Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 02, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 929 | ||
Entity Common Stock, Shares Outstanding | 26,700,024 | ||
Documents Incorporated by Reference | Part III: Proxy Statement for Annual Meeting of Stockholders to be held June 13, 2024. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001673985 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Florham Park, New Jersey |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 1,533,599 | $ 1,945,640 | $ 1,684,625 |
Costs, expenses and other: | |||
Costs of goods sold | 1,368,511 | 1,631,161 | 1,410,503 |
Selling, general and administrative expenses | 95,538 | 87,748 | 82,985 |
Interest expense, net | 7,485 | 2,781 | 5,023 |
Other non-operating (income) expense, net | (7,158) | (1,841) | 998 |
Total costs, expenses and other | 1,464,376 | 1,719,849 | 1,499,509 |
Income before taxes | 69,223 | 225,791 | 185,116 |
Income tax expense | 14,600 | 53,905 | 45,325 |
Net income | $ 54,623 | $ 171,886 | $ 139,791 |
Earnings per common share | |||
Basic (in dollars per share) | $ 2 | $ 6.15 | $ 4.97 |
Diluted (in dollars per share) | $ 1.95 | $ 5.92 | $ 4.81 |
Weighted average common shares outstanding | |||
Basic (in shares) | 27,302,254 | 27,969,436 | 28,152,876 |
Diluted (in shares) | 28,007,630 | 29,031,107 | 29,045,186 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 54,623 | $ 171,886 | $ 139,791 |
Foreign exchange translation adjustment | 63 | 14 | (43) |
Cash-flow hedges | (150) | 688 | 1,789 |
Pension obligation adjustments | 140 | 1,640 | 7,847 |
Other comprehensive income, net of tax | 53 | 2,342 | 9,593 |
Comprehensive income | $ 54,676 | $ 174,228 | $ 149,384 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 29,768,000 | $ 30,985,000 |
Accounts and other receivables – net | 165,393,000 | 175,429,000 |
Inventories – net | 211,831,000 | 215,502,000 |
Taxes receivable | 1,434,000 | 9,771,000 |
Other current assets | 11,378,000 | 9,241,000 |
Total current assets | 419,804,000 | 440,928,000 |
Property, plant and equipment – net | 852,642,000 | 811,065,000 |
Operating lease right-of-use assets | 95,805,000 | 114,688,000 |
Goodwill | 56,192,000 | 56,192,000 |
Intangible assets | 46,193,000 | 49,242,000 |
Other assets | 25,384,000 | 23,216,000 |
Total assets | 1,496,020,000 | 1,495,331,000 |
Current liabilities: | ||
Accounts payable | 259,068,000 | 272,740,000 |
Accrued liabilities | 44,086,000 | 48,820,000 |
Operating lease liabilities – short-term | 32,053,000 | 37,472,000 |
Income taxes payable | 8,033,000 | 30,000 |
Deferred income and customer advances | 15,678,000 | 34,430,000 |
Total current liabilities | 358,918,000 | 393,492,000 |
Deferred income taxes | 151,059,000 | 160,409,000 |
Operating lease liabilities – long-term | 63,961,000 | 77,571,000 |
Line of credit – long-term | 170,000,000 | 115,000,000 |
Postretirement benefit obligations | 3,660,000 | 0 |
Other liabilities | 9,185,000 | 10,679,000 |
Total liabilities | 756,783,000 | 757,151,000 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01; 200,000,000 shares authorized; 32,598,946 shares issued and 26,750,471 outstanding at December 31, 2023; 31,977,593 shares issued and 27,446,520 outstanding at December 31, 2022 | 326,000 | 320,000 |
Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2023 and 2022 | 0 | 0 |
Treasury stock at par (5,848,475 shares at December 31, 2023; 4,531,073 shares at December 31, 2022) | (58,000) | (45,000) |
Additional paid-in capital | 138,046,000 | 174,585,000 |
Retained earnings | 605,067,000 | 567,517,000 |
Accumulated other comprehensive loss | (4,144,000) | (4,197,000) |
Total stockholders' equity | 739,237,000 | 738,180,000 |
Total liabilities and stockholders' equity | $ 1,496,020,000 | $ 1,495,331,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 32,598,946 | 31,977,593 |
Common stock, shares outstanding (in shares) | 26,750,471 | 27,446,520 |
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) | 5,848,475 | 4,531,073 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net Income | $ 54,623 | $ 171,886 | $ 139,791 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 73,010 | 69,353 | 65,340 |
Loss on disposal of assets | 1,281 | 1,521 | 1,711 |
Deferred income taxes | (9,347) | 16,228 | 4,702 |
Stock-based compensation | 8,313 | 10,279 | 11,299 |
Amortization of deferred financing fees | 618 | 618 | 677 |
Operational asset adjustments | (4,472) | 0 | 0 |
Changes in assets and liabilities, net of business acquisitions: | |||
Accounts and other receivables | 21,489 | 17,842 | (53,772) |
Inventories | 3,286 | (57,043) | 31,227 |
Taxes receivable | 8,337 | (8,824) | 11,342 |
Accounts payable | (20,756) | 55,863 | 15,676 |
Income taxes payable | 8,003 | (9,693) | 9,717 |
Accrued liabilities | (5,569) | (3,122) | 14,654 |
Deferred income and customer advances | (18,752) | 31,681 | (23,630) |
Other assets and liabilities | (2,514) | (22,988) | (9,885) |
Net cash provided by operating activities | 117,550 | 273,601 | 218,849 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | (107,377) | (89,449) | (56,811) |
Acquisition of businesses | 0 | (97,456) | (9,523) |
Other investing activities | (3,520) | (2,368) | (1,228) |
Net cash used for investing activities | (110,897) | (189,273) | (67,562) |
Cash flows from financing activities: | |||
Borrowings from line of credit | 437,000 | 434,500 | 176,000 |
Payments of line of credit | (382,000) | (454,500) | (316,000) |
Payment of line of credit facility fees | 0 | 0 | (2,442) |
Principal payments of finance leases | (938) | (926) | (735) |
Dividend payments | (16,657) | (15,073) | (3,518) |
Purchase of treasury stock | (46,151) | (33,748) | (652) |
Issuance of common stock | 876 | 1,304 | 554 |
Net cash used for financing activities | (7,870) | (68,443) | (146,793) |
Net change in cash and cash equivalents | (1,217) | 15,885 | 4,494 |
Cash and cash equivalents at beginning of year | 30,985 | 15,100 | 10,606 |
Cash and cash equivalents at the end of year | 29,768 | 30,985 | 15,100 |
Supplemental non-cash investing activities: | |||
Capital expenditures included in accounts payable | 22,660 | 14,879 | 11,720 |
Supplemental cash activities: | |||
Cash paid for interest | 7,086 | 2,239 | 4,459 |
Cash paid for income taxes | $ 7,790 | $ 56,170 | $ 31,000 |
CONSOLIDATED STATEMENTS OF STOC
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) |
Balance (in shares) at Dec. 31, 2020 | 31,627,139 | |||||
Beginning balance at Dec. 31, 2020 | $ 444,123 | $ 316 | $ 184,732 | $ 275,243 | $ (36) | $ (16,132) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 139,791 | 139,791 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | (43) | (43) | ||||
Cash-flow hedges | 1,789 | 1,789 | ||||
Pension obligation adjustments | 7,847 | 7,847 | ||||
Other comprehensive income (loss), net of tax | 9,593 | 9,593 | ||||
Issuance of common stock (in shares) | 128,291 | |||||
Issuance of common stock | 554 | $ 2 | 552 | |||
Acquisition of treasury shares | (652) | (652) | 0 | |||
Stock-based compensation | 11,299 | 11,299 | ||||
Dividends | (3,518) | (3,518) | ||||
Balance (in shares) at Dec. 31, 2021 | 31,755,430 | |||||
Ending balance at Dec. 31, 2021 | 601,190 | $ 318 | 195,931 | 411,516 | (36) | (6,539) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 171,886 | 171,886 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | 14 | 14 | ||||
Cash-flow hedges | 688 | 688 | ||||
Pension obligation adjustments | 1,640 | 1,640 | ||||
Other comprehensive income (loss), net of tax | 2,342 | 2,342 | ||||
Issuance of common stock (in shares) | 222,163 | |||||
Issuance of common stock | 1,304 | $ 2 | 1,302 | |||
Acquisition of treasury shares | (33,748) | (33,739) | (9) | |||
Stock-based compensation | 10,279 | 10,279 | ||||
Dividends | $ (15,073) | 812 | (15,885) | |||
Balance (in shares) at Dec. 31, 2022 | 27,446,520 | 31,977,593 | ||||
Ending balance at Dec. 31, 2022 | $ 738,180 | $ 320 | 174,585 | 567,517 | (45) | (4,197) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 54,623 | 54,623 | ||||
Comprehensive income | ||||||
Foreign exchange translation adjustments | 63 | 63 | ||||
Cash-flow hedges | (150) | (150) | ||||
Pension obligation adjustments | 140 | 140 | ||||
Other comprehensive income (loss), net of tax | 53 | 53 | ||||
Issuance of common stock (in shares) | 621,353 | |||||
Issuance of common stock | 876 | $ 6 | 870 | |||
Acquisition of treasury shares | (46,151) | (46,138) | (13) | |||
Stock-based compensation | 8,313 | 8,313 | ||||
Dividends | $ (16,657) | 416 | (17,073) | |||
Balance (in shares) at Dec. 31, 2023 | 26,750,471 | 32,598,946 | ||||
Ending balance at Dec. 31, 2023 | $ 739,237 | $ 326 | $ 138,046 | $ 605,067 | $ (58) | $ (4,144) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock repurchased during period (in shares) | 1,317,402 | 915,597 | 21,564 |
Organization, Operations and Ba
Organization, Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization, Operations and Basis of Presentation | Organization, Operations and Basis of Presentation Description of Business AdvanSix Inc. (“AdvanSix”, the “Company”, “we,” "us" or “our”) is a diversified chemistry company playing a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives and electronics. Our reliable and sustainable supply of quality products emerges from the integrated value chain of our five U.S.-based manufacturing facilities. AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients and chemical intermediates, guided by our core values of Safety, Integrity, Accountability and Respect. We evaluated segment reporting in accordance with Accounting Standards Codification Topic (“ASC”) 280. We concluded that AdvanSix is a single operating segment and a single reportable segment based on the operating results available which are evaluated regularly by the chief operating decision maker (“CODM”) to make decisions about resource allocation and performance assessment on a consolidated basis. Our larger manufacturing sites are vertically integrated and leverage cross-plant resources, including centralized supply chain and procurement functions. This production process uses one key raw material, cumene, as the input to products produced for sale through the sales channels and end-markets the Company serves. Production rates and output volumes are managed across locations to align with the overall Company operating plan. AdvanSix operates through five U.S.-based manufacturing sites located in Frankford, Pennsylvania, Chesterfield, Virginia, Hopewell, Virginia, Portsmouth, Virginia and Bucks, Alabama. The Company's headquarters is located in Parsippany, New Jersey. Corporate History On October 1, 2016, Honeywell International Inc. (“Honeywell”) completed the separation of AdvanSix. The separation was completed by Honeywell distributing (the "Distribution") all of the then outstanding shares of common stock of AdvanSix on October 1, 2016 (the “Distribution Date”) through a dividend in kind of AdvanSix common stock, par value $0.01 per share, to holders of Honeywell common stock as of the close of business on the record date of September 16, 2016 who held their shares through the Distribution Date. Basis of Presentation Unless the context otherwise requires, references in these Notes to the Consolidated Financial Statements to “we,” “us,” “our,” “AdvanSix” and the “Company” refer to AdvanSix Inc. and its consolidated subsidiaries after giving effect to the Spin-Off. All intercompany transactions have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Accounting Principles – The financial statements and accompanying Notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of AdvanSix’s significant accounting policies. Principles of Consolidation – The Consolidated Financial Statements include the accounts of AdvanSix and all of its subsidiaries in which a controlling financial interest is maintained. Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. Cash and Cash Equivalents – Cash and cash equivalents include cash on hand and on deposit and highly liquid, temporary cash investments with an original maturity to the Company of three months or less. We reduce cash and extinguish liabilities when the creditor receives our payment and we are relieved of our obligation for the liability when checks clear the Company’s bank account. Liabilities to creditors to whom we have issued checks that remain outstanding aggregated $2.9 million at December 31, 2023 and are included in Cash and cash equivalents and Accounts payable in the Consolidated Balance Sheets. Fair Value Measurement – ASC 820, Fair Value Measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Financial Accounting Standards Board's ("FASB") guidance classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability Derivative Financial Instruments – We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. For derivative instruments that are designated and qualify as a net investment hedge, the derivative’s gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in our 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 they do not include take-or-pay terms. Instead, each customer agreement, the majority of which have a term of at least one year, is typically determined by monthly or quarterly volume estimates. 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 December 31, 2023 and 2022, we had no contracts with notional amounts related to forward commodity agreements. Inventories – Substantially all of the Company's inventories are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. The Company includes spare and other parts in inventory which are used in support of production or production facilities operations and are valued based on weighted average cost. Inventories valued at LIFO amounted to $195.6 million and $202.9 million at December 31, 2023 and 2022, respectively. Had such LIFO inventories been valued at current costs, their carrying values would have been approximately $95.2 million and $64.8 million higher at December 31, 2023 and 2022. Inventories valued at FIFO amounted to $16.2 million and $12.6 million at December 31, 2023 and 2022, respectively. Property, Plant, Equipment – Property, plant, equipment asset values are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 40 years for buildings and improvements and 3 to 35 years for machinery and equipment. Our machinery and equipment includes (1) assets used in short production cycles or subject to high corrosion, such as instrumentation, controls and insulation systems with useful lives of 3 to 30 years, (2) standard plant assets, such as boilers and railcars, with useful lives ranging from 3 to 30 years and (3) major process equipment that can be used for long durations with effective preventative maintenance and repair, such as cooling towers, compressors, tanks and turbines with useful lives ranging from 3 to 35 years. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. Repairs and maintenance, including planned major maintenance, are expensed as incurred. Costs which materially add to the value of the asset or prolong its useful life are capitalized and the replaced assets are retired. Long-Lived Assets – The Company evaluates the recoverability of the carrying amount of long-lived assets (including property, plant and equipment and intangible assets with determinable lives) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates events or changes in circumstances based on several factors including operating results, business plans and forecasts, general and industry trends, and economic projections and anticipated cash flows. An impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset exceeds its fair value and are recognized in the Consolidated Statements of Operations. The Company also evaluates the estimated useful lives of long-lived assets if circumstances warrant and revises such estimates based on current events. Goodwill – The Company had goodwill of $56.2 million at December 31, 2023 and 2022. Goodwill is subject to impairment testing annually and has historically been tested as of March 31, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Management first assesses qualitative factors as described in ASC 350 to determine whether it is necessary to perform the quantitative goodwill impairment test. Potential impairment is identified by comparing the fair value of a reporting unit to the carrying value, including goodwill. The Company completed its annual goodwill impairment test as of March 31, 2023 and, based on the results of the Company's assessment of qualitative factors, it was determined that it was not necessary to perform the quantitative goodwill impairment test. Beginning in the fourth quarter of 2023, and for subsequent annual periods thereafter, the Company voluntarily changed the annual impairment assessment date to the last day of our October close, and thus performed an additional impairment test during 2023 as of October 28, 2023. We believe this measurement date, which represents a change in the method of applying an accounting principle, better aligns with the timing of our strategic business planning process and financial forecasts, which are key components of the annual impairment tests and are typically completed in the fourth quarter of our fiscal year. Based on share price and current market trend, the Company determined it would not qualify for a qualitative analysis and thus performed a quantitative analysis. If the carrying amount of a reporting unit exceeds its estimated fair value, an impairment loss is recorded based on the difference between the fair value and the carrying amount, not to exceed the associated carrying value of goodwill. Fair value for the reporting unit was determined based on a combination of the discounted future cash flow model (income approach) and the application of current market multiples for comparable publicly-traded companies (market approach). Under the income approach, the fair value of the reporting unit is estimated based on the discounted present value of the projected future cash flows. Management's cash flow projections for the reporting unit included significant judgements and assumptions, including revenue growth rate, EBITDA margin and weighted average cost of capital rate. Under the market approach, management uses selected financial information of publicly-traded companies that compare to the reporting unit to derive a market-based multiple. The Company completed its annual goodwill impairment test as of October 28, 2023 and, based on the results of the Company's assessment, it concluded that the estimated fair value of the reporting unit was in excess of its carrying value resulting in no impairment. Although management believes its estimate of fair value is reasonable, it is dependent on numerous economic and business assumptions and reflects management’s best estimates at a particular point in time. Changes in the factors and assumptions used in assessing potential impairments can have a significant impact on the existence and magnitude of impairments, as well as the time in which such impairments are recognized. If future financial performance falls below the Company's expectations including prolonged unfavorable economic conditions, or there are negative revisions to significant assumptions, or if the Company's market capitalization declines, and if such a decline becomes indicative that the fair value of our reporting unit has declined below its carrying value, the Company may need to record a material, non-cash goodwill impairment charge in a future period. Finite-Lived Intangible Assets – Other intangible assets with determinable lives consist of customer relationships, trademarks, patents and other intangibles and are amortized over their estimated useful lives, ranging from 5 to 20 years. As described in "Note 18. Acquisitions" to the consolidated financial statements included in Item 8 of this Form 10-K, in February 2022, the Company acquired U.S. Amines Limited ("U.S. Amines") for a purchase price of approximately $97 million, net of cash acquired. The acquisition included intangible assets of $34 million consisting primarily of customer relationships, which reflects the value of the benefit derived from incremental revenue and related cash flows that are a direct result of the customer relationships in the amount of approximately $33 million. The fair value for the customer relationships intangible asset was determined by management using the multi-period excess earnings method. Management applied significant judgments and assumptions in determining the fair value of the customer relationships including gross margin rates, the discount rate, and customer attrition rate. Revenue Recognition – The Company recognizes revenue upon the transfer of control of goods or services to customers at amounts that reflect the consideration expected to be received. AdvanSix primarily recognizes revenues when title and control of the product transfers from the Company to the customer. Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs of goods sold in the Consolidated Statements of Operations. Sales of our products to customers are made under a purchase order, and in certain cases in accordance with the terms of a master services agreement. These agreements typically contain formula-based pass-through pricing tied to key feedstock materials and volume ranges, but often do not specify the goods, including the quantities thereof, to be transferred. Certain master services agreements (including with respect to our largest customer) may contain minimum purchase volumes which can be satisfied by the customer on a periodic basis by choosing from various products offered by the Company. In these cases, a performance obligation is created when a customer submits a purchase order for a specific product at a specified price, typically providing for delivery within the next 60 days. Management considers the performance obligation with respect to such purchase order satisfied at the point in time when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and risk of loss to the customer. Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping or destination point terms pursuant to the arrangement with the customer. Variable consideration is estimated for future volume rebates and early pay discounts on certain products and product returns. The Company records variable consideration as an adjustment to the sale transaction price. Since variable consideration is generally settled within one year, the time value of money is not significant. The Company applies the practical expedient in Topic 606 and does not include disclosures regarding remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less. Environmental – The Company accrues costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. Deferred Income and Customer Advances – AdvanSix typically has an annual pre-buy program for ammonium sulfate that is classified as deferred income and customer advances in the Consolidated Balance Sheets. Customers pay cash in advance to reserve capacity for ammonium sulfate to guarantee product availability during peak planting season. The Company recognizes a customer advance when cash is received for the advanced buy. Revenue is then recognized and the customer advance is relieved upon title transfer of ammonium sulfate. Trade Receivables and Allowance for Doubtful Accounts – Trade accounts receivables are recorded at the invoiced amount as a result of transactions with customers. AdvanSix maintains allowances for doubtful accounts for estimated losses based on a customer’s inability to make required payments. AdvanSix estimates anticipated losses from doubtful accounts based on days past due, as measured from the contractual due date and historical collection history and incorporates changes in economic conditions that may not be reflected in historical trends such as customers in bankruptcy, liquidation or reorganization. Receivables are written-off against the allowance for doubtful accounts when they are determined uncollectible. Such determination includes analysis and consideration of the particular conditions of the account, including time intervals since last collection, customer performance against agreed upon payment plans, success of outside collection agencies activity, solvency of customer and any bankruptcy proceedings. 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. Research and Development – AdvanSix conducts research and development (“R&D”) activities, which consist primarily of the development of new products and product applications consisting primarily of labor costs and depreciation and maintenance costs. R&D costs are charged to expense as incurred. Such costs are included in costs of goods sold and were $9.8 million, $12.5 million, and $14.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Debt Issuance Costs – Debt issuance costs are capitalized as a component of Other assets and are amortized through interest expense over the related term. Stock-Based Compensation Plans – The principal awards issued under our stock-based compensation plans, which are described in "Note 16. Stock-Based Compensation Plans" to the Consolidated Financial Statements included in Item 8 of this Form 10-K, are non-qualified stock options, performance stock units and restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest, including the impact of the Company's anticipated performance against certain metrics for performance stock units, is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expenses. Estimates of future performance are utilized to determine the underlying expense for shares expected to vest. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. Dividend Equivalents – If a dividend is authorized by the Board for stockholders of common stock, holders of unvested RSUs and unvested PSUs will have their accounts credited with dividend equivalents in the form and in an amount equal to the dividend that the holder would have received had the shares underlying the RSUs and PSUs been distributed at the time that such dividend was paid. Dividend equivalents are subject to the same vesting, forfeiture, performance and payment restrictions as the respective equity award for which it is attributable. Since the dividend equivalents are forfeitable, there is no impact on the basic earnings per share calculation. Pension Benefits – We have a defined benefit plan covering certain employees primarily in the U.S. The benefits are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense. Differences between actual and expected results or changes in the value of defined benefit obligations and fair value of plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods when net actuarial gains or losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s projected benefit obligation. Foreign Currency Translation – Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. Income Taxes – We account for income taxes pursuant to the asset and liability method which requires us to recognize current tax liabilities or receivables for the amount of taxes we estimate are payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. We adopted the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in our income tax returns are recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. Our policy is to classify tax related interest and penalties, if any, as a component of income tax expense. No interest or penalties related to unrecognized income tax benefits were recorded during the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, no liability for unrecognized tax benefits was required to be reported. We do not expect any significant changes in our unrecognized tax benefits in the next year. Leases – The Company enters into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. Operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. An arrangement is considered to be a lease if the agreement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases, which are reported as Operating lease right-of-use assets, and Operating lease liabilities – short-term and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included as a component of Property, plant and equipment – net, Accounts payable and Other liabilities in our Consolidated Balance Sheets. The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019 and has elected the following practical expedients available in Topic 842: • the package of three expedients which allows the Company to not re-assess (i) whether any expired or existing contracts are, or contain, leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases; • the short-term lease practical expedient, which allows the Company to exclude leases with an initial term of 12 months or less ("short-term leases") from recognition in the unaudited Consolidated Balance Sheets; • the bifurcation of lease and non-lease components practical expedients, which did not require the Company to bifurcate lease and non-lease components for real estate leases; and • the land easements practical expedient, which allows the Company to carry forward the accounting treatment for land easements on existing agreements. Earnings Per Share – Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Treasury Stock – The Company has elected to account for treasury stock purchased under the constructive retirement method. For shares repurchased in excess of par, the Company will allocate the excess value to additional paid-in capital. Use of Estimates – The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and related disclosures in the accompanying Notes. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of changes are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Reclassifications – Certain prior period amounts have been reclassified for consistency with the current period presentation. All reclassified amounts have been immaterial. 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. On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. On a retrospective basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid. In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption of the amendments in this update is permitted. The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or result |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We serve approximately 400 customers annually in approximately 50 countries and across a wide variety of industries. For 2023, 2022 and 2021, the Company's ten largest customers accounted for approximately 39%, 39% and 40% of total sales, respectively. We typically sell to customers under master services 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 caprolactam and Nylon 6 resin to Shaw under a long-term agreement. Sales to Shaw were 11% of our total sales for the year ended December 31, 2023, 12% for the year ended December 31, 2022 and 12% for the year ended December 31, 2021. The Company’s revenue by product line, and related approximate percentage of total sales for 2023, 2022 and 2021 were as follows: Twelve Months Ended December 31, 2023 and 2022 2023 2022 2021 Nylon $ 356,632 23% $ 485,241 25% $ 422,897 25% Caprolactam 298,375 19% 319,863 16% 316,132 19% Ammonium Sulfate 440,915 29% 629,021 33% 401,092 24% Chemical Intermediates 437,677 29% 511,515 26% 544,504 32% $ 1,533,599 100% $ 1,945,640 100% $ 1,684,625 100% The Company’s revenues by geographic area, and related approximate percentage of total sales for 2023, 2022 and 2021 were as follows: Twelve Months Ended December 31, 2023 and 2022 2023 2022 2021 United States $ 1,250,094 82 % $ 1,622,537 83 % $ 1,382,464 82 % International 283,505 18 % 323,103 17 % 302,161 18 % Total $ 1,533,599 100 % $ 1,945,640 100 % $ 1,684,625 100 % 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 twelve months ended December 31, 2023: Deferred Income and Customer Advances 2023 Opening balance January 1, 2023 $ 34,430 Additional cash advances 21,916 Less amounts recognized in revenues (40,668) Ending balance December 31, 2023 $ 15,678 The Company expects to recognize as revenue the December 31, 2023 ending balance of Deferred income and customer advances within one year or less. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Years Ended December 31, 2023 2022 2021 Income before taxes U.S. $ 69,055 $ 225,640 $ 184,963 Non-U.S. 168 151 153 $ 69,223 $ 225,791 $ 185,116 Income taxes Income tax expense (benefit) consists of: Years Ended December 31, 2023 2022 2021 Current Provision (benefit): Federal $ 20,707 $ 31,165 $ 34,079 State 3,159 6,463 6,504 Non-U.S. 47 48 35 Total current provision (benefit) $ 23,913 $ 37,676 $ 40,618 Deferred Provision (benefit): Federal $ (8,886) $ 13,874 $ 2,256 State (427) 2,355 2,445 Non-U.S. — — 6 Total deferred provision (benefit) (9,313) 16,229 4,707 Total income tax expense (benefit) $ 14,600 $ 53,905 $ 45,325 The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: Years Ended December 31, 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes 2.9 % 3.1 % 3.0 % U.S. state income tax rate change 0.2 % — % 0.8 % Excess tax benefits of equity compensation (1.5) % — % — % Executive compensation limitations 1.0 % 0.7 % 1.0 % Research and other tax credits (1.3) % (0.3) % (0.3) % Foreign derived intangible income deduction (0.9) % (0.7) % (0.9) % Other, net (0.3) % 0.1 % (0.1) % 21.1 % 23.9 % 24.5 % The Company's effective income tax rate for 2023 approximated the U.S. Federal statutory rate of 21%. Increases to the effective income tax rate due primarily to state taxes and executive compensation limitations, were materially offset by research tax credits, excess tax benefits of equity compensation and the foreign-derived intangible income deduction. The Company's effective income tax rate for 2022 and 2021 was higher compared to the U.S. Federal statutory rate of 21% due primarily to state taxes and executive compensation deduction limitations partially offset by research tax credits and the foreign-derived intangible income deduction. On August 16, 2022, the Inflation Reduction Act of 2022 (the "IRA") was signed into law. This legislation includes significant changes relating to tax, climate change, energy and health care. Among other provisions, the IRA introduces a corporate alternative minimum tax ("CAMT") on adjusted financial statement income of certain large corporations and a 1% excise tax on share repurchases. The Company is not currently subject to the CAMT which became effective for tax years beginning after December 31, 2022. The 1% excise tax is generally applicable to publicly traded corporations for the net value of certain stock that the corporation repurchases during the year and is also effective for tax years beginning after December 31, 2022. The impact of any excise tax imposed on the Company for share repurchases is generally accounted for as an equity transaction with no consequences to the Company's results in operations, and this provision of the law does not currently have a material impact on the Company's financial condition. The IRA also includes significant extensions, expansions and enhancements related to climate and energy tax credits designed to encourage investment in the adoption and expansion of renewable and alternative energy sources. The Company continues to evaluate these energy credit provisions of the law in relation to our sustainability and environmental, social and governance initiatives. The Pillar Two Global Anti-Base Erosion rules issued by t he Organization for Economic Co-operation and Development ("OECD"), a global policy forum, introduced a global minimum tax of 15% which would apply to multinational groups with consolidated financial statement revenue in excess of EUR 750 million. Nearly all OECD member jurisdictions have agreed in principle to adopt these provisions and numerous jurisdictions, including jurisdictions where the Company operates, have enacted these rules effective January 1, 2024. The Company has evaluated the impact of these rules and currently believes they will not have any material impact on financial results through 2026 due to certain transitional safe harbors. We will continue to monitor and refine our assessment as further guidance is made available. As of December 31, 2023 and 2022, there were no unrecognized tax benefits recorded by the Company. Although there are no unrecognized income tax benefits, when applicable, the Company’s policy is to report interest expense and penalties related to unrecognized income tax benefits in the income tax provision. The Company is subject to taxation in the United States and various states and foreign jurisdictions. The company closed its federal tax examination for periods 2017 through 2019 in January 2023. There are no current material tax examinations by state or foreign tax authorities; however, tax years 2019 through 2023 generally remain open under the statute of limitations and are subject to examination by the tax authorities. Deferred tax assets (liabilities) The tax effects of temporary differences which give rise to future income tax benefits and expenses are as follows: December 31, 2023 2022 Deferred tax assets: Net operating loss $ 36 $ 44 Accruals and reserves 2,943 4,197 Capitalization of research expenses 6,624 4,234 Inventory 9,394 1,094 Pension obligation 1,726 — Operating lease liability 23,031 27,551 Equity compensation 3,025 2,800 Total gross deferred tax assets 46,779 39,920 Less: Valuation Allowance — — Total deferred tax assets $ 46,779 $ 39,920 Deferred tax liabilities: Property, plant & equipment $ (160,071) $ (160,019) Intangibles (11,156) (11,164) Operating lease asset (22,981) (27,466) Other (3,630) (1,680) Total deferred tax liabilities (197,838) (200,329) Net deferred taxes $ (151,059) $ (160,409) The net deferred taxes are primarily related to U.S. operations. The Company has no material state net operating losses (NOL) carryforwards and no federal or state tax credit carryforwards remaining as of December 31, 2023. We believe that the state NOL carryforward and other deferred tax assets are more likely than not to be realized and we have not recorded a valuation allowance against the deferred tax assets. In February 2022, the Company acquired the stock of U.S. Amines. Under purchase accounting rules, a net deferred tax liability of approximately $10.1 million was recorded in the period related to the adjustment of the acquired assets and liabilities to fair value. See “Note 18. Acquisitions" for further details. As of December 31, 2023 and 2022, there was a $6.6 million and $4.2 million Deferred tax asset, respectively noted in the table above as Capitalization of research expenses. This relates to a provision within the Tax Cuts and Jobs Act, which requires, for tax purposes, the capitalization and amortization of research and development expenses effective for years beginning after December 31, 2021. There continues to be potential legislation surrounding this provision in the law that we monitor. On January 31, 2024, the U.S. House of Representatives approved a tax bill, which among other provisions, aims to reinstate 100% bonus depreciation for property placed in service in 2023 and through 2025 and to allow taxpayers to expense domestic research costs retroactively back to 2022 and prospectively through tax years beginning before 2026. Enactment remains uncertain and the Company continues to monitor the ongoing developments in the proposed legislation. The Company's accounting policy is to record the tax impacts of Global intangible low-taxed income as a period cost. As of December 31, 2023 and 2022, there were no material undistributed earnings of the Company's non-U.S. subsidiaries and, as such, we have not provided a deferred tax liability for undistributed earnings. |
Accounts and Other Receivables
Accounts and Other Receivables – Net | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts and Other Receivables – Net | Accounts and Other Receivables – Net December 31, 2023 2022 Accounts receivables $ 155,267 $ 171,923 Other 10,959 4,100 Total accounts and other receivables 166,226 176,023 Less – allowance for doubtful accounts (833) (594) Total accounts and other receivables – net $ 165,393 $ 175,429 The roll-forward of allowance for doubtful accounts are summarized in the table below: Balance at Beginning of Year Charged / (Credited) to Costs Charged to Other Accounts (1) Bad Debt Write-Offs (1) Balance at End of Year Year ended December 31, 2023 $ 594 $ 458 $ 47 $ (266) $ 833 Year ended December 31, 2022 1,495 (1,122) — 221 594 Year ended December 31, 2021 1,471 — — 24 1,495 (1) No Impact to Statement of Operations |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, 2023 2022 Raw materials $ 159,240 $ 126,060 Work in progress 54,936 64,669 Finished goods 61,891 60,711 Spares and other 30,931 28,892 306,998 280,332 Reduction to LIFO cost basis (95,167) (64,830) Total inventories $ 211,831 $ 215,502 Substantially all of the Company’s inventories at December 31, 2023 and December 31, 2022 are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. However, approximately 8% was valued at average cost using the first-in, first-out (“FIFO”) method at December 31, 2023. The excess of replacement cost over the carrying value of total inventories subject to LIFO was $65.3 million and $58.2 million at December 31, 2023 and December 31, 2022, respectively. |
Property, Plant, Equipment _ Ne
Property, Plant, Equipment – Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, Equipment – Net | Property, Plant, Equipment – Net December 31, 2023 2022 Land and improvements $ 11,761 $ 11,761 Machinery and equipment 1,621,636 1,561,714 Buildings and improvements 228,379 219,417 Construction in progress 66,875 34,761 1,928,651 1,827,653 Less – accumulated depreciation (1,076,009) (1,016,588) Total property, plant, equipment – net $ 852,642 $ 811,065 Capitalized interest was $3,375, $2,589 and $2,565 for the years ended December 31, 2023, 2022 and 2021, respectively. Depreciation expense was $67,528, $64,087 and $61,405 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases, Operating [Abstract] | |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases, which are reported as Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our 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 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 operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The term and length of the various agreements, as well as the timing of any renewals, will impact the ROU asset calculation and related liability. The components of lease expense were as follows: Years Ended December 31, 2023 2022 Finance lease cost: Amortization of right-of-use asset $ 932 $ 917 Interest on lease liabilities 106 53 Total finance lease cost 1,038 970 Operating lease cost 47,148 43,668 Short-term lease cost 5,415 5,338 Total lease cost $ 53,601 $ 49,976 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,196 $ 42,715 Operating cash flows from finance leases 106 49 Financing cash flows from finance leases 938 926 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 14,818 14,124 Finance leases 1,325 1,223 Supplemental balance sheet information related to leases was as follows: Years Ended December 31, 2023 2022 Operating Leases Operating lease right-of-use assets $ 95,805 $ 114,688 Operating lease liabilities – short term 32,053 37,472 Operating lease liabilities – long term 63,961 77,571 Total operating lease liabilities $ 96,014 $ 115,043 Finance Leases Property, plant and equipment – gross $ 3,528 $ 2,338 Accumulated depreciation (1,369) (572) Property, plant and equipment – net $ 2,159 $ 1,766 Accounts payable $ 797 $ 770 Other liabilities 1,400 988 Total finance lease liabilities $ 2,197 $ 1,758 Weighted Average Remaining Lease Term Operating leases 9.1 years 8.5 years Finance leases 3.3 years 2.9 years Weighted Average Discount Rate Operating leases 6.40 % 5.61 % Finance leases 6.71 % 4.04 % Maturities of lease liabilities Year Ending December 31, Operating Finance 2024 $ 37,517 $ 928 2025 25,730 673 2026 15,021 429 2027 8,211 309 2028 5,714 143 Thereafter 41,413 — Total lease payments 133,606 2,482 Less imputed interest (37,592) (285) Total $ 96,014 $ 2,197 |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases, which are reported as Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our 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 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 operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The term and length of the various agreements, as well as the timing of any renewals, will impact the ROU asset calculation and related liability. The components of lease expense were as follows: Years Ended December 31, 2023 2022 Finance lease cost: Amortization of right-of-use asset $ 932 $ 917 Interest on lease liabilities 106 53 Total finance lease cost 1,038 970 Operating lease cost 47,148 43,668 Short-term lease cost 5,415 5,338 Total lease cost $ 53,601 $ 49,976 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,196 $ 42,715 Operating cash flows from finance leases 106 49 Financing cash flows from finance leases 938 926 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 14,818 14,124 Finance leases 1,325 1,223 Supplemental balance sheet information related to leases was as follows: Years Ended December 31, 2023 2022 Operating Leases Operating lease right-of-use assets $ 95,805 $ 114,688 Operating lease liabilities – short term 32,053 37,472 Operating lease liabilities – long term 63,961 77,571 Total operating lease liabilities $ 96,014 $ 115,043 Finance Leases Property, plant and equipment – gross $ 3,528 $ 2,338 Accumulated depreciation (1,369) (572) Property, plant and equipment – net $ 2,159 $ 1,766 Accounts payable $ 797 $ 770 Other liabilities 1,400 988 Total finance lease liabilities $ 2,197 $ 1,758 Weighted Average Remaining Lease Term Operating leases 9.1 years 8.5 years Finance leases 3.3 years 2.9 years Weighted Average Discount Rate Operating leases 6.40 % 5.61 % Finance leases 6.71 % 4.04 % Maturities of lease liabilities Year Ending December 31, Operating Finance 2024 $ 37,517 $ 928 2025 25,730 673 2026 15,021 429 2027 8,211 309 2028 5,714 143 Thereafter 41,413 — Total lease payments 133,606 2,482 Less imputed interest (37,592) (285) Total $ 96,014 $ 2,197 |
Long-term Debt and Credit Agree
Long-term Debt and Credit Agreement | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Credit Agreement | Long-term Debt and Credit Agreement The Company’s debt at December 31, 2023 consisted of the following: Total term loan outstanding $ — Amounts outstanding under the Revolving Credit Facility 170,000 Total outstanding indebtedness 170,000 Less: amounts expected to be repaid within one year — Total long-term debt due after one year $ 170,000 At December 31, 2023, the Company assessed the Revolving Credit Facility (defined below) and determined that such amounts approximated fair value. The fair values of the debt are based on quoted inactive market prices and are therefore classified as Level 2 within the valuation hierarchy. Credit Agreement On September 30, 2016, the Company as the borrower, entered into a Credit Agreement with Bank of America, as administrative agent (the "Original Credit Agreement"), which was amended on February 21, 2018 pursuant to Amendment No. 1 to the Original Credit Agreement (the "First Amended and Restated Credit Agreement"), and further amended on February 19, 2020 pursuant to Amendment No. 2 to the First Amended and Restated Credit Agreement (after giving effect to the Second Amendment, the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement had a five-year term with a scheduled maturity date of February 21, 2023. On October 27, 2021, the Company completed a refinancing of the Second Amended and Restated Credit Agreement by entering into a new Credit Agreement (the “Credit Agreement”), among the Company, the lenders party thereto, the swing line lenders party thereto, the letter of credit issuers party thereto and Truist Bank, as administrative agent, which provides for a senior secured revolving credit facility in an aggregate principal amount of $500 million (the “Revolving Credit Facility”). The Revolving Credit Facility has a scheduled maturity date of October 27, 2026. The 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 establish a new class of 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 First Lien Secured Leverage Ratio (as defined in the Credit Agreement) would not be greater than 2.75 to 1.00, in each case, to the extent that any one or more lenders, whether or not currently party to the Credit Agreement, commits to be a lender for such amount or any portion thereof. With the cessation of LIBOR on June 30, 2023 and subject to the First Amendment to the Credit Agreement, dated as of June 27, 2023, the Eurodollar Rate was replaced with the Adjusted Term SOFR as an alternative benchmark rate for purposes of the Credit Agreement. The transition was effective July 1, 2023. Borrowings under the Credit Agreement bear interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.25% to 1.25% or the sum of an Adjusted Term SOFR rate plus a margin ranging from 1.25% to 2.25%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Credit Agreement). The Company is also required to pay a commitment fee in respect of unused commitments under the Revolving Credit Facility, if any, at a rate ranging from 0.15% to 0.35% per annum depending on the Company’s Consolidated Leverage Ratio. In conjunction with the cessation of LIBOR, as of July 1, 2023, the applicable margin under the Credit Agreement was 0.25% for base rate loans and 1.25% for Adjusted Term SOFR loans and the applicable commitment fee rate was 0.15% per annum. Substantially all tangible and intangible assets of the Company and its domestic subsidiaries are pledged as collateral to secure the obligations under the Credit Agreement. The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, make capital expenditures, merge or consolidate with others or dispose of assets. The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3.00 to 1.00 and to maintain a Consolidated Leverage Ratio of (i) 4.00 to 1.00 or less for the fiscal quarter ended December 31, 2021, through and including the fiscal quarter ending September 30, 2023 and (ii) 3.75 to 1.00 or less for each fiscal quarter thereafter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility. We were in compliance with all of our covenants at December 31, 2023 and through the date of the filing of this Annual Report on Form 10-K. |
Postretirement Benefit Obligati
Postretirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits Obligations | Postretirement Benefit Obligations Defined Contribution Benefit Plan On January 1, 2017, the Company established a defined contribution plan which covers all eligible U.S. employees. Our plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis to save for their future retirement needs. The Company matches 50% or 75% of the first 8% of contributions for employees covered by a collective bargaining agreement, dependent upon the terms of the respective collective bargaining agreement and matches 75% of the first 8% of the employee’s contribution election for all other employees. The plan’s matching contributions vest after three years of service with the Company. The Company may also provide an additional discretionary retirement savings contribution which is at the sole discretion of the Company. The Company made contributions to the defined contribution plan of $6,028, $5,920 and $5,874 for the years ended December 31, 2023, 2022 and 2021, respectively. Defined Benefit Pension Plan Prior to the Spin-Off certain of our employees participated in a defined benefit pension plan (the “Shared Plan”) sponsored by Honeywell which includes participants of other Honeywell subsidiaries and operations. We accounted for our participation in the Shared Plan as a multi-employer benefit plan. Accordingly, we did not record an asset or liability to recognize the funded status of the Shared Plan. The related pension expense was allocated based on annual service cost of active participants and reported within Costs of goods sold and Selling, general and administrative expenses in the Statements of Operations. As of the date of separation from Honeywell, these employees’ entitlement to benefits in Honeywell’s plans was frozen and they will accrue no further benefits in Honeywell’s plans. Honeywell retained the liability for benefits payable to eligible employees, which are based on age, years of service and average pay upon retirement. Upon consummation of the Spin-Off, AdvanSix employees who were participants in a Honeywell defined benefit pension plan became participants in the AdvanSix defined benefit pension plan (“AdvanSix Retirement Earnings Plan”). The AdvanSix Retirement Earnings Plan has the same benefit formula as the Honeywell defined benefit pension plan. Moreover, vesting service, benefit accrual service and compensation credited under the Honeywell defined benefit pension plan apply to the determination of pension benefits under the AdvanSix Retirement Earnings Plan. Benefits earned under the AdvanSix Retirement Earnings Plan shall be reduced by the value of benefits accrued under the Honeywell plans. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with the AdvanSix Retirement Earnings Plan. Change in benefit obligation: 2023 2022 2021 Benefit obligation at January 1, $ 80,174 $ 91,389 $ 89,137 Service Cost 4,906 6,860 7,817 Interest Cost 4,048 2,436 2,071 Actuarial losses (gains) 6,636 (18,665) (6,342) Benefits Paid (2,494) (1,846) (1,294) Benefit obligation at December 31, $ 93,270 $ 80,174 $ 91,389 Change in plan assets: Fair value of plan assets at January 1, 77,362 71,252 48,444 Actual return on plan assets 11,216 (12,044) 6,572 Benefits paid (2,494) (1,846) (1,294) Company Contributions — 20,000 17,530 Fair value of plan assets at December 31, 86,084 77,362 71,252 Under-Funded status of plan $ 7,186 $ 2,812 $ 20,137 Amounts recognized in Balance Sheet consists of: Accrued pension liabilities-current (1) $ 3,526 $ 2,812 $ 1,894 Accrued pension liabilities-noncurrent (2) 3,660 — 18,243 Total pension liabilities recognized $ 7,186 $ 2,812 $ 20,137 (1) Included in accrued liabilities on Balance Sheet (2) Included in postretirement benefit obligations on Balance Sheet Pension amount recognized in accumulated other comprehensive loss (income) associated with the Company's pension plan are as follows for: Years Ended December 31, 2023 2022 2021 Transition obligation $ — $ — $ — Prior service cost — — — Net actuarial (gain) loss (1,271) (1,087) 1,071 Pension amounts recognized in other comprehensive loss (income) $ (1,271) $ (1,087) $ 1,071 The components of net periodic benefit cost and other amounts recognized in other comprehensive income Years Ended December 31, 2023 2022 2021 Net periodic pension cost (benefit) Service cost $ 4,906 $ 6,860 $ 7,817 Interest cost 4,048 2,436 2,071 Expected return on plan assets (4,396) (4,463) (2,924) Recognition of actuarial losses — — 345 Net periodic Pension Cost 4,558 4,833 7,309 Other changes in benefits obligations recognized in other comprehensive loss (income) Actuarial losses (gains) (184) (2,157) (10,335) Total recognized in other comprehensive income (184) (2,157) (10,335) Total net periodic pension cost (benefit) recognized in Other comprehensive income $ 4,374 $ 2,676 $ (3,026) The estimated actuarial loss (gain) that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2023 and 2022 was nil. Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost for our pension plan were as follows: Key actuarial assumptions used to determine benefit obligations at December 31, 2023 2022 2021 Effective discount rate for benefit obligation 5.1% 5.3% 3.1% Expected annual rate of compensation increase 2.9% 2.9% 2.4% Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, 2023 2022 2021 Effective discount rate for service cost 5.3% 3.1% 2.9% Effective discount rate for interest cost 5.1% 2.7% 2.3% Expected long-term rate of return 6.5% 6.5% 6.8% Expected annual rate of compensation increase 2.9% 2.4% 2.4% The discount rate for our pension plan reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31 of a given year. To determine discount rates for our pension plan, we use a modeling process that involves matching the expected cash outflows of our benefit plan to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The long-term expected rate of return on funded assets is developed by using forward-looking long-term return assumptions for each asset class. Management incorporates the expected future investment returns on current and planned asset allocations using information from external investment consultants as well as management judgment. A single rate is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. The accumulated benefit obligation for our pension plan was $81.3 million, $69.3 million and $79.6 million as of December 31, 2023, 2022 and 2021, respectively. Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid during the following years: 2024 $ 3,526 2025 4,079 2026 4,657 2027 5,174 2028 5,618 Thereafter 35,010 Our general funding policy for our pension plan is to contribute amounts at least sufficient to satisfy regulatory funding standards. The Company made pension plan contributions sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan as follows: Years Ended December 31, 2023 2022 2021 1st Quarter $ — $ — $ 1,200 2nd Quarter — 10,000 3,620 3rd Quarter — 5,000 12,710 4th Quarter — 5,000 — Total $ — $ 20,000 $ 17,530 The Company expects to make pension plan contributions during 2024 sufficient to satisfy pension funding requirements of nil to $5.0 million as well as evaluate 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. The target asset allocation percent for the Company's pension plan assets is summarized as follows: Years Ended December 31, 2023 2022 Cash and cash equivalents 3% 2% US and non-US equity securities 64% 65% Fixed income / real estate / other securities 33% 33% Total Pension Assets 100% 100% Fixed income and other securities include investment grade securities covering the Treasury, agency, asset-backed, mortgage-backed and credit sectors of the U.S. Bond Market, as well as listed real estate companies and real estate investment trusts located in both developed and emerging markets. Fair Value at December 31, Fair Value Measurements 2023 2022 2021 Investments valued using NAV per share Emerging Markets Region Equities $ 4,839 $ 4,427 $ 4,249 International Region Equities 16,975 14,370 13,303 United States Equities 38,324 31,235 34,273 United States Bonds 22,987 20,115 17,357 Real Estate 1,391 1,563 599 Cash Fund 1,567 5,652 1,471 Total Pension Plan Assets at Fair Value $ 86,083 $ 77,362 $ 71,252 The pension plan assets are invested in collective investment trust funds as shown above. These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 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 Consolidated Balance Sheets include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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 and 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 with significant concentrations of trade accounts receivable – net at December 31, 2023 and December 31, 2022, respectively. 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 December 31, 2023 and 2022, we had zero contracts with notional amounts related to forward commodity agreements. Interest Rate Risk Management – The Company entered into an interest rate swap agreement for a total notional amount of $50 million to exchange floating for fixed rate interest payments for our LIBOR-based borrowings. The interest rate swap had a fair value of zero at inception, was effective July 31, 2019 and matured on February 21, 2023. In accordance with ASC 815, the Company designated the interest rate swap as a cash flow hedge of floating-rate borrowings. The interest rate swap converted the Company's interest rate payments on the first $50 million of variable-rate, 1-month LIBOR-based debt to a fixed interest rate. The interest rate swap involved 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. At December 31, 2023, the Company has no derivatives designated as hedging instruments under ASC 815 and has had no fair value adjustments related to cash flow hedging for the year ended December 31, 2023. For the year ended December 31, 2023, the Company reclassified a gain of $0.2 million on the cash flow hedge from Accumulated other comprehensive income ("AOCI") to earnings. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation 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 Balance Sheets, results of operations or cash flows. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the 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 be material for 2024. Unconditional Purchase Obligations In the normal course of business, the Company makes commitments to purchase goods with various vendors in the normal course of business which are consistent with our expected requirements and primarily relate to cumene, sulfur and natural gas as well as a long-term agreement for loading, unloading and the handling of a portion of our ammonium sulfate export volumes. Future minimum payments for these unconditional purchase obligations as of December 31, 2023 are as follows (dollars in thousands): Year Amount 2024 $ 432,233 2025 14,884 2026 7,695 2027 6,787 2028 5,940 Thereafter 71,280 $ 538,819 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustment Postretirement Benefit Obligations Adjustment Changes in Fair Value of Effective Cash Flow Hedges Accumulated Other Comprehensive Income (loss) Balance at December 31, 2020 $ (5,069) $ (8,729) $ (2,334) $ (16,132) Other comprehensive income (loss) (43) 10,334 519 10,810 Amounts reclassified from accumulated other comprehensive income (loss) — — 1,836 1,836 Income tax expense (benefit) — (2,487) (566) (3,053) Current period change (43) 7,847 1,789 9,593 Balance at December 31, 2021 (5,112) (882) (545) (6,539) Other comprehensive income (loss) 14 2,158 1,576 3,748 Amounts reclassified from accumulated other comprehensive income (loss) — — (671) (671) Income tax expense (benefit) — (518) (217) (735) Current period change 14 1,640 688 2,342 Balance at December 31, 2022 (5,098) 758 143 (4,197) Other comprehensive income (loss) 63 184 (197) 50 Amounts reclassified from accumulated other comprehensive income (loss) — — — — Income tax expense (benefit) — (44) 47 3 Current period change 63 140 (150) 53 Balance at December 31, 2023 $ (5,035) $ 898 $ (7) $ (4,144) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The details of the earnings per share calculations for the years ended December 31, 2023, 2022 and 2021 are as follows: Years Ended December 31, 2023 2022 2021 Basic Net Income $ 54,623 $ 171,886 $ 139,791 Weighted average common shares outstanding 27,302,254 27,969,436 28,152,876 EPS – Basic $ 2.00 $ 6.15 $ 4.97 Years Ended December 31, 2023 2022 2021 Diluted Net Income $ 54,623 $ 171,886 $ 139,791 Weighted average common shares outstanding – Basic 27,302,254 27,969,436 28,152,876 Dilutive effect of unvested equity awards 705,376 1,061,671 892,310 Weighted average common shares outstanding – Diluted 28,007,630 29,031,107 29,045,186 EPS – Diluted $ 1.95 $ 5.92 $ 4.81 Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents 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. For the years ended December 31, 2023, 2022 and 2021, stock options of 475,359, 172,808 and 400,205, respectively, were anti-dilutive and excluded from the computations of dilutive EPS. In September 2017, the Board of Directors (the "Board") adopted the AdvanSix Inc. Deferred Compensation Plan (the “DCP”), effective January 1, 2018. Pursuant to the DCP, our directors may elect to defer their cash retainer fees and allocate their deferrals to the AdvanSix stock unit fund. Each unit allocated under the stock unit fund represents the economic equivalent of one share of common stock. Units are paid out in shares of AdvanSix common stock upon distribution. As of December 31, 2023, a total of 75,669 units were allocated to the AdvanSix stock unit fund under the DCP. On May 4, 2018, the Company announced that 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 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. During 2023, the Company had repurchased 1,317,402 shares of common stock, including 261,364 shares withheld to cover the tax withholding obligations in connection with the vesting awards, for an aggregate of $45.9 million at a weighted average market price of $34.86 per share. The purchase of shares reduces the weighted average number of shares outstanding in the basic and diluted earnings per share calculations. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans On September 8, 2016, prior to the Spin-Off, our Board adopted, and Honeywell, as our sole stockholder, approved, the 2016 Stock Incentive Plan of AdvanSix Inc. and its Affiliates, and the material terms of performance-based compensation were approved by the Company's stockholders for tax purposes at our 2017 annual meeting of stockholders (the "Original Plan"). The Original Plan was amended and restated as the 2016 Stock Incentive Plan of AdvanSix Inc. and its Affiliates, as Amended and Restated, which was approved by stockholders of the Company at the Annual Meetings of Stockholders held on June 23, 2020 and subsequently on June 15, 2022 (the “Equity Plan”). As a result, no further grants will be made under the Original Plan. The Equity Plan provides for the grant of stock options, stock appreciation rights, performance awards, restricted stock units, restricted stock, other stock-based awards and non-share-based awards. The maximum aggregate number of shares of our common stock that may be issued under all stock-based awards granted under the Equity Plan is 2,615,100, subject to adjustment in accordance with the terms of the Equity Plan. Under the Equity Plan, the shares underlying all full-value awards, including those granted to non-employee directors, will be counted against the share reserve on a 1.55-for-one basis. Shares underlying stock option awards and SARs will be counted against the share reserve on a one-for-one basis. Under the terms of the Equity Plan, there were approximately 2,200,000 shares of AdvanSix common stock available for future grants of full-value awards at December 31, 2023. Restricted Stock Units – The Company may grant RSUs to key management employees and directors that generally vest over periods ranging from 1 to 3 years. In the event cash dividends are paid to shareholders of common stock, dividend equivalents accrue on all unvested RSUs. Dividend equivalents are subject to the same termination and vesting terms as the underlying RSU. Upon vesting, the RSUs and related dividend equivalents entitle the holder to receive one share of AdvanSix common stock for each RSU and dividend equivalent at time of vesting and are payable in AdvanSix common stock upon vesting. The fair value of all stock-settled RSUs is based upon the market price of the underlying common stock as of the grant date. The following table summarizes information about RSU activity related to the Equity Plan: Number of Restricted Stock Units (In Thousands) Weighted Average Grant Date Fair Value (Per Share) Non-vested at December 31, 2020 432 $ 18.94 Granted 153 29.64 Vested (115) 23.51 Forfeited (28) 11.07 Non-vested at December 31, 2021 442 22.11 Granted 129 39.44 Vested (110) 30.00 Forfeited (65) 22.25 Non-vested at December 31, 2022 396 25.53 Granted 178 $ 34.75 Vested (218) $ 15.83 Forfeited (19) $ 38.92 Non-vested at December 31, 2023 337 $ 35.97 As of December 31, 2023, there was approximately $5.8 million of total unrecognized compensation cost related to non-vested RSUs granted under the Equity Plan which is expected to be recognized over a weighted-average period of 1.2 years. The following table summarizes information about the income statement impact from RSUs for the Years Ended December 31, 2023, 2022 and 2021: Years Ended December 31, 2023 2022 2021 Compensation expense $ 4,049 $ 3,471 $ 3,544 Future income tax benefit recognized $ 1,107 $ 927 $ 887 Stock Options – The exercise price, term and other conditions applicable to each option granted under the Equity Plan are generally determined by the Compensation Committee of the Board. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock on that date. The fair value is recognized as an expense over the employee’s requisite service period (generally the vesting period of the award). Options generally vest over periods ranging from 1 to 3 years. The following table summarizes information about the income statement impact from stock options for the years ended December 31, 2023, 2022 and 2021. Years Ended December 31, 2023 2022 2021 Compensation expense $ 1,651 $ 1,467 $ 1,410 Future income tax benefit recognized $ 1,215 $ 1,033 $ 1,030 The fair value related to stock options granted was determined using Black-Scholes option pricing model and the weighted average assumptions are shown in the table below: Years Ended December 31, Key Black-Scholes Assumptions 2023 2022 2021 Risk-free interest rate 4.1% 1.8% .8% Expected term (years) 6 6 6 Volatility 46.5% 40.2% 35.6% Dividend yield 1.4% 1.3% — Fair value per stock option $18.04 $14.01 $10.34 The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Volatility is determined based on the average volatility of peer companies with similar option terms. The expected term is determined using a simplified approach, calculated as the mid-point between the vesting period and the contractual term of the award. The risk-free interest rate is determined based upon the yield of an outstanding U.S. Treasury note with a term equal to the expected term of the option granted. The following table summarizes information about stock option activity related to the Equity Plan: Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 759 $ 25.44 7.97 $ — Exercisable at December 31, 2020 326 $ 32.16 6.84 $ — Granted 160 29.21 Exercised 20 27.55 Forfeited (33) 21.29 Expired — — Outstanding at December 31, 2021 906 26.13 7.42 $ 19,123 Exercisable at December 31, 2021 443 $ 29.42 6.54 $ 7,895 Granted 123 39.13 Exercised (69) 24.23 Forfeited (21) 27.81 Expired (56) 30.94 Outstanding at December 31, 2022 883 27.97 6.81 $ 8,870 Exercisable at December 31, 2022 578 $ 27.49 6.06 $ 6,082 Granted 86 41.15 Exercised (9) 28.14 Forfeited — — Expired (3) 33.27 Outstanding at December 31, 2023 957 29.26 6.17 $ 4,446 Exercisable at December 31, 2023 728 $ 26.47 5.46 $ 4,412 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received had all option holders exercised their in-the-money options at year-end. The amount changes based on the fair market value of the Company’s stock. As of December 31, 2023, there was $1.2 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of approximately 0.8 years. Performance Stock Units – The Company may issue PSUs to key senior management employees which, upon vesting, convert one-for-one to AdvanSix common stock. In the event cash dividends are paid to shareholders of common stock, dividend equivalents will accrue on all unvested PSUs. Dividend equivalents are subject to the same termination, vesting and performance terms as the underlying PSU award. The actual number of shares an employee receives for each PSU and related dividend equivalent depends on the Company’s performance against certain metrics, including cumulative Earnings Per Share and average annual Return on Investment goals over three-year performance and vesting periods. Commencing with the 2021 awards, a market-based factor has the potential to increase or decrease the performance award by 10%. This metric is calculated based upon how the Company's Total Shareholder Return compared to that of its peer group over the vesting period. Each grantee is granted a target level of PSUs and may earn between 0% and 200% of the target level depending on the Company’s performance against the financial goals. The following table summarizes information about PSU activity related to the Equity Plan: Number of Performance Stock Units (In Thousands) Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 347 20.77 Granted 128 29.21 Vested (6) 9.47 Forfeited (65) 32.25 Non-vested at December 31, 2021 404 20.04 Granted 101 41.63 Vested (78) 30.69 Forfeited (32) 22.30 Non-vested at December 31, 2022 395 23.04 Granted 93 42.63 Vested (193) 14.29 Forfeited (1) 38.84 Non-vested at December 31, 2023 294 $ 37.77 The fair value of the PSUs is principally based on the fair market value of the Company’s stock at the grant date. The number of underlying shares to be issued will be based on actual performance achievement over the performance period. The accrual of compensation costs is based on our estimate of the probable expected value of the award. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over a vesting period of 36 months. Changes in expected probable value are recorded as compensation expense on a catch-up basis in the month in which the change is identified. Any remaining balance is amortized monthly into compensation expense on a straight-line basis over the remaining vesting period. The Company assumes that forfeitures will be minimal, and estimates forfeitures at time of issuance, which results in a reduction in compensation expense. As the payout of PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The Company initiated a dividend during the fourth quarter of 2021. As of December 31, 2023, there was approximately $3.3 million of total unrecognized compensation cost related to non-vested PSUs granted under the Equity Plan which is expected to be recognized over a weighted-average period of 1.1 years. The following table summarizes information about the income statement impact from PSUs for the year ended December 31, 2023, 2022 and 2021. Years Ended December 31, 2023 2022 2021 Compensation expense $ 2,612 $ 5,343 $ 6,345 Future income tax benefit recognized $ 703 $ 840 $ 667 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets with finite lives acquired through a business combination are recorded at fair value, less accumulated amortization. Customer relationships and trade-names are amortized on a straight-line basis over their expected useful lives of 15 to 20 years and 5 years, respectively. Goodwill There was no change in the carrying amount of goodwill for the year ended December 31, 2023. Finite-Lived Intangible Assets Intangible assets subject to amortization were as follows: December 31, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ (3,760) $ 33,060 $ 36,820 $ (1,854) $ 34,966 Licenses 18,451 (5,996) 12,455 18,451 (5,074) 13,377 Trade names 1,100 (422) 678 1,100 (201) 899 Total $ 56,371 $ (10,178) $ 46,193 $ 56,371 $ (7,129) $ 49,242 For the years ended December 31, 2023 and 2022, the Company recorded amortization expense on intangible assets of $3.0 million and $2.7 million, respectively. The estimated aggregate amortization expense for each of the next five years is as follows: Year Amount 2024 $ 3,049 2025 3,049 2026 3,049 2027 2,866 2028 2,829 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions In February 2022, the Company acquired the stock of U.S. Amines, a leading North American producer of alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals for a purchase price of approximately $97.5 million, net of cash acquired. U.S. Amines employs approximately 50 people in the United States at manufacturing facilities in Bucks, AL and Portsmouth, VA. In accordance with ASC 805, this transaction has been accounted for as a business combination. The Company used its best estimates and assumptions for items including, but not limited to, corporate name recognition, strong, long-lasting customer relationships and potential revenue growth from existing customers to assign fair value to the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date based on the information that was available as of the acquisition date. The transaction resulted in the Company acquiring tangible assets and finite-lived intangible assets, comprised of customer relationships (approximately $33 million) and trademarks (approximately $1 million) which reflect the value of the benefit derived from incremental revenue and related cash flows as a direct result of the customer relationships and name brand. These intangible assets are being amortized on a straight-line basis over their estimated useful lives of 20 years and 5 years, respectively. The residual amount of the purchase price in excess of the value of the tangible and definite-lived intangible assets was allocated to goodwill. Factors considered when identifying goodwill included, but are not limited to, a complementary business model and formula pricing mechanisms with a business that is adjacent to our ammonium sulfate adjuvant and solvent businesses, the enhancement of the Company’s value chain through internal supply of products and raw materials, a new unique platform in the agrochemicals space as well as a number of opportunities to support further penetration into high-value applications. The U.S. Amines acquisition was not significant to our Consolidated Financial Statements, therefore, pro forma and post-acquisition results of operations have not been presented. The following table summarizes the allocation of the purchase price consideration as of the acquisition date for the transaction noted above: Initially Reported as of March 31, 2022 (Preliminary) Measurement Period Adjustment December 31, 2022 Cash $ 22,887 $ — $ 22,887 Accounts receivable 15,117 — 15,117 Inventories 11,937 (3,048) 8,889 Other current assets 1,876 (167) 1,709 Property, plant and equipment 13,600 (8) 13,592 Intangible assets 31,400 2,600 34,000 Accounts payable (1,487) (88) (1,575) Accrued liabilities (2,760) — (2,760) Deferred income taxes (12,243) 2,127 (10,116) Net tangible and intangible assets 80,327 1,416 81,743 Goodwill 40,271 (1,671) 38,600 Total purchase price $ 120,598 $ (255) $ 120,343 Total purchase price $ 120,598 $ (255) $ 120,343 Less: Cash acquired (22,887) — (22,887) Total purchase price, net of cash received 97,711 (255) 97,456 Estimated working capital adjustment due from seller 878 (878) — Net cash paid $ 98,589 $ (1,133) $ 97,456 Goodwill deductible for tax purposes $ — $ — $ — The preliminary amounts presented in the table above pertained to the preliminary purchase price allocation reported in the Company's Form 10-Q for the first quarter ended March 31, 2022. The measurement period adjustment was primarily associated with the inventory valuation and a change to the deferred income tax liability. The Company does not believe that the measurement period adjustment had a material impact on its consolidated statements of operations, balance sheets or cash flows in the prior period previously reported. In January 2021, the Company acquired certain assets associated with ammonium sulfate packaging, warehousing and logistics services in Virginia from Commonwealth Industrial Services, Inc. ("CIS") for approximately $9.5 million. |
Supplier Finance Programs
Supplier Finance Programs | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Supplier Finance Programs The Company has entered into a supply chain finance program with a financial intermediary providing participating suppliers the option to be paid by the intermediary earlier than the original invoice due date. AdvanSix’s responsibility is limited to making payments to the intermediary based upon payment terms negotiated with the suppliers, regardless of whether the intermediary pays the supplier in advance of the original due date. The Company’s payment terms with suppliers are consistent, regardless of whether a vendor participates in the supply chain finance program or not. All related agreements are terminable by either party upon at least 30 days’ notice. The total amount due to the financial intermediaries to settle supplier invoices under all of its supplier finance programs was approximately $17 million at December 31, 2023 and 2022. These amounts outstanding are included in Accounts payable |
Other Non-operating (Income) Ex
Other Non-operating (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Non-operating (Income) Expense, Net | Other Non-operating (Income) Expense, Net For the year ended December 31, 2023, Other non-operating (income) expense, net primarily includes a pre-tax gain of approximately $11.4 million related to the Company's exit from the Oben alliance, the unfavorable impact to pre-tax income of approximately $4.5 million associated with a licensee of certain legacy ammonium sulfate fertilizer technology assets closing its facility and the unfavorable impact to pre-tax income of approximately $2.4 million from the exit of certain low-margin oximes products. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As announced on February 16, 2024, the Board declared a quarterly cash dividend of $0.160 per share on the Company's common stock, payable on March 18, 2024 to stockholders of record as of the close of business on March 4, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income | $ 54,623 | $ 171,886 | $ 139,791 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Achilles B. Kintiroglou [Member] | ||
Trading Arrangements, by Individual | ||
Name | Achilles B. Kintiroglou | |
Title | Senior Vice President, General Counsel and Corporate Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 9, 2023 | |
Arrangement Duration | 477 days | |
Erin N. Kane [Member] | ||
Trading Arrangements, by Individual | ||
Name | Erin N. Kane | |
Title | President and Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 8, 2023 | |
Arrangement Duration | 455 days | |
Aggregate Available | 60,000 | 60,000 |
Achilles B. Kintiroglou, Shares [Member] | Achilles B. Kintiroglou [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 17,518 | 17,518 |
Achilles B. Kintiroglou, Stock Option [Member] | Achilles B. Kintiroglou [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 8,130 | 8,130 |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Dec. 31, 2023 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Not Adopted | On November 9, 2023, Achilles B. Kintiroglou, the Company’s Senior Vice President, General Counsel and Corporate Secretary, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plan provides for the sale of 17,518 shares and 8,130 stock options. Mr. Kintiroglou’s plan will expire on February 28, 2025. On December 8, 2023, Erin N. Kane, the Company’s President and Chief Executive Officer, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plan provides for the sale of 60,000 shares. Ms. Kane’s plan will expire on March 7, 2025. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles – The financial statements and accompanying Notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of AdvanSix’s significant accounting policies. |
Principles of Consolidation | Principles of Consolidation – The Consolidated Financial Statements include the accounts of AdvanSix and all of its subsidiaries in which a controlling financial interest is maintained. Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Fair Value Measurement | Fair Value Measurement – ASC 820, Fair Value Measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Financial Accounting Standards Board's ("FASB") guidance classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability |
Derivative Financial Instruments | Derivative Financial Instruments – We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. For derivative instruments that are designated and qualify as a net investment hedge, the derivative’s gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. |
Commodity Price Risk Management | Commodity Price Risk Management – |
Inventories | Inventories – Substantially all of the Company's inventories are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. The Company includes spare and other parts in inventory which are used in support of production or production facilities operations and are valued based on weighted average cost. |
Property, Plant, Equipment | Property, Plant, Equipment – Property, plant, equipment asset values are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 40 years for buildings and improvements and 3 to 35 years for machinery and equipment. Our machinery and equipment includes (1) assets used in short production cycles or subject to high corrosion, such as instrumentation, controls and insulation systems with useful lives of 3 to 30 years, (2) standard plant assets, such as boilers and railcars, with useful lives ranging from 3 to 30 years and (3) major process equipment that can be used for long durations with effective preventative maintenance and repair, such as cooling towers, compressors, tanks and turbines with useful lives ranging from 3 to 35 years. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. |
Long-Lived Assets | Long-Lived Assets – The Company evaluates the recoverability of the carrying amount of long-lived assets (including property, plant and equipment and intangible assets with determinable lives) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates events or changes in circumstances based on several factors including operating results, business plans and forecasts, general and industry trends, and economic projections and anticipated cash flows. An impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset exceeds its fair value and are recognized in the Consolidated Statements of Operations. The Company also evaluates the estimated useful lives of long-lived assets if circumstances warrant and revises such estimates based on current events. |
Goodwill | Goodwill |
Finite-Lived Intangible Assets | Finite-Lived Intangible Assets – Other intangible assets with determinable lives consist of customer relationships, trademarks, patents and other intangibles and are amortized over their estimated useful lives, ranging from 5 to 20 years. As described in "Note 18. Acquisitions" to the consolidated financial statements included in Item 8 of this Form 10-K, in February 2022, the Company acquired U.S. Amines Limited ("U.S. Amines") for a purchase price of approximately $97 million, net of cash acquired. The acquisition included intangible assets of $34 million consisting primarily of customer relationships, which reflects the value of the benefit derived from incremental revenue and related cash flows that are a direct result of the customer relationships in the amount of approximately $33 million. The fair value for the customer relationships intangible asset was determined by management using the multi-period excess earnings method. Management applied significant judgments and assumptions in determining the fair value of the customer relationships including gross margin rates, the discount rate, and customer attrition rate. |
Revenue Recognition | Revenue Recognition – The Company recognizes revenue upon the transfer of control of goods or services to customers at amounts that reflect the consideration expected to be received. AdvanSix primarily recognizes revenues when title and control of the product transfers from the Company to the customer. Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs of goods sold in the Consolidated Statements of Operations. Sales of our products to customers are made under a purchase order, and in certain cases in accordance with the terms of a master services agreement. These agreements typically contain formula-based pass-through pricing tied to key feedstock materials and volume ranges, but often do not specify the goods, including the quantities thereof, to be transferred. Certain master services agreements (including with respect to our largest customer) may contain minimum purchase volumes which can be satisfied by the customer on a periodic basis by choosing from various products offered by the Company. In these cases, a performance obligation is created when a customer submits a purchase order for a specific product at a specified price, typically providing for delivery within the next 60 days. Management considers the performance obligation with respect to such purchase order satisfied at the point in time when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and risk of loss to the customer. Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping or destination point terms pursuant to the arrangement with the customer. Variable consideration is estimated for future volume rebates and early pay discounts on certain products and product returns. The Company records variable consideration as an adjustment to the sale transaction price. Since variable consideration is generally settled within one year, the time value of money is not significant. The Company applies the practical expedient in Topic 606 and does not include disclosures regarding remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less. |
Environmental | Environmental – The Company accrues costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. |
Deferred Income and Customer Advances | Deferred Income and Customer Advances – AdvanSix typically has an annual pre-buy program for ammonium sulfate that is classified as deferred income and customer advances in the Consolidated Balance Sheets. Customers pay cash in advance to reserve capacity for ammonium sulfate to guarantee product availability during peak planting season. The Company recognizes a customer advance when cash is received for the advanced buy. Revenue is then recognized and the customer advance is relieved upon title transfer of ammonium sulfate. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts – Trade accounts receivables are recorded at the invoiced amount as a result of transactions with customers. AdvanSix maintains allowances for doubtful accounts for estimated losses based on a customer’s inability to make required payments. AdvanSix estimates anticipated losses from doubtful accounts based on days past due, as measured from the contractual due date and historical collection history and incorporates changes in economic conditions that may not be reflected in historical trends such as customers in bankruptcy, liquidation or reorganization. Receivables are written-off against the allowance for doubtful accounts when they are determined uncollectible. Such determination includes analysis and consideration of the particular conditions of the account, including time intervals since last collection, customer performance against agreed upon payment plans, success of outside collection agencies activity, solvency of customer and any bankruptcy proceedings. 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. |
Research and Development | Research and Development |
Debt Issuance Costs | Debt Issuance Costs |
Stock-Based Compensation Plans | Stock-Based Compensation Plans – The principal awards issued under our stock-based compensation plans, which are described in "Note 16. Stock-Based Compensation Plans" to the Consolidated Financial Statements included in Item 8 of this Form 10-K, are non-qualified stock options, performance stock units and restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest, including the impact of the Company's anticipated performance against certain metrics for performance stock units, is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expenses. Estimates of future performance are utilized to determine the underlying expense for shares expected to vest. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. |
Dividend Equivalents | Dividend Equivalents – If a dividend is authorized by the Board for stockholders of common stock, holders of unvested RSUs and unvested PSUs will have their accounts credited with dividend equivalents in the form and in an amount equal to the dividend that the holder would have received had the shares underlying the RSUs and PSUs been distributed at the time that such dividend was paid. Dividend equivalents are subject to the same vesting, forfeiture, performance and payment restrictions as the respective equity award for which it is attributable. Since the dividend equivalents are forfeitable, there is no impact on the basic earnings per share calculation. |
Pension Benefits | Pension Benefits – We have a defined benefit plan covering certain employees primarily in the U.S. The benefits are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense. Differences between actual and expected results or changes in the value of defined benefit obligations and fair value of plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods when net actuarial gains or losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s projected benefit obligation. |
Foreign Currency Translation | Foreign Currency Translation – Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. |
Income Taxes | Income Taxes – We account for income taxes pursuant to the asset and liability method which requires us to recognize current tax liabilities or receivables for the amount of taxes we estimate are payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. We adopted the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in our income tax returns are recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. Our policy is to classify tax related interest and penalties, if any, as a component of income tax expense. No interest or penalties related to unrecognized income tax benefits were recorded during the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, no liability for unrecognized tax benefits was required to be reported. We do not expect any significant changes in our unrecognized tax benefits in the next year. |
Leases | Leases – The Company enters into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. Operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. An arrangement is considered to be a lease if the agreement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases, which are reported as Operating lease right-of-use assets, and Operating lease liabilities – short-term and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included as a component of Property, plant and equipment – net, Accounts payable and Other liabilities in our Consolidated Balance Sheets. The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019 and has elected the following practical expedients available in Topic 842: • the package of three expedients which allows the Company to not re-assess (i) whether any expired or existing contracts are, or contain, leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases; • the short-term lease practical expedient, which allows the Company to exclude leases with an initial term of 12 months or less ("short-term leases") from recognition in the unaudited Consolidated Balance Sheets; • the bifurcation of lease and non-lease components practical expedients, which did not require the Company to bifurcate lease and non-lease components for real estate leases; and • the land easements practical expedient, which allows the Company to carry forward the accounting treatment for land easements on existing agreements. |
Earnings Per Share | Earnings Per Share – Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. |
Treasury Stock | Treasury Stock – The Company has elected to account for treasury stock purchased under the constructive retirement method. For shares repurchased in excess of par, the Company will allocate the excess value to additional paid-in capital. |
Use of Estimates | Use of Estimates – The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and related disclosures in the accompanying Notes. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of changes are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. |
Reclassifications | Reclassifications – Certain prior period amounts have been reclassified for consistency with the current period presentation. All reclassified amounts have been immaterial. |
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. On December 13, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU require that public business entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that are equal to or greater than 5 percent of the amount computed by multiplying pretax income (or loss) by the applicable statutory income tax rate. The amendments also require that the Company disclose the following (net of refunds received): (1) the amount of income taxes paid disaggregated by federal (national), state, and foreign taxes and (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid. Additionally, the amendments in this update eliminate the requirement for all entities to disclose the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months or to make a statement that an estimate of the range cannot be made, and remove the requirement to disclose the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to subsidiaries and corporate joint ventures. The guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption of the amendments in this update are permitted for annual financial statements that have not yet been issued. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The amendments in this ASU require incremental disclosures about the Company's reportable segments, but do not change the definition of a segment or the guidance for determining reportable segments. The incremental disclosures should include (1) significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss, (2) an amount for other segment items by reportable segment and a description of its composition, (3) profit or loss and assets currently required by Topic 280 in interim periods, (4) clarification if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources and (5) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The guidance is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Additionally, public entities should apply the amendments retrospectively to all prior periods presented in the financial statements, unless impractical. The Company is evaluating the pronouncement and does not expect adoption to have a material impact on the Company's consolidated financial position or results of operations. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments in this ASU require that a buyer in a supplier finance program disclose sufficient quantitative and qualitative information about its supplier finance programs to allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. On a retrospective basis, for each annual reporting period, an entity should disclose the key terms of the program, including a description of the payment terms, assets pledged as security or other forms of guarantees, the confirmed amount outstanding that remains unpaid, a description of where the obligations are presented in the balance sheet and a roll-forward of those obligations confirmed as well as the amount of obligations subsequently paid. In each interim reporting period, an entity should disclose the amount of confirmed obligations outstanding. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll-forward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption of the amendments in this update is permitted. The Company adopted ASU 2022-04, effective January 1, 2023, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s revenue by product line, and related approximate percentage of total sales for 2023, 2022 and 2021 were as follows: Twelve Months Ended December 31, 2023 and 2022 2023 2022 2021 Nylon $ 356,632 23% $ 485,241 25% $ 422,897 25% Caprolactam 298,375 19% 319,863 16% 316,132 19% Ammonium Sulfate 440,915 29% 629,021 33% 401,092 24% Chemical Intermediates 437,677 29% 511,515 26% 544,504 32% $ 1,533,599 100% $ 1,945,640 100% $ 1,684,625 100% The Company’s revenues by geographic area, and related approximate percentage of total sales for 2023, 2022 and 2021 were as follows: Twelve Months Ended December 31, 2023 and 2022 2023 2022 2021 United States $ 1,250,094 82 % $ 1,622,537 83 % $ 1,382,464 82 % International 283,505 18 % 323,103 17 % 302,161 18 % Total $ 1,533,599 100 % $ 1,945,640 100 % $ 1,684,625 100 % |
Summary of Deferred Income and Customer Advances | Below is a roll-forward of Deferred income and customer advances for the twelve months ended December 31, 2023: Deferred Income and Customer Advances 2023 Opening balance January 1, 2023 $ 34,430 Additional cash advances 21,916 Less amounts recognized in revenues (40,668) Ending balance December 31, 2023 $ 15,678 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Years Ended December 31, 2023 2022 2021 Income before taxes U.S. $ 69,055 $ 225,640 $ 184,963 Non-U.S. 168 151 153 $ 69,223 $ 225,791 $ 185,116 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of: Years Ended December 31, 2023 2022 2021 Current Provision (benefit): Federal $ 20,707 $ 31,165 $ 34,079 State 3,159 6,463 6,504 Non-U.S. 47 48 35 Total current provision (benefit) $ 23,913 $ 37,676 $ 40,618 Deferred Provision (benefit): Federal $ (8,886) $ 13,874 $ 2,256 State (427) 2,355 2,445 Non-U.S. — — 6 Total deferred provision (benefit) (9,313) 16,229 4,707 Total income tax expense (benefit) $ 14,600 $ 53,905 $ 45,325 |
Schedule of Effective Income Tax Rate Reconciliation | The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: Years Ended December 31, 2023 2022 2021 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes 2.9 % 3.1 % 3.0 % U.S. state income tax rate change 0.2 % — % 0.8 % Excess tax benefits of equity compensation (1.5) % — % — % Executive compensation limitations 1.0 % 0.7 % 1.0 % Research and other tax credits (1.3) % (0.3) % (0.3) % Foreign derived intangible income deduction (0.9) % (0.7) % (0.9) % Other, net (0.3) % 0.1 % (0.1) % 21.1 % 23.9 % 24.5 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to future income tax benefits and expenses are as follows: December 31, 2023 2022 Deferred tax assets: Net operating loss $ 36 $ 44 Accruals and reserves 2,943 4,197 Capitalization of research expenses 6,624 4,234 Inventory 9,394 1,094 Pension obligation 1,726 — Operating lease liability 23,031 27,551 Equity compensation 3,025 2,800 Total gross deferred tax assets 46,779 39,920 Less: Valuation Allowance — — Total deferred tax assets $ 46,779 $ 39,920 Deferred tax liabilities: Property, plant & equipment $ (160,071) $ (160,019) Intangibles (11,156) (11,164) Operating lease asset (22,981) (27,466) Other (3,630) (1,680) Total deferred tax liabilities (197,838) (200,329) Net deferred taxes $ (151,059) $ (160,409) |
Accounts and Other Receivable_2
Accounts and Other Receivables – Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables Net | December 31, 2023 2022 Accounts receivables $ 155,267 $ 171,923 Other 10,959 4,100 Total accounts and other receivables 166,226 176,023 Less – allowance for doubtful accounts (833) (594) Total accounts and other receivables – net $ 165,393 $ 175,429 |
Schedule of Allowance for Doubtful Accounts | The roll-forward of allowance for doubtful accounts are summarized in the table below: Balance at Beginning of Year Charged / (Credited) to Costs Charged to Other Accounts (1) Bad Debt Write-Offs (1) Balance at End of Year Year ended December 31, 2023 $ 594 $ 458 $ 47 $ (266) $ 833 Year ended December 31, 2022 1,495 (1,122) — 221 594 Year ended December 31, 2021 1,471 — — 24 1,495 (1) No Impact to Statement of Operations |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | December 31, 2023 2022 Raw materials $ 159,240 $ 126,060 Work in progress 54,936 64,669 Finished goods 61,891 60,711 Spares and other 30,931 28,892 306,998 280,332 Reduction to LIFO cost basis (95,167) (64,830) Total inventories $ 211,831 $ 215,502 |
Property, Plant, Equipment _ _2
Property, Plant, Equipment – Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | December 31, 2023 2022 Land and improvements $ 11,761 $ 11,761 Machinery and equipment 1,621,636 1,561,714 Buildings and improvements 228,379 219,417 Construction in progress 66,875 34,761 1,928,651 1,827,653 Less – accumulated depreciation (1,076,009) (1,016,588) Total property, plant, equipment – net $ 852,642 $ 811,065 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases, Operating [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Years Ended December 31, 2023 2022 Finance lease cost: Amortization of right-of-use asset $ 932 $ 917 Interest on lease liabilities 106 53 Total finance lease cost 1,038 970 Operating lease cost 47,148 43,668 Short-term lease cost 5,415 5,338 Total lease cost $ 53,601 $ 49,976 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,196 $ 42,715 Operating cash flows from finance leases 106 49 Financing cash flows from finance leases 938 926 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 14,818 14,124 Finance leases 1,325 1,223 |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows: Years Ended December 31, 2023 2022 Operating Leases Operating lease right-of-use assets $ 95,805 $ 114,688 Operating lease liabilities – short term 32,053 37,472 Operating lease liabilities – long term 63,961 77,571 Total operating lease liabilities $ 96,014 $ 115,043 Finance Leases Property, plant and equipment – gross $ 3,528 $ 2,338 Accumulated depreciation (1,369) (572) Property, plant and equipment – net $ 2,159 $ 1,766 Accounts payable $ 797 $ 770 Other liabilities 1,400 988 Total finance lease liabilities $ 2,197 $ 1,758 Weighted Average Remaining Lease Term Operating leases 9.1 years 8.5 years Finance leases 3.3 years 2.9 years Weighted Average Discount Rate Operating leases 6.40 % 5.61 % Finance leases 6.71 % 4.04 % |
Operating Lease, Liability, Maturity | Maturities of lease liabilities Year Ending December 31, Operating Finance 2024 $ 37,517 $ 928 2025 25,730 673 2026 15,021 429 2027 8,211 309 2028 5,714 143 Thereafter 41,413 — Total lease payments 133,606 2,482 Less imputed interest (37,592) (285) Total $ 96,014 $ 2,197 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities Year Ending December 31, Operating Finance 2024 $ 37,517 $ 928 2025 25,730 673 2026 15,021 429 2027 8,211 309 2028 5,714 143 Thereafter 41,413 — Total lease payments 133,606 2,482 Less imputed interest (37,592) (285) Total $ 96,014 $ 2,197 |
Long-term Debt and Credit Agr_2
Long-term Debt and Credit Agreement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s debt at December 31, 2023 consisted of the following: Total term loan outstanding $ — Amounts outstanding under the Revolving Credit Facility 170,000 Total outstanding indebtedness 170,000 Less: amounts expected to be repaid within one year — Total long-term debt due after one year $ 170,000 |
Postretirement Benefit Obliga_2
Postretirement Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with the AdvanSix Retirement Earnings Plan. Change in benefit obligation: 2023 2022 2021 Benefit obligation at January 1, $ 80,174 $ 91,389 $ 89,137 Service Cost 4,906 6,860 7,817 Interest Cost 4,048 2,436 2,071 Actuarial losses (gains) 6,636 (18,665) (6,342) Benefits Paid (2,494) (1,846) (1,294) Benefit obligation at December 31, $ 93,270 $ 80,174 $ 91,389 Change in plan assets: Fair value of plan assets at January 1, 77,362 71,252 48,444 Actual return on plan assets 11,216 (12,044) 6,572 Benefits paid (2,494) (1,846) (1,294) Company Contributions — 20,000 17,530 Fair value of plan assets at December 31, 86,084 77,362 71,252 Under-Funded status of plan $ 7,186 $ 2,812 $ 20,137 Amounts recognized in Balance Sheet consists of: Accrued pension liabilities-current (1) $ 3,526 $ 2,812 $ 1,894 Accrued pension liabilities-noncurrent (2) 3,660 — 18,243 Total pension liabilities recognized $ 7,186 $ 2,812 $ 20,137 (1) Included in accrued liabilities on Balance Sheet (2) Included in postretirement benefit obligations on Balance Sheet |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Pension amount recognized in accumulated other comprehensive loss (income) associated with the Company's pension plan are as follows for: Years Ended December 31, 2023 2022 2021 Transition obligation $ — $ — $ — Prior service cost — — — Net actuarial (gain) loss (1,271) (1,087) 1,071 Pension amounts recognized in other comprehensive loss (income) $ (1,271) $ (1,087) $ 1,071 |
Schedule of Net Benefit Costs | The components of net periodic benefit cost and other amounts recognized in other comprehensive income Years Ended December 31, 2023 2022 2021 Net periodic pension cost (benefit) Service cost $ 4,906 $ 6,860 $ 7,817 Interest cost 4,048 2,436 2,071 Expected return on plan assets (4,396) (4,463) (2,924) Recognition of actuarial losses — — 345 Net periodic Pension Cost 4,558 4,833 7,309 Other changes in benefits obligations recognized in other comprehensive loss (income) Actuarial losses (gains) (184) (2,157) (10,335) Total recognized in other comprehensive income (184) (2,157) (10,335) Total net periodic pension cost (benefit) recognized in Other comprehensive income $ 4,374 $ 2,676 $ (3,026) |
Schedule of Assumptions Used | Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost for our pension plan were as follows: Key actuarial assumptions used to determine benefit obligations at December 31, 2023 2022 2021 Effective discount rate for benefit obligation 5.1% 5.3% 3.1% Expected annual rate of compensation increase 2.9% 2.9% 2.4% Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, 2023 2022 2021 Effective discount rate for service cost 5.3% 3.1% 2.9% Effective discount rate for interest cost 5.1% 2.7% 2.3% Expected long-term rate of return 6.5% 6.5% 6.8% Expected annual rate of compensation increase 2.9% 2.4% 2.4% |
Schedule of Expected Benefit Payments | Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid during the following years: 2024 $ 3,526 2025 4,079 2026 4,657 2027 5,174 2028 5,618 Thereafter 35,010 |
Summary of Pension Plan Contributions | The Company made pension plan contributions sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan as follows: Years Ended December 31, 2023 2022 2021 1st Quarter $ — $ — $ 1,200 2nd Quarter — 10,000 3,620 3rd Quarter — 5,000 12,710 4th Quarter — 5,000 — Total $ — $ 20,000 $ 17,530 |
Schedule of Target Asset Allocation of Pension Plan Assets | The target asset allocation percent for the Company's pension plan assets is summarized as follows: Years Ended December 31, 2023 2022 Cash and cash equivalents 3% 2% US and non-US equity securities 64% 65% Fixed income / real estate / other securities 33% 33% Total Pension Assets 100% 100% |
Summary of Fair Value of Plan Assets | Fair Value at December 31, Fair Value Measurements 2023 2022 2021 Investments valued using NAV per share Emerging Markets Region Equities $ 4,839 $ 4,427 $ 4,249 International Region Equities 16,975 14,370 13,303 United States Equities 38,324 31,235 34,273 United States Bonds 22,987 20,115 17,357 Real Estate 1,391 1,563 599 Cash Fund 1,567 5,652 1,471 Total Pension Plan Assets at Fair Value $ 86,083 $ 77,362 $ 71,252 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Recorded Unconditional Purchase Obligations | Future minimum payments for these unconditional purchase obligations as of December 31, 2023 are as follows (dollars in thousands): Year Amount 2024 $ 432,233 2025 14,884 2026 7,695 2027 6,787 2028 5,940 Thereafter 71,280 $ 538,819 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustment Postretirement Benefit Obligations Adjustment Changes in Fair Value of Effective Cash Flow Hedges Accumulated Other Comprehensive Income (loss) Balance at December 31, 2020 $ (5,069) $ (8,729) $ (2,334) $ (16,132) Other comprehensive income (loss) (43) 10,334 519 10,810 Amounts reclassified from accumulated other comprehensive income (loss) — — 1,836 1,836 Income tax expense (benefit) — (2,487) (566) (3,053) Current period change (43) 7,847 1,789 9,593 Balance at December 31, 2021 (5,112) (882) (545) (6,539) Other comprehensive income (loss) 14 2,158 1,576 3,748 Amounts reclassified from accumulated other comprehensive income (loss) — — (671) (671) Income tax expense (benefit) — (518) (217) (735) Current period change 14 1,640 688 2,342 Balance at December 31, 2022 (5,098) 758 143 (4,197) Other comprehensive income (loss) 63 184 (197) 50 Amounts reclassified from accumulated other comprehensive income (loss) — — — — Income tax expense (benefit) — (44) 47 3 Current period change 63 140 (150) 53 Balance at December 31, 2023 $ (5,035) $ 898 $ (7) $ (4,144) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The details of the earnings per share calculations for the years ended December 31, 2023, 2022 and 2021 are as follows: Years Ended December 31, 2023 2022 2021 Basic Net Income $ 54,623 $ 171,886 $ 139,791 Weighted average common shares outstanding 27,302,254 27,969,436 28,152,876 EPS – Basic $ 2.00 $ 6.15 $ 4.97 Years Ended December 31, 2023 2022 2021 Diluted Net Income $ 54,623 $ 171,886 $ 139,791 Weighted average common shares outstanding – Basic 27,302,254 27,969,436 28,152,876 Dilutive effect of unvested equity awards 705,376 1,061,671 892,310 Weighted average common shares outstanding – Diluted 28,007,630 29,031,107 29,045,186 EPS – Diluted $ 1.95 $ 5.92 $ 4.81 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes information about RSU activity related to the Equity Plan: Number of Restricted Stock Units (In Thousands) Weighted Average Grant Date Fair Value (Per Share) Non-vested at December 31, 2020 432 $ 18.94 Granted 153 29.64 Vested (115) 23.51 Forfeited (28) 11.07 Non-vested at December 31, 2021 442 22.11 Granted 129 39.44 Vested (110) 30.00 Forfeited (65) 22.25 Non-vested at December 31, 2022 396 25.53 Granted 178 $ 34.75 Vested (218) $ 15.83 Forfeited (19) $ 38.92 Non-vested at December 31, 2023 337 $ 35.97 |
Schedule of Share Based Compensation Income Statement Impact From RSUs | The following table summarizes information about the income statement impact from RSUs for the Years Ended December 31, 2023, 2022 and 2021: Years Ended December 31, 2023 2022 2021 Compensation expense $ 4,049 $ 3,471 $ 3,544 Future income tax benefit recognized $ 1,107 $ 927 $ 887 |
Schedule of Share Based Compensation Income Statement Impact From Stock Options | The following table summarizes information about the income statement impact from stock options for the years ended December 31, 2023, 2022 and 2021. Years Ended December 31, 2023 2022 2021 Compensation expense $ 1,651 $ 1,467 $ 1,410 Future income tax benefit recognized $ 1,215 $ 1,033 $ 1,030 |
Schedule of Key Black-Scholes Assumptions | The fair value related to stock options granted was determined using Black-Scholes option pricing model and the weighted average assumptions are shown in the table below: Years Ended December 31, Key Black-Scholes Assumptions 2023 2022 2021 Risk-free interest rate 4.1% 1.8% .8% Expected term (years) 6 6 6 Volatility 46.5% 40.2% 35.6% Dividend yield 1.4% 1.3% — Fair value per stock option $18.04 $14.01 $10.34 |
Summary of Stock Option Activity | The following table summarizes information about stock option activity related to the Equity Plan: Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2020 759 $ 25.44 7.97 $ — Exercisable at December 31, 2020 326 $ 32.16 6.84 $ — Granted 160 29.21 Exercised 20 27.55 Forfeited (33) 21.29 Expired — — Outstanding at December 31, 2021 906 26.13 7.42 $ 19,123 Exercisable at December 31, 2021 443 $ 29.42 6.54 $ 7,895 Granted 123 39.13 Exercised (69) 24.23 Forfeited (21) 27.81 Expired (56) 30.94 Outstanding at December 31, 2022 883 27.97 6.81 $ 8,870 Exercisable at December 31, 2022 578 $ 27.49 6.06 $ 6,082 Granted 86 41.15 Exercised (9) 28.14 Forfeited — — Expired (3) 33.27 Outstanding at December 31, 2023 957 29.26 6.17 $ 4,446 Exercisable at December 31, 2023 728 $ 26.47 5.46 $ 4,412 |
Summary of Performance Stock Unit Activity | The following table summarizes information about PSU activity related to the Equity Plan: Number of Performance Stock Units (In Thousands) Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 347 20.77 Granted 128 29.21 Vested (6) 9.47 Forfeited (65) 32.25 Non-vested at December 31, 2021 404 20.04 Granted 101 41.63 Vested (78) 30.69 Forfeited (32) 22.30 Non-vested at December 31, 2022 395 23.04 Granted 93 42.63 Vested (193) 14.29 Forfeited (1) 38.84 Non-vested at December 31, 2023 294 $ 37.77 |
Schedule of Share Based Compensation Income Statement Impact From PSUs | The following table summarizes information about the income statement impact from PSUs for the year ended December 31, 2023, 2022 and 2021. Years Ended December 31, 2023 2022 2021 Compensation expense $ 2,612 $ 5,343 $ 6,345 Future income tax benefit recognized $ 703 $ 840 $ 667 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets subject to amortization were as follows: December 31, 2023 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Customer relationships $ 36,820 $ (3,760) $ 33,060 $ 36,820 $ (1,854) $ 34,966 Licenses 18,451 (5,996) 12,455 18,451 (5,074) 13,377 Trade names 1,100 (422) 678 1,100 (201) 899 Total $ 56,371 $ (10,178) $ 46,193 $ 56,371 $ (7,129) $ 49,242 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization expense for each of the next five years is as follows: Year Amount 2024 $ 3,049 2025 3,049 2026 3,049 2027 2,866 2028 2,829 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the allocation of the purchase price consideration as of the acquisition date for the transaction noted above: Initially Reported as of March 31, 2022 (Preliminary) Measurement Period Adjustment December 31, 2022 Cash $ 22,887 $ — $ 22,887 Accounts receivable 15,117 — 15,117 Inventories 11,937 (3,048) 8,889 Other current assets 1,876 (167) 1,709 Property, plant and equipment 13,600 (8) 13,592 Intangible assets 31,400 2,600 34,000 Accounts payable (1,487) (88) (1,575) Accrued liabilities (2,760) — (2,760) Deferred income taxes (12,243) 2,127 (10,116) Net tangible and intangible assets 80,327 1,416 81,743 Goodwill 40,271 (1,671) 38,600 Total purchase price $ 120,598 $ (255) $ 120,343 Total purchase price $ 120,598 $ (255) $ 120,343 Less: Cash acquired (22,887) — (22,887) Total purchase price, net of cash received 97,711 (255) 97,456 Estimated working capital adjustment due from seller 878 (878) — Net cash paid $ 98,589 $ (1,133) $ 97,456 Goodwill deductible for tax purposes $ — $ — $ — |
Organization, Operations and _2
Organization, Operations and Basis of Presentation (Details) | Dec. 31, 2023 manufacuringSite $ / shares | Dec. 31, 2022 $ / shares | Oct. 01, 2016 $ / shares |
Accounting Policies [Abstract] | |||
Number of manufacturing sites | manufacuringSite | 5 | ||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies | |||||
Checks outstanding | $ 2,900,000 | ||||
LIFO inventory amount | $ 202,900,000 | 195,600,000 | $ 202,900,000 | ||
Inventory, LIFO reserve | 64,830,000 | 95,167,000 | 64,830,000 | ||
Inventories valued at FIFO | 12,600,000 | 16,200,000 | 12,600,000 | ||
Goodwill | 56,192,000 | 56,192,000 | 56,192,000 | ||
Total purchase price, net of cash received | 0 | 97,456,000 | $ 9,523,000 | ||
Revenue | 1,533,599,000 | 1,945,640,000 | 1,684,625,000 | ||
Research and development expense | 9,800,000 | 12,500,000 | 14,000,000 | ||
Interest and penalties | 0 | 0 | 0 | $ 0 | |
Unrecognized tax benefits | 0 | 0 | 0 | ||
U.S Amines, Ltd. | |||||
Accounting Policies | |||||
Goodwill | 38,600,000 | 38,600,000 | |||
Total purchase price, net of cash received | $ 97,500,000 | 97,456,000 | |||
Intangible assets | 34,000,000 | 34,000,000 | |||
Customer relationships | U.S Amines, Ltd. | |||||
Accounting Policies | |||||
Useful life | 20 years | ||||
Revenue | $ 33,000,000 | ||||
Minimum | |||||
Accounting Policies | |||||
Useful life | 5 years | ||||
Minimum | Customer relationships | U.S Amines, Ltd. | |||||
Accounting Policies | |||||
Useful life | 15 years | ||||
Maximum | |||||
Accounting Policies | |||||
Useful life | 20 years | ||||
Maximum | Customer relationships | U.S Amines, Ltd. | |||||
Accounting Policies | |||||
Useful life | 20 years | ||||
Buildings and improvements | Minimum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 10 years | ||||
Buildings and improvements | Maximum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 40 years | ||||
Machinery and equipment | Minimum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 3 years | ||||
Machinery and equipment | Maximum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 35 years | ||||
Assets used in short production cycles or subject to high corrosion | Minimum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 3 years | ||||
Assets used in short production cycles or subject to high corrosion | Maximum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 30 years | ||||
Standard plant assets | Minimum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 3 years | ||||
Standard plant assets | Maximum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 30 years | ||||
Major process equipment | Minimum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 3 years | ||||
Major process equipment | Maximum | |||||
Accounting Policies | |||||
Property, plant, equipment useful life (in years) | 35 years | ||||
Forward Commodity Agreement | |||||
Accounting Policies | |||||
Notional amount | $ 0 | $ 0 | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 country customer | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Number of customers | customer | 400 | ||
Number of countries in which customers are located (more than) | country | 50 | ||
Contract with customer, timing of performance obligation | We typically sell to customers under master services 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 | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 39% | 39% | 40% |
Shaw Industries Group Inc | Customer Concentration Risk | Revenue from Contract with Customer | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 11% | 12% | 12% |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 1,533,599 | $ 1,945,640 | $ 1,684,625 |
Revenue from Contract with Customer | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 100% | 100% | 100% |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 1,250,094 | $ 1,622,537 | $ 1,382,464 |
United States | Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 82% | 83% | 82% |
International | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 283,505 | $ 323,103 | $ 302,161 |
International | Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 18% | 17% | 18% |
Nylon | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 356,632 | $ 485,241 | $ 422,897 |
Nylon | Revenue from Contract with Customer | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 23% | 25% | 25% |
Caprolactam | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 298,375 | $ 319,863 | $ 316,132 |
Caprolactam | Revenue from Contract with Customer | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 19% | 16% | 19% |
Ammonium Sulfate | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 440,915 | $ 629,021 | $ 401,092 |
Ammonium Sulfate | Revenue from Contract with Customer | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 29% | 33% | 24% |
Chemical Intermediates | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 437,677 | $ 511,515 | $ 544,504 |
Chemical Intermediates | Revenue from Contract with Customer | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 29% | 26% | 32% |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue and Customer Advances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Opening balance | $ 34,430 |
Additional cash advances | 21,916 |
Less amounts recognized in revenues | (40,668) |
Ending balance | $ 15,678 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 69,055 | $ 225,640 | $ 184,963 |
Non-U.S. | 168 | 151 | 153 |
Income before taxes | $ 69,223 | $ 225,791 | $ 185,116 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current Provision (benefit): | |||
Federal | $ 20,707 | $ 31,165 | $ 34,079 |
State | 3,159 | 6,463 | 6,504 |
Non-U.S. | 47 | 48 | 35 |
Total current provision (benefit) | 23,913 | 37,676 | 40,618 |
Deferred Provision (benefit): | |||
Federal | (8,886) | 13,874 | 2,256 |
State | (427) | 2,355 | 2,445 |
Non-U.S. | 0 | 0 | 6 |
Total deferred provision (benefit) | (9,313) | 16,229 | 4,707 |
Total income tax expense (benefit) | $ 14,600 | $ 53,905 | $ 45,325 |
Income Taxes - Schedule of In_3
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
U.S. state income taxes | 2.90% | 3.10% | 3% |
U.S. state income tax rate change | 0.20% | 0% | 0.80% |
Excess tax benefits of equity compensation | (1.50%) | 0% | 0% |
Executive compensation limitations | 1% | 0.70% | 1% |
Research and other tax credits | (1.30%) | (0.30%) | (0.30%) |
Foreign derived intangible income deduction | (0.90%) | (0.70%) | (0.90%) |
Other, net | (0.30%) | 0.10% | (0.10%) |
Effective income tax rate | 21.10% | 23.90% | 24.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 28, 2022 |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Valuation allowance | 0 | 0 | |
Deferred income taxes | 151,059,000 | 160,409,000 | |
Capitalization of research expenses | 6,624,000 | 4,234,000 | |
Undistributed earnings | 0 | 0 | |
U.S Amines, Ltd. | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred income taxes | $ 10,100,000 | ||
Capitalization of research expenses | 6,600,000 | $ 4,200,000 | |
State | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 0 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss | $ 36,000 | $ 44,000 |
Accruals and reserves | 2,943,000 | 4,197,000 |
Capitalization of research expenses | 6,624,000 | 4,234,000 |
Inventory | 9,394,000 | 1,094,000 |
Pension obligation | 1,726,000 | 0 |
Operating lease liability | 23,031,000 | 27,551,000 |
Equity compensation | 3,025,000 | 2,800,000 |
Total gross deferred tax assets | 46,779,000 | 39,920,000 |
Less: Valuation Allowance | 0 | 0 |
Total deferred tax assets | 46,779,000 | 39,920,000 |
Deferred tax liabilities: | ||
Property, plant & equipment | (160,071,000) | (160,019,000) |
Intangibles | (11,156,000) | (11,164,000) |
Operating lease asset | (22,981,000) | (27,466,000) |
Other | (3,630,000) | (1,680,000) |
Total deferred tax liabilities | (197,838,000) | (200,329,000) |
Net deferred taxes | $ (151,059,000) | $ (160,409,000) |
Accounts and Other Receivable_3
Accounts and Other Receivables – Net - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivables | $ 155,267 | $ 171,923 |
Other | 10,959 | 4,100 |
Total accounts and other receivables | 166,226 | 176,023 |
Less – allowance for doubtful accounts | (833) | (594) |
Total accounts and other receivables – net | $ 165,393 | $ 175,429 |
Accounts and Other Receivable_4
Accounts and Other Receivables – Net - Schedule of Allowance for Doubtful Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 594 | $ 1,495 | $ 1,471 |
Charged / (Credited) to Costs | 458 | (1,122) | 0 |
Charged to Other Accounts | 47 | 0 | 0 |
Bad Debt Write-Offs | (266) | 221 | 24 |
Balance at End of Year | $ 833 | $ 594 | $ 1,495 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 159,240 | $ 126,060 |
Work in progress | 54,936 | 64,669 |
Finished goods | 61,891 | 60,711 |
Spares and other | 30,931 | 28,892 |
Inventory, gross | 306,998 | 280,332 |
Reduction to LIFO cost basis | (95,167) | (64,830) |
Total inventories | $ 211,831 | 215,502 |
Percentage of FIFO inventory | 8% | |
Excess of replacement or current costs over stated LIFO value | $ 65,300 | $ 58,200 |
Property, Plant, Equipment _ _3
Property, Plant, Equipment – Net - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, gross | $ 1,928,651 | $ 1,827,653 |
Less – accumulated depreciation | (1,076,009) | (1,016,588) |
Total property, plant, equipment – net | 852,642 | 811,065 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, gross | 11,761 | 11,761 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, gross | 1,621,636 | 1,561,714 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, gross | 228,379 | 219,417 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant, Equipment, gross | $ 66,875 | $ 34,761 |
Property, Plant, Equipment _ _4
Property, Plant, Equipment – Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest | $ 3,375 | $ 2,589 | $ 2,565 |
Depreciation expense | $ 67,528 | $ 64,087 | $ 61,405 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 20 years |
Operating lease not yet commenced | $ 114.2 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term (in years) | 7 years |
Leases - Components of Cost (De
Leases - Components of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finance lease cost: | ||
Amortization of right-of-use asset | $ 932 | $ 917 |
Interest on lease liabilities | 106 | 53 |
Total finance lease cost | 1,038 | 970 |
Operating lease cost | 47,148 | 43,668 |
Short-term lease cost | 5,415 | 5,338 |
Total lease cost | $ 53,601 | $ 49,976 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 47,196 | $ 42,715 | |
Operating cash flows from finance leases | 106 | 49 | |
Financing cash flows from finance leases | 938 | 926 | $ 735 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 14,818 | 14,124 | |
Finance leases | $ 1,325 | $ 1,223 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Operating lease right-of-use assets | $ 95,805 | $ 114,688 |
Operating lease liabilities – short term | 32,053 | 37,472 |
Operating lease liabilities – long term | 63,961 | 77,571 |
Total operating lease liabilities | 96,014 | 115,043 |
Finance Leases | ||
Property, plant and equipment – gross | 3,528 | 2,338 |
Accumulated depreciation | (1,369) | (572) |
Property, plant and equipment – net | 2,159 | 1,766 |
Accounts payable | 797 | 770 |
Other liabilities | 1,400 | 988 |
Total finance lease liabilities | $ 2,197 | $ 1,758 |
Finance lease, right-of-use asset, statement of financial position [extensible enumeration] | Property, plant and equipment – net | Property, plant and equipment – net |
Finance lease, liability, current, statement of financial position [extensible enumeration] | Accounts payable | Accounts payable |
Finance lease, liability, noncurrent, statement of financial position [extensible enumeration] | Other liabilities | Other liabilities |
Finance lease, liability, statement of financial position [extensible enumeration] | Liabilities | Liabilities |
Weighted Average Remaining Lease Term | ||
Operating leases | 9 years 1 month 6 days | 8 years 6 months |
Finance leases | 3 years 3 months 18 days | 2 years 10 months 24 days |
Weighted Average Discount Rate | ||
Operating leases | 6.40% | 5.61% |
Finance leases | 6.71% | 4.04% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities After Adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 37,517 | |
2025 | 25,730 | |
2026 | 15,021 | |
2027 | 8,211 | |
2028 | 5,714 | |
Thereafter | 41,413 | |
Total lease payments | 133,606 | |
Less imputed interest | (37,592) | |
Total | 96,014 | $ 115,043 |
Finance Leases | ||
2024 | 928 | |
2025 | 673 | |
2026 | 429 | |
2027 | 309 | |
2028 | 143 | |
Thereafter | 0 | |
Total lease payments | 2,482 | |
Less imputed interest | (285) | |
Total | $ 2,197 | $ 1,758 |
Long-term Debt and Credit Agr_3
Long-term Debt and Credit Agreement - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | $ 170,000 | |
Less: amounts expected to be repaid within one year | 0 | |
Total long-term debt due after one year | 170,000 | $ 115,000 |
Total term loan outstanding | ||
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | 0 | |
Amounts outstanding under the Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | $ 170,000 |
Long-term Debt and Credit Agr_4
Long-term Debt and Credit Agreement - Narrative (Details) - Senior Secured Revolving Credit Facility | Jul. 01, 2023 | Oct. 27, 2021 USD ($) | Feb. 19, 2020 |
Revolving credit facility | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Debt instrument term | 5 years | ||
Maximum aggregate principal amount | $ 500,000,000 | ||
Option for higher borrowing capacity | $ 175,000,000 | ||
Consolidated senior secured leverage ratio (less than) | 2.75 | ||
Consolidated interest coverage ratio (not less than) | 3 | ||
Consolidated leverage ratio, period one (less than) | 4 | ||
Consolidated leverage ratio, period two (less than) | 3.75 | ||
Revolving credit facility | Base Rate | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Revolving credit facility | SOFR | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving credit facility | LIBOR | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Annual commitment fee percentage | 0.15% | ||
Revolving credit facility | Minimum | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Annual commitment fee percentage | 0.15% | ||
Revolving credit facility | Minimum | Base Rate | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Revolving credit facility | Minimum | Eurodollar | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving credit facility | Maximum | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Annual commitment fee percentage | 0.35% | ||
Revolving credit facility | Maximum | Base Rate | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Revolving credit facility | Maximum | Eurodollar | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Letter of credit | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Maximum aggregate principal amount | $ 40,000,000 | ||
Bridge loan | |||
Long-term Debt and Credit Arrangements [Line Items] | |||
Maximum aggregate principal amount | $ 40,000,000 |
Postretirement Benefit Obliga_3
Postretirement Benefit Obligations - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution, percent of match | 75% | ||
Company matching contribution, percent of employees' gross pay | 8% | ||
Contributions to defined contribution plan | $ 6,028,000 | $ 5,920,000 | $ 5,874,000 |
Actuarial loss (gain) amortized from AOCI into net periodic benefit cost | 0 | 0 | |
Accumulated benefit obligation | 81,300,000 | $ 69,300,000 | $ 79,600,000 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions | 0 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions | $ 5,000,000 | ||
Collective Bargaining Agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution, percent of employees' gross pay | 8% | ||
Award vesting period (in years) | 3 years | ||
Collective Bargaining Agreement | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution, percent of match | 50% | ||
Collective Bargaining Agreement | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution, percent of match | 75% |
Postretirement Benefit Obliga_4
Postretirement Benefit Obligations - Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning balance | $ 80,174 | $ 91,389 | $ 89,137 | $ 80,174 | $ 91,389 | $ 89,137 | |||||||||
Service Cost | 4,906 | 6,860 | 7,817 | ||||||||||||
Interest Cost | 4,048 | 2,436 | 2,071 | ||||||||||||
Actuarial losses (gains) | 6,636 | (18,665) | (6,342) | ||||||||||||
Benefits Paid | (2,494) | (1,846) | (1,294) | ||||||||||||
Benefit obligation at ending balance | $ 93,270 | $ 80,174 | $ 91,389 | 93,270 | 80,174 | 91,389 | |||||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning balance | 77,362 | 71,252 | 48,444 | 77,362 | 71,252 | 48,444 | |||||||||
Actual return on plan assets | 11,216 | (12,044) | 6,572 | ||||||||||||
Benefits paid | (2,494) | (1,846) | (1,294) | ||||||||||||
Company Contributions | 0 | $ 0 | $ 0 | $ 0 | 5,000 | $ 5,000 | $ 10,000 | $ 0 | 0 | $ 12,710 | $ 3,620 | $ 1,200 | 0 | 20,000 | 17,530 |
Fair value of plan assets at ending balance | 86,084 | 77,362 | 71,252 | 86,084 | 77,362 | 71,252 | |||||||||
Under-Funded status of plan | 7,186 | 2,812 | 20,137 | 7,186 | 2,812 | 20,137 | |||||||||
Accrued pension liabilities-current | 3,526 | 2,812 | 1,894 | 3,526 | 2,812 | 1,894 | |||||||||
Accrued pension liabilities-noncurrent | 3,660 | 0 | 18,243 | 3,660 | 0 | 18,243 | |||||||||
Total pension liabilities recognized | $ 7,186 | $ 2,812 | $ 20,137 | $ 7,186 | $ 2,812 | $ 20,137 |
Postretirement Benefit Obliga_5
Postretirement Benefit Obligations - Other Changes in Plan Assets Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | |||
Transition obligation | $ 0 | $ 0 | $ 0 |
Prior service cost | 0 | 0 | 0 |
Net actuarial (gain) loss | (1,271) | (1,087) | 1,071 |
Pension amounts recognized in other comprehensive loss (income) | $ (1,271) | $ (1,087) | $ 1,071 |
Postretirement Benefit Obliga_6
Postretirement Benefit Obligations - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 4,906 | $ 6,860 | $ 7,817 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent |
Interest cost | $ 4,048 | $ 2,436 | $ 2,071 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent |
Expected return on plan assets | $ (4,396) | $ (4,463) | $ (2,924) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent |
Recognition of actuarial losses | $ 0 | $ 0 | $ 345 |
Net periodic Pension Cost | 4,558 | 4,833 | 7,309 |
Other changes in benefits obligations recognized in other comprehensive loss (income) | |||
Actuarial losses (gains) | (184) | (2,157) | (10,335) |
Total recognized in other comprehensive income | (184) | (2,157) | (10,335) |
Total net periodic pension cost (benefit) recognized in Other comprehensive income | $ 4,374 | $ 2,676 | $ (3,026) |
Postretirement Benefit Obliga_7
Postretirement Benefit Obligations - Assumptions Used in Calculations (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Key actuarial assumptions used to determine benefit obligations at December 31, | |||
Effective discount rate for benefit obligation | 5.10% | 5.30% | 3.10% |
Expected annual rate of compensation increase | 2.90% | 2.90% | 2.40% |
Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, | |||
Effective discount rate for service cost | 5.30% | 3.10% | 2.90% |
Effective discount rate for interest cost | 5.10% | 2.70% | 2.30% |
Expected long-term rate of return | 6.50% | 6.50% | 6.80% |
Expected annual rate of compensation increase | 2.90% | 2.40% | 2.40% |
Postretirement Benefit Obliga_8
Postretirement Benefit Obligations - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
2024 | $ 3,526 |
2025 | 4,079 |
2026 | 4,657 |
2027 | 5,174 |
2028 | 5,618 |
Thereafter | $ 35,010 |
Postretirement Benefit Obliga_9
Postretirement Benefit Obligations - Pension Plan Contributions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||||||||||||||
Pension plan contributions | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,000 | $ 5,000 | $ 10,000 | $ 0 | $ 0 | $ 12,710 | $ 3,620 | $ 1,200 | $ 0 | $ 20,000 | $ 17,530 |
Postretirement Benefit Oblig_10
Postretirement Benefit Obligations - Schedule of Target Asset Allocation of Pension Plan Assets (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 100% | 100% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 3% | 2% |
US and non-US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 64% | 65% |
Fixed income / real estate / other securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 33% | 33% |
Postretirement Benefit Oblig_11
Postretirement Benefit Obligations - Fair Value Measurement of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | $ 86,084 | $ 77,362 | $ 71,252 | $ 48,444 |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 86,083 | |||
Emerging Markets Region Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 4,839 | 4,427 | 4,249 | |
International Region Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 16,975 | 14,370 | 13,303 | |
United States Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 38,324 | 31,235 | 34,273 | |
United States Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 22,987 | 20,115 | 17,357 | |
Real Estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 1,391 | 1,563 | 599 | |
Cash Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | $ 1,567 | $ 5,652 | $ 1,471 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 USD ($) derivative_instrument | Dec. 31, 2023 USD ($) derivative_instrument | Dec. 31, 2022 USD ($) derivative_instrument | Dec. 31, 2021 USD ($) | Jul. 31, 2019 USD ($) | |
Concentration Risk [Line Items] | |||||
Net Income | $ 54,623,000 | $ 171,886,000 | $ 139,791,000 | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||||
Concentration Risk [Line Items] | |||||
Other comprehensive income (loss), before tax, portion attributable to parent | 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||||
Concentration Risk [Line Items] | |||||
Net Income | $ 200,000 | ||||
Designated as Hedging Instrument | |||||
Concentration Risk [Line Items] | |||||
Derivative liability, fair value | 0 | ||||
Derivative assets, fair value | $ 0 | ||||
Forward Contracts | |||||
Concentration Risk [Line Items] | |||||
Number of instruments held | derivative_instrument | 0 | 0 | 0 | ||
Interest Rate Swap | |||||
Concentration Risk [Line Items] | |||||
Derivative, notional amount | $ 50,000,000 | ||||
Derivative liability, fair value | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Recorded Unconditional Purchase Obligation, Fiscal Year Maturity Schedule [Abstract] | |
2024 | $ 432,233 |
2025 | 14,884 |
2026 | 7,695 |
2027 | 6,787 |
2028 | 5,940 |
Thereafter | 71,280 |
Future minimum payments for unconditional purchase obligations | $ 538,819 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 738,180,000 | $ 601,190,000 | $ 444,123,000 |
Other comprehensive income (loss) | 50,000 | 3,748,000 | 10,810,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (671,000) | 1,836,000 |
Income tax expense (benefit) | 3,000 | (735,000) | (3,053,000) |
Other comprehensive income, net of tax | 53,000 | 2,342,000 | 9,593,000 |
Ending balance | 739,237,000 | 738,180,000 | 601,190,000 |
Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (5,098,000) | (5,112,000) | (5,069,000) |
Other comprehensive income (loss) | 63,000 | 14,000 | (43,000) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 |
Other comprehensive income, net of tax | (43,000) | ||
Ending balance | (5,035,000) | (5,098,000) | (5,112,000) |
Postretirement Benefit Obligations Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 758,000 | (882,000) | (8,729,000) |
Other comprehensive income (loss) | 184,000 | 2,158,000 | 10,334,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax expense (benefit) | (44,000) | (518,000) | (2,487,000) |
Other comprehensive income, net of tax | 7,847,000 | ||
Ending balance | 898,000 | 758,000 | (882,000) |
Changes in Fair Value of Effective Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 143,000 | (545,000) | (2,334,000) |
Other comprehensive income (loss) | (197,000) | 1,576,000 | 519,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (671,000) | 1,836,000 |
Income tax expense (benefit) | 47,000 | (217,000) | (566,000) |
Ending balance | (7,000) | 143,000 | (545,000) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (4,197,000) | (6,539,000) | (16,132,000) |
Ending balance | $ (4,144,000) | $ (4,197,000) | $ (6,539,000) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net Income | $ 54,623 | $ 171,886 | $ 139,791 |
Weighted average common shares outstanding (in shares) | 27,302,254 | 27,969,436 | 28,152,876 |
EPS – Basic (in dollars per share) | $ 2 | $ 6.15 | $ 4.97 |
Diluted | |||
Net Income | $ 54,623 | $ 171,886 | $ 139,791 |
Weighted average common shares outstanding – Basic (in shares) | 27,302,254 | 27,969,436 | 28,152,876 |
Dilutive effect of unvested equity awards (in shares) | 705,376 | 1,061,671 | 892,310 |
Weighted average common shares outstanding - Diluted (in shares) | 28,007,630 | 29,031,107 | 29,045,186 |
EPS – Diluted (in dollars per share) | $ 1.95 | $ 5.92 | $ 4.81 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 04, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 261,364 | |||
Economic equivalent of unit allocated (in shares) | 1 | |||
Stock repurchased during period (in shares) | 1,317,402 | 915,597 | 21,564 | |
Value of stock repurchased | $ 45.9 | |||
Average market price of common stock repurchased (in dollars per share) | $ 34.86 | |||
Deferred Compensation, Share-based Payments | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of units allocated to stock unit fund (in shares) | 75,669 | |||
May 2018 Repurchase Program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares authorized for repurchase (in shares) | 75,000,000 | |||
February 2019 Repurchase Program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares authorized for repurchase (in shares) | 75,000,000 | |||
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 475,359 | 172,808 | 400,205 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | shares | 2,615,100 | |
Number of shares available for grant (in shares) | shares | 2,200,000 | |
Full-Value Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares underlying, counted against share reserve, basis | 1.55 | |
Stock Option awards and SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares underlying, counted against share reserve, basis | 1 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares underlying, counted against share reserve, basis | 1 | |
Unrecognized compensation cost | $ 5,800,000 | |
Period for recognition (in years) | 1 year 2 months 12 days | |
RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 1 year | |
RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 1,200,000 | |
Period for recognition (in years) | 9 months 18 days | |
Stock Options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 1 year | |
Stock Options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 36 months | |
Unrecognized compensation cost | $ 3,300,000 | |
Period for recognition (in years) | 1 year 1 month 6 days | |
Conversion ratio | 1 | |
Award performance period (in years) | 3 years | |
Percent of potential to increase or decrease award type | 10% | |
Performance Stock Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target return percentage | 0% | |
Performance Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target return percentage | 200% |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of RSU Activity Related to Equity Plan (Details) - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Restricted Stock Units | |||
Non-vested, beginning balance (in shares) | 396 | 442 | 432 |
Granted (in shares) | 178 | 129 | 153 |
Vested (in shares) | (218) | (110) | (115) |
Forfeited (in shares) | (19) | (65) | (28) |
Non-vested, ending balance (in shares) | 337 | 396 | 442 |
Weighted Average Grant Date Fair Value (Per Share) | |||
Non-vested, beginning balance (in dollars per share) | $ 25.53 | $ 22.11 | $ 18.94 |
Granted (in dollars per share) | 34.75 | 39.44 | 29.64 |
Vested (in dollars per share) | 15.83 | 30 | 23.51 |
Forfeited (in dollars per share) | 38.92 | 22.25 | 11.07 |
Non-vested, ending balance (in dollars per share) | $ 35.97 | $ 25.53 | $ 22.11 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Schedule of Income Statement Impact (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Future income tax benefit recognized | $ 3,025 | $ 2,800 | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 4,049 | 3,471 | $ 3,544 | |
Future income tax benefit recognized | $ 1,107 | $ 927 | $ 887 | |
Granted (in shares) | 178 | 129 | 153 | |
Granted (in dollars per share) | $ 34.75 | $ 39.44 | $ 29.64 | |
Vested (in shares) | (218) | (110) | (115) | |
Vested (in dollars per share) | $ 15.83 | $ 30 | $ 23.51 | |
Forfeited (in shares) | (19) | (65) | (28) | |
Forfeited (in dollars per share) | $ 38.92 | $ 22.25 | $ 11.07 | |
Number of units (in shares) | 337 | 396 | 442 | 432 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 35.97 | $ 25.53 | $ 22.11 | $ 18.94 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 1,651 | $ 1,467 | $ 1,410 | |
Future income tax benefit recognized | 1,215 | 1,033 | 1,030 | |
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 2,612 | 5,343 | 6,345 | |
Future income tax benefit recognized | $ 703 | $ 840 | $ 667 | |
Granted (in shares) | 93 | 101 | 128 | |
Granted (in dollars per share) | $ 42.63 | $ 41.63 | $ 29.21 | |
Vested (in shares) | (193) | (78) | (6) | |
Vested (in dollars per share) | $ 14.29 | $ 30.69 | $ 9.47 | |
Forfeited (in shares) | (1) | (32) | (65) | |
Forfeited (in dollars per share) | $ 38.84 | $ 22.30 | $ 32.25 | |
Number of units (in shares) | 294 | 395 | 404 | 347 |
Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 37.77 | $ 23.04 | $ 20.04 | $ 20.77 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Schedule of Key Black-Scholes Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 4.10% | 1.80% | 0.80% |
Expected term (years) | 6 years | 6 years | 6 years |
Volatility percentage | 46.50% | 40.20% | 35.60% |
Dividend yield percentage | 1.40% | 1.30% | 0% |
Fair value per stock option (in dollars per share) | $ 18.04 | $ 14.01 | $ 10.34 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||||
Beginning balance (in shares) | 883 | 906 | 759 | |
Granted (in shares) | 86 | 123 | 160 | |
Exercised (in shares) | (9) | (69) | (20) | |
Forfeited (in shares) | 0 | (21) | (33) | |
Expired (in shares) | (3) | (56) | 0 | |
Ending balance (in shares) | 957 | 883 | 906 | 759 |
Exercisable shares (in shares) | 728 | 578 | 443 | 326 |
Weighted Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 27.97 | $ 26.13 | $ 25.44 | |
Granted (in dollars per share) | 41.15 | 39.13 | 29.21 | |
Exercised (in dollars per share) | 28.14 | 24.23 | 27.55 | |
Forfeited (in dollars per share) | 0 | 27.81 | 21.29 | |
Expired (in dollars per share) | 33.27 | 30.94 | 0 | |
Ending balance (in dollars per share) | 29.26 | 27.97 | 26.13 | $ 25.44 |
Exercisable (in dollars per dollars per share) | $ 26.47 | $ 27.49 | $ 29.42 | $ 32.16 |
Options outstanding, weighted average remaining contractual term (years) | 6 years 2 months 1 day | 6 years 9 months 21 days | 7 years 5 months 1 day | 7 years 11 months 19 days |
Options exercisable, weighted average remaining contractual term (years) | 5 years 5 months 15 days | 6 years 21 days | 6 years 6 months 14 days | 6 years 10 months 2 days |
Aggregate intrinsic value, outstanding | $ 4,446 | $ 8,870 | $ 19,123 | $ 0 |
Aggregate intrinsic value, exercisable | $ 4,412 | $ 6,082 | $ 7,895 | $ 0 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Schedule of Nonvested PSUs (Details) - Performance Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Performance Stock Units (In Thousands) | |||
Non-vested, beginning balance (in shares) | 395 | 404 | 347 |
Granted (in shares) | 93 | 101 | 128 |
Vested (in shares) | (193) | (78) | (6) |
Forfeited (in shares) | (1) | (32) | (65) |
Non-vested, ending balance (in shares) | 294 | 395 | 404 |
Weighted Average Grant Date Fair Value (per share) | |||
Non-vested, beginning balance (in dollars per share) | $ 23.04 | $ 20.04 | $ 20.77 |
Granted (in dollars per share) | 42.63 | 41.63 | 29.21 |
Vested (in dollars per share) | 14.29 | 30.69 | 9.47 |
Forfeited (in dollars per share) | 38.84 | 22.30 | 32.25 |
Non-vested, ending balance (in dollars per share) | $ 37.77 | $ 23.04 | $ 20.04 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 28, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 3 | $ 2.7 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 20 years | ||
Customer relationships | U.S Amines, Ltd. | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 20 years | ||
Customer relationships | U.S Amines, Ltd. | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 15 years | ||
Customer relationships | U.S Amines, Ltd. | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 20 years | ||
Trade names | U.S Amines, Ltd. | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Amortization for Each Major Class of Intangible Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 56,371 | $ 56,371 |
Accumulated Amortization | (10,178) | (7,129) |
Net Book Value | 46,193 | 49,242 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,820 | 36,820 |
Accumulated Amortization | (3,760) | (1,854) |
Net Book Value | 33,060 | 34,966 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18,451 | 18,451 |
Accumulated Amortization | (5,996) | (5,074) |
Net Book Value | 12,455 | 13,377 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,100 | 1,100 |
Accumulated Amortization | (422) | (201) |
Net Book Value | $ 678 | $ 899 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Year | |
2024 | $ 3,049 |
2025 | 3,049 |
2026 | 3,049 |
2027 | 2,866 |
2028 | $ 2,829 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2022 USD ($) employee | Jan. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Total purchase price, net of cash received | $ 0 | $ 97,456 | $ 9,523 | |||
Commonwealth Industrial Services, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Net cash paid | $ 9,500 | |||||
U.S Amines, Ltd. | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase price, net of cash received | $ 97,500 | $ 97,456 | ||||
Number of employees | employee | 50 | |||||
U.S Amines, Ltd. | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangibles acquired | $ 33,000 | |||||
Useful life | 20 years | |||||
U.S Amines, Ltd. | Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangibles acquired | $ 1,000 | |||||
Useful life | 5 years |
Acquisitions - Business Combina
Acquisitions - Business Combination (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Purchase Price | ||||||
Goodwill | $ 56,192 | $ 56,192 | $ 56,192 | |||
Total purchase price, net of cash received | $ 0 | 97,456 | $ 9,523 | |||
U.S Amines, Ltd. | ||||||
Purchase Price | ||||||
Cash | 22,887 | 22,887 | ||||
Accounts receivable | 15,117 | 15,117 | ||||
Inventories | 8,889 | 8,889 | ||||
Other current assets | 1,709 | 1,709 | ||||
Property, plant and equipment | 13,592 | 13,592 | ||||
Intangible assets | 34,000 | 34,000 | ||||
Accounts payable | (1,575) | (1,575) | ||||
Accrued liabilities | (2,760) | (2,760) | ||||
Deferred income taxes | (10,116) | (10,116) | ||||
Net tangible and intangible assets | 81,743 | 81,743 | ||||
Goodwill | 38,600 | 38,600 | ||||
Total purchase price | 120,343 | 120,343 | ||||
Total purchase price | 120,343 | |||||
Less: Cash acquired | (22,887) | |||||
Total purchase price, net of cash received | $ 97,500 | 97,456 | ||||
Estimated working capital adjustment due from seller | 0 | |||||
Net cash paid | 97,456 | |||||
Goodwill deductible for tax purposes | 0 | 0 | ||||
U.S Amines, Ltd. | Previously Reported | ||||||
Purchase Price | ||||||
Cash | $ 22,887 | |||||
Accounts receivable | 15,117 | |||||
Inventories | 11,937 | |||||
Other current assets | 1,876 | |||||
Property, plant and equipment | 13,600 | |||||
Intangible assets | 31,400 | |||||
Accounts payable | (1,487) | |||||
Accrued liabilities | (2,760) | |||||
Deferred income taxes | (12,243) | |||||
Net tangible and intangible assets | 80,327 | |||||
Goodwill | 40,271 | |||||
Total purchase price | 120,598 | |||||
Total purchase price | 120,598 | |||||
Less: Cash acquired | (22,887) | |||||
Total purchase price, net of cash received | 97,711 | |||||
Estimated working capital adjustment due from seller | 878 | |||||
Net cash paid | 98,589 | |||||
Goodwill deductible for tax purposes | $ 0 | |||||
U.S Amines, Ltd. | Revision of Prior Period, Adjustment | ||||||
Purchase Price | ||||||
Cash | 0 | 0 | ||||
Accounts receivable | 0 | 0 | ||||
Inventories | (3,048) | (3,048) | ||||
Other current assets | (167) | (167) | ||||
Property, plant and equipment | (8) | (8) | ||||
Intangible assets | 2,600 | 2,600 | ||||
Accounts payable | (88) | (88) | ||||
Accrued liabilities | 0 | 0 | ||||
Deferred income taxes | 2,127 | 2,127 | ||||
Net tangible and intangible assets | 1,416 | 1,416 | ||||
Goodwill | (1,671) | (1,671) | ||||
Total purchase price | (255) | (255) | ||||
Total purchase price | (255) | |||||
Less: Cash acquired | 0 | |||||
Total purchase price, net of cash received | (255) | |||||
Estimated working capital adjustment due from seller | (878) | |||||
Net cash paid | (1,133) | |||||
Goodwill deductible for tax purposes | $ 0 | $ 0 |
Supplier Finance Programs (Deta
Supplier Finance Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | ||
Period of termination | 30 days | |
Supplier finance program | $ 17,000 | $ 17,000 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Other Non-operating (Income) _2
Other Non-operating (Income) Expense, Net (Details) - Facility exit costs $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Ammonium Sulfate Fertilizer | |
Other Nonoperating Income and Expense [Line Items] | |
Gains (losses) from restructuring activities | $ (4.5) |
Oximes Products | |
Other Nonoperating Income and Expense [Line Items] | |
Gains (losses) from restructuring activities | (2.4) |
Oben | |
Other Nonoperating Income and Expense [Line Items] | |
Gains (losses) from restructuring activities | $ 11.4 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 16, 2024 $ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Cash dividends declared per share (in dollars per share) | $ 0.160 |