Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AdvanSix Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 30,482,966 | |
Amendment Flag | false | |
Entity Central Index Key | 1,673,985 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 37,964 | $ 0 |
Accounts and other receivables – net | 148,583 | 127,545 |
Inventories | 136,650 | 150,231 |
Other current assets | 5,051 | 4,443 |
Total current assets | 328,248 | 282,219 |
Property, plant, equipment – net | 551,578 | 527,542 |
Goodwill | 15,005 | 15,005 |
Other assets | 28,043 | 16,220 |
Total assets | 922,874 | 840,986 |
Current liabilities: | ||
Accounts payable | 190,228 | 192,733 |
Accrued liabilities | 15,425 | 25,114 |
Deferred income and customer advances | 1,705 | 25,207 |
Total current liabilities | 207,358 | 243,054 |
Deferred income taxes | 130,678 | 114,910 |
Long-term debt | 308,230 | |
Postretirement benefit obligations | 34,935 | |
Other liabilities | 4,205 | 3,952 |
Total liabilities | 685,406 | 361,916 |
CONTINGENCIES (Note 12) | ||
EQUITY | ||
Common stock, par value $0.01; 200,000,000 shares authorized and 30,482,966 shares issued and outstanding | 305 | |
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding | ||
Additional paid in capital | 242,254 | |
Retained earnings | ||
Invested equity | 482,809 | |
Accumulated other comprehensive loss | (5,091) | (3,739) |
Total equity | 237,468 | 479,070 |
Total liabilities and equity | $ 922,874 | $ 840,986 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) | Sep. 30, 2016$ / sharesshares |
Common stock par value (in Dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized | 200,000,000 |
Common stock, shares issued | 30,482,966 |
Common stock, shares outstanding | 30,482,966 |
Preferred stock par value (in Dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Sales | $ 323,953 | $ 335,874 | $ 932,201 | $ 1,013,544 |
Costs, expenses and other: | ||||
Costs of goods sold | 285,091 | 289,985 | 804,471 | 900,194 |
Selling, general and administrative expenses | 11,695 | 14,609 | 33,949 | 39,204 |
Other non-operating, net | (635) | (815) | (1,792) | (2,014) |
296,151 | 303,779 | 836,628 | 937,384 | |
Income before taxes | 27,802 | 32,095 | 95,573 | 76,160 |
Income taxes | 11,342 | 11,684 | 36,712 | 27,722 |
Net income | $ 16,460 | $ 20,411 | $ 58,861 | $ 48,438 |
Earnings per common share | ||||
Basic (in Dollars per share) | $ 0.54 | $ 0.67 | $ 1.93 | $ 1.59 |
Diluted (in Dollars per share) | $ 0.54 | $ 0.67 | $ 1.93 | $ 1.59 |
Weighted average common shares outstanding | ||||
Basic (in Shares) | 30,482,966 | 30,482,966 | 30,482,966 | 30,482,966 |
Diluted (in Shares) | 30,482,966 | 30,482,966 | 30,482,966 | 30,482,966 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 16,460 | $ 20,411 | $ 58,861 | $ 48,438 |
Foreign exchange translation adjustment | (148) | 146 | 284 | (985) |
Commodity hedges | (3,470) | (1,496) | (1,635) | 3,592 |
Other comprehensive income (loss), net of tax | (3,618) | (1,350) | (1,351) | 2,607 |
Comprehensive income | $ 12,842 | $ 19,061 | $ 57,510 | $ 51,045 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 58,861 | $ 48,438 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | ||
Depreciation and amortization | 29,964 | 27,376 |
Loss on disposal of assets | 1,246 | 1,035 |
Deferred income taxes | 29,206 | 7,629 |
Changes in assets and liabilities: | ||
Accounts and other receivables | (20,117) | 40,175 |
Inventories | 13,581 | 16,539 |
Accounts payable | (161) | (34,513) |
Accrued liabilities | (9,690) | (3,183) |
Deferred income and customer advances | (23,501) | (28,640) |
Other assets and liabilities | (12,922) | (5,008) |
Net cash provided by operating activities | 66,467 | 69,848 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (56,859) | (67,898) |
Other investing activities | (461) | (563) |
Net cash used for investing activities | (57,320) | (68,461) |
Cash flows from financing activities: | ||
Proceeds from long term debt | 270,000 | |
Distribution to Honeywell in connection with the Spin-Off | (269,347) | |
Net (decrease) in invested equity | (9,050) | (1,181) |
Other financing activities | (206) | |
Net cash provided by (used for) financing activities | 28,817 | (1,387) |
Net increase in cash and cash equivalents | 37,964 | |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at the end of period | 37,964 | |
Borrowings under revolving credit facility | 40,000 | |
Supplemental non-cash investing activities: | ||
Capital expenditures included in Accounts Payable | 19,935 | $ 22,510 |
Line of Credit [Member] | ||
Cash flows from financing activities: | ||
Payment of debt issuance costs | (1,770) | |
Revolving Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Payment of debt issuance costs | $ (1,016) |
Organization, Operations and Ba
Organization, Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 1. Organization, Operations and Basis of Presentation Description of Business AdvanSix Inc. (“AdvanSix”, the “Business”, the “Company”, “we” or “our”) is an integrated manufacturer of Nylon 6, a polymer resin which is a synthetic material used by our customers to produce engineered plastics, fibers, filaments and films that, in turn, are used in such end-products as automotive and electronic components, carpets, sports apparel, fishing nets and food and industrial packaging. As a result of our backward integration and the configuration of our manufacturing facilities, we also sell a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily including caprolactam, ammonium sulfate fertilizers, and other chemical intermediates. Each of these product lines represented the following approximate percentage of our sales: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Nylon Resins 29% 28% 29% 27% Caprolactam 16% 18% 16% 18% Ammonium Sulfate Fertilizers 22% 24% 24% 25% Chemical Intermediates 33% 30% 31% 30% AdvanSix is a single reportable segment and is primarily located in North America, operating primarily through three integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia and Chesterfield, Virginia. Separation from Honeywell On October 1, 2016, Honeywell International Inc. (“Honeywell”) completed the previously announced separation of AdvanSix. The separation was completed by Honeywell distributing all of the then outstanding shares of common stock of AdvanSix on October 1, 2016 (the “Distribution Date”) through a dividend in kind of AdvanSix common stock, par value $0.01, to holders of Honeywell common stock as of the close of business on the record date of September 16, 2016 who held their shares through the Distribution Date (the “Spin-Off”). Each Honeywell stockholder who held their shares through the Distribution Date received one share of AdvanSix common stock for every 25 shares of Honeywell common stock held at the close of business on the record date of September 16, 2016. The separation was completed pursuant to a Separation and Distribution Agreement and other agreements with Honeywell related to the separation, including an Employee Matters Agreement, a Tax Matters Agreement, and Transition Services Agreement, each of which was filed as an exhibit to our Current Report on Form 8-K, filed with the Securities and Exchange Commission (“SEC”) on September 28, 2016, as well as Site Sharing and Services Agreements for Chesterfield, Colonial Heights and Pottsville, each of which was filed as an exhibit to our Current Report on Form 8-K, filed with the SEC on October 3, 2016. These agreements govern the relationship between AdvanSix and Honeywell following the separation and provide for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transition services to be provided by Honeywell to AdvanSix and by AdvanSix to Honeywell. A description of the material terms and conditions of these agreements can be found in the section titled “Certain Relationships and Related Party Transactions” of the Company’s Information Statement filed as Exhibit 99.1 to Amendment No. 5 to the Registration Statement of AdvanSix Inc. on Form 10 dated and filed with the SEC on September 7, 2016 and declared effective by the SEC on September 8, 2016 (the “Form 10”). On October 3, 2016, AdvanSix stock began “regular-way” trading on the New York Stock Exchange under the “ASIX” stock symbol. Basis of Presentation These interim unaudited Consolidated Financial Statements should be read in conjunction with the combined financial statements and related notes for the year ended December 31, 2015, which appear in the Form 10. The unaudited results for interim periods do not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. We report our quarterly financial information using a calendar convention; prior to the Spin-Off, the first, second and third quarters were consistently reported as ending on March 31, June 30 and September 30 in the financial statements of Honeywell; subsequent to the Spin-Off we intend to continue following such convention. It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Prior to the Spin-Off, the effects of this practice were generally not significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide appropriate disclosures. Our actual closing dates for the three and nine months reporting periods ending September 30, 2016 and September 30, 2015 were October 1, 2016 and September 26, 2015, respectively. Prior to the separation, these Consolidated Financial Statements were derived from the consolidated financial statements and accounting records of Honeywell. These Consolidated Financial Statements reflect the consolidated historical results of operations, financial position and cash flows of AdvanSix as they were historically managed in conformity with GAAP. All intracompany transactions have been eliminated. As described in Note 3, all significant transactions between the Business and Honeywell prior to separation have been included in these Consolidated Financial Statements and are considered to be effectively settled for cash at the time the transaction is recorded. The total net effect of the settlement of these pre separation transactions is reflected in the Consolidated Statements of Cash Flows as a financing activity and in the Consolidated Balance Sheets as Invested equity. Prior to the Spin-Off, Honeywell provided certain services, such as legal, accounting, information technology, human resources and other infrastructure support, on behalf of the Business. The cost of these services has been allocated to the Business on a direct usage basis when identifiable, with the remainder allocated on the basis of revenues, headcount or other relevant measures. The Business and Honeywell consider these allocations to be a reasonable reflection of the benefits received by the Business. However, the financial information presented in these Consolidated Financial Statements may not reflect the financial position, operating results and cash flows of the Business had the Business been a separate stand-alone entity during the periods presented. Actual costs that would have been incurred if the Business had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. Both we and Honeywell consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by the Business during the periods presented. After the Spin-Off, a number of the above services will continue under a transition service agreement with Honeywell, which we will expense as incurred based on the contractual pricing terms. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASU”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires all income tax effects of awards to be recognized in the income statement on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. We are evaluating the impact of the amended guidance on our Consolidated Financial Statements and related disclosures. In February 2016, the FASB issued a new standard on accounting for leases which requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The new standard also requires disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018 (early adoption is permitted). The new standard should be applied under a modified retrospective approach. We are evaluating the impact of the new standard on our Consolidated Financial Statements and related disclosures. In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when and how an entity must disclose certain relevant conditions and events. This update requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued). If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions or events. The guidance is effective for annual and interim periods ending after December 15, 2016. This guidance will impact the disclosure and presentation of any substantial doubt by AdvanSix about its ability to continue as a going concern, if such substantial doubt were to exist. AdvanSix will adopt this guidance by December 31, 2016. In May 2014 and in subsequent related updates and amendments, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The effective date was deferred for one year to the interim and annual periods beginning on or after December 15, 2017. Early adoption is permitted as of the original effective date — interim and annual periods beginning on or after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of the amended guidance on our Consolidated Financial Statements and related disclosures. |
Related Party Transactions with
Related Party Transactions with Honeywell | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 3. Related Party Transactions with Honeywell Prior to consummation of the Spin-Off, the Consolidated Financial Statements have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Honeywell. During the three months ended September 30, 2016 and 2015, AdvanSix was allocated $10,470 and $12,387, respectively, of general corporate expenses incurred by Honeywell for certain services, such as legal, accounting, information technology, human resources, other infrastructure support and shared facilities, on behalf of the Business. During the nine months ended September 30, 2016 and 2015, AdvanSix was allocated $31,877 and $36,458, respectively. These expenses have been reflected within Costs of goods sold and Selling, general and administrative expenses in the Consolidated Statements of Operations. Sales to Honeywell during the three and nine months ended September 30, 2016 were $3,274 and $5,955, respectively, and during the three and nine months ended September 30, 2015 were $2,330 and $8,443, respectively. Of these sales, during the three and nine months ended September 30, 2016, $3,080 and $5,682, respectively, and during the three and nine months ended September 30, 2015, $1,027 and $6,961, respectively, were sold to Honeywell at zero margin. Costs of goods sold to Honeywell during the three and nine months ended September 30, 2016 were $3,157 and $5,842, respectively, and during the three and nine months ended September 30, 2015 were $1,100 and $7,158, respectively. Purchases from Honeywell during the three and nine months ended September 30, 2016 were $1,041 and $3,299, respectively, and during the three and nine months ended September 30, 2015 were $1,107 and $3,375, respectively. The total net effect of the settlement of these intercompany transactions is reflected in the Consolidated Statements of Cash Flows as a financing activity and in the Consolidated Balance Sheets as Invested equity. While we were owned by Honeywell, it used a centralized approach to cash management and financing of operations. Prior to consummation of the Spin-Off, the Business’s cash was transferred to Honeywell daily and Honeywell funded the Business’s operating and investing activities as needed. Net transfers to and from Honeywell are included within Invested equity on the Consolidated Balance Sheets. The components of the net transfers to and from Honeywell as of September 30, 2016 and 2015 are as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cash pooling and general financing activities $ (24,947 ) $ (23,404 ) $ (73,534 ) $ (60,292 ) Distribution to Honeywell in connection with the Spin-Off (269,347 ) — (269,347 ) — Net contribution of assets and liabilities upon Spin-Off (22,163 ) — (22,163 ) — Sales to Honeywell (3,274 ) (2,330 ) (5,955 ) (8,443 ) Purchases from Honeywell 1,041 1,107 3,299 3,375 Corporate allocations 10,470 12,387 31,877 36,458 Income tax expense 11,342 11,684 36,712 27,722 Net increase/(decrease) in invested equity $ (296,878 ) $ (556 ) $ (299,111 ) $ (1,180 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 4. Income Taxes Three Months Ended Nine Months Ended 2016 2015 2016 2015 Tax expense $ 11,342 $ 11,684 $ 36,712 $ 27,722 Effective tax rate 40.8 % 36.4 % 38.4 % 36.4 % The Company’s effective tax rate for the three and nine months ended September 30, 2016 was higher compared to the U.S. federal statutory rate due primarily to state taxes and, to a lesser extent, losses incurred in foreign jurisdictions with rates lower than the U.S. federal statutory rate, partially offset by the federal tax credit for research activities. The domestic manufacturing credit lowered the Company’s effective tax rate for the nine months ended September 30, 2016. The benefit from the domestic manufacturing credit was lower for the three months ended September 30, 2016 due to lower estimated taxable income for the full year 2016 upon which such deductions are calculated, which had the effect of increasing the Company’s tax provision for the three months ended September 30, 2016. For the nine months ended September 30, 2016 and 2015, there were no unrecognized tax benefits recorded by the Company. Although there are no unrecognized income tax benefits, when applicable, the Company’s policy is to report interest expense related to unrecognized income tax benefits in the income tax provision. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 5. Earnings Per Share Basic earnings per share for AdvanSix’s Common Stock is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share for the Company’s Common Stock is calculated similarly, except that the calculation includes the dilutive effect of the assumed issuance of shares issuable under our equity-based compensation plans. On October 1, 2016, the date of consummation of the Spin-Off, 30,482,966 shares of the Company’s Common Stock were distributed to Honeywell shareholders of record as of September 16, 2016. This share amount is being utilized for the calculation of basic earnings per share for all periods presented as no Common Stock was outstanding prior to the date of the Spin-Off. On October 3, 2016, the Company issued 819,723 time-based restricted stock units in connection with the Spin-Off. These restricted stock units were not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2016. |
Accounts and Other Receivables
Accounts and Other Receivables - Net | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. Accounts and Other Receivables - Net September 30, December 31, 2016 2015 Accounts receivables $ 135,189 $ 129,402 Other 16,624 1,018 151,813 130,420 Less – allowance for doubtful accounts (3,230 ) (2,875 ) Total accounts and other receivables – net $ 148,583 $ 127,545 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 7. Inventories September 30, December 31, 2016 2015 Raw materials $ 53,153 $ 75,666 Work in progress 47,380 56,025 Finished goods 39,130 35,508 Spares and other 23,384 21,528 163,047 188,727 Reduction to LIFO cost basis (26,397 ) (38,496 ) Total inventories $ 136,650 $ 150,231 |
Property, Plant, Equipment-Net
Property, Plant, Equipment-Net | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 8. Property, Plant, Equipment—Net September 30, December 31, 2016 2015 Land and improvements $ 6,396 $ 6,599 Machinery and equipment 1,076,915 1,102,087 Buildings and improvements 153,471 152,765 Construction in progress 79,231 74,544 1,316,013 1,335,995 Less—accumulated depreciation (764,435 ) (808,453 ) Total property, plant and equipment, net $ 551,578 $ 527,542 Depreciation expense was $10,010 and $29,230 for the three and nine months ended September 30, 2016, respectively, and $7,874 and $26,936 for the three and nine months ended September 30, 2015, respectively. |
Postretirement Benefit Obligati
Postretirement Benefit Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 9. Postretirement Benefit Obligations Prior to the Spin-Off, certain of our eligible hourly and salaried employees participated in defined benefit pension plans sponsored by Honeywell. As of the date of separation from Honeywell, these employees’ entitlement to benefits in Honeywell’s plans was frozen and they will accrue no further benefits in Honeywell’s plans. Honeywell has retained the liability for benefits payable to eligible employees, which are based on age, years of service and average pay upon retirement. Upon consummation of the Spin-Off, AdvanSix employees who were participants in a Honeywell defined benefit pension plan became participants in the AdvanSix defined benefit pension plan (“AdvanSix Retirement Earnings Plan”). The AdvanSix Retirement Earnings Plan will initially have the same formulas as the Honeywell defined benefit pension plan. Moreover, vesting service, benefit accrual service and compensation credited under the Honeywell defined benefit pension plan will apply to determine pension benefits under the AdvanSix Retirement Earnings Plan. However, benefits earned under the AdvanSix Retirement Earnings Plan shall be reduced by the value of benefits accrued under the Honeywell plans. It is the Company’s intention to finalize a new pension plan in the fourth quarter of 2016 and ensure that pension benefits for AdvanSix employees who were participants in Honeywell’s plans are not adversely affected by the Spin-Off. As the plan liabilities of our employees accrued prior to the Spin-Off remained at Honeywell, we did not record an asset or liability to recognize the funded status of these existing plans in our historical Consolidated Financial Statements. The pension expense related to the participation of our employees in the existing Honeywell plans was $1,717 and $5,151 for the three and nine months ended September 30, 2016, respectively, and $2,554 and $7,662 for the three and nine months ended September 30, 2015, respectively. These costs are reported in Costs of goods sold and in Selling, general and administrative expenses, depending on the functions of the employees to whom the pension costs relate. As of the completion of the Spin-Off, we assumed unfunded pension liabilities of approximately $34.9 million for estimated future payments to eligible AdvanSix employees under the defined benefit pension plan that we intend to sponsor. These liabilities were valued using actuarial assumptions consistent with the methodologies that would be utilized under the Honeywell defined benefit plan. The significant assumptions utilized were a discount rate of 3.93% and an expected weighted average annual rate of compensation increase, including inflation, of 4.5%. Additional details around the pension accounting impacts and required pension disclosures will be made in our Annual Report on Form 10-K for the year ended December 31, 2016. |
Long-term Debt and Credit Arran
Long-term Debt and Credit Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Long-term Debt [Text Block] | 10. Long-term Debt and Credit Arrangements The Company’s debt at September 30, 2016 consisted of the following: September 30, 2016 Total term loan outstanding $ 268,230 Amounts outstanding under the Revolving Credit Facility 40,000 Total outstanding indebtedness 308,230 Less: amounts due within one year — Total long term debt due after one year $ 308,230 At September 30, 2016, the Company assessed the amount recorded under the Term Loan (defined below) and the Revolving Credit Facility (defined below) and determined that such amounts approximated fair value. The fair values of the debt are based on quoted inactive market prices and are therefore classified as Level 2 within the valuation hierarchy. The Term Loan is presented net of deferred costs of issuance, which are amortized using the effective interest method over the term of the Term Loan. Gross deferred issuance costs at the inception of the Term Loan were $1,770 and as of September 30, 2016 there were $1,770 of unamortized deferred issuance costs. Scheduled principal repayments under the Term Loan subsequent to September 30, 2016 are as follows: Amount 2016 (remaining) $ — 2017 3,375 2018 16,875 2019 27,000 2020 27,000 Thereafter 195,750 $ 270,000 Credit Agreement On September 30, 2016, in connection with the consummation of the Spin-Off, the Company as the borrower, entered into a Credit Agreement with Bank of America, as administrative agent (the “Credit Agreement”). The Credit Agreement consists of a $270 million term loan (the “Term Loan”) and a $155 million revolving loan facility (the “Revolving Credit Facility”). The Revolving Credit Facility includes a $25 million letter-of-credit sub-facility and a $20 million Swing-Line Loan sub-facility, issuances against which reduce the available capacity for borrowing. As of September 30, 2016, the Company has issued $2,095 of letters of credit, against which no funds have been drawn, and has made no borrowings against the Swing-Line Loan. The unutilized portion of the Revolving Credit Facility is subject to an annual commitment fee of 0.25% to 0.40% depending on the Company’s consolidated leverage ratio. The Term Loan and the Revolving Credit Facility both have a scheduled maturity date of September 30, 2021. The interest rates on borrowings under the facilities are based on, at the option of the Company, either: (a) the London Interbank Offered Rate (“LIBOR”), plus a margin of 2.25% to 3.00% depending on the Company’s consolidated leverage ratio, or (b) the higher of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America’s “prime rate”, and (iii) LIBOR plus 1.0%, plus a margin of 1.25% to 2.00% depending on the Company’s consolidated leverage ratio. The proceeds of the Term Loan, net of adjustments for certain working capital and other items, were used to fund a cash distribution to Honeywell in connection with the Spin-Off. Amounts available under the Revolving Credit Facility may be used for working capital, general corporate purposes, and other uses, all as more fully set forth in the Credit Agreement. The Company incurred approximately $1,770 in debt issuance costs related to the Term Loan and $1,015 in costs related to the Revolving Credit Facility. The debt issuance costs associated with the Term Loan were recorded as a reduction of the principal balance of the debt, and the Revolving Credit Facility costs were capitalized in Other assets. All issuance costs will be accreted through interest expense for the duration of each respective debt facility. The accretion in interest expense during the three months ended September 30, 2016 was $0. The obligations under the Credit Agreement are secured by liens on substantially all of the assets of AdvanSix Inc. The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, make capital expenditures, merge or consolidate with others or dispose of assets. The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3:00 to 1:00 and to maintain a Consolidated Leverage Ratio of (i) 3:00 to 1:00 or less for the fiscal quarter ending September 30, 2016, through and including the fiscal quarter ending March 31, 2018, (ii) 2:75 to 1:00 or less for the fiscal quarter ending June 30, 2018, through and including the fiscal quarter ending March 31, 2019, and (iii) 2:50 to 1:00 or less for the fiscal quarter ending June 30, 2019, and each fiscal quarter thereafter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Credit Agreement. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measures | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | 11. Financial Instruments and Fair Value Measures The FASB’s accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB’s guidance classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth the Business’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Liabilities: Forward Commodity Contracts $ — $ 6,481 The forward commodity contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments were classified within level 2 of the fair value hierarchy. The carrying value of accounts receivables and payables contained in the Consolidated Balance Sheets approximates fair value. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 12. Contingencies The Business is subject to a number of lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising out of the conduct of the Business or other third parties in the normal and ordinary course of business, including matters relating to commercial transactions. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Business continually assesses the likelihood of Given the uncertainty inherent in such lawsuits, investigations and disputes, the Business does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering the Business’s past experience and existing accruals, the Business does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Business’s consolidated financial position, results of operations or cash flows. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Business to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Business’s consolidated results of operations or operating cash flows in the periods recognized or paid. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation These interim unaudited Consolidated Financial Statements should be read in conjunction with the combined financial statements and related notes for the year ended December 31, 2015, which appear in the Form 10. The unaudited results for interim periods do not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements and are not necessarily indicative of results for the full year or any subsequent period. In the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. We report our quarterly financial information using a calendar convention; prior to the Spin-Off, the first, second and third quarters were consistently reported as ending on March 31, June 30 and September 30 in the financial statements of Honeywell; subsequent to the Spin-Off we intend to continue following such convention. It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Prior to the Spin-Off, the effects of this practice were generally not significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide appropriate disclosures. Our actual closing dates for the three and nine months reporting periods ending September 30, 2016 and September 30, 2015 were October 1, 2016 and September 26, 2015, respectively. Prior to the separation, these Consolidated Financial Statements were derived from the consolidated financial statements and accounting records of Honeywell. These Consolidated Financial Statements reflect the consolidated historical results of operations, financial position and cash flows of AdvanSix as they were historically managed in conformity with GAAP. All intracompany transactions have been eliminated. As described in Note 3, all significant transactions between the Business and Honeywell prior to separation have been included in these Consolidated Financial Statements and are considered to be effectively settled for cash at the time the transaction is recorded. The total net effect of the settlement of these pre separation transactions is reflected in the Consolidated Statements of Cash Flows as a financing activity and in the Consolidated Balance Sheets as Invested equity. Prior to the Spin-Off, Honeywell provided certain services, such as legal, accounting, information technology, human resources and other infrastructure support, on behalf of the Business. The cost of these services has been allocated to the Business on a direct usage basis when identifiable, with the remainder allocated on the basis of revenues, headcount or other relevant measures. The Business and Honeywell consider these allocations to be a reasonable reflection of the benefits received by the Business. However, the financial information presented in these Consolidated Financial Statements may not reflect the financial position, operating results and cash flows of the Business had the Business been a separate stand-alone entity during the periods presented. Actual costs that would have been incurred if the Business had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. Both we and Honeywell consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by the Business during the periods presented. After the Spin-Off, a number of the above services will continue under a transition service agreement with Honeywell, which we will expense as incurred based on the contractual pricing terms. |
Organization, Operations and 20
Organization, Operations and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Intermediate Material Sales Percentages | Each of these product lines represented the following approximate percentage of our sales: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Nylon Resins 29% 28% 29% 27% Caprolactam 16% 18% 16% 18% Ammonium Sulfate Fertilizers 22% 24% 24% 25% Chemical Intermediates 33% 30% 31% 30% |
Related Party Transactions wi21
Related Party Transactions with Honeywell (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The components of the net transfers to and from Honeywell as of September 30, 2016 and 2015 are as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Cash pooling and general financing activities $ (24,947 ) $ (23,404 ) $ (73,534 ) $ (60,292 ) Distribution to Honeywell in connection with the Spin-Off (269,347 ) — (269,347 ) — Net contribution of assets and liabilities upon Spin-Off (22,163 ) — (22,163 ) — Sales to Honeywell (3,274 ) (2,330 ) (5,955 ) (8,443 ) Purchases from Honeywell 1,041 1,107 3,299 3,375 Corporate allocations 10,470 12,387 31,877 36,458 Income tax expense 11,342 11,684 36,712 27,722 Net increase/(decrease) in invested equity $ (296,878 ) $ (556 ) $ (299,111 ) $ (1,180 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Tax expense $ 11,342 $ 11,684 $ 36,712 $ 27,722 Effective tax rate 40.8 % 36.4 % 38.4 % 36.4 % |
Accounts and Other Receivable23
Accounts and Other Receivables - Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, 2016 2015 Accounts receivables $ 135,189 $ 129,402 Other 16,624 1,018 151,813 130,420 Less – allowance for doubtful accounts (3,230 ) (2,875 ) Total accounts and other receivables – net $ 148,583 $ 127,545 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2016 2015 Raw materials $ 53,153 $ 75,666 Work in progress 47,380 56,025 Finished goods 39,130 35,508 Spares and other 23,384 21,528 163,047 188,727 Reduction to LIFO cost basis (26,397 ) (38,496 ) Total inventories $ 136,650 $ 150,231 |
Property, Plant, Equipment-Net
Property, Plant, Equipment-Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | September 30, December 31, 2016 2015 Land and improvements $ 6,396 $ 6,599 Machinery and equipment 1,076,915 1,102,087 Buildings and improvements 153,471 152,765 Construction in progress 79,231 74,544 1,316,013 1,335,995 Less—accumulated depreciation (764,435 ) (808,453 ) Total property, plant and equipment, net $ 551,578 $ 527,542 |
Long-term Debt and Credit Arr26
Long-term Debt and Credit Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Text Block [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s debt at September 30, 2016 consisted of the following: September 30, 2016 Total term loan outstanding $ 268,230 Amounts outstanding under the Revolving Credit Facility 40,000 Total outstanding indebtedness 308,230 Less: amounts due within one year — Total long term debt due after one year $ 308,230 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Scheduled principal repayments under the Term Loan subsequent to September 30, 2016 are as follows: Amount 2016 (remaining) $ — 2017 3,375 2018 16,875 2019 27,000 2020 27,000 Thereafter 195,750 $ 270,000 |
Financial Instruments and Fai27
Financial Instruments and Fair Value Measures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table sets forth the Business’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Liabilities: Forward Commodity Contracts $ — $ 6,481 |
Organization, Operations and 28
Organization, Operations and Basis of Presentation (Details) | Oct. 01, 2016$ / shares | Sep. 30, 2016$ / shares |
Accounting Policies [Abstract] | ||
Number of Real Estate Properties | 3 | |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Conversion of Stock, New Issuance | Each Honeywell stockholder who held their shares through theDistribution Date received one share of AdvanSix common stock for every 25 shares of Honeywell common stock held at the close ofbusiness on the record date of September 16, 2016. |
Organization, Operations and 29
Organization, Operations and Basis of Presentation (Details) - Schedule of Intermediate Material Sales Percentages | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Nylon Resins [Member] | ||||
Organization, Operations and Basis of Presentation (Details) - Schedule of Intermediate Material Sales Percentages [Line Items] | ||||
Chemical Intermediates | 29.00% | 28.00% | 29.00% | 27.00% |
Caprolactam [Member] | ||||
Organization, Operations and Basis of Presentation (Details) - Schedule of Intermediate Material Sales Percentages [Line Items] | ||||
Chemical Intermediates | 16.00% | 18.00% | 16.00% | 18.00% |
Ammonium Sulfate Fertilizers [Member] | ||||
Organization, Operations and Basis of Presentation (Details) - Schedule of Intermediate Material Sales Percentages [Line Items] | ||||
Chemical Intermediates | 22.00% | 24.00% | 24.00% | 25.00% |
Chemical Intermediates [Member] | ||||
Organization, Operations and Basis of Presentation (Details) - Schedule of Intermediate Material Sales Percentages [Line Items] | ||||
Chemical Intermediates | 33.00% | 30.00% | 31.00% | 30.00% |
Related Party Transactions wi30
Related Party Transactions with Honeywell (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transactions with Honeywell (Details) [Line Items] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 10,470 | $ 12,387 | $ 31,877 | $ 36,458 |
Honeywell [Member] | ||||
Related Party Transactions with Honeywell (Details) [Line Items] | ||||
Revenue from Related Parties | 3,274 | 2,330 | 5,955 | 8,443 |
Related Party Costs | 3,157 | 1,100 | 5,842 | 7,158 |
Related Party Transaction, Purchases from Related Party | 1,041 | 1,107 | 3,299 | 3,375 |
Sold at Zero Margin [Member] | Honeywell [Member] | ||||
Related Party Transactions with Honeywell (Details) [Line Items] | ||||
Revenue from Related Parties | $ 3,080 | $ 1,027 | $ 5,682 | $ 6,961 |
Related Party Transactions wi31
Related Party Transactions with Honeywell (Details) - Schedule of Components of Net Transfers to and from Honeywell - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Related Party Transaction | $ (296,878) | $ (556) | $ (299,111) | $ (1,180) |
Cash pooling and general financing activities [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | (24,947) | (23,404) | (73,534) | (60,292) |
Distribution to Honeywell in connection with the Spin-Off [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | (269,347) | (269,347) | ||
Net contribution of assets and liabilities upon Spin-Off [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | (22,163) | (22,163) | ||
Sales to Honeywell [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | (3,274) | (2,330) | (5,955) | (8,443) |
Purchases from Honeywell [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | 1,041 | 1,107 | 3,299 | 3,375 |
Corporate allocations [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | 10,470 | 12,387 | 31,877 | 36,458 |
Income tax expense [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction | $ 11,342 | $ 11,684 | $ 36,712 | $ 27,722 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 0 | $ 0 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ||||
Tax expense | $ 11,342 | $ 11,684 | $ 36,712 | $ 27,722 |
Effective tax rate | 40.80% | 36.40% | 38.40% | 36.40% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | Oct. 03, 2016 | Oct. 01, 2016 | Sep. 30, 2016 |
Earnings Per Share [Abstract] | |||
Common Stock, Shares, Issued | 30,482,966 | 30,482,966 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 819,723 |
Accounts and Other Receivable35
Accounts and Other Receivables - Net (Details) - Schedule of Accounts and Other Receivables - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Accounts and Other Receivables [Abstract] | ||
Accounts receivables | $ 135,189 | $ 129,402 |
Other | 16,624 | 1,018 |
151,813 | 130,420 | |
Less – allowance for doubtful accounts | (3,230) | (2,875) |
Total accounts and other receivables – net | $ 148,583 | $ 127,545 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventory - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Inventory [Abstract] | ||
Raw materials | $ 53,153 | $ 75,666 |
Work in progress | 47,380 | 56,025 |
Finished goods | 39,130 | 35,508 |
Spares and other | 23,384 | 21,528 |
163,047 | 188,727 | |
Reduction to LIFO cost basis | (26,397) | (38,496) |
Total inventories | $ 136,650 | $ 150,231 |
Property, Plant, Equipment-Ne37
Property, Plant, Equipment-Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment | $ 10,010 | $ 7,874 | $ 29,230 | $ 26,936 |
Property, Plant, Equipment-Ne38
Property, Plant, Equipment-Net (Details) - Schedule of Property, Plant, and Equipment - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | $ 1,316,013 | $ 1,335,995 |
Less—accumulated depreciation | (764,435) | (808,453) |
Total property, plant and equipment, net | 551,578 | 527,542 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | 6,396 | 6,599 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | 1,076,915 | 1,102,087 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | 153,471 | 152,765 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, and Equipment, Gross | $ 79,231 | $ 74,544 |
Postretirement Benefit Obliga39
Postretirement Benefit Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Pension Expense | $ 1,717 | $ 2,554 | $ 5,151 | $ 7,662 |
Defined Benefit Pension Plan, Liabilities | $ 34,900 | $ 34,900 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.93% | 3.93% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.50% | 4.50% |
Long-term Debt and Credit Arr40
Long-term Debt and Credit Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended |
Jun. 30, 2019 | Sep. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | |
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 2,095 | |||
Debt Instrument, Interest Rate Terms | The interest rates on borrowings under the facilities are based on, at the option of the Company, either: (a) theLondon Interbank Offered Rate (“LIBOR”), plus a margin of 2.25% to 3.00% depending on the Company’sconsolidated leverage ratio, or (b) the higher of (i) the Federal Funds Rate plus 0.5%, (ii) Bank of America’s“prime rate”, and (iii) LIBOR plus 1.0%, plus a margin of 1.25% to 2.00% depending on the Company’sconsolidated leverage ratio. | |||
Interest Expense, Debt | $ 0 | |||
Consolidated Interest Coverage Ratio | The Credit Agreement also contains financial covenants that require the Company to maintaina Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3:00 to 1:00 and to maintain a ConsolidatedLeverage Ratio of (i) 3:00 to 1:00 or less for the fiscal quarter ending September 30, 2016, through and including the fiscal quarterending March 31, 2018, (ii) 2:75 to 1:00 or less for the fiscal quarter ending June 30, 2018, through and including the fiscalquarter ending March 31, 2019, and (iii) 2:50 to 1:00 or less for the fiscal quarter ending June 30, 2019, and each fiscal quarterthereafter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). | 3:00 to 1:00 | ||
Consolidated Leverage Ratio | 2:50 to 1:00 | 2:75 to 1:00 | 3:00 to 1:00 | |
Revolving Credit Facility [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 30, 2021 | |||
Term Loan [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Maturity Date | Sep. 30, 2021 | |||
Term Loan [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Issuance Costs, Gross | $ 1,770 | |||
Debt Issuance Costs, Gross, Current | 1,770 | |||
Debt Instrument, Face Amount | 270,000 | |||
Revolving Credit Facility [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Issuance Costs, Gross | 1,015 | |||
Debt Instrument, Face Amount | $ 155,000 | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Option B [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member] | Option B [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.50% | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Option A [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | |||
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Option B [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | |||
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Option A [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | |||
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Option B [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||
Letter of Credit [Member] | Revolving Credit Facility [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 25,000 | |||
Swing Line Loan [Member] | Revolving Credit Facility [Member] | ||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||
Debt Instrument, Face Amount | $ 20,000 |
Long-term Debt and Credit Arr41
Long-term Debt and Credit Arrangements (Details) - Schedule of Long-Term Debt $ in Thousands | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Loan Outstanding | $ 308,230 |
Less: amounts due within one year | |
Total long term debt due after one year | 308,230 |
Long-term Debt [Member] | |
Debt Instrument [Line Items] | |
Loan Outstanding | 268,230 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Loan Outstanding | $ 40,000 |
Long-term Debt and Credit Arr42
Long-term Debt and Credit Arrangements (Details) - Schedule of Maturities of Long-Term Debt $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Schedule of Maturities of Long-Term Debt [Abstract] | |
2016 (remaining) | |
2,017 | 3,375 |
2,018 | 16,875 |
2,019 | 27,000 |
2,020 | 27,000 |
Thereafter | 195,750 |
$ 270,000 |
Financial Instruments and Fai43
Financial Instruments and Fair Value Measures (Details) - Schedule of Assets and Liabilities at Fair Value Measured on a Recurring Basis $ in Thousands | Dec. 31, 2015USD ($) |
Forward Contracts [Member] | |
Liabilities: | |
Forward Commodity Contracts | $ 6,481 |