Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-37774 | |
Entity Registrant Name | AdvanSix Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-2525089 | |
Entity Address, Address Line One | 300 Kimball Drive | |
Entity Address, Address Line Two | Suite 101 | |
Entity Address, City or Town | Parsippany | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07054 | |
City Area Code | 973 | |
Local Phone Number | 526-1800 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ASIX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,004,331 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001673985 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 302,713 | $ 314,895 |
Costs, expenses and other: | ||
Costs of goods sold | 272,008 | 266,880 |
Selling, general and administrative expenses | 16,740 | 19,413 |
Other non-operating expense (income), net | 1,725 | 1,604 |
Total costs, expenses and other | 290,473 | 287,897 |
Income before taxes | 12,240 | 26,998 |
Income tax expense | 3,664 | 6,824 |
Net income | $ 8,576 | $ 20,174 |
Earnings per common share | ||
Basic (in dollars per share) | $ 0.31 | $ 0.70 |
Diluted (in dollars per share) | $ 0.31 | $ 0.68 |
Weighted average common shares outstanding | ||
Basic (in shares) | 27,942,486 | 28,820,603 |
Diluted (in shares) | 28,050,955 | 29,786,957 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 8,576 | $ 20,174 |
Foreign exchange translation adjustment | (57) | (1) |
Cash-flow hedges | (1,836) | (192) |
Other comprehensive income (loss), net of tax | (1,893) | (193) |
Comprehensive income | $ 6,683 | $ 19,981 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 30,754 | $ 7,050 |
Accounts and other receivables – net | 113,302 | 104,613 |
Inventories – net | 158,066 | 171,710 |
Taxes receivable | 9,701 | 2,047 |
Other current assets | 4,641 | 5,117 |
Total current assets | 316,464 | 290,537 |
Property, plant and equipment – net | 766,355 | 755,881 |
Operating lease right-of-use assets | 127,501 | 135,985 |
Goodwill | 15,005 | 15,005 |
Other assets | 37,987 | 38,561 |
Total assets | 1,263,312 | 1,235,969 |
Current liabilities: | ||
Accounts payable | 185,938 | 205,911 |
Accrued liabilities | 31,311 | 28,114 |
Operating lease liabilities – short-term | 38,361 | 38,005 |
Deferred income and customer advances | 13,070 | 19,696 |
Total current liabilities | 268,680 | 291,726 |
Deferred income taxes | 120,663 | 110,071 |
Operating lease liabilities – long-term | 89,759 | 98,347 |
Line of credit – long-term | 337,000 | 297,000 |
Postretirement benefit obligations | 32,734 | 32,410 |
Other liabilities | 6,640 | 5,537 |
Total liabilities | 855,476 | 835,091 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01; 200,000,000 shares authorized; 31,578,393 shares issued and 27,996,115 outstanding at March 31, 2020; 31,423,898 shares issued and 27,914,777 outstanding at December 31, 2019 | 316 | 314 |
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 0 | 0 |
Treasury stock at par (3,582,278 shares at March 31, 2020; 3,509,121 shares at December 31, 2019) | (36) | (35) |
Additional paid-in capital | 181,158 | 180,884 |
Retained earnings | 237,742 | 229,166 |
Accumulated other comprehensive loss | (11,344) | (9,451) |
Total stockholders' equity | 407,836 | 400,878 |
Total liabilities and stockholders' equity | $ 1,263,312 | $ 1,235,969 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 31,578,393 | 31,423,898 |
Common stock, shares outstanding (in shares) | 27,996,115 | 27,914,777 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 3,582,278 | 3,509,121 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 8,576 | $ 20,174 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 14,432 | 13,915 |
Loss on disposal of assets | 35 | 415 |
Deferred income taxes | 11,204 | 3,747 |
Stock based compensation | 1,198 | 2,762 |
Accretion of deferred financing fees | 130 | 107 |
Changes in assets and liabilities: | ||
Accounts and other receivables | (8,746) | 42,621 |
Inventories | 13,644 | (3,416) |
Taxes receivable | (7,654) | 397 |
Accounts payable | (9,752) | (30,674) |
Accrued liabilities | 2,912 | (7,232) |
Deferred income and customer advances | (6,626) | (1,862) |
Other assets and liabilities | 366 | 1,122 |
Net cash provided by operating activities | 19,719 | 42,076 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (34,100) | (39,512) |
Other investing activities | (385) | (587) |
Net cash used for investing activities | (34,485) | (40,099) |
Cash flows from financing activities: | ||
Borrowings from line of credit | 133,500 | 85,500 |
Payments of line of credit | (93,500) | (65,500) |
Payment of line of credit facility fees | (425) | 0 |
Principal payments of finance leases | (182) | (145) |
Purchase of treasury stock | (925) | (23,853) |
Issuance of common stock | 2 | 16 |
Net cash provided by (used for) financing activities | 38,470 | (3,982) |
Net change in cash and cash equivalents | 23,704 | (2,005) |
Cash and cash equivalents at beginning of period | 7,050 | 9,808 |
Cash and cash equivalents at the end of period | 30,754 | 7,803 |
Supplemental non-cash investing activities: | ||
Capital expenditures included in accounts payable | 11,553 | 14,039 |
Supplemental cash activities: | ||
Cash paid for interest | 730 | 1,040 |
Cash paid for income taxes | $ 109 | $ 21 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2018 | 30,555,715 | |||||
Beginning balance at Dec. 31, 2018 | $ 420,338 | $ 306 | $ 234,699 | $ 187,819 | $ (12) | $ (2,474) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 20,174 | 20,174 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | (1) | (1) | ||||
Cash-flow Hedges | (192) | (192) | ||||
Pension obligation adjustments | 0 | |||||
Other comprehensive income (loss), net of tax | (193) | (193) | ||||
Issuance of common stock (in shares) | 22,497 | |||||
Issuance of common stock | 16 | 16 | ||||
Purchase of treasury shares | (23,853) | (23,845) | (8) | |||
Stock-based compensation | 2,762 | 2,762 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 30,578,212 | |||||
Ending balance at Mar. 31, 2019 | $ 419,244 | $ 306 | 213,632 | 207,993 | (20) | (2,667) |
Beginning balance (in shares) at Dec. 31, 2019 | 27,914,777 | 31,423,898 | ||||
Beginning balance at Dec. 31, 2019 | $ 400,878 | $ 314 | 180,884 | 229,166 | (35) | (9,451) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 8,576 | 8,576 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | (57) | (57) | ||||
Cash-flow Hedges | (1,836) | (1,836) | ||||
Pension obligation adjustments | 0 | |||||
Other comprehensive income (loss), net of tax | (1,893) | (1,893) | ||||
Issuance of common stock (in shares) | 154,495 | |||||
Issuance of common stock | 2 | $ 2 | ||||
Purchase of treasury shares | (925) | (924) | (1) | |||
Stock-based compensation | $ 1,198 | 1,198 | ||||
Ending balance (in shares) at Mar. 31, 2020 | 27,996,115 | 31,578,393 | ||||
Ending balance at Mar. 31, 2020 | $ 407,836 | $ 316 | $ 181,158 | $ 237,742 | $ (36) | $ (11,344) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock repurchased during period (in shares) | 3,582,278 | |
Treasury Stock | ||
Stock repurchased during period (in shares) | 73,157 | 793,754 |
Organization, Operations and Ba
Organization, Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization, Operations and Basis of Presentation | Organization, Operations and Basis of Presentation Description of Business AdvanSix Inc. (“AdvanSix”, 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 fibers, filaments, engineered plastics and films that, in turn, are used in such end-products as carpets, automotive and electronic components, sports apparel, food packaging and other industrial applications. 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 our integrated manufacturing value chain including caprolactam, ammonium sulfate fertilizers, acetone and other chemical intermediates. COVID-19 In March 2020, the World Health Organization categorized the novel coronavirus ("COVID-19") as a global pandemic with numerous countries around the world declaring national emergencies, including the United States. Since early 2020, COVID-19 has spread rapidly, with most countries and territories worldwide with confirmed cases. The spread has resulted in authorities implementing numerous measures to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders and business shutdowns. The pandemic and these containment measures have had, and are expected to continue to have, a substantial negative impact on businesses around the world and on global, regional and national economies including disruptions to supply chains, reduced demand and production across most industries, declines and volatility within global financial markets and decreased workforces causing increased unemployment. The U.S. Department of Homeland Security has designated our industry as "essential critical infrastructure" during the response to COVID-19 for both public health and safety as well as community well-being and we are executing our business continuity plans to maintain operations and meet customer demand. The Company continues to evaluate the potential impact of The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted on March 27, 2020. The CARES Act, and other government stimulus programs are intended to provide economic relief resulting from the COVID-19 pandemic and includes, but is not limited to, provisions for taxes, employment related costs, deferral of pension payments and options for liquidity. The Company’s Condensed Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenue and expenses during the periods presented. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s first quarter 2020 results of operations, however, it may have a material impact in the future on the Company's results of operations, financial position and liquidity. Basis of Presentation The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of March 31, 2020, and its results of operations for the three months ended March 31, 2020 and 2019 and cash flows for the three months ended March 31, 2020 and 2019. The year-end Condensed Consolidated Balance Sheet data were derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the "2019 Form 10-K"). All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified for consistency with the current period presentation. 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. Historically, 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 the appropriate disclosures. Our actual closing dates for the three months ended March 31, 2020 and 2019 wer e March 28, 2020 and March 30, 2019, respe ctively. Liabilities to creditors to whom we have issued checks that remained outstanding at March 31, 2020 and December 31, 2019 aggregated $0.3 million and $1.7 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets. On May 4, 2018, the Company announced that its Board of Directors (the “Board”) authorized a share repurchase program of up to $75 million of the Company’s common stock. On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock , which was in addition to the remaining capacity available under the May 2018 share repurchase program. Repurchases may be made from time to time on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital. As of March 31, 2020, the Company had repurchased 3,582,278 shares of common stock, including 492,516 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $101.6 million at a weighted average market price of $28.36 per share. As of March 31, 2020, $59.6 million remained available for share repurchases under the current authorization. During the period April 1, 2020 through April 24, 2020, no additional shares were repurchased under the currently authorized repurchase program. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed 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 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments of ASU No. 2020-04 are effective for companies as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The Company is evaluating the impact that the amendments of this standard would have on the Company's consolidated financial position or results of operations upon adoption. On December 18, 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes the exception to the general principles in ASC 740, Income Taxes, associated with the incremental approach for intra-period tax allocation, accounting for basis differences when there are ownership changes in foreign investments and interim-period income tax accounting for year-to-date losses that exceed anticipated losses. In addition, the ASU improves the application of income tax related guidance and simplifies U.S. GAAP when accounting for franchise taxes that are partially based on income, transactions with government resulting in a step-up in tax basis goodwill, separate financial statements of legal entities not subject to tax, and enacted changes in tax laws in interim periods. Different transition approaches, retrospective, modified retrospective, or prospective, will apply to each income tax simplification provision. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments in this update is permitted, including adoption in any interim period. The Company is evaluating these changes and does not anticipate any material impact on the Company’s consolidated financial position or results of operations upon adoption. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of ASU No. 2018-13 are effective for companies for fiscal years beginning after December 15, 2019. The Company adopted ASU 2018-13 effective January 1, 2020, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates step 2, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill, from the goodwill impairment test. The amendments of ASU No. 2017-04 are effective for companies for fiscal years beginning after December 15, 2019 and requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company adopted ASU 2017-04 effective January 1, 2020, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments of ASU No. 2016-13 are effective for companies for fiscal years beginning after December 15, 2019 and modify existing guidance related to the measurement of credit losses on financial instruments, including trade and loan receivables. The new guidance requires impairments to be measured based on expected losses over the life of the asset rather than incurred losses. The Company adopted ASU 2016-13 effective January 1, 2020, using a modified retrospective approach, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition We serve approximately 400 customers annually in more than 40 countries and across a wide variety of industries. For the three months ended March 31, 2020 and 2019, the Company's ten largest customers accounted for approximately 43% and 48% of total sales, respectively. We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have an average customer relationship of approximately 20 years. Our largest customer is Shaw Industries Group Inc. (“Shaw”), a significant consumer of caprolactam and Nylon 6 resin. We sell Nylon 6 resin and caprolactam to Shaw under a long-term agreement. For the three months ended March 31, 2020 and 2019, our sales to Shaw were 17% and 22%, respectively, of our total sales. Each of the Company’s product lines represented the following approximate percentage of total sales for the three months ended March 31, 2020 and 2019: Three Months Ended 2020 2019 Nylon 26% 31% Caprolactam 22% 20% Ammonium Sulfate Fertilizers 23% 21% Chemical Intermediates 29% 28% 100% 100% The Company's revenues by geographic area for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended 2020 2019 United States $ 230,443 $ 257,642 International 72,270 57,253 Total $ 302,713 $ 314,895 Deferred Income and Customer Advances The Company defers revenues when cash payments are received in advance of our performance. Customer advances relate primarily to sales from the ammonium sulfate business. Below is a roll-forward of Deferred income and customer advances for the three months ended March 31, 2020: Opening balance January 1, 2020 $ 19,696 Additions to deferred revenues 678 Less amounts recognized in revenues (7,304) Ending balance March 31, 2020 $ 13,070 The Company expects to recognize as revenue the March 31, 2020 ending balance of Deferred income and customer advances within one year or less. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of basic and diluted earnings per share ("EPS") is based on Net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively. The details of the basic and diluted EPS calculations for the three months ended March 31, 2020 and 2019 were a s follows: Three Months Ended 2020 2019 Basic Net Income $ 8,576 $ 20,174 Weighted average common shares outstanding 27,942,486 28,820,603 EPS – Basic $ 0.31 $ 0.70 Diluted Dilutive effect of equity awards and other stock-based holdings 108,469 966,354 Weighted average common shares outstanding 28,050,955 29,786,957 EPS – Diluted $ 0.31 $ 0.68 Diluted EPS is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents (which includes units allocated to the AdvanSix stock unit fund under the AdvanSix Inc. Deferred Compensation Plan) using the treasury stock method and the average market price of our common stock for the year. The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. The anti-dilutive common stock equivalents outstanding at the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended 2020 2019 Options and stock equivalents 935,402 330,823 |
Accounts and Other Receivables
Accounts and Other Receivables - Net | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts and Other Receivables - Net | Accounts and Other Receivables – Net March 31, December 31, Accounts receivables $ 113,326 $ 105,275 Other 1,838 1,661 Total accounts and other receivables 115,164 106,936 Less – allowance for doubtful accounts (1,862) (2,323) Total accounts and other receivables – net $ 113,302 $ 104,613 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories March 31, December 31, Raw materials $ 63,487 $ 63,644 Work in progress 53,014 56,065 Finished goods 50,993 58,527 Spares and other 25,984 25,035 193,478 203,271 Reduction to LIFO cost basis (35,412) (31,561) Total inventories – net $ 158,066 $ 171,710 |
Postretirement Benefit Cost
Postretirement Benefit Cost | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Postretirement Benefit Cost | Postretirement Benefit Cost The components of Net periodic benefit cost of the Company’s pension plan are as follows: Three Months Ended 2020 2019 Service cost $ 2,005 $ 1,714 Interest cost 544 521 Expected return on plan assets (524) (334) Net periodic benefit cost $ 2,025 $ 1,901 The Company made contributions to the defined benefit pension plan of $1.7 million during the three months ended March 31, 2020. The Company currently plans to make pension plan contributions during 2020 sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan in an aggregate amount of approximately $5 to $10 million and will continue to evaluate options afforded under the CARES Act with respect to the deferral of pension plan contributions for calendar year 2020. We anticipate making additional contributions in future years sufficient to satisfy pension funding requirements in those periods. The pension plan assets are invested through a master trust fund. The strategic asset allocation for the trust fund is selected by the Company's Investment Committee reflecting the results of comprehensive asset and liability modeling. The Investment Committee establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. |
Long-term Debt and Credit Agree
Long-term Debt and Credit Agreement | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Credit Agreement | Long-term Debt and Credit AgreementAt March 31, 2020, the Company assessed the amount recorded under the Revolving Credit Facility (defined below) and determined that such amounts approximate fair value. Since a floating rate interest is applied to all borrowings from our Revolving Credit Facility, the fair value of our debt closely approximates the carrying value and is therefore classified as Level 2 within the valuation hierarchy. 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 “Original Credit Agreement”). The Original Credit Agreement consisted of a $270 million term loan (the “Original Term Loan”) and a $155 million revolving loan facility (the “Original Revolving Credit Facility”). The Original Revolving Credit Facility included 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. On February 21, 2018 (the “First Amendment Date”), the Company entered into Amendment No. 1 (the “First Amendment”) to the Credit Agreement among the Company, the guarantors, the lenders party thereto and Bank of America, N.A., as administrative agent (the Original Credit Agreement, after giving effect to the First Amendment, the “First Amended and Restated Credit Agreement”). As discussed above, the credit facilities under the Original Credit Agreement consisted of a senior secured term loan in an aggregate principal amount of $270 million, of which $267 million was outstanding just prior to entering into the First Amendment, and a senior secured revolving credit facility in a principal amount of $155 million. Pursuant to the First Amendment, (i) the term loan facility under the Original Credit Agreement was terminated and the entire outstanding balance of the term loan facility (the “Term Loan”) thereunder was paid in full and (ii) the maximum aggregate principal amount of the senior secured revolving credit facility (the “Revolving Credit Facility”) was increased to $425 million. On the First Amendment Date, the Company borrowed $242 million under the Revolving Credit Facility. The proceeds of such loans, as well as cash on hand, were used to repay the outstanding Term Loan under the Original Credit Agreement. The Revolving Credit Facility under the First Amended and Restated Credit Agreement has a 5-year term with a scheduled maturity date of February 21, 2023. The First Amendment resulted in an increase in the Revolving Credit Facility to replace the Term Loan and provided increased borrowing flexibility and reduced overall borrowing costs with an approximate 50 basis point reduction in the interest rate spread. The First Amended and Restated Credit Agreement permits the Company to utilize up to $40 million of the Revolving Credit Facility for the issuance of letters of credit and up to $40 million for swing line loans. The Company has the option to incur incremental term loans and/or increase the amount of the Revolving Credit Facility in an aggregate principal amount for all such incremental term loans and increases of the Revolving Credit Facility of up to the sum of (x) $175 million plus (y) an amount such that the Company’s Consolidated Senior Secured Leverage Ratio (as defined in the First Amended and Restated Credit Agreement) would not be greater than 1.75 to 1.00, in each case, to the extent that any one or more lenders, whether or not currently party to the First Amended and Restated Credit Agreement, commits to be a lender for such amount. Borrowings under the First Amended and Restated Credit Agreement bore interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.50% to 1.50% or the sum of a Eurodollar rate plus a margin ranging from 1.50% to 2.50%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the First Amended and Restated Credit Agreement). The Company was also required to pay a commitment fee in respect of unused commitments under the Revolving Credit Facility, if any, at a rate ranging from 0.20% to 0.40% per annum depending on the Company’s Consolidated Leverage Ratio. The initial margin under the First Amended and Restated Credit Agreement was 0.75% for base rate loans and 1.75% for Eurodollar rate loans and the initial commitment fee rate was 0.25% per annum. The First Amended and Restated Credit Agreement contained 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 First Amended and Restated Credit Agreement also contained financial covenants that required the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the First Amended and Restated Credit Agreement) of not less than 3.00 to 1.00 and to maintain a Consolidated Leverage Ratio of (i) 3.50 to 1.00 or less for the fiscal quarter ending March 31, 2018, through and including the fiscal quarter ending December 31, 2019, (ii) 3.25 to 1.00 or less for the fiscal quarter ending March 31, 2020, through and including the fiscal quarter ending December 31, 2020, (iii) 3.00 to 1.00 or less for the fiscal quarter ending March 31, 2021, through and including the fiscal quarter ending December 31, 2021, and (iv) 2.75 to 1.00 or less for the fiscal quarter ending March 31, 2022 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 did not comply with the covenants in the First Amended and Restated Credit Agreement, the lenders could have, subject to customary cure rights, required the immediate payment of all amounts outstanding under the Revolving Credit Facility. The Company was compliant with all related covenants at December 31, 2019. On February 19, 2020, the Company entered into Amendment No. 2 (the “Second Amendment”) to the First Amended and Restated Credit Agreement (after giving effect to the Second Amendment, the “Second Amended and Restated Credit Agreement”). The Second Amendment amended the Consolidated Leverage Ratio financial covenant of the Credit Agreement and requires the Company to maintain a Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement) of (i) 3.50 to 1.00 or less for the fiscal quarter ended March 31, 2020, (ii) 4.50 to 1.00 or less for the fiscal quarter ending June 30, 2020, (iii) 4.25 to 1.00 or less for the fiscal quarter ending September 30, 2020, (iv) 3.50 to 1.00 or less for the fiscal quarter ending December 31, 2020, (v) 3.25 to 1.00 or less for the fiscal quarter ending March 31, 2021 through and including the fiscal quarter ending December 31, 2021, and (vi) 3.00 to 1.00 or less for the fiscal quarter ending March 31, 2022 and each fiscal quarter thereafter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). The Consolidated Interest Coverage Ratio financial covenant of the First Amended and Restated Credit Agreement was not changed and continues to require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement) of not less than 3.00 to 1.00. If the Company does not comply with the covenants in the Second Amended and Restated Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility. Borrowings under the Second Amended and Restated Credit Agreement bear interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.50% to 2.00% or the sum of a Eurodollar rate plus a margin ranging from 1.50% to 3.00%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement). The Company is also required to pay a commitment fee in respect of unused commitments under the credit facility, if any, at a rate ranging from 0.20% to 0.50% per annum depending on the Company’s Consolidated Leverage Ratio. The initial margin under the Second Amended and Restated Credit Agreement was 1.25% for base rate loans and 2.25% for Eurodollar rate loans and the applicable commitment fee rate was 0.35% per annum. In addition, the Second Amendment also amended certain administrative provisions associated with the LIBOR Successor Rate (as defined in the Second Amended and Restated Credit Agreement). The obligations under the Second Amended and Restated Credit Agreement are secured by a pledge of assets and liens on substantially all of the assets of AdvanSix. Since the start of 2020, the Company has since borrowed an incremental $133.5 million for working capital purposes under the Revolving Credit Facility and repaid $93.5 million to bring the balance under the Revolving Credit Facility to $337 million at March 31, 2020. The Company had approximately $1.0 million of letter of credit agreements outstanding under the Revolving Credit Facility at March 31, 2020, as well as an immaterial amount associated with bilateral letters of credit outside the Revolving Credit Facility. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our unaudited Condensed Consolidated Balance Sheets. Lease expense for all operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The components of lease expense were as follows: Three Months Ended March 31, 2020 Finance lease cost: Amortization of right-of-use asset $ 181 Interest on lease liabilities 15 Total finance lease cost 196 Operating lease cost 11,044 Short-term lease cost 1,873 Variable lease cost — Total lease cost $ 13,113 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,958 Operating cash flows from finance leases 16 Financing cash flows from finance leases 182 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,048 Finance leases 5 Supplemental balance sheet information related to leases was as follows: March 31, Operating Leases Operating lease right-of-use assets $ 127,501 Operating lease liabilities – short term 38,361 Operating lease liabilities – long term 89,759 Total operating lease liabilities $ 128,120 Finance Leases Property, plant and equipment – gross $ 2,068 Accumulated depreciation (842) Property, plant and equipment – net $ 1,226 Accounts payable 700 Other liabilities 543 Total finance lease liabilities $ 1,243 Weighted Average Remaining Lease Term Operating leases 9.3 years Finance leases 2.0 years Weighted Average Discount Rate Operating leases 5.77 % Finance leases 4.76 % Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 33,059 $ 562 2021 32,932 528 2022 22,814 195 2023 13,335 11 2024 11,468 8 Thereafter 61,561 — Total lease payments 175,169 1,304 Less imputed interest (47,049) (61) Total $ 128,120 $ 1,243 |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Operating lease liabilities – short-term, and Operating lease liabilities – long-term in our Condensed Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our unaudited Condensed Consolidated Balance Sheets. Lease expense for all operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The components of lease expense were as follows: Three Months Ended March 31, 2020 Finance lease cost: Amortization of right-of-use asset $ 181 Interest on lease liabilities 15 Total finance lease cost 196 Operating lease cost 11,044 Short-term lease cost 1,873 Variable lease cost — Total lease cost $ 13,113 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,958 Operating cash flows from finance leases 16 Financing cash flows from finance leases 182 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,048 Finance leases 5 Supplemental balance sheet information related to leases was as follows: March 31, Operating Leases Operating lease right-of-use assets $ 127,501 Operating lease liabilities – short term 38,361 Operating lease liabilities – long term 89,759 Total operating lease liabilities $ 128,120 Finance Leases Property, plant and equipment – gross $ 2,068 Accumulated depreciation (842) Property, plant and equipment – net $ 1,226 Accounts payable 700 Other liabilities 543 Total finance lease liabilities $ 1,243 Weighted Average Remaining Lease Term Operating leases 9.3 years Finance leases 2.0 years Weighted Average Discount Rate Operating leases 5.77 % Finance leases 4.76 % Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 33,059 $ 562 2021 32,932 528 2022 22,814 195 2023 13,335 11 2024 11,468 8 Thereafter 61,561 — Total lease payments 175,169 1,304 Less imputed interest (47,049) (61) Total $ 128,120 $ 1,243 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to a number of lawsuits, investigations and disputes, some of which involve substantial amounts claimed, arising out of the conduct of the Company or other third-parties in the normal and ordinary course of business. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on an analysis of each matter with the assistance of legal counsel and, if applicable, other experts. Given the uncertainty inherent in such lawsuits, investigations and disputes, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Company’s consolidated financial position or results of operations. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid. We assumed from Honeywell all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business, as well as all HSE liabilities associated with our three current manufacturing locations and the other locations used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The CARES Act includes various modifications to current tax law and is intended to provide economic relief in response to the COVID-19 pandemic. One provision included in the CARES Act allows for a five-year carryback of Federal net operating losses (NOLs) generated in tax years beginning in 2018, 2019 and 2020. At this point, the Company anticipates filing its 2019 federal income tax return with a net operating loss, on a tax basis, which now may be carried back to earlier years to request a refund of previously paid taxes. As such, we have recorded the estimated impact of the federal NOL carryback in the quarterly financial results, which includes an $8.0 million reclassification from Deferred income taxes to Taxes receivable. However, we have not yet filed our 2019 federal income tax return and continue to evaluate the impact of the CARES Act on our tax positions, which may result in a change to our estimate. The Company’s provision for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income before taxes for the period in addition to recording any tax effects of discrete items for the quarter. For interim reporting purposes, the Company recorded Income tax expense of $0.6 million as discrete items. The discrete items relate to tax deficiencies on vesting of equity compensation in the quarter and the expected loss of 2018 foreign-derived intangible income tax benefits resulting from the anticipated Federal NOL carryback under the CARES Act. The provision for income taxes was $3.7 million and $6.8 million for the three months ended March 31, 2020 and 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. During the fourth quarter of 2018, the Company acquired a royalty stream which has been treated as an asset acquisition. The purchase price of the royalty stream for $1.0 million approximated its fair value at December 31, 2018 and is considered a Level 3 asset. The fair value measurement is based on the expected future cash flows and, as there is no reason to believe that the asset is impaired, it is assumed that the valuation remains unchanged at March 31, 2020. In November 2018 and July 2019, the Company entered into two interest rate swap transactions related to its credit agreement. The fair value of the interest rate swaps at March 31, 2020 was a loss of approximately $4.2 million and is considered a Level 2 liability. The pension plan assets are invested in collective investment trust funds. These investments are measured at fair value using the net asset value per share as a practical expedient. Investments valued using the net asset value method (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure. The Company’s Condensed Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value. The Company also has assets that are required to be recorded at fair value on a non-recurring basis. These assets are evaluated when certain triggering events occur (including a decrease in estimated future cash flows) that indicate the asset should be evaluated for impairment which could result in such assets being measured at fair value. Goodwill and indefinite lived intangible assets must be evaluated at least annually. Our annual evaluation occurred on March 31, 2020 and we have concluded that an impairment for goodwill or indefinite-lived intangible assets did not occur. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivative and Hedging Instruments The specific credit and market, commodity price and interest rate risks to which the Company is exposed in connection with its ongoing business operations are described below. This discussion includes an explanation of the hedging instrument, interest rate swap agreements, used to manage the Company’s interest rate risk associated with a fixed and floating-rate borrowing. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in Other comprehensive income. Those amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. Credit and Market Risk – Financial instruments, including derivatives, expose the Company to counterparty credit risk for non-performance and to market risk related to changes in commodity prices, interest rates and foreign currency exchange rates. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. The Company’s counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. The Company monitors the impact of market risk on the fair value and cash flows of its derivative and other financial instruments considering reasonably possible changes in commodity prices, interest rates and foreign currency exchange rates and restricts the use of derivative financial instruments to hedging activities. The Company continually monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. The Company did not have any customers accounting for a significant percentage of trade accounts receivable - net at March 31, 2020, or December 31, 2019. Allowance for doubtful accounts is calculated based upon the Company's estimate of expected credit losses over the life of exposure based upon both historical information as well as future expected losses. Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in the cost of production. We primarily mitigate our exposure to commodity price risk by using long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers. Our customer agreements provide for price adjustments based on relevant market indices and raw material prices and generally do not include take-or-pay terms. We may also enter into forward commodity contracts with third-parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized. At March 31, 2020 and 2019, we had no financial contracts related to forward commodity agreements. Interest Rate Risk Management – The Company has entered into two interest rate swap agreements for a total notional amount of $100 million to exchange floating for fixed rate interest payments for our LIBOR-based borrowings. These interest rate swaps had a fair value of zero at inception and were effective November 30, 2018 and July 31, 2019 with respective maturity dates of November 30, 2021 and February 21, 2023. In accordance with FASB Accounting Standards Codification (“ASC”) ASC 815, the Company designated the interest rate swaps as cash flow hedges of floating-rate borrowings. The interest rate swaps convert the Company’s interest rate payments on the first $100 million of variable-rate, 1-month LIBOR-based debt to a fixed interest rate. These interest rate swaps involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the interest rate swap without an exchange of the underlying principal amount. Liability Derivatives March 31, 2020 December 31, 2019 Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments under ASC 815: Interest Rate Contracts Accrued liabilities and Other liabilities (4,166) Accrued liabilities and Other liabilities (1,718) Total Derivatives $ (4,166) $ (1,718) The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income: March 31, Loss on derivative instruments included in Accumulated other comprehensive income at December 31, 2019 $ (1,718) Fair value adjustment (2,448) Loss on derivative instruments included in Accumulated other comprehensive income at March 31, 2020 $ (4,166) At March 31, 2020, the Company expects to reclassify approximately $2.0 million of net losses on derivative instruments from Accumulated other comprehensive income to earnings during the next 12 months due to the payment of variable interest associated with the floating rate debt. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring On May 2, 2019, the Company approved the closure of its Pottsville, Pennsylvania films plant as part of its broader strategic efforts to improve the Company’s competitive position in providing quality film products and services to its customers. The Company also announced a strategic alliance with Oben Holding Group S.A. (“Oben”), a third-party producer of films for the flexible packaging industry, leveraging the Company's sales channels and Nylon 6 supply with Oben's new state-of-the-art manufacturing facility. The Company ceased operations at the Pottsville, Pennsylvania plant in July 2019. Restructuring costs consist of long-lived asset impairments, facility exit costs, employee separations and inventory write-downs. Facility exit costs include demolition, equipment relocation, contract terminations and project management costs. These costs are included in Costs of goods sold in the Condensed Consolidated Statements of Operations. The Company recorded a restructuring charge of $11.0 million in 2019. As of March 31, 2020, all related restructuring liabilities have been paid. The following table summarizes the components of restructuring activities and the remaining balances of accrued restructuring charges as of March 31, 2020: Employee Separation Benefits Facility Exit Costs Total Accrual balance at December 31, 2019 $ 127 $ 410 $ 537 Charges — — — Cash payments (127) (410) (537) Accrual balance at March 31, 2020 $ — $ — $ — |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of March 31, 2020, and its results of operations for the three months ended March 31, 2020 and 2019 and cash flows for the three months ended March 31, 2020 and 2019. The year-end Condensed Consolidated Balance Sheet data were derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the "2019 Form 10-K"). All intercompany transactions have been eliminated. Certain prior period amounts have been reclassified for consistency with the current period presentation. 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. Historically, 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 the appropriate disclosures. Our actual closing dates for the three months ended March 31, 2020 and 2019 wer e March 28, 2020 and March 30, 2019, respe ctively. |
New Accounting Pronouncements | The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed 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 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments of ASU No. 2020-04 are effective for companies as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The Company is evaluating the impact that the amendments of this standard would have on the Company's consolidated financial position or results of operations upon adoption. On December 18, 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes the exception to the general principles in ASC 740, Income Taxes, associated with the incremental approach for intra-period tax allocation, accounting for basis differences when there are ownership changes in foreign investments and interim-period income tax accounting for year-to-date losses that exceed anticipated losses. In addition, the ASU improves the application of income tax related guidance and simplifies U.S. GAAP when accounting for franchise taxes that are partially based on income, transactions with government resulting in a step-up in tax basis goodwill, separate financial statements of legal entities not subject to tax, and enacted changes in tax laws in interim periods. Different transition approaches, retrospective, modified retrospective, or prospective, will apply to each income tax simplification provision. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments in this update is permitted, including adoption in any interim period. The Company is evaluating these changes and does not anticipate any material impact on the Company’s consolidated financial position or results of operations upon adoption. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of ASU No. 2018-13 are effective for companies for fiscal years beginning after December 15, 2019. The Company adopted ASU 2018-13 effective January 1, 2020, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates step 2, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill, from the goodwill impairment test. The amendments of ASU No. 2017-04 are effective for companies for fiscal years beginning after December 15, 2019 and requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company adopted ASU 2017-04 effective January 1, 2020, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments of ASU No. 2016-13 are effective for companies for fiscal years beginning after December 15, 2019 and modify existing guidance related to the measurement of credit losses on financial instruments, including trade and loan receivables. The new guidance requires impairments to be measured based on expected losses over the life of the asset rather than incurred losses. The Company adopted ASU 2016-13 effective January 1, 2020, using a modified retrospective approach, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Each of the Company’s product lines represented the following approximate percentage of total sales for the three months ended March 31, 2020 and 2019: Three Months Ended 2020 2019 Nylon 26% 31% Caprolactam 22% 20% Ammonium Sulfate Fertilizers 23% 21% Chemical Intermediates 29% 28% 100% 100% The Company's revenues by geographic area for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended 2020 2019 United States $ 230,443 $ 257,642 International 72,270 57,253 Total $ 302,713 $ 314,895 |
Summary of Deferred Income and Customer Advances | Below is a roll-forward of Deferred income and customer advances for the three months ended March 31, 2020: Opening balance January 1, 2020 $ 19,696 Additions to deferred revenues 678 Less amounts recognized in revenues (7,304) Ending balance March 31, 2020 $ 13,070 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The details of the basic and diluted EPS calculations for the three months ended March 31, 2020 and 2019 were a s follows: Three Months Ended 2020 2019 Basic Net Income $ 8,576 $ 20,174 Weighted average common shares outstanding 27,942,486 28,820,603 EPS – Basic $ 0.31 $ 0.70 Diluted Dilutive effect of equity awards and other stock-based holdings 108,469 966,354 Weighted average common shares outstanding 28,050,955 29,786,957 EPS – Diluted $ 0.31 $ 0.68 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive common stock equivalents outstanding at the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended 2020 2019 Options and stock equivalents 935,402 330,823 |
Accounts and Other Receivable_2
Accounts and Other Receivables - Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables Net | March 31, December 31, Accounts receivables $ 113,326 $ 105,275 Other 1,838 1,661 Total accounts and other receivables 115,164 106,936 Less – allowance for doubtful accounts (1,862) (2,323) Total accounts and other receivables – net $ 113,302 $ 104,613 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | March 31, December 31, Raw materials $ 63,487 $ 63,644 Work in progress 53,014 56,065 Finished goods 50,993 58,527 Spares and other 25,984 25,035 193,478 203,271 Reduction to LIFO cost basis (35,412) (31,561) Total inventories – net $ 158,066 $ 171,710 |
Postretirement Benefit Cost (Ta
Postretirement Benefit Cost (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of Net periodic benefit cost of the Company’s pension plan are as follows: Three Months Ended 2020 2019 Service cost $ 2,005 $ 1,714 Interest cost 544 521 Expected return on plan assets (524) (334) Net periodic benefit cost $ 2,025 $ 1,901 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended March 31, 2020 Finance lease cost: Amortization of right-of-use asset $ 181 Interest on lease liabilities 15 Total finance lease cost 196 Operating lease cost 11,044 Short-term lease cost 1,873 Variable lease cost — Total lease cost $ 13,113 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 10,958 Operating cash flows from finance leases 16 Financing cash flows from finance leases 182 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,048 Finance leases 5 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: March 31, Operating Leases Operating lease right-of-use assets $ 127,501 Operating lease liabilities – short term 38,361 Operating lease liabilities – long term 89,759 Total operating lease liabilities $ 128,120 Finance Leases Property, plant and equipment – gross $ 2,068 Accumulated depreciation (842) Property, plant and equipment – net $ 1,226 Accounts payable 700 Other liabilities 543 Total finance lease liabilities $ 1,243 Weighted Average Remaining Lease Term Operating leases 9.3 years Finance leases 2.0 years Weighted Average Discount Rate Operating leases 5.77 % Finance leases 4.76 % |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 33,059 $ 562 2021 32,932 528 2022 22,814 195 2023 13,335 11 2024 11,468 8 Thereafter 61,561 — Total lease payments 175,169 1,304 Less imputed interest (47,049) (61) Total $ 128,120 $ 1,243 |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities are as follows: Year Ending December 31, Operating Leases Finance Leases 2020 (remainder) $ 33,059 $ 562 2021 32,932 528 2022 22,814 195 2023 13,335 11 2024 11,468 8 Thereafter 61,561 — Total lease payments 175,169 1,304 Less imputed interest (47,049) (61) Total $ 128,120 $ 1,243 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Liability Derivatives March 31, 2020 December 31, 2019 Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments under ASC 815: Interest Rate Contracts Accrued liabilities and Other liabilities (4,166) Accrued liabilities and Other liabilities (1,718) Total Derivatives $ (4,166) $ (1,718) |
Derivative Instruments, Gain (Loss) | The following table summarizes adjustments related to cash flow hedge included in Cash-flow hedges, in the Condensed Consolidated Statements of Comprehensive Income: March 31, Loss on derivative instruments included in Accumulated other comprehensive income at December 31, 2019 $ (1,718) Fair value adjustment (2,448) Loss on derivative instruments included in Accumulated other comprehensive income at March 31, 2020 $ (4,166) |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the components of restructuring activities and the remaining balances of accrued restructuring charges as of March 31, 2020: Employee Separation Benefits Facility Exit Costs Total Accrual balance at December 31, 2019 $ 127 $ 410 $ 537 Charges — — — Cash payments (127) (410) (537) Accrual balance at March 31, 2020 $ — $ — $ — |
Organization, Operations and _2
Organization, Operations and Basis of Presentation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 24, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Feb. 22, 2019 | May 04, 2018 | |
Accounting Policies [Abstract] | |||||
Liabilities to creditors, payments issued but outstanding | $ 300,000 | $ 1,700,000 | |||
Share repurchase program, maximum amount of shares authorized to be repurchased | $ 75,000,000 | $ 75,000,000 | |||
Shares of common stock covering the tax withholding obligations (in shares) | 492,516 | ||||
Stock repurchased during period, value | $ 101,600,000 | ||||
Treasury stock acquired, weighted average cost per share (in dollars per share) | $ 28.36 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 59,600,000 | ||||
Subsequent Event [Line Items] | |||||
Stock repurchased during period (in shares) | 3,582,278 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock repurchased during period (in shares) | 0 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2020customercountry | Mar. 31, 2019 | |
Concentration Risk [Line Items] | ||
Number of customers | customer | 400 | |
Number of countries in which customers are located (more than) | country | 40 | |
Length of contract terms | We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. | |
Duration of customer relationship | 20 years | |
10 Largest Customers | Customer Concentration Risk | Revenue from Contract with Customer | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 43.00% | 48.00% |
Shaw Industries Group Inc | Customer Concentration Risk | Revenue from Contract with Customer | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 17.00% | 22.00% |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Percentage of sales | 100.00% | 100.00% |
Sales | $ 302,713 | $ 314,895 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 230,443 | 257,642 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 72,270 | $ 57,253 |
Nylon | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of sales | 26.00% | 31.00% |
Caprolactam | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of sales | 22.00% | 20.00% |
Ammonium Sulfate Fertilizers | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of sales | 23.00% | 21.00% |
Chemical Intermediates | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of sales | 29.00% | 28.00% |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue and Customer Advances (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Opening balance | $ 19,696 |
Additions to deferred revenues | 678 |
Less amounts recognized in revenues | (7,304) |
Ending balance | $ 13,070 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic | ||
Net Income | $ 8,576 | $ 20,174 |
Weighted average common shares outstanding (in shares) | 27,942,486 | 28,820,603 |
EPS – Basic (in dollars per share) | $ 0.31 | $ 0.70 |
Diluted | ||
Dilutive effect of equity awards and other stock-based holdings (in shares) | 108,469 | 966,354 |
Weighted average common shares outstanding (in shares) | 28,050,955 | 29,786,957 |
EPS – Diluted (in dollars per share) | $ 0.31 | $ 0.68 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Common Stock Equivalents (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Options and stock equivalents (in shares) | 935,402 | 330,823 |
Accounts and Other Receivable_3
Accounts and Other Receivables - Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivables | $ 113,326 | $ 105,275 |
Other | 1,838 | 1,661 |
Total accounts and other receivables | 115,164 | 106,936 |
Less – allowance for doubtful accounts | (1,862) | (2,323) |
Total accounts and other receivables – net | $ 113,302 | $ 104,613 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 63,487 | $ 63,644 |
Work in progress | 53,014 | 56,065 |
Finished goods | 50,993 | 58,527 |
Spares and other | 25,984 | 25,035 |
Inventory gross | 193,478 | 203,271 |
Reduction to LIFO cost basis | (35,412) | (31,561) |
Total inventories – net | $ 158,066 | $ 171,710 |
Postretirement Benefit Cost - N
Postretirement Benefit Cost - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 2,005 | $ 1,714 |
Interest cost | 544 | 521 |
Expected return on plan assets | (524) | (334) |
Net periodic benefit cost | $ 2,025 | $ 1,901 |
Postretirement Benefit Cost -_2
Postretirement Benefit Cost - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension contributions | $ 1.7 | |
Scenario, Forecast | Minimum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension contributions | $ 5 | |
Scenario, Forecast | Maximum | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension contributions | $ 10 |
Long-term Debt and Credit Agr_2
Long-term Debt and Credit Agreement (Details) | Feb. 19, 2020 | Feb. 21, 2018USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Feb. 20, 2018USD ($) | Sep. 30, 2016USD ($) |
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Borrowings from line of credit | $ 133,500,000 | $ 85,500,000 | ||||
Letter of Credit | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Long-term line of credit | 1,000,000 | |||||
Revolving Credit Facility | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Decrease in overall borrowing costs, percentage | 0.50% | |||||
Original Credit Agreement | Letter of Credit | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Original Credit Agreement | Bridge Loan | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
Original Credit Agreement | Revolving Credit Facility | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, aggregate principal amount | 155,000,000 | |||||
Original Credit Agreement | Secured Debt | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, aggregate principal amount | $ 270,000,000 | |||||
Debt outstanding | $ 267,000,000 | |||||
Senior Secured Revolving Credit Facility | Revolving Credit Facility | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Maximum borrowing capacity | $ 425,000,000 | |||||
Borrowings from line of credit | $ 242,000,000 | 133,500,000 | ||||
Debt instrument, term | 5 years | |||||
Repaid amount | 93,500,000 | |||||
Unused borrowing capacity | $ 337,000,000 | |||||
First Amended and Restated Credit Agreement | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 175,000,000 | |||||
Debt instrument, covenant, consolidated senior secured leverage ratio, maximum | 1.75 | |||||
Debt instrument, covenant, consolidated interest coverage ratio, minimum | 3 | 3 | ||||
Debt instrument, covenant, consolidated leverage ratio, scenario one, maximum | 3.50 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario two, maximum | 3.25 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario three, maximum | 3 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario four, maximum | 2.75 | |||||
First Amended and Restated Credit Agreement | Base Rate | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||
First Amended and Restated Credit Agreement | Eurodollar | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||
Commitment fee percentage | 0.25% | |||||
First Amended and Restated Credit Agreement | Minimum | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Commitment fee percentage | 0.20% | |||||
First Amended and Restated Credit Agreement | Minimum | Base Rate | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
First Amended and Restated Credit Agreement | Minimum | Eurodollar | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
First Amended and Restated Credit Agreement | Maximum | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Commitment fee percentage | 0.40% | |||||
First Amended and Restated Credit Agreement | Maximum | Base Rate | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
First Amended and Restated Credit Agreement | Maximum | Eurodollar | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
First Amended and Restated Credit Agreement | Letter of Credit | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Maximum borrowing capacity | $ 40,000,000 | |||||
First Amended and Restated Credit Agreement | Bridge Loan | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Maximum borrowing capacity | $ 40,000,000 | |||||
Second Amended and Restated Credit Agreement | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, covenant, consolidated leverage ratio, scenario one, maximum | 3.50 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario two, maximum | 4.50 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario three, maximum | 4.25 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario four, maximum | 3.50 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario five, maximum | 3.25 | |||||
Debt instrument, covenant, consolidated leverage ratio, scenario six, maximum | 3 | |||||
Second Amended and Restated Credit Agreement | Base Rate | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
Second Amended and Restated Credit Agreement | Eurodollar | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||
Commitment fee percentage | 0.35% | |||||
Second Amended and Restated Credit Agreement | Minimum | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Commitment fee percentage | 0.20% | |||||
Second Amended and Restated Credit Agreement | Minimum | Base Rate | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||
Second Amended and Restated Credit Agreement | Minimum | Eurodollar | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||
Second Amended and Restated Credit Agreement | Maximum | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Commitment fee percentage | 0.50% | |||||
Second Amended and Restated Credit Agreement | Maximum | Base Rate | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||
Second Amended and Restated Credit Agreement | Maximum | Eurodollar | ||||||
Long-term Debt and Credit Arrangements (Details) [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Leases, term of contract | 20 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Finance Lease Cost | |
Amortization of right-of-use asset | $ 181 |
Interest on lease liabilities | 15 |
Total finance lease cost | 196 |
Operating lease cost | 11,044 |
Short-term lease cost | 1,873 |
Variable lease cost | 0 |
Total lease cost | $ 13,113 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 10,958 |
Operating cash flows from finance leases | 16 |
Financing cash flows from finance leases | 182 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 1,048 |
Finance leases | $ 5 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 127,501 | $ 135,985 |
Operating lease liabilities – short-term | 38,361 | 38,005 |
Operating lease liabilities – long-term | 89,759 | $ 98,347 |
Total operating lease liabilities | 128,120 | |
Finance Leases | ||
Property, plant and equipment – gross | 2,068 | |
Accumulated depreciation | (842) | |
Property, plant and equipment – net | 1,226 | |
Accounts payable | 700 | |
Other liabilities | 543 | |
Total finance lease liabilities | $ 1,243 | |
Weighted Average Remaining Lease Term | ||
Operating leases | 9 years 3 months 18 days | |
Finance leases | 2 years | |
Weighted Average Discount Rate | ||
Operating leases | 5.77% | |
Finance leases | 4.76% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities After Adoption (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
2020 (remainder) | $ 33,059 |
2021 | 32,932 |
2022 | 22,814 |
2023 | 13,335 |
2024 | 11,468 |
Thereafter | 61,561 |
Total lease payments | 175,169 |
Less imputed interest | (47,049) |
Total | 128,120 |
Finance Leases | |
2020 (remainder) | 562 |
2021 | 528 |
2022 | 195 |
2023 | 11 |
2024 | 8 |
Thereafter | 0 |
Total lease payments | 1,304 |
Less imputed interest | (61) |
Total | $ 1,243 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2020customer | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of manufacturing locations | 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Reclassification from deferred income taxes to taxes receivable | $ 8,000 | |
Discrete items | 600 | |
Income taxes | $ 3,664 | $ 6,824 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)derivative_instrument | Jul. 31, 2019USD ($)derivative_instrument | Dec. 31, 2018USD ($) | Nov. 30, 2018USD ($)derivative_instrument | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment for goodwill | $ 0 | |||
Impairment for indefinite-lived intangible assets | $ 0 | |||
Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of instruments held | derivative_instrument | 2 | 2 | 2 | |
Derivative liability, fair value | $ 0 | $ 0 | ||
Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Royalty agreement, asset, fair value | $ 1,000,000 | |||
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability, fair value | $ (4,200,000) |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)derivative_instrument | Jul. 31, 2019USD ($)derivative_instrument | Nov. 30, 2018USD ($)derivative_instrument | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative loss reclassification from AOCI to income | $ 2,000,000 | ||
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of instruments held | derivative_instrument | 2 | 2 | 2 |
Derivative, notional amount | $ 100,000,000 | ||
Derivative liability, fair value | $ 0 | $ 0 | |
Derivative, amount of hedged item | $ 100,000,000 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Balance Sheet Classification (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative liability, fair value | $ (4,166) | $ (1,718) |
Interest Rate Contracts | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ (4,166) | $ (1,718) |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments - Adjustments Related to Cash Flow Hedges on the Comprehensive Income Statement (Details) - Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
AOCI Attributable To Parent, Before Tax [Roll Forward] | |
Loss on derivative instruments included in Accumulated other comprehensive income at December 31, 2019 | $ (1,718) |
Fair value adjustment | (2,448) |
Loss on derivative instruments included in Accumulated other comprehensive income at March 31, 2020 | $ (4,166) |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Accrual balance at December 31, 2019 | $ 537 | |
Charges | 0 | $ 11,000 |
Cash payments | (537) | |
Accrual balance at March 31, 2020 | 0 | 537 |
Employee Separation Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Accrual balance at December 31, 2019 | 127 | |
Charges | 0 | |
Cash payments | (127) | |
Accrual balance at March 31, 2020 | 0 | 127 |
Facility Exit Costs | ||
Restructuring Reserve [Roll Forward] | ||
Accrual balance at December 31, 2019 | 410 | |
Charges | 0 | |
Cash payments | (410) | |
Accrual balance at March 31, 2020 | $ 0 | $ 410 |