.3 | 16.8 |
Restructuring and other (income) charges, net | 4.1 | 5.5 | 12.3 | 13.3 |
Acquisition-related costs | 0.2 | 0 | 0.9 | 1.7 |
Other (income) expense, net | 84.6 | (3) | 81.6 | (0.1) |
Interest expense, net | 11.6 | 8.9 | 36.2 | 29.8 |
Income (loss) before income taxes | (9) | 88.1 | 126.5 | 168.7 |
Provision (benefit) for income taxes | (4.8) | 18.2 | 37.7 | 33.3 |
Net income (loss) | $ (4.2) | $ 69.9 | $ 88.8 | $ 135.4 |
Per share data | ||||
Basic earnings (loss) per share (usd per share) | $ (0.11) | $ 1.69 | $ 2.22 | $ 3.27 |
Diluted earnings (loss) per share (usd per share) | $ (0.11) | $ 1.69 | $ 2.21 | $ 3.26 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (4.2) | $ 69.9 | $ 88.8 | $ 135.4 |
Foreign currency adjustments: | ||||
Foreign currency translation adjustment | (16.7) | 27.6 | (8.5) | (14.2) |
Unrealized gain (loss) on net investment hedges, net of tax provision (benefit) of $0.9, $(1.9), $1.9, and $(0.8) | 2.9 | (6.2) | 6.1 | (2.7) |
Total foreign currency adjustments, net of tax provision (benefit) of $0.9, $(1.9), $1.9, and $(0.8) | (13.8) | 21.4 | (2.4) | (16.9) |
Derivative instruments: | ||||
Unrealized gain (loss), net of tax provision (benefit) of $0.8, $0.2, $1.6, and $(1.4) | 2.8 | 0.7 | 5.3 | (4.5) |
Reclassifications of deferred derivative instruments (gain) loss, included in net income (loss), net of tax (provision) benefit of $(0.1), $0.1, $(0.1), and $0.2 | (0.1) | 0.4 | (0.2) | 0.7 |
Total derivative instruments, net of tax provision (benefit) of $0.7, $0.3, $1.5, and $(1.2) | 2.7 | 1.1 | 5.1 | (3.8) |
Pension & other postretirement benefits: | ||||
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax of zero for all periods | 0 | 0 | 0 | 0 |
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, included in net income, net of tax of zero for all periods | 0 | 0.1 | 0.1 | 0.1 |
Total pension and other postretirement benefits, net of tax of zero for all periods | 0 | 0.1 | 0.1 | 0.1 |
Other comprehensive income (loss), net of tax | (11.1) | 22.6 | 2.8 | (20.6) |
Comprehensive income (loss) | $ (15.3) | $ 92.5 | $ 91.6 | $ 114.8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on net investment hedge | $ 900,000 | $ (1,900,000) | $ 1,900,000 | $ (800,000) |
Foreign currency tax | 900,000 | (1,900,000) | 1,900,000 | (800,000) |
Derivative instruments, unrealized gain (loss), tax | 800,000 | 200,000 | 1,600,000 | (1,400,000) |
Reclassification derivative instrument, tax | (100,000) | 100,000 | (100,000) | 200,000 |
Derivative instrument, tax | 700,000 | 300,000 | 1,500,000 | (1,200,000) |
Unrealized actuarial gains (losses) and prior service (costs) credits, tax | 0 | 0 | 0 | 0 |
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, tax | 0 | 0 | 0 | 0 |
Total pension and other postretirement benefits, tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), tax | $ 1,600,000 | $ (1,600,000) | $ 3,400,000 | $ (2,000,000) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 269.4 | $ 257.7 |
Accounts receivable, net of allowance for credit losses of $1.9 million - 2021 and $1.9 million - 2020 | 175.8 | 148 |
Inventories, net | 228.3 | 189 |
Prepaid and other current assets | 46.8 | 34 |
Current assets | 720.3 | 628.7 |
Property, plant and equipment, net | 701.2 | 703.6 |
Operating lease assets, net | 50.7 | 49.1 |
Goodwill | 440.7 | 445.3 |
Other intangibles, net | 344.8 | 373.3 |
Deferred income taxes | 6.9 | 8.1 |
Restricted investment, net of allowance for credit losses of $0.5 million - 2021 and $0.9 million - 2020 | 75.5 | 73.6 |
Other assets | 86.1 | 52.8 |
Total Assets | 2,426.2 | 2,334.5 |
Liabilities | ||
Accounts payable | 127.4 | 104.2 |
Accrued expenses | 46.1 | 46.6 |
Accrued payroll and employee benefits | 34.6 | 25.1 |
Current operating lease liabilities | 16.4 | 16.2 |
Notes payable and current maturities of long-term debt | 19.5 | 26 |
Income taxes payable | 3.6 | 5.3 |
Current liabilities | 247.6 | 223.4 |
Long-term debt including finance lease obligations | 1,254.4 | 1,267.4 |
Noncurrent operating lease liabilities | 35.7 | 34.7 |
Deferred income taxes | 116.3 | 117 |
Other liabilities | 127.7 | 49.9 |
Total Liabilities | 1,781.7 | 1,692.4 |
Commitments and contingencies (Note 14) | ||
Equity | ||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding - 2021 and 2020) | 0 | 0 |
Common stock (par value $0.01 per share; 300,000,000 shares authorized; issued: 43,091,948 - 2021 and 42,912,846 - 2020; outstanding: 39,374,530 - 2021 and 40,509,997 - 2020) | 0.4 | 0.4 |
Additional paid-in capital | 133.4 | 121.3 |
Retained earnings | 766.8 | 678 |
Accumulated other comprehensive income (loss) | 7.5 | 4.7 |
Treasury stock, common stock, at cost (3,717,418 shares - 2021 and 2,402,849 shares - 2020) | (263.6) | (162.3) |
Total Equity | 644.5 | 642.1 |
Total Liabilities and Equity | $ 2,426.2 | $ 2,334.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1.9 | $ 1.9 |
Held-to-maturity, allowance for credit loss | $ 0.5 | $ 0.9 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (shares) | 43,091,948 | 42,912,846 |
Common stock shares outstanding (shares) | 39,374,530 | 40,509,997 |
Treasury shares (shares) | 3,717,418 | 2,402,849 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash provided by (used in) operating activities: | |||
Net income (loss) | $ 88.8 | $ 135.4 | |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 81.7 | 73.5 | |
Non cash operating lease costs | 12.9 | 13.6 | |
Deferred income taxes | (2.2) | 11.3 | |
Share-based compensation | 9.8 | 4.3 | |
Other non-cash items | 10.6 | 14.9 | |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable, net | (28.2) | (5.6) | |
Inventories, net | (39.2) | 9 | |
Prepaid and other current assets | (7.5) | 1.5 | |
Accounts payable | 20.3 | (8.5) | |
Accrued expenses | (0.2) | 3.3 | |
Accrued payroll and employee benefits | 9.6 | (12.1) | |
Income taxes | (4.6) | (19.2) | |
Operating leases | (15.3) | (13.8) | |
Litigation expense | 85 | 0 | |
Changes in other operating assets and liabilities, net | (4.5) | (8.5) | |
Net cash provided by (used in) operating activities | 217 | 199.1 | |
Cash provided by (used in) investing activities: | |||
Capital expenditures | (66.4) | (51) | |
Finance lease expenditures | 0 | (23.8) | |
Purchase of strategic investments | (16.5) | 0 | |
Other investing activities, net | (0.5) | (3.6) | |
Net cash provided by (used in) investing activities | (83.4) | (78.4) | |
Cash provided by (used in) financing activities: | |||
Proceeds from revolving credit facility | 0 | 346.1 | |
Payments on revolving credit facility | 0 | (307.3) | |
Payments on long-term borrowings | (18.8) | (14.1) | |
Finance lease obligations, net | (0.6) | 23.3 | |
Borrowings (repayments) of notes payable and other short-term borrowings, net | (1.9) | (0.9) | |
Tax payments related to withholdings on vested equity awards | (2.4) | (3) | |
Proceeds and withholdings from share-based compensation plans, net | 3.7 | 3.1 | |
Repurchases of common stock under publicly announced plan | (100.3) | (32.4) | |
Net cash provided by (used in) financing activities | (120.3) | 14.8 | |
Increase (decrease) in cash, cash equivalents, and restricted cash | 13.3 | 135.5 | |
Effect of exchange rate changes on cash | (1.8) | 0.3 | |
Change in cash, cash equivalents, and restricted cash | 11.5 | 135.8 | |
Cash, cash equivalents, and restricted cash at beginning of period | 258.4 | 64.6 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 269.9 | 200.4 |
Supplemental cash flow information: | |||
Cash paid for interest, net of capitalized interest | 35.5 | 37.7 | |
Cash paid for income taxes, net of refunds | 43.2 | 41.4 | |
Purchases of property, plant and equipment in accounts payable | 5.9 | 1.9 | |
Leased assets obtained in exchange for new finance lease liabilities | 0 | 23.8 | |
Leased assets obtained in exchange for new operating lease liabilities | $ 14.7 | $ 24.5 | |
[1] | Includes restricted cash of $0.5 million and $2.2 million and cash and cash equivalents of $269.4 million and $198.2 million at September 30, 2021 and 2020, respectively. Restricted cash is included within "Prepaid and other current assets" within the condensed consolidated balance sheets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Cash Flows [Abstract] | ||
Restricted cash and cash equivalents | $ 0.5 | $ 2.2 |
Cash and cash equivalents | $ 269.4 | $ 198.2 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Ingevity Corporation ("Ingevity," "the Company," "we," "us," or "our") is a leading global manufacturer of specialty chemicals and high performance activated carbon materials. We provide innovative solutions to meet our customers’ unique and demanding requirements through proprietary formulated products. We report in two business segments, Performance Materials and Performance Chemicals. Performance Materials manufactures products in the form of powder, granular, extruded pellets, extruded honeycombs, and activated carbon sheets. Performance Chemicals manufactures products derived from crude tall oil ("CTO") and lignin extracted from the kraft paper making process as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide. Basis of Presentation These unaudited condensed consolidated financial statements reflect the consolidated operations of the Company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the Annual Consolidated Financial Statements for the years ended December 31, 2020, 2019 and 2018, collectively referred to as the “Annual Consolidated Financial Statements,” included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report"). In the opinion of management, the condensed consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to fairly state the condensed consolidated results for the interim periods presented. The consolidated results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with the current year's presentation. |
New Accounting Guidance
New Accounting Guidance | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Guidance | New Accounting Guidance The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" or "Codification") is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update ("ASU") to communicate changes to the Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU amends ASC 740 to add, remove, and clarify disclosure requirements related to income taxes. The new standard is effective for fiscal years beginning after December 15, 2020. We adopted the new guidance effective January 1, 2021. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The ASU is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance became effective beginning on March 12, 2020, and we may elect to apply the amendments |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenue The following table presents our Net sales disaggregated by product line. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Performance Materials segment (1) $ 118.1 $ 143.8 $ 384.8 $ 349.3 Performance Chemicals segment Pavement Technologies product line 73.2 72.5 162.4 157.1 Industrial Specialties product line (1) 132.6 90.1 364.7 290.9 Engineered Polymers product line 52.9 25.3 143.6 93.2 Total $ 258.7 $ 187.9 $ 670.7 $ 541.2 Net sales $ 376.8 $ 331.7 $ 1,055.5 $ 890.5 ______________ (1) Beginning in Q1 2021, we updated disaggregated revenue disclosures, combining certain product groups to reflect categories that depict how the nature, amount, and uncertainty of revenue and cash flows are affected by economic factors. As a result, Automotive Technologies and Process Purification product lines have been combined within the Performance Materials segment. Similarly, the Oilfield Technologies product line has been combined with the Industrial Specialties product line within the Performance Chemicals segment. The following table presents our Net sales disaggregated by geography, based on the delivery address of our customers. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 North America $ 219.3 $ 191.9 $ 580.8 $ 510.3 Asia Pacific 89.6 89.9 285.0 240.4 Europe, Middle East, and Africa 62.3 45.5 172.5 126.0 South America 5.6 4.4 17.2 13.8 Net sales $ 376.8 $ 331.7 $ 1,055.5 $ 890.5 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. The contract assets primarily relate to our rights to consideration for products produced but not billed at the reporting date. The contract assets are recognized as accounts receivables when the rights become unconditional and the customer has been billed. Contract liabilities represent obligations to transfer goods to a customer for which we have received consideration from our customer. For all periods presented, we had no contract liabilities. Contract Asset September 30, In millions 2021 2020 Beginning balance $ 5.7 $ 6.2 Contract asset additions 15.8 13.5 Reclassification to accounts receivable, billed to customers (15.4) (12.9) Ending balance (1) $ 6.1 $ 6.8 ______________ (1) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Measurements Recurring Fair Value Measurements The following information is presented for assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at fair value between the three-level fair value hierarchy during the periods reported. Refer to Note 8 for more information regarding our fair value measurements of our financial instruments and risk management activities. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total September 30, 2021 Assets: Deferred compensation plan investments (4) $ 1.0 $ — $ — $ 1.0 Total assets $ 1.0 $ — $ — $ 1.0 Liabilities: Deferred compensation arrangement (4) $ 13.0 $ — $ — $ 13.0 Contingent consideration (5) — — 0.8 0.8 Total liabilities $ 13.0 $ — $ 0.8 $ 13.8 December 31, 2020 Assets: Equity securities (6) $ 0.2 $ — $ — $ 0.2 Deferred compensation plan investments (4) 1.7 — — 1.7 Total assets $ 1.9 $ — $ — $ 1.9 Liabilities: Deferred compensation arrangement (4) $ 11.6 $ — $ — $ 11.6 Contingent consideration (5) — — 0.8 0.8 Total liabilities $ 11.6 $ — $ 0.8 $ 12.4 ______________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Consists of a deferred compensation arrangement, through which we hold various investment securities. Both the asset and liability are recorded at fair value, and are included within "Other assets" and "Other liabilities" on the condensed consolidated balance sheets, respectively. In addition to the investment securities, we also have company-owned life insurance ("COLI") related to the deferred compensation arrangement. COLI is recorded at cash surrender value and included in "Other assets" on the condensed consolidated balance sheets in the amount of $13.4 million and $10.8 million at September 30, 2021 and December 31, 2020 respectively. (5) Included within "Other liabilities" on the condensed consolidated balance sheets. (6) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets. Nonrecurring Fair Value Measurements Equity Investment During the second quarter of 2021, our Performance Materials segment acquired a strategic equity investment in a privately-held company for $16.5 million. Our strategic equity investment is accounted for under the equity method of accounting, which requires us to record our initial investment at cost. Subsequently, we will recognize, through the condensed consolidated statements of operations (Other (income) expense, net) and as an adjustment to the investment balance (Other assets), our proportionate share of undistributed earnings or loss and the amortization of basis differences. At each reporting period, we will evaluate our investment to determine whether events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. The carrying value of our strategic equity investment was $16.5 million at September 30, 2021. There were no adjustments to the carrying value of our strategic equity investment for impairment or observable price changes during the three or nine months ended September 30, 2021. Restricted Investment At September 30, 2021 and December 31, 2020, the carrying value of our restricted investment, which is accounted for as held-to-maturity ("HTM") and therefore recorded at amortized costs, was $75.5 million and $73.6 million, net of an allowance for credit losses of $0.5 million and $0.9 million, and included cash of $4.1 million and $2.4 million, respectively. The fair value at September 30, 2021 and December 31, 2020 was $80.9 million and $81.5 million, respectively, based on Level 1 inputs. The following table shows the total amortized cost of our HTM debt securities by credit rating, excluding the allowance for credit losses and cash. The primary factor in our expected credit loss calculation is the composite bond rating. As the rating decreases, the risk present in holding the bond is inherently increased, leading to an increase in expected credit losses. HTM Debt Securities In millions AA+ AA A A- BBB+ Total September 30, 2021 $ 13.4 10.6 24.2 13.3 10.4 $ 71.9 December 31, 2020 $ 13.5 10.6 24.2 13.4 10.4 $ 72.1 Debt Obligations At September 30, 2021 and December 31, 2020, the carrying value of finance lease obligations was $102.6 million and $103.1 million, respectively, and the fair value was $120.4 million and $127.0 million, respectively. The carrying amount, excluding debt issuance fees, of our variable interest rate long-term debt was $332.8 million and $353.4 million as of September 30, 2021 and December 31, 2020, respectively. The carrying value is a reasonable estimate of the fair value of the outstanding debt based on the variable interest rate of the debt. At September 30, 2021 and December 31, 2020, the carrying value of our fixed rate debt was $850.0 million and the fair value was $855.9 million and $864.1 million, respectively, based on Level 2 inputs. Contingent Consideration In connection with the acquisition of certain assets in May 2020, we are contingently obligated to make an additional payment for such assets of up to an aggregate amount of $7.0 million. The contingent consideration is payable if certain sales volume targets are achieved prior to the measurement period ending on December 31, 2024, herein referred to as "Revenue Earn-out." The fair value of the Revenue Earn-out consideration was $0.8 million at September 30, 2021 and December 31, 2020, respectively. Any subsequent changes in the fair value of the contingent consideration liability will be recorded in current period earnings as a selling, general, and administrative expense on the condensed consolidated statements of operations. The following table summarizes the activity for financial liabilities utilizing Level 3 fair value measurements: Contingent Consideration In millions September 30, 2021 Beginning balance $ 0.8 Newly issued — Change in revaluation of contingent consideration included in earnings — Exercises/settlements — Ending balance (1) $ 0.8 ______________ (1) Included within "Other liabilities" on the condensed consolidated balance sheets. |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net In millions September 30, 2021 December 31, 2020 Raw materials $ 41.5 $ 39.1 Production materials, stores and supplies 25.9 24.6 Finished and in-process goods 176.9 139.6 Subtotal 244.3 203.3 Less: LIFO reserve (16.0) (14.3) Inventories, net $ 228.3 $ 189.0 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant, and Equipment, net In millions September 30, 2021 December 31, 2020 Machinery and equipment $ 1,100.7 $ 1,065.5 Buildings and leasehold improvements 175.4 174.0 Land and land improvements 20.4 20.0 Construction in progress 44.2 43.7 Total cost 1,340.7 1,303.2 Less: accumulated depreciation (639.5) (599.6) Property, plant, and equipment, net $ 701.2 $ 703.6 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill Reporting Units In millions Performance Chemicals Performance Materials Total December 31, 2020 $ 441.0 $ 4.3 $ 445.3 Foreign currency translation (4.6) — (4.6) September 30, 2021 $ 436.4 $ 4.3 $ 440.7 There were no interim triggering events or circumstances indicating that goodwill might be impaired as of September 30, 2021. Other Intangible Assets September 30, 2021 December 31, 2020 In millions Gross Accumulated amortization Net Gross Accumulated amortization Net Customer contracts and relationships $ 317.1 $ 89.5 $ 227.6 $ 319.5 $ 73.6 $ 245.9 Brands (1) 81.4 19.1 62.3 82.4 15.8 66.6 Developed technology 72.0 17.1 54.9 73.0 12.5 60.5 Other 0.5 0.5 — 2.7 2.4 0.3 Other intangibles, net $ 471.0 $ 126.2 $ 344.8 $ 477.6 $ 104.3 $ 373.3 _______________ (1) Represents trademarks, trade names, and know-how. Intangible assets subject to amortization were allocated among our business segments as follows: In millions September 30, 2021 December 31, 2020 Performance Materials $ 2.0 $ 2.1 Performance Chemicals 342.8 371.2 Other intangibles, net $ 344.8 $ 373.3 Amortization expense related to our intangible assets in the table above is shown in the table below. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Cost of sales $ — $ — $ — $ 0.1 Selling, general, and administrative expenses 8.3 8.2 25.1 24.3 Total amortization expense $ 8.3 $ 8.2 $ 25.1 $ 24.4 Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: 2021 - $33.4 million, 2022 - $33.1 million, 2023 - $33.0 million, 2024 - $32.7 million, and 2025 - $32.7 million. The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency exchange rates. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management Net Investment Hedges We have fixed-to-fixed cross-currency interest rate swaps with an aggregate notional amount of $166.2 million and a maturity date of July 2023. We designated the swaps to hedge a portion of our net investment in a euro functional currency denominated subsidiary against foreign currency fluctuations. These contracts involve the exchange of fixed U.S. dollars with fixed euro interest payments periodically over the life of the contract and an exchange of the notional amount at maturity. This effectively converts a portion of our U.S. dollar denominated fixed-rate debt from a weighted average rate of 3.79 percent to a euro denominated weighted average fixed rate of 1.71 percent. The difference between the fixed interest rate on the U.S. dollar denominated debt compared to euro denominated debt is recorded as interest income on the condensed consolidated statements of operations. The fair value of the fixed-to-fixed cross currency interest rate swap was a net asset (liability) of $(0.7) million and $(8.6) million at September 30, 2021 and December 31, 2020 , respectively. During the three and nine months ended September 30, 2021, we recognized net interest income associated with this financial instrument of $0.1 million and $0.3 million, respectively, and during the three and nine months ended September 30, 2020, we recognized net interest income associated with this financial instrument of $0.2 million and $1.5 million, respectively. Cash Flow Hedges Foreign Currency Exchange Risk Management We manufacture and sell our products in several countries throughout the world and, thus, we are exposed to changes in foreign currency exchange rates. To manage the volatility relating to these exposures, we net the exposures on a consolidated basis to take advantage of natural offsets. To manage the remaining exposure, from time to time, we utilize forward currency exchange contracts and zero cost collar option contracts to minimize the volatility to earnings and cash flows resulting from the effect of fluctuating foreign currency exchange rates on export sales denominated in foreign currencies (principally the euro). These contracts are generally designated as cash flow hedges. Designated cash flow hedges entered to minimize foreign currency exchange risk of forecasted revenue transactions are recorded to Net sales on the consolidated statement of operations when the forecasted transaction occurs. As of September 30, 2021, there were $4.8 million open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was an asset (liability) of $0.2 million and $(0.1) million at September 30, 2021 and December 31, 2020, respectively. Commodity Price Risk Management Certain energy sources used in our manufacturing operations are subject to price volatility caused by weather, supply and demand conditions, economic variables, and other unpredictable factors. This volatility is primarily related to the market pricing of natural gas. To mitigate expected fluctuations in market prices and the volatility to earnings and cash flow resulting from changes to pricing of natural gas purchases, from time to time, we will enter into swap contracts and zero cost collar option contracts and designate these contracts as cash flow hedges. As of September 30, 2021, we had 1.2 million and 0.9 million mmBTUS (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity swap contracts and zero cost collar option contracts, respectively, designated as cash flow hedges. As of September 30, 2021, open commodity contracts hedge forecasted transactions until February 2022. The fair value of the outstanding designated natural gas commodity hedge contracts as of September 30, 2021 and December 31, 2020 was a net asset (liability) of $3.0 million and $(0.1) million, respectively. Interest Rate Risk Management Our policy is to manage interest expense using a mix of fixed and variable rate debt. To manage interest rate risk effectively, from time to time, we may enter into interest rate derivative instruments, which can consist of forward starting swaps. In all cases, the notional amount of the interest rate swap agreements is equal to or less than the designated debt being hedged. These instruments are designated as cash flow hedges. Designated interest rate cash flow hedge gains or losses are recorded in Accumulated other comprehensive income (loss) ("AOCI") and are recognized in "Interest expense, net" on the condensed consolidated statements of operations on a straight-line basis over the remaining maturity of the underlying debt. As of September 30, 2021, we have floating-to-fixed interest rate swaps with a notional amount of $166.2 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $166.2 million of our floating rate debt to a fixed rate. In accordance with the terms of this instrument, we receive floating rate interest payments based upon three-month U.S. dollar LIBOR and in return are obligated to pay interest at a fixed rate of 3.79 percent until July 2023. The fair value of the interest rate swap was an asset (liability) of $(6.0) million and $(8.9) million at September 30, 2021 and December 31, 2020, respectively. Effect of Cash Flow and Net Investment Hedge Accounting on AOCI In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income Location of Gain (Loss) Reclassified from AOCI in Net income Three Months Ended September 30, 2021 2020 2021 2020 Cash flow hedging derivatives Currency exchange contracts $ 0.1 $ (0.3) $ (0.2) $ (0.2) Net sales Natural gas contracts 2.8 0.4 — (0.3) Cost of sales Interest rate swap contracts 0.7 0.8 — — Interest expense, net Total $ 3.6 $ 0.9 $ (0.2) $ (0.5) In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative Three Months Ended September 30, 2021 2020 2021 2020 Net investment hedging derivative Currency exchange contracts (1) $ 3.8 $ (8.1) $ — $ 0.2 Interest expense, net Total $ 3.8 $ (8.1) $ — $ 0.2 In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income Location of Gain (Loss) Reclassified from AOCI in Net income Nine Months Ended September 30, 2021 2020 2021 2020 Cash flow hedging derivatives Currency exchange contracts $ 0.3 $ (0.1) $ (0.2) $ — Net sales Natural gas contracts 3.7 (0.1) (0.1) (0.9) Cost of sales Interest rate swap contracts 2.9 (5.7) — — Interest expense, net Total $ 6.9 $ (5.9) $ (0.3) $ (0.9) In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative Nine Months Ended September 30, 2021 2020 2021 2020 Net investment hedging derivative Currency exchange contracts (1) $ 8.0 $ (3.5) $ 0.2 $ 1.5 Interest expense, net Total $ 8.0 $ (3.5) $ 0.2 $ 1.5 __________ (1) Reclassifications from AOCI to Net Income were zero for all periods presented. Gains and losses if recognized would be reclassified from AOCI to Other (income) expense, net. Within the next twelve months, we expect to reclassify $0.1 million of net gains from AOCI to income, before taxes. Fair Value Measurements The following information is presented for derivative assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that are recorded at fair value between the three-level fair value hierarchy during the periods reported. There were no nonrecurring fair value measurements related to derivative assets and liabilities on the condensed consolidated balance sheets as of September 30, 2021 or December 31, 2020. Refer to Note 4 for more information regarding our fair value measurements beyond our financial instruments and risk management activities. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total September 30, 2021 Assets: Currency exchange contracts (4) $ — $ 0.2 $ — $ 0.2 Natural gas contracts (4) — 3.0 — 3.0 Net investment hedge (5) — 0.6 — 0.6 Total assets $ — $ 3.8 $ — $ 3.8 Liabilities: Natural gas contracts (6) $ — $ — $ — $ — Net investment hedge (7) — 1.3 — 1.3 Interest rate swap contracts (7) — 6.0 — 6.0 Total liabilities $ — $ 7.3 $ — $ 7.3 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2020 Assets: Natural gas contracts (4) $ — $ 0.1 $ — $ 0.1 Total assets $ — $ 0.1 $ — $ 0.1 Liabilities: Natural gas contracts (6) $ — $ 0.2 $ — $ 0.2 Currency exchange contracts (6) — 0.1 — 0.1 Net investment hedge (7) — 8.6 — 8.6 Interest rate swap contracts (7) — 8.9 — 8.9 Total liabilities $ — $ 17.8 $ — $ 17.8 __________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Included within "Prepaid and other current assets" on the condensed consolidated balance sheet. (5) Included within "Other assets" on the condensed consolidated balance sheet. (6) Included within "Accrued expenses" on the condensed consolidated balance sheet. (7) Included within "Other liabilities" on the condensed consolidated balance sheet. |
Debt including Finance Lease Ob
Debt including Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt including Finance Lease Obligations | Debt including Finance Lease Obligations Current and long-term debt including finance lease obligations consisted of the following: September 30, 2021 In millions, except percentages Interest rate Maturity date September 30, 2021 December 31, 2020 Variable Rate Debt: Revolving Credit Facility (1) 1.33% 2025 $ — $ — Term Loan 1.38% 2023 332.8 351.6 Other notes payable —% 2021 — 1.8 Fixed Rate Debt: Senior Notes 2028 Senior Note 3.88% 2028 550.0 550.0 2026 Senior Note 4.50% 2026 300.0 300.0 Finance lease obligations 7.17% 2027-2035 102.6 103.1 Total debt including finance lease obligations 1,285.4 1,306.5 Less: debt issuance costs 11.5 13.1 Total debt, including finance lease obligations, net of debt issuance costs 1,273.9 1,293.4 Less: debt maturing within one year (2) 19.5 26.0 Long-term debt including finance lease obligations $ 1,254.4 $ 1,267.4 ______________ (1) Letters of credit outstanding under the revolving credit facility were $2.3 million and $2.3 million and undrawn capacity under the facility was $497.7 million and $497.7 million at September 30, 2021 and December 31, 2020, respectively. (2) Debt maturing within one year is included in "Notes payable and current maturities of long-term debt" on the condensed consolidated balance sheets. Debt Covenants Our indentures contain certain customary covenants (including covenants limiting Ingevity's and its restricted subsidiaries’ ability to grant or permit liens on certain property securing debt, declare or pay dividends, make distributions on or repurchase or redeem capital stock, make investments in unrestricted subsidiaries, engage in sale and lease-back transactions, and engage in a consolidation or merger, or sell, transfer or otherwise dispose of all or substantially all of the assets of our and our restricted subsidiaries, taken as a whole) and events of default (subject in certain cases to customary exceptions, as well as grace and cure periods). The occurrence of an event of default under the 2026 Senior Note or 2028 Senior Note could result in the acceleration of the notes of such series and could cause a cross-default resulting in the acceleration of other indebtedness of Ingevity and its subsidiaries, including the other series. We were in compliance with all covenants under the indentures as of September 30, 2021. The credit agreement governing our revolving credit facility and 2017 term loan contain customary default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-compliance with covenants and cross-defaults to other material indebtedness. The occurrence of an uncured event of default under the credit agreement could result in all loans and other obligations becoming immediately due and payable and our revolving credit facility and term loan facilities being terminated. The credit agreement also contains certain customary covenants, including financial covenants. The revolving credit facility financial covenants require Ingevity to maintain on a consolidated basis a maximum total net leverage ratio of 4.0 to 1.0 (which may be increased to 4.5 to 1.0 under certain circumstances) and a minimum interest coverage ratio of 3.0 to 1.0. Additionally, the 2017 term loan financial covenants require Ingevity to maintain on a consolidated basis a maximum total gross leverage ratio of 4.0 to 1.0 (which may be increased to 4.5 to 1.0 under certain circumstances) and a minimum interest coverage ratio of 3.0 to 1.0. Our actual gross and net leverage for the four consecutive quarters ended September 30, 2021 were 2.6 and 2.1, respectively, and our actual interest coverage for the four consecutive quarters ended September 30, 2021 was 12.5. We were in compliance with all covenants at September 30, 2021. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity The tables below provide a roll forward of equity. Common Stock In millions, except per share data in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2020 42,913 $ 0.4 $ 121.3 $ 678.0 $ 4.7 $ (162.3) $ 642.1 Net income (loss) — — — 48.7 — — 48.7 Other comprehensive income (loss) — — — — 8.5 — 8.5 Common stock issued 97 — — — — — — Exercise of stock options, net 24 — 0.9 — — — 0.9 Tax payments related to vested restricted stock units — — — — — (2.3) (2.3) Share repurchase program — — — — — (39.4) (39.4) Share-based compensation plans — — 2.6 — — — 2.6 Balance at March 31, 2021 43,034 $ 0.4 $ 124.8 $ 726.7 $ 13.2 $ (204.0) $ 661.1 Net income (loss) — — — 44.3 — — 44.3 Other comprehensive income (loss) — — — — 5.4 — 5.4 Common stock issued 19 — — — — — — Exercise of stock options, net 32 — 1.5 — — — 1.5 Tax payments related to vested restricted stock units — — — — — — — Share repurchase program — — — — — (28.7) (28.7) Share-based compensation plans — — 4.0 — — 0.9 4.9 Balance at June 30, 2021 43,085 $ 0.4 $ 130.3 $ 771.0 $ 18.6 $ (231.8) $ 688.5 Net income (loss) — — — (4.2) — — (4.2) Other comprehensive income (loss) — — — — (11.1) — (11.1) Common stock issued 5 — — — — — — Exercise of stock options, net 2 — 0.1 — — — 0.1 Tax payments related to vested restricted stock units — — — — — (0.1) (0.1) Share repurchase program — — — — — (32.2) (32.2) Share-based compensation plans — — 3.0 — — 0.5 3.5 Balance at September 30, 2021 43,092 $ 0.4 $ 133.4 $ 766.8 $ 7.5 $ (263.6) $ 644.5 Common Stock In millions, except per share data in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2019 42,675 $ 0.4 $ 112.8 $ 497.2 $ (5.0) $ (74.6) $ 530.8 Net income (loss) — — — 45.3 — — 45.3 Other comprehensive income (loss) — — — — (39.1) — (39.1) Common stock issued 161 — — — — — — Tax payments related to vested restricted stock units — — — — — (3.1) (3.1) Share repurchase program — — — — — (32.4) (32.4) Share-based compensation plans — — 0.8 — — 0.4 1.2 Adoption of accounting standard — — — (0.6) — — (0.6) Balance at March 31, 2020 42,836 $ 0.4 $ 113.6 $ 541.9 $ (44.1) $ (109.7) $ 502.1 Net income (loss) — — — 20.2 — — 20.2 Other comprehensive income (loss) — — — — (4.1) — (4.1) Common stock issued 5 — — — — — — Exercise of stock options, net 50 — 1.4 — — — 1.4 Tax payments related to vested restricted stock units — — — — — 0.1 0.1 Share-based compensation plans — — 1.3 — — 1.9 3.2 Balance at June 30, 2020 42,891 $ 0.4 $ 116.3 $ 562.1 $ (48.2) $ (107.7) $ 522.9 Net income (loss) — — — 69.9 — — 69.9 Other comprehensive income (loss) — — — — 22.6 — 22.6 Common stock issued 3.0 — — — — — — Exercise of stock options, net 1.0 — — — — — — Tax payments related to vested restricted stock units — — — — — (0.1) (0.1) Share-based compensation plans — — 0.5 — — 1.2 1.7 Balance at September 30, 2020 42,895 $ 0.4 $ 116.8 $ 632.0 $ (25.6) $ (106.6) $ 617.0 Accumulated other comprehensive income (loss) Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Foreign currency translation Beginning balance $ 27.8 $ (36.8) $ 16.4 $ 1.5 Net gains (losses) on foreign currency translation (16.7) 27.6 (8.5) (14.2) Gains (losses) on net investment hedges 3.8 (8.1) 8.0 (3.5) Less: tax provision (benefit) 0.9 (1.9) 1.9 (0.8) Net gains (losses) on net investment hedges 2.9 (6.2) 6.1 (2.7) Other comprehensive income (loss), net of tax (13.8) 21.4 (2.4) (16.9) Ending balance $ 14.0 $ (15.4) $ 14.0 $ (15.4) Derivative instruments Beginning balance $ (4.5) $ (8.4) $ (6.9) $ (3.5) Gains (losses) on derivative instruments 3.6 0.9 6.9 (5.9) Less: tax provision (benefit) 0.8 0.2 1.6 (1.4) Net gains (losses) on derivative instruments 2.8 0.7 5.3 (4.5) (Gains) losses reclassified to net income (0.2) 0.5 (0.3) 0.9 Less: tax (provision) benefit (0.1) 0.1 (0.1) 0.2 Net (gains) losses reclassified to net income (0.1) 0.4 (0.2) 0.7 Other comprehensive income (loss), net of tax 2.7 1.1 5.1 (3.8) Ending balance $ (1.8) $ (7.3) $ (1.8) $ (7.3) Pension and other postretirement benefits Beginning balance $ (4.7) $ (3.0) $ (4.8) $ (3.0) Unrealized actuarial gains (losses) and prior service (costs) credits — — — — Less: tax provision (benefit) — — — — Net actuarial gains (losses) and prior service (costs) credits — — — — Amortization of actuarial and other (gains) losses, prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 0.1 0.1 Less: tax (provision) benefit — — — — Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 0.1 0.1 Other comprehensive income (loss), net of tax — 0.1 0.1 0.1 Ending balance $ (4.7) $ (2.9) $ (4.7) $ (2.9) Total AOCI ending balance at September 30 $ 7.5 $ (25.6) $ 7.5 $ (25.6) Reclassifications of accumulated other comprehensive income (loss) Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Derivative instruments Currency exchange contracts (1) $ 0.2 $ (0.2) $ 0.2 $ — Natural gas contracts (2) — (0.3) 0.1 (0.9) Total before tax 0.2 (0.5) 0.3 (0.9) (Provision) benefit for income taxes (0.1) 0.1 (0.1) 0.2 Amount included in net income (loss) $ 0.1 $ (0.4) $ 0.2 $ (0.7) Pension and other post-retirement benefits Amortization of prior service costs (2) $ — $ (0.1) $ 0.1 $ (0.1) Total before tax — (0.1) 0.1 (0.1) (Provision) benefit for income taxes — — — — Amount included in net income (loss) $ — $ (0.1) $ 0.1 $ (0.1) ______________ (1) Included within "Net sales" on the condensed consolidated statement of operations. (2) Included within "Cost of sales" on the condensed consolidated statement of operations. Share Repurchases At September 30, 2021, $311.7 million remained unused under our Board-authorized repurchase program. During the three and nine months ended September 30, 2021, we repurchased $32.2 million and $100.3 million in common stock, representing 414,501 and 1,298,167 shares of our common stock at a weighted average cost per share of $77.77 and $77.25, respectively. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2021 | |
Postemployment Benefits [Abstract] | |
Retirement Plans | Retirement Plans The following table summarizes the components of net periodic benefit cost (income) for our defined benefit pension plans: Three Months Ended September 30, Pensions Other Benefits In millions 2021 2020 2021 2020 Components of net periodic benefit cost (income): Service cost (1) $ 0.4 $ 0.4 $ — $ — Interest cost (2) 0.3 0.3 — — Expected return on plan assets (2) (0.3) (0.3) — — Amortization of prior service cost (credit) (1) — 0.1 — — Amortization of net actuarial and other (gain) loss (2) — — — — Net periodic benefit cost (income) $ 0.4 $ 0.5 $ — $ — Nine Months Ended September 30, Pensions Other Benefits In millions 2021 2020 2021 2020 Components of net periodic benefit cost (income): Service cost (1) $ 1.3 $ 1.2 $ — $ — Interest cost (2) 0.8 0.9 — — Expected return on plan assets (2) (1.0) (0.9) — — Amortization of prior service cost (credit) (1) 0.1 0.1 — — Amortization of net actuarial and other (gain) loss (2) — — — — Net periodic benefit cost (income) $ 1.2 $ 1.3 $ — $ — _______________ (1) Amounts are recorded to "Cost of sales" on our condensed consolidated statements of operations consistent with the employee compensation costs that participate in the plan. (2) Amounts are recorded to "Other (income) expense, net" on our condensed consolidated statements of operations. Contributions We did not make any voluntary cash contributions to our Union Hourly defined benefit pension plan in the nine months ended September 30, 2021. There are no required cash contributions to our Union Hourly defined benefit pension plan in 2021, and we currently have no plans to make any voluntary cash contributions in 2021. |
Restructuring and Other (Income
Restructuring and Other (Income) Charges, net | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other (Income) Charges, net | Restructuring and Other (Income) Charges, net Detail on the restructuring charges and other (income) charges, net, is provided below. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Severance and other employee-related costs $ — $ 0.3 $ 0.1 $ 6.3 Other — 1.7 — 1.7 Restructuring charges — 2.0 0.1 8.0 Business transformation costs 4.1 3.5 12.2 5.3 Other (income) charges, net 4.1 3.5 12.2 5.3 Total restructuring and other (income) charges, net $ 4.1 $ 5.5 $ 12.3 $ 13.3 Restructuring charges During the second quarter of 2020, we implemented a cost reduction initiative to realign our cost structure in response to reduced demand for some of our products due to the COVID-19 pandemic. As a result of this cost reduction initiative, we recorded severance and other employee-related costs of zero and $0.1 million during the three and nine months ended September 30, 2021. During the three and nine months ended September 30, 2020, we recorded severance and other employee-related costs of $0.3 million and $6.3 million, respectively. Additionally, during the three and nine months ended September 30, 2020, we recorded $1.7 million related to an impairment of an operating lease asset that is no longer in use. Rollforward of Restructuring Reserves The following table shows a roll forward of restructuring reserves that will result in cash spending. Balance at Change in Cash Balance at In millions 12/31/2020 (1) Reserve (2) Payments Other 9/30/2021 (1) Restructuring Reserves $ 0.8 0.1 (0.5) — $ 0.4 _______________ (1) Included in "Accrued Expenses" on the condensed consolidated balance sheets. (2) Includes severance and other employee-related costs. Other (income) charges, net Business transformation costs In 2020, we embarked upon a business transformation initiative that includes the implementation of an upgraded enterprise resource planning ("ERP") system. This new ERP system will equip our employees with standardized processes and secure integrated technology that enable us to better understand and meet our customers' needs and compete in the marketplace. The implementation of our new ERP is expected to occur in multiple phases beginning in fiscal year 2022. This business transformation requires the integration of the new ERP system with multiple new and existing information systems and business processes in order to maintain the accuracy of our books and records and to provide our management team with real-time information important to the operation of our business. Such an implementation initiative is a major financial undertaking and will require substantial time and attention of management and key employees. Costs incurred during the three and nine months ended September 30, 2021, of $4.1 million and $12.2 million, respectively, and during the three and nine months ended September 30, 2020, of $3.5 million and $5.3 million, respectively, represent costs directly associated with the business transformation initiative that, in accordance with GAAP, cannot be capitalized. Over the course of this initiative, we anticipate incurring approximately $60-70 million of total costs, which includes $30-35 million of non-capitalizable costs, approximately $18 million of which we expect to be incurred in 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates, including discrete items, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Effective tax rate (1) 53.3 % 20.7 % 29.8 % 19.7 % _______________ (1) The effective tax rate (“ETR”) in the three months ended September 30, 2021 was primarily impacted by the litigation expense recorded during the period. The ETR for the nine months ended September 30, 2021 was impacted by the litigation expense and legislative tax rate change recorded during the period. We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pre-tax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter may materially impact the reported effective tax rate. As a global enterprise, our tax expense may be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As such, there may be significant volatility in interim tax provisions. The below tables provide a reconciliation between our reported effective tax rates and the EAETR. Three Months Ended September 30, 2021 2020 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ (9.0) $ (4.8) 53.3 % $ 88.1 $ 18.2 20.7 % Discrete items: Restructuring and other (income) charges, net (1) — — 2.0 0.3 Acquisition and other-related costs (2) — — — — Legislative tax rate changes (3) — 0.1 — — Litigation expense (4) 85.0 19.7 — — Other tax only discrete items — 0.5 — (0.2) Total discrete items 85.0 20.3 2.0 0.1 Consolidated operations, before discrete items $ 76.0 $ 15.5 $ 90.1 $ 18.3 Quarterly effect of changes in the EAETR 20.4 % 20.3 % Nine Months Ended September 30, 2021 2020 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ 126.5 $ 37.7 29.8 % $ 168.7 $ 33.3 19.7 % Discrete items: Restructuring and other (income) charges, net (1) 0.1 — 8.0 1.7 Acquisition and other-related costs (2) — — 1.7 0.4 Legislative tax rate changes (3) — (14.6) — — Litigation expense (4) 85.0 19.7 — — Other tax only discrete items — 0.7 — 1.0 Total discrete items 85.1 5.8 9.7 3.1 Consolidated operations, before discrete items $ 211.6 $ 43.5 $ 178.4 $ 36.4 EAETR (5) 20.6 % 20.4 % _______________ (1) Refer to Note 12 for additional information. (2) Costs incurred to integrate the Perstorp Capa business into our Performance Ch emicals segment. (3) Legislative tax rate changes, enacted in the United Kingdom ("UK"), resulted in discrete tax expense of $14.6 million related to the revaluation of our net deferred tax liability associated with our UK operations. The corporate tax rate in the UK increased from 19.0% to 25.0% on April 1, 2023. Impact for the three months ended September 30, 2021 are a result of currency translation. (4) Refer to Note 14 for additional information. (5) Increase in EAETR for the nine months ended September 30, 2021, as compared to September 30, 2020, is due to an overall change in the mix of forecasted earnings in various tax jurisdictions with varying rates. At September 30, 2021 and December 31, 2020, we had deferred tax assets of $8.5 million and $8.4 million, respectively, resulting from certain historical net operating losses from our Brazil and China operations and U.S. state tax credits for which a valuation allowance has been established. The ultimate realization of these deferred tax assets depends on the generation of future taxable income during the periods in which these net operating losses and tax credits are available to be used. In evaluating the realizability of these deferred tax assets, we consider projected future taxable income and tax planning |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings On July 19, 2018, Ingevity filed suit against BASF Corporation (“BASF”) in the United States District Court for the District of Delaware (the “Delaware Proceeding”) alleging BASF infringed Ingevity’s patent covering canister systems used in the control of automotive gasoline vapor emissions (U.S. Patent No. RE38,844) (the “’844 Patent”). On February 14, 2019, BASF asserted counterclaims against Ingevity in the Delaware Proceeding, alleging two claims for violations of U.S. antitrust law (one for exclusive dealing and the other for tying) as well as a claim for tortious interference with an alleged prospective business relationship between BASF and a BASF customer (the “BASF Counterclaims”). The BASF Counterclaims relate to Ingevity’s enforcement of the ‘844 Patent and Ingevity’s entry into several supply agreements with customers of its fuel vapor canister honeycombs. The U.S. District Court dismissed Ingevity’s patent infringement claims on November 18, 2020, and the case proceeded to trial on the BASF Counterclaims in September 2021. On Sept. 15, 2021, a jury in the Delaware Proceeding issued a verdict in favor of BASF on the BASF Counterclaims and awarded BASF damages of approximately $28.3 million, which will be trebled under U.S. antitrust law to approximately $85 million. In addition, BASF may seek pre- and post-judgment interest and attorneys’ fees and costs in amounts that they will have to support at a future date. We disagree with the outcome, including the court’s application of the law, and we intend to seek judgment as a matter of law in the Delaware Proceeding post-trial briefing stage and on appeal, if necessary. In addition, we intend to challenge the U.S. District Court’s November 2020 dismissal of our patent infringement claims against BASF. Ingevity believes in the strength of its intellectual property and the merits of its position and intends to pursue all legal relief available to challenge these outcomes in the Delaware Proceeding. Final resolution of these matters could take several months up to two years. As of September 30, 2021, we have accrued a total of $85 million, the full amount of the jury’s verdict. The amount accrued for this matter is included in Other liabilities on the condensed consolidated balance sheet as of September 30, 2021, and the charge is included in Other (income) expense, net on the condensed consolidated statement of operations for the three and nine months ended September 30, 2021. The amount of any liability Ingevity may ultimately incur related to the Delaware Proceeding could be more or less than the amount accrued. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Net sales Performance Materials $ 118.1 $ 143.8 $ 384.8 $ 349.3 Performance Chemicals 258.7 187.9 670.7 541.2 Total net sales (1) $ 376.8 $ 331.7 $ 1,055.5 $ 890.5 Segment EBITDA (2) Performance Materials $ 56.4 $ 80.4 $ 191.4 $ 164.9 Performance Chemicals 63.1 47.2 151.2 122.1 Total segment EBITDA (2) $ 119.5 $ 127.6 $ 342.6 $ 287.0 Interest expense, net (11.6) (8.9) (36.2) (29.8) (Provision) benefit for income taxes 4.8 (18.2) (37.7) (33.3) Depreciation and amortization - Performance Materials (8.9) (8.0) (26.9) (22.5) Depreciation and amortization - Performance Chemicals (18.7) (17.1) (54.8) (51.0) Restructuring and other income (charges), net (3) (4.1) (5.5) (12.3) (13.3) Acquisition and other-related costs (4) (0.2) — (0.9) (1.7) Litigation expense (5) (85.0) — (85.0) — Net income (loss) $ (4.2) $ 69.9 $ 88.8 $ 135.4 _______________ (1) Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation. (2) Segment EBITDA is the primary measure used by our chief operating decision maker to evaluate the performance of and allocate resources among our operating segments. Segment EBITDA is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense, net, associated with corporate debt facilities, income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other-related costs, certain litigation expenses, pension and postretirement settlement and curtailment (income) charges, net. (3) Income (charges) for all periods presented relate to restructuring activity and costs associated with the business transformation initiative. For the three and nine months ended September 30, 2021, charges of $1.1 million and $4.5 million relate to the Performance Materials segment and charges of $3.0 million and $7.8 million relate to the Performance Chemicals segment, respectively. For the three and nine months ended September 30, 2020, charges of $2.6 million and $5.4 million relate to the Performance Materials segment and charges of $2.9 million and $7.9 million relate to the Performance Chemicals segment, respectively. For more detail on the charges incurred refer to Note 12. (4) For the three and nine months ended September 30, 2021, charges of zero and $0.2 million relate to the acquisition of a strategic investment in the Performance Materials segment and charges of $0.2 million and $0.7 million relate to the integration of the Perstorp Capa business into our Performance Chemicals segment, respectively. For the three and nine months ended September 30, 2020, all charges relate to the integration of the Perstorp Capa business into our Performance Chemicals segment. (5) For the three and nine months ended September 30, 2021, litigation expense relates to the Performance Materials segment. Refer to Note 14 for additional information. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares and potentially dilutive common shares outstanding for the period. The calculation of diluted net income per share excludes all antidilutive common shares. Three Months Ended September 30, Nine Months Ended September 30, In millions, except share and per share data 2021 2020 2021 2020 Net income (loss) $ (4.2) $ 69.9 $ 88.8 $ 135.4 Basic and Diluted earnings (loss) per share Basic earnings (loss) per share $ (0.11) $ 1.69 $ 2.22 $ 3.27 Diluted earnings (loss) per share (0.11) 1.69 2.21 3.26 Shares (in thousands) Weighted average number of common shares outstanding - Basic 39,537 41,276 39,993 41,400 Weighted average additional shares assuming conversion of potential common shares (1) — 175 245 179 Shares - diluted basis (1) 39,537 41,451 40,238 41,579 _______________ (1) For the three months ended September 30, 2021, all potentially dilutive common shares were excluded from the calculation of diluted earnings (loss) per share as we had a net loss for the period. The following average number of potential common shares were antidilutive, and therefore, were not included in the diluted earnings per share calculation: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2021 2020 2021 2020 Average number of potential common shares - antidilutive 375 173 200 205 |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated financial statements reflect the consolidated operations of the Company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the Annual Consolidated Financial Statements for the years ended December 31, 2020, 2019 and 2018, collectively referred to as the “Annual Consolidated Financial Statements,” included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report"). In the opinion of management, the condensed consolidated financial statements contain all adjustments, which include only normal recurring adjustments, necessary to fairly state the condensed consolidated results for the interim periods presented. The consolidated results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with the current year's presentation. |
New Accounting Guidance | New Accounting Guidance The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" or "Codification") is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update ("ASU") to communicate changes to the Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU amends ASC 740 to add, remove, and clarify disclosure requirements related to income taxes. The new standard is effective for fiscal years beginning after December 15, 2020. We adopted the new guidance effective January 1, 2021. The adoption of the new guidance did not have a material impact on the consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The ASU is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance became effective beginning on March 12, 2020, and we may elect to apply the amendments |
Income Tax | We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pre-tax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter may materially impact the reported effective tax rate. As a global enterprise, our tax expense may be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As such, there may be significant volatility in interim tax provisions. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our Net sales disaggregated by product line. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Performance Materials segment (1) $ 118.1 $ 143.8 $ 384.8 $ 349.3 Performance Chemicals segment Pavement Technologies product line 73.2 72.5 162.4 157.1 Industrial Specialties product line (1) 132.6 90.1 364.7 290.9 Engineered Polymers product line 52.9 25.3 143.6 93.2 Total $ 258.7 $ 187.9 $ 670.7 $ 541.2 Net sales $ 376.8 $ 331.7 $ 1,055.5 $ 890.5 ______________ (1) Beginning in Q1 2021, we updated disaggregated revenue disclosures, combining certain product groups to reflect categories that depict how the nature, amount, and uncertainty of revenue and cash flows are affected by economic factors. As a result, Automotive Technologies and Process Purification product lines have been combined within the Performance Materials segment. Similarly, the Oilfield Technologies product line has been combined with the Industrial Specialties product line within the Performance Chemicals segment. The following table presents our Net sales disaggregated by geography, based on the delivery address of our customers. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 North America $ 219.3 $ 191.9 $ 580.8 $ 510.3 Asia Pacific 89.6 89.9 285.0 240.4 Europe, Middle East, and Africa 62.3 45.5 172.5 126.0 South America 5.6 4.4 17.2 13.8 Net sales $ 376.8 $ 331.7 $ 1,055.5 $ 890.5 |
Contract with Customer, Asset and Liability | The following table provides information about contract assets and contract liabilities from contracts with customers. The contract assets primarily relate to our rights to consideration for products produced but not billed at the reporting date. The contract assets are recognized as accounts receivables when the rights become unconditional and the customer has been billed. Contract liabilities represent obligations to transfer goods to a customer for which we have received consideration from our customer. For all periods presented, we had no contract liabilities. Contract Asset September 30, In millions 2021 2020 Beginning balance $ 5.7 $ 6.2 Contract asset additions 15.8 13.5 Reclassification to accounts receivable, billed to customers (15.4) (12.9) Ending balance (1) $ 6.1 $ 6.8 ______________ (1) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | The following information is presented for assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at fair value between the three-level fair value hierarchy during the periods reported. Refer to Note 8 for more information regarding our fair value measurements of our financial instruments and risk management activities. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total September 30, 2021 Assets: Deferred compensation plan investments (4) $ 1.0 $ — $ — $ 1.0 Total assets $ 1.0 $ — $ — $ 1.0 Liabilities: Deferred compensation arrangement (4) $ 13.0 $ — $ — $ 13.0 Contingent consideration (5) — — 0.8 0.8 Total liabilities $ 13.0 $ — $ 0.8 $ 13.8 December 31, 2020 Assets: Equity securities (6) $ 0.2 $ — $ — $ 0.2 Deferred compensation plan investments (4) 1.7 — — 1.7 Total assets $ 1.9 $ — $ — $ 1.9 Liabilities: Deferred compensation arrangement (4) $ 11.6 $ — $ — $ 11.6 Contingent consideration (5) — — 0.8 0.8 Total liabilities $ 11.6 $ — $ 0.8 $ 12.4 ______________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Consists of a deferred compensation arrangement, through which we hold various investment securities. Both the asset and liability are recorded at fair value, and are included within "Other assets" and "Other liabilities" on the condensed consolidated balance sheets, respectively. In addition to the investment securities, we also have company-owned life insurance ("COLI") related to the deferred compensation arrangement. COLI is recorded at cash surrender value and included in "Other assets" on the condensed consolidated balance sheets in the amount of $13.4 million and $10.8 million at September 30, 2021 and December 31, 2020 respectively. (5) Included within "Other liabilities" on the condensed consolidated balance sheets. (6) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets. |
Debt Securities, Held-to-Maturity, Credit Quality Indicator | The following table shows the total amortized cost of our HTM debt securities by credit rating, excluding the allowance for credit losses and cash. The primary factor in our expected credit loss calculation is the composite bond rating. As the rating decreases, the risk present in holding the bond is inherently increased, leading to an increase in expected credit losses. HTM Debt Securities In millions AA+ AA A A- BBB+ Total September 30, 2021 $ 13.4 10.6 24.2 13.3 10.4 $ 71.9 December 31, 2020 $ 13.5 10.6 24.2 13.4 10.4 $ 72.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the activity for financial liabilities utilizing Level 3 fair value measurements: Contingent Consideration In millions September 30, 2021 Beginning balance $ 0.8 Newly issued — Change in revaluation of contingent consideration included in earnings — Exercises/settlements — Ending balance (1) $ 0.8 ______________ (1) Included within "Other liabilities" on the condensed consolidated balance sheets. |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | In millions September 30, 2021 December 31, 2020 Raw materials $ 41.5 $ 39.1 Production materials, stores and supplies 25.9 24.6 Finished and in-process goods 176.9 139.6 Subtotal 244.3 203.3 Less: LIFO reserve (16.0) (14.3) Inventories, net $ 228.3 $ 189.0 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | In millions September 30, 2021 December 31, 2020 Machinery and equipment $ 1,100.7 $ 1,065.5 Buildings and leasehold improvements 175.4 174.0 Land and land improvements 20.4 20.0 Construction in progress 44.2 43.7 Total cost 1,340.7 1,303.2 Less: accumulated depreciation (639.5) (599.6) Property, plant, and equipment, net $ 701.2 $ 703.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Reporting Units In millions Performance Chemicals Performance Materials Total December 31, 2020 $ 441.0 $ 4.3 $ 445.3 Foreign currency translation (4.6) — (4.6) September 30, 2021 $ 436.4 $ 4.3 $ 440.7 |
Schedule of Finite-Lived Intangible Assets | September 30, 2021 December 31, 2020 In millions Gross Accumulated amortization Net Gross Accumulated amortization Net Customer contracts and relationships $ 317.1 $ 89.5 $ 227.6 $ 319.5 $ 73.6 $ 245.9 Brands (1) 81.4 19.1 62.3 82.4 15.8 66.6 Developed technology 72.0 17.1 54.9 73.0 12.5 60.5 Other 0.5 0.5 — 2.7 2.4 0.3 Other intangibles, net $ 471.0 $ 126.2 $ 344.8 $ 477.6 $ 104.3 $ 373.3 _______________ (1) Represents trademarks, trade names, and know-how. Intangible assets subject to amortization were allocated among our business segments as follows: In millions September 30, 2021 December 31, 2020 Performance Materials $ 2.0 $ 2.1 Performance Chemicals 342.8 371.2 Other intangibles, net $ 344.8 $ 373.3 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense related to our intangible assets in the table above is shown in the table below. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Cost of sales $ — $ — $ — $ 0.1 Selling, general, and administrative expenses 8.3 8.2 25.1 24.3 Total amortization expense $ 8.3 $ 8.2 $ 25.1 $ 24.4 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Cash Flow and Net Investment Hedge Accounting on Accumulated Other Comprehensive Income | Effect of Cash Flow and Net Investment Hedge Accounting on AOCI In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income Location of Gain (Loss) Reclassified from AOCI in Net income Three Months Ended September 30, 2021 2020 2021 2020 Cash flow hedging derivatives Currency exchange contracts $ 0.1 $ (0.3) $ (0.2) $ (0.2) Net sales Natural gas contracts 2.8 0.4 — (0.3) Cost of sales Interest rate swap contracts 0.7 0.8 — — Interest expense, net Total $ 3.6 $ 0.9 $ (0.2) $ (0.5) In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative Three Months Ended September 30, 2021 2020 2021 2020 Net investment hedging derivative Currency exchange contracts (1) $ 3.8 $ (8.1) $ — $ 0.2 Interest expense, net Total $ 3.8 $ (8.1) $ — $ 0.2 In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income Location of Gain (Loss) Reclassified from AOCI in Net income Nine Months Ended September 30, 2021 2020 2021 2020 Cash flow hedging derivatives Currency exchange contracts $ 0.3 $ (0.1) $ (0.2) $ — Net sales Natural gas contracts 3.7 (0.1) (0.1) (0.9) Cost of sales Interest rate swap contracts 2.9 (5.7) — — Interest expense, net Total $ 6.9 $ (5.9) $ (0.3) $ (0.9) In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative Nine Months Ended September 30, 2021 2020 2021 2020 Net investment hedging derivative Currency exchange contracts (1) $ 8.0 $ (3.5) $ 0.2 $ 1.5 Interest expense, net Total $ 8.0 $ (3.5) $ 0.2 $ 1.5 __________ |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following information is presented for derivative assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that are recorded at fair value between the three-level fair value hierarchy during the periods reported. There were no nonrecurring fair value measurements related to derivative assets and liabilities on the condensed consolidated balance sheets as of September 30, 2021 or December 31, 2020. Refer to Note 4 for more information regarding our fair value measurements beyond our financial instruments and risk management activities. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total September 30, 2021 Assets: Currency exchange contracts (4) $ — $ 0.2 $ — $ 0.2 Natural gas contracts (4) — 3.0 — 3.0 Net investment hedge (5) — 0.6 — 0.6 Total assets $ — $ 3.8 $ — $ 3.8 Liabilities: Natural gas contracts (6) $ — $ — $ — $ — Net investment hedge (7) — 1.3 — 1.3 Interest rate swap contracts (7) — 6.0 — 6.0 Total liabilities $ — $ 7.3 $ — $ 7.3 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2020 Assets: Natural gas contracts (4) $ — $ 0.1 $ — $ 0.1 Total assets $ — $ 0.1 $ — $ 0.1 Liabilities: Natural gas contracts (6) $ — $ 0.2 $ — $ 0.2 Currency exchange contracts (6) — 0.1 — 0.1 Net investment hedge (7) — 8.6 — 8.6 Interest rate swap contracts (7) — 8.9 — 8.9 Total liabilities $ — $ 17.8 $ — $ 17.8 __________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Included within "Prepaid and other current assets" on the condensed consolidated balance sheet. (5) Included within "Other assets" on the condensed consolidated balance sheet. (6) Included within "Accrued expenses" on the condensed consolidated balance sheet. (7) Included within "Other liabilities" on the condensed consolidated balance sheet. |
Debt including Finance Lease _2
Debt including Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Current and long-term debt including finance lease obligations consisted of the following: September 30, 2021 In millions, except percentages Interest rate Maturity date September 30, 2021 December 31, 2020 Variable Rate Debt: Revolving Credit Facility (1) 1.33% 2025 $ — $ — Term Loan 1.38% 2023 332.8 351.6 Other notes payable —% 2021 — 1.8 Fixed Rate Debt: Senior Notes 2028 Senior Note 3.88% 2028 550.0 550.0 2026 Senior Note 4.50% 2026 300.0 300.0 Finance lease obligations 7.17% 2027-2035 102.6 103.1 Total debt including finance lease obligations 1,285.4 1,306.5 Less: debt issuance costs 11.5 13.1 Total debt, including finance lease obligations, net of debt issuance costs 1,273.9 1,293.4 Less: debt maturing within one year (2) 19.5 26.0 Long-term debt including finance lease obligations $ 1,254.4 $ 1,267.4 ______________ (1) Letters of credit outstanding under the revolving credit facility were $2.3 million and $2.3 million and undrawn capacity under the facility was $497.7 million and $497.7 million at September 30, 2021 and December 31, 2020, respectively. (2) Debt maturing within one year is included in "Notes payable and current maturities of long-term debt" on the condensed consolidated balance sheets. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity | The tables below provide a roll forward of equity. Common Stock In millions, except per share data in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2020 42,913 $ 0.4 $ 121.3 $ 678.0 $ 4.7 $ (162.3) $ 642.1 Net income (loss) — — — 48.7 — — 48.7 Other comprehensive income (loss) — — — — 8.5 — 8.5 Common stock issued 97 — — — — — — Exercise of stock options, net 24 — 0.9 — — — 0.9 Tax payments related to vested restricted stock units — — — — — (2.3) (2.3) Share repurchase program — — — — — (39.4) (39.4) Share-based compensation plans — — 2.6 — — — 2.6 Balance at March 31, 2021 43,034 $ 0.4 $ 124.8 $ 726.7 $ 13.2 $ (204.0) $ 661.1 Net income (loss) — — — 44.3 — — 44.3 Other comprehensive income (loss) — — — — 5.4 — 5.4 Common stock issued 19 — — — — — — Exercise of stock options, net 32 — 1.5 — — — 1.5 Tax payments related to vested restricted stock units — — — — — — — Share repurchase program — — — — — (28.7) (28.7) Share-based compensation plans — — 4.0 — — 0.9 4.9 Balance at June 30, 2021 43,085 $ 0.4 $ 130.3 $ 771.0 $ 18.6 $ (231.8) $ 688.5 Net income (loss) — — — (4.2) — — (4.2) Other comprehensive income (loss) — — — — (11.1) — (11.1) Common stock issued 5 — — — — — — Exercise of stock options, net 2 — 0.1 — — — 0.1 Tax payments related to vested restricted stock units — — — — — (0.1) (0.1) Share repurchase program — — — — — (32.2) (32.2) Share-based compensation plans — — 3.0 — — 0.5 3.5 Balance at September 30, 2021 43,092 $ 0.4 $ 133.4 $ 766.8 $ 7.5 $ (263.6) $ 644.5 Common Stock In millions, except per share data in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2019 42,675 $ 0.4 $ 112.8 $ 497.2 $ (5.0) $ (74.6) $ 530.8 Net income (loss) — — — 45.3 — — 45.3 Other comprehensive income (loss) — — — — (39.1) — (39.1) Common stock issued 161 — — — — — — Tax payments related to vested restricted stock units — — — — — (3.1) (3.1) Share repurchase program — — — — — (32.4) (32.4) Share-based compensation plans — — 0.8 — — 0.4 1.2 Adoption of accounting standard — — — (0.6) — — (0.6) Balance at March 31, 2020 42,836 $ 0.4 $ 113.6 $ 541.9 $ (44.1) $ (109.7) $ 502.1 Net income (loss) — — — 20.2 — — 20.2 Other comprehensive income (loss) — — — — (4.1) — (4.1) Common stock issued 5 — — — — — — Exercise of stock options, net 50 — 1.4 — — — 1.4 Tax payments related to vested restricted stock units — — — — — 0.1 0.1 Share-based compensation plans — — 1.3 — — 1.9 3.2 Balance at June 30, 2020 42,891 $ 0.4 $ 116.3 $ 562.1 $ (48.2) $ (107.7) $ 522.9 Net income (loss) — — — 69.9 — — 69.9 Other comprehensive income (loss) — — — — 22.6 — 22.6 Common stock issued 3.0 — — — — — — Exercise of stock options, net 1.0 — — — — — — Tax payments related to vested restricted stock units — — — — — (0.1) (0.1) Share-based compensation plans — — 0.5 — — 1.2 1.7 Balance at September 30, 2020 42,895 $ 0.4 $ 116.8 $ 632.0 $ (25.6) $ (106.6) $ 617.0 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Foreign currency translation Beginning balance $ 27.8 $ (36.8) $ 16.4 $ 1.5 Net gains (losses) on foreign currency translation (16.7) 27.6 (8.5) (14.2) Gains (losses) on net investment hedges 3.8 (8.1) 8.0 (3.5) Less: tax provision (benefit) 0.9 (1.9) 1.9 (0.8) Net gains (losses) on net investment hedges 2.9 (6.2) 6.1 (2.7) Other comprehensive income (loss), net of tax (13.8) 21.4 (2.4) (16.9) Ending balance $ 14.0 $ (15.4) $ 14.0 $ (15.4) Derivative instruments Beginning balance $ (4.5) $ (8.4) $ (6.9) $ (3.5) Gains (losses) on derivative instruments 3.6 0.9 6.9 (5.9) Less: tax provision (benefit) 0.8 0.2 1.6 (1.4) Net gains (losses) on derivative instruments 2.8 0.7 5.3 (4.5) (Gains) losses reclassified to net income (0.2) 0.5 (0.3) 0.9 Less: tax (provision) benefit (0.1) 0.1 (0.1) 0.2 Net (gains) losses reclassified to net income (0.1) 0.4 (0.2) 0.7 Other comprehensive income (loss), net of tax 2.7 1.1 5.1 (3.8) Ending balance $ (1.8) $ (7.3) $ (1.8) $ (7.3) Pension and other postretirement benefits Beginning balance $ (4.7) $ (3.0) $ (4.8) $ (3.0) Unrealized actuarial gains (losses) and prior service (costs) credits — — — — Less: tax provision (benefit) — — — — Net actuarial gains (losses) and prior service (costs) credits — — — — Amortization of actuarial and other (gains) losses, prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 0.1 0.1 Less: tax (provision) benefit — — — — Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 0.1 0.1 Other comprehensive income (loss), net of tax — 0.1 0.1 0.1 Ending balance $ (4.7) $ (2.9) $ (4.7) $ (2.9) Total AOCI ending balance at September 30 $ 7.5 $ (25.6) $ 7.5 $ (25.6) Reclassifications of accumulated other comprehensive income (loss) Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Derivative instruments Currency exchange contracts (1) $ 0.2 $ (0.2) $ 0.2 $ — Natural gas contracts (2) — (0.3) 0.1 (0.9) Total before tax 0.2 (0.5) 0.3 (0.9) (Provision) benefit for income taxes (0.1) 0.1 (0.1) 0.2 Amount included in net income (loss) $ 0.1 $ (0.4) $ 0.2 $ (0.7) Pension and other post-retirement benefits Amortization of prior service costs (2) $ — $ (0.1) $ 0.1 $ (0.1) Total before tax — (0.1) 0.1 (0.1) (Provision) benefit for income taxes — — — — Amount included in net income (loss) $ — $ (0.1) $ 0.1 $ (0.1) ______________ (1) Included within "Net sales" on the condensed consolidated statement of operations. (2) Included within "Cost of sales" on the condensed consolidated statement of operations. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Postemployment Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the components of net periodic benefit cost (income) for our defined benefit pension plans: Three Months Ended September 30, Pensions Other Benefits In millions 2021 2020 2021 2020 Components of net periodic benefit cost (income): Service cost (1) $ 0.4 $ 0.4 $ — $ — Interest cost (2) 0.3 0.3 — — Expected return on plan assets (2) (0.3) (0.3) — — Amortization of prior service cost (credit) (1) — 0.1 — — Amortization of net actuarial and other (gain) loss (2) — — — — Net periodic benefit cost (income) $ 0.4 $ 0.5 $ — $ — Nine Months Ended September 30, Pensions Other Benefits In millions 2021 2020 2021 2020 Components of net periodic benefit cost (income): Service cost (1) $ 1.3 $ 1.2 $ — $ — Interest cost (2) 0.8 0.9 — — Expected return on plan assets (2) (1.0) (0.9) — — Amortization of prior service cost (credit) (1) 0.1 0.1 — — Amortization of net actuarial and other (gain) loss (2) — — — — Net periodic benefit cost (income) $ 1.2 $ 1.3 $ — $ — _______________ (1) Amounts are recorded to "Cost of sales" on our condensed consolidated statements of operations consistent with the employee compensation costs that participate in the plan. |
Restructuring and Other (Inco_2
Restructuring and Other (Income) Charges, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Detail on the restructuring charges and other (income) charges, net, is provided below. Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Severance and other employee-related costs $ — $ 0.3 $ 0.1 $ 6.3 Other — 1.7 — 1.7 Restructuring charges — 2.0 0.1 8.0 Business transformation costs 4.1 3.5 12.2 5.3 Other (income) charges, net 4.1 3.5 12.2 5.3 Total restructuring and other (income) charges, net $ 4.1 $ 5.5 $ 12.3 $ 13.3 The following table shows a roll forward of restructuring reserves that will result in cash spending. Balance at Change in Cash Balance at In millions 12/31/2020 (1) Reserve (2) Payments Other 9/30/2021 (1) Restructuring Reserves $ 0.8 0.1 (0.5) — $ 0.4 _______________ (1) Included in "Accrued Expenses" on the condensed consolidated balance sheets. (2) Includes severance and other employee-related costs. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rates, including discrete items, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Effective tax rate (1) 53.3 % 20.7 % 29.8 % 19.7 % _______________ (1) The effective tax rate (“ETR”) in the three months ended September 30, 2021 was primarily impacted by the litigation expense recorded during the period. The ETR for the nine months ended September 30, 2021 was impacted by the litigation expense and legislative tax rate change recorded during the period. The below tables provide a reconciliation between our reported effective tax rates and the EAETR. Three Months Ended September 30, 2021 2020 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ (9.0) $ (4.8) 53.3 % $ 88.1 $ 18.2 20.7 % Discrete items: Restructuring and other (income) charges, net (1) — — 2.0 0.3 Acquisition and other-related costs (2) — — — — Legislative tax rate changes (3) — 0.1 — — Litigation expense (4) 85.0 19.7 — — Other tax only discrete items — 0.5 — (0.2) Total discrete items 85.0 20.3 2.0 0.1 Consolidated operations, before discrete items $ 76.0 $ 15.5 $ 90.1 $ 18.3 Quarterly effect of changes in the EAETR 20.4 % 20.3 % Nine Months Ended September 30, 2021 2020 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ 126.5 $ 37.7 29.8 % $ 168.7 $ 33.3 19.7 % Discrete items: Restructuring and other (income) charges, net (1) 0.1 — 8.0 1.7 Acquisition and other-related costs (2) — — 1.7 0.4 Legislative tax rate changes (3) — (14.6) — — Litigation expense (4) 85.0 19.7 — — Other tax only discrete items — 0.7 — 1.0 Total discrete items 85.1 5.8 9.7 3.1 Consolidated operations, before discrete items $ 211.6 $ 43.5 $ 178.4 $ 36.4 EAETR (5) 20.6 % 20.4 % _______________ (1) Refer to Note 12 for additional information. (2) Costs incurred to integrate the Perstorp Capa business into our Performance Ch emicals segment. (3) Legislative tax rate changes, enacted in the United Kingdom ("UK"), resulted in discrete tax expense of $14.6 million related to the revaluation of our net deferred tax liability associated with our UK operations. The corporate tax rate in the UK increased from 19.0% to 25.0% on April 1, 2023. Impact for the three months ended September 30, 2021 are a result of currency translation. (4) Refer to Note 14 for additional information. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended September 30, Nine Months Ended September 30, In millions 2021 2020 2021 2020 Net sales Performance Materials $ 118.1 $ 143.8 $ 384.8 $ 349.3 Performance Chemicals 258.7 187.9 670.7 541.2 Total net sales (1) $ 376.8 $ 331.7 $ 1,055.5 $ 890.5 Segment EBITDA (2) Performance Materials $ 56.4 $ 80.4 $ 191.4 $ 164.9 Performance Chemicals 63.1 47.2 151.2 122.1 Total segment EBITDA (2) $ 119.5 $ 127.6 $ 342.6 $ 287.0 Interest expense, net (11.6) (8.9) (36.2) (29.8) (Provision) benefit for income taxes 4.8 (18.2) (37.7) (33.3) Depreciation and amortization - Performance Materials (8.9) (8.0) (26.9) (22.5) Depreciation and amortization - Performance Chemicals (18.7) (17.1) (54.8) (51.0) Restructuring and other income (charges), net (3) (4.1) (5.5) (12.3) (13.3) Acquisition and other-related costs (4) (0.2) — (0.9) (1.7) Litigation expense (5) (85.0) — (85.0) — Net income (loss) $ (4.2) $ 69.9 $ 88.8 $ 135.4 _______________ (1) Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation. (2) Segment EBITDA is the primary measure used by our chief operating decision maker to evaluate the performance of and allocate resources among our operating segments. Segment EBITDA is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense, net, associated with corporate debt facilities, income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other-related costs, certain litigation expenses, pension and postretirement settlement and curtailment (income) charges, net. (3) Income (charges) for all periods presented relate to restructuring activity and costs associated with the business transformation initiative. For the three and nine months ended September 30, 2021, charges of $1.1 million and $4.5 million relate to the Performance Materials segment and charges of $3.0 million and $7.8 million relate to the Performance Chemicals segment, respectively. For the three and nine months ended September 30, 2020, charges of $2.6 million and $5.4 million relate to the Performance Materials segment and charges of $2.9 million and $7.9 million relate to the Performance Chemicals segment, respectively. For more detail on the charges incurred refer to Note 12. (4) For the three and nine months ended September 30, 2021, charges of zero and $0.2 million relate to the acquisition of a strategic investment in the Performance Materials segment and charges of $0.2 million and $0.7 million relate to the integration of the Perstorp Capa business into our Performance Chemicals segment, respectively. For the three and nine months ended September 30, 2020, all charges relate to the integration of the Perstorp Capa business into our Performance Chemicals segment. (5) For the three and nine months ended September 30, 2021, litigation expense relates to the Performance Materials segment. Refer to Note 14 for additional information. |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended September 30, Nine Months Ended September 30, In millions, except share and per share data 2021 2020 2021 2020 Net income (loss) $ (4.2) $ 69.9 $ 88.8 $ 135.4 Basic and Diluted earnings (loss) per share Basic earnings (loss) per share $ (0.11) $ 1.69 $ 2.22 $ 3.27 Diluted earnings (loss) per share (0.11) 1.69 2.21 3.26 Shares (in thousands) Weighted average number of common shares outstanding - Basic 39,537 41,276 39,993 41,400 Weighted average additional shares assuming conversion of potential common shares (1) — 175 245 179 Shares - diluted basis (1) 39,537 41,451 40,238 41,579 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following average number of potential common shares were antidilutive, and therefore, were not included in the diluted earnings per share calculation: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2021 2020 2021 2020 Average number of potential common shares - antidilutive 375 173 200 205 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 376.8 | $ 331.7 | $ 1,055.5 | $ 890.5 |
Performance Materials segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 118.1 | 143.8 | 384.8 | 349.3 |
Performance Chemicals segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 258.7 | 187.9 | 670.7 | 541.2 |
Performance Chemicals segment | Pavement Technologies product line | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 73.2 | 72.5 | 162.4 | 157.1 |
Performance Chemicals segment | Industrial Specialties product line | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 132.6 | 90.1 | 364.7 | 290.9 |
Performance Chemicals segment | Engineered Polymers product line | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 52.9 | $ 25.3 | $ 143.6 | $ 93.2 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 376.8 | $ 331.7 | $ 1,055.5 | $ 890.5 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 219.3 | 191.9 | 580.8 | 510.3 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 89.6 | 89.9 | 285 | 240.4 |
Europe, Middle East, and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 62.3 | 45.5 | 172.5 | 126 |
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5.6 | $ 4.4 | $ 17.2 | $ 13.8 |
Revenues - Contract assets (Det
Revenues - Contract assets (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability | $ 0 | $ 0 |
Change in Contract with Customer, Asset [Roll Forward] | ||
Beginning balance | 5,700,000 | 6,200,000 |
Contract asset additions | 15,800,000 | 13,500,000 |
Reclassification to accounts receivable, billed to customers | (15,400,000) | (12,900,000) |
Ending balance | $ 6,100,000 | $ 6,800,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | May 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Level 1 to level 2 transfers | $ 0 | $ 0 | |||
Payments to acquire equity method investments | $ 16,500,000 | 16,500,000 | $ 0 | ||
Carrying value of strategic equity investment | 16,500,000 | ||||
Debt securities, held-to-maturity, restricted | 75,500,000 | 73,600,000 | |||
Held-to-maturity, allowance for credit loss | 500,000 | 900,000 | |||
Restricted cash | 4,100,000 | 2,400,000 | |||
Restricted investments, at fair value | 80,900,000 | 81,500,000 | |||
Total debt including finance lease obligations | 1,285,400,000 | 1,306,500,000 | |||
Contingent consideration liability | $ 7,000,000 | ||||
Liability | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Revenue Earn-out consideration | 800,000 | 800,000 | |||
Variable Interest Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total debt including finance lease obligations | 332,800,000 | 353,400,000 | |||
Senior Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total debt including finance lease obligations | 850,000,000 | 850,000,000 | |||
Debt instrument, fair value | 855,900,000 | 864,100,000 | |||
Reported Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligations | 102,600,000 | 103,100,000 | |||
Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligations | $ 120,400,000 | $ 127,000,000 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | May 31, 2020 |
Liabilities: | |||
Contingent consideration liability | $ 7 | ||
Life insurance owned by company | $ 13.4 | $ 10.8 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Equity securities | 0.2 | ||
Deferred compensation plan investments | 1 | 1.7 | |
Total assets | 1 | 1.9 | |
Liabilities: | |||
Deferred compensation arrangement | 13 | 11.6 | |
Contingent consideration liability | 0.8 | 0.8 | |
Total liabilities | 13.8 | 12.4 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Equity securities | 0.2 | ||
Deferred compensation plan investments | 1 | 1.7 | |
Total assets | 1 | 1.9 | |
Liabilities: | |||
Deferred compensation arrangement | 13 | 11.6 | |
Contingent consideration liability | 0 | 0 | |
Total liabilities | 13 | 11.6 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Equity securities | 0 | ||
Deferred compensation plan investments | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Deferred compensation arrangement | 0 | 0 | |
Contingent consideration liability | 0 | 0 | |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Equity securities | 0 | ||
Deferred compensation plan investments | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Deferred compensation arrangement | 0 | 0 | |
Contingent consideration liability | 0.8 | 0.8 | |
Total liabilities | $ 0.8 | $ 0.8 |
Fair Value Measurements - Credi
Fair Value Measurements - Credit Ratings (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | $ 71.9 | $ 72.1 |
AA+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 13.4 | 13.5 |
AA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 10.6 | 10.6 |
A | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 24.2 | 24.2 |
A- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 13.3 | 13.4 |
BBB+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | $ 10.4 | $ 10.4 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 (Details) - Liability $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0.8 |
Newly issued | 0 |
Change in revaluation of contingent consideration included in earnings | 0 |
Exercises/settlements | 0 |
Ending balance | $ 0.8 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory, Net | ||
Raw materials | $ 41.5 | $ 39.1 |
Production materials, stores and supplies | 25.9 | 24.6 |
Finished and in-process goods | 176.9 | 139.6 |
Subtotal | 244.3 | 203.3 |
Less: LIFO reserve | (16) | (14.3) |
Inventories, net | $ 228.3 | $ 189 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment | ||
Total cost | $ 1,340.7 | $ 1,303.2 |
Less: accumulated depreciation | (639.5) | (599.6) |
Property, plant, and equipment, net | 701.2 | 703.6 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Total cost | 1,100.7 | 1,065.5 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment | ||
Total cost | 175.4 | 174 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Total cost | 20.4 | 20 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | $ 44.2 | $ 43.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Carrying Amount (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 445.3 |
Foreign currency translation | (4.6) |
Goodwill, ending balance | 440.7 |
Performance Chemicals | |
Goodwill | |
Goodwill, beginning balance | 441 |
Foreign currency translation | (4.6) |
Goodwill, ending balance | 436.4 |
Performance Materials | |
Goodwill | |
Goodwill, beginning balance | 4.3 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 4.3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 471 | $ 477.6 |
Accumulated amortization | 126.2 | 104.3 |
Net | 344.8 | 373.3 |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 317.1 | 319.5 |
Accumulated amortization | 89.5 | 73.6 |
Net | 227.6 | 245.9 |
Brands | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 81.4 | 82.4 |
Accumulated amortization | 19.1 | 15.8 |
Net | 62.3 | 66.6 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 72 | 73 |
Accumulated amortization | 17.1 | 12.5 |
Net | 54.9 | 60.5 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 0.5 | 2.7 |
Accumulated amortization | 0.5 | 2.4 |
Net | $ 0 | $ 0.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Intangible Assets by Segments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | $ 344.8 | $ 373.3 |
Performance Materials | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | 2 | 2.1 |
Performance Chemicals | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | $ 342.8 | $ 371.2 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, net - Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 8.3 | $ 8.2 | $ 25.1 | $ 24.4 |
Cost of sales | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | 0 | 0 | 0 | 0.1 |
Selling, general, and administrative expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization expense | $ 8.3 | $ 8.2 | $ 25.1 | $ 24.3 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets, net - Maturity (Details) $ in Millions | Sep. 30, 2021USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2021 amortization expense | $ 33.4 |
2022 amortization expense | 33.1 |
2023 amortization expense | 33 |
2024 amortization expense | 32.7 |
2025 amortization expense | $ 32.7 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) mmbtus in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)mmbtus | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)mmbtus | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||||
Cash flow hedged to be reclassified within 12 months | $ 100,000 | ||||
Level 1 to level 2 transfers | $ 0 | 0 | $ 0 | ||
Currency Swap | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 166,200,000 | 166,200,000 | |||
Derivative, fair value, net asset (liability) | (700,000) | (700,000) | (8,600,000) | ||
Interest and dividend | $ 100,000 | $ 200,000 | $ 300,000 | $ 1,500,000 | |
Currency Swap | US Dollar Denominated | |||||
Derivative [Line Items] | |||||
Derivative, fixed interest rate | 3.79% | 3.79% | |||
Currency Swap | Eurodollar | |||||
Derivative [Line Items] | |||||
Derivative, fixed interest rate | 1.71% | 1.71% | |||
Currency exchange contracts | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 4,800,000 | $ 4,800,000 | |||
Derivative asset (liability) | 200,000 | 200,000 | (100,000) | ||
Commodity hedging | |||||
Derivative [Line Items] | |||||
Derivative, fair value, net asset (liability) | $ 3,000,000 | $ 3,000,000 | (100,000) | ||
Commodity hedging | Swap | |||||
Derivative [Line Items] | |||||
Derivative, nonmonetary notional amount | mmbtus | 1.2 | 1.2 | |||
Commodity hedging | Zero Cost Collar | |||||
Derivative [Line Items] | |||||
Derivative, nonmonetary notional amount | mmbtus | 0.9 | 0.9 | |||
Interest rate swap contracts | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 166,200,000 | $ 166,200,000 | |||
Derivative, fair value, net asset (liability) | $ (6,000,000) | $ (6,000,000) | $ (8,900,000) |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Effect of Cash Flow and Net Investment Hedge Accounting on AOCI (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales | $ 376,800,000 | $ 331,700,000 | $ 1,055,500,000 | $ 890,500,000 |
Cost of sales | 235,000,000 | 192,100,000 | 647,700,000 | 552,400,000 |
Interest expense, net | (11,600,000) | (8,900,000) | (36,200,000) | (29,800,000) |
Interest expense, net | (84,600,000) | 3,000,000 | (81,600,000) | 100,000 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 3,800,000 | (8,100,000) | ||
Total | 3,600,000 | 900,000 | 6,900,000 | (5,900,000) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 0 | 200,000 | ||
Total | (200,000) | (500,000) | (300,000) | (900,000) |
Accumulated Gain (Loss) Net Investment Hedging | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 8,000,000 | (3,500,000) | ||
Accumulated Gain (Loss) Net Investment Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 200,000 | 1,500,000 | ||
Currency exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Reclassifications from AOCI to net income | 0 | 0 | 0 | 0 |
Currency exchange contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales | 100,000 | (300,000) | 300,000 | (100,000) |
Interest expense, net | 3,800,000 | (8,100,000) | ||
Currency exchange contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales | (200,000) | (200,000) | (200,000) | 0 |
Interest expense, net | 0 | 200,000 | ||
Currency exchange contracts | Accumulated Gain (Loss) Net Investment Hedging | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 8,000,000 | (3,500,000) | ||
Currency exchange contracts | Accumulated Gain (Loss) Net Investment Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 200,000 | 1,500,000 | ||
Natural gas contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of sales | 2,800,000 | 400,000 | 3,700,000 | (100,000) |
Natural gas contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of sales | 0 | (300,000) | (100,000) | (900,000) |
Interest rate swap contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | 700,000 | 800,000 | 2,900,000 | (5,700,000) |
Interest rate swap contracts | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense, net | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Fair Value of Hedging Contracts (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Total assets | $ 3.8 | $ 0.1 |
Liabilities: | ||
Total liabilities | 7.3 | 17.8 |
Level 1 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets | 3.8 | 0.1 |
Liabilities: | ||
Total liabilities | 7.3 | 17.8 |
Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Currency exchange contracts | ||
Assets: | ||
Total assets | 0.2 | |
Liabilities: | ||
Total liabilities | 0.1 | |
Currency exchange contracts | Level 1 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | |
Currency exchange contracts | Level 2 | ||
Assets: | ||
Total assets | 0.2 | |
Liabilities: | ||
Total liabilities | 0.1 | |
Currency exchange contracts | Level 3 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | |
Natural gas contracts | ||
Assets: | ||
Total assets | 3 | 0.1 |
Liabilities: | ||
Total liabilities | 0 | 0.2 |
Natural gas contracts | Level 1 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Natural gas contracts | Level 2 | ||
Assets: | ||
Total assets | 3 | 0.1 |
Liabilities: | ||
Total liabilities | 0 | 0.2 |
Natural gas contracts | Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Net investment hedge | ||
Assets: | ||
Total assets | 0.6 | |
Liabilities: | ||
Total liabilities | 1.3 | 8.6 |
Net investment hedge | Level 1 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | 0 |
Net investment hedge | Level 2 | ||
Assets: | ||
Total assets | 0.6 | |
Liabilities: | ||
Total liabilities | 1.3 | 8.6 |
Net investment hedge | Level 3 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest rate swap contracts | ||
Liabilities: | ||
Total liabilities | 6 | 8.9 |
Interest rate swap contracts | Level 1 | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Interest rate swap contracts | Level 2 | ||
Liabilities: | ||
Total liabilities | 6 | 8.9 |
Interest rate swap contracts | Level 3 | ||
Liabilities: | ||
Total liabilities | $ 0 | $ 0 |
Debt including Finance Lease _3
Debt including Finance Lease Obligations - Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 1,285.4 | $ 1,306.5 |
Less: debt issuance costs | 11.5 | 13.1 |
Total debt, including finance lease obligations, net of debt issuance costs | 1,273.9 | 1,293.4 |
Less: debt maturing within one year | 19.5 | 26 |
Long-term debt including finance lease obligations | $ 1,254.4 | 1,267.4 |
Revolving Credit Facility | ||
Line of Credit Facility | ||
Interest rate | 1.33% | |
Total debt including finance lease obligations | $ 0 | 0 |
Letters of credit outstanding | 2.3 | 2.3 |
Available under the facility | $ 497.7 | 497.7 |
Term Loan | ||
Line of Credit Facility | ||
Interest rate | 1.38% | |
Total debt including finance lease obligations | $ 332.8 | 351.6 |
Other notes payable | ||
Line of Credit Facility | ||
Interest rate | 0.00% | |
Total debt including finance lease obligations | $ 0 | 1.8 |
Senior Notes | 2028 Senior Note | ||
Line of Credit Facility | ||
Interest rate | 3.88% | |
Total debt including finance lease obligations | $ 550 | 550 |
Senior Notes | 2026 Senior Note | ||
Line of Credit Facility | ||
Interest rate | 4.50% | |
Total debt including finance lease obligations | $ 300 | 300 |
Finance lease obligations | ||
Line of Credit Facility | ||
Interest rate | 7.17% | |
Total debt including finance lease obligations | $ 102.6 | $ 103.1 |
Debt including Finance Lease _4
Debt including Finance Lease Obligations - Narrative (Details) | Sep. 30, 2021 |
Line of Credit Facility | |
Leverage ratio, interest | 12.5 |
2017 Term Loan | |
Line of Credit Facility | |
Leverage ratio potential increase | 4.5 |
Leverage ratio, interest | 3 |
Actual leverage ratio | 2.1 |
Maximum | 2017 Term Loan | |
Line of Credit Facility | |
Leverage ratio | 4 |
Revolving Credit Facility | |
Line of Credit Facility | |
Leverage ratio | 4 |
Leverage ratio potential increase | 4.5 |
Leverage ratio, interest | 3 |
Actual leverage ratio | 2.6 |
Equity - Rollforward (Details)
Equity - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance (shares) | 40,509,997 | 40,509,997 | ||||||
Beginning balance | $ 688.5 | $ 661.1 | $ 642.1 | $ 522.9 | $ 502.1 | $ 530.8 | $ 642.1 | $ 530.8 |
Net income (loss) | (4.2) | 44.3 | 48.7 | 69.9 | 20.2 | 45.3 | 88.8 | 135.4 |
Other comprehensive income (loss) | (11.1) | 5.4 | 8.5 | 22.6 | (4.1) | (39.1) | ||
Exercise of stock options, net | 0.1 | 1.5 | 0.9 | 1.4 | ||||
Tax payments related to vested restricted stock units | (0.1) | (2.3) | (0.1) | 0.1 | (3.1) | |||
Share repurchase program | (32.2) | (28.7) | (39.4) | (32.4) | $ (100.3) | |||
Share-based compensation plans | $ 3.5 | 4.9 | 2.6 | 1.7 | 3.2 | 1.2 | ||
Ending balance (shares) | 39,374,530 | 39,374,530 | ||||||
Ending balance | $ 644.5 | $ 688.5 | $ 661.1 | $ 617 | $ 522.9 | 502.1 | $ 644.5 | 617 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance | $ (0.6) | $ (0.6) | ||||||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance (shares) | 43,085,000 | 43,034,000 | 42,913,000 | 42,891,000 | 42,836,000 | 42,675,000 | 42,913,000 | 42,675,000 |
Beginning balance | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 |
Common stock issued (shares) | 5,000 | 19,000 | 97,000 | 3,000 | 5,000 | 161,000 | ||
Exercise of stock options, net (shares) | 2,000 | 32,000 | 24,000 | 1,000 | 50,000 | |||
Ending balance (shares) | 43,092,000 | 43,085,000 | 43,034,000 | 42,895,000 | 42,891,000 | 42,836,000 | 43,092,000 | 42,895,000 |
Ending balance | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 |
Additional paid in capital | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance | 130.3 | 124.8 | 121.3 | 116.3 | 113.6 | 112.8 | 121.3 | 112.8 |
Exercise of stock options, net | 0.1 | 1.5 | 0.9 | 1.4 | ||||
Share-based compensation plans | 3 | 4 | 2.6 | 0.5 | 1.3 | 0.8 | ||
Ending balance | 133.4 | 130.3 | 124.8 | 116.8 | 116.3 | 113.6 | 133.4 | 116.8 |
Retained earnings | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance | 771 | 726.7 | 678 | 562.1 | 541.9 | 497.2 | 678 | 497.2 |
Net income (loss) | (4.2) | 44.3 | 48.7 | 69.9 | 20.2 | 45.3 | ||
Ending balance | 766.8 | 771 | 726.7 | 632 | 562.1 | 541.9 | 766.8 | 632 |
Retained earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance | (0.6) | (0.6) | ||||||
Accumulated other comprehensive income (loss) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance | 18.6 | 13.2 | 4.7 | (48.2) | (44.1) | (5) | 4.7 | (5) |
Other comprehensive income (loss) | (11.1) | 5.4 | 8.5 | 22.6 | (4.1) | (39.1) | ||
Ending balance | 7.5 | 18.6 | 13.2 | (25.6) | (48.2) | (44.1) | 7.5 | (25.6) |
Treasury stock | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Beginning balance | (231.8) | (204) | (162.3) | (107.7) | (109.7) | (74.6) | (162.3) | (74.6) |
Tax payments related to vested restricted stock units | (0.1) | (2.3) | (0.1) | 0.1 | (3.1) | |||
Share repurchase program | (32.2) | (28.7) | (39.4) | (32.4) | ||||
Share-based compensation plans | 0.5 | 0.9 | 1.2 | 1.9 | 0.4 | |||
Ending balance | $ (263.6) | $ (231.8) | $ (204) | $ (106.6) | $ (107.7) | $ (109.7) | $ (263.6) | $ (106.6) |
Equity - Rollforward of Accumul
Equity - Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Less: tax provision (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Net actuarial gains (losses) and prior service (costs) credits | 0 | 100,000 | 100,000 | 100,000 |
Other comprehensive income (loss), net of tax | (11,100,000) | 22,600,000 | 2,800,000 | (20,600,000) |
Ending balance | 7,500,000 | (25,600,000) | 7,500,000 | (25,600,000) |
Total AOCI ending balance at September 30 | 7,500,000 | (25,600,000) | 7,500,000 | (25,600,000) |
Foreign currency translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 27,800,000 | (36,800,000) | 16,400,000 | 1,500,000 |
Net gains (losses) on foreign currency translation | (16,700,000) | 27,600,000 | (8,500,000) | (14,200,000) |
Gains (losses) before reclassification, before tax | 3,800,000 | (8,100,000) | 8,000,000 | (3,500,000) |
Less: tax provision (benefit) | 900,000 | (1,900,000) | 1,900,000 | (800,000) |
Net gains (losses) on net investment hedges | 2,900,000 | (6,200,000) | 6,100,000 | (2,700,000) |
Other comprehensive income (loss), net of tax | (13,800,000) | 21,400,000 | (2,400,000) | (16,900,000) |
Ending balance | 14,000,000 | (15,400,000) | 14,000,000 | (15,400,000) |
Total AOCI ending balance at September 30 | 14,000,000 | (15,400,000) | 14,000,000 | (15,400,000) |
Derivative instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,500,000) | (8,400,000) | (6,900,000) | (3,500,000) |
Gains (losses) before reclassification, before tax | 3,600,000 | 900,000 | 6,900,000 | (5,900,000) |
Less: tax provision (benefit) | 800,000 | 200,000 | 1,600,000 | (1,400,000) |
Net gains (losses) on derivative instruments | 2,800,000 | 700,000 | 5,300,000 | (4,500,000) |
(Gains) losses reclassified to net income | (200,000) | 500,000 | (300,000) | 900,000 |
Less: tax (provision) benefit | (100,000) | 100,000 | (100,000) | 200,000 |
Net (gains) losses reclassified to net income | (100,000) | 400,000 | (200,000) | 700,000 |
Other comprehensive income (loss), net of tax | 2,700,000 | 1,100,000 | 5,100,000 | (3,800,000) |
Ending balance | (1,800,000) | (7,300,000) | (1,800,000) | (7,300,000) |
Total AOCI ending balance at September 30 | (1,800,000) | (7,300,000) | (1,800,000) | (7,300,000) |
Pension and other postretirement benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,700,000) | (3,000,000) | (4,800,000) | (3,000,000) |
Unrealized actuarial gains (losses) and prior service (costs) credits | 0 | 0 | 0 | 0 |
Less: tax provision (benefit) | 0 | 0 | 0 | 0 |
Net actuarial gains (losses) and prior service (costs) credits | 0 | 0 | 0 | 0 |
Gains (losses) before reclassification, before tax | 0 | 100,000 | 100,000 | 100,000 |
Less: tax (provision) benefit | 0 | 0 | 0 | 0 |
Net (gains) losses reclassified to net income | 0 | 100,000 | 100,000 | 100,000 |
Other comprehensive income (loss), net of tax | 0 | 100,000 | 100,000 | 100,000 |
Ending balance | (4,700,000) | (2,900,000) | (4,700,000) | (2,900,000) |
Total AOCI ending balance at September 30 | $ (4,700,000) | $ (2,900,000) | $ (4,700,000) | $ (2,900,000) |
Equity - Reclassification of AO
Equity - Reclassification of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | $ 376.8 | $ 331.7 | $ 1,055.5 | $ 890.5 | ||||
Cost of sales | (235) | (192.1) | (647.7) | (552.4) | ||||
Income (loss) before income taxes | (9) | 88.1 | 126.5 | 168.7 | ||||
(Provision) benefit for income taxes | 4.8 | (18.2) | (37.7) | (33.3) | ||||
Net income (loss) | (4.2) | $ 44.3 | $ 48.7 | 69.9 | $ 20.2 | $ 45.3 | 88.8 | 135.4 |
Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income (loss) before income taxes | 0.2 | (0.5) | 0.3 | (0.9) | ||||
(Provision) benefit for income taxes | (0.1) | 0.1 | (0.1) | 0.2 | ||||
Net income (loss) | 0.1 | (0.4) | 0.2 | (0.7) | ||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | 0 | (0.1) | 0.1 | (0.1) | ||||
Pension and other postretirement benefits | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Income (loss) before income taxes | 0 | (0.1) | 0.1 | (0.1) | ||||
(Provision) benefit for income taxes | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 0 | (0.1) | 0.1 | (0.1) | ||||
Currency exchange contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Net sales | 0.2 | (0.2) | 0.2 | 0 | ||||
Natural gas contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | $ 0 | $ (0.3) | $ 0.1 | $ (0.9) |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | |
Equity [Abstract] | |||||
Amount remained unused under repurchase program | $ 311.7 | $ 311.7 | |||
Shares repurchased | $ 32.2 | $ 28.7 | $ 39.4 | $ 32.4 | $ 100.3 |
Shares repurchased (shares) | 414,501 | 1,298,167 | |||
Shares acquired average cost per share (usd per share) | $ 77.77 | $ 77.25 |
Retirement Plans - Summary of C
Retirement Plans - Summary of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pensions | ||||
Components of net periodic benefit cost (income): | ||||
Service cost | $ 0.4 | $ 0.4 | $ 1.3 | $ 1.2 |
Interest cost | 0.3 | 0.3 | 0.8 | 0.9 |
Expected return on plan assets | (0.3) | (0.3) | (1) | (0.9) |
Amortization of prior service cost (credit) | 0 | 0.1 | 0.1 | 0.1 |
Amortization of net actuarial and other (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | 0.4 | 0.5 | 1.2 | 1.3 |
Other Benefits | ||||
Components of net periodic benefit cost (income): | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Amortization of net actuarial and other (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Postemployment Benefits [Abstract] | |
Discretionary contribution amount | $ 0 |
Restructuring and Other (Inco_3
Restructuring and Other (Income) Charges, net - Restructuring (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and other employee-related costs | $ 0 | $ 300,000 | $ 100,000 | $ 6,300,000 |
Other | 0 | 1,700,000 | 0 | 1,700,000 |
Restructuring charges | 0 | 2,000,000 | 100,000 | 8,000,000 |
Business transformation costs | 4,100,000 | 3,500,000 | 12,200,000 | 5,300,000 |
Other (income) charges, net | 4,100,000 | 3,500,000 | 12,200,000 | 5,300,000 |
Total restructuring and other (income) charges, net | $ 4,100,000 | $ 5,500,000 | $ 12,300,000 | $ 13,300,000 |
Restructuring and Other (Inco_4
Restructuring and Other (Income) Charges, net - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other employee-related costs | $ 0 | $ 300,000 | $ 100,000 | $ 6,300,000 |
Other | 0 | 1,700,000 | 0 | 1,700,000 |
Business transformation costs | 4,100,000 | $ 3,500,000 | 12,200,000 | $ 5,300,000 |
Other Restructuring | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected cost | 60,000,000 | 60,000,000 | ||
Other Restructuring | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected cost | 70,000,000 | 70,000,000 | ||
Non-Capitalizable | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected cost | 30,000,000 | 30,000,000 | ||
Restructuring costs expected in current fiscal year | 18,000,000 | 18,000,000 | ||
Non-Capitalizable | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected cost | 35,000,000 | 35,000,000 | ||
Restructuring costs expected in current fiscal year |
Restructuring and Other (Inco_5
Restructuring and Other (Income) Charges, net - Roll forward of Restructuring Reserve (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Restructuring Reserve | |
Restructuring reserve, beginning balance | $ 0.8 |
Change in reserve | 0.1 |
Cash payments | (0.5) |
Other | 0 |
Restructuring reserve, ending balance | $ 0.4 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Effective Income Tax Rate Reconciliation, Percent | ||||
Effective tax rate | 53.30% | 20.70% | 29.80% | 19.70% |
Income Taxes - Tax Reconciliati
Income Taxes - Tax Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Before tax | |||||
Income (loss) before income taxes | $ (9) | $ 88.1 | $ 126.5 | $ 168.7 | |
Restructuring and other (income) charges, net | 0 | 2 | 0.1 | 8 | |
Acquisition and other-related costs | 0 | 0 | 0 | 1.7 | |
Legislative tax rate changes | 0 | 0 | 0 | 0 | |
Litigation expense | 85 | 0 | 85 | 0 | |
Total discrete items | 85 | 2 | 85.1 | 9.7 | |
Consolidated operations, before discrete items | 76 | 90.1 | 211.6 | 178.4 | |
Tax | |||||
Provision (benefit) for income taxes | (4.8) | 18.2 | 37.7 | 33.3 | |
Restructuring and other (income) charges, net | 0 | 0.3 | 0 | 1.7 | |
Acquisition and other-related costs | 0 | 0 | 0 | 0.4 | |
Legislative tax rate changes | 0.1 | 0 | (14.6) | 0 | |
Litigation expense | 19.7 | 0 | 19.7 | 0 | |
Other tax only discrete items | 0.5 | (0.2) | 0.7 | 1 | |
Total discrete items, tax | 20.3 | 0.1 | 5.8 | 3.1 | |
Combined operations, before discrete items, tax | $ 15.5 | $ 18.3 | $ 43.5 | $ 36.4 | |
Effective tax rate | 53.30% | 20.70% | 29.80% | 19.70% | |
EAETR | 20.40% | 20.30% | 20.60% | 20.40% | |
Income Tax Rate Reconciliation [Line Items] | |||||
Legislative tax rate changes | $ (0.1) | $ 0 | $ 14.6 | $ 0 | |
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||||
Tax | |||||
Legislative tax rate changes | (14.6) | ||||
Income Tax Rate Reconciliation [Line Items] | |||||
Legislative tax rate changes | $ 14.6 | ||||
Effective tax rate | 25.00% | 19.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset | $ 8.5 | $ 8.4 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Millions | Sep. 15, 2021 | Sep. 30, 2021 |
Loss Contingencies [Line Items] | ||
Litigation settlement | $ 85 | |
Loss contingency accrual | $ 85 | |
Settled Litigation | BASF Lawsuit | ||
Loss Contingencies [Line Items] | ||
Awarded damages | $ 28.3 |
Segment Information - Net Sales
Segment Information - Net Sales and Segment Operating Profit (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 376,800,000 | $ 331,700,000 | $ 1,055,500,000 | $ 890,500,000 |
Segment Reporting Information, Profit (Loss) | ||||
Segment operating profits | 119,500,000 | 127,600,000 | 342,600,000 | 287,000,000 |
Interest expense, net | (11,600,000) | (8,900,000) | (36,200,000) | (29,800,000) |
(Provision) benefit for income taxes | 4,800,000 | (18,200,000) | (37,700,000) | (33,300,000) |
Depreciation and amortization | (81,700,000) | (73,500,000) | ||
Restructuring and other income (charges), net | (4,100,000) | (5,500,000) | (12,300,000) | (13,300,000) |
Acquisition and other related costs | (200,000) | 0 | (900,000) | (1,700,000) |
Litigation expense | (85,000,000) | 0 | (85,000,000) | 0 |
Net income (loss) attributable to Ingevity stockholders | (4,200,000) | 69,900,000 | 88,800,000 | 135,400,000 |
Performance Materials | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 118,100,000 | 143,800,000 | 384,800,000 | 349,300,000 |
Segment Reporting Information, Profit (Loss) | ||||
Segment operating profits | 56,400,000 | 80,400,000 | 191,400,000 | 164,900,000 |
Depreciation and amortization | (8,900,000) | (8,000,000) | (26,900,000) | (22,500,000) |
Restructuring and other income (charges), net | (1,100,000) | (2,600,000) | (4,500,000) | (5,400,000) |
Acquisition and other related costs | 0 | (200,000) | ||
Performance Chemicals | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 258,700,000 | 187,900,000 | 670,700,000 | 541,200,000 |
Segment Reporting Information, Profit (Loss) | ||||
Segment operating profits | 63,100,000 | 47,200,000 | 151,200,000 | 122,100,000 |
Depreciation and amortization | (18,700,000) | (17,100,000) | (54,800,000) | (51,000,000) |
Restructuring and other income (charges), net | (3,000,000) | $ (2,900,000) | (7,800,000) | $ (7,900,000) |
Acquisition and other related costs | $ (200,000) | $ (700,000) |
Earnings (Loss) per Share - Ear
Earnings (Loss) per Share - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share Reconciliation | ||||
Net income (loss) | $ (4.2) | $ 69.9 | $ 88.8 | $ 135.4 |
Basic and Diluted earnings (loss) per share | ||||
Basic earnings (loss) per share (usd per share) | $ (0.11) | $ 1.69 | $ 2.22 | $ 3.27 |
Diluted earnings (loss) per share (usd per share) | $ (0.11) | $ 1.69 | $ 2.21 | $ 3.26 |
Shares | ||||
Weighted average number of common shares outstanding - Basic (shares) | 39,537 | 41,276 | 39,993 | 41,400 |
Weighted average additional shares assuming conversion of potential common shares (shares) | 0 | 175 | 245 | 179 |
Shares - diluted basis (shares) | 39,537 | 41,451 | 40,238 | 41,579 |
Earnings (Loss) per Share - Ant
Earnings (Loss) per Share - Antidilutive (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Average number of potential common shares - antidilutive (shares) | 375 | 173 | 200 | 205 |