Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Common Stock, $0.01 par value per share | EAF | New York Stock Exchange |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 4A. | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 8. | ||
Item 9. | ||
Item 10-14 | ||
Item 15. | ||
Item 16. |
Item 1. | Business |
(1) | Graphite electrode sales represent sales outside of China |
Item 1A. | Risk Factors |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Location of Facility | Primary Use | Owned or Leased | ||
Corporate Headquarters, Innovation and Technology Center and Sales Office | Leased | |||
Owned | ||||
St. Marys, Pennsylvania | Graphite Electrode Manufacturing Facility | Owned | ||
Owned | ||||
Owned | ||||
Europe | ||||
Calais, France | Graphite Electrode Manufacturing Facility | |||
Owned | ||||
Pamplona, Spain | Graphite Electrode Manufacturing Facility and Sales Office | Owned | ||
Bussigny, Switzerland | Global Sales and Production Planning Office | Leased | ||
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Name | Age | Position | ||
David J. Rintoul | 62 | President and Chief Executive Officer | ||
Quinn J. Coburn | 56 | Vice President, Chief Financial Officer and Treasurer | ||
Jeremy S. Halford | 47 | Senior Vice President, Operations and Development | ||
Gina K. Gunning | 53 | Chief Legal Officer and Corporate Secretary | ||
Iñigo Perez Ortiz | 48 | Senior Vice President, Commercial |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
October 1 through October 31, 2019 (1) | 125,551 | $ | 11.01 | 125,551 | $ | 89,133,000 | |||||||
November 1 through November 30, 2019 | — | — | — | — | |||||||||
December 1 through December 31, 2019 (2) | 19,047,619 | $ | 13.125 | — | — | ||||||||
Total | 19,173,170 | 125,551 | $ | 89,133,000 |
Item 6. | Selected Financial Data |
Predecessor | Successor | ||||||||||||||||||||||
Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||
Net sales | $ | 1,320,184 | $ | 1,248,264 | $ | 1,166,674 | $ | 1,085,304 | $ | 437,931 | $ | 248,741 | |||||||||||
Income (loss) from continuing operations (a) | 153,184 | 117,641 | (27,259 | ) | (285,376 | ) | (120,649 | ) | (33,551 | ) | |||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||||||||
Net income (loss) per share | $ | 1.06 | $ | 0.85 | $ | (0.20 | ) | $ | (2.10 | ) | $ | (0.88 | ) | N/A | |||||||||
Weighted average common shares outstanding (in thousands) | 145,156 | 138,552 | 135,067 | 136,155 | 137,152 | N/A | |||||||||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||||||||
Net income (loss) per share | $ | 1.05 | $ | 0.84 | $ | (0.20 | ) | $ | (2.10 | ) | $ | (0.88 | ) | N/A | |||||||||
Weighted average common shares outstanding (in thousands) | 146,402 | 139,700 | 135,067 | 136,155 | 137,152 | N/A | |||||||||||||||||
Balance sheet data (at period end): | |||||||||||||||||||||||
Total assets | $ | 2,168,366 | $ | 2,297,915 | $ | 2,217,848 | $ | 1,833,805 | $ | 1,681,669 | $ | 1,422,015 | |||||||||||
Other long-term obligations (b) | 131,300 | 125,005 | 97,947 | 107,566 | 96,763 | 95,485 | |||||||||||||||||
Total long-term debt | 387,624 | 535,709 | 541,593 | 341,615 | 402,311 | 362,455 | |||||||||||||||||
Other financial data: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 76,597 | $ | 101,400 | $ | 116,837 | $ | 120,903 | $ | 28,323 | $ | 23,115 | |||||||||||
Net cash used in investing activities | (161,966 | ) | (119,962 | ) | (83,801 | ) | (78,952 | ) | (39,918 | ) | (17,484 | ) | |||||||||||
Net cash (used in) provided by financing activities | 85,461 | 24,112 | (37,645 | ) | (35,077 | ) | 20,824 | (23,072 | ) |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, | For the Period August 15 Through December 31, 2015 | For the Period January 1 Through August 14, 2015 (d) | |||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||
Net sales | $ | 1,790,793 | $ | 1,895,910 | $ | 550,771 | $ | 437,963 | $ | 193,133 | $ | 339,907 | |||||||||||
Income (loss) from continuing operations | 744,602 | 853,888 | 14,212 | (108,869 | ) | (28,625 | ) | (101,970 | ) | ||||||||||||||
Net income (loss) | 744,602 | 854,219 | 7,983 | (235,843 | ) | (33,551 | ) | (120,649 | ) | ||||||||||||||
Basic and diluted earnings (loss) per common share: | |||||||||||||||||||||||
Income (loss) from continuing operations per share | $ | 2.58 | $ | 2.87 | $ | 0.05 | $ | (0.36 | ) | $ | (0.09 | ) | $ | (0.74 | ) | ||||||||
Weighted average common shares outstanding (a) | 289,057 | 297,748 | 302,226 | 302,226 | 302,226 | 137,152 | |||||||||||||||||
Dividends per common share (b) | $ | 0.34 | $ | 7.71 | $ | — | — | $ | — | $ | — | ||||||||||||
Balance sheet data (at period end): | |||||||||||||||||||||||
Total assets | $ | 1,526,164 | $ | 1,505,491 | $ | 1,199,103 | $ | 1,172,276 | $ | 1,422,015 | N/A (d) | ||||||||||||
Other long-term obligations (c) | 72,562 | 72,519 | 68,907 | 82,148 | 94,318 | N/A (d) | |||||||||||||||||
Total long-term debt | 1,812,682 | 2,050,311 | 322,900 | 356,580 | 362,455 | N/A (d) | |||||||||||||||||
Other financial data: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 805,316 | $ | 836,603 | $ | 36,573 | $ | 22,815 | $ | 23,115 | $ | 28,323 | |||||||||||
Net cash used in investing activities | (63,884 | ) | (67,295 | ) | (2,199 | ) | (10,471 | ) | (17,484 | ) | (39,918 | ) | |||||||||||
Net cash (used in) provided by financing activities | (709,631 | ) | (731,044 | ) | (32,995 | ) | (8,317 | ) | (23,072 | ) | 20,824 |
(a) |
(b) | 2018 calculated by total dividends paid of $2,294,265 divided by weighted average shares outstanding. $2,022,000 of these dividends were declared and paid to Brookfield prior to our IPO. All other dividends were declared and paid to all common stockholders. |
(c) | Represents pension and post-retirement benefits and related costs and miscellaneous other long-term obligations. |
(d) | A closing balance sheet as of August 14, 2015 was not required as part of previous filings. |
Predecessor | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
2014 | |||||||||||||||
Net sales | $ | 280,791 | $ | 284,184 | $ | 260,458 | $ | 259,871 | |||||||
Gross profit | 25,694 | 17,953 | 17,644 | 30,956 | |||||||||||
Net income (a) | (11,517 | ) | (155,433 | ) | (34,943 | ) | (83,483 | ) | |||||||
Basic earnings (loss) per common share | $ | (0.08 | ) | $ | (1.14 | ) | $ | (0.26 | ) | $ | (0.61 | ) | |||
Diluted earnings (loss) per common share | $ | (0.08 | ) | $ | (1.14 | ) | $ | (0.26 | ) | $ | (0.61 | ) |
Predecessor | Successor | ||||||||||||||||||
For the Period July 1 Through August 14, 2015 | For the Period August 15 Through September 30, 2015 | ||||||||||||||||||
First Quarter | Second Quarter | Fourth Quarter | |||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
2015 | |||||||||||||||||||
Net sales | $ | 207,211 | $ | 165,122 | $ | 65,598 | $ | 94,591 | $ | 154,150 | |||||||||
Gross profit | 20,763 | 15,939 | 1,411 | 8,991 | 9,838 | ||||||||||||||
Net income (loss) (b) | (55,608 | ) | (22,817 | ) | (42,224 | ) | (7,303 | ) | (26,248 | ) | |||||||||
Basic earnings (loss) per common share | $ | (0.41 | ) | $ | (0.17 | ) | $ | (0.31 | ) | N/A | N/A | ||||||||
Diluted earnings (loss) per common share | $ | (0.41 | ) | $ | (0.17 | ) | $ | (0.31 | ) | N/A | N/A |
Predecessor | Successor | |||||||||||
For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||||
(in thousands, except per share data and % change) | ||||||||||||
Net sales | $ | 1,085,304 | $ | 437,931 | $ | 248,741 | ||||||
Cost of sales | 993,057 | 399,817 | 229,912 | |||||||||
Gross profit | 92,247 | 38,114 | 18,829 | |||||||||
Research and development | 14,844 | 5,556 | 2,348 | |||||||||
Selling and administrative expenses | 124,178 | 81,147 | 32,115 | |||||||||
Impairment of long-lived assets | 197,220 | 35,381 | — | |||||||||
Rationalizations | 11,625 | 4,507 | 1,075 | |||||||||
Operating loss | (255,620 | ) | (88,477 | ) | (16,709 | ) | ||||||
Other expense (income), net | 2,445 | 1,335 | (943 | ) | ||||||||
Interest expense | 37,057 | 27,118 | 10,916 | |||||||||
Interest income | (330 | ) | (367 | ) | (11 | ) | ||||||
Loss before provision for income taxes | (294,792 | ) | (116,563 | ) | (26,671 | ) | ||||||
(Benefit) provision for income taxes | (9,416 | ) | 4,086 | 6,880 | ||||||||
Net loss | $ | (285,376 | ) | $ | (120,649 | ) | $ | (33,551 | ) | |||
Basic loss per common share: | $ | (2.10 | ) | $ | (0.88 | ) | N/A | |||||
Diluted loss per common share: | $ | (2.10 | ) | $ | (0.88 | ) | N/A |
Predecessor | Successor | |||||||||||
For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||||
(in thousands, except per % change) | ||||||||||||
Industrial Materials | $ | 840,103 | $ | 341,974 | $ | 193,223 | ||||||
Engineered Solutions | 245,201 | 95,957 | 55,518 | |||||||||
Total net sales | $ | 1,085,304 | $ | 437,931 | $ | 248,741 |
Volume | Price/Mix | Currency | Net Change | ||||||||
Industrial Materials | (24 | )% | (8 | )% | (4 | )% | (36 | )% | |||
Engineered Solutions | (33 | )% | (3 | )% | (2 | )% | (38 | )% |
Predecessor | Successor | ||||||||||
For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Industrial Materials | $ | (50,260 | ) | $ | (25,678 | ) | $ | (4,017 | ) | ||
Engineered Solutions | (138,271 | ) | (15,368 | ) | (457 | ) | |||||
Total segment operating loss | (188,531 | ) | (41,046 | ) | (4,474 | ) | |||||
Corporate, R&D and Other Expenses | (67,089 | ) | (47,431 | ) | (12,235 | ) | |||||
Total operating loss | $ | (255,620 | ) | $ | (88,477 | ) | $ | (16,709 | ) |
Predecessor | Successor | ||||||||||
For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Tax (benefit) expense | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 | ||||
Pretax loss | (294,792 | ) | (116,563 | ) | $ | (26,671 | ) | ||||
Effective tax rates | 3.2 | % | (3.5 | )% | (25.8 | )% |
(in thousands, except per share data and % change) | 2013 | 2014 | Increase (Decrease) | % Change | ||||||||||
Net sales | $ | 1,166,674 | $ | 1,085,304 | $ | (81,370 | ) | (7 | )% | |||||
Cost of sales | 1,027,608 | 993,057 | (34,551 | ) | (3 | )% | ||||||||
Gross profit | 139,066 | 92,247 | (46,819 | ) | (34 | )% | ||||||||
Research and development | 10,437 | 14,844 | 4,407 | 42 | % | |||||||||
Selling and administrative expenses | 111,043 | 124,178 | 13,135 | 12 | % | |||||||||
Rationalizations | 20,156 | 11,625 | (8,531 | ) | N/A | |||||||||
Impairment of long-lived assets and goodwill | — | 197,220 | 197,220 | N/A | ||||||||||
Operating income (loss) | (2,570 | ) | (255,620 | ) | (55,830 | ) | 2,172 | % | ||||||
Other (income) expense, net | 1,698 | 2,445 | 747 | 44 | % | |||||||||
Interest expense | 36,037 | 37,057 | 1,020 | 3 | % | |||||||||
Interest income | (203 | ) | (330 | ) | (127 | ) | 63 | % | ||||||
Income (loss) before provision for income taxes | (40,102 | ) | (294,792 | ) | (57,470 | ) | 143 | % | ||||||
Provision (benefit) for income taxes | (12,843 | ) | (9,416 | ) | 3,427 | (27 | )% | |||||||
Net income (loss) | $ | (27,259 | ) | $ | (285,376 | ) | $ | (60,897 | ) | 223 | % | |||
Basic income (loss) per common share | $ | (0.20 | ) | $ | (2.10 | ) | $ | (1.90 | ) | |||||
Diluted income (loss) per common share | $ | (0.20 | ) | $ | (2.10 | ) | $ | (1.90 | ) |
(in thousands, except per share data and % change) | 2013 | 2014 | Increase (Decrease) | % Change | ||||||||||
Industrial Materials | $ | 909,448 | $ | 840,103 | $ | (69,345 | ) | (8 | )% | |||||
Engineered Solutions | 257,226 | 245,201 | (12,025 | ) | (5 | )% | ||||||||
Total net sales | $ | 1,166,674 | $ | 1,085,304 | $ | (81,370 | ) | (7 | )% |
Volume | Price/Mix | Currency | Net Change | ||||||||
Industrial Materials | 3 | % | (11 | )% | — | % | (8 | )% | |||
Engineered Solutions | 2 | % | (7 | )% | — | % | (5 | )% |
For the Year ended December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Industrial Materials | $ | 20,007 | $ | (50,260 | ) | ||
Engineered Solutions | 28,392 | (138,271 | ) | ||||
Corporate, Research and Development, and Other Expenses | (50,969 | ) | (67,089 | ) | |||
Total segment operating loss | $ | (2,570 | ) | $ | (255,620 | ) |
For the Year Ended December 31 | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Tax (benefit) | $ | (12,843 | ) | $ | (9,416 | ) | |
Pretax Income (loss) | $ | (40,102 | ) | $ | (294,792 | ) | |
Effective Tax Rates | 32.0 | % | 3.2 | % |
For the year ended December 31, | ||||||||||||
(in thousands) | 2019 | 2018 | 2017 | |||||||||
Net sales | $ | 1,790,793 | $ | 1,895,910 | $ | 550,771 | ||||||
Net income | $ | 744,602 | $ | 854,219 | $ | 7,983 | ||||||
EBITDA from continuing operations(1) | $ | 1,027,268 | $ | 1,102,625 | $ | 97,884 | ||||||
Adjusted EBITDA from continuing operations(1) | $ | 1,048,259 | $ | 1,205,021 | $ | 95,806 |
For the year ended December 31, | |||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||
Sales volume (MT)(2) | 171 | 176 | 163 | ||||||
Production volume (MT)(3) | 177 | 179 | 166 | ||||||
Production capacity excluding St. Marys during idle period (MT)(4)(5) | 202 | 180 | 167 | ||||||
Capacity utilization excluding St. Marys during idle period(4)(6) | 88 | % | 99 | % | 85 | % | |||
Total production capacity(5)(7) | 230 | 208 | 195 | ||||||
Total capacity utilization(6)(7) | 77 | % | 86 | % | 85 | % |
(1) | See below for more information and a reconciliation of EBITDA and adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP. |
(2) | Effective the first quarter of 2019, we have recast the sales volume above to include only graphite electrodes manufactured by GrafTech. This better reflects management's assessment of our profitability and excludes resales of low grade graphite electrodes manufactured by third party suppliers. For comparability purposes, the prior period has been recast to conform to this presentation. |
(3) | Production volume reflects graphite electrodes produced during the period. See below for more information on our key operating metrics. |
(4) | The St. Marys, Pennsylvania facility was temporarily idled effective the second quarter of 2016 except for the machining of semi‑finished products sourced from other plants. In the first quarter of 2018, our St. Marys facility began graphitizing a limited amount of electrodes sourced from our Monterrey, Mexico facility. |
(5) | Production capacity reflects expected maximum production volume during the period under normal operating conditions, standard product mix and expected maintenance downtime. Actual production may vary. See below for more information on our key operating metrics. |
(6) | Capacity utilization reflects production volume as a percentage of production capacity. See below for more information on our key operating metrics. |
(7) | Includes graphite electrode facilities in Calais, France; Monterrey, Mexico; Pamplona, Spain and St. Marys, Pennsylvania. |
For the year ended December 31, | |||||||||
(in thousands) | 2019 | 2018 | 2017 | ||||||
Net income (loss) | 744,602 | 854,219 | 7,983 | ||||||
Add: | |||||||||
Discontinued operations | — | (331 | ) | 6,229 | |||||
Depreciation and amortization | 61,819 | 66,413 | 64,025 | ||||||
Interest expense | 127,331 | 135,061 | 30,823 | ||||||
Interest income | (4,709 | ) | (1,657 | ) | (395 | ) | |||
Income taxes | 98,225 | 48,920 | (10,781 | ) | |||||
EBITDA from continuing operations | 1,027,268 | 1,102,625 | 97,884 | ||||||
Adjustments: | |||||||||
Pension and OPEB plan expenses (gain)(1) | 6,727 | 3,893 | (1,611 | ) | |||||
Rationalization‑related gains(2) | — | — | (3,970 | ) | |||||
Intial and follow-on public offerings and related expenses(3) | 2,056 | 5,173 | — | ||||||
Acquisition and proxy contests costs(4) | — | — | 886 | ||||||
Non‑cash loss on foreign currency remeasurement(5) | 1,784 | 818 | 1,731 | ||||||
Stock-based compensation(6) | 2,143 | 1,152 | — | ||||||
Non‑cash fixed asset write‑off(7) | 4,888 | 4,882 | 886 | ||||||
Related party Tax Receivable Agreement expense(8) | 3,393 | 86,478 | — | ||||||
Adjusted EBITDA from continuing operations | 1,048,259 | 1,205,021 | 95,806 |
(1) | Service and interest cost of our OPEB plans. Also includes a mark‑to‑market loss (gain) for plan assets as of December of each year. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Components of Results of Operations-Selling and Administrative Expenses” for more information. |
(2) | Costs associated with rationalizations in our graphite electrode manufacturing operations and in the corporate structure. They include severance charges, contract termination charges, write‑off of equipment and (gain)/loss on sale of manufacturing sites. |
(3) | Legal, accounting, printing and registration fees associated with initial and follow-on public offering and related expenses. |
(4) | Costs associated with the merger transaction with Brookfield, resulting in change in control compensation expenses. |
(5) | Non‑cash loss from foreign currency remeasurement of non‑operating liabilities of our non‑U.S. subsidiaries where the functional currency is the U.S. dollar. |
(6) | Non-cash expense for stock-based compensation grants. |
(7) | Non‑cash fixed asset write‑off recorded for obsolete assets. |
(8) | Non-cash expense for future payment to our sole pre-IPO stockholder for tax assets that are expected to be utilized. |
For the year ended December 31, | ||||||||
(in thousands) | 2019 | 2018 | 2017 | |||||
Net sales: | ||||||||
United States | 403,916 | 429,599 | 103,890 | |||||
Americas (excluding the United States) | 348,670 | 367,561 | 129,103 | |||||
Asia Pacific | 172,439 | 131,578 | 46,329 | |||||
Europe, Middle East, Africa | 865,768 | 967,172 | 271,449 | |||||
Total | 1,790,793 | 1,895,910 | 550,771 |
For the Year Ended December 31, | Increase/ Decrease | % Change | |||||||||||||
(in thousands) | 2019 | 2018 | |||||||||||||
Net sales | $ | 1,790,793 | $ | 1,895,910 | $ | (105,117 | ) | (6 | )% | ||||||
Cost of sales | 750,390 | 705,698 | 44,692 | 6 | % | ||||||||||
Gross profit | 1,040,403 | 1,190,212 | (149,809 | ) | (13 | )% | |||||||||
Research and development | 2,684 | 2,129 | 555 | 26 | % | ||||||||||
Selling and administrative expenses | 63,674 | 62,032 | 1,642 | 3 | % | ||||||||||
Operating income | 974,045 | 1,126,051 | (152,006 | ) | (13 | )% | |||||||||
Other expense (income), net | 5,203 | 3,361 | 1,842 | 55 | % | ||||||||||
Related party Tax Receivable Agreement expense | 3,393 | 86,478 | (83,085 | ) | N/A | ||||||||||
Interest expense | 127,331 | 135,061 | (7,730 | ) | (6 | )% | |||||||||
Interest income | (4,709 | ) | (1,657 | ) | (3,052 | ) | 184 | % | |||||||
Income from continuing operations before provision for income taxes | 842,827 | 902,808 | (59,981 | ) | (7 | )% | |||||||||
Provision for income taxes | 98,225 | 48,920 | 49,305 | 101 | % | ||||||||||
Net income from continuing operations | $ | 744,602 | $ | 853,888 | $ | (109,286 | ) | (13 | )% | ||||||
Income from discontinued operations, net of tax | — | 331 | (331 | ) | (100 | )% | |||||||||
Net income | $ | 744,602 | $ | 854,219 | $ | (109,617 | ) | (13 | )% |
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||
Tax expense | $ | 98,225 | $ | 48,920 | |||
Income from continuing operations before provision for income taxes | 842,827 | $ | 902,808 | ||||
Effective tax rates | 11.7 | % | 5.4 | % |
Payments Due by Year Ending December 31, | |||||||||||||||||||
Total | 2016 | 2017-2018 | 2019-2020 | 2021+ | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Contractual and Other Obligations | |||||||||||||||||||
Long-term debt (a) | $ | 394,600 | $ | 4,500 | $ | 19,833 | $ | 370,267 | $ | — | |||||||||
Leases | 11,268 | 3,957 | 4,559 | 2,707 | 45 | ||||||||||||||
Purchase obligations (b) | 14,959 | 14,959 | — | — | — | ||||||||||||||
Total contractual obligations | 420,827 | 23,416 | 24,392 | 372,974 | 45 | ||||||||||||||
Postretirement, pension and related benefits (c) | 78,209 | 12,099 | 23,954 | 23,471 | 18,685 | ||||||||||||||
Other long-term obligations | 5,979 | 2,053 | 656 | 380 | 2,890 | ||||||||||||||
Uncertain income tax provisions | 3,922 | 603 | 1,329 | 1,990 | — | ||||||||||||||
Total contractual and other obligations (b)(c) | $ | 508,937 | $ | 38,171 | $ | 50,331 | $ | 398,815 | $ | 21,620 | |||||||||
Other Commercial Commitments (d) | |||||||||||||||||||
Guarantees (e) | 6,002 | 6,002 | — | — | — | ||||||||||||||
Total other commercial commitments | $ | 6,002 | $ | 6,002 | $ | — | $ | — | $ | — |
Predecessor | Successor | ||||||||||||||||||||||
For the year ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, | ||||||||||||||||||||
2013 | 2014 | 2019 | 2018 | ||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
Cash flow provided by (used in): | |||||||||||||||||||||||
Operating activities | $ | 116.8 | $ | 120.9 | $ | 28.3 | $ | 23.1 | $ | 805.3 | $ | 836.6 | |||||||||||
Investing activities | (83.8 | ) | (79.0 | ) | (39.9 | ) | (17.5 | ) | (63.9 | ) | (67.3 | ) | |||||||||||
Financing activities | (37.6 | ) | (35.1 | ) | 20.8 | (23.1 | ) | (709.6 | ) | (731.0 | ) |
Payments Due by Year Ending December 31, | |||||||||||||||||||
Total | 2020 | 2021-2022 | 2023-2024 | 2025+ | |||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Contractual and Other Obligations | |||||||||||||||||||
2018 Term Loan Facility (a) | $ | 1,844,032 | $ | — | $ | 100,282 | $ | 225,000 | $ | 1,518,750 | |||||||||
Interest on Long-term Debt (b) | 464,971 | 96,635 | 187,123 | 171,781 | 9,432 | ||||||||||||||
Leases | 8,628 | 4,496 | 3,395 | 645 | 92 | ||||||||||||||
Total contractual obligations | 2,317,631 | 101,131 | 290,800 | 397,426 | 1,528,274 | ||||||||||||||
Postretirement, pension and related benefits (c) | 118,365 | 11,771 | 23,275 | 24,401 | 58,918 | ||||||||||||||
Committed purchase obligations (d) | 48,632 | 48,632 | — | — | — | ||||||||||||||
Related party Tax Receivable Agreement (e) | 89,871 | 27,857 | 25,650 | 22,909 | 13,455 | ||||||||||||||
Other long-term obligations | 12,682 | 9,108 | 1,172 | 578 | 1,824 | ||||||||||||||
Uncertain income tax provisions | 185 | 72 | 80 | 33 | — | ||||||||||||||
Total contractual and other obligations (f) | $ | 2,587,366 | $ | 198,571 | $ | 340,977 | $ | 445,347 | $ | 1,602,471 | |||||||||
Other Commercial Commitments | |||||||||||||||||||
Guarantees (g) | 2,935 | 2,935 | — | — | — | ||||||||||||||
Total other commercial commitments | $ | 2,935 | $ | 2,935 | $ | — | $ | — | $ | — |
(a) | The Company entered into the 2018 Credit Agreement, which provided for the 2018 Term Loan Facility and 2018 Revolving Credit Facility. The proceeds of the 2018 Term Loan Facility were used to redeem the Senior Notes, repay outstanding indebtedness under the amended and restated credit agreement dated February 27, 2015, pay fees and expenses relating to the redemption of the Senior Notes and repayment of such indebtedness and pay a dividend. The 2018 Term Loan Facility has an outstanding balance of $1,844 million and matures on February 12, 2025. The term loan bears interest at a rate equal to either the Adjusted LIBO Rate, plus an applicable margin initially equal to 3.50% per annum or the ABR Rate, plus an applicable margin initially equal to 2.50% per annum, in each case with one step down of 75 basis points based on achievement of certain public ratings of the 2018 Term Loans (see "Liquidity and Capital Resources" for full details of this transaction). |
(b) | Represents estimated interest payments required on 2018 Term Loan Facility using a monthly LIBOR curve through February 2025 net of interest rate swap impacts. |
(c) | Represents estimated postretirement, pension and related benefits obligations based on actuarial calculations. |
(d) | Represents committed purchases of raw materials. |
(e) | Represents Brookfield's right to receive future payments from us for 85% of the amount of cash savings, if any, in U.S. federal income tax and Swiss tax that we and our subsidiaries realize as a result of the utilization of certain tax assets attributable to periods prior to our IPO, including certain federal NOLs, previously taxed income under Section 959 of the Code, foreign tax credits, and the Pre‑IPO Tax Assets. In addition, we will pay interest on the payments we will make to Brookfield with respect to the amount of these cash savings from the due date (without extensions) of our tax return where we realize these savings to the payment date at a rate equal to LIBOR plus 1.00% per annum. The term of the TRA commenced on April 23, 2018 and will continue until there is no potential for any future tax benefit payments. |
(f) | In addition, letters of credit of $3.1 million were issued under the Revolving Facility as of December 31, 2019. |
(g) | Represents surety bonds, which are renewed annually, and other bank guarantees. If rates were unfavorable, we would use letters of credit under our revolving facility. |
(h) | Represents our undiscounted non-cancelable operating lease future payments as of December 31, 2019. |
• | Surety bonds and guarantees with other banks totaling $2.9 million. |
For the Year Ended December 31, | For the Year Ended December 31, | |||||||||||||||||||||
2013 | 2014 | 2015 | 2019 | 2018 | 2017 | (Dollars in thousands) | ||||||||||||||||
Expenses relating to environmental protection | $ | 14,612 | $ | 17,027 | $ | 11,122 | $ | 11,204 | $ | 12,355 | $ | 7,973 | ||||||||||
Capital expenditures related to environmental protection | 22,128 | 14,314 | 2,103 | 7,251 | 4,080 | 2,080 |
Page | |
◦ | Historical revenues, cost of sales, and income |
Schedule of future revenues resulting from contracts with certain customers |
◦ | Internal communications to management and the Board of Directors |
◦ | Industry reports for the Company and the steel industry |
Predecessor | Successor | As of December 31, | ||||||||||||
As of December 31, 2014 | As of, December 31, 2015 | 2019 | 2018 | |||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 17,550 | $ | 6,927 | $ | 80,935 | $ | 49,880 | ||||||
Accounts and notes receivable, net of allowance for doubtful accounts of $7,471 as of December 31, 2014 and $304 as of December 31, 2015 | 162,919 | 102,815 | ||||||||||||
Accounts and notes receivable, net of allowance for doubtful accounts of $5,474 as of December 31, 2019 and $1,129 as of December 31, 2018 | 247,051 | 248,286 | ||||||||||||
Inventories | 382,903 | 295,462 | 313,648 | 293,717 | ||||||||||
Prepaid expenses and other current assets | 81,623 | 21,674 | 40,946 | 46,168 | ||||||||||
Total current assets | 644,995 | 426,878 | 682,580 | 638,051 | ||||||||||
Property, plant and equipment | 1,500,821 | 660,880 | 733,417 | 688,842 | ||||||||||
Less: accumulated depreciation | 846,781 | 23,347 | 220,397 | 175,137 | ||||||||||
Net property, plant and equipment | 654,040 | 637,533 | 513,020 | 513,705 | ||||||||||
Deferred income taxes | 16,819 | 15,327 | 55,217 | 71,707 | ||||||||||
Goodwill | 420,129 | 172,059 | 171,117 | 171,117 | ||||||||||
Other assets | 97,822 | 170,218 | 104,230 | 110,911 | ||||||||||
Total assets | $ | 1,833,805 | $ | 1,422,015 | $ | 1,526,164 | $ | 1,505,491 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 86,409 | $ | 49,478 | $ | 78,697 | $ | 88,097 | ||||||
Short-term debt | 188,104 | 4,772 | 141 | 106,323 | ||||||||||
Accrued income and other taxes | 24,506 | 9,039 | 65,176 | 82,255 | ||||||||||
Rationalizations | 9,563 | 3,048 | ||||||||||||
Other accrued liabilities | 43,319 | 29,779 | 48,335 | 50,452 | ||||||||||
Related party payable - tax receivable agreement | 27,857 | — | ||||||||||||
Total current liabilities | 351,901 | 96,116 | 220,206 | 327,127 | ||||||||||
Long-term debt | 341,615 | 362,455 | 1,812,682 | 2,050,311 | ||||||||||
Other long-term obligations | 107,566 | 95,485 | 72,562 | 72,519 | ||||||||||
Deferred income taxes | 28,197 | 57,430 | 49,773 | 45,825 | ||||||||||
Commitments and Contingencies – Notes 10 and 13 | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, par value $.01, 10,000,000 shares authorized, none issued | — | — | ||||||||||||
Common stock, par value $.01, 225,000,000 shares authorized, 152,821,011 shares issued as of December 31, 2014 and 100 shares authorized and issued as of December 31, 2015 | 1,528 | — | ||||||||||||
Related party payable | 62,014 | 86,478 | ||||||||||||
Commitments and contingencies – Note 12 | ||||||||||||||
Stockholders’ (deficit) equity: | ||||||||||||||
Preferred stock, par value $0.01, 300,000,000 shares authorized, none issued | — | — | ||||||||||||
Common stock, par value $0.01, 3,000,000,000 shares authorized, 270,485,308 and 290,537,612 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively | 2,705 | 2,905 | ||||||||||||
Additional paid – in capital | 1,825,880 | 854,337 | 765,419 | 819,622 | ||||||||||
Accumulated other comprehensive loss | (336,524 | ) | (10,257 | ) | ||||||||||
Accumulated other comprehensive (loss) income | (7,361 | ) | (5,800 | ) | ||||||||||
Accumulated deficit | (245,751 | ) | (33,551 | ) | (1,451,836 | ) | (1,893,496 | ) | ||||||
Less: cost of common stock held in treasury, 15,922,729 shares as of December 31, 2014 and 0 as of December 31, 2015 | (239,811 | ) | — | |||||||||||
Less: common stock held in employee benefit and compensation trusts, 80,967 shares as of December 31, 2014 and 0 shares as of December 31, 2015 | (796 | ) | — | |||||||||||
Total stockholders’ equity | 1,004,526 | 810,529 | ||||||||||||
Total stockholders’ (deficit) equity | (691,073 | ) | (1,076,769 | ) | ||||||||||
Total liabilities and stockholders’ equity | $ | 1,833,805 | $ | 1,422,015 | $ | 1,526,164 | $ | 1,505,491 | ||||||
Predecessor | Successor | ||||||||||||||
For the year ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
Net sales | $ | 1,166,674 | $ | 1,085,304 | $ | 437,931 | $ | 248,741 | |||||||
Cost of sales | 1,027,608 | 993,057 | 399,817 | 229,912 | |||||||||||
Gross profit | 139,066 | 92,247 | 38,114 | 18,829 | |||||||||||
Research and development | 10,437 | 14,844 | 5,556 | 2,348 | |||||||||||
Selling and administrative expenses | 111,043 | 124,178 | 81,147 | 32,115 | |||||||||||
Impairment of long-lived assets and goodwill | — | 197,220 | 35,381 | — | |||||||||||
Rationalizations | 20,156 | 11,625 | 4,507 | 1,075 | |||||||||||
Operating loss | (2,570 | ) | (255,620 | ) | (88,477 | ) | (16,709 | ) | |||||||
Other expense (income), net | 1,698 | 2,445 | 1,335 | (943 | ) | ||||||||||
Interest expense | 36,037 | 37,057 | 27,118 | 10,916 | |||||||||||
Interest income | (203 | ) | (330 | ) | (367 | ) | (11 | ) | |||||||
Loss before income taxes | (40,102 | ) | (294,792 | ) | (116,563 | ) | (26,671 | ) | |||||||
(Benefit) provision for income taxes | (12,843 | ) | (9,416 | ) | 4,086 | 6,880 | |||||||||
Net loss | $ | (27,259 | ) | $ | (285,376 | ) | $ | (120,649 | ) | $ | (33,551 | ) | |||
Basic loss per common share: | |||||||||||||||
Net loss per share | $ | (0.20 | ) | $ | (2.10 | ) | $ | (0.88 | ) | N/A | |||||
Weighted average common shares outstanding | 135,067 | 136,155 | 137,152 | N/A | |||||||||||
Diluted loss per common share: | |||||||||||||||
Net loss per share | $ | (0.20 | ) | $ | (2.10 | ) | $ | (0.88 | ) | N/A | |||||
Weighted average common shares outstanding | 135,067 | 136,155 | 137,152 | N/A | |||||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
Net loss | $ | (27,259 | ) | $ | (285,376 | ) | $ | (120,649 | ) | $ | (33,551 | ) | |||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | (13,981 | ) | (33,041 | ) | (27,936 | ) | (10,133 | ) | |||||||
Commodities and foreign currency derivatives and other, net of tax of ($300), ($63) and $(68) and $21, respectively | 2,035 | (10,859 | ) | 1,262 | (124 | ) | |||||||||
Other comprehensive loss, net of tax: | (11,946 | ) | (43,900 | ) | (26,674 | ) | (10,257 | ) | |||||||
Comprehensive loss | $ | (39,205 | ) | $ | (329,276 | ) | $ | (147,323 | ) | $ | (43,808 | ) |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net sales | $ | 1,790,793 | $ | 1,895,910 | $ | 550,771 | |||||
Cost of sales | 750,390 | 705,698 | 463,054 | ||||||||
Gross profit | 1,040,403 | 1,190,212 | 87,717 | ||||||||
Research and development | 2,684 | 2,129 | 3,456 | ||||||||
Selling and administrative expenses | 63,674 | 62,032 | 52,506 | ||||||||
Operating income | 974,045 | 1,126,051 | 31,755 | ||||||||
Other expense (income), net | 5,203 | 3,361 | (2,104 | ) | |||||||
Related party tax receivable agreement expense | 3,393 | 86,478 | — | ||||||||
Interest expense | 127,331 | 135,061 | 30,823 | ||||||||
Interest income | (4,709 | ) | (1,657 | ) | (395 | ) | |||||
Income from continuing operations before provision (benefit) for income taxes | 842,827 | 902,808 | 3,431 | ||||||||
Provision (benefit) for income taxes | 98,225 | 48,920 | (10,781 | ) | |||||||
Net income from continuing operations | 744,602 | 853,888 | 14,212 | ||||||||
Income (loss) from discontinued operations, net of tax | — | 331 | (6,229 | ) | |||||||
Net income | $ | 744,602 | $ | 854,219 | $ | 7,983 | |||||
Basic income per share: | |||||||||||
Net income per share | $ | 2.58 | $ | 2.87 | $ | 0.03 | |||||
Net Income from continuing operations per share | 2.58 | 2.87 | 0.05 | ||||||||
Weighted average shares outstanding | 289,057,356 | 297,748,327 | 302,225,923 | ||||||||
Diluted income per share: | |||||||||||
Net income per share | 2.58 | 2.87 | 0.03 | ||||||||
Diluted net income from continuing operations per share | 2.58 | 2.87 | 0.05 | ||||||||
Weighted average diluted shares outstanding | 289,074,601 | 297,753,770 | 302,225,923 | ||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||
Net income | $ | 744,602 | $ | 854,219 | $ | 7,983 | |||||
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustments, net of tax of ($67), ($288), and $0, respectively | (6,371 | ) | (18,391 | ) | 23,028 | ||||||
Commodities and interest rate derivatives, net of tax of ($1,546), $802, and $0, respectively | 4,810 | (7,698 | ) | 4,819 | |||||||
Other comprehensive (loss) income, net of tax: | (1,561 | ) | (26,089 | ) | 27,847 | ||||||
Comprehensive income | $ | 743,041 | $ | 828,130 | $ | 35,830 |
Predecessor | Successor | ||||||||||||||
For the year ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
Cash flow from operating activities: | |||||||||||||||
Net Loss | $ | (27,259 | ) | $ | (285,376 | ) | $ | (120,649 | ) | $ | (33,551 | ) | |||
Adjustments to reconcile net loss to cash provided by operations: | |||||||||||||||
Depreciation and amortization | 123,397 | 119,708 | 45,461 | 28,618 | |||||||||||
Impairment of long-lived assets and goodwill | — | 197,220 | 35,381 | — | |||||||||||
Rationalization related fixed asset write offs | 8,010 | 926 | — | — | |||||||||||
Inventory write-downs | — | 19,600 | — | — | |||||||||||
Deferred income taxes | (22,369 | ) | (16,003 | ) | 924 | 5,368 | |||||||||
Post-retirement and pension plan changes | (10,544 | ) | 23,047 | 2,998 | 2,638 | ||||||||||
Stock-based compensation | 8,035 | 5,577 | 15,357 | — | |||||||||||
Non-cash interest expense | 14,052 | 15,693 | 14,180 | 2,351 | |||||||||||
Other charges, net | 7,162 | 1,441 | 102 | (1,934 | ) | ||||||||||
Net change in working capital* | 31,980 | 56,846 | 45,594 | 26,763 | |||||||||||
Increase in long-term assets and liabilities | (15,627 | ) | (17,776 | ) | (11,025 | ) | (7,138 | ) | |||||||
Net cash provided by operating activities | 116,837 | 120,903 | 28,323 | 23,115 | |||||||||||
Cash flow from investing activities: | |||||||||||||||
Capital expenditures | (86,344 | ) | (84,981 | ) | (32,301 | ) | (18,442 | ) | |||||||
Insurance recoveries | 1,500 | 2,834 | — | ||||||||||||
Derivative instrument settlements, net | 114 | (2,025 | ) | (8,263 | ) | 326 | |||||||||
Proceeds from the sale of fixed assets | — | 5,042 | 646 | 632 | |||||||||||
Other | 929 | 178 | — | — | |||||||||||
Net cash used in investing activities | (83,801 | ) | (78,952 | ) | (39,918 | ) | (17,484 | ) | |||||||
Cash flow from financing activities: | |||||||||||||||
Short-term debt (reductions) borrowings, net | (7,265 | ) | (1,021 | ) | 18,511 | (15,504 | ) | ||||||||
Revolving Facility borrowings | 166,000 | 269,000 | 160,000 | 62,000 | |||||||||||
Revolving Facility reductions | (171,500 | ) | (293,000 | ) | (99,000 | ) | (68,000 | ) | |||||||
Repayment of Senior Subordinated Notes | — | — | (200,000 | ) | — | ||||||||||
Issuance of preferred shares | — | — | 150,000 | ||||||||||||
Principal payments on long-term debt | (225 | ) | (192 | ) | (89 | ) | (183 | ) | |||||||
Supply chain financing | (17,508 | ) | (9,455 | ) | — | — | |||||||||
Proceeds from exercise of stock options | 448 | 2,813 | 32 | — | |||||||||||
Purchase of treasury shares | (1,825 | ) | (894 | ) | (63 | ) | — | ||||||||
Refinancing fees and debt issuance costs | (560 | ) | (3,279 | ) | (5,068 | ) | — | ||||||||
Other | (5,210 | ) | 951 | (3,499 | ) | (1,385 | ) | ||||||||
Net cash (used in) provided by financing activities | (37,645 | ) | (35,077 | ) | 20,824 | (23,072 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents | (4,609 | ) | 6,874 | 9,229 | (17,441 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (820 | ) | (1,212 | ) | (1,746 | ) | (665 | ) | |||||||
Cash and cash equivalents at beginning of period | 17,317 | 11,888 | 17,550 | 25,033 | |||||||||||
Cash and cash equivalents at end of period | $ | 11,888 | $ | 17,550 | $ | 25,033 | $ | 6,927 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flow from operating activities: | |||||||||||
Net income | $ | 744,602 | $ | 854,219 | $ | 7,983 | |||||
Adjustments to reconcile net income to cash provided by operations: | |||||||||||
Depreciation and amortization | 61,819 | 66,413 | 66,443 | ||||||||
Impairment of long-lived assets | — | — | 5,300 | ||||||||
Related party Tax Receivable Agreement expense | 3,393 | 86,478 | — | ||||||||
Deferred income tax provision | 17,503 | (37,078 | ) | (15,695 | ) | ||||||
Loss on extinguishment of debt | — | 23,827 | — | ||||||||
Non-cash interest expense | 6,344 | 5,320 | 6,805 | ||||||||
Other charges, net | 21,831 | 15,761 | (9,607 | ) | |||||||
Net change in working capital* | (47,687 | ) | (177,754 | ) | (20,004 | ) | |||||
Change in long-term assets and liabilities | (2,489 | ) | (583 | ) | (4,652 | ) | |||||
Net cash provided by operating activities | 805,316 | 836,603 | 36,573 | ||||||||
Cash flow from investing activities: | |||||||||||
Capital expenditures | (64,103 | ) | (68,221 | ) | (34,664 | ) | |||||
Cash received from divestitures | — | — | 27,254 | ||||||||
Proceeds from the sale of fixed assets | 219 | 926 | 5,211 | ||||||||
Net cash used in investing activities | (63,884 | ) | (67,295 | ) | (2,199 | ) | |||||
Cash flow from financing activities: | |||||||||||
Short-term debt (reductions) borrowings, net | — | (12,607 | ) | 5,110 | |||||||
Credit Facility borrowings | — | — | 77,000 | ||||||||
Credit Facility reductions | — | (45,692 | ) | (114,839 | ) | ||||||
Proceeds from the issuance of long-term debt, net of original issue discount | — | 2,235,000 | — | ||||||||
Repayment of Senior Notes | — | (304,782 | ) | — | |||||||
Repurchase of common stock - related party | (250,000 | ) | (225,000 | ) | — | ||||||
Repurchase of common stock - non-related party | (10,868 | ) | — | — | |||||||
Principal payments on long-term debt | (350,140 | ) | (56,372 | ) | (266 | ) | |||||
Dividends paid to non-related-party | (20,613 | ) | (55,616 | ) | — | ||||||
Dividends paid to related-party | (78,010 | ) | (1,488,649 | ) | — | ||||||
Related-party promissory note repayment | — | (750,000 | ) | — | |||||||
Refinancing fees and debt issuance costs | — | (27,326 | ) | — | |||||||
Net cash used in financing activities | (709,631 | ) | (731,044 | ) | (32,995 | ) | |||||
Net change in cash and cash equivalents | 31,801 | 38,264 | 1,379 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (746 | ) | (1,749 | ) | 376 | ||||||
Cash and cash equivalents at beginning of period | 49,880 | 13,365 | 11,610 | ||||||||
Cash and cash equivalents at end of period | $ | 80,935 | $ | 49,880 | $ | 13,365 |
Predecessor | Successor | ||||||||||||||
For the year ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||
Net cash paid during the periods for: | |||||||||||||||
Interest | $ | 21,825 | $ | 21,549 | $ | 10,661 | $ | 10,880 | |||||||
Income taxes | 8,357 | 10,611 | 5,016 | 1,646 | |||||||||||
Non-cash operating, investing and financing activities: | |||||||||||||||
Common stock issued to savings and pension plan trusts | 4,561 | 4,381 | 1,874 | — | |||||||||||
* Net change in working capital due to the following components: | |||||||||||||||
Decrease (increase) in current assets: | |||||||||||||||
Accounts and notes receivable, net | $ | 37,366 | $ | 28,466 | $ | 61,008 | $ | (9,524 | ) | ||||||
Inventories | 14,324 | 77,875 | 1,164 | 47,853 | |||||||||||
Prepaid expenses and other current assets | (209 | ) | (14,898 | ) | 2,551 | 15,935 | |||||||||
Decrease in accounts payables and accruals | (38,198 | ) | (25,849 | ) | (18,728 | ) | (21,503 | ) | |||||||
Rationalizations | 18,421 | (8,732 | ) | (2,677 | ) | (3,756 | ) | ||||||||
Increase in interest payable | 276 | (16 | ) | 2,276 | (2,242 | ) | |||||||||
Decrease in working capital | $ | 31,980 | $ | 56,846 | $ | 45,594 | $ | 26,763 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Net cash paid during the periods for: | |||||||||||
Interest | $ | 121,075 | $ | 108,006 | $ | 25,277 | |||||
Income taxes | 99,278 | 21,444 | 3,467 | ||||||||
Non-cash financing activities: | |||||||||||
Dividend payable - Promissory Note** | — | 750,000 | — | ||||||||
* Net change in working capital due to the following components: | |||||||||||
Accounts and notes receivable, net | $ | (404 | ) | $ | (139,180 | ) | $ | (29,755 | ) | ||
Inventories | (21,549 | ) | (126,355 | ) | (15,649 | ) | |||||
Prepaid expenses and other current assets | 3,929 | 7,116 | (10,565 | ) | |||||||
Income taxes payable | (18,174 | ) | 67,054 | 2,762 | |||||||
Accounts payable and accruals | (11,551 | ) | 15,724 | 33,317 | |||||||
Interest payable | 62 | (2,113 | ) | (114 | ) | ||||||
(Increase) decrease in working capital | $ | (47,687 | ) | $ | (177,754 | ) | $ | (20,004 | ) |
PREDECSSOR | ||||||||||||||||||||||||||||||
Issued Shares of Common Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Treasury Stock | Common Stock Held in Employee Benefit & Compensation Trust | Total Stockholders’ Equity | |||||||||||||||||||||||
Balance at January 1, 2013 | 150,869,227 | $ | 1,509 | $ | 1,812,592 | $ | (280,678 | ) | $ | 66,884 | $ | (249,487 | ) | $ | (969 | ) | $ | 1,349,851 | ||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (27,259 | ) | — | — | (27,259 | ) | ||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||
Commodity and foreign currency derivatives and other, net of tax of ($300) | — | — | — | 2,035 | — | — | — | 2,035 | ||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (13,981 | ) | — | — | — | (13,981 | ) | ||||||||||||||||||||
Total other comprehensive income (loss) | — | — | — | (11,946 | ) | — | — | — | (11,946 | ) | ||||||||||||||||||||
Stock-based compensation | 405,168 | 4 | 2,850 | — | — | 2,297 | — | 5,151 | ||||||||||||||||||||||
Common stock issued to savings and pension plan trusts | 564,435 | 6 | 4,561 | — | — | — | (63 | ) | 4,504 | |||||||||||||||||||||
Sale of common stock under stock options | 90,735 | — | 448 | — | — | — | — | 448 | ||||||||||||||||||||||
Balance at December 31, 2013 | 151,929,565 | $ | 1,519 | $ | 1,820,451 | $ | (292,624 | ) | $ | 39,625 | $ | (247,190 | ) | $ | (1,032 | ) | $ | 1,320,749 | ||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (285,376 | ) | — | — | (285,376 | ) | ||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||
Commodity and foreign currency derivatives and other, net of tax of ($63) | — | — | — | (10,859 | ) | — | — | — | (10,859 | ) | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (33,041 | ) | — | — | — | (33,041 | ) | ||||||||||||||||||||
Total other comprehensive income (loss) | — | — | — | (43,900 | ) | — | — | — | (43,900 | ) | ||||||||||||||||||||
Stock-based compensation | 322 | — | (1,765 | ) | — | — | 7,379 | — | 5,614 | |||||||||||||||||||||
Common stock issued to savings and pension plan trusts | 574,973 | 6 | 4,381 | — | — | — | 236 | 4,623 | ||||||||||||||||||||||
Sale of common stock under stock options | 316,151 | 3 | 2,813 | — | — | — | — | 2,816 | ||||||||||||||||||||||
Balance at December 31, 2014 | 152,821,011 | $ | 1,528 | $ | 1,825,880 | $ | (336,524 | ) | $ | (245,751 | ) | $ | (239,811 | ) | $ | (796 | ) | $ | 1,004,526 |
PREDECESSOR | ||||||||||||||||||||||||||||||
Issued Shares of Common Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Treasury Stock | Common Stock Held in Employee Benefit & Compensation Trust | Total Stockholders’ Equity | |||||||||||||||||||||||
Balance at December 31, 2014 | 152,821,011 | 1,528 | 1,825,880 | (336,524 | ) | (245,751 | ) | (239,811 | ) | (796 | ) | 1,004,526 | ||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (120,649 | ) | — | — | (120,649 | ) | ||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||
Commodity and foreign currency derivatives and other, net of tax of ($68) | — | — | — | 1,262 | — | — | — | 1,262 | ||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (27,936 | ) | — | — | — | (27,936 | ) | ||||||||||||||||||||
Total other comprehensive (loss) income | — | — | — | (26,674 | ) | — | — | — | (26,674 | ) | ||||||||||||||||||||
Brookfield preferred share issuance | — | — | 145,205 | — | — | — | — | 145,205 | ||||||||||||||||||||||
Stock-based compensation | (2,331 | ) | — | (16,530 | ) | — | — | 31,826 | — | 15,296 | ||||||||||||||||||||
Common stock issued to savings and pension plan trusts | 423,273 | 4 | 1,874 | — | — | — | 796 | 2,674 | ||||||||||||||||||||||
Sale of common stock under stock options | 7,450 | — | 32 | — | — | — | — | 32 | ||||||||||||||||||||||
Balance at August 14, 2015 | 153,249,403 | $ | 1,532 | $ | 1,956,461 | $ | (363,198 | ) | $ | (366,400 | ) | $ | (207,985 | ) | $ | — | $ | 1,020,410 | ||||||||||||
SUCCESSOR | ||||||||||||||||||||||||||||||
Balance at August 15, 2015 | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | ||||||||||||||||
Brookfield capital contribution | 100 | — | 854,337 | — | — | — | — | 854,337 | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (33,551 | ) | — | — | (33,551 | ) | ||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||
Commodity and foreign currency derivatives and other, net of tax of $21 | — | — | — | (124 | ) | — | — | — | (124 | ) | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | (10,133 | ) | — | — | — | (10,133 | ) | ||||||||||||||||||||
Total other comprehensive income (loss) | — | — | — | (10,257 | ) | — | — | — | (10,257 | ) | ||||||||||||||||||||
Balance at December 31, 2015 | 100 | — | 854,337 | (10,257 | ) | (33,551 | ) | — | — | 810,529 |
Issued Shares of Common Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity (Deficit) | |||||||||||||||||
Balance as of December 31, 2016 | 302,225,923 | $ | 3,022 | $ | 851,315 | $ | (7,558 | ) | $ | (269,394 | ) | $ | 577,385 | |||||||||
Net loss | — | — | — | — | 7,983 | 7,983 | ||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||
Commodity and foreign currency derivatives income (loss), net of tax of $0 | — | — | — | 4,819 | — | 4,819 | ||||||||||||||||
Foreign currency translation adjustments, net of tax of $0 | — | — | — | 23,028 | — | 23,028 | ||||||||||||||||
Total other comprehensive income | — | — | — | 27,847 | — | 27,847 | ||||||||||||||||
Balance as of December 31, 2017 | 302,225,923 | $ | 3,022 | $ | 851,315 | $ | 20,289 | $ | (261,411 | ) | 613,215 | |||||||||||
Net income | — | — | — | — | 854,219 | 854,219 | ||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||
Commodity derivatives income (loss), net of tax of $715 | — | — | — | (6,866 | ) | — | (6,866 | ) | ||||||||||||||
Commodity derivatives reclassification adjustments, net of tax of $87 | — | — | — | (832 | ) | — | (832 | ) | ||||||||||||||
Foreign currency translation adjustments, net of tax of ($288) | — | — | — | (18,391 | ) | — | (18,391 | ) | ||||||||||||||
Total other comprehensive loss | — | — | — | (26,089 | ) | — | (26,089 | ) | ||||||||||||||
Common stock repurchased and retired (from related party) | (11,688,311 | ) | (117 | ) | (32,844 | ) | (192,039 | ) | (225,000 | ) | ||||||||||||
Stock-based compensation | 1,151 | 1,151 | ||||||||||||||||||||
Dividends paid to related party stockholder ($ 5.14 per share) | — | — | — | — | (1,488,649 | ) | (1,488,649 | ) | ||||||||||||||
Dividends paid to non-related party stockholders ($0.9345 per share) | — | — | — | — | (55,616 | ) | (55,616 | ) | ||||||||||||||
Related-party promissory note repayment | (750,000 | ) | (750,000 | ) | ||||||||||||||||||
Balance as of December 31, 2018 | 290,537,612 | $ | 2,905 | $ | 819,622 | $ | (5,800 | ) | $ | (1,893,496 | ) | $ | (1,076,769 | ) | ||||||||
Net income | — | — | — | — | 744,602 | 744,602 | ||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||
Commodity and interest rate derivatives income (loss), net of tax of ($3,418) | — | — | — | 11,830 | — | 11,830 | ||||||||||||||||
Commodity derivatives reclassification adjustments, net of tax of $1,872 | — | — | — | (7,020 | ) | — | (7,020 | ) | ||||||||||||||
Foreign currency translation adjustments, net of tax of ($67) | — | — | — | (6,371 | ) | — | (6,371 | ) | ||||||||||||||
Total other comprehensive loss | — | — | — | (1,561 | ) | — | (1,561 | ) | ||||||||||||||
Common stock repurchased and retired (from related party) | (19,047,619 | ) | (190 | ) | (53,524 | ) | — | (196,286 | ) | (250,000 | ) | |||||||||||
Common stock repurchased and retired (from non-related party) | (1,004,685 | ) | (10 | ) | (2,825 | ) | (8,033 | ) | (10,868 | ) | ||||||||||||
Stock based compensation | — | — | 2,146 | — | — | 2,146 | ||||||||||||||||
Dividends paid to related party stockholder ($0.34 per share) | — | — | — | — | (78,010 | ) | (78,010 | ) | ||||||||||||||
Dividends paid to non-related party stockholders ($0.34 per share) | — | — | — | — | (20,613 | ) | (20,613 | ) | ||||||||||||||
Balance as of December 31, 2019 | 270,485,308 | $ | 2,705 | $ | 765,419 | $ | (7,361 | ) | $ | (1,451,836 | ) | $ | (691,073 | ) |
(1) | Business and Summary of Significant Accounting Policies |
Years | ||
Buildings | 25-40 | |
Land improvements | 20 | |
Machinery and equipment | 5-20 | |
Furniture and fixtures | 5-10 |
Years | |
Trade name | |
Technology and know-how | |
Customer related intangible |
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Graphite Electrodes - Three- to five-year take-or-pay contracts | $ | 1,437,354 | $ | 1,341,557 | |||
Graphite Electrodes - Short-term agreements and spot sales | 260,979 | 395,928 | |||||
By-products and other | 92,460 | 158,425 | |||||
Total Revenues | $ | 1,790,793 | $ | 1,895,910 |
Current deferred revenue | Long-Term deferred revenue | ||||||
(Dollars in thousands) | |||||||
Balance as of December 31, 2017 | $ | 20,784 | $ | — | |||
Increases due to cash received | 15,548 | 8,241 | |||||
Revenue recognized | (30,803 | ) | — | ||||
Foreign currency impact | (149 | ) | (525 | ) | |||
Balance as of December 31, 2018 | 5,380 | 7,716 | |||||
Increases due to cash received | 7,961 | — | |||||
Revenue recognized | (4,678 | ) | — | ||||
Revision of estimates | — | (694 | ) | ||||
Reclassification between long-term and current | 3,042 | (3,042 | ) | ||||
Foreign currency impact | 71 | (122 | ) | ||||
Balance as of December 31, 2019 | $ | 11,776 | $ | 3,858 |
Purchase Consideration | |||||||||||
(In thousands except share price) | |||||||||||
# Shares | Unit Price | Amount | |||||||||
Convertible Preferred Equity | |||||||||||
Series A and B | 150 | $ | 1,000.00 | $ | 150,000 | ||||||
Common Equity | |||||||||||
Common Shares | 139,397 | $ | 5.05 | $ | 703,955 | ||||||
Net value of options | $ | 382 | |||||||||
Total | $ | 854,337 |
Three- to five-year take-or-pay contracts | |||
(Dollars in thousands) | |||
2020 | $ | 1,251,093 | |
2021 | 1,211,036 | ||
2022 | 1,144,574 | ||
2023 and thereafter | 29,461 | ||
Total | $ | 3,636,164 |
Net identifiable assets acquired | Previously Reported | |||
Cash | $ | 25,032 | ||
Accounts receivable | 94,298 | |||
Inventories | 346,645 | |||
Property, plant and equipment | 650,405 | |||
Intangible assets | 155,700 | |||
Deferred tax assets | 40,904 | |||
Prepaid and other current assets | 49,716 | |||
Other non-current assets | 8,428 | |||
Accounts payable | (68,005 | ) | ||
Short-term debt | (18,779 | ) | ||
Other accrued liabilities | (53,252 | ) | ||
Long-term debt | (367,811 | ) | ||
Other long-term liabilities | (101,768 | ) | ||
Deferred tax liabilities | (79,235 | ) | ||
Net identifiable assets acquired | $ | 682,278 | ||
Goodwill | $ | 172,059 | ||
Net assets acquired | $ | 854,337 |
2019 | 2018 | 2017 | ||||||
Award type: | ||||||||
Stock options | 229,250 | 979,790 | — | |||||
Deferred share units | 31,829 | 42,243 | — | |||||
Restricted stock units | 260,640 | 6,740 | — |
Number of Shares | Weighted- Average Grant Date Fair Value | ||||||
Outstanding unvested as of December 31, 2018 | 27,570 | $ | 12.88 | ||||
Granted | 292,469 | 12.72 | |||||
Cancelled | (6,084 | ) | 13.36 | ||||
Vested | (31,239 | ) | 12.30 | ||||
Outstanding unvested as of December 31, 2019 | 282,716 | $ | 12.83 |
For the Year Ended December 31, 2013 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other | 6,104 | 2,274 | — | 8,378 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 59 | — | — | 59 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 22,388 | $ | 3,649 | $ | — | $ | 26,037 | |||||||
Inventory loss | 961 | 13,711 | — | 14,672 | |||||||||||
Fixed asset write-offs and other | 5,552 | 1,278 | — | 6,830 | |||||||||||
Recorded in Research and Development | |||||||||||||||
Accelerated depreciation | — | — | 2,312 | 2,312 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Accelerated depreciation | — | — | 608 | 608 | |||||||||||
Other | 89 | 121 | 515 | 725 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 5,040 | 3,113 | 2,845 | 10,998 | |||||||||||
Contract terminations | 469 | 146 | 11 | 626 | |||||||||||
Impairment of long-lived assets | — | 121,570 | — | 121,570 | |||||||||||
Total 2014 rationalization and related charges | $ | 34,499 | $ | 143,588 | $ | 6,291 | $ | 184,378 |
For the Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 432 | $ | — | $ | 940 | 1,372 | ||||||||
Inventory loss | (33 | ) | 975 | — | 942 | ||||||||||
Fixed asset write-offs and other | 1,715 | 1,078 | — | 2,793 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 400 | 755 | 954 | 2,109 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 157 | 4,288 | (168 | ) | 4,277 | ||||||||||
Contract terminations | 25 | 204 | — | 229 | |||||||||||
Total | $ | 2,696 | $ | 7,300 | $ | 1,726 | $ | 11,722 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Inventory loss | $ | (639 | ) | $ | 206 | $ | — | $ | (433 | ) | |||||
Fixed asset write-offs and other | 329 | 697 | — | 1,026 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 135 | 1,323 | 290 | 1,748 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 154 | 769 | 71 | 994 | |||||||||||
Contract terminations | 59 | 22 | — | 81 | |||||||||||
Total | $ | 38 | $ | 3,017 | $ | 361 | $ | 3,416 |
For the Year Ended December 31,2019 | For the Year Ended December 31,2018 | ||||
Dividend yield | 2.39% - 3.05% | 1.70% - 2.27% | |||
Expected volatility | 50 | % | 45 | % | |
Risk-free interest rate | 1.79% - 2.63% | 2.84% - 2.98% | |||
Expected term in years | 6.5 years | 6.5 years |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life in Years | Weighted Average Exercise Prices | Number Exercisable | Weighted Average Exercise Prices | |||||||||||
$11.14 | - | $20.00 | 1,113,480 | 8.5 | $15.17 | 181,822 | $ | 15.73 |
Number of Shares | Weighted- Average Exercise Price | ||||||
Outstanding unvested as of December 31, 2018 | 968,720 | $ | 15.68 | ||||
Granted | 229,250 | 12.90 | |||||
Vested | (188,810 | ) | 15.70 | ||||
Forfeited | (77,502 | ) | 14.87 | ||||
Outstanding unvested as of December 31, 2019 | 931,658 | $ | 15.06 |
For the Year Ended December 31, 2013 | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other | 6,104 | 2,274 | — | 8,378 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 59 | — | — | 59 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 22,388 | 827 | — | 23,215 | ||||||||||
Inventory loss | 961 | 485 | — | 1,446 | |||||||||||
Fixed asset write-offs and other | 5,374 | 233 | 5,607 | ||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 89 | — | 89 | ||||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 433 | (28 | ) | — | 405 | ||||||||||
Contract terminations | 469 | — | — | 469 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 29,714 | $ | 1,517 | $ | — | $ | 31,231 |
For the Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 432 | — | — | 432 | ||||||||||
Inventory loss | (33 | ) | — | — | (33 | ) | |||||||||
Fixed asset write-offs and other | 1,715 | 270 | 1,985 | ||||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 97 | 156 | — | 253 | |||||||||||
Contract terminations | 25 | — | — | 25 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 2,236 | $ | 426 | $ | — | $ | 2,662 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Inventory loss | $ | (278 | ) | $ | (29 | ) | $ | (307 | ) | ||||||
Fixed asset write-offs and other | 329 | 71 | 400 | ||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 245 | — | — | 245 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 177 | — | — | 177 | |||||||||||
Contract terminations | 59 | — | — | 59 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 532 | $ | 42 | $ | — | $ | 574 |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | 18,421 | |
Charges incurred | 613 | ||
Change in estimates | 153 | ||
Payments and settlements | (16,494 | ) | |
Effect of change in currency exchange rates | (1,658 | ) | |
Balance as of December 31, 2014 | 1,035 | ||
Charges incurred | 40 | ||
Change in estimates | 227 | ||
Payments and settlements | (1,102 | ) | |
Effect of change in currency exchange rates | (155 | ) | |
Balance as of August 14, 2015 | $ | 45 | |
Charges incurred | 154 | ||
Change in estimates | 67 | ||
Payments and settlements | (17 | ) | |
Effect of change in currency exchange rates | (59 | ) | |
Balance as of December 31, 2015 | $ | 190 |
Predecessor | Successor | |||||||||||
2014 Engineered Solutions Rationalization | For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||
Engineered Solutions Segment | ||||||||||||
(Dollars in thousands) | ||||||||||||
Recorded in Cost of Sales | ||||||||||||
Accelerated depreciation | $ | 2,802 | $ | — | $ | — | ||||||
Inventory loss | 13,225 | 571 | (80 | ) | ||||||||
Fixed asset write-offs and other | 1,046 | 372 | (229 | ) | ||||||||
Recorded in Rationalizations | ||||||||||||
Severance and related costs | 2,498 | (713 | ) | — | ||||||||
Contract terminations | 195 | 50 | — | |||||||||
Total | $ | 19,766 | $ | 280 | $ | (309 | ) |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | — | |
Charges incurred | 2,611 | ||
Change in estimates | (40 | ) | |
Payments and settlements | (916 | ) | |
Effect of change in currency exchange rates | — | ||
Balance as of December 31, 2014 | $ | 1,655 | |
Charges incurred | 50 | ||
Change in estimates | (713 | ) | |
Payments and settlements | (916 | ) | |
Effect of change in currency exchange rates | 1 | ||
Balance as of August 14, 2015 | $ | 77 | |
Change in estimates | (5 | ) | |
Payments and settlements | (72 | ) | |
Balance as of December 31, 2015 | $ | — |
2014 Corporate, Research and Development Plan | For the Year Ended December 31, 2014 (Predecessor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Cost of Sales | |||||||||||||||||
Accelerated depreciation | $ | — | $ | 20 | $ | — | $ | 20 | |||||||||
Fixed asset write-offs and other | 178 | — | — | 178 | |||||||||||||
Recorded in Research and Development | |||||||||||||||||
Accelerated depreciation | — | — | 2,312 | 2,312 | |||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Accelerated depreciation | — | — | 608 | 608 | |||||||||||||
Other | — | — | 515 | 515 | |||||||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | 4,608 | 644 | 2,844 | 8,096 | |||||||||||||
Contract terminations | — | 73 | 11 | 84 | |||||||||||||
Total | $ | 4,786 | $ | 737 | $ | 6,290 | $ | 11,813 |
2014 Corporate, Research and Development Plan | For the Period January 1 Through August 14, 2015 (Predecessor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Cost of Sales | |||||||||||||||||
Fixed asset write-offs and other | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Recorded in Research and Development | |||||||||||||||||
Accelerated depreciation | — | — | 940 | 940 | |||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Other | 400 | — | 954 | 1,354 | |||||||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | 60 | 8 | (168 | ) | (100 | ) | |||||||||||
Total | $ | 460 | $ | 9 | $ | 1,726 | $ | 2,195 |
2014 Corporate, Research and Development Plan | For the Period August 15 Through December 31, 2015 (Successor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Other | $ | — | $ | — | $ | 290 | $ | 290 | |||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | (23 | ) | — | 71 | 48 | ||||||||||||
Total | $ | (23 | ) | $ | — | $ | 361 | $ | 338 |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | — | |
Charges incurred | 8,159 | ||
Change in estimates | 21 | ||
Payments and settlements | (1,155 | ) | |
Effect of change in currency exchange rates | (152 | ) | |
Balance as of December 31, 2014 | $ | 6,873 | |
Charges incurred | (33 | ) | |
Change in estimates | (67 | ) | |
Payments and settlements | (4,611 | ) | |
Effect of change in currency exchange rates | (81 | ) | |
Balance as of August 14, 2015 | $ | 2,081 | |
Change in estimates | 47 | ||
Payments and settlements | (1,127 | ) | |
Effect of change in currency exchange rates | (57 | ) | |
Balance as of December 31, 2015 | $ | 944 |
Predecessor | Successor | |||||||
2015 Advanced Graphite Materials Rationalization | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||
Engineered Solutions Segment | ||||||||
(Dollars in thousands) | ||||||||
Recorded in Cost of Sales | ||||||||
Inventory loss | $ | 404 | $ | (47 | ) | |||
Fixed asset write-offs and other | 434 | 855 | ||||||
Recorded in Selling and General Administrative | ||||||||
Other | 755 | 1,213 | ||||||
Recorded in Rationalizations | ||||||||
Severance and related costs | 4,838 | 769 | ||||||
Contract terminations | 154 | 22 | ||||||
Total | $ | 6,585 | $ | 2,812 |
2015 Advanced Graphite Materials Rationalization | |||
(Dollars in thousands) | |||
Balance as of December 31, 2014 | $ | — | |
Charges incurred | 5,053 | ||
Change in estimates | (38 | ) | |
Payments and settlements | (329 | ) | |
Effect of change in currency exchange rates | — | ||
Balance as of August 14, 2015 | $ | 4,686 | |
Charges incurred | 647 | ||
Payments and settlements | (3,418 | ) | |
Balance as of December 31, 2015 | $ | 1,915 |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31, | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Net sales to external customers: | |||||||||||||||
Industrial Materials | $ | 909,448 | $ | 840,103 | $ | 341,974 | $ | 193,223 | |||||||
Engineered Solutions | 257,226 | 245,201 | 95,957 | 55,518 | |||||||||||
Total net sales | $ | 1,166,674 | $ | 1,085,304 | $ | 437,931 | $ | 248,741 | |||||||
Segment operating income (loss): | |||||||||||||||
Industrial Materials | $ | 20,007 | $ | (50,260 | ) | $ | (25,678 | ) | $ | (4,017 | ) | ||||
Engineered Solutions | 28,392 | (138,271 | ) | (15,368 | ) | (457 | ) | ||||||||
Corporate, R&D and Other expenses | (50,969 | ) | (67,089 | ) | (47,431 | ) | (12,235 | ) | |||||||
Total segment operating income (loss) | $ | (2,570 | ) | $ | (255,620 | ) | $ | (88,477 | ) | $ | (16,709 | ) | |||
Reconciliation of segment operating income (loss) to loss from continuing operations before provision for income taxes: | |||||||||||||||
Other expense (income), net | $ | 1,698 | $ | 2,445 | $ | 1,335 | $ | (943 | ) | ||||||
Interest expense | 36,037 | 37,057 | 27,118 | 10,916 | |||||||||||
Interest income | (203 | ) | (330 | ) | (367 | ) | (11 | ) | |||||||
Loss before provision for income taxes | $ | (40,102 | ) | $ | (294,792 | ) | $ | (116,563 | ) | $ | (26,671 | ) |
As of December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
Industrial Materials. | $ | 552,155 | $ | 571,424 | |||
Engineered Solutions | 101,885 | 66,109 | |||||
Total long-lived assets | $ | 654,040 | $ | 637,533 |
For the Twelve Months Ended December 31, | |||||||||||
2013 | 2014 | 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales:* | |||||||||||
U.S. | $ | 289,866 | $ | 284,209 | $ | 176,402 | |||||
Americas | 177,602 | 180,070 | 140,629 | ||||||||
Asia Pacific | 220,945 | 192,230 | 84,287 | ||||||||
Europe, Middle East, Africa | 478,261 | 428,795 | 285,354 | ||||||||
Total | $ | 1,166,674 | $ | 1,085,304 | $ | 686,672 |
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales: | |||||||||||
United States | $ | 403,916 | $ | 429,599 | $ | 103,890 | |||||
Americas (excluding the United States) | 348,670 | 367,561 | 129,103 | ||||||||
Asia Pacific | 172,439 | 131,578 | 46,329 | ||||||||
Europe, Middle East, Africa | 865,768 | 967,172 | 271,449 | ||||||||
Total | $ | 1,790,793 | $ | 1,895,910 | $ | 550,771 |
At December 31, | At December 31, | |||||||||||||
2014 | 2015 | 2019 | 2018 | (Dollars in thousands) | ||||||||||
Long-lived assets (a): | ||||||||||||||
U.S. and Canada | $ | 431,601 | $ | 291,493 | ||||||||||
United States | $ | 174,307 | $ | 169,301 | ||||||||||
Mexico | 89,731 | 158,950 | 141,621 | 146,790 | ||||||||||
Brazil | 9,492 | 8,787 | 5,694 | 3,320 | ||||||||||
France | 49,602 | 77,412 | 88,514 | 91,022 | ||||||||||
Spain | 70,648 | 93,049 | 102,577 | 103,121 | ||||||||||
South Africa | 2,064 | 4,167 | ||||||||||||
Italy | 508 | 3,249 | ||||||||||||
Switzerland | 287 | 266 | ||||||||||||
Other countries | 107 | 160 | 307 | 151 | ||||||||||
Total | $ | 654,040 | $ | 637,533 | $ | 513,020 | $ | 513,705 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
2018 Credit Facility (2018 Term Loan and 2018 Revolving Facility) | $ | 1,812,204 | $ | 2,155,883 | |||
Other Debt | 619 | 751 | |||||
Total Debt | 1,812,823 | 2,156,634 | |||||
Less: Short-term Debt | (141 | ) | (106,323 | ) | |||
Long-term Debt | $ | 1,812,682 | $ | 2,050,311 |
Total | |||
(Dollars in Thousands) | |||
Balance as of December 31, 2017 | $ | 171,117 | |
Adjustments | — | ||
Balance as of December 31, 2018 | 171,117 | ||
Adjustments | — | ||
Balance as of December 31, 2019 | $ | 171,117 |
Total | |||
Predecessor | (Dollars in Thousands) | ||
Balance as of December 31, 2013 | $ | 496,810 | |
Impairment | (76,063 | ) | |
Currency translation effect | (618 | ) | |
Balance as of December 31, 2014 | 420,129 | ||
Impairment | (35,381 | ) | |
Currency translation effect | (616 | ) | |
Balance as of August 14, 2015 | $ | 384,132 | |
Successor | |||
Balance as of August 15, 2015 | $ | 170,418 | |
Adjustments | 1,641 | ||
Balance as of December 31, 2015 | 172,059 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Trade name | $ | 22,500 | $ | (9,861 | ) | $ | 12,639 | $ | 22,500 | $ | (7,721 | ) | $ | 14,779 | |||||||||
Technology and know-how | 55,300 | (29,112 | ) | 26,188 | 55,300 | (23,503 | ) | 31,797 | |||||||||||||||
Customer related intangible | 64,500 | (19,473 | ) | 45,027 | 64,500 | (15,070 | ) | 49,430 | |||||||||||||||
Total finite-lived intangible assets | $ | 142,300 | $ | (58,446 | ) | $ | 83,854 | $ | 142,300 | $ | (46,294 | ) | $ | 96,006 |
Predecessor | |||||||||||||||||||||||
As of December 31, 2014 | As of August 14, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment | Net Carrying Amount | ||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | ||||||||||||||||||||||
Trade name | 7,900 | (4,817 | ) | 3,083 | 7,900 | (5,173 | ) | 2,727 | |||||||||||||||
Technology and know-how | 43,349 | (24,940 | ) | 18,409 | 43,349 | (28,649 | ) | 14,700 | |||||||||||||||
Customer related intangible | 110,798 | (57,192 | ) | 53,606 | 110,798 | (63,866 | ) | 46,932 | |||||||||||||||
Total finite-lived intangible assets | $ | 162,047 | $ | (86,949 | ) | $ | 75,098 | $ | 162,047 | $ | (97,688 | ) | $ | 64,359 |
Successor | ||||||||||||
As of December 31, 2015 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization / Impairment | Net Carrying Amount | ||||||||||
(Dollars in Thousands) | ||||||||||||
Trade name | 26,800 | (1,048 | ) | 25,752 | ||||||||
Technology and know-how | 63,200 | (3,327 | ) | 59,873 | ||||||||
Customer related intangible | 65,700 | (1,813 | ) | 63,887 | ||||||||
Total finite-lived intangible assets | $ | 155,700 | $ | (6,188 | ) | $ | 149,512 |
As of December 31, 2014 | As of December 31, 2015 | ||||||
(Dollars in thousands) | |||||||
Credit Facility (Revolving Facility and Term Loan Facility) | $ | 40,000 | $ | 98,000 | |||
Senior Subordinated Notes | 187,973 | — | |||||
Senior Notes | 300,000 | 267,827 | |||||
Other Debt | 1,746 | 1,400 | |||||
Total Debt | 529,719 | 367,227 | |||||
Less: Short-term Debt | (188,104 | ) | (4,772 | ) | |||
Long-term Debt | $ | 341,615 | $ | 362,455 |
(7) Interest Expense |
For the Year Ended December 31 | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Interest incurred on debt | $ | 121,010 | $ | 100,844 | $ | 24,060 | |||||
Related Party Promissory Note interest expense | — | 5,090 | — | ||||||||
Senior Note redemption premium | — | 4,782 | — | ||||||||
Accretion of fair value adjustment on Senior Notes | — | 19,414 | 6,454 | ||||||||
Accretion of original issue discount on 2018 Term Loans | 2,196 | 1,455 | — | ||||||||
Amortization of debt issuance costs | 4,125 | 3,476 | 309 | ||||||||
Total interest expense | $ | 127,331 | $ | 135,061 | $ | 30,823 |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest incurred on debt | $ | 21,589 | $ | 21,373 | $ | 12,973 | $ | 8,611 | |||||||
Amortization of discount on Senior Subordinated Notes | 11,493 | 12,298 | 12,027 | — | |||||||||||
Accretion of fair value adjustment on Senior Notes | — | — | — | 2,305 | |||||||||||
Amortization of debt issuance costs | 2,504 | 3,339 | 2,118 | — | |||||||||||
Supply Chain Financing mark-up | 451 | 47 | — | — | |||||||||||
Total interest expense | $ | 36,037 | $ | 37,057 | $ | 27,118 | $ | 10,916 |
• | Level 1 – based upon quoted prices for identical instruments in active markets, |
• | Level 2 – based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations of all of whose significant inputs are observable, and |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2019 | (Dollars in thousands) | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Commodity derivative contracts | Prepaid and other current assets | $ | 104 | Other accrued liabilities | $ | 1,872 | |||||
Other long-term assets | 369 | Other long-term obligations | 2,255 | ||||||||
Interest rate swap contracts | Prepaid and other current assets | 253 | Other accrued liabilities | — | |||||||
Other long-term assets | 2,684 | Other long-term obligations | 72 | ||||||||
Total fair value | $ | 3,410 | $ | 4,199 | |||||||
As of December 31, 2018 | |||||||||||
Commodity derivative contracts | Prepaid and other current assets | $ | 90 | Other accrued liabilities | $ | 4,630 | |||||
Other long-term assets | 260 | Other long-term obligations | 6,393 | ||||||||
Total fair value | $ | 350 | $ | 11,023 | |||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2019 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 239 | Other current liabilities | $ | 81 | |||||
Commodity derivative contracts | Prepaid and other current assets | 376 | Other accrued liabilities | — | |||||||
Total fair value | $ | 615 | $ | 81 | |||||||
As of December 31, 2018 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | — | Other current liabilities | $ | 43 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 722 | Other current liabilities | $ | 1,234 | |||||
Commodity derivative contracts | Prepaid and other current assets | — | Other current liabilities | 7,067 | |||||||
Total fair value | $ | 722 | $ | 8,301 | |||||||
As of December 31, 2015 | |||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | — | Other current liabilities | $ | — | |||||
Commodity derivative contracts | Prepaid and other current assets | — | Other current liabilities | 1 | |||||||
Total fair value | $ | — | $ | 1 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 80 | Other current liabilities | $ | 428 | |||||
Total fair value | $ | 80 | $ | 428 | |||||||
As of December 31, 2015 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 76 | Other current liabilities | $ | 11 | |||||
Total fair value | $ | 76 | $ | 11 |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations | 2019 | 2018 | 2017 | |||||||||||
Derivatives designated as cash flow hedges: | (Dollars in thousands) | |||||||||||||
Commodity derivative contracts | Cost of sales | $ | (8,892 | ) | $ | (919 | ) | $ | — | |||||
Interest rate swaps | Interest expense | (1,050 | ) | — | — |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations | 2019 | 2018 | 2017 | |||||||||||
Derivatives not designated as hedges: | (Dollars in thousands) | |||||||||||||
Foreign currency derivatives | Cost of sales, Other expense/(income) | $ | (506 | ) | $ | (522 | ) | $ | (1,565 | ) | ||||
Commodity derivative contracts | Cost of sales | (223 | ) | — | — |
Amount of (Gain)/Loss Recognized (Effective Portion) | ||||||||||||||
Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion) | 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||
Foreign currency derivatives, excluding tax of $85 and $106 $17, respectively | Cost of goods sold Other expense / (income) / Revenue | $ | (849 | ) | $ | (1,062 | ) | $ | (172 | ) | ||||
Commodity forward derivatives, excluding tax of $(120), $(424) and $0 respectively | Cost of goods sold / Revenue | $ | 328 | $ | 1,161 | $ | — |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Income | 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||
Foreign currency derivatives | Cost of goods sold/Other expense (income) | $ | 1,020 | $ | 1,060 | $ | (560 | ) |
(9) | Supplementary Balance Sheet Detail |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 104,820 | $ | 99,935 | |||
Work in process | 137,230 | 125,767 | |||||
Finished goods | 71,598 | 68,015 | |||||
$ | 313,648 | $ | 293,717 | ||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,986 | $ | 10,720 | |||
Value added tax and other indirect taxes receivable | 13,890 | 19,242 | |||||
Spare parts inventory | 12,738 | 11,507 | |||||
Other current assets | 4,332 | 4,699 | |||||
$ | 40,946 | $ | 46,168 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 46,548 | $ | 45,947 | |||
Buildings | 71,784 | 68,680 | |||||
Machinery and equipment and other | 567,715 | 532,084 | |||||
Construction in progress | 47,370 | 42,131 | |||||
$ | 733,417 | $ | 688,842 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 11,801 | $ | 17,284 | |||
Employee benefits | 7,416 | 6,977 | |||||
Deferred Revenue | 11,776 | 5,380 | |||||
Other | 17,342 | 20,811 | |||||
$ | 48,335 | $ | 50,452 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 16,528 | $ | 16,192 | |||
Pension and related benefits | 37,431 | 33,718 | |||||
Other | 18,603 | 22,609 | |||||
$ | 72,562 | $ | 72,519 |
At December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 122,218 | $ | 80,408 | |||
Work in process | 176,141 | 136,858 | |||||
Finished goods | 84,544 | 78,196 | |||||
382,903 | 295,462 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,923 | $ | 9,297 | |||
Current portion of deferred taxes | 28,426 | — | |||||
Value added tax and other indirect taxes receivable | 39,837 | 10,087 | |||||
Other current assets | 3,437 | 2,290 | |||||
$ | 81,623 | $ | 21,674 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 36,375 | $ | 54,064 | |||
Buildings | 193,427 | 76,331 | |||||
Machinery and equipment and other | 1,212,120 | 486,194 | |||||
Construction in progress | 58,899 | 44,291 | |||||
$ | 1,500,821 | $ | 660,880 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 6,151 | $ | 4,588 | |||
Customer prepayments | 5,534 | 559 | |||||
Employee compensation and benefits | 8,932 | 7,842 | |||||
Other | 22,702 | 16,790 | |||||
$ | 43,319 | $ | 29,779 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 24,833 | $ | 20,019 | |||
Pension and related benefits | 65,882 | 55,364 | |||||
Other | 16,851 | 20,102 | |||||
$ | 107,566 | $ | 95,485 |
2019 | 2018 | 2017 | |||||||||
Balance at beginning of year | $ | 1,129 | $ | 1,097 | $ | 326 | |||||
Additions | 4,636 | 122 | 771 | ||||||||
Deductions | (291 | ) | (90 | ) | — | ||||||
Balance at end of year | $ | 5,474 | $ | 1,129 | $ | 1,097 |
As of December 31, | For the Period January 1 through August 14, 2015 | For the Period August 15 through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at beginning of year | $ | 7,573 | $ | 6,718 | $ | 7,471 | $ | — | |||||||
Additions | 2,914 | 8,675 | 1,156 | 304 | |||||||||||
Deductions | (3,769 | ) | (7,922 | ) | (2,313 | ) | — | ||||||||
Balance at end of year | $ | 6,718 | $ | 7,471 | $ | 6,314 | $ | 304 |
(10) |
For Year Ended December 31, 2019 | ||||
(Dollars in thousands) | ||||
Operating lease cost | 4,816 | |||
Short-term lease cost | 14 | |||
Variable lease cost | 227 | |||
Total lease cost | $ | 5,057 |
For Year Ended December 31, 2019 | |||
(Dollars in thousands) | |||
RoU assets obtained in exchange for new operating lease liabilities (non-cash) | 4,995 | ||
Operating (use of cash) from operating leases | (4,724 | ) |
As of December 31, 2019 | ||||
(Dollars in thousands) | ||||
Operating RoU Assets* | $ | 7,994 | ||
*Amount included in Other assets | ||||
Current operating lease liabilities | 4,475 | |||
Non-current operating lease liabilities | 3,598 | |||
Total operating lease liabilities** | $ | 8,073 | ||
**Amounts included in Other accrued liabilities and Other long-term obligations | ||||
Weighted average remaining lease term (in years) | 2.3 | |||
Weighted average discount rate - operating leases | 5.61 | % |
(Dollars in thousands) | ||||
2020 | 4,496 | |||
2021 | 2,693 | |||
2022 | 702 | |||
2023 | 358 | |||
2024 and thereafter | 379 | |||
Total lease payments | $ | 8,628 | ||
Less: Imputed interest | (555 | ) | ||
Present value of lease payments | 8,073 | |||
Less: Current operating lease liability | (4,475 | ) | ||
Non-current operating lease liability | $ | 3,598 |
(Dollars in thousands) | |||
2016 | $ | 3,957 | |
2017 | 2,423 | ||
2018 | 2,136 | ||
2019 | 1,773 | ||
2020 | 934 | ||
After 2020 | 45 |
(Dollars in thousands) | |||
2019 | $ | 4,474 | |
2020 | 2,747 | ||
2021 | 1,497 | ||
2022 | 334 | ||
2023 | 269 | ||
2024 and thereafter | 343 |
(11) | Retirement Plans and Postretirement Benefits |
For the Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 1,297 | $ | 624 | $ | 1,315 | $ | 674 | $ | 1,305 | $ | 710 | |||||||||||
Interest cost | 5,070 | 275 | 4,709 | 253 | 5,352 | 199 | |||||||||||||||||
Expected return on assets | (5,026 | ) | (424 | ) | (5,679 | ) | (330 | ) | (5,268 | ) | (299 | ) | |||||||||||
Mark-to-market loss (gain) | 205 | 3,302 | 2,473 | 503 | (4,140 | ) | (53 | ) | |||||||||||||||
Pension costs | $ | 1,546 | $ | 3,777 | $ | 2,818 | $ | 1,100 | $ | (2,751 | ) | $ | 557 |
Predecessor | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 870 | $ | 1,177 | $ | 750 | $ | 1,107 | |||||||
Interest cost | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||
Expected return on assets | (4,505 | ) | (2,339 | ) | (5,215 | ) | (2,516 | ) | |||||||
Amortization of prior service cost | — | 25 | — | 2 | |||||||||||
Curtailment gain | — | — | — | (28 | ) | ||||||||||
Mark-to-market loss (gain) | (11,907 | ) | (393 | ) | 18,431 | (534 | ) | ||||||||
$ | (10,104 | ) | $ | 1,012 | $ | 19,949 | $ | 700 |
Predecessor | Successor | ||||||||||||||
For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 151 | $ | 98 | $ | 386 | $ | 281 | |||||||
Interest cost | 854 | 554 | 2,200 | 94 | |||||||||||
Expected return on assets | — | — | (1,885 | ) | (59 | ) | |||||||||
Amortization of prior service cost | — | (12 | ) | — | — | ||||||||||
Curtailment gain | — | — | — | (675 | ) | ||||||||||
Mark-to-market loss (gain) | — | — | 716 | 1,843 | |||||||||||
$ | 1,005 | $ | 640 | $ | 1,417 | $ | 1,484 |
Predecessor | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Amortization of prior service cost | $ | — | $ | (25 | ) | $ | — | $ | (26 | ) | |||||
Addition to prior service cost | — | (246 | ) | — | — | ||||||||||
Effect of exchange rates | — | 11 | — | 8 | |||||||||||
Total recognized in other comprehensive loss | $ | — | $ | (260 | ) | $ | — | $ | (18 | ) | |||||
Total recognized in pension costs and other comprehensive loss | $ | (10,104 | ) | $ | 752 | $ | 19,949 | $ | 682 |
Predecessor | ||||||||
For the Period January 1 Through August 14, 2015 | ||||||||
U.S. | Foreign | |||||||
(Dollars in thousands) | ||||||||
Amortization of prior service cost | $ | — | $ | 28 | ||||
Addition to prior service cost | — | — | ||||||
Effect of exchange rates | — | — | ||||||
Total recognized in other comprehensive loss | $ | — | $ | 28 | ||||
Total recognized in pension costs and other comprehensive loss | $ | — | $ | 28 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 126,985 | $ | 22,332 | $ | 139,746 | $ | 20,407 | |||||||
Service cost | 1,297 | 624 | 1,315 | 674 | |||||||||||
Interest cost | 5,070 | 275 | 4,709 | 253 | |||||||||||
Participant contributions | — | 417 | — | 392 | |||||||||||
Foreign currency exchange changes | — | 379 | — | (339 | ) | ||||||||||
Actuarial (gain) loss | 12,868 | 3,319 | (8,297 | ) | 711 | ||||||||||
Benefits paid | (10,410 | ) | 1,557 | (10,488 | ) | 234 | |||||||||
Net benefit obligation at end of period | $ | 135,810 | $ | 28,903 | $ | 126,985 | $ | 22,332 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | 99,845 | $ | 15,354 | $ | 109,845 | $ | 13,618 | |||||||
Actual return on plan assets | 17,689 | 441 | (5,091 | ) | 538 | ||||||||||
Foreign currency exchange rate changes | — | 377 | — | (154 | ) | ||||||||||
Employer contributions | 708 | 834 | 5,579 | 726 | |||||||||||
Participant contributions | — | 417 | — | 392 | |||||||||||
Benefits paid | (10,410 | ) | 1,557 | (10,488 | ) | 234 | |||||||||
Fair value of plan assets at end of period | $ | 107,832 | $ | 18,980 | $ | 99,845 | $ | 15,354 | |||||||
Funded status (underfunded): | $ | (27,978 | ) | $ | (9,923 | ) | $ | (27,140 | ) | $ | (6,978 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | 37 | $ | — | $ | 147 | |||||||
Current liabilities | (427 | ) | (43 | ) | (430 | ) | (117 | ) | |||||||
Non-current liabilities | (27,551 | ) | (9,917 | ) | (26,710 | ) | (7,008 | ) | |||||||
Net amount recognized | $ | (27,978 | ) | $ | (9,923 | ) | $ | (27,140 | ) | $ | (6,978 | ) |
Predecessor | Successor | ||||||||||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 134,787 | $ | 78,421 | $ | 146,790 | $ | 18,512 | |||||||
Service cost | 750 | 1,107 | 386 | 281 | |||||||||||
Interest cost | 5,983 | 2,669 | 2,200 | 94 | |||||||||||
Participant contributions | — | 288 | — | 79 | |||||||||||
Plan amendments / curtailments | — | — | (578 | ) | |||||||||||
Foreign currency exchange changes | — | (6,171 | ) | — | (480 | ) | |||||||||
Actuarial loss (gain) | 21,456 | 11,935 | (3,896 | ) | 377 | ||||||||||
Benefits paid | (8,608 | ) | (5,646 | ) | (3,354 | ) | (14 | ) | |||||||
Net benefit obligation at end of period | $ | 154,368 | $ | 82,603 | $ | 142,126 | $ | 18,271 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | 90,875 | $ | 72,685 | $ | 97,473 | $ | 12,811 | |||||||
Actual return on plan assets | 8,240 | 14,971 | (2,727 | ) | (1,407 | ) | |||||||||
Foreign currency exchange rate changes | — | (5,479 | ) | — | (346 | ) | |||||||||
Employer contributions | 8,947 | 909 | 2,505 | 170 | |||||||||||
Participant contributions | — | 288 | — | 79 | |||||||||||
Benefits paid | (8,608 | ) | (5,646 | ) | (3,354 | ) | (14 | ) | |||||||
Fair value of plan assets at end of period | $ | 99,454 | $ | 77,728 | $ | 93,897 | $ | 11,293 | |||||||
Funded status (underfunded): | $ | (54,914 | ) | $ | (4,875 | ) | $ | (48,229 | ) | $ | (6,978 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (25 | ) | $ | — | $ | (95 | ) | |||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | 1,365 | $ | — | $ | — | |||||||
Current liabilities | (439 | ) | (324 | ) | (437 | ) | (253 | ) | |||||||
Non-current liabilities | (54,475 | ) | (5,916 | ) | (47,792 | ) | (6,725 | ) | |||||||
Net amount recognized | $ | (54,914 | ) | $ | (4,875 | ) | $ | (48,229 | ) | $ | (6,978 | ) |
Number of Shares | Weighted- Average Grant Date Fair Value | ||||||
Outstanding unvested as of December 31, 2018 | 27,570 | $ | 12.88 | ||||
Granted | 292,469 | 12.72 | |||||
Cancelled | (6,084 | ) | 13.36 | ||||
Vested | (31,239 | ) | 12.30 | ||||
Outstanding unvested as of December 31, 2019 | 282,716 | $ | 12.83 |
For the Year Ended December 31,2019 | For the Year Ended December 31,2018 | ||||
Dividend yield | 2.39% - 3.05% | 1.70% - 2.27% | |||
Expected volatility | 50 | % | 45 | % | |
Risk-free interest rate | 1.79% - 2.63% | 2.84% - 2.98% | |||
Expected term in years | 6.5 years | 6.5 years |
Predecessor | Successor | ||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2015 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 906 | $ | — | $ | — | $ | 906 | $ | 1,986 | $ | — | $ | — | $ | 1,986 | |||||||||||||||
Collective trusts | — | 98,548 | — | 98,548 | — | 91,911 | — | 91,911 | |||||||||||||||||||||||
Total | $ | 906 | $ | 98,548 | $ | — | $ | 99,454 | $ | 1,986 | $ | 91,911 | $ | — | $ | 93,897 | |||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,364 | $ | — | $ | — | $ | 1,364 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Foreign government bonds | — | 1,038 | — | 1,038 | — | 840 | — | 840 | |||||||||||||||||||||||
Investment contracts | — | — | 61,990 | 61,990 | — | — | — | — | |||||||||||||||||||||||
Fixed insurance contracts | — | — | 13,336 | 13,336 | — | — | 10,453 | 10,453 | |||||||||||||||||||||||
Total | $ | 1,364 | $ | 1,038 | $ | 75,326 | $ | 77,728 | $ | — | $ | 840 | $ | 10,453 | $ | 11,293 |
Investment Contracts | Fixed Insurance Contracts | ||||||
Balance at January 1, 2014 (Predecessor) | $ | 58,127 | $ | 10,865 | |||
Gain / contributions / currency impact | 5,585 | 2,471 | |||||
Distributions | (1,722 | ) | — | ||||
Balance at December 31, 2014 (Predecessor) | 61,990 | 13,336 | |||||
Gain / contributions / currency impact | — | (2,883 | ) | ||||
Distributions | (61,990 | ) | — | ||||
Balance at December 31, 2015 (Successor) | $ | — | $ | 10,453 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life in Years | Weighted Average Exercise Prices | Number Exercisable | Weighted Average Exercise Prices | |||||||||||
$11.14 | - | $20.00 | 1,113,480 | 8.5 | $15.17 | 181,822 | $ | 15.73 |
Number of Shares | Weighted- Average Exercise Price | ||||||
Outstanding unvested as of December 31, 2018 | 968,720 | $ | 15.68 | ||||
Granted | 229,250 | 12.90 | |||||
Vested | (188,810 | ) | 15.70 | ||||
Forfeited | (77,502 | ) | 14.87 | ||||
Outstanding unvested as of December 31, 2019 | 931,658 | $ | 15.06 |
Pension Benefit Obligations | As of December 31, | ||||
2014 | 2015 | ||||
Predecessor | Successor | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 3.33 | % | 3.86 | % | |
Rate of compensation increase | 2.08 | % | 1.84 | % |
Pension Benefit Obligations | As of December 31, | ||||
2014 | 2015 | ||||
Predecessor | Successor | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.20 | % | 3.79 | % | |
Expected return on plan assets | 4.77 | % | 3.99 | % | |
Rate of compensation increase | 2.42 | % | 2.08 | % |
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales: | |||||||||||
United States | $ | 403,916 | $ | 429,599 | $ | 103,890 | |||||
Americas (excluding the United States) | 348,670 | 367,561 | 129,103 | ||||||||
Asia Pacific | 172,439 | 131,578 | 46,329 | ||||||||
Europe, Middle East, Africa | 865,768 | 967,172 | 271,449 | ||||||||
Total | $ | 1,790,793 | $ | 1,895,910 | $ | 550,771 |
Percentage of Plan Assets as of December 31, 2015 (Successor) | |||||
US | Foreign | ||||
Equity securities and return seeking assets | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
At December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
United States | $ | 174,307 | $ | 169,301 | |||
Mexico | 141,621 | 146,790 | |||||
Brazil | 5,694 | 3,320 | |||||
France | 88,514 | 91,022 | |||||
Spain | 102,577 | 103,121 | |||||
Other countries | 307 | 151 | |||||
Total | $ | 513,020 | $ | 513,705 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
2018 Credit Facility (2018 Term Loan and 2018 Revolving Facility) | $ | 1,812,204 | $ | 2,155,883 | |||
Other Debt | 619 | 751 | |||||
Total Debt | 1,812,823 | 2,156,634 | |||||
Less: Short-term Debt | (141 | ) | (106,323 | ) | |||
Long-term Debt | $ | 1,812,682 | $ | 2,050,311 |
Predecessor | Successor | ||||||||||||||
2014 | 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 154,368 | $ | 18,756 | $ | 142,126 | $ | 16,749 | |||||||
Fair value of plan assets | 99,454 | 14,374 | 93,897 | 11,293 |
Predecessor | Successor | ||||||||||||||
2014 | 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 154,368 | $ | 20,617 | $ | 142,126 | $ | 18,271 | |||||||
Fair value of plan assets | 99,454 | 14,374 | 93,897 | 11,293 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2016: | |||||||
Expected employer contributions | $ | 8,693 | $ | 696 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2016 | 9,153 | 893 | |||||
2017 | 9,150 | 883 | |||||
2018 | 9,182 | 820 | |||||
2019 | 9,211 | 665 | |||||
2020 | 9,256 | 738 | |||||
2021-2025 | 46,479 | 5,336 |
Predecessor | ||||||||||||||||||||||||
For the Year Ended December 31, | For the Period January 1 through August 14, 2015 | |||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Service cost | $ | — | $ | 105 | $ | — | $ | 71 | — | $ | 9 | |||||||||||||
Interest cost | 371 | 994 | 396 | 976 | 223 | 433 | ||||||||||||||||||
Amortization of prior service credit | — | (193 | ) | — | (180 | ) | — | — | ||||||||||||||||
Plan amendment / curtailment | — | — | — | (294 | ) | — | — | |||||||||||||||||
Mark-to-market (gain) loss | (1,284 | ) | (1,210 | ) | 1,151 | 1,456 | — | — | ||||||||||||||||
$ | (913 | ) | $ | (304 | ) | $ | 1,547 | $ | 2,029 | $ | 223 | $ | 442 |
Successor | ||||||||
For the Period August 15 Through December 31, 2015 | ||||||||
U.S. | Foreign | |||||||
Service cost | $ | — | $ | 5 | ||||
Interest cost | 142 | 289 | ||||||
Amortization of prior service credit | — | — | ||||||
Plan amendment / curtailment | — | — | ||||||
Mark-to-market (gain) loss | (100 | ) | (621 | ) | ||||
$ | 42 | $ | (327 | ) |
Predecessor | ||||||||||||||||||||||||
For the Year Ended December 31, | For the Period January 1 through August 14, 2015 | |||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | 193 | $ | — | $ | 180 | $ | — | $ | (95 | ) | |||||||||||
Effect of exchange rates | — | 133 | — | 148 | — | — | ||||||||||||||||||
Total recognized in other comprehensive income | $ | — | $ | 326 | $ | — | $ | 328 | $ | — | $ | (95 | ) | |||||||||||
Total recognized in net post retirement cost (benefit) and other comprehensive income | $ | (913 | ) | $ | 22 | $ | 1,547 | $ | 2,357 | $ | — | $ | (95 | ) |
Postretirement Benefits | Predecessor | Successor | |||||||||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 11,275 | $ | 15,645 | $ | 11,395 | $ | 13,457 | |||||||
Service cost | — | 71 | — | 5 | |||||||||||
Interest cost | 396 | 976 | 142 | 289 | |||||||||||
Foreign currency exchange rates | — | (1,437 | ) | — | (1,489 | ) | |||||||||
Actuarial loss (gain) | 1,151 | 1,511 | (100 | ) | (621 | ) | |||||||||
Gross benefits paid | (1,236 | ) | (1,068 | ) | (578 | ) | (345 | ) | |||||||
Plan amendment | — | (294 | ) | — | — | ||||||||||
Net benefit obligation at end of period | $ | 11,586 | $ | 15,404 | $ | 10,859 | $ | 11,296 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 1,236 | 1,068 | 578 | 345 | |||||||||||
Gross benefits paid | (1,236 | ) | (1,068 | ) | (578 | ) | (345 | ) | |||||||
Fair value of plan assets at end of period | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (11,586 | ) | $ | (15,404 | ) | $ | (10,859 | ) | $ | (11,296 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | 1,554 | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,204 | ) | $ | (953 | ) | $ | (1,298 | ) | $ | (755 | ) | |||
Non-current liabilities | (10,382 | ) | (14,451 | ) | (9,561 | ) | (10,541 | ) | |||||||
Net amount recognized | $ | (11,586 | ) | $ | (15,404 | ) | $ | (10,859 | ) | $ | (11,296 | ) |
Total | |||
(Dollars in Thousands) | |||
Balance as of December 31, 2017 | $ | 171,117 | |
Adjustments | — | ||
Balance as of December 31, 2018 | 171,117 | ||
Adjustments | — | ||
Balance as of December 31, 2019 | $ | 171,117 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Trade name | $ | 22,500 | $ | (9,861 | ) | $ | 12,639 | $ | 22,500 | $ | (7,721 | ) | $ | 14,779 | |||||||||
Technology and know-how | 55,300 | (29,112 | ) | 26,188 | 55,300 | (23,503 | ) | 31,797 | |||||||||||||||
Customer related intangible | 64,500 | (19,473 | ) | 45,027 | 64,500 | (15,070 | ) | 49,430 | |||||||||||||||
Total finite-lived intangible assets | $ | 142,300 | $ | (58,446 | ) | $ | 83,854 | $ | 142,300 | $ | (46,294 | ) | $ | 96,006 |
Postretirement Benefit Obligations | Predecessor | Successor | |||
As of December 31, | |||||
2014 | 2015 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 4.82 | % | 5.10 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.55 | % | 6.67 | % | |
Ultimate | 6.18 | % | 6.48 | % | |
Years to ultimate | 1 | 2 |
For the Year Ended December 31 | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Interest incurred on debt | $ | 121,010 | $ | 100,844 | $ | 24,060 | |||||
Related Party Promissory Note interest expense | — | 5,090 | — | ||||||||
Senior Note redemption premium | — | 4,782 | — | ||||||||
Accretion of fair value adjustment on Senior Notes | — | 19,414 | 6,454 | ||||||||
Accretion of original issue discount on 2018 Term Loans | 2,196 | 1,455 | — | ||||||||
Amortization of debt issuance costs | 4,125 | 3,476 | 309 | ||||||||
Total interest expense | $ | 127,331 | $ | 135,061 | $ | 30,823 |
Postretirement Benefit Costs | Predecessor | Successor | |||
2014 | 2015 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 5.29 | % | 4.91 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.39 | % | 6.55 | % | |
Ultimate | 6.18 | % | 6.18 | % | |
Years to ultimate | 2 | 0 |
• | Level 1 – based upon quoted prices foridentical instruments in active markets, |
• | Level 2 – based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations of all of whose significant inputs are observable, and |
One Percentage Point Increase | One Percentage Point Decrease | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Effect on total service cost and interest cost components | $ | 3 | $ | 27 | $ | (3 | ) | $ | (33 | ) | |||||
Effect on benefit obligations | $ | 121 | $ | 797 | $ | (115 | ) | $ | (687 | ) |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 1,298 | $ | 755 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2016 | 1,298 | 755 | |||||
2017 | 1,233 | 762 | |||||
2018 | 1,152 | 772 | |||||
2019 | 1,061 | 782 | |||||
2020 | 962 | 796 | |||||
2020-2024 | 3,454 | 4,231 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2019 | (Dollars in thousands) | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Commodity derivative contracts | Prepaid and other current assets | $ | 104 | Other accrued liabilities | $ | 1,872 | |||||
Other long-term assets | 369 | Other long-term obligations | 2,255 | ||||||||
Interest rate swap contracts | Prepaid and other current assets | 253 | Other accrued liabilities | — | |||||||
Other long-term assets | 2,684 | Other long-term obligations | 72 | ||||||||
Total fair value | $ | 3,410 | $ | 4,199 | |||||||
As of December 31, 2018 | |||||||||||
Commodity derivative contracts | Prepaid and other current assets | $ | 90 | Other accrued liabilities | $ | 4,630 | |||||
Other long-term assets | 260 | Other long-term obligations | 6,393 | ||||||||
Total fair value | $ | 350 | $ | 11,023 | |||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2019 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 239 | Other current liabilities | $ | 81 | |||||
Commodity derivative contracts | Prepaid and other current assets | 376 | Other accrued liabilities | — | |||||||
Total fair value | $ | 615 | $ | 81 | |||||||
As of December 31, 2018 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | — | Other current liabilities | $ | 43 |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations | 2019 | 2018 | 2017 | |||||||||||
Derivatives designated as cash flow hedges: | (Dollars in thousands) | |||||||||||||
Commodity derivative contracts | Cost of sales | $ | (8,892 | ) | $ | (919 | ) | $ | — | |||||
Interest rate swaps | Interest expense | (1,050 | ) | — | — |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations | 2019 | 2018 | 2017 | |||||||||||
Derivatives not designated as hedges: | (Dollars in thousands) | |||||||||||||
Foreign currency derivatives | Cost of sales, Other expense/(income) | $ | (506 | ) | $ | (522 | ) | $ | (1,565 | ) | ||||
Commodity derivative contracts | Cost of sales | (223 | ) | — | — |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 104,820 | $ | 99,935 | |||
Work in process | 137,230 | 125,767 | |||||
Finished goods | 71,598 | 68,015 | |||||
$ | 313,648 | $ | 293,717 | ||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,986 | $ | 10,720 | |||
Value added tax and other indirect taxes receivable | 13,890 | 19,242 | |||||
Spare parts inventory | 12,738 | 11,507 | |||||
Other current assets | 4,332 | 4,699 | |||||
$ | 40,946 | $ | 46,168 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 46,548 | $ | 45,947 | |||
Buildings | 71,784 | 68,680 | |||||
Machinery and equipment and other | 567,715 | 532,084 | |||||
Construction in progress | 47,370 | 42,131 | |||||
$ | 733,417 | $ | 688,842 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 11,801 | $ | 17,284 | |||
Employee benefits | 7,416 | 6,977 | |||||
Deferred Revenue | 11,776 | 5,380 | |||||
Other | 17,342 | 20,811 | |||||
$ | 48,335 | $ | 50,452 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 16,528 | $ | 16,192 | |||
Pension and related benefits | 37,431 | 33,718 | |||||
Other | 18,603 | 22,609 | |||||
$ | 72,562 | $ | 72,519 |
2019 | 2018 | 2017 | |||||||||
Balance at beginning of year | $ | 1,129 | $ | 1,097 | $ | 326 | |||||
Additions | 4,636 | 122 | 771 | ||||||||
Deductions | (291 | ) | (90 | ) | — | ||||||
Balance at end of year | $ | 5,474 | $ | 1,129 | $ | 1,097 |
(10) | Leases |
For Year Ended December 31, 2019 | ||||
(Dollars in thousands) | ||||
Operating lease cost | 4,816 | |||
Short-term lease cost | 14 | |||
Variable lease cost | 227 | |||
Total lease cost | $ | 5,057 |
For Year Ended December 31, 2019 | |||
(Dollars in thousands) | |||
RoU assets obtained in exchange for new operating lease liabilities (non-cash) | 4,995 | ||
Operating (use of cash) from operating leases | (4,724 | ) |
As of December 31, 2019 | ||||
(Dollars in thousands) | ||||
Operating RoU Assets* | $ | 7,994 | ||
*Amount included in Other assets | ||||
Current operating lease liabilities | 4,475 | |||
Non-current operating lease liabilities | 3,598 | |||
Total operating lease liabilities** | $ | 8,073 | ||
**Amounts included in Other accrued liabilities and Other long-term obligations | ||||
Weighted average remaining lease term (in years) | 2.3 | |||
Weighted average discount rate - operating leases | 5.61 | % |
(Dollars in thousands) | ||||
2020 | 4,496 | |||
2021 | 2,693 | |||
2022 | 702 | |||
2023 | 358 | |||
2024 and thereafter | 379 | |||
Total lease payments | $ | 8,628 | ||
Less: Imputed interest | (555 | ) | ||
Present value of lease payments | 8,073 | |||
Less: Current operating lease liability | (4,475 | ) | ||
Non-current operating lease liability | $ | 3,598 |
(Dollars in thousands) | |||
2019 | $ | 4,474 | |
2020 | 2,747 | ||
2021 | 1,497 | ||
2022 | 334 | ||
2023 | 269 | ||
2024 and thereafter | 343 |
(11) | Retirement Plans and Postretirement Benefits |
For the Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 1,297 | $ | 624 | $ | 1,315 | $ | 674 | $ | 1,305 | $ | 710 | |||||||||||
Interest cost | 5,070 | 275 | 4,709 | 253 | 5,352 | 199 | |||||||||||||||||
Expected return on assets | (5,026 | ) | (424 | ) | (5,679 | ) | (330 | ) | (5,268 | ) | (299 | ) | |||||||||||
Mark-to-market loss (gain) | 205 | 3,302 | 2,473 | 503 | (4,140 | ) | (53 | ) | |||||||||||||||
Pension costs | $ | 1,546 | $ | 3,777 | $ | 2,818 | $ | 1,100 | $ | (2,751 | ) | $ | 557 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 126,985 | $ | 22,332 | $ | 139,746 | $ | 20,407 | |||||||
Service cost | 1,297 | 624 | 1,315 | 674 | |||||||||||
Interest cost | 5,070 | 275 | 4,709 | 253 | |||||||||||
Participant contributions | — | 417 | — | 392 | |||||||||||
Foreign currency exchange changes | — | 379 | — | (339 | ) | ||||||||||
Actuarial (gain) loss | 12,868 | 3,319 | (8,297 | ) | 711 | ||||||||||
Benefits paid | (10,410 | ) | 1,557 | (10,488 | ) | 234 | |||||||||
Net benefit obligation at end of period | $ | 135,810 | $ | 28,903 | $ | 126,985 | $ | 22,332 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | 99,845 | $ | 15,354 | $ | 109,845 | $ | 13,618 | |||||||
Actual return on plan assets | 17,689 | 441 | (5,091 | ) | 538 | ||||||||||
Foreign currency exchange rate changes | — | 377 | — | (154 | ) | ||||||||||
Employer contributions | 708 | 834 | 5,579 | 726 | |||||||||||
Participant contributions | — | 417 | — | 392 | |||||||||||
Benefits paid | (10,410 | ) | 1,557 | (10,488 | ) | 234 | |||||||||
Fair value of plan assets at end of period | $ | 107,832 | $ | 18,980 | $ | 99,845 | $ | 15,354 | |||||||
Funded status (underfunded): | $ | (27,978 | ) | $ | (9,923 | ) | $ | (27,140 | ) | $ | (6,978 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | 37 | $ | — | $ | 147 | |||||||
Current liabilities | (427 | ) | (43 | ) | (430 | ) | (117 | ) | |||||||
Non-current liabilities | (27,551 | ) | (9,917 | ) | (26,710 | ) | (7,008 | ) | |||||||
Net amount recognized | $ | (27,978 | ) | $ | (9,923 | ) | $ | (27,140 | ) | $ | (6,978 | ) |
Number of Shares | Weighted- Average Grant Date Fair Value | ||||||
Outstanding unvested as of December 31, 2018 | 27,570 | $ | 12.88 | ||||
Granted | 292,469 | 12.72 | |||||
Cancelled | (6,084 | ) | 13.36 | ||||
Vested | (31,239 | ) | 12.30 | ||||
Outstanding unvested as of December 31, 2019 | 282,716 | $ | 12.83 |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Outstanding unvested at December 31, 2014 | 1,814,130 | $ | 6.31 | |||
Granted | 412,191 | 9.67 | ||||
Vested | (2,037,914 | ) | 6.98 | |||
Forfeited/canceled/expired | (188,407 | ) | 6.42 | |||
Outstanding at December 31, 2015 | — | $ | — |
For the Year Ended December 31,2019 | For the Year Ended December 31,2018 | ||||
Dividend yield | 2.39% - 3.05% | 1.70% - 2.27% | |||
Expected volatility | 50 | % | 45 | % | |
Risk-free interest rate | 1.79% - 2.63% | 2.84% - 2.98% | |||
Expected term in years | 6.5 years | 6.5 years |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life in Years | Weighted Average Exercise Prices | Number Exercisable | Weighted Average Exercise Prices | |||||||||||
$11.14 | - | $20.00 | 1,113,480 | 8.5 | $15.17 | 181,822 | $ | 15.73 |
Number of Shares | Weighted- Average Exercise Price | ||||||
Outstanding unvested as of December 31, 2018 | 968,720 | $ | 15.68 | ||||
Granted | 229,250 | 12.90 | |||||
Vested | (188,810 | ) | 15.70 | ||||
Forfeited | (77,502 | ) | 14.87 | ||||
Outstanding unvested as of December 31, 2019 | 931,658 | $ | 15.06 |
Number of Shares | Weighted- Average Exercise Price | |||||
Outstanding at December 31, 2014 | 2,042,074 | $ | 10.93 | |||
Granted | — | — | ||||
Forfeited/canceled/expired | (1,562,791 | ) | 12.98 | |||
Exercised | (479,283 | ) | 4.24 | |||
Outstanding at December 31, 2015 | — | $ | — |
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales: | |||||||||||
United States | $ | 403,916 | $ | 429,599 | $ | 103,890 | |||||
Americas (excluding the United States) | 348,670 | 367,561 | 129,103 | ||||||||
Asia Pacific | 172,439 | 131,578 | 46,329 | ||||||||
Europe, Middle East, Africa | 865,768 | 967,172 | 271,449 | ||||||||
Total | $ | 1,790,793 | $ | 1,895,910 | $ | 550,771 |
At December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
United States | $ | 174,307 | $ | 169,301 | |||
Mexico | 141,621 | 146,790 | |||||
Brazil | 5,694 | 3,320 | |||||
France | 88,514 | 91,022 | |||||
Spain | 102,577 | 103,121 | |||||
Other countries | 307 | 151 | |||||
Total | $ | 513,020 | $ | 513,705 |
Long-lived assets represent fixed assets, net of accumulated depreciation. |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
2018 Credit Facility (2018 Term Loan and 2018 Revolving Facility) | $ | 1,812,204 | $ | 2,155,883 | |||
Other Debt | 619 | 751 | |||||
Total Debt | 1,812,823 | 2,156,634 | |||||
Less: Short-term Debt | (141 | ) | (106,323 | ) | |||
Long-term Debt | $ | 1,812,682 | $ | 2,050,311 |
Total | |||
(Dollars in Thousands) | |||
Balance as of December 31, 2017 | $ | 171,117 | |
Adjustments | — | ||
Balance as of December 31, 2018 | 171,117 | ||
Adjustments | — | ||
Balance as of December 31, 2019 | $ | 171,117 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||
Trade name | $ | 22,500 | $ | (9,861 | ) | $ | 12,639 | $ | 22,500 | $ | (7,721 | ) | $ | 14,779 | |||||||||
Technology and know-how | 55,300 | (29,112 | ) | 26,188 | 55,300 | (23,503 | ) | 31,797 | |||||||||||||||
Customer related intangible | 64,500 | (19,473 | ) | 45,027 | 64,500 | (15,070 | ) | 49,430 | |||||||||||||||
Total finite-lived intangible assets | $ | 142,300 | $ | (58,446 | ) | $ | 83,854 | $ | 142,300 | $ | (46,294 | ) | $ | 96,006 |
For the Year Ended December 31 | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Interest incurred on debt | $ | 121,010 | $ | 100,844 | $ | 24,060 | |||||
Related Party Promissory Note interest expense | — | 5,090 | — | ||||||||
Senior Note redemption premium | — | 4,782 | — | ||||||||
Accretion of fair value adjustment on Senior Notes | — | 19,414 | 6,454 | ||||||||
Accretion of original issue discount on 2018 Term Loans | 2,196 | 1,455 | — | ||||||||
Amortization of debt issuance costs | 4,125 | 3,476 | 309 | ||||||||
Total interest expense | $ | 127,331 | $ | 135,061 | $ | 30,823 |
• | Level 1 – based upon quoted prices for identical instruments in active markets, |
• | Level 2 – based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations of all of whose significant inputs are observable, and |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2019 | (Dollars in thousands) | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Commodity derivative contracts | Prepaid and other current assets | $ | 104 | Other accrued liabilities | $ | 1,872 | |||||
Other long-term assets | 369 | Other long-term obligations | 2,255 | ||||||||
Interest rate swap contracts | Prepaid and other current assets | 253 | Other accrued liabilities | — | |||||||
Other long-term assets | 2,684 | Other long-term obligations | 72 | ||||||||
Total fair value | $ | 3,410 | $ | 4,199 | |||||||
As of December 31, 2018 | |||||||||||
Commodity derivative contracts | Prepaid and other current assets | $ | 90 | Other accrued liabilities | $ | 4,630 | |||||
Other long-term assets | 260 | Other long-term obligations | 6,393 | ||||||||
Total fair value | $ | 350 | $ | 11,023 | |||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2019 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 239 | Other current liabilities | $ | 81 | |||||
Commodity derivative contracts | Prepaid and other current assets | 376 | Other accrued liabilities | — | |||||||
Total fair value | $ | 615 | $ | 81 | |||||||
As of December 31, 2018 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | — | Other current liabilities | $ | 43 |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations | 2019 | 2018 | 2017 | |||||||||||
Derivatives designated as cash flow hedges: | (Dollars in thousands) | |||||||||||||
Commodity derivative contracts | Cost of sales | $ | (8,892 | ) | $ | (919 | ) | $ | — | |||||
Interest rate swaps | Interest expense | (1,050 | ) | — | — |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations | 2019 | 2018 | 2017 | |||||||||||
Derivatives not designated as hedges: | (Dollars in thousands) | |||||||||||||
Foreign currency derivatives | Cost of sales, Other expense/(income) | $ | (506 | ) | $ | (522 | ) | $ | (1,565 | ) | ||||
Commodity derivative contracts | Cost of sales | (223 | ) | — | — |
(9) | Supplementary Balance Sheet Detail |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 104,820 | $ | 99,935 | |||
Work in process | 137,230 | 125,767 | |||||
Finished goods | 71,598 | 68,015 | |||||
$ | 313,648 | $ | 293,717 | ||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,986 | $ | 10,720 | |||
Value added tax and other indirect taxes receivable | 13,890 | 19,242 | |||||
Spare parts inventory | 12,738 | 11,507 | |||||
Other current assets | 4,332 | 4,699 | |||||
$ | 40,946 | $ | 46,168 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 46,548 | $ | 45,947 | |||
Buildings | 71,784 | 68,680 | |||||
Machinery and equipment and other | 567,715 | 532,084 | |||||
Construction in progress | 47,370 | 42,131 | |||||
$ | 733,417 | $ | 688,842 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 11,801 | $ | 17,284 | |||
Employee benefits | 7,416 | 6,977 | |||||
Deferred Revenue | 11,776 | 5,380 | |||||
Other | 17,342 | 20,811 | |||||
$ | 48,335 | $ | 50,452 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 16,528 | $ | 16,192 | |||
Pension and related benefits | 37,431 | 33,718 | |||||
Other | 18,603 | 22,609 | |||||
$ | 72,562 | $ | 72,519 |
2019 | 2018 | 2017 | |||||||||
Balance at beginning of year | $ | 1,129 | $ | 1,097 | $ | 326 | |||||
Additions | 4,636 | 122 | 771 | ||||||||
Deductions | (291 | ) | (90 | ) | — | ||||||
Balance at end of year | $ | 5,474 | $ | 1,129 | $ | 1,097 |
(10) | Leases |
For Year Ended December 31, 2019 | ||||
(Dollars in thousands) | ||||
Operating lease cost | 4,816 | |||
Short-term lease cost | 14 | |||
Variable lease cost | 227 | |||
Total lease cost | $ | 5,057 |
For Year Ended December 31, 2019 | |||
(Dollars in thousands) | |||
RoU assets obtained in exchange for new operating lease liabilities (non-cash) | 4,995 | ||
Operating (use of cash) from operating leases | (4,724 | ) |
As of December 31, 2019 | ||||
(Dollars in thousands) | ||||
Operating RoU Assets* | $ | 7,994 | ||
*Amount included in Other assets | ||||
Current operating lease liabilities | 4,475 | |||
Non-current operating lease liabilities | 3,598 | |||
Total operating lease liabilities** | $ | 8,073 | ||
**Amounts included in Other accrued liabilities and Other long-term obligations | ||||
Weighted average remaining lease term (in years) | 2.3 | |||
Weighted average discount rate - operating leases | 5.61 | % |
(Dollars in thousands) | ||||
2020 | 4,496 | |||
2021 | 2,693 | |||
2022 | 702 | |||
2023 | 358 | |||
2024 and thereafter | 379 | |||
Total lease payments | $ | 8,628 | ||
Less: Imputed interest | (555 | ) | ||
Present value of lease payments | 8,073 | |||
Less: Current operating lease liability | (4,475 | ) | ||
Non-current operating lease liability | $ | 3,598 |
(Dollars in thousands) | |||
2019 | $ | 4,474 | |
2020 | 2,747 | ||
2021 | 1,497 | ||
2022 | 334 | ||
2023 | 269 | ||
2024 and thereafter | 343 |
(11) | Retirement Plans and Postretirement Benefits |
For the Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 1,297 | $ | 624 | $ | 1,315 | $ | 674 | $ | 1,305 | $ | 710 | |||||||||||
Interest cost | 5,070 | 275 | 4,709 | 253 | 5,352 | 199 | |||||||||||||||||
Expected return on assets | (5,026 | ) | (424 | ) | (5,679 | ) | (330 | ) | (5,268 | ) | (299 | ) | |||||||||||
Mark-to-market loss (gain) | 205 | 3,302 | 2,473 | 503 | (4,140 | ) | (53 | ) | |||||||||||||||
Pension costs | $ | 1,546 | $ | 3,777 | $ | 2,818 | $ | 1,100 | $ | (2,751 | ) | $ | 557 |
As of December 31, 2019 | As of December 31, 2018 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 126,985 | $ | 22,332 | $ | 139,746 | $ | 20,407 | |||||||
Service cost | 1,297 | 624 | 1,315 | 674 | |||||||||||
Interest cost | 5,070 | 275 | 4,709 | 253 | |||||||||||
Participant contributions | — | 417 | — | 392 | |||||||||||
Foreign currency exchange changes | — | 379 | — | (339 | ) | ||||||||||
Actuarial (gain) loss | 12,868 | 3,319 | (8,297 | ) | 711 | ||||||||||
Benefits paid | (10,410 | ) | 1,557 | (10,488 | ) | 234 | |||||||||
Net benefit obligation at end of period | $ | 135,810 | $ | 28,903 | $ | 126,985 | $ | 22,332 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | 99,845 | $ | 15,354 | $ | 109,845 | $ | 13,618 | |||||||
Actual return on plan assets | 17,689 | 441 | (5,091 | ) | 538 | ||||||||||
Foreign currency exchange rate changes | — | 377 | — | (154 | ) | ||||||||||
Employer contributions | 708 | 834 | 5,579 | 726 | |||||||||||
Participant contributions | — | 417 | — | 392 | |||||||||||
Benefits paid | (10,410 | ) | 1,557 | (10,488 | ) | 234 | |||||||||
Fair value of plan assets at end of period | $ | 107,832 | $ | 18,980 | $ | 99,845 | $ | 15,354 | |||||||
Funded status (underfunded): | $ | (27,978 | ) | $ | (9,923 | ) | $ | (27,140 | ) | $ | (6,978 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | 37 | $ | — | $ | 147 | |||||||
Current liabilities | (427 | ) | (43 | ) | (430 | ) | (117 | ) | |||||||
Non-current liabilities | (27,551 | ) | (9,917 | ) | (26,710 | ) | (7,008 | ) | |||||||
Net amount recognized | $ | (27,978 | ) | $ | (9,923 | ) | $ | (27,140 | ) | $ | (6,978 | ) |
As of December 31, 2019 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
U.S. Plan Assets | |||||||||||||||
Cash and cash equivalents | $ | 1,524 | $ | — | $ | — | $ | 1,524 | |||||||
International Plan Assets | |||||||||||||||
Foreign government bonds | $ | — | $ | 995 | $ | — | $ | 995 | |||||||
Fixed insurance contracts | — | — | 17,985 | 17,985 | |||||||||||
Total assets in the fair value hierarchy | $ | — | $ | 995 | $ | 17,985 | $ | 18,980 | |||||||
Investments measured at net asset value | $ | 106,308 | |||||||||||||
Total | $ | 1,524 | $ | 995 | $ | 17,985 | $ | 126,812 | |||||||
As of December 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
U.S. Plan Assets | |||||||||||||||
Cash and cash equivalents | $ | 1,978 | $ | — | $ | — | $ | 1,978 | |||||||
International Plan Assets | |||||||||||||||
Foreign government bonds | $ | — | $ | 958 | $ | — | $ | 958 | |||||||
Fixed insurance contracts | — | — | 14,396 | 14,396 | |||||||||||
Total assets in the fair value hierarchy | $ | — | $ | 958 | $ | 14,396 | $ | 15,354 | |||||||
Investments measured at net asset value | $ | 97,867 | |||||||||||||
Total | $ | 1,978 | $ | 958 | $ | 14,396 | $ | 115,199 | |||||||
Fixed Insurance Contracts | |||
Balance at December 31, 2017 | $ | 12,787 | |
Gain / contributions / currency impact | 1,619 | ||
Distributions | (10 | ) | |
Balance at December 31, 2018 | 14,396 | ||
Gain / contributions / currency impact | 3,603 | ||
Distributions | (14 | ) | |
Balance at December 31, 2019 | $ | 17,985 |
Pension Benefit Obligations Key Assumptions | As of December 31, | ||||
2019 | 2018 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 2.59 | % | 3.71 | % | |
Rate of compensation increase | 1.50 | % | 1.74 | % |
Pension Cost Key Assumptions | |||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 3.71 | % | 3.20 | % | |
Expected return on plan assets | 4.92 | % | 4.94 | % | |
Rate of compensation increase | 1.74 | % | 1.57 | % |
Percentage of Plan Assets as of December 31, 2019 | |||||
US | Foreign | ||||
Equity securities and return seeking assets | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
2019 | 2018 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 135,810 | $ | 26,829 | $ | 126,985 | $ | 20,601 | |||||||
Fair value of plan assets | 107,832 | 17,985 | 99,845 | 14,396 |
2019 | 2018 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 135,810 | $ | 27,944 | $ | 126,985 | $ | 21,520 | |||||||
Fair value of plan assets | 107,832 | 17,985 | 99,845 | 14,396 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2020: | |||||||
Expected employer contributions | $ | 4,419 | $ | 737 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2020 | 9,271 | 884 | |||||
2021 | 9,240 | 870 | |||||
2022 | 9,195 | 905 | |||||
2023 | 9,145 | 1,038 | |||||
2024 | 9,012 | 2,340 | |||||
2025-2029 | 43,077 | 9,168 |
For the Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 2 | |||||||||||
Interest cost | 269 | 684 | 264 | 700 | 333 | 653 | |||||||||||||||||
Mark-to-market loss (gain) | 585 | 100 | (1,028 | ) | 47 | (1,257 | ) | 742 | |||||||||||||||
Post-employment benefits (benefit) cost | $ | 854 | $ | 784 | $ | (764 | ) | $ | 748 | $ | (924 | ) | $ | 1,397 |
Postretirement Benefits | As of December 31, 2019 | As of December 31, 2018 | |||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 7,165 | $ | 10,661 | $ | 8,461 | $ | 12,172 | |||||||
Service cost | — | — | — | 1 | |||||||||||
Interest cost | 269 | 684 | 264 | 700 | |||||||||||
Foreign currency exchange rates | 340 | — | (1,333 | ) | |||||||||||
Actuarial (gain) loss | 585 | 100 | (1,028 | ) | 47 | ||||||||||
Gross benefits paid | (829 | ) | (831 | ) | (532 | ) | (926 | ) | |||||||
Plan amendment | — | — | — | — | |||||||||||
Net benefit obligation at end of period | $ | 7,190 | $ | 10,954 | $ | 7,165 | $ | 10,661 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 829 | 831 | 532 | 926 | |||||||||||
Gross benefits paid | (829 | ) | (831 | ) | (532 | ) | (926 | ) | |||||||
Fair value of plan assets at end of period | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (7,190 | ) | $ | (10,954 | ) | $ | (7,165 | ) | $ | (10,661 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (723 | ) | $ | (893 | ) | $ | (783 | ) | $ | (851 | ) | |||
Non-current liabilities | (6,467 | ) | (10,061 | ) | (6,382 | ) | (9,810 | ) | |||||||
Net amount recognized | $ | (7,190 | ) | $ | (10,954 | ) | $ | (7,165 | ) | $ | (10,661 | ) |
Postretirement Benefit Obligations | |||||
2019 | 2018 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 4.65 | % | 5.57 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.14 | % | 6.53 | % | |
Ultimate | 5.84 | % | 6.05 | % | |
Years to ultimate | 6 | 8 |
Postretirement Benefit Costs | |||||
2019 | 2018 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 5.57 | % | 5.07 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.53 | % | 6.86 | % | |
Ultimate | 6.05 | % | 6.23 | % | |
Years to ultimate | 7 | 7 |
One Percentage Point Increase | One Percentage Point Decrease | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Effect on total service cost and interest cost components | $ | — | $ | 49 | $ | — | $ | (42 | ) | ||||||
Effect on benefit obligations | $ | 21 | $ | 465 | $ | (20 | ) | $ | (409 | ) |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2020: | |||||||
Expected employer contributions | $ | 723 | $ | 893 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2020 | 723 | 893 | |||||
2021 | 657 | 908 | |||||
2022 | 596 | 904 | |||||
2023 | 540 | 910 | |||||
2024 | 492 | 924 | |||||
2025-2029 | 1,984 | 4,689 |
(12) | Contingencies |
(Dollars in Thousands) | |||
Balance as of December 31, 2017 | $ | 349 | |
Product warranty charges/adjustments | 1,510 | ||
Payments and settlements | (331 | ) | |
Balance as of December 31, 2018 | $ | 1,528 | |
Product warranty charges/adjustments | 1,033 | ||
Payments and settlements | (726 | ) | |
Balance as of December 31, 2019 | $ | 1,835 |
(Dollars in Thousands) | |||
Balance as of December 31, 2014 | $ | 923 | |
Product warranty charges/adjustments | 576 | ||
Payments and settlements | (557 | ) | |
Balance as of December 31, 2015 | $ | 942 |
Income Taxes |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
U.S. | $ | 85,365 | $ | (68,032 | ) | $ | (26,981 | ) | |||
Non-U.S. | 757,462 | 970,840 | 30,412 | ||||||||
$ | 842,827 | $ | 902,808 | $ | 3,431 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. | $ | 8,495 | $ | (255,043 | ) | $ | (96,258 | ) | $ | (22,755 | ) | ||||
Non-U.S. | (48,597 | ) | (39,749 | ) | (20,305 | ) | (3,916 | ) | |||||||
$ | (40,102 | ) | $ | (294,792 | ) | $ | (116,563 | ) | $ | (26,671 | ) |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
U.S income taxes: | |||||||||||
Current | $ | 16,589 | $ | 787 | $ | (1,066 | ) | ||||
Deferred | 5,690 | (52,145 | ) | 38 | |||||||
22,279 | (51,358 | ) | (1,028 | ) | |||||||
Non-U.S. income taxes: | |||||||||||
Current | 64,134 | 85,252 | 5,924 | ||||||||
Deferred | 11,812 | 15,026 | (15,677 | ) | |||||||
75,946 | 100,278 | (9,753 | ) | ||||||||
Total income tax expense (benefit) | $ | 98,225 | $ | 48,920 | $ | (10,781 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S income taxes: | |||||||||||||||
Current | $ | 4,104 | $ | (1,762 | ) | $ | (20 | ) | $ | (52 | ) | ||||
Deferred | (5,652 | ) | (537 | ) | 403 | 686 | |||||||||
(1,548 | ) | (2,299 | ) | 383 | 634 | ||||||||||
Non-U.S. income taxes: | |||||||||||||||
Current | 5,422 | 8,349 | 3,182 | 1,565 | |||||||||||
Deferred | (16,717 | ) | (15,466 | ) | 521 | 4,681 | |||||||||
(11,295 | ) | (7,117 | ) | 3,703 | 6,246 | ||||||||||
Total income tax expense (benefit) | $ | (12,843 | ) | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Tax at statutory U.S. federal rate | $ | 176,994 | $ | 189,590 | $ | 1,201 | |||||
Impact of U.S. Tax Act - GILTI | 65,531 | 93,739 | — | ||||||||
Impact of the 2017 Tax Act - transition tax | — | — | 39,628 | ||||||||
Impact of the 2017 Tax Act - tax rate change | — | — | 52,228 | ||||||||
Impact of Tax Receivable Agreement | 713 | 18,160 | — | ||||||||
Valuation allowance | (14,548 | ) | (93,125 | ) | (89,269 | ) | |||||
State taxes, net of federal tax benefit | 4,231 | 1,529 | 3,437 | ||||||||
U.S. tax impact of foreign earnings (net of foreign tax credits) | 2,181 | 792 | 1,151 | ||||||||
Establishment/resolution of uncertain tax positions | (1,293 | ) | (345 | ) | (840 | ) | |||||
Adjustment for foreign income taxed at different rates | (76,922 | ) | (95,822 | ) | (2,359 | ) | |||||
Foreign tax credits | (56,171 | ) | (65,046 | ) | (17,956 | ) | |||||
Other | (2,491 | ) | (552 | ) | 1,998 | ||||||
Provision (benefit) for income taxes | $ | 98,225 | $ | 48,920 | $ | (10,781 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Tax at statutory U.S. federal rate | $ | (14,036 | ) | $ | (103,177 | ) | $ | (40,797 | ) | $ | (9,335 | ) | |||
U.S. valuation allowance, net | (700 | ) | 73,350 | 27,443 | 8,876 | ||||||||||
State taxes, net of federal tax benefit | (371 | ) | (4,387 | ) | (3,215 | ) | (697 | ) | |||||||
U.S. tax return adjustments to estimated taxes | (1,032 | ) | (368 | ) | — | — | |||||||||
Resolution of uncertain tax positions | (752 | ) | (513 | ) | 71 | 64 | |||||||||
Adjustment for foreign income taxed at different rates | 6,832 | 7,376 | 11,435 | 7,324 | |||||||||||
U.S. tax credits | (2,577 | ) | (1,000 | ) | — | — | |||||||||
Non-U.S. tax exemptions, holidays and credits | — | — | (691 | ) | 228 | ||||||||||
Goodwill impairment | — | 17,161 | 8,026 | — | |||||||||||
Capital loss expiration | — | 2,422 | — | — | |||||||||||
Other | (207 | ) | (280 | ) | 1,814 | 420 | |||||||||
Total income tax (benefit) expense | $ | (12,843 | ) | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Postretirement and other employee benefits | $ | 18,256 | $ | 18,395 | |||
Foreign tax credit and other carryforwards | 55,103 | 111,325 | |||||
Capitalized research and experimental costs | 5,566 | 7,695 | |||||
Environmental reserves | 1,110 | 976 | |||||
Inventory adjustments | 14,863 | 14,251 | |||||
Long-term contract option amortization | 1,080 | 1,144 | |||||
Provision for rationalization charges | 232 | 351 | |||||
Other | 1,872 | 4,270 | |||||
Total gross deferred tax assets | 98,082 | 158,407 | |||||
Less: valuation allowance | (13,736 | ) | (58,446 | ) | |||
Total deferred tax assets | 84,346 | 99,961 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 56,659 | $ | 59,521 | |||
Inventory | 12,778 | 7,751 | |||||
Goodwill and acquired intangibles | 6,996 | 3,668 | |||||
Other | 2,468 | 3,138 | |||||
Total deferred tax liabilities | 78,901 | 74,078 | |||||
Net deferred tax asset | $ | 5,445 | $ | 25,883 |
As of December 31, | |||||||
2014 Predecessor | 2015 Successor | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Postretirement and other employee benefits | $ | 43,204 | $ | 34,713 | |||
Foreign tax credit and other carryforwards | 64,214 | 115,163 | |||||
Capitalized research and experimental costs | 23,446 | 21,592 | |||||
Environmental reserves | 3,366 | 4,273 | |||||
Inventory adjustments | 19,568 | 12,719 | |||||
Capital loss | 272 | 276 | |||||
Long-term contract option amortization | 2,214 | 2,138 | |||||
Provision for rationalization charges | 17,255 | 5,967 | |||||
Other | 6,288 | 729 | |||||
Total gross deferred tax assets | 179,827 | 197,570 | |||||
Less: valuation allowance | (95,721 | ) | (165,539 | ) | |||
Total deferred tax assets | 84,106 | 32,031 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 59,292 | $ | 54,150 | |||
Debt discount amortization / Deferred financing fees | 3,301 | 7,666 | |||||
Inventory | 6,865 | 4,985 | |||||
Goodwill and acquired intangibles | 1,046 | 2,686 | |||||
Other | 3,761 | 4,647 | |||||
Total deferred tax liabilities | 74,265 | 74,134 | |||||
Net deferred tax (liability) asset | $ | 9,841 | $ | (42,103 | ) |
(Dollars in thousands) | |||
Balance as of December 31, 2017 | $ | 150,839 | |
Credited to income | (93,125 | ) | |
Translation adjustment | (302 | ) | |
Changes attributable to movement in underlying assets | 1,034 | ||
Balance as of December 31, 2018 | $ | 58,446 | |
Credited to income | (14,548 | ) | |
Changes attributable to write-off of underlying assets | (30,138 | ) | |
Translation adjustment | (24 | ) | |
Balance as of December 31, 2019 | $ | 13,736 |
For the year ended December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Balance as of January 1 | $ | 26,312 | $ | 20,411 | |||
(Credited) / charged to income | (614 | ) | 74,157 | ||||
Translation adjustment | (746 | ) | (800 | ) | |||
Changes attributable to movement in underlying assets | (4,541 | ) | 1,953 | ||||
Balance as of December 31 | $ | 20,411 | $ | 95,721 |
Predecessor | (Dollars in thousands) | ||
Balance at January 1, 2015 | $ | 95,721 | |
(Credited) / charged to income | 29,363 | ||
Translation adjustment | (1,467 | ) | |
Changes attributable to movement in underlying assets | (8,168 | ) | |
Balance as of August 14, 2015 | $ | 115,449 | |
Successor | |||
(Credited) / charged to income | 6,780 | ||
Translation adjustment | (101 | ) | |
Changes attributable to movement in underlying assets | 43,411 | ||
Balance as of December 31, 2015 | $ | 165,539 |
(Dollars in thousands) | |||
Balance as of December 31, 2017 | $ | 2,492 | |
Reductions for tax positions of prior years | (100 | ) | |
Lapse of statutes of limitations | (373 | ) | |
Foreign currency impact | (21 | ) | |
Settlements | (8 | ) | |
Balance as of December 31, 2018 | $ | 1,990 | |
Settlements | (1,383 | ) | |
Reductions for tax positions of prior years | (421 | ) | |
Foreign currency impact | (2 | ) | |
Balance as of December 31, 2019 | $ | 184 |
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Balance at January 1 | $ | 9,769 | $ | 7,203 | |||
Additions based on tax positions related to the current year | 881 | 268 | |||||
Additions for tax positions of prior years | 323 | 232 | |||||
Reductions for tax positions of prior years | (2,779 | ) | (1,204 | ) | |||
Lapse of statutes of limitations | — | (1,180 | ) | ||||
Settlements | (988 | ) | (1,503 | ) | |||
Foreign currency impact | (3 | ) | (106 | ) | |||
Balance at December 31 | $ | 7,203 | $ | 3,710 |
Predecessor | (Dollars in thousands) | ||
Balance at January 1, 2015 | $ | 3,710 | |
Foreign currency impact | (21 | ) | |
Balance as of August 14, 2015 | $ | 3,689 | |
Successor | |||
Additions for tax positions of prior years | 301 | ||
Foreign currency impact | (69 | ) | |
Balance as of December 31, 2015 | $ | 3,921 |
(14) | Stockholders' Equity |
As of December 31, 2019 | As of December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Foreign currency translation adjustments, net of tax | $ | (9,293 | ) | $ | (2,922 | ) | |
Commodities, foreign currency and interest rate derivatives, net of tax | 1,932 | (2,878 | ) | ||||
Total accumulated comprehensive (loss) income | $ | (7,361 | ) | $ | (5,800 | ) |
(15) | Earnings |
For the Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Weighted average common shares outstanding for basic calculation | 289,057,356 | 297,748,327 | 302,225,923 | |||||
Add: Effect of equity awards | 17,245 | 5,443 | — | |||||
Weighted average common shares outstanding for diluted calculation | 289,074,601 | 297,753,770 | 302,225,923 |
As of December 31, | For the Period July 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||
2013 | 2014 | |||||||||
(Dollars in thousands) | ||||||||||
Weighted average common shares outstanding for basic calculation | 135,067,278 | 136,155,295 | 137,152,430 | N/A | ||||||
Add: Effect of stock options and restricted stock | — | — | — | N/A | ||||||
Weighted average common shares outstanding for diluted calculation | 135,067,278 | 136,155,295 | 137,152,430 | N/A |
Predecessor | Successor | ||||||||||
For year ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Foreign currency translation adjustments | $ | 328,233 | $ | 356,169 | $ | 10,134 | |||||
Commodities and foreign currency derivatives and other, net of tax of ($63), ($68) and ($21) respectively | 8,291 | 7,029 | 123 | ||||||||
Total accumulated comprehensive loss | $ | 336,524 | $ | 363,198 | $ | 10,257 |
2019 | 2018 | |||||||||||||||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
As Reported: | ||||||||||||||||||||||||||||||||
Net Sales | $ | 474,994 | $ | 480,390 | $ | 420,797 | $ | 414,612 | $ | 451,899 | $ | 456,332 | $ | 454,890 | $ | 532,789 | ||||||||||||||||
Gross profit | 279,470 | 283,343 | 242,300 | 235,290 | 306,750 | 290,422 | 274,610 | 318,430 | ||||||||||||||||||||||||
Research and development | 637 | 713 | 611 | 723 | 429 | 581 | 518 | 601 | ||||||||||||||||||||||||
Selling and administrative expenses | 15,226 | 15,394 | 15,708 | 17,346 | 15,876 | 16,239 | 14,234 | 15,683 | ||||||||||||||||||||||||
Other expense (income), net | 467 | 863 | (688 | ) | 4,561 | 2,005 | (974 | ) | 1,502 | 828 | ||||||||||||||||||||||
Related party Tax Receivable Agreement Expense | — | — | — | 3,393 | — | 61,801 | — | 24,677 | ||||||||||||||||||||||||
Interest Expense | 33,700 | 32,969 | 31,803 | 28,859 | 37,865 | 28,667 | 33,855 | 34,674 | ||||||||||||||||||||||||
Interest Income | (414 | ) | (731 | ) | (1,765 | ) | (1,799 | ) | (115 | ) | (391 | ) | (562 | ) | (589 | ) | ||||||||||||||||
Net income | 197,436 | 196,368 | 175,876 | 174,922 | 223,673 | 201,448 | 199,466 | 229,632 | ||||||||||||||||||||||||
Net income per share | $ | 0.68 | $ | 0.68 | $ | 0.61 | $ | 0.61 | $ | 0.74 | $ | 0.67 | $ | 0.67 | $ | 0.79 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2014 (Predecessor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 5,503 | $ | 12,047 | $ | — | $ | 17,550 | ||||||||||
Accounts receivable - affiliates | 40,474 | 35,618 | 40,185 | (116,277 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 45,861 | 117,058 | — | 162,919 | |||||||||||||||
Inventories | — | 148,080 | 234,823 | — | 382,903 | |||||||||||||||
Prepaid and other current assets | — | 17,336 | 64,287 | — | 81,623 | |||||||||||||||
Total current assets | 40,474 | 252,398 | 468,400 | (116,277 | ) | 644,995 | ||||||||||||||
Investment in affiliates | 1,414,278 | 762,251 | — | (2,176,529 | ) | — | ||||||||||||||
Property, plant and equipment | — | 431,602 | 222,438 | — | 654,040 | |||||||||||||||
Deferred income taxes | — | — | 16,819 | — | 16,819 | |||||||||||||||
Goodwill | — | 217,099 | 203,030 | — | 420,129 | |||||||||||||||
Notes receivable - affiliate | 35,722 | 7,413 | — | (43,135 | ) | — | ||||||||||||||
Other assets | 4,110 | 45,617 | 48,095 | — | 97,822 | |||||||||||||||
Total Assets | $ | 1,494,584 | $ | 1,716,380 | $ | 958,782 | $ | (2,335,941 | ) | $ | 1,833,805 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | — | $ | 80,659 | $ | 35,618 | $ | (116,277 | ) | $ | — | |||||||||
Accounts payable - trade | 47 | 35,435 | 50,927 | — | 86,409 | |||||||||||||||
Short-term debt | 187,973 | 131 | — | — | 188,104 | |||||||||||||||
Accrued income and other taxes | 344 | 3,380 | 20,782 | — | 24,506 | |||||||||||||||
Rationalizations | — | 7,538 | 2,025 | — | 9,563 | |||||||||||||||
Other accrued liabilities | 2,444 | 15,252 | 25,623 | — | 43,319 | |||||||||||||||
Total current liabilities | 190,808 | 142,395 | 134,975 | (116,277 | ) | 351,901 | ||||||||||||||
Long-term debt - affiliate | — | 35,722 | 7,413 | (43,135 | ) | — | ||||||||||||||
Long-term debt - third party | 300,000 | 40,393 | 1,222 | — | 341,615 | |||||||||||||||
Other long-term obligations | — | 77,724 | 29,842 | — | 107,566 | |||||||||||||||
Deferred income taxes | — | 5,118 | 23,079 | — | 28,197 | |||||||||||||||
Stockholders' equity | 1,003,776 | 1,415,028 | 762,251 | (2,176,529 | ) | 1,004,526 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,494,584 | $ | 1,716,380 | $ | 958,782 | $ | (2,335,941 | ) | $ | 1,833,805 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2015 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 646 | $ | 6,281 | $ | — | $ | 6,927 | ||||||||||
Accounts receivable - affiliates | 51,592 | 9,362 | 20,823 | (81,777 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 20,749 | 82,066 | — | 102,815 | |||||||||||||||
Inventories | — | 123,340 | 172,122 | — | 295,462 | |||||||||||||||
Prepaid and other current assets | — | 8,109 | 13,565 | — | 21,674 | |||||||||||||||
Total current assets | 51,592 | 162,206 | 294,857 | (81,777 | ) | 426,878 | ||||||||||||||
Investment in affiliates | 1,068,028 | 668,113 | — | (1,736,141 | ) | — | ||||||||||||||
Property, plant and equipment | — | 291,494 | 346,039 | — | 637,533 | |||||||||||||||
Deferred income taxes | — | — | 15,327 | — | 15,327 | |||||||||||||||
Goodwill | — | 72,399 | 99,660 | — | 172,059 | |||||||||||||||
Notes receivable - affiliate | — | 46,074 | — | (46,074 | ) | — | ||||||||||||||
Other assets | — | 96,964 | 73,254 | — | 170,218 | |||||||||||||||
Total Assets | $ | 1,119,620 | $ | 1,337,250 | $ | 829,137 | $ | (1,863,992 | ) | $ | 1,422,015 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | 159 | $ | 72,418 | $ | 9,200 | $ | (81,777 | ) | $ | — | |||||||||
Accounts payable - trade | — | 18,546 | 30,932 | — | 49,478 | |||||||||||||||
Short-term debt | — | 4,636 | 136 | — | 4,772 | |||||||||||||||
Accrued income and other taxes | — | 5,864 | 3,175 | — | 9,039 | |||||||||||||||
Rationalizations | — | 995 | 2,053 | — | 3,048 | |||||||||||||||
Other accrued liabilities | 2,444 | 11,511 | 15,824 | — | 29,779 | |||||||||||||||
Total current liabilities | 2,603 | 113,970 | 61,320 | (81,777 | ) | 96,116 | ||||||||||||||
Long-term debt - affiliate | 38,661 | — | 7,413 | (46,074 | ) | — | ||||||||||||||
Long-term debt - third party | 267,827 | 93,758 | 870 | �� | 362,455 | |||||||||||||||
Other long-term obligations | — | 61,246 | 34,239 | — | 95,485 | |||||||||||||||
Deferred income taxes | — | 248 | 57,182 | — | 57,430 | |||||||||||||||
Stockholders' equity | 810,529 | 1,068,028 | 668,113 | (1,736,141 | ) | 810,529 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,119,620 | $ | 1,337,250 | $ | 829,137 | $ | (1,863,992 | ) | $ | 1,422,015 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2013 (Predecessor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 220,354 | $ | 149,251 | $ | (369,605 | ) | $ | — | |||||||||
Sales - third party | — | 469,033 | 697,641 | — | 1,166,674 | |||||||||||||||
Net sales | — | 689,387 | 846,892 | (369,605 | ) | 1,166,674 | ||||||||||||||
Cost of sales | — | 584,819 | 812,394 | (369,605 | ) | 1,027,608 | ||||||||||||||
Gross profit | — | 104,568 | 34,498 | — | 139,066 | |||||||||||||||
Research and development | — | 10,437 | — | — | 10,437 | |||||||||||||||
Selling and administrative expenses | — | 40,548 | 70,495 | — | 111,043 | |||||||||||||||
Rationalizations | — | 2,732 | 17,424 | — | 20,156 | |||||||||||||||
Operating income (loss) | — | 50,851 | (53,421 | ) | — | (2,570 | ) | |||||||||||||
Other expense (income), net | — | (176 | ) | 1,874 | — | 1,698 | ||||||||||||||
Interest expense - affiliate | — | 1,364 | 670 | (2,034 | ) | — | ||||||||||||||
Interest expense - third party | 31,294 | 3,029 | 1,714 | — | 36,037 | |||||||||||||||
Interest income - affiliate | (1,233 | ) | (670 | ) | (131 | ) | 2,034 | — | ||||||||||||
Interest income - third party | — | — | (203 | ) | — | (203 | ) | |||||||||||||
(Loss) income before income taxes | (30,061 | ) | 47,304 | (57,345 | ) | — | ` | (40,102 | ) | |||||||||||
(Benefit) provision for income taxes | (10,659 | ) | 9,111 | (11,295 | ) | — | (12,843 | ) | ||||||||||||
Equity in losses of subsidiary | (7,857 | ) | (46,050 | ) | — | 53,907 | — | |||||||||||||
Net income (loss) | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net income (loss) | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Other comprehensive (loss) income | (11,946 | ) | (11,946 | ) | (13,601 | ) | 25,547 | (11,946 | ) | |||||||||||
Comprehensive income (loss) | $ | (39,205 | ) | $ | (19,803 | ) | $ | (59,651 | ) | $ | 79,454 | $ | (39,205 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2014 (Predecessor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 263,742 | $ | 150,346 | $ | (414,088 | ) | $ | — | |||||||||
Sales - third party | — | 422,991 | 662,313 | — | 1,085,304 | |||||||||||||||
Net sales | — | 686,733 | 812,659 | (414,088 | ) | 1,085,304 | ||||||||||||||
Cost of sales | — | 630,031 | 777,114 | (414,088 | ) | 993,057 | ||||||||||||||
Gross profit | — | 56,702 | 35,545 | — | 92,247 | |||||||||||||||
Research and development | — | 14,844 | — | — | 14,844 | |||||||||||||||
Selling and administrative expenses | — | 55,454 | 68,724 | — | 124,178 | |||||||||||||||
Impairments | — | 186,552 | 10,668 | — | 197,220 | |||||||||||||||
Rationalizations | — | 9,109 | 2,516 | — | 11,625 | |||||||||||||||
Operating income (loss) | — | (209,257 | ) | (46,363 | ) | — | (255,620 | ) | ||||||||||||
Other expense (income), net | — | 1,575 | 870 | — | 2,445 | |||||||||||||||
Interest expense - affiliate | — | 806 | — | (806 | ) | — | ||||||||||||||
Interest expense - third party | 32,118 | 4,037 | 902 | — | 37,057 | |||||||||||||||
Interest income - affiliate | (806 | ) | — | — | 806 | — | ||||||||||||||
Interest income - third party | — | (11 | ) | (319 | ) | — | (330 | ) | ||||||||||||
(Loss) income before income taxes | (31,312 | ) | (215,664 | ) | (47,816 | ) | — | ` | (294,792 | ) | ||||||||||
(Benefit) provision for income taxes | 3,319 | (5,618 | ) | (7,117 | ) | — | (9,416 | ) | ||||||||||||
Equity in losses of subsidiary | (251,495 | ) | (40,699 | ) | — | 292,194 | — | |||||||||||||
Net income (losses) | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Other comprehensive (loss) income | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive income (loss) | $ | (330,026 | ) | $ | (294,645 | ) | $ | (69,349 | ) | $ | 364,744 | $ | (329,276 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Period January 1 through August 14, 2015 (Predecessor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 124,489 | $ | 52,794 | $ | (177,283 | ) | $ | — | |||||||||
Sales - third party | — | 160,761 | 277,170 | — | 437,931 | |||||||||||||||
Net sales | — | 285,250 | 329,964 | (177,283 | ) | 437,931 | ||||||||||||||
Cost of sales | — | 266,369 | 310,731 | (177,283 | ) | 399,817 | ||||||||||||||
Gross profit | — | 18,881 | 19,233 | — | 38,114 | |||||||||||||||
Research and development | — | 5,556 | — | — | 5,556 | |||||||||||||||
Selling and administrative expenses | 6,750 | 44,507 | 29,890 | — | 81,147 | |||||||||||||||
Impairments | — | 35,381 | — | — | 35,381 | |||||||||||||||
Rationalizations | — | (374 | ) | 4,881 | — | 4,507 | ||||||||||||||
Operating loss | (6,750 | ) | (66,189 | ) | (15,538 | ) | — | (88,477 | ) | |||||||||||
Other expense (income), net | — | 804 | 531 | — | 1,335 | |||||||||||||||
Interest expense - affiliate | 3 | 372 | — | (375 | ) | — | ||||||||||||||
Interest expense - third party | 24,366 | 2,481 | 271 | — | 27,118 | |||||||||||||||
Interest income - affiliate | (372 | ) | (3 | ) | — | 375 | — | |||||||||||||
Interest income - third party | — | (5 | ) | (362 | ) | — | (367 | ) | ||||||||||||
Loss before income taxes | (30,747 | ) | (69,838 | ) | (15,978 | ) | — | ` | (116,563 | ) | ||||||||||
(Benefit from) provision for income taxes | — | 385 | 3,701 | — | 4,086 | |||||||||||||||
Equity in losses of subsidiary | (89,902 | ) | (19,679 | ) | — | 109,581 | — | |||||||||||||
Net loss | $ | (120,649 | ) | $ | (89,902 | ) | $ | (19,679 | ) | $ | 109,581 | $ | (120,649 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (120,649 | ) | $ | (89,902 | ) | $ | (19,679 | ) | $ | 109,581 | $ | (120,649 | ) | ||||||
Other comprehensive (loss) income | (26,674 | ) | (26,674 | ) | (28,041 | ) | 54,715 | (26,674 | ) | |||||||||||
Comprehensive (loss) income | $ | (147,323 | ) | $ | (116,576 | ) | $ | (47,720 | ) | $ | 164,296 | $ | (147,323 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Period August 15 Through December 31, 2015 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 51,262 | $ | 32,611 | $ | (83,873 | ) | $ | — | |||||||||
Sales - third party | — | 86,053 | 162,688 | — | 248,741 | |||||||||||||||
Net sales | — | 137,315 | 195,299 | (83,873 | ) | 248,741 | ||||||||||||||
Cost of sales | — | 132,610 | 181,175 | (83,873 | ) | 229,912 | ||||||||||||||
Gross profit | — | 4,705 | 14,124 | — | 18,829 | |||||||||||||||
Research and development | — | 2,348 | — | — | 2,348 | |||||||||||||||
Selling and administrative expenses | — | 10,775 | 21,340 | — | 32,115 | |||||||||||||||
Rationalizations | — | 71 | 1,004 | — | 1,075 | |||||||||||||||
Operating loss | — | (8,489 | ) | (8,220 | ) | — | (16,709 | ) | ||||||||||||
Other expense (income), net | — | 1,166 | (2,109 | ) | — | (943 | ) | |||||||||||||
Interest expense - affiliate | 226 | — | — | (226 | ) | — | ||||||||||||||
Interest expense - third party | 9,552 | 1,079 | 285 | — | 10,916 | |||||||||||||||
Interest income - affiliate | — | (226 | ) | — | 226 | — | ||||||||||||||
Interest income - third party | — | (5 | ) | (6 | ) | — | (11 | ) | ||||||||||||
Loss before income taxes | (9,778 | ) | (10,503 | ) | (6,390 | ) | — | ` | (26,671 | ) | ||||||||||
(Benefit) provision for income taxes | — | 634 | 6,246 | — | 6,880 | |||||||||||||||
Equity in losses of subsidiary | (23,773 | ) | (12,636 | ) | — | 36,409 | — | |||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,773 | ) | $ | (12,636 | ) | $ | 36,409 | $ | (33,551 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,773 | ) | $ | (12,636 | ) | $ | 36,409 | $ | (33,551 | ) | ||||||
Other comprehensive income (loss): | (10,257 | ) | (10,257 | ) | (10,257 | ) | 20,514 | (10,257 | ) | |||||||||||
Comprehensive (loss) income | $ | (43,808 | ) | $ | (34,030 | ) | $ | (22,893 | ) | $ | 56,923 | $ | (43,808 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (13,718 | ) | $ | 72,111 | $ | 58,444 | $ | — | $ | 116,837 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 15,578 | 15,000 | — | (30,578 | ) | — | |||||||||||||
Capital expenditures | — | (52,278 | ) | (34,066 | ) | — | (86,344 | ) | |||||||||||
Insurance recoveries | — | — | 1,500 | — | 1,500 | ||||||||||||||
Proceeds from derivatives (payments on) | — | 437 | (323 | ) | — | 114 | |||||||||||||
Other | — | 322 | 607 | — | 929 | ||||||||||||||
Net cash provided by (used in) investing activities | 15,578 | (36,519 | ) | (32,282 | ) | (30,578 | ) | (83,801 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (15,578 | ) | (15,000 | ) | 30,578 | — | ||||||||||||
Short-term debt borrowings | — | (6 | ) | (7,259 | ) | — | (7,265 | ) | |||||||||||
Revolving Facility borrowings | — | 75,000 | 91,000 | — | 166,000 | ||||||||||||||
Revolving Facility reductions | — | (94,500 | ) | (77,000 | ) | — | (171,500 | ) | |||||||||||
Principal payments on long term debt | — | (166 | ) | (59 | ) | — | (225 | ) | |||||||||||
Supply chain financing | — | — | (17,508 | ) | — | (17,508 | ) | ||||||||||||
Proceeds from exercise of stock options | 448 | — | — | — | 448 | ||||||||||||||
Purchase of treasury shares | (1,825 | ) | — | — | — | (1,825 | ) | ||||||||||||
Refinancing fees and debt issuance costs | (483 | ) | (15 | ) | (62 | ) | — | (560 | ) | ||||||||||
Other | — | — | (5,210 | ) | — | (5,210 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (1,860 | ) | (35,265 | ) | (31,098 | ) | 30,578 | (37,645 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | 327 | (4,936 | ) | — | (4,609 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (820 | ) | — | (820 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 4,425 | 12,892 | — | 17,317 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 4,752 | $ | 7,136 | $ | — | $ | 11,888 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (9,474 | ) | $ | 79,864 | $ | 50,513 | $ | — | $ | 120,903 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 6,604 | — | — | (6,604 | ) | — | |||||||||||||
Capital expenditures | — | (58,926 | ) | (26,055 | ) | — | (84,981 | ) | |||||||||||
Insurance recoveries | — | — | 2,834 | — | 2,834 | ||||||||||||||
Proceeds (payments) for derivatives | — | (2,195 | ) | 170 | — | (2,025 | ) | ||||||||||||
Proceeds from fixed asset sales | — | 1,700 | 3,342 | 5,042 | |||||||||||||||
Other | — | — | 178 | — | 178 | ||||||||||||||
Net cash provided by (used in) investing activities | 6,604 | (59,421 | ) | (19,531 | ) | (6,604 | ) | (78,952 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (6,604 | ) | — | 6,604 | — | |||||||||||||
Short-term debt borrowings | — | (34 | ) | (987 | ) | — | (1,021 | ) | |||||||||||
Revolving Facility borrowings | — | 183,000 | 86,000 | — | 269,000 | ||||||||||||||
Revolving Facility reductions | — | (193,000 | ) | (100,000 | ) | — | (293,000 | ) | |||||||||||
Principal payments on long term debt | — | (132 | ) | (60 | ) | — | (192 | ) | |||||||||||
Supply chain financing | — | — | (9,455 | ) | — | (9,455 | ) | ||||||||||||
Proceeds from exercise of stock options | 2,813 | — | — | — | 2,813 | ||||||||||||||
Purchase of treasury shares | (894 | ) | — | — | — | (894 | ) | ||||||||||||
Refinancing fees and debt issuance costs | — | (2,922 | ) | (357 | ) | — | (3,279 | ) | |||||||||||
Other | 951 | — | — | — | 951 | ||||||||||||||
Net cash (used in) provided by financing activities | 2,870 | (19,692 | ) | (24,859 | ) | 6,604 | (35,077 | ) | |||||||||||
Net increase in cash and cash equivalents | — | 751 | 6,123 | — | 6,874 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,212 | ) | — | (1,212 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 4,752 | 7,136 | — | 11,888 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 5,503 | $ | 12,047 | $ | — | $ | 17,550 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the Period January 1 through August 14, 2015 (Predecessor) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (4,017 | ) | $ | 34,418 | $ | 25,632 | $ | (27,710 | ) | $ | 28,323 | |||||||
Cash flow from investing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 36,204 | (21,343 | ) | — | (14,861 | ) | — | ||||||||||||
Capital expenditures | — | (20,572 | ) | (11,729 | ) | — | (32,301 | ) | |||||||||||
Payments for derivative instruments | — | (7,595 | ) | (668 | ) | — | (8,263 | ) | |||||||||||
Proceeds from sale of assets | — | 397 | 249 | — | 646 | ||||||||||||||
Net cash provided by (used in) investing activities | 36,204 | (49,113 | ) | (12,148 | ) | (14,861 | ) | (39,918 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 21,343 | (36,204 | ) | — | 14,861 | — | |||||||||||||
Dividends to affiliates | — | — | (27,710 | ) | 27,710 | ||||||||||||||
Short-term debt, net | — | 14,002 | 4,509 | — | 18,511 | ||||||||||||||
Revolving Facility borrowings | — | 126,000 | 34,000 | — | 160,000 | ||||||||||||||
Revolving Facility reductions | — | (87,000 | ) | (12,000 | ) | — | (99,000 | ) | |||||||||||
Repayment of Senior Subordinated Notes | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||||
Issuance of Preferred Shares | 150,000 | — | — | — | 150,000 | ||||||||||||||
Principal payments on long term debt | — | (89 | ) | — | — | (89 | ) | ||||||||||||
Proceeds from exercise of stock options | 32 | — | — | — | 32 | ||||||||||||||
Purchase of treasury shares | (63 | ) | — | — | — | (63 | ) | ||||||||||||
Revolver facility refinancing | — | (5,037 | ) | (31 | ) | — | (5,068 | ) | |||||||||||
Other | (3,499 | ) | — | — | — | (3,499 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (32,187 | ) | 11,672 | (1,232 | ) | 42,571 | 20,824 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (3,023 | ) | 12,252 | — | 9,229 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,746 | ) | — | (1,746 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 5,503 | 12,047 | — | 17,550 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 2,480 | $ | 22,553 | $ | — | $ | 25,033 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (15,930 | ) | $ | 18,471 | $ | 20,574 | $ | — | $ | 23,115 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | — | (17,315 | ) | — | 17,315 | — | |||||||||||||
Capital expenditures | — | (8,438 | ) | (10,004 | ) | — | (18,442 | ) | |||||||||||
Payments for derivative instruments | — | — | 326 | — | 326 | ||||||||||||||
Proceeds from sale of assets | — | 492 | 140 | — | 632 | ||||||||||||||
Net cash provided by (used in) investing activities | — | (25,261 | ) | (9,538 | ) | 17,315 | (17,484 | ) | |||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 17,315 | — | — | (17,315 | ) | — | |||||||||||||
Dividends to affiliates | — | — | — | — | |||||||||||||||
Short-term debt, net | — | (10,998 | ) | (4,506 | ) | — | (15,504 | ) | |||||||||||
Revolving Facility borrowings | — | 52,000 | 10,000 | — | 62,000 | ||||||||||||||
Revolving Facility reductions | — | (36,000 | ) | (32,000 | ) | — | (68,000 | ) | |||||||||||
Issuance of Preferred Shares | (1,385 | ) | — | — | — | (1,385 | ) | ||||||||||||
Principal payments on long term debt | — | (46 | ) | (137 | ) | — | (183 | ) | |||||||||||
Net cash (used in) provided by financing activities | 15,930 | 4,956 | (26,643 | ) | (17,315 | ) | (23,072 | ) | |||||||||||
Decrease in cash and cash equivalents | — | (1,834 | ) | (15,607 | ) | — | (17,441 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (665 | ) | — | (665 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 2,480 | 22,553 | — | 25,033 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 646 | $ | 6,281 | $ | — | $ | 6,927 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Total Targeted Direct Compensation | |||||||
Salary | ICP | EIP | Total | ||||
Joel L. Hawthorne | 19% | 19% | 62% | 100% | |||
Quinn J. Coburn | 32% | 21% | 47% | 100% | |||
Jeffrey C. Dutton | 62.5% | 37.5% | — | 100% | |||
Lionel D. Batty | 32% | 21% | 47% | 100% | |||
Darrell A. Blair | 32% | 21% | 47% | 100% |
Name | Year | Salary ($) (6) | Stock Awards (7) | Option Awards ($) (7) | Non-Equity Incentive Plan Compensation ($) (6) (8) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) (9) | All Other Compensation ($) (10) | Total ($) | |||||||
Joel L. Hawthorne (1) | 2015 | 653,333 | — | — | — | 30,549 | 14,390 | 698,272 | |||||||
2014 | 680,512 | 2,926,962 | 791,434 | — | 8,638 | 28,794 | 4,436,340 | ||||||||
2013 | 300,000 | 379,168 | 99,876 | 22,230 | (5,777 | ) | 17,012 | 812,599 | |||||||
Quinn J. Coburn (2) | 2015 | 310,667 | — | — | — | — | 39,018 | 349,685 | |||||||
Erick R. Asmussen | 2015 | 148,438 | — | — | — | (2,757 | ) | 107,651 | 253,332 | ||||||
2014 | 375,000 | 381,600 | 95,400 | — | 14,695 | 10,873 | 877,568 | ||||||||
2013 | 290,080 | 472,804 | 124,845 | — | (7,810 | ) | 15,117 | 895,036 | |||||||
Jeffrey C. Dutton (3) | 2015 | 97,500 | — | — | — | — | 8,749 | 106,249 | |||||||
Darrell A. Blair (4) | 2015 | 380,217 | — | — | — | (31,382 | ) | 43,309 | 392,144 | ||||||
2014 | 414,332 | 366,336 | 91,584 | — | — | 50,882 | 923,134 | ||||||||
Lionel D. Batty (5) | 2015 | 290,000 | — | — | — | (41,803 | ) | 9,974 | 258,171 | ||||||
2014 | 299,026 | 305,280 | 76,320 | — | — | 10,450 | 691,076 | ||||||||
John D. Moran | 2015 | 213,189 | — | — | — | — | 11,836 | 225,025 | |||||||
2014 | 320,000 | 271,360 | 67,840 | — | — | 14,446 | 673,646 | ||||||||
2013 | 320,000 | 336,396 | 88,305 | — | — | 18,345 | 763,046 | ||||||||
Name | Employer Matching Contribution to Savings Plan($) | Additional Employer Contribution to Savings Plan ($) | Employer Matching Contribution on Excess Deferrals ($) | Additional Employer Contribution to Compensation Deferral Plan ($) | Other ($) | Total ($) | ||||||
Joel L. Hawthorne | 9,825 | 2,650 | — | — | 1,915 | 14,390 | ||||||
Quinn J. Coburn | 10,600 | 2,707 | — | — | 25,711 | 39,018 | ||||||
Erick R. Asmussen | 5,938 | 1,484 | — | — | 100,230 | 107,651 | ||||||
Jeffrey C. Dutton | 3,313 | — | — | — | 5,436 | 8,749 | ||||||
Darrell A. Blair | — | — | — | — | 43,309 | 43,309 | ||||||
Lionel D. Batty | 6,482 | 2,004 | — | — | 1,488 | 9,974 | ||||||
John D. Moran | 8,528 | 2,380 | — | — | 928 | 11,836 |
Name | Type | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | All Other Stock Awards: Number of Shares of Stock or Units | All Other Option Awards: Number of Securities Underlying Options (#)(3) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($)(4) | ||||||||
Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#)(3) | Maximum (#) | ||||||||||
Joel L. Hawthorne | ICP | (1 | ) | 350,000 | 700,000 | 1,680,000 | |||||||||
Quinn J. Coburn | ICP | (1 | ) | — | 234,000 | 561,600 | No Equity Awards were granted to the Named Executive Officers in 2015 | ||||||||
Erick R. Asmussen | ICP | (1 | ) | 121,875 | 243,750 | 585,000 | |||||||||
Jeffrey C. Dutton | ICP | (1 | ) | 234,000 | |||||||||||
Darrell A. Blair | ICP | (1 | ) | 103,500 | 207,000 | 496,800 | |||||||||
Lionel D. Batty | ICP | (1 | ) | 97,500 | 195,000 | 468,000 | |||||||||
John D. Moran | ICP | (1 | ) | 88,000 | 176,000 | 422,400 |
Name | Executive’s Contributions $ (1) | Company Contributions $ (2) | Earnings $ (3) | Withdrawals/ Distributions $ (4) | Balance 12/31/2015 $ (5) | |||||||||
Joel L. Hawthorne | - | 292 | 1,794 | (54,954 | ) | 4,974 | ||||||||
Quinn J. Coburn | - | - | (35 | ) | - | 3,719 | ||||||||
Erick R. Asmussen | - | 156 | (1,090 | ) | (64,288 | ) | 9,731 | |||||||
Jeffrey C. Dutton | - | - | - | - | - | |||||||||
Darrell A. Blair | - | - | 312 | - | 23,535 | |||||||||
Lionel D. Batty | 87,000 | 44 | (7,790 | ) | (372,654 | ) | 203,215 | |||||||
John D. Moran | - | 3 | (3,265 | ) | (573,952 | ) | - |
Name | Severance Payment Based on Salary ($) | Severance Payment Based on Incentive Compensation ($) | Value of Health, Life and Disability Insurance Benefits ($) (1) | Estimated Tax Gross Up($) (2) | Payout of Non-qualified Deferred Compensation(3) | Total ($) | ||||||
Joel L. Hawthorne | 1,400,000 | 1,400,000 | 75,000 | 1,523,000 | 5,000 | 4,403,000 | ||||||
Quinn J. Coburn | 720,000 | 468,000 | 72,000 | n/a | 4,000 | 1,264,000 | ||||||
Erick R. Asmussen | — | — | — | — | 10,000 | 10,000 | ||||||
Jeffrey C. Dutton | n/a | n/a | n/a | n/a | n/a | n/a | ||||||
Darrell A. Blair | 720,000 | 468,000 | 72,000 | n/a | 24,000 | 1,284,000 | ||||||
Lionel D. Batty | 600,000 | 390,000 | 72,000 | — | 204,000 | 1,266,000 |
Name (3) | Fees Earned or Paid in Cash (1)($) | Stock Awards (2) ($) | Total ($) | ||
Randy W. Carson (4) | 124,625 | — | 124,625 | ||
Thomas A. Danjczek (5) | 115,250 | — | 115,250 | ||
Karen Finerman | 100,250 | — | 100,250 | ||
David Jardini | 104,000 | — | 104,000 | ||
Nathan Milikowsky (6) | 109,625 | — | 109,625 | ||
M. Catherine Morris (7) | 111,500 | — | 111,500 |
Item 15. | Exhibits and Financial Statement Schedules |
(2) | Financial Statement Schedules |
Exhibits |
Exhibit Number | Description of Exhibit | |
reference to Exhibit | ||
4.1 | ||
Exhibit 4.1 to GrafTech International Ltd.’s Form 10‑Q filed on August 3, 2018). | ||
4.2 | ||
4.3* |
4.4* | ||
10.1 | ||
10.2 | ||
10.4 |
10.5 | ||
10.6 | ||
10.9 | ||
10.10 | ||
10.11 | ||
10.12 | ||
10.13 | ||
10.14 | ||
10.15 | ||
between GrafTech International Ltd. | ||
Brookfield Capital Partners IV GP, Ltd. (incorporated by reference to Exhibit 10.14 to GrafTech International Ltd. | ||
10.21+ | ||
10.22+ | ||
10.24+ | ||
10.25+ | ||
10.26+ |
10.34+ | ||
10.35+ | ||
10.36+ | ||
10.37+ | ||
10.38 | ||
10.39+* | ||
21.1* | ||
31.2* | ||
32.1* | ||
32.2* | ||
101 | The following financial information from GrafTech International Ltd.'s Annual Report on Form 10-K for the year ended December 31, 2019 formatted in Inline XBRL | |
104 | ||
* | Filed herewith |
+ | Indicates management contract or compensatory plan or arrangement |
Item 16. | Form 10-K Summary |
GRAFTECH INTERNATIONAL LTD. | ||
By: | /s/ | |
Title: | President and Chief Executive Officer | |
Signatures | Title | Date | ||
/s/ | President, (Principal Executive Officer) | |||
/s/ Quinn J. Coburn | Chief Financial Officer, Vice President Finance and Treasurer (Principal Financial and Accounting Officer) | |||
Quinn J. Coburn | ||||
/s/ Denis A. Turcotte | Chairman and Director | |||
Denis A. Turcotte | ||||
/s/ Brian L. Acton | Director | February 21, 2020 | ||
Brian L. Acton | ||||
/s/ Catherine L. Clegg | Director | February 21, 2020 | ||
Catherine L. Clegg | ||||
/s/ Michel L. Dumas | Director | February 21, 2020 | ||
Michel L. Dumas | ||||
/s/ Jeffrey C. Dutton | Director | February 21, 2020 | ||
Jeffrey C. Dutton | ||||
/s/ David Gregory | Director | February 21, 2020 | ||
David Gregory | ||||
/s/ Anthony R. Taccone | Director | February 21, 2020 | ||
Anthony R. Taccone |