Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 02, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-13948 | ||
Entity Registrant Name | SCHWEITZER-MAUDUIT INTERNATIONAL, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 62-1612879 | ||
Entity Address, Address Line One | 100 North Point Center East, | ||
Entity Address, Address Line Two | Suite 600 | ||
Entity Address, Postal Zip Code | 30022 | ||
City Area Code | 800 | ||
Local Phone Number | 514-0186 | ||
Title of 12(b) Security | Common stock, $0.10 par value | ||
Trading Symbol | SWM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1 | ||
Entity Common Stock, Shares Outstanding | 31,191,520 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Central Index Key | 0001000623 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Address, City or Town | Alpharetta, | ||
Entity Address, State or Province | GA |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 1,022.8 | $ 1,041.3 | $ 982.1 |
Cost of products sold | 732.8 | 762.8 | 698.7 |
Gross profit | 290 | 278.5 | 283.4 |
Selling expense | 33.7 | 35.7 | 33.3 |
Research expense | 13.5 | 15.2 | 17.8 |
General expense | 105.1 | 90.9 | 95.9 |
Total nonmanufacturing expenses | 152.3 | 141.8 | 147 |
Restructuring and impairment expense | 3.7 | 1.7 | 8.1 |
Operating profit | 134 | 135 | 128.3 |
Interest expense | 36.1 | 28.2 | 26.9 |
Other (expense) income, net | (1) | 10 | 0.1 |
Income from continuing operations before income taxes and income from equity affiliates | 96.9 | 116.8 | 101.5 |
Provision for income taxes | 15.2 | 10.7 | 69.6 |
Income (Loss) from equity affiliates, net of income taxes | 4.1 | (11.3) | 2.5 |
Income from continuing operations | 85.8 | 94.8 | 34.4 |
(Loss) gain from discontinued operations | 0 | (0.3) | 0.1 |
Net income | $ 85.8 | $ 94.5 | $ 34.5 |
Net income (loss) per share - basic: | |||
Income per share from continuing operations (in dollars per share) | $ 2.78 | $ 3.08 | $ 1.12 |
Loss per share from discontinued operations (in dollars per share) | 0 | (0.01) | 0 |
Net income per share - basic (in dollars per share) | 2.78 | 3.07 | 1.12 |
Net income (loss) per share – diluted: | |||
Income per share from continuing operations (in dollars per share) | 2.76 | 3.07 | 1.12 |
Loss per share from discontinued operations (in dollars per share) | 0 | (0.01) | 0 |
Net income per share - diluted (in dollars per share) | $ 2.76 | $ 3.06 | $ 1.12 |
Weighted average shares outstanding: | |||
Basic (in shares) | 30,652,200 | 30,551,300 | 30,407,100 |
Diluted (in shares) | 30,838,300 | 30,692,900 | 30,549,300 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 85.8 | $ 94.5 | $ 34.5 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | 1.8 | (28.6) | 36 |
Less: Reclassification adjustment for realized translation adjustments | (0.9) | (0.8) | 0 |
Unrealized gains on derivative instruments | 1.6 | 2.4 | |
Unrealized gains on derivative instruments | 2 | ||
Less: Reclassification adjustment for (gains) losses on derivative instruments included in net income | (4.5) | (3.7) | 0.3 |
Net gain (loss) from postretirement benefit plans | 0.6 | (3.3) | 8.3 |
Less: Amortization of postretirement benefit plans' costs included in net periodic benefit cost | 3.3 | 3.8 | 3.3 |
Other comprehensive income (loss) | 1.9 | (30.2) | 49.9 |
Comprehensive income | $ 87.7 | $ 64.3 | $ 84.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 103 | $ 93.8 |
Accounts receivable, net | 143.2 | 154.6 |
Inventories | 161.4 | 151.5 |
Income taxes receivable | 12.5 | 12.2 |
Assets held for sale | 0 | 12 |
Other current assets | 7.4 | 5.1 |
Total current assets | 427.5 | 429.2 |
Property, plant and equipment, net | 340.3 | |
Property, plant and equipment, net | 330.3 | |
Deferred income tax benefits | 3.7 | 0.3 |
Investment in equity affiliates | 52.4 | 51.9 |
Goodwill | 337.4 | 338.1 |
Intangible assets | 251.2 | 272.8 |
Other assets | 69.2 | 33.9 |
Total assets | 1,471.7 | 1,466.5 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current debt | 1.9 | 3.3 |
Accounts payable | 66.4 | 65.7 |
Income taxes payable | 2.8 | 1.6 |
Accrued expenses | 86.5 | 72.9 |
Total current liabilities | 157.6 | 143.5 |
Long-term debt | 540.8 | 618.8 |
Long-term income tax payable | 21.4 | 27 |
Pension and other postretirement benefits | 31.6 | 28.2 |
Deferred income tax liabilities | 48.2 | 48 |
Other liabilities | 74.4 | 43.1 |
Total liabilities | 874 | 908.6 |
Stockholders' equity: | ||
Preferred stock, $0.10 par value per share; 10,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.10 par value per share; 100,000,000 shares authorized; 30,896,661 and 30,771,244 shares issued and outstanding at December 31, 2019 and 2018, respectively | 3.1 | 3.1 |
Additional paid-in-capital | 78.8 | 71.1 |
Retained earnings | 638.4 | 608.2 |
Accumulated other comprehensive loss | (122.6) | (124.5) |
Total stockholders' equity | 597.7 | 557.9 |
Total liabilities and stockholders' equity | $ 1,471.7 | $ 1,466.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock (dollars per share) | $ 0.1 | $ 0.1 |
Preferred shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares issued (in shares) | 0 | 0 |
Preferred shares outstanding (in shares) | 0 | 0 |
Common stock (dollars per share) | $ 0.1 | $ 0.1 |
Common shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common shares issued (in shares) | 30,896,661 | 30,771,244 |
Common stock outstanding (in shares) | 30,896,661 | 30,771,244 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Balance (in shares) at Dec. 31, 2016 | 30,544,494 | ||||
Balance at Dec. 31, 2016 | $ 508.3 | $ 3.1 | $ 59.2 | $ 585.3 | $ (139.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 34.5 | 34.5 | |||
Other comprehensive income (loss), net of tax | 49.9 | 49.9 | |||
Dividends declared | (51.9) | (51.9) | |||
Restricted stock issuances, net (in shares) | 186,867 | ||||
Restricted stock issuances, net | 0 | ||||
Stock-based employee compensation expense | 6.9 | 6.9 | |||
Stock issued to directors as compensation (in shares) | 5,798 | ||||
Stock issued to directors as compensation | 0.2 | 0.2 | |||
Purchases and cancellation of common stock (in shares) | (25,860) | ||||
Purchases and cancellation of common stock | (1.2) | (1.2) | |||
Balance (in shares) at Dec. 31, 2017 | 30,711,299 | ||||
Balance at Dec. 31, 2017 | 546.7 | $ 3.1 | 66.3 | 566.7 | (89.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 94.5 | 94.5 | |||
Other comprehensive income (loss), net of tax | (30.2) | (30.2) | |||
Dividends declared | (53.2) | (53.2) | |||
Restricted stock issuances, net (in shares) | 130,617 | ||||
Restricted stock issuances, net | 0 | ||||
Stock-based employee compensation expense | 4.6 | 4.6 | |||
Stock issued to directors as compensation (in shares) | 4,723 | ||||
Stock issued to directors as compensation | 0.2 | 0.2 | |||
Purchases and cancellation of common stock (in shares) | (75,395) | ||||
Purchases and cancellation of common stock | (3) | (3) | |||
Balance (in shares) at Dec. 31, 2018 | 30,771,244 | ||||
Balance at Dec. 31, 2018 | 557.9 | $ 3.1 | 71.1 | 608.2 | (124.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 85.8 | 85.8 | |||
Other comprehensive income (loss), net of tax | 1.9 | 1.9 | |||
Dividends declared | (54.4) | (54.4) | |||
Restricted stock issuances, net (in shares) | 147,113 | ||||
Restricted stock issuances, net | 0 | ||||
Stock-based employee compensation expense | 7.6 | 7.6 | |||
Stock issued to directors as compensation (in shares) | 3,601 | ||||
Stock issued to directors as compensation | 0.1 | 0.1 | |||
Purchases and cancellation of common stock (in shares) | (25,297) | ||||
Purchases and cancellation of common stock | (0.9) | (0.9) | |||
Balance (in shares) at Dec. 31, 2019 | 30,896,661 | ||||
Balance at Dec. 31, 2019 | $ 597.7 | $ 3.1 | $ 78.8 | $ 638.4 | $ (122.6) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 1.76 | $ 1.73 | $ 1.69 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operations | |||
Net income | $ 85.8 | $ 94.5 | $ 34.5 |
Less: (Loss) gain from discontinued operations | 0 | (0.3) | 0.1 |
Income from continuing operations | 85.8 | 94.8 | 34.4 |
Non-cash items included in net income: | |||
Depreciation and amortization | 57.7 | 61.6 | 59.5 |
Impairments | 1.1 | 0.2 | 4.6 |
Deferred income tax (benefit) provision | (3.4) | 7.5 | 1.6 |
Pension and other postretirement benefits | 2.6 | 2.8 | 3.8 |
Stock-based compensation | 7.7 | 4.8 | 7.1 |
(Income) loss from equity affiliates | (4.1) | 11.3 | (2.5) |
Brazil tax assessment accruals, net | 10.9 | 0 | 0 |
Gain on sale of assets | 0 | 0 | (4.9) |
Long-term income tax payable | (0.6) | (12) | 36.7 |
Change in fair value of contingent consideration | 0 | (10.2) | 0 |
Cash dividends received from equity affiliates | 2.6 | 2 | 1.8 |
Other items | 1.8 | 0.4 | 0.7 |
Changes in operating working capital: | |||
Accounts receivable | 10.8 | (18.3) | (0.9) |
Inventories | (11.2) | (4.9) | (6.4) |
Prepaid expenses | (0.2) | (0.1) | 0.8 |
Accounts payable | (2.1) | 8 | 4.7 |
Accrued expenses | 3.9 | (1) | (3) |
Accrued income taxes | (3) | (8) | (7.1) |
Net changes in operating working capital | (1.8) | (24.3) | (11.9) |
Net cash provided by operating activities of: | |||
- Continuing operations | 160.3 | 138.9 | 130.9 |
- Discontinued operations | 0 | 0.2 | 0.1 |
Cash provided by operations | 160.3 | 139.1 | 131 |
Investing | |||
Capital spending | (28.6) | (27) | (37.2) |
Capitalized software costs | (5.5) | (2.7) | (3.5) |
Acquisitions, net of cash acquired | 0 | 0 | (291.7) |
Proceeds from sale of assets | 14.7 | 0 | 7 |
Other investing | 4.6 | 2.2 | 6.9 |
Cash used for investing | (14.8) | (27.5) | (318.5) |
Financing | |||
Cash dividends paid to SWM stockholders | (54.4) | (53.2) | (51.9) |
Changes in short-term debt, net | (0.1) | (1.3) | 1.5 |
Proceeds from issuances of long-term debt | 19.1 | 634.2 | 440.5 |
Payments on long-term debt | (99.5) | (694) | (208.8) |
Payments for debt issuance costs | 0 | (3.6) | (0.6) |
Purchases of common stock | (0.9) | (3) | (1.2) |
Cash (used in) provided by financing | (135.8) | (120.9) | 179.5 |
Effect of exchange rate changes on cash and cash equivalents | (0.5) | (3.8) | 7.5 |
Increase (decrease) in cash and cash equivalents | 9.2 | (13.1) | (0.5) |
Cash and cash equivalents at beginning of period | 93.8 | 106.9 | 107.4 |
Cash and cash equivalents at end of period | $ 103 | $ 93.8 | $ 106.9 |
General
General | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Nature of Business Schweitzer-Mauduit International, Inc., or SWM or the Company, headquartered in the United States of America, is a multinational diversified producer of highly engineered solutions and advanced materials for a variety of industries. The Company maintains two operating product line segments: Advanced Materials and Structures and Engineered Papers. The Advanced Materials & Structures segment, or AMS, produces mostly resin-based rolled goods such as nets, films and meltblown materials, typically through an extrusion process or other non-woven technologies. These products are used in a variety of specialty applications across the filtration, transportation, construction and infrastructure, medical, and industrial end-markets. The Engineered Papers segment, or EP, primarily serves the tobacco industry with production of various cigarette papers and reconstituted tobacco products, or "recon." Traditional reconstituted tobacco leaf, or "RTL," is used as a blend with virgin tobacco in cigarettes and used as wrappers and binders for cigars. Recon, as well as LIP (low ignition propensity) cigarette paper, a specialty product with fire-safety features, are two key profit drivers. The EP segment also produces non-tobacco papers for both premium applications, such as energy storage, and industrial commodity paper grades, which are often produced to maximize machine utilization. We conduct business in over 90 countries and operate 22 production locations worldwide, with facilities in the U.S., Canada, United Kingdom, France, Luxembourg, Belgium, Russia, Brazil, China and Poland. We also have a 50% equity interest in two joint ventures in China. The first, China Tobacco Mauduit (Jiangmen) Paper Industry Ltd., or CTM, produces cigarette and porous plug wrap papers and the second, China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. Ltd., or CTS, produces RTL. As used in this 2019 Annual Report on Form 10-K, unless the context indicates otherwise, references to "we," "us," "our," "SWM," "Schweitzer-Mauduit" or similar terms include Schweitzer-Mauduit International, Inc. and its consolidated subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements and the notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America, "U.S. GAAP." The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company believes the estimates and assumptions used in the preparation of these consolidated financial statements are reasonable, based upon currently available facts and known circumstances. Actual results may differ from those estimates and assumptions as a result of a number of factors, including those discussed elsewhere in this report and in its other public filings from time to time. Principles of Consolidation The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated. Certain reclassifications of prior year data were made in the Notes to Consolidated Financial Statements. The reclassifications were made to conform to the current year presentation. The Company uses the equity method to account for its investments in two joint ventures with the China National Tobacco Corporation (see Note 10 . Joint Ventures). Investment in equity affiliates represents the Company’s investment in these joint ventures. The Company’s 50% share of the net income (loss) of the joint ventures is included in the consolidated statements of income as income (loss) from equity affiliates. Revenue Recognition The Company has two main sources of revenue: product sales and materials conversion. The Company recognizes product sales revenues when control of a product is transferred to the customer. For the majority of product sales, transfer of control occurs when the products are shipped from one of the Company’s manufacturing facilities to the customer. The cost of delivering finished goods to the Company’s customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Any freight costs billed to and paid by a customer are included in net sales. The Company also provides services to customers through the conversion of customer-owned raw materials into processed finished goods. In these transactions, the Company generally recognizes revenue as processing is completed. Freight Costs The cost of delivering finished goods to the Company's customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Royalty Income Royalties from third-party patent licenses are recognized when earned, including monies received at an agreement's initiation attributable to past sales. The Company recognizes up-front payments upon receipt when it has no future performance requirement or ongoing obligation arising from its agreements and the payment is for a separate earnings process. Minimum annual royalties received in advance are deferred and are recognized in the period earned. The Company recognized $6.8 million , $5.9 million and $3.9 million of royalty income during 2019 , 2018 and 2017 respectively, which is included in net sales in the Consolidated Statements of Income. Foreign Currency Translation The income statements of foreign entities are translated into U.S. dollars at average exchange rates prevailing during the periods presented. The balance sheets of these entities are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in a separate component of accumulated other comprehensive loss as unrealized foreign currency translation adjustments. Foreign currency risks arise from transactions and balances denominated in non-local currencies. Gains and losses resulting from remeasurement and settlement of such transactions and balances, net of currency hedge impacts, included in other (expense) income, net, were losses of $1.4 million , $1.5 million and $3.5 million in 2019 , 2018 and 2017 , respectively. Derivative Instruments The Company is exposed to changes in foreign currency exchange rates, interest rates and commodity prices. The Company utilizes a variety of practices to manage these market risks, including where considered appropriate, derivative instruments. The Company uses derivative instruments only for risk management purposes and not for trading or speculation. All derivative instruments the Company uses are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The Company believes the credit risks with respect to the counterparties, and the foreign currency risks that would not be hedged if the counterparties fail to fulfill their obligations under the contracts, are not material in view of its understanding of the financial strength of the counterparties. Gains and losses on instruments that hedge firm commitments are deferred and included in the basis of the underlying hedged items. All other hedging gains and losses are included in period income or expense based on the period-end market price of the instrument and are included in the Company's operating cash flows. See Note 16 . Derivatives, for additional information. Cash and Cash Equivalents The Company considers all highly liquid, unrestricted investments with remaining maturities of three months or less to be cash equivalents, including money market funds with no restrictions on withdrawals. As of December 31, 2019 and 2018, included in Cash and cash equivalents on the Consolidated Balance Sheets is $0.6 million in contractually restricted cash. Business Combinations The Company uses the acquisition method of accounting for business combinations. At the acquisition date, the Company records assets acquired and liabilities assumed at their respective fair market values. The Company estimates fair value using the exit price approach which is the price that would be received to sell an asset or paid to transfer a liability in an orderly market. An exit price is determined from a market participant's viewpoint in the principal or most advantageous market and may result in the Company valuing assets or liabilities at a fair value that is not reflective of the Company's intended use of the assets or liabilities. Any excess consideration above the estimated fair values of the net assets acquired is recognized as goodwill on the Company's Consolidated Balance Sheets. The operating results of acquired businesses are included in the Company's results of operations beginning as of their effective acquisition dates. Acquisition costs are expensed as incurred and were $0.0 million , $0.0 million , and $0.2 million in 2019 , 2018 and 2017 , respectively. Impairment of Long-Lived Assets, Goodwill and Intangible Assets The Company evaluates the carrying value of long-lived assets, including property and equipment, goodwill and intangible assets when events and circumstances warrant a review. Goodwill is also tested for impairment annually during the fourth quarter. We first evaluate qualitative factors, such as macroeconomic conditions and our overall financial performance by reporting unit to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We then evaluate how significant each of the identified factors could be to the fair value or carrying amount of a reporting unit and weigh these factors in totality in forming a conclusion of whether or not it is more likely than not that the fair value of a reporting unit is less than its carrying amount (the “Step 0 Test”). If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the first step of the goodwill impairment test is not necessary. Otherwise, we would proceed to the first step of the goodwill impairment test. Alternatively, we may also bypass the Step 0 Test and proceed directly to the first step of the goodwill impairment test. The first step compares the book value of the reporting unit to its fair value. If the book value of a reporting unit exceeds its fair value, the Company performs the second step. In the second step, the Company determines an implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill. The difference between the total fair value of the reporting unit and the fair value of all the assets and liabilities other than goodwill is the implied fair value of that goodwill. Any impairment loss is measured as the excess of the book value of the goodwill over the implied fair value of that goodwill. See Note 11 . Goodwill for further discussion of the Company's annual impairment test results. During the annual testing in the fourth quarter of 2019 , the estimated fair value of each of the Company's reporting units was in excess of its respective carrying value. We have acquired trade names that have been determined to have indefinite lives. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, category share, business history, product life cycle and operating plans. Indefinite-lived intangibles are evaluated for impairment annually during the fourth quarter. Additionally, when certain events or changes in operating conditions occur, an impairment assessment is performed and indefinite-lived trade names may be adjusted to a determinable life or an impairment charge may be recorded. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, which approximates a straight-line basis, over the estimated periods benefited. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Estimated useful lives range from 10 to 23 years for customer relationships and 4 to 20 years for developed technology, patents and other intangible assets. The carrying value of long-lived assets is reviewed to determine if events or circumstances have changed which may indicate that the assets may be impaired or the useful life may need to be changed. Upon occurrence of such a triggering event, the Company considers internal and external factors relating to each asset group, including expectation of future profitability, undiscounted cash flows and its plans with respect to the operations. If impairment is indicated, an impairment loss is measured by the amount the net carrying value of the asset exceeds its estimated fair value. Environmental Spending Environmental spending is capitalized if such spending qualifies as property, plant and equipment, substantially increases the economic value or extends the useful life of an asset. All other such spending is expensed as incurred, including fines and penalties incurred in connection with environmental violations. Environmental spending relating to an existing condition caused by past operations is expensed. Liabilities are accrued when environmental assessments are probable and the costs can be reasonably estimated. Generally, timing of these accruals coincides with completion of a feasibility study or commitment to a formal plan of action. Capitalized Software Costs The Company capitalizes certain purchases of software and software development costs in connection with major projects of software development for internal use. These costs are included in Other assets on the Consolidated Balance Sheets and are amortized using the straight-line method over the estimated useful life not to exceed seven years . Costs associated with business process redesign, end-user training, system start-up and ongoing software maintenance are expensed as incurred. Amortization of capitalized software was $1.9 million , $1.6 million and $1.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Accumulated amortization of capitalized software costs was $36.9 million and $35.5 million at December 31, 2019 and 2018 , respectively. See Note 13 . Other Assets for additional information. Business Tax Credits Business tax credits represent value added tax credits receivable and similar assets, such as Imposto sobre Circulação de Mercadorias e Serviços, or ICMS, in Brazil. Business tax credits are generated when value-added taxes, or VAT, are paid on purchases. VAT and similar taxes are collected from customers on certain sales. In some jurisdictions, export sales do not require VAT collection. See Note 13 . Other Assets for additional information. Income Taxes Our income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best estimate of current and future taxes to be paid. We operate and are subject to income taxes in the U.S. and numerous foreign jurisdictions. The complexity of our global structure requires significant judgments and estimates in determining the allocation of income to each of these jurisdictions and consolidated income tax expense. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If it is determined that the Company would be able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. On December 22, 2017, the Tax Act was enacted into law effective January 1, 2018. The new legislation contains several key tax provisions that affected the Company, and include but are not limited to a one-time deemed repatriation tax on post-1986 accumulated earnings and profits of the foreign subsidiary undistributed earnings (“transition tax”), a reduction of the federal corporate income tax rate from 35% to 21%, a new deduction for Foreign-Derived Intangible Income ("FDII"), and a new provision designed to tax Global Intangible Low Taxed Income (“GILTI”) of foreign subsidiaries effective January 1, 2018. As a result of the GILTI provision, the FASB issued Staff Q&A Topic 740, No. 5 “Accounting for Global Intangible Low-Taxed Income” requiring an entity to make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI as a current period expense when incurred. Management makes certain judgments in interpreting the manner in which complex key provisions of the Tax Act should be applied and in the determination of income tax expense and liabilities. Pension and Other Postretirement Benefits Accounting The Company recognizes the estimated compensation cost of employees' pension and other postretirement benefits over their approximate period of service. The Company's earnings are impacted by amounts of expense recorded related to these benefits, which primarily consist of U.S. and French pension benefits and U.S. other postretirement benefits, or OPEBs. Each year's recorded expenses are estimates based on actuarial calculations of the Company's accumulated and projected benefit obligations, or PBOs, for the Company's various plans. Suspension of additional benefits for future service is considered a curtailment, and if material, necessitates a re-measurement of plan assets and PBO. As part of a re-measurement, the Company adjusts its discount rates and other actuarial assumptions, such as retirement, turnover and mortality table assumptions, as appropriate. See Note 19 . Postretirement and Other Benefits for additional information. Comprehensive Income Comprehensive income includes net income, as well as items charged and credited directly to stockholders' equity, which are excluded from net income. The Company has presented comprehensive income in the Consolidated Statements of Comprehensive Income. Reclassification adjustments of derivative instruments are presented in Net sales and Interest expense in the Consolidated Statements of Income. See Note 16 . Derivatives for additional information. Amortization of accumulated pension and other post-employment benefit (OPEB) liabilities are included in the computation of net periodic pension and OPEB costs, which are more fully discussed in Note 19 . Postretirement and Other Benefits. Components of Accumulated other comprehensive (loss) income were as follows ($ in millions): December 31, 2019 2018 Accumulated pension and OPEB liability adjustments, net of income tax benefit of $12.8 million and $11.4 million at December 31, 2019 and 2018, respectively $ (24.3 ) $ (28.2 ) Accumulated unrealized loss on derivative instruments, net of income tax benefit of $1.6 million and $1.6 million at December 31, 2019 and 2018, respectively (3.5 ) (0.6 ) Accumulated unrealized foreign currency translation adjustments, net of income tax benefit of $5.0 million and $1.7 million at December 31, 2019 and 2018, respectively (94.8 ) (95.7 ) Accumulated other comprehensive loss $ (122.6 ) $ (124.5 ) Changes in the components of Accumulated other comprehensive (loss) income were as follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Pension and OPEB liability adjustments $ 2.5 $ 1.4 $ 3.9 $ (0.9 ) $ (2.4 ) $ (3.3 ) $ 15.4 $ (3.8 ) $ 11.6 Derivative instrument adjustments (2.9 ) — (2.9 ) (2.4 ) 1.4 (1.0 ) 5.1 (2.8 ) 2.3 Unrealized foreign currency translation adjustments (2.5 ) 3.4 0.9 (28.0 ) (2.8 ) (30.8 ) 31.5 4.5 36.0 Total $ (2.9 ) $ 4.8 $ 1.9 $ (31.3 ) $ (3.8 ) $ (35.1 ) $ 52.0 $ (2.1 ) $ 49.9 The change in the components of Accumulated other comprehensive loss for the year ended December 31, 2018 includes a $4.9 million cumulative-effect adjustment from Accumulated other comprehensive loss directly to Retained earnings as a result of the adoption of ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," as discussed below. Restricted Stock All of the Company's restricted stock grants, including those that have been earned in the case of performance-based shares and cliff-vesting grants that are not performance based, vest upon completion of a specified period of time, typically between two and four years . The fair value of each award is equal to the share price of the Company's stock on the date of the grant. This cost is recognized over the vesting period of the respective award. The Company records forfeitures of shares related to continued service requirements as they occur. A summary of outstanding restricted stock awards as of December 31, 2019 and 2018 is included in Note 20 . Stockholders' Equity. Restricted Stock Plan Performance Based Shares The Company's long-term incentive compensation program, or LTICP, for key employees includes an equity-based award component that is provided through the Long-term Incentive Plan, or LTIP, which the Company adopted in 2015 and which replaced its previous Restricted Stock Plan, or RSP. The objectives under the LTICP are established at the beginning of a performance cycle and are intended to focus management on longer-term strategic goals. The Compensation Committee of the Board of Directors designates participants in the LTICP and LTIP and determines the equity-based award opportunity in the form of restricted stock for each performance cycle, which is generally measured on the basis of a one year performance period (the measurement period). The restricted shares are considered issued and outstanding when the number of shares becomes fixed, after the annual performance is determined, and such awards vest at the end of the performance year or some predetermined period thereafter. The Company recognizes compensation expense with an offsetting credit to additional paid-in-capital over the performance period based on the fair value of the award at the date of grant, with compensation expense being adjusted cumulatively based on the number of shares expected to be earned according to the level of achievement of performance goals. Fair Value Option The Company has not elected to measure its financial instruments or certain commitments at fair value. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" (Topic 606). This guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this ASU effective January 1, 2018, utilizing the modified retrospective transition approach upon adoption. This approach required an adjustment upon adoption to the financial statements to reflect the cumulative impact of the guidance and results in no change to prior period financial statements. The guidance in this update was applied to all contracts that were not completed at the date of adoption. Based on the evaluation of the provisions included in the new guidance, along with the related updates discussed below, the adoption of this standard resulted in a cumulative-effect adjustment directly to retained earnings of $0.5 million as of January 1, 2018. The adoption of this guidance did not materially impact the amount or timing of revenues recognized in the consolidated financial statements or materially affect our financial position. See Note 3 . Revenue Recognition for further discussion. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification." The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance was effective for annual reporting periods beginning after December 15, 2018, and interim periods thereafter. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842) - Targeted Improvements," providing companies with the option to adopt the provisions of the standard prospectively without adjusting comparative periods; the Company has elected this option for transition and adopted the standard on January 1, 2019. The Company adopted the transition package of practical expedients permitted within the new standard, which among other things, allows the Company to carryforward historical lease classifications. In addition, the Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company made an accounting policy election that will keep leases with an initial term of 12 months or less off of the balance sheet and will result in recognition of those lease payments in the consolidated statements of income on a straight-line basis over the lease term. The impact of the adoption of this standard to the consolidated balance sheets resulted in approximately $25 million in right-of-use assets and corresponding lease obligation liabilities of approximately $27 million as of January 1, 2019. Adoption resulted in an immaterial cumulative-effect adjustment to the opening balance of retained earnings and did not materially impact the consolidated statements of income. Additionally, the adoption of the new lease standard did not have an impact on the Company's debt covenant compliance under its current debt and indenture agreements. In March, April and May 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," and ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," which provide supplemental adoption guidance and clarification to ASU 2014-09. ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company adopted these updates effective January 1, 2018 and adoption of these updates did not materially affect our financial position or materially impact the amount or timing of revenues recognized in the consolidated financial statements, as discussed above. See Note 3 . Revenue Recognition for further discussion. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 718): Intra-Entity Transfers of Assets Other Than Inventory." This standard states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, thus eliminating the exception for an intra-entity transfer of an asset other than inventory. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company adopted this ASU effective January 1, 2018, utilizing the modified retrospective basis transition approach upon adoption. The adoption of this guidance resulted in a cumulative-effect adjustment directly to retained earnings of $2.2 million as of January 1, 2018. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The guidance clarifies the definition of a business with the objective of assisting entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. The new update is effective for annual periods beginning after December 15, 2017. The Company adopted this guidance as of January 1, 2018. Adoption of ASU 2017-01 did not have an impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendment eliminates the second step of the analysis that required the measurement of a goodwill impairment by comparing the implied value of a reporting unit’s goodwill and the goodwill’s carrying amount. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendment requires an employer to report the service cost component in the same line item or line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal from operations. This guidance is effective for annual periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018, utilizing the retrospective transition approach upon adoption. The adoption of this guidance resulted in a reclassification of the components of net periodic pension cost, other than service cost, from Cost of products sold and General expense to Other (expense) income, net, in the Consolidated Statements of Income. The reclassification of these costs affects only the EP segment, as there are no pension costs associated with the AMS segment. For the year ended December 31, 2017, $3.6 million in pension expense were reclassified from Operating profit to Other expense in the consolidated statement of income for the 2017 comparative period. The adoption of this guidance had no effect on Net income in the Consolidated Statements of Income and no effect on the other consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting." This amendment clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company adopted this guidance as of January 1, 2018. Adoption of ASU 2017-09 did not have a material impact on the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This amendment better aligns an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. Early application is permitted and should be applied to hedging relationships existing on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The Company elected to early adopt this guidance as of January 1, 2018. Refer to Note 16 . Derivatives for additional information regarding the impact of adoption of this standard on the Company's financial statements. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This ASU was issued following the enactment of the Tax Act. This A |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied, which generally occurs when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Generally, the Company considers collectability of amounts due under a contract to be probable upon inception of a sale based on an evaluation of the credit worthiness of each customer. If collectability is not considered to be probable, the Company defers recognition of revenue on satisfied performance obligations until the uncertainty is resolved. Any variable consideration, such as discounts or price concessions, is set forth in the terms of the contract at inception and is included in the assessment of the transaction price at the outset of the arrangement. The transaction price is allocated to the individual performance obligations due under the contract based on the relative stand-alone fair value of the performance obligations identified in the contract. The Company typically uses an observable price to determine the stand-alone selling price for separate performance obligations. The Company does not typically include extended payment terms or significant financing components in our contracts with customers. Certain product sales contracts may include cash-based incentives (volume rebates or credits), which are accounted for as variable consideration. We estimate these amounts at least quarterly based on the expected forecast quantities to be provided to customers and reduce revenues recognized accordingly. Incidental items that are immaterial in the context of the contract are recognized as expense in the period incurred. The Company generally expenses sales commissions when incurred because the amortization period is one year or less. These costs are recorded within sales and marketing expenses. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. As a practical expedient, the Company treats shipping and handling activities that occur after control of the good transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation. Following is the Company’s net sales disaggregated by revenue source ($ in millions). Sales and usage-based taxes are excluded from net sales. For the Years Ended December 31, 2019 2018 2017 AMS EP Total AMS EP Total AMS EP Total Product revenues $ 462.8 $ 484.2 $ 947.0 $ 455.5 $ 500.1 $ 955.6 $ 419.5 $ 464.7 $ 884.2 Materials conversion revenues 8.9 56.4 65.3 8.4 68.2 76.6 11.4 79.3 90.7 Other revenues 5.5 5.0 10.5 4.0 5.1 9.1 2.3 4.9 7.2 Total revenues (1) $ 477.2 $ 545.6 $ 1,022.8 $ 467.9 $ 573.4 $ 1,041.3 $ 433.2 $ 548.9 $ 982.1 (1) Revenues include net hedging gains and losses for the years ended December 31, 2019 , 2018 and 2017 . Net sales are attributed to the following geographic locations based on the location of the Company’s direct customers ($ in millions): For the Years Ended December 31, 2019 2018 2017 AMS EP Total AMS EP Total AMS EP Total United States $ 331.3 $ 182.8 $ 514.1 $ 320.1 $ 193.3 $ 513.4 $ 292.7 $ 176.2 $ 468.9 Europe and the former Commonwealth of Independent States 45.8 172.6 218.4 46.2 214.6 260.8 51.6 208.3 259.9 Asia/Pacific (including China) 77.6 95.0 172.6 76.6 82.8 159.4 66.1 82.3 148.4 Latin America 7.6 45.6 53.2 10.0 43.5 53.5 9.4 48.5 57.9 Other foreign countries 14.9 49.6 64.5 15.0 39.2 54.2 13.4 33.6 47.0 Total revenues (1) $ 477.2 $ 545.6 $ 1,022.8 $ 467.9 $ 573.4 $ 1,041.3 $ 433.2 $ 548.9 $ 982.1 (1) Revenues include net hedging gains and losses for the years ended December 31, 2019 , 2018 and 2017 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted the guidance contained in ASC 842, Leases, on January 1, 2019 using the modified retrospective approach permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new leases standard at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019. The comparative period presented in the consolidated financial statements for 2018 continue to be presented in accordance with previous GAAP as codified in ASC 840, Leases. The Company leases certain office space, warehouses, manufacturing facilities, land, and equipment. The Company elected the practical expedient which allows that leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases without lease terms (i.e. month-to-month leases), lease expense is recognized as incurred and no asset or liability is recorded for these leases. The Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from non-lease components (e.g., common-area maintenance costs). Most leases include one or more options to renew, with renewal terms that can extend the lease term. The exercise of lease renewal options is at our sole discretion. Lease assets and liabilities are determined based on the lease term including those periods for which renewal options are considered reasonably certain to be exercised. Certain leases also include options to purchase the leased property, although we are unlikely to do so in most cases. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Components of right-of-use assets and lease liabilities presented in the balance sheet are as follows ($ in million): Assets Classification December 31, 2019 Operating lease right-of-use assets Other assets $ 20.9 Finance lease right-of-use assets Property, plant and equipment, net 2.9 Total right of use assets $ 23.8 Liabilities Classification December 31, 2019 Current operating lease obligation Accrued expenses and other current liabilities $ 4.9 Long-term operating lease obligation Other liabilities 17.2 Total operating lease obligation $ 22.1 Current finance lease obligation Current debt $ 0.4 Long-term finance lease obligation Long-term debt 2.8 Total finance lease obligation $ 3.2 December 31, 2019 Assets Finance Operating Total Land and improvements $ — $ 0.1 $ 0.1 Buildings and improvements 2.9 21.8 24.7 Machinery and equipment 0.7 4.5 5.2 Gross property, plant and equipment 3.6 26.4 30.0 Less: Accumulated depreciation (0.7 ) (5.5 ) (6.2 ) Right-of-use assets $ 2.9 $ 20.9 $ 23.8 Components of lease expense incurred by the Company are as follow ($ in millions): Lease Cost Year Ended December 31, 2019 Finance lease cost (cost resulting from lease payments) Interest expense on lease liabilities $ 0.2 Amortization of right-of-use assets 0.4 Operating lease cost 6.2 Short-term lease expense 0.3 Variable lease expense — Sublease income — Total Lease Cost $ 7.1 The following table represents future contractual lease liabilities for the next five years and thereafter for finance and operating leases ($ in millions): Maturity of Lease Liabilities Finance Operating Total 2020 $ 0.6 6.2 $ 6.8 2021 0.6 5.2 5.8 2022 0.5 4.0 4.5 2023 0.5 2.8 3.3 2024 0.5 2.3 2.8 Thereafter 1.4 7.0 8.4 Total Lease Payments $ 4.1 $ 27.5 $ 31.6 Less: Interest 0.9 5.4 6.3 Present Value of Lease Liabilities $ 3.2 $ 22.1 $ 25.3 Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.7 Finance leases 7.3 Weighted-average discount rate Operating leases 6.49 % Finance leases 5.27 % Other Information (millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 6.3 Operating cash flows from finance leases 0.3 Financing cash flows from finance leases 0.2 Leased assets obtained in exchange for new finance lease liabilities 0.6 Leased assets obtained in exchange for new operating lease liabilities 3.3 Future minimum obligations under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 2018 were as follows ($ in millions): 2019 $ 5.8 2020 5.0 2021 4.4 2022 3.6 2023 3.0 Thereafter 8.1 Total $ 29.9 Rental expense under operating leases was $6.7 million during 2018 and $6.4 million during 2017 |
Leases | Leases The Company adopted the guidance contained in ASC 842, Leases, on January 1, 2019 using the modified retrospective approach permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new leases standard at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings as of January 1, 2019. The comparative period presented in the consolidated financial statements for 2018 continue to be presented in accordance with previous GAAP as codified in ASC 840, Leases. The Company leases certain office space, warehouses, manufacturing facilities, land, and equipment. The Company elected the practical expedient which allows that leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases without lease terms (i.e. month-to-month leases), lease expense is recognized as incurred and no asset or liability is recorded for these leases. The Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from non-lease components (e.g., common-area maintenance costs). Most leases include one or more options to renew, with renewal terms that can extend the lease term. The exercise of lease renewal options is at our sole discretion. Lease assets and liabilities are determined based on the lease term including those periods for which renewal options are considered reasonably certain to be exercised. Certain leases also include options to purchase the leased property, although we are unlikely to do so in most cases. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Components of right-of-use assets and lease liabilities presented in the balance sheet are as follows ($ in million): Assets Classification December 31, 2019 Operating lease right-of-use assets Other assets $ 20.9 Finance lease right-of-use assets Property, plant and equipment, net 2.9 Total right of use assets $ 23.8 Liabilities Classification December 31, 2019 Current operating lease obligation Accrued expenses and other current liabilities $ 4.9 Long-term operating lease obligation Other liabilities 17.2 Total operating lease obligation $ 22.1 Current finance lease obligation Current debt $ 0.4 Long-term finance lease obligation Long-term debt 2.8 Total finance lease obligation $ 3.2 December 31, 2019 Assets Finance Operating Total Land and improvements $ — $ 0.1 $ 0.1 Buildings and improvements 2.9 21.8 24.7 Machinery and equipment 0.7 4.5 5.2 Gross property, plant and equipment 3.6 26.4 30.0 Less: Accumulated depreciation (0.7 ) (5.5 ) (6.2 ) Right-of-use assets $ 2.9 $ 20.9 $ 23.8 Components of lease expense incurred by the Company are as follow ($ in millions): Lease Cost Year Ended December 31, 2019 Finance lease cost (cost resulting from lease payments) Interest expense on lease liabilities $ 0.2 Amortization of right-of-use assets 0.4 Operating lease cost 6.2 Short-term lease expense 0.3 Variable lease expense — Sublease income — Total Lease Cost $ 7.1 The following table represents future contractual lease liabilities for the next five years and thereafter for finance and operating leases ($ in millions): Maturity of Lease Liabilities Finance Operating Total 2020 $ 0.6 6.2 $ 6.8 2021 0.6 5.2 5.8 2022 0.5 4.0 4.5 2023 0.5 2.8 3.3 2024 0.5 2.3 2.8 Thereafter 1.4 7.0 8.4 Total Lease Payments $ 4.1 $ 27.5 $ 31.6 Less: Interest 0.9 5.4 6.3 Present Value of Lease Liabilities $ 3.2 $ 22.1 $ 25.3 Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.7 Finance leases 7.3 Weighted-average discount rate Operating leases 6.49 % Finance leases 5.27 % Other Information (millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 6.3 Operating cash flows from finance leases 0.3 Financing cash flows from finance leases 0.2 Leased assets obtained in exchange for new finance lease liabilities 0.6 Leased assets obtained in exchange for new operating lease liabilities 3.3 Future minimum obligations under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 2018 were as follows ($ in millions): 2019 $ 5.8 2020 5.0 2021 4.4 2022 3.6 2023 3.0 Thereafter 8.1 Total $ 29.9 Rental expense under operating leases was $6.7 million during 2018 and $6.4 million during 2017 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On January 20, 2017, the Company completed the acquisition of Conwed pursuant to the Equity Interest Purchase Agreement, dated as of December 14, 2016, by and among the Company, Delstar Technologies, Inc., Baldwin Enterprises, Inc., Conwed and Leucadia National Corporation. As a result of the transaction, Conwed and its subsidiaries became wholly-owned indirect subsidiaries of the Company. The acquisition of Conwed expanded and continued the diversification of SWM's global presence in advanced materials and has been integrated into the Company's AMS segment. The consideration transferred to acquire Conwed was $295.0 million in cash, subject to certain customary post-closing adjustments, plus three potential earn-out payments not to exceed $40.0 million in the aggregate, which payments are contingent upon the achievement of certain financial metrics in each of 2019, 2020 and 2021, in each case, upon the terms and subject to the conditions contained in the Purchase Agreement. The estimated fair value of the potential earn-out payments at the acquisition date was $8.6 million , for total consideration transferred of $303.6 million . The estimated fair value of the deferred contingent consideration was determined based on management's projections related to the achievement of certain financial metrics for the aforementioned years. The discount rate used to value the liability was based on specific business risk, cost of capital and other factors. The fair value of the contingent consideration was determined using significant unobservable inputs and is considered a Level 3 liability. The liability associated with the contingent consideration is remeasured each quarter subsequent to the acquisition date, taking into consideration the changes in management's projections related to the achievement of certain financial metrics related to the contingent consideration. The liability will continue to be remeasured each quarter until either the agreement has expired or the contingency is resolved. Any changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within Other (expense) income, net, in the Consolidated Statements of Income during the period in which the change occurs. As of December 31, 2017, the fair value of the contingent liability was $9.5 million . During the year ended December 31, 2018, the fair value of the contingent liability had increased to $10.2 million , including $0.7 million in accretion year-to-date. Upon review of management's projections and estimates through December 31, 2021, the Company determined that the contingent payments were no longer probable, such that the fair value of the contingent consideration was reduced to $0.0 million as of December 31, 2018, resulting in a $10.2 million gain recognized in Other (expense) income, net. No amounts were paid during the year of 2019, and the fair value of the contingent consideration remains at $0.0 million as of December 31, 2019. The purchase price for Conwed was funded from the Company’s borrowings under the First Amendment to Second Amended and Restated Credit Agreement, while the purchase price for Conwed NV was funded from cash on hand. See Note 15 . Debt, for additional information. The consideration paid for Conwed and the final fair values of the assets acquired and liabilities assumed as of the January 20, 2017 acquisition date were as follows ($ in millions): Fair Value as of January 20, 2017 Cash and cash equivalents $ 3.3 Accounts receivable 15.4 Inventory 20.6 Other current assets 1.1 Property, plant and equipment 31.7 Identifiable intangible assets 134.4 Total assets 206.5 Accounts payable 8.2 Deferred tax liabilities 0.9 Net assets acquired 197.4 Goodwill 106.2 Total consideration $ 303.6 The Company used the income, market, or cost approach (or a combination thereof) for the valuation as appropriate, and used valuation inputs in these models and analyses that were based on market participant assumptions. Market participants are considered to be buyers and sellers in the principal or most advantageous market for the asset or liability. For certain items, the carrying amount was determined to be a reasonable approximation of fair value based on information available to SWM management. The fair value of receivables acquired from Conwed on January 20, 2017 was $15.4 million , with gross contractual amounts receivable of $15.8 million . Acquired inventories and property, plant and equipment were recorded at their fair values. Acquired intangible assets are primarily customer relationships, developed technology, trade names and non-competition agreements. The fair value of the inventory acquired from Conwed on January 20, 2017 was $20.6 million , which included a step-up in basis of $2.9 million . Finished goods and work-in-process inventory was valued using the comparative sales method, which is a function of the estimated selling price less the sum of (a) any cost to complete, (b) costs of disposal, (c) holding costs and (d) a reasonable profit for allowance for the acquirer. Raw materials were valued using the replacement cost method of the cost approach. Properties acquired included manufacturing and related facilities, land and leased sites that include leasehold improvements, and machinery and equipment for use in manufacturing operations. Management valued properties using the market and cost approaches, supported where available by observable market data which included consideration of obsolescence. Intangible assets acquired included a number of customer relationships in the infrastructure, construction and industrial end-markets. In addition to these intangible assets, the Company acquired a number of patented and unpatented technologies, a number of business-to-business trade names and non-competition agreements. Management valued intangible assets using the relief from royalty, multi-period excess earnings and with-and-without methods, all forms of the income approach supported by observable market data for peer companies. The following table shows the fair values assigned to intangible assets ($ in millions): Fair Value as of January 20, 2017 Weighted-Average Amortization Period (Years) Amortizable intangible assets: Customer relationships $ 108.0 15.0 Developed technology 18.1 17.2 Non-competition agreements 1.2 7.2 Total amortizable intangible assets 127.3 Indefinite-lived intangible assets: Trade names 7.1 Indefinite Total $ 134.4 In connection with the acquisition, the Company recorded goodwill, which represents the excess of the consideration transferred over the fair value of tangible and intangible assets acquired, net of liabilities assumed. The goodwill is attributed primarily to Conwed's revenue growth and potential operational synergies from combining the SWM and Conwed businesses and workforces as well as the benefits of access to different markets and customers. Goodwill from the Conwed acquisition was assigned to the AMS reportable segment. The goodwill was determined on the basis of the fair values of the assets and liabilities identified as part of the transaction. The goodwill acquired in connection with Conwed and its domestic subsidiaries is expected to be deductible for tax purposes. The goodwill associated with Conwed NV is not expected to be deductible for tax purposes. For the years ended December 31, 2019, 2018 and 2017, the Company recognized $0.0 million , $0.0 million and $0.2 million , respectively, in direct and indirect acquisition-related costs for the Conwed acquisition. For the year ended December 31, 2017, the Company incurred $0.6 million in financing costs related to the acquisition. Direct and indirect acquisition-related costs were expensed as incurred and are included in the General expense line item in the consolidated statements of income. Financing costs related to expanding the Amended Credit Agreement (as defined below) have been capitalized and will be amortized in Interest expense over the life of the Amended Credit Agreement. The amounts of Net sales and Income from continuing operations of Conwed included in the Company's consolidated income statement from the acquisition date are as follows ($ in millions): Net Sales Income from Continuing Operations January 21, 2017 - December 31, 2017 $ 141.3 $ 11.9 The amounts of the unaudited pro forma Net sales and Income from continuing operations of the combined entity had the acquisition date been January 1, 2017 are as follows ($ in millions): Net Sales Income from Continuing Operations 2017 Supplemental Pro Forma from January 1, 2017 - December 31, 2017 $ 989.8 $ 31.1 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations The Company's former paper plant in San Pedro, Philippines has been reported as discontinued operations since 2013. This operation was previously presented as a component of the EP segment. Included in Other Assets and Accrued Expenses within the Consolidated Balance Sheets were the following major classes of assets and liabilities, respectively, associated with the discontinued operations ($ in millions): December 31, 2019 December 31, 2018 Assets of discontinued operations: Current assets $ 0.8 $ 0.8 Other assets 1.2 1.2 Liabilities of discontinued operations: Current liabilities 0.1 0.1 Summary financial results of discontinued operations were as follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Net sales $ — $ — $ — Other (expense) income — (0.3 ) 0.1 (Loss) gain from discontinued operations before income taxes — (0.3 ) 0.1 Income tax (provision) benefit — — — (Loss) gain from discontinued operations $ — $ (0.3 ) $ 0.1 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net are summarized as follows ($ in millions): December 31, 2019 2018 Trade receivables $ 114.6 $ 130.9 Business tax credits, including VAT 5.2 4.0 Hedge contracts receivable 4.9 2.1 Other receivables 20.0 19.3 Less allowance for doubtful accounts and sales discounts (1.5 ) (1.7 ) Total accounts receivable, net $ 143.2 $ 154.6 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost (using the First-In, First-Out and weighted average methods) or market. The Company's costs included in inventory primarily include resins, pulp, chemicals, direct labor, utilities, maintenance, depreciation, finishing supplies and an allocation of certain overhead costs. Machine start-up costs or abnormal machine shut downs are expensed in the period incurred and are not reflected in inventory. The definition of market value, with respect to all inventories, is net realizable value. The Company reviews inventories at least quarterly to determine the necessity of write-offs for excess, obsolete or unsalable inventory. The Company estimates write-offs for inventory obsolescence and shrinkage based on its judgment of future realization. These reviews require the Company to assess customer and market demand. During the year of 2019, 2018 and 2017 there were no material inventory write-offs. The following schedule details inventories by major class ($ in millions): December 31, 2019 2018 Raw materials $ 61.1 $ 50.2 Work in process 20.7 22.4 Finished goods 65.3 69.9 Supplies and other 14.3 9.0 Total $ 161.4 $ 151.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Interest is capitalized as a component of the cost of construction for large projects. Expenditures for betterments are capitalized whereas normal repairs and maintenance are expensed as incurred. Property, other than land, is depreciated on a straight-line basis for financial reporting purposes. When property is sold or retired, the cost of the property and the related accumulated depreciation are removed from the balance sheet, and any gain or loss on the transaction is normally included in cost of products sold. Property, plant and equipment (and related depreciable lives) consisted of the following ($ in millions): December 31, 2019 2018 Land and improvements $ 14.8 $ 15.0 Buildings and improvements (20 to 40 years or remaining life of relevant lease) 142.3 142.0 Machinery and equipment (5 to 20 years) 622.6 620.9 Construction in progress 24.0 14.6 Gross property, plant and equipment 803.7 792.5 Less: Accumulated depreciation 473.4 452.2 Property, plant and equipment, net $ 330.3 $ 340.3 Depreciation expense was $35.8 million , $38.1 million and $35.7 million for the years ended December 31, 2019 , 2018 , and 2017 |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | Joint Ventures The Company has two joint ventures with China National Tobacco Corporation, or CNTC. CNTC is the principal operating company under China’s State Tobacco Monopoly Administration. CNTC and the Company’s subsidiary, Schweitzer-Mauduit International China, Limited, or SM-China, each own 50% of each of the joint ventures. The paper joint venture China Tobacco Mauduit (Jiangmen) Paper Industry Co. LTD, or CTM, produces tobacco-related papers in China. The second joint venture China Tobacco Schweitzer (Yunnan) Reconstituted Tobacco Co. LTD, or CTS, produces reconstituted tobacco leaf products. The joint ventures pay to each the Company and CNTC sales-based royalties and management fees, of which SWM recognized $2.1 million , $2.2 million and $2.1 million in 2019 , 2018 and 2017 , respectively, in Other (expense) income, net in the consolidated statements of income. The Company uses the equity method to account for its ownership interest in both joint ventures. At December 31, 2019 and 2018 , the Company’s equity investment in joint ventures was $52.4 million and $51.9 million , respectively. The Company’s share of the net income (loss) was included in Income (loss) from equity affiliates, net of income taxes within the consolidated statements of income. We evaluate our equity method investments for impairment when events or changes in circumstances indicate, in our judgment, that the carrying value of such investment may have experienced an other than temporary decline in value. When evidence of loss in value has occurred, we compare the estimated fair value of the investment to the carrying value of the investment to determine whether impairment has occurred. We assess the fair value of our equity method investment using commonly accepted techniques, and may use more than one method, including, but not limited to, internally developed analysis and analysis of external data. If the estimated fair value is less than the carrying value and we consider the decline in value to be other than temporary, the excess of the carrying value over the estimated fair value is recognized in the consolidated financial statements as an impairment. As a result of declining sales, negative developments during the fourth quarter of 2018, and the current and forecasted production volumes compared to normal capacity, the Company performed an impairment analysis at December 31, 2018 and recorded a $15.0 million impairment charge within Income (loss) from equity affiliates, net of income taxes, in the consolidated statements of income. The fair value of the CTS joint venture was estimated using Level 3 inputs under the fair value hierarchy using a discounted cash flow method based on management’s best estimates of future operating results. These estimates and judgments are based, in part, on the Company’s current and future evaluation of economic conditions in general, as well as CTS’ current and future plans. These fair value calculations are highly subjective because they require management to make assumptions and apply judgments to estimates regarding the timing and amount of future cash flows, probabilities related to various cash flow scenarios, and appropriate discount rates based on the perceived risks, among others. In evaluating whether the impairment is other than temporary, the Company considered all available information, including the length of time and extent of the impairment, the financial condition and near-term prospects of the CTS joint venture, the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value, and projected industry and economic trends, among others. Changes in these and other assumptions could affect the projected operational results and fair value of the CTS joint venture, and accordingly, may require future valuation adjustments to the Company’s investment that may materially impact the Company’s financial condition or its future operating results. Below is summarized balance sheet information of the China joint ventures as of December 31, 2019 and 2018 ($ in millions): December 31, 2019 2018 Current assets $ 99.4 $ 116.7 Noncurrent assets 168.0 183.6 Current liabilities 43.1 65.3 Long-term liabilities 88.4 100.9 Stockholder's equity 135.9 134.1 Below is summarized statement of operations information of the China joint ventures for the years ended December 31, 2019 , 2018 and 2017 ($ in millions): For the Years Ended December 31, 2019 2018 2017 Net sales $ 103.5 $ 109.7 $ 105.0 Gross profit 32.2 33.4 29.1 Net income 8.3 7.4 4.9 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company evaluates goodwill for impairment at least annually during the fourth quarter. The annual tests during the fourth quarters of 2019 , 2018 and 2017 resulted in no impairment. Each of the Company's two reportable segments, AMS and EP, have goodwill. There are no accumulated impairment losses in the AMS segment as of December 31, 2019 . The EP segment has recorded $2.7 million in accumulated impairment losses in previous years. The changes in the carrying amount of goodwill for each reportable segment were as follows ($ in millions): Advanced Materials & Structures Engineered Papers Total Goodwill as of December 31, 2017 $ 336.1 $ 5.2 $ 341.3 Foreign currency translation adjustments (3.0 ) (0.2 ) (3.2 ) Goodwill as of December 31, 2018 $ 333.1 $ 5.0 $ 338.1 Foreign currency translation adjustments (0.6 ) (0.1 ) (0.7 ) Goodwill as of December 31, 2019 $ 332.5 $ 4.9 $ 337.4 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): December 31, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 67.7 $ — $ 1.8 $ 206.8 Developed technology 34.0 10.9 — 0.4 22.7 Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 2.2 — — 0.7 Patents 1.5 0.4 — — 1.1 Total $ 336.5 $ 82.0 $ 20.7 $ 2.5 $ 231.3 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ 0.1 $ — $ 19.9 December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 50.4 $ — $ 0.7 $ 225.2 Developed technology 34.0 8.5 — 0.2 25.3 Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 1.7 — — 1.2 Patents 1.5 0.4 — — 1.1 Total $ 336.5 $ 61.8 $ 20.7 $ 1.2 $ 252.8 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ 0.1 $ (0.1 ) $ 20.0 Amortization expense of intangible assets was $20.3 million , $20.7 million and $20.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Finite-lived intangibles in the AMS segment are expensed using the straight-line amortization method. In our AMS segment, the Company made a strategic decision to transition away from certain legacy business trade names associated with its recent acquisitions in favor of a streamlined SWM branding approach. As a result of adopting this branding strategy, in the fourth quarter of 2016, the Company recognized an impairment expense of $20.7 million , representing a write-down of the DelStar trade name intangible asset to its fair market value, leaving a remaining balance of $0.8 million , which was fully amortized over the first six months of 2017, as the DelStar trade name was phased out. The following table shows the estimated aggregate amortization expense for the next five years ($ in millions): For the year ending December 31, Estimated Amortization Expense 2020 $ 19.9 2021 19.9 2022 19.9 2023 19.6 2024 19.2 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following ($ in millions): December 31, 2019 2018 Capitalized software costs, net of accumulated amortization $ 11.9 $ 8.3 Business tax credits, including VAT and ICMS (net of $12.1 million and $11.5 million reserve as of December 31, 2019 and 2018, respectively) — 1.2 Grantor trust assets 14.7 10.9 Net pension assets 5.9 0.8 Long-term supplies inventory 6.9 6.8 Operating lease assets 20.9 — Other assets 8.9 5.9 Total $ 69.2 $ 33.9 The Company's ICMS credits in Brazil are fully reserved. These credits do not expire. The Company is exploring other actions to utilize the credits. Charges and credits associated with normal ongoing activity are included in Cost of products sold in the Consolidated Statements of Income. Future material changes as a result of new legislation or a change in our operations will be reported separately. |
Restructuring and Impairment Ac
Restructuring and Impairment Activities | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Activities | Restructuring and Impairment Activities The Company incurred restructuring and impairment expenses of $3.7 million , $1.7 million and $8.1 million in the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company incurred $1.1 million , $1.5 million and $2.7 million in restructuring and impairment expenses during the years ended December 31, 2019 , 2018 and 2017 , respectively, within the AMS segment. Restructuring and impairment expense for the year ended December 31, 2019 consisted of $1.1 million in impairment charges at our U.S. and Chinese manufacturing facilities. Restructuring and impairment expense for the year ended December 31, 2018 consisted of $1.1 million in severance accruals for employees at our U.S. manufacturing operations, as well as $0.4 million in impairment charges at our U.S. manufacturing facilities. Restructuring and impairment expense for the year ended December 31, 2017 consisted of $2.6 million in severance accruals for employees at our U.S. and Belgium manufacturing operations, as well as $0.1 million in impairment charges at one of our U.S. manufacturing facilities. In the EP segment, restructuring and impairment expenses were $2.6 million , $0.2 million and $5.3 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. During 2019, restructuring and impairment expenses in the EP segment consisted of $2.6 million in severance accruals for employees at our manufacturing facilities in the U.S., Brazil and France. During 2018, restructuring and impairment expenses in the EP segment consisted of $0.2 million in severance accruals for employees at our manufacturing facilities in France. In 2017, restructuring and impairment expenses in the EP segment consisted of $0.8 million in severance accruals for employees at our manufacturing facilities in the U.S. and France, as well as an impairment charge of $4.0 million at our Philippines RTL location, and impairment charges totaling $0.5 million at our French and United States manufacturing facilities. Additionally, the Company incurred $0.0 million , $0.0 million , and $0.1 million in 2019 , 2018 , and 2017 , respectively, in restructuring expenses related to accruals for severance expenses within supporting overhead departments which were not allocated to a specific segment. Restructuring liabilities were classified within Accrued expenses in each of the Consolidated Balance Sheets as of December 31, 2019 and 2018 . Changes in the restructuring liabilities, substantially all of which are employee-related, are summarized as follows ($ in millions): 2019 2018 Balance at beginning of year $ 1.4 $ 1.7 Accruals for announced programs 3.7 1.3 Cash payments (4.2 ) (3.3 ) Other (0.4 ) 1.8 Exchange rate impacts — (0.1 ) Balance at end of period $ 0.5 $ 1.4 Long-lived assets to be sold are classified as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the assets; the assets are available for immediate sale in present condition subject only to terms that are usual and customary for sales of such assets; an active program to locate a buyer and other actions required to complete the plan to sell the assets has been initiated; the sale of the assets is probable, and transfer of the assets is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the assets beyond one year; the assets are being actively marketed for sale at a price that is reasonable in relation to current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. The fair value of a long-lived asset less any costs to sell is assessed each reporting period it remains classified as held for sale and any reduction in fair value is reported as an adjustment to the carrying value of the asset. Upon being classified as held for sale, depreciation is ceased. Long-lived assets to be disposed of other than by sale are continued to be depreciated. Upon determining that a long-lived asset meets the criteria to be classified as held for sale, the assets and liabilities of the disposal group, if material, are reported in the line item "Assets held for sale" in our Consolidated Balance Sheets. In early 2015, the Company made the decision to dispose of the Company’s mothballed RTL facility and related equipment in the Philippines. These assets were included in the EP segment. Impairment charges of $4.0 million were recognized on these assets during the year ended December 31, 2017. There were no impairment charges related to these assets recorded during 2018 or 2019. The legal entity and its related assets were sold on December 18, 2019 for total consideration of $13.3 million , and the Company recorded a net gain of $0.3 million |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt, net of debt issuance costs, is summarized in the following table ($ in millions): December 31, December 31, Revolving credit agreement - U.S. dollar borrowings $ — $ 76.0 Term loan facility 197.5 199.5 6.875% senior unsecured notes due October 1, 2026, net of discount of $6.9 million and $7.6 million as of December 31, 2019 and December 31, 2018, respectively 343.1 342.4 French employee profit sharing 4.8 6.6 Finance lease obligations 1 3.2 4.7 Other — 0.1 Debt issuance costs (5.9 ) (7.2 ) Total debt 542.7 622.1 Less: Current debt (1.9 ) (3.3 ) Long-term debt $ 540.8 $ 618.8 1 The Company adopted the guidance contained in ASC 842, Leases, on January 1, 2019 using the modified retrospective approach permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements. The comparative period presented in the consolidated financial statements for 2018 continue to be presented in accordance with previous GAAP as codified in ASC 840, Leases. 2018 lease obligations in the above table were long-term capital leases obligations. Credit Facility On September 25, 2018, the Company entered into a $700.0 million credit agreement (the “Credit Agreement”), which replaced the Company’s previous senior secured credit facilities and provides for a five -year $500.0 million revolving line of credit (the “Revolving Credit Facility”) and a seven -year $200.0 million bank term loan facility (the “Term Loan Facility”). Subject to certain conditions, including the absence of a default or event of default under the Credit Agreement, the Company may request incremental loans to be extended under the Revolving Credit Facility or the Term Loan Facility so long as the Company is in pro forma compliance with the financial covenants set forth in the Credit Agreement and the aggregate of such increases does not exceed $400.0 million . Borrowings under the Revolving Credit Facility will initially bear interest, at the Company’s option, at either (i) 1.75% in excess of a reserve adjusted London Interbank Offered Rate (“LIBOR”) or (ii) 0.75% in excess of an alternative base rate. Borrowings under the Term Loan Facility will initially bear interest, at the Company’s option, at either (i) 2.00% in excess of a reserve adjusted LIBOR rate or (ii) 1.00% in excess of an alternative base rate. The Term Loan amortizes at the rate of 1.0% per year and will mature on September 25, 2025. Under the terms of the Credit Agreement, the Company will be required to maintain certain financial ratios and comply with certain financial covenants, including maintaining a net debt to EBITDA ratio, as defined in the Credit Agreement, calculated on a trailing four fiscal quarter basis, not greater than 4.50 and an interest coverage ratio, also as defined in the Credit Agreement, of not less than 3.00 . In addition, borrowings and loans made under the Credit Agreement are secured by substantially all of the personal property of the Company and its domestic subsidiaries, while the obligations of the Luxembourg-based holding subsidiaries were secured by a pledge of certain of the equity interests held in their operating subsidiaries. The Company was in compliance with all of its covenants under the Credit Agreement at December 31, 2019 . Also on September 25, 2018, the Company borrowed approximately $91.0 million under the Revolving Credit Facility and $200.0 million under the Term Loan Facility. The Company utilized these borrowings under the Credit Agreement together with the net proceeds from the offering of the Senior Unsecured Notes discussed below to refinance all amounts outstanding under the Company’s Prior Credit Agreement and to pay related fees and expenses. As of December 31, 2019 , the average interest rate was 3.56% on outstanding Term Loan Facility borrowings. Indenture for 6.875% Senior Unsecured Notes Due 2026 On September 25, 2018, the Company closed a private offering of $350.0 million of 6.875% senior unsecured notes due 2026 (the “Notes”). The Notes were sold in a private placement in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended, pursuant to a purchase agreement between the Company, certain subsidiaries of the Company and J.P. Morgan Securities LLC, as representative of the initial purchasers. The Notes are guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly-owned subsidiaries that is a borrower under or that guarantees obligations under the Credit Agreement (as defined below) or that guarantees certain other indebtedness, subject to certain exceptions. The Notes were issued pursuant to an Indenture (the “Indenture”), dated as of September 25, 2018, by and among the Company, the guarantors listed therein and Wilmington Trust, National Association, as trustee. The Indenture provides that interest on the Notes will accrue from September 25, 2018 and is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2019, and the Notes mature on October 1, 2026. The Company may redeem some or all of the Notes at any time on or after October 1, 2021, at the redemption prices set forth in the Indenture, together with accrued and unpaid interest, if any, to, but excluding, the redemption date. Prior to October 1, 2021, the Company may redeem some or all of the Notes at a price equal to 100% of the principal amount thereof, plus a “make-whole” premium as set forth in the Indenture. The Company may redeem up to 35% of the original aggregate principal amount of the Notes on or prior to October 1, 2021 with the proceeds of certain equity offerings at a redemption price equal to 106.875% of the principal amount of the Notes. If the Company sells certain assets or consummates certain change of control transactions, the Company will be required to make an offer to repurchase the Notes, subject to certain conditions. The Indenture contains certain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to incur additional indebtedness, make certain dividends, repurchase Company stock or make other distributions, make certain investments, create liens, transfer or sell assets, merge or consolidate and enter into transactions with the Company’s affiliates. Such covenants are subject to a number of exceptions and qualifications set forth in the Indenture. The Indenture also contains certain customary events of default, including failure to make payments in respect of the principal amount of the Notes, failure to make payments of interest on the Notes when due and payable, failure to comply with certain covenants and agreements and certain events of bankruptcy or insolvency. The Company was in compliance with all of its covenants under the Indenture at December 31, 2019 . The effective interest rate on the 6.875% senior unsecured notes due 2026, taking into account all underwriter and original issue discounts, was 7.248% . French Employee Profit Sharing At both December 31, 2019 and 2018 , long-term debt other than the Amended Credit Agreement primarily consisted of obligations of the French operations related to government-mandated profit sharing. Each year, representatives of the workers at each of the French businesses can make an election for the profit sharing amounts from the most recent year ended to be invested in a financial institution or with their respective employer. To the extent that funds are invested with the Company, these amounts bear interest at 0.62% and 1.04% at December 31, 2019 and 2018 , respectively, and are generally payable in the fifth year subsequent to the year in which the profit sharing is accrued. Bank Overdrafts The Company also had bank overdraft facilities of $6.1 million and $6.1 million , at December 31, 2019 and 2018 , respectively, of which none was outstanding at eit her December 31, 2019 or 2018 . Interest is incurred on outstanding amounts at market rates and was 0.26% and 0.26% , respectively, at December 31, 2019 and 2018 . No commitment fees are paid on the unused portion of these facilities. Rate Swap Agreements From time to time, the Company enters into interest rate swap transactions to manage the Company's interest rate risk and cross-currency swaps designated as a hedge of a portion of the Company's net investment in certain Euro-denominated subsidiaries. See Note 16 . Derivatives for additional information. Principal Repayments Under the Credit Agreement, the Company selects an "interest period" for each of its borrowings from the Revolving Credit Facility. The Company can repay such borrowings and borrow again at a subsequent date if it chooses to do so, providing it flexibility and efficient use of any excess cash. The Company currently has the intent and ability to allow its debt balances to remain outstanding and expects to continue to file notices of continuation related to its borrowings outstanding at December 31, 2019 such that those amounts are not expected to be repaid prior to the September 2023 expiration of the Revolving Credit Facility. Following are the expected maturities for the Company's debt obligations as of December 31, 2019 ($ in millions): 2020 $ 2.8 2021 3.5 2022 3.5 2023 2.8 2024 2.1 Thereafter 537.5 Total * $ 552.2 * The expected maturities for the Company's debt obligations excludes finance lease obligations. Additional information regarding the future contractual lease liabilities for the next five years and thereafter for finance leases is included in Note 4. Leases, of the Notes to Consolidated Financial Statements. Fair Value of Debt At December 31, 2019 and 2018 , the fair market value of the Company's 6.875% senior unsecured notes was $378.3 million and $331.6 million , respectively. The fair market value for the senior unsecured notes was determined using quoted market prices, which are directly observable Level 1 inputs. The fair market value of all other debt as of December 31, 2019 and 2018 approximated the respective carrying amounts as the interest rates are variable and based on current market indices. Debt Issuance Costs In conjunction with the Indenture and Credit Agreement, the Company capitalized approximately $3.6 million in deferred debt issuance costs during the year ended December 31, 2018 which will be amortized over the term of the related debt instruments. Additionally, the Company wrote-off $0.5 million in deferred debt issuance costs related to the prior debt facilities. As of December 31, 2019 and 2018 , the Company's total deferred debt issuance costs, net of accumulated amortization, were $5.9 million and $7.2 million , respectively. Amortization expense of $1.2 million and $1.7 million was recorded during the years ended December 31, 2019 and 2018 , respectively, and has been included as a component of Interest expense in the accompanying Consolidated Statements of Income. Following is the expected future amortization of the Company's deferred debt issuance costs as of December 31, 2019 ($ in millions): 2020 $ 1.2 2021 1.2 2022 1.2 2023 1.0 2024 0.4 Thereafter 0.9 Total $ 5.9 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives In the normal course of business, the Company is exposed to foreign currency exchange rate risk and interest rate risk on its variable-rate debt. To manage these risks, the Company utilizes a variety of practices including, where considered appropriate, derivative instruments. The Company has no derivative instruments for trading or speculative purposes or any derivatives with credit risk-related contingent features. All derivative instruments used by the Company are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The fair values of the Company's derivative instruments are determined using observable inputs and are considered Level 2 assets or liabilities. The Company utilizes currency forward, swap and, to a lesser extent, option contracts to selectively hedge its exposure to foreign currency risk when it is practical and economical to do so. The use of these contracts minimizes transactional exposure to exchange rate changes. We designate certain of our foreign currency hedges as cash flow hedges. Changes in the fair value of cash flow hedges are reported as a component of other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. For foreign exchange contracts not designated as cash flow hedges, changes in the contracts' fair value are recorded to net income each period. The Company selectively hedges its exposure to interest rate increases on variable-rate, long-term debt when it is practical and economical to do so. Changes in the fair value of interest rate contracts considered cash flow hedges are reported as a component of Other comprehensive income (loss) and reclassified into earnings when the forecasted transaction affects earnings. On January 20, 2017, the Company entered into an interest rate swap transaction with a major financial institution for a three -year term on a notional amount of $315 million . The interest rate swap is intended to manage the Company's interest rate risk by fixing the interest rate on a portion of the Company's debt currently outstanding under its credit facility that was previously subject to a floating interest rate equal to 1-month LIBOR plus a credit spread. The swap provides for the Company to pay a fixed rate of 1.65% per annum in addition to the credit spread on such portion of its outstanding debt in exchange for receiving a variable interest rate based on 1-month LIBOR. On September 25, 2018, in conjunction with the debt refinancing discussed in Note 15 . Debt, the Company settled a notional amount of $130 million which resulted in a gain of $1.8 million as of the settlement date. This gain will be amortized on a ratable basis from Accumulated other comprehensive income into income as interest expense over the remaining term of the interest rate swap. On September 11, 2019, the Company terminated this interest rate swap. Concurrently, on September 11, 2019, the Company entered into a pay-fixed, receive-variable interest rate swap with a maturity date of January 31, 2027. The instrument is a hedge on a portion of the Company’s debt facility through the existing credit agreement. Under the terms of the interest rate swap, SWM will pay a fixed amount of interest each period in an amount equal to 1.724% on a notional amount of $185 million and receive interest payments monthly in an amount equal to the One-Month USD-LIBOR rate on the notional amount. The notional amount will reduce throughout the term of the swap as follows: • September 13, 2019 - December 31, 2020 $185 million notional • December 31, 2020 - December 31, 2021 $150 million notional • December 31, 2021 - January 31, 2027 $100 million notional As with the previous interest rate swap, the terms of the swap mirror the terms of the underlying debt, including timing of the payments and interest rates. On January 20, 2017, the Company also entered into a three -year cross-currency swap with a major financial institution designated as a hedge of a portion of the Company's net investment in certain Euro-denominated subsidiaries. The terms of the cross-currency swap provide for an exchange of principal on a notional amount of $100 million swapped to €93.7 million at maturity. The Company will receive from our swap counterparty U.S. dollar interest at a fixed rate of 1.65% per annum and pay to our swap counterparty Euro interest at a fixed rate of -0.18% per annum. On September 11, 2019, SWM entered into an offsetting swap with a major financial institution whose terms perfectly mirrored the January 20, 2017 swap and which economically offset the previous cross-currency swap. At the maturity date of the new swap and the previous swap, January 20, 2020, there will be no cash impact to the Company to settle these instruments as they will perfectly offset each other. On October 24, 2018, the Company also entered into a three -year cross-currency swap with a major financial institution designated as a hedge of a portion of the Company's net investment in certain Euro-denominated subsidiaries. The terms of the cross-currency swap provide for an exchange of principal on a notional amount of $75 million swapped to €65.4 million at maturity. The Company will receive from our swap counterparty U.S. dollar interest at a fixed rate of 6.875% per annum and pay to our swap counterparty Euro interest at a fixed rate of 3.6725% per annum. The cross-currency swap will mature on October 1, 2021. On January 29, 2019, the Company entered into a cross-currency swap with a major financial institution designated as a hedge of a portion of the Company's net investment in certain Euro-denominated subsidiaries. The terms of the cross-currency swap provide for an exchange of principal on a notional amount of $75 million swapped to €66.0 million at maturity. The Company will receive from our swap counterparty U.S. dollar interest at a fixed rate of 6.875% per annum and pay to our swap counterparty Euro interest at a fixed rate of 4.0525% per annum. The cross-currency swap will mature on October 1, 2021. On September 11, 2019, the Company entered into a cross-currency swap arrangement with a major financial institution designed as a hedge having a maturity date of April 1, 2023. The terms of the cross-currency swap provide for an exchange of principal on a notional amount of $100 million swapped to €90.9 million at maturity. Under the terms of the new cross-currency swap, SWM will pay a fixed amount of Euro-denominated interest at a rate of 5.638% semiannually and receive U.S. dollar denominated payments at a rate of 6.875% semiannually on the notional amount of the swap. The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2019 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedges: Foreign exchange contracts Accounts receivable $ 4.8 Accrued expenses $ 5.6 Foreign exchange contracts Other assets 6.3 Other liabilities 5.5 Interest rate contracts Accounts receivable — Accrued expenses 0.2 Interest rate contracts Other assets — Other liabilities — Total derivatives designated as hedges $ 11.1 $ 11.3 Derivatives not designated as hedges: Foreign exchange contracts Accounts receivable $ 0.1 Accounts payable $ — Total derivatives not designated as hedges 0.1 — Total derivatives $ 11.2 $ 11.3 The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2018 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedges: Foreign exchange contracts Accounts receivable $ 2.0 Accrued expenses $ 1.3 Foreign exchange contracts Other assets 1.0 Other liabilities 8.8 Interest rate contracts Other assets 1.8 Other liabilities — Total derivatives designated as hedges $ 4.8 $ 10.1 Derivatives not designated as hedges: Foreign exchange contracts Accounts Receivable 0.1 Accounts Payable — Total derivatives not designated as hedges 0.1 — Total derivatives $ 4.9 $ 10.1 The following table provides the gross effect that derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions): Derivatives Designated as Cash Flow Hedging Relationships Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, Location of Loss (Gain) Reclassified from AOCI Loss (Gain) Reclassified from AOCI, Net of Tax 2019 2018 2017 2019 2018 2017 Foreign exchange contracts $ (0.7 ) $ (1.7 ) $ 2.2 Net sales $ (1.2 ) $ 0.8 $ 0.4 Foreign exchange contracts (2.3 ) 0.1 (0.6 ) Other income, net (1.9 ) 0.1 0.5 Interest rate contracts 4.6 4.0 0.4 Interest expense 7.6 2.8 (1.2 ) Total $ 1.6 $ 2.4 $ 2.0 $ 4.5 $ 3.7 $ (0.3 ) The Company's designated derivative instruments are highly effective. As such, related to the hedge ineffectiveness or amounts excluded from hedge effectiveness testing, there were no gains or losses recognized immediately in income for the years ended December 31, 2019 , 2018 or 2017 . In January 2018, the Company early adopted the guidance in ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." Upon adoption of this standard, the Company elected to de-designate the original hedging relationship of its pay-EUR, receive-USD cross currency swap and re-designate the cross currency swap with the terms based on the spot rate of the EUR. Prospectively, future changes in the components related to the spot change on the notional will be recorded in OCI and remain there until the hedged subsidiaries are substantially liquidated. Starting with the adoption date, all coupon payments will be recorded in earnings and the initial value of excluded components currently recorded in AOCI as an unrealized translation adjustment will be amortized into interest expense over the remaining 25 months of the swap, resulting in a positive impact to Net income. As of December 31, 2019 , the gain, net of taxes, recognized in Accumulated other comprehensive loss on the cross currency swap derivative was $0.5 million . For the year ended December 31, 2019 , $0.8 million was reclassified from Accumulated other comprehensive loss into income as interest expense and $1.1 million was recognized in income as derivative amounts excluded from effectiveness testing as Interest expense. The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions): Derivatives Not Designated as Cash Flow Hedging Instruments Amount of Gain / (Loss) Recognized in Other Income / Expense 2019 2018 2017 Foreign exchange contracts $ 1.1 $ (2.5 ) $ 2.7 Total $ 1.1 $ (2.5 ) $ 2.7 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following ($ in millions): December 31, 2019 2018 Accrued salaries, wages and employee benefits $ 46.1 $ 43.1 Other accrued expenses 40.4 29.8 Total $ 86.5 $ 72.9 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For financial reporting purposes, income before income taxes includes the following components ($ in millions): For the Years Ended December 31, 2019 2018 2017 United States $ 60.0 $ 55.8 $ 42.6 Foreign 36.9 61.0 58.9 Total $ 96.9 $ 116.8 $ 101.5 An analysis of the provision (benefit) for income taxes from continuing operations follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Current income taxes: U.S. federal $ 8.1 $ (9.2 ) $ 53.2 U.S. state 0.8 0.8 0.6 Foreign 9.7 11.6 14.2 18.6 3.2 68.0 Deferred income taxes: U.S. federal 2.3 3.6 (1.3 ) U.S. state (1.9 ) 1.4 2.9 Foreign (3.8 ) 2.5 — (3.4 ) 7.5 1.6 Total $ 15.2 $ 10.7 $ 69.6 A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Amount Percent Amount Percent Amount Percent Tax provision at U.S. statutory rate $ 20.3 21.0 % $ 24.5 21.0 % $ 35.6 35.0 % Foreign income tax rate differential 0.6 0.5 2.5 2.2 (3.3 ) (3.3 ) Income from passthrough entities 1.7 1.6 0.7 0.6 6.4 6.4 Global intangible low tax inclusion (0.1 ) (0.1 ) 7.0 6.0 — — Foreign derived intangible income (0.2 ) (0.2 ) (4.2 ) (3.6 ) — — State income tax, net of federal benefit (0.2 ) (0.2 ) 1.7 1.5 2.7 2.6 Adjustments to valuation allowances (3.7 ) (3.8 ) (2.5 ) (2.1 ) (2.8 ) (2.8 ) Transition tax (0.7 ) (0.6 ) (11.6 ) (10.0 ) 51.4 50.6 Other tax credits (2.0 ) (2.1 ) (2.6 ) (2.3 ) (2.3 ) (2.3 ) Foreign tax credits (3.5 ) (3.6 ) (5.1 ) (4.4 ) (9.2 ) (9.0 ) Other foreign operational taxes 2.9 3.0 3.1 2.7 4.2 4.2 Domestic production deduction — — — — (2.4 ) (2.3 ) Remeasurement of deferred taxes due to tax law 0.9 1.0 (1.8 ) (1.5 ) (11.8 ) (11.7 ) Non-deductible compensation 1.1 1.1 0.4 0.3 — — Other, net (1.9 ) (1.9 ) (1.4 ) (1.2 ) 1.1 1.2 Provision for income taxes $ 15.2 15.7 % $ 10.7 9.2 % $ 69.6 68.6 % On December 22, 2017, the Tax Act was enacted into law effective January 1, 2018. The new legislation contains several key tax provisions that affected the Company, which include but are not limited to a one-time deemed repatriation tax on post-1986 accumulated earnings and profits of the undistributed earnings of foreign subsidiaries (“transition tax”), a reduction of the federal corporate income tax rate from 35% to 21%, and other U.S. reform items. In 2018, the Company decreased its provisional estimates of transition tax, related currency implications, state taxes and deferred tax rate change effect of the new law by $13.9 million . The reduction from the provisional 2017 amounts were primarily due to the transition tax further analysis of accumulated earnings and foreign taxes paid. As of December 31, 2018, the Company completed its accounting for the tax effects of the Tax Act. A $15.2 million and $10.7 million provision for income taxes in the years ended December 31, 2019 and 2018, respectively, resulted in an effective tax rate of 15.7 percent as compared with 9.2 percent in 2018. The Company’s effective tax rates differ from the statutory federal income tax rate of 21% due to varying tax rates in foreign jurisdictions, the relative amounts of income we earn in those jurisdictions and year over year adjustments of a $4.2 million reduction due to the one-time Brazil ICMS litigation accrual as compared to the prior year $13 million U.S. tax reform reduction. Prior to the passage of the U.S. Tax Act, the Company asserted that substantially all of the undistributed earnings of its foreign subsidiaries were considered indefinitely reinvested and accordingly, no deferred taxes were provided. Due to the Tax Act, the Company has significant previously taxed earnings and profits from its foreign subsidiaries, as a result of transition tax, that is generally able to be repatriated free of U. S. federal tax. In addition, future earnings of foreign subsidiaries are generally expected to be able to be repatriated free of U.S. federal income tax because these earnings were taxed in the U.S. under the GILTI regime or would be eligible for a 100% dividends received deduction. Therefore, the Company does not intend to assert indefinite reinvestment on cash earnings generated after December 31, 2017. As a result, the Company has provided for non-U.S. withholding taxes, U.S. federal tax related to currency movement on previously-taxed earnings and profits, and U.S. state taxes on unremitted post-2017 earnings. Net deferred income tax assets (liabilities) were comprised of the following ($ in millions): December 31, 2019 2018 Deferred Tax Assets Receivable allowances $ 0.4 $ 0.8 Inventory and other assets — 1.1 Postretirement and other employee benefits 19.0 14.8 Derivatives 0.1 — Net operating loss and tax credit carryforwards 93.7 93.3 Capital loss carryforward 6.9 — Investment in subsidiaries — 5.6 Intangibles 45.7 60.0 Other 3.9 1.2 169.7 176.8 Less: Valuation allowance (157.4 ) (172.1 ) Net deferred income tax assets $ 12.3 $ 4.7 Deferred Tax Liabilities Net property, plant and equipment $ (52.6 ) $ (51.9 ) Accruals and other liabilities (0.6 ) (0.2 ) Investment in subsidiaries (3.5 ) — Derivatives — (0.3 ) Other (0.1 ) — Net deferred income tax liabilities $ (56.8 ) $ (52.4 ) Total net deferred income tax liabilities $ (44.5 ) $ (47.7 ) As of December 31, 2019 the Company had approximately $90.5 million of tax-effected operating loss carryforwards available to further reduce future taxable income in various jurisdictions which will expire on various dates as follows: 2019 2020-2023 $ 0.2 2024-2035 15.3 Indefinite 75.0 $ 90.5 In addition, the Company has $1.5 million of state tax credits that will expire between 2020 - 2036. The Company's deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards for certain entities. The valuation allowance on deferred tax assets as of December 31, 2019 , in Luxembourg, Spain and the Philippines total $143.4 million , $8.4 million and $0.4 million respectively, fully reserving the net deferred tax asset balances in these locations. In addition, there is a valuation allowance on a tax credit receivable of $4.3 million in Brazil. We believe that it is more likely than not that the benefit from certain state tax attributes will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.1 million on the related deferred tax assets. The Company's assumptions, judgments and estimates relative to the valuation of these net deferred tax assets take into account available positive and negative evidence of realizability, including recent financial performance, the ability to realize benefits of restructuring and other recent actions, projections of the amount and category of future taxable income and tax planning strategies. Actual future operating results and the underlying amount and category of income in future periods could differ from the Company's current assumptions, judgments and estimates. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets. The following table summarizes the activity related to the Company's unrecognized tax benefits related to income taxes ($ in millions): December 31, 2019 2018 2017 Uncertain tax position balance at beginning of year $ 1.1 $ 1.0 $ 2.4 Increases related to current year tax positions 0.6 0.6 0.3 Increases related to prior year tax positions — — 0.4 Decreases related to prior year tax positions — (0.2 ) (2.0 ) Decreases related to expiration of statute of limitations — (0.3 ) (0.1 ) Uncertain tax position balance at end of year $ 1.7 $ 1.1 $ 1.0 The liability for unrecognized tax benefits included $1.7 million as of December 31, 2019 that if recognized would impact the Company's effective tax rate. We do not anticipate a decrease in unrecognized tax benefits by the end of 2020 as a result of a lapse of the statute of limitations and other regulatory filings. The Company's policy with respect to penalties and interest in connection with income tax assessments or related to unrecognized tax benefits is to classify penalties as provision for income taxes and interest as interest expense in its Consolidated Statements of Income. There were no material income tax penalties or interest accrued during the years ended December 31, 2019 , 2018 and 2017 . The Company files income tax returns, including returns for its subsidiaries, with federal, state, local and foreign jurisdictions. The Company finalized the U.S. federal audit for tax years 2014 and 2015 during 2019. All expected impacts have been recorded in 2018 or earlier. The following tax years remain subject to examination by the respective major tax jurisdictions: Jurisdiction Fiscal Years Belgium 2017-2019 Brazil 2014-2019 Canada 2015-2019 China 2017-2019 France 2016-2019 Germany 2015-2019 Hong Kong 2013-2019 Luxembourg 2014-2019 Philippines 2016-2019 Poland 2013-2019 Spain 2015-2019 United Kingdom 2016-2019 United States Federal 2016-2019 State 2014-2019 |
Postretirement and Other Benefi
Postretirement and Other Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Postretirement and Other Benefits | Postretirement and Other Benefits North American Pension and Postretirement Healthcare and Life Insurance Benefits The U.S. operations have defined benefit retirement plans that cover certain full-time employees. Retirement benefits are based on either a cash balance benefit formula or a final average pay formula for certain employees who were "grandfathered" and retained retirement benefits under the terms of the plan prior to its amendment to include a cash balance benefit formula. Benefits related to the U.S. defined benefit and pension plan are frozen for all employees. The U.S. operations also have unfunded healthcare and life insurance benefit plans, or OPEB plans, which cover certain of its retirees through age 65 . Some employees who retained benefits under the terms of the Company's plans prior to certain past amendments receive retiree healthcare coverage at rates subsidized by the Company. For other eligible employees, retiree healthcare coverage access is offered at full cost to the retiree. The postretirement healthcare plans include a limit on the Company's share of costs for current and future retirees. The U.S. operations' retiree life insurance plans are noncontributory. The Company's Canadian postretirement benefits liability is immaterial and therefore is not included in these disclosures. French Pension Benefits In France, employees are covered under a government-administered program. In addition, the Company's French operations sponsor retirement indemnity plans, which pay a lump sum retirement benefit to all of its permanent employees who retire. In addition, the Company's French operations sponsor a supplemental executive pension plan. Plan assets are principally invested in the general asset portfolio of a French insurance company. U.S. and French Pension and U.S. Other Postretirement Benefit Disclosures The U.S. pension and OPEB plans and French pension plans accounted for the majority of the Company's total plan assets and total Accumulated Benefit Obligations (ABO) at December 31, 2019 for the Company and all of its consolidated subsidiaries. The Company uses a measurement date of December 31 for its pension plans in the United States and France and other postretirement healthcare and life insurance benefit plans in the United States. The funded status of these plans as of December 31, 2019 and 2018 was as follows ($ in millions): Pension Benefits OPEB Benefits United States France United States 2019 2018 2019 2018 2019 2018 Change in Projected Benefit Obligation, or PBO: PBO at beginning of year $ 112.3 $ 124.1 $ 29.5 $ 30.5 $ 1.2 $ 1.4 Service cost — — 1.0 1.1 — — Interest cost 4.6 4.3 0.4 0.4 0.1 0.1 Actuarial loss (gain) 11.1 (8.2 ) 3.2 0.9 0.1 (0.2 ) Participant contributions — — 0.7 1.0 0.1 0.1 Gross benefits paid (8.1 ) (7.9 ) (2.3 ) (3.0 ) (0.1 ) (0.2 ) Currency translation effect — — (0.6 ) (1.4 ) — — PBO at end of year $ 119.9 $ 112.3 $ 31.9 $ 29.5 $ 1.4 $ 1.2 Change in Plan Assets: Fair value of plan assets at beginning of year $ 113.1 $ 128.7 $ 2.1 $ 3.2 $ — $ — Actual return on plan assets 20.8 (7.6 ) 0.2 (0.7 ) — — Employer contributions — — 1.1 1.2 — — Participant contributions — — — — 0.1 0.2 Gross benefits paid (8.1 ) (8.0 ) (2.3 ) (1.5 ) (0.1 ) (0.2 ) Currency translation effect — — — (0.1 ) — — Fair value of plan assets at end of year $ 125.8 $ 113.1 $ 1.1 $ 2.1 $ — $ — Funded status at end of year $ 5.9 $ 0.8 $ (30.8 ) $ (27.4 ) $ (1.4 ) $ (1.2 ) The PBO, ABO and fair value of pension plan assets for the Company's U.S. and French defined benefit pension plans as of December 31, 2019 and 2018 as follows ($ in millions): United States France 2019 2018 2019 2018 PBO $ 119.9 $ 112.3 $ 31.9 $ 29.5 ABO 119.9 112.3 31.9 24.9 Fair value of plan assets 125.8 113.1 1.1 2.1 As of December 31, 2019 , the pre-tax amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost for the U.S. and French pension plans and other postretirement benefit plans in the United States are as follows ($ in millions): Pension Benefits OPEB Benefits United States France United States Accumulated loss $ 23.3 $ 15.2 $ 0.2 Prior service credit — (2.6 ) — Accumulated other comprehensive loss $ 23.3 $ 12.6 $ 0.2 The amounts in accumulated other comprehensive loss at December 31, 2019 , which are expected to be recognized as components of U.S. and French net periodic benefit cost in 2020 are as follows ($ in millions): Pension Benefits OPEB Benefits United States France United States Amortization of accumulated loss $ (3.5 ) $ (1.2 ) $ — Amortization of prior service credit — 0.3 — Total $ (3.5 ) $ (0.9 ) $ — Actuarial assumptions are used to determine the Company's benefit obligations. The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle pension obligations. The discount rate fluctuates from year to year based on current market interest rates for high-quality, fixed-income investments. The Company also evaluates the expected average duration of its pension obligations in determining its discount rate. An assumed long-term rate of compensation increase is also used to determine the PBO. The weighted average assumptions used to determine benefit obligations as of December 31, 2019 and 2018 were as follows: Pension Benefits OPEB Benefits United States France United States 2019 2018 2019 2018 2019 2018 Discount rate 3.20 % 4.29 % 0.53 % 1.28 % 3.21 % 4.30 % Rate of compensation increase — % — % 1.96 % 1.75 % 3.50 % 3.50 % The U.S. postretirement healthcare plan provides for benefits to be limited to a cost ceiling which has already been reached. Therefore, no increases in the health care cost trend rates are included in the measurement of the plan's benefit obligation. The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the years ended December 31, 2019 , 2018 and 2017 were as follows ($ in millions): U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 1.0 $ 1.1 $ 1.1 $ — $ — $ — Interest cost 4.6 4.3 4.8 0.4 0.4 0.4 0.1 0.1 0.1 Expected return on plan assets (5.8 ) (5.8 ) (6.4 ) (0.1 ) (0.1 ) (0.2 ) — — — Amortizations and other 2.0 3.2 3.2 0.9 1.1 1.4 — 0.1 0.2 Net periodic benefit cost $ 0.8 $ 1.7 $ 1.6 $ 2.2 $ 2.5 $ 2.7 $ 0.1 $ 0.2 $ 0.3 Assumptions are used to determine net periodic benefit costs. In addition to the discount rate and rate of compensation increase, which are used to determine benefit obligations, an expected long-term rate of return on plan assets is also used to determine net periodic pension benefit costs. The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2019 , 2018 and 2017 were as follows: Pension Benefits OPEB Benefits United States France United States 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.29 % 3.60 % 4.11 % 1.28 % 1.28 % 1.14 % 4.30 % 3.59 % 4.09 % Expected long-term rate of return on plan assets 5.14 % 5.00 % 5.56 % 3.00 % 3.00 % 3.00 % — % — % — % Rate of compensation increase — % — % — % 1.96 % 1.75 % 1.75 % 3.50 % 3.50 % 3.50 % The Company's investment strategy with respect to its U.S. pension plan assets is to maximize the return on investment of plan assets at an acceptable level of risk and to assure the plans' fiscal health. The target asset allocation varies based on the funded status of the plan in an effort to match the duration of the plan's liabilities to investments in long duration fixed income assets over time. The Company's investments under the French pension plans are primarily invested as directed by governmental authorities, their contracted providers or the participants without direction from the Company. The primary goal of the Company's pension plans is to maintain the highest probability of assuring future benefit payments to participants while providing growth of capital in real terms. To achieve this goal, the investment philosophy is to protect plan assets from large investment losses, particularly over time, while steadily growing the assets in a prudent manner. While there cannot be complete assurance that the objectives will be realized, the Company believes that the likelihood of realizing the objectives are reasonable based upon this investment philosophy. The Company has an investment committee that meets on a periodic basis to review the portfolio returns and to determine asset mix targets. The U.S. and French pension plans' asset target allocations by asset category for 2020 and actual allocations by asset category at December 31, 2019 and 2018 were as follows: United States France 2020 Target 2019 2018 2019 2018 Asset Category Cash and cash equivalents — % 1 % 1 % 41 % 43 % Equity securities* Domestic large cap 9 5 5 31 28 Domestic small cap 5 3 3 — — International 10 15 14 — — Fixed income securities 76 76 77 26 27 Alternative investments** — — — 2 2 Total 100 % 100 % 100 % 100 % 100 % * None of the Company's pension plan assets are targeted for investment in SWM stock, except that it is possible that one or more mutual funds held by the plan could hold shares of SWM. ** Investments in this category under the U.S. pension plan only may include hedge funds, and may include real estate under the French pension plan. The Company's pension assets are classified according to an established fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements). A financial instrument's level within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly; Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2019 ($ in millions): United States France Plan Asset Category Total Other* Level 1 Level 2 Level 3 Total Level 1 Level 2 Cash equivalents $ 0.9 $ — $ 0.9 $ — $ — $ 0.4 $ 0.4 $ — Equity securities Domestic large cap 6.8 6.8 — — — 0.3 0.3 — Domestic small cap 4.3 4.3 — — — — — — International 19.1 19.1 — — — — — — Fixed income securities 94.7 44.4 — 50.3 — 0.3 — 0.3 Alternative investments** — — — — — 0.1 — 0.1 Total $ 125.8 $ 74.6 $ 0.9 $ 50.3 $ — $ 1.1 $ 0.7 $ 0.4 The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2018 ($ in millions): United States France Plan Asset Category Total Other* Level 1 Level 2 Level 3 Total Level 1 Level 2 Cash equivalents $ 1.0 $ — $ 1.0 $ — $ — $ 0.9 $ 0.9 $ — Equity securities Domestic large cap 5.7 5.7 — — — 0.6 0.6 — Domestic small cap 3.3 3.3 — — — — — — International 15.5 15.5 — — — — — — Fixed income securities 87.6 41.2 — 46.4 — 0.5 — 0.5 Alternative investments** — — — — — 0.1 — 0.1 Total $ 113.1 $ 65.7 $ 1.0 $ 46.4 $ — $ 2.1 $ 1.5 $ 0.6 * Assets are measured at Net Asset Value ("NAV") as a practical expedient and not subject to hierarchy level classification disclosure. ** Alternative investments include ownership interests in shares of registered investment companies. Values for Level 3 assets may be determined through appraisals and models for illiquid assets. The following table shows the changes in Level 3 asset values ($ in millions): Level 3 Asset Reconciliation Alternative Investments Total Beginning balance, January 1, 2018 $ 0.1 Realized and unrealized gains — Purchases — Sales (0.1 ) Ending balance, December 31, 2018 $ — Realized and unrealized gains — Purchases — Sales — Ending balance, December 31, 2019 $ — The Company expects the following estimated undiscounted future pension benefit payments for the United States and France and future postretirement healthcare and life insurance benefit payments for the United States, which are to be made from pension plan and employer assets, net of amounts that will be funded from retiree contributions, and which reflect expected future service, as appropriate ($ in millions): United States France Pension Benefits Healthcare and Life Insurance Benefits Pension Benefits 2020 $ 8.5 $ 0.2 $ 1.6 2021 8.4 0.2 1.0 2022 8.4 0.1 0.6 2023 8.1 0.1 1.7 2024 8.0 0.1 1.3 2025 - 2029 37.6 0.3 8.0 The Company is not required to contribute during 2020 to its U.S. and French pension plans; although, it may make discretionary contributions dependent on market conditions to remain aligned with its investment policy statement. Other Foreign Pension Benefits In Brazil, Poland and the United Kingdom, employees are covered under government-administered programs. In Canada, the employee pension benefits are not material and therefore are not included in the above disclosures. Other Benefits We sponsor a qualified defined contribution plan covering substantially all U.S. employees. Under the plan, the Company matches a portion of employee contributions. The Company's cost under the plan was $3.9 million , $3.6 million and $3.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company provides U.S. executives, certain other key personnel and its directors the opportunity to participate in deferred compensation plans. Participating employees can elect to defer a portion of their salaries and certain other compensation. Participating directors can elect to defer their meeting fees, as a cash deferral, as well as their quarterly retainer fees, as deferred stock unit credits. The Company's liability balance under these deferred compensation plans totaled $19.7 million and $14.1 million at December 31, 2019 and 2018 , respectively, which were included in the Consolidated Balance Sheets in Other liabilities. In connection with these plans, the Company has a grantor trust into which it has contributed funds toward its future obligations under the various plans (See Note 13 . Other Assets). The balance of grantor trust assets totaled $14.7 million and $10.9 million at December 31, 2019 and 2018 , respectively, which were included in Other assets in the Consolidated Balance Sheets. These assets are restricted from Company use until all obligations are satisfied. In accordance with French law, certain salaried employees in France may accumulate unused regular vacation and supplemental hours of paid leave that can be credited to an individual's Compte Epargne Temps, or CET. The CET account may grow over an individual's career and the hours accumulated may be withdrawn upon retirement or under other special circumstances at the individual's then current rate of pay. The balance of the Company's liability for this program reflected in the accompanying Consolidated Balance Sheets in Other liabilities was $6.3 million and $5.5 million at December 31, 2019 and 2018 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Restricted Stock Plan In April 2015, the Company adopted a new 2015 Long-term Incentive Plan, or LTIP, which replaced its existing Restricted Stock Plan ("RSP"). The LTIP is intended to promote the Company's long-term financial success by attracting and retaining outstanding executive personnel and to motivate such personnel by means of equity grants. The Compensation Committee of the Company's Board of Directors selects participants and establishes the terms of any grant of restricted stock. The Company's LTIP provides that issuance of restricted stock immediately transfers ownership rights in shares of its Common Stock to the recipient of the grant, including the right to vote the shares and to receive dividends thereon. Other types of stock awards are available under the LTIP, but not currently used. The recipient's continued ownership of and right to freely transfer the restricted stock is subject to such conditions on transferability and to such risks of forfeiture as are established by the Compensation Committee at the time of the grant, which may include continued employment with the Company for a defined period, achievement of specified management performance objectives or other conditions established by the Compensation Committee. The number of shares which may be issued under the LTIP is limited to 5,000,000 . Restricted shares outstanding under the RSP will continue to vest in accordance with the terms of each grant; however, no further grants of shares will be issued under the RSP. No single participant may be awarded, in the aggregate, more than 750,000 shares during any fiscal year. As of December 31, 2019 , 1,923,356 restricted shares had been issued under the Company's restricted stock plans of which 221,622 shares of issued restricted stock were not yet vested and for which $2.5 million in unrecognized compensation expense is expected to be recognized over a weighted average period of 2.1 years. The following table presents restricted stock activity for the years 2019 , 2018 and 2017 : 2019 2018 2017 # of Shares Weighted Average Fair Value at Date of Grant # of Shares Weighted Average Fair Value at Date of Grant # of Shares Weighted Average Fair Value at Date of Grant Nonvested restricted shares outstanding at January 1 184,190 $ 40.33 283,338 $ 37.26 224,289 $ 41.30 Granted 155,982 35.62 142,475 39.58 216,017 36.03 Forfeited (8,869 ) 41.34 (12,858 ) 40.06 (29,150 ) 42.50 Vested (109,681 ) 40.12 (228,765 ) 35.86 (127,818 ) 41.06 Nonvested restricted shares outstanding at December 31 221,622 $ 37.08 184,190 $ 40.33 283,338 $ 37.26 Restricted Stock Plan Performance Based Shares During 2019 , the Company recognized $5.6 million for 331,150 shares earned under the 2019-2020 award opportunity and $2.2 million of compensation expense earned under the 2018-2019 award opportunity. During 2018 , the Company recognized $2.0 million for 91,396 shares earned under the 2018-2019 award opportunity and $2.2 million of compensation expense earned under the 2017-2018 award opportunity. During 2017 , the Company recognized $1.7 million of compensation expense for 75,741 shares earned under the 2017-2018 award opportunity and $2.2 million of compensation expense earned under the 2016-2017 award opportunity. Basic and Diluted Shares Reconciliation The Company uses the two-class method to calculate earnings per share. The Company has granted restricted stock that contains nonforfeitable rights to dividends on unvested shares. Since these unvested shares are considered participating securities under the two-class method, the Company allocates earnings per share to common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Diluted net income per common share is computed based on net income divided by the weighted average number of common and potential common shares outstanding. Potential common shares during the respective periods are those related to dilutive stock-based compensation, including long-term share-based incentive compensation, stock options outstanding, and directors' accumulated deferred stock compensation which may be received by the directors in the form of stock or cash. A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands): For the Years Ended December 31, 2019 2018 2017 Numerator (basic and diluted): Net income $ 85.8 $ 94.5 $ 34.5 Less: Dividends paid to participating securities (0.4 ) (0.3 ) (0.4 ) Less: Undistributed earnings available to participating securities (0.2 ) (0.3 ) — Undistributed and distributed earnings available to common stockholders $ 85.2 $ 93.9 $ 34.1 Denominator: Average number of common shares outstanding 30,652.2 30,551.3 30,407.1 Effect of dilutive stock-based compensation 186.1 141.6 142.2 Average number of common and potential common shares outstanding 30,838.3 30,692.9 30,549.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Other Commitments The EP segment's PDM Industries plant has a minimum annual commitment of approximately $1.2 million per year for calcium carbonate purchases, a raw material used in the manufacturing of some paper products, which totals approximately $7.0 million through 2024. Future purchases are expected to be at levels that exceed such minimum levels under these contracts. The Company enters into certain other immaterial contracts from time to time for the purchase of certain raw materials. The Company also enters into certain contracts for the purchase of equipment and related costs in connection with its ongoing capital projects. The Company has agreements with an energy co-generation supplier in France whereby the supplier constructed and operates a co-generation facility at certain plants and supplies steam that is used in the operation of these plants. The Company is committed to purchasing minimum annual amounts of steam generated by these facilities under the agreements through 2030 . These minimum annual commitments total approximately $6.0 million . The Company's current and expected requirements for steam at these facilities are at levels that exceed the minimum levels under the contracts. The EP segment's Brazilian plant, SWM-B, has an agreement for the transmission and distribution of energy that covers all of the plant's consumption of electrical energy valued at approximately $2.4 million annually through 2021 . Additionally, SWM-B has an agreement for natural gas valued at approximately $6.9 million annually through 2021 . The French plants have contracts for natural gas to be distributed to and consumed at PdM, LTRI and St. Girons. The value of the natural gas and distribution to be provided under these contracts is estimated at approximately $2.8 million annually through 2022 . Additionally, the French plants have contracts for electricity to be distributed to and consumed at PdM, LTRI and St. Girons. The value of the electricity and distribution to be provided under these contracts is estimated at approximately $6.1 million in 2020. The Spay, France plant has a contract to consume biomass at approximately $0.6 million annually through 2022. The Company has certain other letters of credit, guarantees and surety bonds outstanding at December 31, 2019 , which are not material either individually or in the aggregate. Litigation Brazil Imposto sobre Circulação de Mercadorias e Serviços ("ICMS"), a form of value-added tax in Brazil, was assessed to SWM-B in December of 2000. SWM-B received two assessments from the tax authorities of the State of Rio de Janeiro (the "State") for unpaid ICMS taxes on certain raw materials from January 1995 through October 1998 and from November 1998 through November 2000 (collectively, the "Raw Materials Assessments"). The Raw Materials Assessments concerned the accrual and use by SWM-B of ICMS tax credits generated from the production and sale of certain non-tobacco related grades of paper sold domestically. SWM-B contested the Raw Materials Assessments based on Article 150, VI of the Brazilian Federal Constitution of 1988, which grants immunity from ICMS taxes to papers intended for printing books, newspapers and periodicals, on the ground that tax immunity extends to the raw material inputs used to produce such papers. In 2015, the first chamber of the Federal Supreme Court decided the first Raw Materials Assessment in favor of SWM-B. On May 24, 2019, the second chamber of the Federal Supreme Court decided Assessment 2 against SWM-B in the amount of approximately $12.1 million . SWM-B, with assistance of outside counsel, is currently evaluating the decision and exploring its options and other defenses to partially satisfy or reduce the judgment and SWM-B plans to pursue these avenues vigorously. However, because the outcome of any reductions and defenses is uncertain, SWM-B recorded an expense sufficient to satisfy this amount in the second quarter of 2019 in addition to the $1.3 million previously accrued as of December 31, 2018 . This judgment may be settled over the course of 60 months ; however, we have requested that the Court clarify its decision. Until a decision is rendered on our request, we are not obligated to initiate payments. Interest and penalties will continue to accrue until a decision on our request is rendered. The amounts recorded in the accompanying consolidated statement of income for the year ended December 31, 2019 related to the above two assessments consist of the following: Year Ended December 31, 2019 Income Statement Classification (Expense) Benefit Cost of products sold 1 $ (1.5 ) Operating profit 1 (1.5 ) Other expense 2 (2.2 ) Interest expense 2 (7.1 ) Income from continuing operations before income taxes (10.8 ) Income tax benefit 4.2 Net income $ (6.6 ) 1 Cost of products sold reflects the net of $2.6 million of expense associated with the Raw Materials Assessment and $1.1 million benefit associated with separate litigation against the Brazilian Instituto Nacional do Seguro Social ("INSS"), the Brazilian Social Security Administration, regarding additional assessments of social security contributions charged to the Company in the early 1990s. This benefit is expected to be received in tax credits to be applied against future payments of social security taxes over the following year. Amounts are reflected in Engineered Papers reporting segment in segment disclosures. 2 Other expense includes penalties and fees associated with the Raw Materials Assessment. Interest expense relates to the Raw Materials Assessment. SWM-B received assessments from the tax authorities of the State for unpaid ICMS and Fundo Estadual de Combate à Pobreza ("FECP," a value-added tax similar to ICMS) taxes on interstate purchases of electricity. The State issued four sets of assessments against SWM-B, one for May 2006 - November 2007, a second for January 2008 - December 2010, a third for September 2011 - September 2013, which was replaced by a smaller assessment for January - June 2013, and a fourth for July 2013 - December 2017 (collectively the "Electricity Assessments"). SWM-B challenged all Electricity Assessments in administrative proceedings before the State tax council (in the first-level court Junta de Revisão Fiscal and the appellate court (the "Conselho de Contribuintes")) based on Resolution 1.610/89, which defers these taxes on electricity purchased by an "electricity-intensive consumer." In 2014, a majority of the Conselho de Contribuintes sitting en banc ruled against SWM-B in each of the first and second electricity assessments ( $3.8 million and $6.9 million , respectively, based on the foreign currency exchange rate at December 31, 2019 ), and SWM-B is now pursuing challenges to these assessments in the State judicial system. Different chambers of the judicial court granted SWM-B preliminary injunctions against enforcement of these two assessments in the State judicial system. The Conselho de Contribuintes unanimously upheld SWM-B's challenge to the third Electricity Assessment and dismissed this Electricity Assessment on technical grounds after the State admitted the tax did not apply as it had asserted. Instead, in August 2018, the State filed a revised Electricity Assessment in the amount of $0.7 million for ICMS on electricity purchased during part of 2013. In August 2018, the State filed a fourth Electricity Assessment in the amount of $9.7 million pertaining to ICMS and FECP on electricity purchased from July 2013 to December 2017. SWM-B filed challenges to these recent assessments in the first-level administrative court on the same grounds as the older cases. Both the Junta de Revisão Fiscal and the Conselho de Contribuintes ruled against SWM-B in the last two Electricity Assessments. SWM-B plans to appeal these rulings to the full bench of the Conselho de Contribuintes. The State issued a new regulation effective January 1, 2018 that only specific industries are “electricity-intensive consumers,” a list that excludes paper manufacturers. SWM-B contends this regulation shows that paper manufacturers were electricity-intensive consumers eligible to defer ICMS before 2018. SWM-B cannot determine the outcome of the Electricity Assessments matters, so no loss has been accrued in our consolidated financial statements for them. Germany In January 2015, the Company initiated patent infringement proceedings in Germany against Glatz under multiple LIP-related patents. In December, 2017, the Dusseldorf Appeal Court affirmed the German District Court judgment on infringement of EP 1482815 against Glatz. Glatz has filed an action in the German Patent Court to invalidate the German part of EP1482815. The trial on this invalidity action has not yet been scheduled. The cost, timing and outcome of intellectual property litigation can be unpredictable and thus no assurances can be given as to the outcome or impact on us of such litigation. Environmental Matters The Company's operations are subject to various nations' federal, state and local laws, regulations and ordinances relating to environmental matters. The nature of the Company's operations exposes it to the risk of claims with respect to various environmental matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. While the Company has incurred in the past several years, and will continue to incur, capital and operating expenditures in order to comply with environmental laws and regulations, it believes that its future cost of compliance with environmental laws, regulations and ordinances, and its exposure to liability for environmental claims and its obligation to participate in the remediation and monitoring of certain hazardous waste disposal sites, will not have a material effect on its financial condition or results of operations. However, future events, such as changes in existing laws and regulations, or unknown contamination or costs of remediation of sites owned, operated or used for waste disposal by the Company (including contamination caused by prior owners and operators of such sites or other waste generators) may give rise to additional costs which could have a material effect on its financial condition or results of operations. The Company incurs spending necessary to meet legal requirements and otherwise relating to the protection of the environment at its facilities in the United States, France, Poland, Brazil, China and Canada. For these purposes, the Company incurred total capital expenditures of $1.2 million in 2019 , and expects to incur less than $1.0 million in each of 2020 and 2021, of which no material amount is the result of environmental fines or settlements. Should the Company make material changes in the operations at a facility it is possible such changes could generate environmental obligations that might require remediation or other action, the nature, extent and cost of which are not presently known. The foregoing capital expenditures are not expected to reduce the Company's ability to invest in other appropriate and necessary capital projects and are not expected to have a material adverse effect on its financial condition or results of operations. Indemnification Matters In connection with its spin-off from Kimberly-Clark in 1995, the Company undertook to indemnify and hold Kimberly-Clark harmless from claims and liabilities related to the businesses transferred to it that were not identified as excluded liabilities in the related agreements. As of December 31, 2019 , there are no claims pending under this indemnification that the Company deems to be material. General Matters |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's two operating product line segments are also the Company's reportable segments: Advanced Materials and Structures and Engineered Papers. The AMS segment primarily produces engineered resin-based rolled goods such as nets, films, and other non-wovens for use in high-performance applications in the filtration, transportation, infrastructure and construction, medical, and industrial end-markets. The EP segment primarily produces cigarette papers including LIP papers, plug wrap papers and base tipping papers used to wrap various parts of a cigarette for sale to cigarette manufacturers and reconstituted tobacco leaf, or RTL, and wrapper and binder products for sale to cigarette and cigar manufacturers. The EP segment also includes commercial and industrial products such as lightweight printing and writing papers, battery separator paper, drinking straw wrap, filter paper and other specialized papers. Information about Net Sales and Operating Profit The Company primarily evaluates segment performance and allocates resources based on operating profit. Expense amounts not associated with segments are referred to as unallocated expenses. ($ in millions) Net Sales For the Years Ended December 31, 2019 2018 2017 Advanced Materials & Structures $ 477.2 46.7 % $ 467.9 44.9 % $ 433.2 44.1 % Engineered Papers 545.6 53.3 573.4 55.1 548.9 55.9 Consolidated $ 1,022.8 100.0 % $ 1,041.3 100.0 % $ 982.1 100.0 % ($ in millions) Operating Profit For the Years Ended December 31, 2019 2018 2017 Advanced Materials & Structures $ 64.3 48.0 % $ 49.5 36.7 % $ 48.5 37.8 % Engineered Papers 119.2 89.0 121.8 90.2 119.7 93.3 Unallocated (49.5 ) (37.0 ) (36.3 ) (26.9 ) (39.9 ) (31.1 ) Consolidated $ 134.0 100.0 % $ 135.0 100.0 % $ 128.3 100.0 % ($ in millions) Segment Assets December 31, 2019 December 31, 2018 December 31, 2017 Advanced Materials & Structures $ 781.2 $ 796.1 $ 811.7 Engineered Papers 512.4 527.4 537.6 Unallocated 178.1 143.0 193.2 Consolidated $ 1,471.7 $ 1,466.5 $ 1,542.5 ($ in millions) Capital Spending Depreciation 2019 2018 2017 2019 2018 2017 Advanced Materials & Structures $ 16.1 $ 15.0 $ 11.5 $ 12.8 $ 14.1 $ 12.3 Engineered Papers 12.0 11.7 25.6 22.8 23.9 23.4 Unallocated 0.5 0.3 0.1 0.2 0.1 — Consolidated $ 28.6 $ 27.0 $ 37.2 $ 35.8 $ 38.1 $ 35.7 Information about Geographic Areas Long-lived assets by geographic area as of year-end were as follows ($ in millions): Long-Lived Assets 2019 2018 2017 United States $ 118.5 $ 115.8 $ 115.0 France 158.8 167.4 181.3 Brazil 19.5 20.8 24.2 Poland 14.7 16.8 21.9 Other foreign countries 30.7 27.7 26.9 Consolidated $ 342.2 $ 348.5 $ 369.3 For the geographic disclosure in the following table, net sales are attributed to geographic locations based on the location of the Company's direct customers ($ in millions): Net Sales 2019 2018 2017 United States $ 514.1 $ 513.4 $ 468.9 Europe and the former Commonwealth of Independent States 218.4 260.8 259.9 Asia-Pacific (including China) 172.6 159.4 148.4 Latin America 53.2 53.5 57.9 Other foreign countries 64.5 54.2 47.0 Consolidated $ 1,022.8 $ 1,041.3 $ 982.1 |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Major Customers | Major Customers There were no individual customers in the AMS segment which made up 10% or more of the Company's 2019 , 2018 or 2017 consolidated net sales. In our EP segment, there were no individual customers which made up 10% or more of the Company's consolidated net sales for the year ended December 31, 2019 . For the year ended December 31, 2018, one customer, together with its respective affiliates and designated converters, accounted for 10% of the Company's consolidated net sales. For the year ended December 31, 2017, one customer, together with its respective affiliates and designated converters, accounted for 11% of the Company's consolidated net sales. The loss of one or more such customers, or a significant reduction in one or more of these customers' purchases, could have a material adverse effect on the Company's results of operations. There were no individual customers in the AMS segment which made up 10% or more of the Company's consolidated accounts receivable at December 31, 2019 or 2018 . In the EP segment, one customer, together with its respective affiliates and designated converters, accounted for 11% or more of the Company's consolidated accounts receivable at December 31, 2019 . At December 31, 2018 |
Supplemental Disclosures
Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Disclosures | Supplemental Disclosures Analysis of Allowances for Doubtful Accounts: ($ in millions) For the Years Ended December 31, 2019 2018 2017 Allowance for Doubtful Accounts Beginning balance $ 1.7 $ 1.0 $ 0.8 Bad debt expense 0.4 1.2 0.8 Recoveries (0.3 ) (0.2 ) — Write-offs and discounts (0.3 ) (0.3 ) (0.6 ) Ending balance $ 1.5 $ 1.7 $ 1.0 Supplemental Cash Flow Information ($ in millions) For the Years Ended December 31, 2019 2018 2017 Interest paid $ 29.1 $ 24.0 $ 22.7 Income taxes paid 20.8 23.2 38.1 Capital spending in accounts payable and accrued liabilities 5.9 5.0 7.7 Deferred contingent business acquisition consideration — — 8.6 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following tables summarize the Company's unaudited quarterly financial data for the years ended December 31, 2019 and 2018 ($ in millions, except per share amounts): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year Net sales $ 258.0 $ 269.9 $ 256.4 $ 238.5 $ 1,022.8 Gross profit 67.9 79.0 72.2 70.9 290.0 Restructuring and impairment expense — 0.4 1.6 1.7 3.7 Operating profit 30.4 44.2 34.6 24.8 134.0 Income from continuing operations 17.4 20.5 27.7 20.2 85.8 Loss from discontinued operations — — — — — Net income $ 17.4 $ 20.5 $ 27.7 $ 20.2 $ 85.8 Net income (loss) per share: Income per share from continuing operations - basic $ 0.57 $ 0.66 $ 0.90 $ 0.65 $ 2.78 Loss per share from discontinued operations - basic — — — — — Net income per share - basic $ 0.57 $ 0.66 $ 0.90 $ 0.65 $ 2.78 Income per share from continuing operations - diluted $ 0.56 $ 0.66 $ 0.90 $ 0.64 $ 2.76 Loss per share from discontinued operations - diluted — — — — — Net income per share - diluted $ 0.56 $ 0.66 $ 0.90 $ 0.64 $ 2.76 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year Net sales $ 261.9 $ 270.4 $ 260.3 $ 248.7 $ 1,041.3 Gross profit 72.0 77.4 65.3 63.8 278.5 Restructuring and impairment expense 0.4 0.6 0.4 0.3 1.7 Operating profit 35.0 42.1 31.1 26.8 135.0 Income from continuing operations 20.9 25.8 40.9 7.2 94.8 (Loss) income from discontinued operations (0.4 ) — 0.1 — (0.3 ) Net income $ 20.5 $ 25.8 $ 41.0 $ 7.2 $ 94.5 Net income (loss) per share: Income per share from continuing operations - basic $ 0.68 $ 0.84 $ 1.33 $ 0.23 $ 3.08 Loss per share from discontinued operations - basic (0.01 ) — — — (0.01 ) Net income per share - basic $ 0.67 $ 0.84 $ 1.33 $ 0.23 $ 3.07 Income per share from continuing operations - diluted $ 0.68 $ 0.83 $ 1.33 $ 0.23 $ 3.07 Loss per share from discontinued operations - diluted (0.01 ) — — — (0.01 ) Net income per share - diluted $ 0.67 $ 0.83 $ 1.33 $ 0.23 $ 3.06 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 18, 2020, the Company announced the signing of a definitive agreement (the "Purchase Agreement") to acquire Tekra, LLC and Trient Technologies, LLC (“Tekra and Trient”), converters of high-performance films and substrates, significantly enhancing the Company’s films capabilities. Tekra and Trient currently operate as divisions of EIS Inc., a portfolio company of Audax Private Equity, and are based in the Milwaukee, Wisconsin area. Pursuant to the Purchase Agreement, among other things, DelStar Technologies, Inc., a Delaware corporation, ("DelStar") which is a wholly-owned subsidiary of the Company, will purchase all of the equity interests in Tekra and Trient (the “Transaction”) for an aggregate purchase price of $155 million |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements and the notes thereto have been prepared in accordance with accounting principles generally accepted in the United States of America, "U.S. GAAP." The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company believes the estimates and assumptions used in the preparation of these consolidated financial statements are reasonable, based upon currently available facts and known circumstances. Actual results may differ from those estimates and assumptions as a result of a number of factors, including those discussed elsewhere in this report and in its other public filings from time to time. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and wholly-owned, majority-owned and controlled subsidiaries. Intercompany balances and transactions have been eliminated. Certain reclassifications of prior year data were made in the Notes to Consolidated Financial Statements. The reclassifications were made to conform to the current year presentation. The Company uses the equity method to account for its investments in two joint ventures with the China National Tobacco Corporation (see Note 10 . Joint Ventures). Investment in equity affiliates represents the Company’s investment in these joint ventures. The Company’s 50% share of the net income (loss) of the joint ventures is included in the consolidated statements of income as income (loss) from equity affiliates. |
Revenue Recognition | Revenue Recognition The Company has two main sources of revenue: product sales and materials conversion. The Company recognizes product sales revenues when control of a product is transferred to the customer. For the majority of product sales, transfer of control occurs when the products are shipped from one of the Company’s manufacturing facilities to the customer. The cost of delivering finished goods to the Company’s customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Any freight costs billed to and paid by a customer are included in net sales. The Company also provides services to customers through the conversion of customer-owned raw materials into processed finished goods. In these transactions, the Company generally recognizes revenue as processing is completed. Freight Costs The cost of delivering finished goods to the Company's customers is recorded as a component of cost of products sold. Those costs include the amounts paid to a third party to deliver the finished goods. Royalty Income |
Foreign Currency Translation | Foreign Currency Translation The income statements of foreign entities are translated into U.S. dollars at average exchange rates prevailing during the periods presented. The balance sheets of these entities are translated at period-end exchange rates, and the differences from historical exchange rates are reflected in a separate component of accumulated other comprehensive loss as unrealized foreign currency translation adjustments. |
Derivative Instruments | Derivative Instruments The Company is exposed to changes in foreign currency exchange rates, interest rates and commodity prices. The Company utilizes a variety of practices to manage these market risks, including where considered appropriate, derivative instruments. The Company uses derivative instruments only for risk management purposes and not for trading or speculation. All derivative instruments the Company uses are either exchange traded or are entered into with major financial institutions in order to reduce credit risk and risk of nonperformance by third parties. The Company believes the credit risks with respect to the counterparties, and the foreign currency risks that would not be hedged if the counterparties fail to fulfill their obligations under the contracts, are not material in view of its understanding of the financial strength of the counterparties. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Business Combinations | Business Combinations |
Impairment of Long-Lived Assets, Goodwill and Intangible Assets | Impairment of Long-Lived Assets, Goodwill and Intangible Assets The Company evaluates the carrying value of long-lived assets, including property and equipment, goodwill and intangible assets when events and circumstances warrant a review. Goodwill is also tested for impairment annually during the fourth quarter. We first evaluate qualitative factors, such as macroeconomic conditions and our overall financial performance by reporting unit to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We then evaluate how significant each of the identified factors could be to the fair value or carrying amount of a reporting unit and weigh these factors in totality in forming a conclusion of whether or not it is more likely than not that the fair value of a reporting unit is less than its carrying amount (the “Step 0 Test”). If we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the first step of the goodwill impairment test is not necessary. Otherwise, we would proceed to the first step of the goodwill impairment test. Alternatively, we may also bypass the Step 0 Test and proceed directly to the first step of the goodwill impairment test. The first step compares the book value of the reporting unit to its fair value. If the book value of a reporting unit exceeds its fair value, the Company performs the second step. In the second step, the Company determines an implied fair value of the reporting unit's goodwill by allocating the fair value of the reporting unit to all of the assets and liabilities other than goodwill. The difference between the total fair value of the reporting unit and the fair value of all the assets and liabilities other than goodwill is the implied fair value of that goodwill. Any impairment loss is measured as the excess of the book value of the goodwill over the implied fair value of that goodwill. See Note 11 . Goodwill for further discussion of the Company's annual impairment test results. During the annual testing in the fourth quarter of 2019 , the estimated fair value of each of the Company's reporting units was in excess of its respective carrying value. We have acquired trade names that have been determined to have indefinite lives. We evaluate a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, category share, business history, product life cycle and operating plans. Indefinite-lived intangibles are evaluated for impairment annually during the fourth quarter. Additionally, when certain events or changes in operating conditions occur, an impairment assessment is performed and indefinite-lived trade names may be adjusted to a determinable life or an impairment charge may be recorded. The cost of intangible assets with determinable useful lives is amortized to reflect the pattern of economic benefits consumed, which approximates a straight-line basis, over the estimated periods benefited. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Estimated useful lives range from 10 to 23 years for customer relationships and 4 to 20 years for developed technology, patents and other intangible assets. The carrying value of long-lived assets is reviewed to determine if events or circumstances have changed which may indicate that the assets may be impaired or the useful life may need to be changed. Upon occurrence of such a triggering event, the Company considers internal and external factors relating to each asset group, including expectation of future profitability, undiscounted cash flows and its plans with respect to the operations. If impairment is indicated, an impairment loss is measured by the amount the net carrying value of the asset exceeds its estimated fair value. |
Environmental Spending | Environmental Spending Environmental spending is capitalized if such spending qualifies as property, plant and equipment, substantially increases the economic value or extends the useful life of an asset. All other such spending is expensed as incurred, including fines and penalties incurred in connection with environmental violations. Environmental spending relating to an existing condition caused by past operations is expensed. Liabilities are accrued when environmental assessments are probable and the costs can be reasonably estimated. Generally, timing of these accruals coincides with completion of a feasibility study or commitment to a formal plan of action. |
Capitalized Software Costs | Capitalized Software Costs The Company capitalizes certain purchases of software and software development costs in connection with major projects of software development for internal use. These costs are included in Other assets on the Consolidated Balance Sheets and are amortized using the straight-line method over the estimated useful life not to exceed seven years |
Business Tax Credits | Business Tax Credits |
Income Taxes | Income Taxes Our income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best estimate of current and future taxes to be paid. We operate and are subject to income taxes in the U.S. and numerous foreign jurisdictions. The complexity of our global structure requires significant judgments and estimates in determining the allocation of income to each of these jurisdictions and consolidated income tax expense. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If it is determined that the Company would be able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. On December 22, 2017, the Tax Act was enacted into law effective January 1, 2018. The new legislation contains several key tax provisions that affected the Company, and include but are not limited to a one-time deemed repatriation tax on post-1986 accumulated earnings and profits of the foreign subsidiary undistributed earnings (“transition tax”), a reduction of the federal corporate income tax rate from 35% to 21%, a new deduction for Foreign-Derived Intangible Income ("FDII"), and a new provision designed to tax Global Intangible Low Taxed Income (“GILTI”) of foreign subsidiaries effective January 1, 2018. As a result of the GILTI provision, the FASB issued Staff Q&A Topic 740, No. 5 “Accounting for Global Intangible Low-Taxed Income” requiring an entity to make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI as a current period expense when incurred. Management makes certain judgments in interpreting the manner in which complex key provisions of the Tax Act should be applied and in the determination of income tax expense and liabilities. |
Pensions and Other Postretirement Benefit Accounting | Pension and Other Postretirement Benefits Accounting The Company recognizes the estimated compensation cost of employees' pension and other postretirement benefits over their approximate period of service. The Company's earnings are impacted by amounts of expense recorded related to these benefits, which primarily consist of U.S. and French pension benefits and U.S. other postretirement benefits, or OPEBs. Each year's recorded expenses are estimates based on actuarial calculations of the Company's accumulated and projected benefit obligations, or PBOs, for the Company's various plans. |
Comprehensive Income | Comprehensive Income |
Restricted Stock | Restricted Stock All of the Company's restricted stock grants, including those that have been earned in the case of performance-based shares and cliff-vesting grants that are not performance based, vest upon completion of a specified period of time, typically between two and four years |
Restricted Stock Plan Performance Based Shares | Restricted Stock Plan Performance Based Shares The Company's long-term incentive compensation program, or LTICP, for key employees includes an equity-based award component that is provided through the Long-term Incentive Plan, or LTIP, which the Company adopted in 2015 and which replaced its previous Restricted Stock Plan, or RSP. The objectives under the LTICP are established at the beginning of a performance cycle and are intended to focus management on longer-term strategic goals. The Compensation Committee of the Board of Directors designates participants in the LTICP and LTIP and determines the equity-based award opportunity in the form of restricted stock for each performance cycle, which is generally measured on the basis of a one year performance period (the measurement period). The restricted shares are considered issued and outstanding when the number of shares becomes fixed, after the annual performance is determined, and such awards vest at the end of the performance year or some predetermined period thereafter. The Company recognizes compensation expense with an offsetting credit to additional paid-in-capital over the performance period based on the fair value of the award at the date of grant, with compensation expense being adjusted cumulatively based on the number of shares expected to be earned according to the level of achievement of performance goals. |
Fair Value Option | Fair Value Option The Company has not elected to measure its financial instruments or certain commitments at fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" (Topic 606). This guidance specifies how and when an entity will recognize revenue arising from contracts with customers and requires entities to disclose information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this ASU effective January 1, 2018, utilizing the modified retrospective transition approach upon adoption. This approach required an adjustment upon adoption to the financial statements to reflect the cumulative impact of the guidance and results in no change to prior period financial statements. The guidance in this update was applied to all contracts that were not completed at the date of adoption. Based on the evaluation of the provisions included in the new guidance, along with the related updates discussed below, the adoption of this standard resulted in a cumulative-effect adjustment directly to retained earnings of $0.5 million as of January 1, 2018. The adoption of this guidance did not materially impact the amount or timing of revenues recognized in the consolidated financial statements or materially affect our financial position. See Note 3 . Revenue Recognition for further discussion. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification." The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance was effective for annual reporting periods beginning after December 15, 2018, and interim periods thereafter. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842) - Targeted Improvements," providing companies with the option to adopt the provisions of the standard prospectively without adjusting comparative periods; the Company has elected this option for transition and adopted the standard on January 1, 2019. The Company adopted the transition package of practical expedients permitted within the new standard, which among other things, allows the Company to carryforward historical lease classifications. In addition, the Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company made an accounting policy election that will keep leases with an initial term of 12 months or less off of the balance sheet and will result in recognition of those lease payments in the consolidated statements of income on a straight-line basis over the lease term. The impact of the adoption of this standard to the consolidated balance sheets resulted in approximately $25 million in right-of-use assets and corresponding lease obligation liabilities of approximately $27 million as of January 1, 2019. Adoption resulted in an immaterial cumulative-effect adjustment to the opening balance of retained earnings and did not materially impact the consolidated statements of income. Additionally, the adoption of the new lease standard did not have an impact on the Company's debt covenant compliance under its current debt and indenture agreements. In March, April and May 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” ASU 2016-11, "Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting," and ASU 2016-12, "Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients," which provide supplemental adoption guidance and clarification to ASU 2014-09. ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company adopted these updates effective January 1, 2018 and adoption of these updates did not materially affect our financial position or materially impact the amount or timing of revenues recognized in the consolidated financial statements, as discussed above. See Note 3 . Revenue Recognition for further discussion. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 718): Intra-Entity Transfers of Assets Other Than Inventory." This standard states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, thus eliminating the exception for an intra-entity transfer of an asset other than inventory. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company adopted this ASU effective January 1, 2018, utilizing the modified retrospective basis transition approach upon adoption. The adoption of this guidance resulted in a cumulative-effect adjustment directly to retained earnings of $2.2 million as of January 1, 2018. In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." The guidance clarifies the definition of a business with the objective of assisting entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. The new update is effective for annual periods beginning after December 15, 2017. The Company adopted this guidance as of January 1, 2018. Adoption of ASU 2017-01 did not have an impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendment eliminates the second step of the analysis that required the measurement of a goodwill impairment by comparing the implied value of a reporting unit’s goodwill and the goodwill’s carrying amount. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently in the process of evaluating the impact of the pronouncement and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendment requires an employer to report the service cost component in the same line item or line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal from operations. This guidance is effective for annual periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018, utilizing the retrospective transition approach upon adoption. The adoption of this guidance resulted in a reclassification of the components of net periodic pension cost, other than service cost, from Cost of products sold and General expense to Other (expense) income, net, in the Consolidated Statements of Income. The reclassification of these costs affects only the EP segment, as there are no pension costs associated with the AMS segment. For the year ended December 31, 2017, $3.6 million in pension expense were reclassified from Operating profit to Other expense in the consolidated statement of income for the 2017 comparative period. The adoption of this guidance had no effect on Net income in the Consolidated Statements of Income and no effect on the other consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting." This amendment clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company adopted this guidance as of January 1, 2018. Adoption of ASU 2017-09 did not have a material impact on the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This amendment better aligns an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. Early application is permitted and should be applied to hedging relationships existing on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The Company elected to early adopt this guidance as of January 1, 2018. Refer to Note 16 . Derivatives for additional information regarding the impact of adoption of this standard on the Company's financial statements. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This ASU was issued following the enactment of the Tax Act. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act. ASU 2018-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. Early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company adopted this ASU in the fourth quarter of 2018, utilizing the period of adoption basis transition approach. The adoption of this guidance resulted in a cumulative-effect adjustment from Accumulated other comprehensive loss directly to Retained earnings of $4.9 million as of December 31, 2018. In June 2018, the FASB issued ASU 2018-07, "Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting." The amendments in this Update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and make the accounting treatment for employee and nonemployee share-based transactions more consistent. ASU 2018-07 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018. Early adoption is permitted, but no earlier than the entity's adoption date of Topic 606. The Company adopted this ASU on January 1, 2019 and the adoption of this guidance did not have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurements." The new standard modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Company is currently in the process of evaluating the impact of the pronouncement and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." The new standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. The new standard requires the amendments to be applied on a retrospective basis for all periods presented. The Company is currently in the process of evaluating the impact of the pronouncement and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new standard provides updated guidance surrounding implementation costs associated with cloud computing arrangements that are service contracts. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. The Company is currently in the process of evaluating the impact of the pronouncement and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The new standard simplifies income tax accounting requirements by removing certain exceptions to the general principles in Topic 740, Income Taxes. The provisions of this ASU are effective for years beginning after December 15, 2020 with early adoption permitted. The Company is currently in the process of evaluating the impact of the pronouncement and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive Loss | Components of Accumulated other comprehensive (loss) income were as follows ($ in millions): December 31, 2019 2018 Accumulated pension and OPEB liability adjustments, net of income tax benefit of $12.8 million and $11.4 million at December 31, 2019 and 2018, respectively $ (24.3 ) $ (28.2 ) Accumulated unrealized loss on derivative instruments, net of income tax benefit of $1.6 million and $1.6 million at December 31, 2019 and 2018, respectively (3.5 ) (0.6 ) Accumulated unrealized foreign currency translation adjustments, net of income tax benefit of $5.0 million and $1.7 million at December 31, 2019 and 2018, respectively (94.8 ) (95.7 ) Accumulated other comprehensive loss $ (122.6 ) $ (124.5 ) |
Changes in the Components of Accumulated Other Comprehensive Loss | Changes in the components of Accumulated other comprehensive (loss) income were as follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Pre-tax Tax Net of Tax Pension and OPEB liability adjustments $ 2.5 $ 1.4 $ 3.9 $ (0.9 ) $ (2.4 ) $ (3.3 ) $ 15.4 $ (3.8 ) $ 11.6 Derivative instrument adjustments (2.9 ) — (2.9 ) (2.4 ) 1.4 (1.0 ) 5.1 (2.8 ) 2.3 Unrealized foreign currency translation adjustments (2.5 ) 3.4 0.9 (28.0 ) (2.8 ) (30.8 ) 31.5 4.5 36.0 Total $ (2.9 ) $ 4.8 $ 1.9 $ (31.3 ) $ (3.8 ) $ (35.1 ) $ 52.0 $ (2.1 ) $ 49.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Following is the Company’s net sales disaggregated by revenue source ($ in millions). Sales and usage-based taxes are excluded from net sales. For the Years Ended December 31, 2019 2018 2017 AMS EP Total AMS EP Total AMS EP Total Product revenues $ 462.8 $ 484.2 $ 947.0 $ 455.5 $ 500.1 $ 955.6 $ 419.5 $ 464.7 $ 884.2 Materials conversion revenues 8.9 56.4 65.3 8.4 68.2 76.6 11.4 79.3 90.7 Other revenues 5.5 5.0 10.5 4.0 5.1 9.1 2.3 4.9 7.2 Total revenues (1) $ 477.2 $ 545.6 $ 1,022.8 $ 467.9 $ 573.4 $ 1,041.3 $ 433.2 $ 548.9 $ 982.1 (1) Revenues include net hedging gains and losses for the years ended December 31, 2019 , 2018 and 2017 . Net sales are attributed to the following geographic locations based on the location of the Company’s direct customers ($ in millions): For the Years Ended December 31, 2019 2018 2017 AMS EP Total AMS EP Total AMS EP Total United States $ 331.3 $ 182.8 $ 514.1 $ 320.1 $ 193.3 $ 513.4 $ 292.7 $ 176.2 $ 468.9 Europe and the former Commonwealth of Independent States 45.8 172.6 218.4 46.2 214.6 260.8 51.6 208.3 259.9 Asia/Pacific (including China) 77.6 95.0 172.6 76.6 82.8 159.4 66.1 82.3 148.4 Latin America 7.6 45.6 53.2 10.0 43.5 53.5 9.4 48.5 57.9 Other foreign countries 14.9 49.6 64.5 15.0 39.2 54.2 13.4 33.6 47.0 Total revenues (1) $ 477.2 $ 545.6 $ 1,022.8 $ 467.9 $ 573.4 $ 1,041.3 $ 433.2 $ 548.9 $ 982.1 (1) Revenues include net hedging gains and losses for the years ended December 31, 2019 , 2018 and 2017 . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Right-of-Use Assets and Lease Liabilities | Components of right-of-use assets and lease liabilities presented in the balance sheet are as follows ($ in million): Assets Classification December 31, 2019 Operating lease right-of-use assets Other assets $ 20.9 Finance lease right-of-use assets Property, plant and equipment, net 2.9 Total right of use assets $ 23.8 Liabilities Classification December 31, 2019 Current operating lease obligation Accrued expenses and other current liabilities $ 4.9 Long-term operating lease obligation Other liabilities 17.2 Total operating lease obligation $ 22.1 Current finance lease obligation Current debt $ 0.4 Long-term finance lease obligation Long-term debt 2.8 Total finance lease obligation $ 3.2 December 31, 2019 Assets Finance Operating Total Land and improvements $ — $ 0.1 $ 0.1 Buildings and improvements 2.9 21.8 24.7 Machinery and equipment 0.7 4.5 5.2 Gross property, plant and equipment 3.6 26.4 30.0 Less: Accumulated depreciation (0.7 ) (5.5 ) (6.2 ) Right-of-use assets $ 2.9 $ 20.9 $ 23.8 |
Components of Lease Expense, Lease Term and Discount Rate and Other Information | Components of lease expense incurred by the Company are as follow ($ in millions): Lease Cost Year Ended December 31, 2019 Finance lease cost (cost resulting from lease payments) Interest expense on lease liabilities $ 0.2 Amortization of right-of-use assets 0.4 Operating lease cost 6.2 Short-term lease expense 0.3 Variable lease expense — Sublease income — Total Lease Cost $ 7.1 Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.7 Finance leases 7.3 Weighted-average discount rate Operating leases 6.49 % Finance leases 5.27 % Other Information (millions) Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases 6.3 Operating cash flows from finance leases 0.3 Financing cash flows from finance leases 0.2 Leased assets obtained in exchange for new finance lease liabilities 0.6 Leased assets obtained in exchange for new operating lease liabilities 3.3 |
Maturity of Lease Liabilities, Finance Leases | The following table represents future contractual lease liabilities for the next five years and thereafter for finance and operating leases ($ in millions): Maturity of Lease Liabilities Finance Operating Total 2020 $ 0.6 6.2 $ 6.8 2021 0.6 5.2 5.8 2022 0.5 4.0 4.5 2023 0.5 2.8 3.3 2024 0.5 2.3 2.8 Thereafter 1.4 7.0 8.4 Total Lease Payments $ 4.1 $ 27.5 $ 31.6 Less: Interest 0.9 5.4 6.3 Present Value of Lease Liabilities $ 3.2 $ 22.1 $ 25.3 |
Maturity of Lease Liabilities, Operating Leases | The following table represents future contractual lease liabilities for the next five years and thereafter for finance and operating leases ($ in millions): Maturity of Lease Liabilities Finance Operating Total 2020 $ 0.6 6.2 $ 6.8 2021 0.6 5.2 5.8 2022 0.5 4.0 4.5 2023 0.5 2.8 3.3 2024 0.5 2.3 2.8 Thereafter 1.4 7.0 8.4 Total Lease Payments $ 4.1 $ 27.5 $ 31.6 Less: Interest 0.9 5.4 6.3 Present Value of Lease Liabilities $ 3.2 $ 22.1 $ 25.3 |
Future Minimum Obligations Under Non-Cancelable Operating Leases | Future minimum obligations under non-cancelable operating leases having an initial or remaining term in excess of one year as of December 31, 2018 were as follows ($ in millions): 2019 $ 5.8 2020 5.0 2021 4.4 2022 3.6 2023 3.0 Thereafter 8.1 Total $ 29.9 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The consideration paid for Conwed and the final fair values of the assets acquired and liabilities assumed as of the January 20, 2017 acquisition date were as follows ($ in millions): Fair Value as of January 20, 2017 Cash and cash equivalents $ 3.3 Accounts receivable 15.4 Inventory 20.6 Other current assets 1.1 Property, plant and equipment 31.7 Identifiable intangible assets 134.4 Total assets 206.5 Accounts payable 8.2 Deferred tax liabilities 0.9 Net assets acquired 197.4 Goodwill 106.2 Total consideration $ 303.6 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table shows the fair values assigned to intangible assets ($ in millions): Fair Value as of January 20, 2017 Weighted-Average Amortization Period (Years) Amortizable intangible assets: Customer relationships $ 108.0 15.0 Developed technology 18.1 17.2 Non-competition agreements 1.2 7.2 Total amortizable intangible assets 127.3 Indefinite-lived intangible assets: Trade names 7.1 Indefinite Total $ 134.4 |
Actual and Pro Forma Net Sales and Income from Continuing Operations | The amounts of Net sales and Income from continuing operations of Conwed included in the Company's consolidated income statement from the acquisition date are as follows ($ in millions): Net Sales Income from Continuing Operations January 21, 2017 - December 31, 2017 $ 141.3 $ 11.9 The amounts of the unaudited pro forma Net sales and Income from continuing operations of the combined entity had the acquisition date been January 1, 2017 are as follows ($ in millions): Net Sales Income from Continuing Operations 2017 Supplemental Pro Forma from January 1, 2017 - December 31, 2017 $ 989.8 $ 31.1 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Included in Other Assets and Accrued Expenses within the Consolidated Balance Sheets were the following major classes of assets and liabilities, respectively, associated with the discontinued operations ($ in millions): December 31, 2019 December 31, 2018 Assets of discontinued operations: Current assets $ 0.8 $ 0.8 Other assets 1.2 1.2 Liabilities of discontinued operations: Current liabilities 0.1 0.1 Summary financial results of discontinued operations were as follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Net sales $ — $ — $ — Other (expense) income — (0.3 ) 0.1 (Loss) gain from discontinued operations before income taxes — (0.3 ) 0.1 Income tax (provision) benefit — — — (Loss) gain from discontinued operations $ — $ (0.3 ) $ 0.1 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net are summarized as follows ($ in millions): December 31, 2019 2018 Trade receivables $ 114.6 $ 130.9 Business tax credits, including VAT 5.2 4.0 Hedge contracts receivable 4.9 2.1 Other receivables 20.0 19.3 Less allowance for doubtful accounts and sales discounts (1.5 ) (1.7 ) Total accounts receivable, net $ 143.2 $ 154.6 Analysis of Allowances for Doubtful Accounts: ($ in millions) For the Years Ended December 31, 2019 2018 2017 Allowance for Doubtful Accounts Beginning balance $ 1.7 $ 1.0 $ 0.8 Bad debt expense 0.4 1.2 0.8 Recoveries (0.3 ) (0.2 ) — Write-offs and discounts (0.3 ) (0.3 ) (0.6 ) Ending balance $ 1.5 $ 1.7 $ 1.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories by Major Class | The following schedule details inventories by major class ($ in millions): December 31, 2019 2018 Raw materials $ 61.1 $ 50.2 Work in process 20.7 22.4 Finished goods 65.3 69.9 Supplies and other 14.3 9.0 Total $ 161.4 $ 151.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment (and related depreciable lives) consisted of the following ($ in millions): December 31, 2019 2018 Land and improvements $ 14.8 $ 15.0 Buildings and improvements (20 to 40 years or remaining life of relevant lease) 142.3 142.0 Machinery and equipment (5 to 20 years) 622.6 620.9 Construction in progress 24.0 14.6 Gross property, plant and equipment 803.7 792.5 Less: Accumulated depreciation 473.4 452.2 Property, plant and equipment, net $ 330.3 $ 340.3 |
Joint Ventures (Tables)
Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Balance Sheet Information | Below is summarized balance sheet information of the China joint ventures as of December 31, 2019 and 2018 ($ in millions): December 31, 2019 2018 Current assets $ 99.4 $ 116.7 Noncurrent assets 168.0 183.6 Current liabilities 43.1 65.3 Long-term liabilities 88.4 100.9 Stockholder's equity 135.9 134.1 |
Summarized Statement of Operations Information | Below is summarized statement of operations information of the China joint ventures for the years ended December 31, 2019 , 2018 and 2017 ($ in millions): For the Years Ended December 31, 2019 2018 2017 Net sales $ 103.5 $ 109.7 $ 105.0 Gross profit 32.2 33.4 29.1 Net income 8.3 7.4 4.9 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for each reportable segment were as follows ($ in millions): Advanced Materials & Structures Engineered Papers Total Goodwill as of December 31, 2017 $ 336.1 $ 5.2 $ 341.3 Foreign currency translation adjustments (3.0 ) (0.2 ) (3.2 ) Goodwill as of December 31, 2018 $ 333.1 $ 5.0 $ 338.1 Foreign currency translation adjustments (0.6 ) (0.1 ) (0.7 ) Goodwill as of December 31, 2019 $ 332.5 $ 4.9 $ 337.4 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortized Intangible Assets | The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): December 31, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 67.7 $ — $ 1.8 $ 206.8 Developed technology 34.0 10.9 — 0.4 22.7 Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 2.2 — — 0.7 Patents 1.5 0.4 — — 1.1 Total $ 336.5 $ 82.0 $ 20.7 $ 2.5 $ 231.3 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ 0.1 $ — $ 19.9 December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 50.4 $ — $ 0.7 $ 225.2 Developed technology 34.0 8.5 — 0.2 25.3 Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 1.7 — — 1.2 Patents 1.5 0.4 — — 1.1 Total $ 336.5 $ 61.8 $ 20.7 $ 1.2 $ 252.8 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ 0.1 $ (0.1 ) $ 20.0 |
Schedule of Unamortized Intangible Assets | The gross carrying amount and accumulated amortization for intangible assets consisted of the following ($ in millions): December 31, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 67.7 $ — $ 1.8 $ 206.8 Developed technology 34.0 10.9 — 0.4 22.7 Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 2.2 — — 0.7 Patents 1.5 0.4 — — 1.1 Total $ 336.5 $ 82.0 $ 20.7 $ 2.5 $ 231.3 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ 0.1 $ — $ 19.9 December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairments Accumulated Foreign Exchange Net Carrying Amount Amortized Intangible Assets Advanced Materials & Structures Customer relationships $ 276.3 $ 50.4 $ — $ 0.7 $ 225.2 Developed technology 34.0 8.5 — 0.2 25.3 Trade names 21.8 0.8 20.7 0.3 — Non-compete agreements 2.9 1.7 — — 1.2 Patents 1.5 0.4 — — 1.1 Total $ 336.5 $ 61.8 $ 20.7 $ 1.2 $ 252.8 Unamortized Intangible Assets (Advanced Materials & Structures) Trade names $ 20.0 $ — $ 0.1 $ (0.1 ) $ 20.0 |
Schedule of Future Amortization Expense | The following table shows the estimated aggregate amortization expense for the next five years ($ in millions): For the year ending December 31, Estimated Amortization Expense 2020 $ 19.9 2021 19.9 2022 19.9 2023 19.6 2024 19.2 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following ($ in millions): December 31, 2019 2018 Capitalized software costs, net of accumulated amortization $ 11.9 $ 8.3 Business tax credits, including VAT and ICMS (net of $12.1 million and $11.5 million reserve as of December 31, 2019 and 2018, respectively) — 1.2 Grantor trust assets 14.7 10.9 Net pension assets 5.9 0.8 Long-term supplies inventory 6.9 6.8 Operating lease assets 20.9 — Other assets 8.9 5.9 Total $ 69.2 $ 33.9 |
Restructuring and Impairment _2
Restructuring and Impairment Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Changes in Restructuring Liabilities | Changes in the restructuring liabilities, substantially all of which are employee-related, are summarized as follows ($ in millions): 2019 2018 Balance at beginning of year $ 1.4 $ 1.7 Accruals for announced programs 3.7 1.3 Cash payments (4.2 ) (3.3 ) Other (0.4 ) 1.8 Exchange rate impacts — (0.1 ) Balance at end of period $ 0.5 $ 1.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Total Debt | Total debt, net of debt issuance costs, is summarized in the following table ($ in millions): December 31, December 31, Revolving credit agreement - U.S. dollar borrowings $ — $ 76.0 Term loan facility 197.5 199.5 6.875% senior unsecured notes due October 1, 2026, net of discount of $6.9 million and $7.6 million as of December 31, 2019 and December 31, 2018, respectively 343.1 342.4 French employee profit sharing 4.8 6.6 Finance lease obligations 1 3.2 4.7 Other — 0.1 Debt issuance costs (5.9 ) (7.2 ) Total debt 542.7 622.1 Less: Current debt (1.9 ) (3.3 ) Long-term debt $ 540.8 $ 618.8 1 The Company adopted the guidance contained in ASC 842, Leases, on January 1, 2019 using the modified retrospective approach permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements. The comparative period presented in the consolidated financial statements for 2018 continue to be presented in accordance with previous GAAP as codified in ASC 840, Leases. 2018 lease obligations in the above table were long-term capital leases obligations. |
Schedule of Maturities of Long-term Debt | Following are the expected maturities for the Company's debt obligations as of December 31, 2019 ($ in millions): 2020 $ 2.8 2021 3.5 2022 3.5 2023 2.8 2024 2.1 Thereafter 537.5 Total * $ 552.2 * The expected maturities for the Company's debt obligations excludes finance lease obligations. Additional information regarding the future contractual lease liabilities for the next five years and thereafter for finance leases is included in Note 4. Leases, of the Notes to Consolidated Financial Statements. |
Schedule of Amortization of Debt Issuance Costs | Following is the expected future amortization of the Company's deferred debt issuance costs as of December 31, 2019 ($ in millions): 2020 $ 1.2 2021 1.2 2022 1.2 2023 1.0 2024 0.4 Thereafter 0.9 Total $ 5.9 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives by Balance Sheet Location | The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2019 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedges: Foreign exchange contracts Accounts receivable $ 4.8 Accrued expenses $ 5.6 Foreign exchange contracts Other assets 6.3 Other liabilities 5.5 Interest rate contracts Accounts receivable — Accrued expenses 0.2 Interest rate contracts Other assets — Other liabilities — Total derivatives designated as hedges $ 11.1 $ 11.3 Derivatives not designated as hedges: Foreign exchange contracts Accounts receivable $ 0.1 Accounts payable $ — Total derivatives not designated as hedges 0.1 — Total derivatives $ 11.2 $ 11.3 The following table presents the fair value of asset and liability derivatives and the respective balance sheet locations at December 31, 2018 ($ in millions): Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated as Hedges: Foreign exchange contracts Accounts receivable $ 2.0 Accrued expenses $ 1.3 Foreign exchange contracts Other assets 1.0 Other liabilities 8.8 Interest rate contracts Other assets 1.8 Other liabilities — Total derivatives designated as hedges $ 4.8 $ 10.1 Derivatives not designated as hedges: Foreign exchange contracts Accounts Receivable 0.1 Accounts Payable — Total derivatives not designated as hedges 0.1 — Total derivatives $ 4.9 $ 10.1 |
Derivatives by Income Statement Location | The following table provides the gross effect that derivative instruments in cash flow hedging relationships had on accumulated other comprehensive income (loss), or AOCI, and results of operations ($ in millions): Derivatives Designated as Cash Flow Hedging Relationships Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, Location of Loss (Gain) Reclassified from AOCI Loss (Gain) Reclassified from AOCI, Net of Tax 2019 2018 2017 2019 2018 2017 Foreign exchange contracts $ (0.7 ) $ (1.7 ) $ 2.2 Net sales $ (1.2 ) $ 0.8 $ 0.4 Foreign exchange contracts (2.3 ) 0.1 (0.6 ) Other income, net (1.9 ) 0.1 0.5 Interest rate contracts 4.6 4.0 0.4 Interest expense 7.6 2.8 (1.2 ) Total $ 1.6 $ 2.4 $ 2.0 $ 4.5 $ 3.7 $ (0.3 ) |
Effect of Derivative Instruments Not Designated As Hedging Instruments | The following table provides the effect derivative instruments not designated as hedging instruments had on net income ($ in millions): Derivatives Not Designated as Cash Flow Hedging Instruments Amount of Gain / (Loss) Recognized in Other Income / Expense 2019 2018 2017 Foreign exchange contracts $ 1.1 $ (2.5 ) $ 2.7 Total $ 1.1 $ (2.5 ) $ 2.7 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consisted of the following ($ in millions): December 31, 2019 2018 Accrued salaries, wages and employee benefits $ 46.1 $ 43.1 Other accrued expenses 40.4 29.8 Total $ 86.5 $ 72.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | For financial reporting purposes, income before income taxes includes the following components ($ in millions): For the Years Ended December 31, 2019 2018 2017 United States $ 60.0 $ 55.8 $ 42.6 Foreign 36.9 61.0 58.9 Total $ 96.9 $ 116.8 $ 101.5 |
Schedule of Components of Income Tax Expense (Benefit), Continuing Operations | An analysis of the provision (benefit) for income taxes from continuing operations follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Current income taxes: U.S. federal $ 8.1 $ (9.2 ) $ 53.2 U.S. state 0.8 0.8 0.6 Foreign 9.7 11.6 14.2 18.6 3.2 68.0 Deferred income taxes: U.S. federal 2.3 3.6 (1.3 ) U.S. state (1.9 ) 1.4 2.9 Foreign (3.8 ) 2.5 — (3.4 ) 7.5 1.6 Total $ 15.2 $ 10.7 $ 69.6 |
Schedule of Reconciliation of Income Tax Rate | A reconciliation of income taxes computed at the U.S. Federal statutory income tax rate to the provision for income taxes is as follows ($ in millions): For the Years Ended December 31, 2019 2018 2017 Amount Percent Amount Percent Amount Percent Tax provision at U.S. statutory rate $ 20.3 21.0 % $ 24.5 21.0 % $ 35.6 35.0 % Foreign income tax rate differential 0.6 0.5 2.5 2.2 (3.3 ) (3.3 ) Income from passthrough entities 1.7 1.6 0.7 0.6 6.4 6.4 Global intangible low tax inclusion (0.1 ) (0.1 ) 7.0 6.0 — — Foreign derived intangible income (0.2 ) (0.2 ) (4.2 ) (3.6 ) — — State income tax, net of federal benefit (0.2 ) (0.2 ) 1.7 1.5 2.7 2.6 Adjustments to valuation allowances (3.7 ) (3.8 ) (2.5 ) (2.1 ) (2.8 ) (2.8 ) Transition tax (0.7 ) (0.6 ) (11.6 ) (10.0 ) 51.4 50.6 Other tax credits (2.0 ) (2.1 ) (2.6 ) (2.3 ) (2.3 ) (2.3 ) Foreign tax credits (3.5 ) (3.6 ) (5.1 ) (4.4 ) (9.2 ) (9.0 ) Other foreign operational taxes 2.9 3.0 3.1 2.7 4.2 4.2 Domestic production deduction — — — — (2.4 ) (2.3 ) Remeasurement of deferred taxes due to tax law 0.9 1.0 (1.8 ) (1.5 ) (11.8 ) (11.7 ) Non-deductible compensation 1.1 1.1 0.4 0.3 — — Other, net (1.9 ) (1.9 ) (1.4 ) (1.2 ) 1.1 1.2 Provision for income taxes $ 15.2 15.7 % $ 10.7 9.2 % $ 69.6 68.6 % |
Schedule of Deferred Tax Assets (Liabilities) | Net deferred income tax assets (liabilities) were comprised of the following ($ in millions): December 31, 2019 2018 Deferred Tax Assets Receivable allowances $ 0.4 $ 0.8 Inventory and other assets — 1.1 Postretirement and other employee benefits 19.0 14.8 Derivatives 0.1 — Net operating loss and tax credit carryforwards 93.7 93.3 Capital loss carryforward 6.9 — Investment in subsidiaries — 5.6 Intangibles 45.7 60.0 Other 3.9 1.2 169.7 176.8 Less: Valuation allowance (157.4 ) (172.1 ) Net deferred income tax assets $ 12.3 $ 4.7 Deferred Tax Liabilities Net property, plant and equipment $ (52.6 ) $ (51.9 ) Accruals and other liabilities (0.6 ) (0.2 ) Investment in subsidiaries (3.5 ) — Derivatives — (0.3 ) Other (0.1 ) — Net deferred income tax liabilities $ (56.8 ) $ (52.4 ) Total net deferred income tax liabilities $ (44.5 ) $ (47.7 ) |
Summary of Operating Loss Carryforwards | As of December 31, 2019 the Company had approximately $90.5 million of tax-effected operating loss carryforwards available to further reduce future taxable income in various jurisdictions which will expire on various dates as follows: 2019 2020-2023 $ 0.2 2024-2035 15.3 Indefinite 75.0 $ 90.5 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the Company's unrecognized tax benefits related to income taxes ($ in millions): December 31, 2019 2018 2017 Uncertain tax position balance at beginning of year $ 1.1 $ 1.0 $ 2.4 Increases related to current year tax positions 0.6 0.6 0.3 Increases related to prior year tax positions — — 0.4 Decreases related to prior year tax positions — (0.2 ) (2.0 ) Decreases related to expiration of statute of limitations — (0.3 ) (0.1 ) Uncertain tax position balance at end of year $ 1.7 $ 1.1 $ 1.0 |
Summary of Income Tax Examinations | The following tax years remain subject to examination by the respective major tax jurisdictions: Jurisdiction Fiscal Years Belgium 2017-2019 Brazil 2014-2019 Canada 2015-2019 China 2017-2019 France 2016-2019 Germany 2015-2019 Hong Kong 2013-2019 Luxembourg 2014-2019 Philippines 2016-2019 Poland 2013-2019 Spain 2015-2019 United Kingdom 2016-2019 United States Federal 2016-2019 State 2014-2019 |
Postretirement and Other Bene_2
Postretirement and Other Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The funded status of these plans as of December 31, 2019 and 2018 was as follows ($ in millions): Pension Benefits OPEB Benefits United States France United States 2019 2018 2019 2018 2019 2018 Change in Projected Benefit Obligation, or PBO: PBO at beginning of year $ 112.3 $ 124.1 $ 29.5 $ 30.5 $ 1.2 $ 1.4 Service cost — — 1.0 1.1 — — Interest cost 4.6 4.3 0.4 0.4 0.1 0.1 Actuarial loss (gain) 11.1 (8.2 ) 3.2 0.9 0.1 (0.2 ) Participant contributions — — 0.7 1.0 0.1 0.1 Gross benefits paid (8.1 ) (7.9 ) (2.3 ) (3.0 ) (0.1 ) (0.2 ) Currency translation effect — — (0.6 ) (1.4 ) — — PBO at end of year $ 119.9 $ 112.3 $ 31.9 $ 29.5 $ 1.4 $ 1.2 Change in Plan Assets: Fair value of plan assets at beginning of year $ 113.1 $ 128.7 $ 2.1 $ 3.2 $ — $ — Actual return on plan assets 20.8 (7.6 ) 0.2 (0.7 ) — — Employer contributions — — 1.1 1.2 — — Participant contributions — — — — 0.1 0.2 Gross benefits paid (8.1 ) (8.0 ) (2.3 ) (1.5 ) (0.1 ) (0.2 ) Currency translation effect — — — (0.1 ) — — Fair value of plan assets at end of year $ 125.8 $ 113.1 $ 1.1 $ 2.1 $ — $ — Funded status at end of year $ 5.9 $ 0.8 $ (30.8 ) $ (27.4 ) $ (1.4 ) $ (1.2 ) |
Schedule of Accumulated Benefit Obligations and PBO excess of Fair Value of Pension Plan Assets | The PBO, ABO and fair value of pension plan assets for the Company's U.S. and French defined benefit pension plans as of December 31, 2019 and 2018 as follows ($ in millions): United States France 2019 2018 2019 2018 PBO $ 119.9 $ 112.3 $ 31.9 $ 29.5 ABO 119.9 112.3 31.9 24.9 Fair value of plan assets 125.8 113.1 1.1 2.1 |
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income | As of December 31, 2019 , the pre-tax amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost for the U.S. and French pension plans and other postretirement benefit plans in the United States are as follows ($ in millions): Pension Benefits OPEB Benefits United States France United States Accumulated loss $ 23.3 $ 15.2 $ 0.2 Prior service credit — (2.6 ) — Accumulated other comprehensive loss $ 23.3 $ 12.6 $ 0.2 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts in accumulated other comprehensive loss at December 31, 2019 , which are expected to be recognized as components of U.S. and French net periodic benefit cost in 2020 are as follows ($ in millions): Pension Benefits OPEB Benefits United States France United States Amortization of accumulated loss $ (3.5 ) $ (1.2 ) $ — Amortization of prior service credit — 0.3 — Total $ (3.5 ) $ (0.9 ) $ — |
Schedule of Assumptions Used | The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2019 , 2018 and 2017 were as follows: Pension Benefits OPEB Benefits United States France United States 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.29 % 3.60 % 4.11 % 1.28 % 1.28 % 1.14 % 4.30 % 3.59 % 4.09 % Expected long-term rate of return on plan assets 5.14 % 5.00 % 5.56 % 3.00 % 3.00 % 3.00 % — % — % — % Rate of compensation increase — % — % — % 1.96 % 1.75 % 1.75 % 3.50 % 3.50 % 3.50 % December 31, 2019 and 2018 were as follows: Pension Benefits OPEB Benefits United States France United States 2019 2018 2019 2018 2019 2018 Discount rate 3.20 % 4.29 % 0.53 % 1.28 % 3.21 % 4.30 % Rate of compensation increase — % — % 1.96 % 1.75 % 3.50 % 3.50 % |
Schedule of Net Benefit Costs | The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the years ended December 31, 2019 , 2018 and 2017 were as follows ($ in millions): U.S. Pension Benefits French Pension Benefits U.S. OPEB Benefits 2019 2018 2017 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 1.0 $ 1.1 $ 1.1 $ — $ — $ — Interest cost 4.6 4.3 4.8 0.4 0.4 0.4 0.1 0.1 0.1 Expected return on plan assets (5.8 ) (5.8 ) (6.4 ) (0.1 ) (0.1 ) (0.2 ) — — — Amortizations and other 2.0 3.2 3.2 0.9 1.1 1.4 — 0.1 0.2 Net periodic benefit cost $ 0.8 $ 1.7 $ 1.6 $ 2.2 $ 2.5 $ 2.7 $ 0.1 $ 0.2 $ 0.3 |
Schedule of Allocation of Plan Assets | The U.S. and French pension plans' asset target allocations by asset category for 2020 and actual allocations by asset category at December 31, 2019 and 2018 were as follows: United States France 2020 Target 2019 2018 2019 2018 Asset Category Cash and cash equivalents — % 1 % 1 % 41 % 43 % Equity securities* Domestic large cap 9 5 5 31 28 Domestic small cap 5 3 3 — — International 10 15 14 — — Fixed income securities 76 76 77 26 27 Alternative investments** — — — 2 2 Total 100 % 100 % 100 % 100 % 100 % * None of the Company's pension plan assets are targeted for investment in SWM stock, except that it is possible that one or more mutual funds held by the plan could hold shares of SWM. ** Investments in this category under the U.S. pension plan only may include hedge funds, and may include real estate under the French pension plan. The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2019 ($ in millions): United States France Plan Asset Category Total Other* Level 1 Level 2 Level 3 Total Level 1 Level 2 Cash equivalents $ 0.9 $ — $ 0.9 $ — $ — $ 0.4 $ 0.4 $ — Equity securities Domestic large cap 6.8 6.8 — — — 0.3 0.3 — Domestic small cap 4.3 4.3 — — — — — — International 19.1 19.1 — — — — — — Fixed income securities 94.7 44.4 — 50.3 — 0.3 — 0.3 Alternative investments** — — — — — 0.1 — 0.1 Total $ 125.8 $ 74.6 $ 0.9 $ 50.3 $ — $ 1.1 $ 0.7 $ 0.4 The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2018 ($ in millions): United States France Plan Asset Category Total Other* Level 1 Level 2 Level 3 Total Level 1 Level 2 Cash equivalents $ 1.0 $ — $ 1.0 $ — $ — $ 0.9 $ 0.9 $ — Equity securities Domestic large cap 5.7 5.7 — — — 0.6 0.6 — Domestic small cap 3.3 3.3 — — — — — — International 15.5 15.5 — — — — — — Fixed income securities 87.6 41.2 — 46.4 — 0.5 — 0.5 Alternative investments** — — — — — 0.1 — 0.1 Total $ 113.1 $ 65.7 $ 1.0 $ 46.4 $ — $ 2.1 $ 1.5 $ 0.6 * Assets are measured at Net Asset Value ("NAV") as a practical expedient and not subject to hierarchy level classification disclosure. ** Alternative investments include ownership interests in shares of registered investment companies. |
Schedule of Changes in Plan Assets | The following table shows the changes in Level 3 asset values ($ in millions): Level 3 Asset Reconciliation Alternative Investments Total Beginning balance, January 1, 2018 $ 0.1 Realized and unrealized gains — Purchases — Sales (0.1 ) Ending balance, December 31, 2018 $ — Realized and unrealized gains — Purchases — Sales — Ending balance, December 31, 2019 $ — |
Schedule of Expected Benefit Payments | The Company expects the following estimated undiscounted future pension benefit payments for the United States and France and future postretirement healthcare and life insurance benefit payments for the United States, which are to be made from pension plan and employer assets, net of amounts that will be funded from retiree contributions, and which reflect expected future service, as appropriate ($ in millions): United States France Pension Benefits Healthcare and Life Insurance Benefits Pension Benefits 2020 $ 8.5 $ 0.2 $ 1.6 2021 8.4 0.2 1.0 2022 8.4 0.1 0.6 2023 8.1 0.1 1.7 2024 8.0 0.1 1.3 2025 - 2029 37.6 0.3 8.0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Activity | The following table presents restricted stock activity for the years 2019 , 2018 and 2017 : 2019 2018 2017 # of Shares Weighted Average Fair Value at Date of Grant # of Shares Weighted Average Fair Value at Date of Grant # of Shares Weighted Average Fair Value at Date of Grant Nonvested restricted shares outstanding at January 1 184,190 $ 40.33 283,338 $ 37.26 224,289 $ 41.30 Granted 155,982 35.62 142,475 39.58 216,017 36.03 Forfeited (8,869 ) 41.34 (12,858 ) 40.06 (29,150 ) 42.50 Vested (109,681 ) 40.12 (228,765 ) 35.86 (127,818 ) 41.06 Nonvested restricted shares outstanding at December 31 221,622 $ 37.08 184,190 $ 40.33 283,338 $ 37.26 |
Reconciliation of the Common and Potential Common Shares Outstanding Used in Earnings Per Share Calculation | A reconciliation of the average number of common and potential common shares outstanding used in the calculations of basic and diluted net income per share follows ($ in millions, shares in thousands): For the Years Ended December 31, 2019 2018 2017 Numerator (basic and diluted): Net income $ 85.8 $ 94.5 $ 34.5 Less: Dividends paid to participating securities (0.4 ) (0.3 ) (0.4 ) Less: Undistributed earnings available to participating securities (0.2 ) (0.3 ) — Undistributed and distributed earnings available to common stockholders $ 85.2 $ 93.9 $ 34.1 Denominator: Average number of common shares outstanding 30,652.2 30,551.3 30,407.1 Effect of dilutive stock-based compensation 186.1 141.6 142.2 Average number of common and potential common shares outstanding 30,838.3 30,692.9 30,549.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The amounts recorded in the accompanying consolidated statement of income for the year ended December 31, 2019 related to the above two assessments consist of the following: Year Ended December 31, 2019 Income Statement Classification (Expense) Benefit Cost of products sold 1 $ (1.5 ) Operating profit 1 (1.5 ) Other expense 2 (2.2 ) Interest expense 2 (7.1 ) Income from continuing operations before income taxes (10.8 ) Income tax benefit 4.2 Net income $ (6.6 ) 1 Cost of products sold reflects the net of $2.6 million of expense associated with the Raw Materials Assessment and $1.1 million benefit associated with separate litigation against the Brazilian Instituto Nacional do Seguro Social ("INSS"), the Brazilian Social Security Administration, regarding additional assessments of social security contributions charged to the Company in the early 1990s. This benefit is expected to be received in tax credits to be applied against future payments of social security taxes over the following year. Amounts are reflected in Engineered Papers reporting segment in segment disclosures. 2 Other expense includes penalties and fees associated with the Raw Materials Assessment. Interest expense relates to the Raw Materials Assessment. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segments | ($ in millions) Net Sales For the Years Ended December 31, 2019 2018 2017 Advanced Materials & Structures $ 477.2 46.7 % $ 467.9 44.9 % $ 433.2 44.1 % Engineered Papers 545.6 53.3 573.4 55.1 548.9 55.9 Consolidated $ 1,022.8 100.0 % $ 1,041.3 100.0 % $ 982.1 100.0 % ($ in millions) Operating Profit For the Years Ended December 31, 2019 2018 2017 Advanced Materials & Structures $ 64.3 48.0 % $ 49.5 36.7 % $ 48.5 37.8 % Engineered Papers 119.2 89.0 121.8 90.2 119.7 93.3 Unallocated (49.5 ) (37.0 ) (36.3 ) (26.9 ) (39.9 ) (31.1 ) Consolidated $ 134.0 100.0 % $ 135.0 100.0 % $ 128.3 100.0 % ($ in millions) Segment Assets December 31, 2019 December 31, 2018 December 31, 2017 Advanced Materials & Structures $ 781.2 $ 796.1 $ 811.7 Engineered Papers 512.4 527.4 537.6 Unallocated 178.1 143.0 193.2 Consolidated $ 1,471.7 $ 1,466.5 $ 1,542.5 ($ in millions) Capital Spending Depreciation 2019 2018 2017 2019 2018 2017 Advanced Materials & Structures $ 16.1 $ 15.0 $ 11.5 $ 12.8 $ 14.1 $ 12.3 Engineered Papers 12.0 11.7 25.6 22.8 23.9 23.4 Unallocated 0.5 0.3 0.1 0.2 0.1 — Consolidated $ 28.6 $ 27.0 $ 37.2 $ 35.8 $ 38.1 $ 35.7 |
Net Sales Attributed to Geographic Locations Based on the Location of the Company's Direct Customers | Long-lived assets by geographic area as of year-end were as follows ($ in millions): Long-Lived Assets 2019 2018 2017 United States $ 118.5 $ 115.8 $ 115.0 France 158.8 167.4 181.3 Brazil 19.5 20.8 24.2 Poland 14.7 16.8 21.9 Other foreign countries 30.7 27.7 26.9 Consolidated $ 342.2 $ 348.5 $ 369.3 For the geographic disclosure in the following table, net sales are attributed to geographic locations based on the location of the Company's direct customers ($ in millions): Net Sales 2019 2018 2017 United States $ 514.1 $ 513.4 $ 468.9 Europe and the former Commonwealth of Independent States 218.4 260.8 259.9 Asia-Pacific (including China) 172.6 159.4 148.4 Latin America 53.2 53.5 57.9 Other foreign countries 64.5 54.2 47.0 Consolidated $ 1,022.8 $ 1,041.3 $ 982.1 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for Doubtful Accounts | Accounts receivable, net are summarized as follows ($ in millions): December 31, 2019 2018 Trade receivables $ 114.6 $ 130.9 Business tax credits, including VAT 5.2 4.0 Hedge contracts receivable 4.9 2.1 Other receivables 20.0 19.3 Less allowance for doubtful accounts and sales discounts (1.5 ) (1.7 ) Total accounts receivable, net $ 143.2 $ 154.6 Analysis of Allowances for Doubtful Accounts: ($ in millions) For the Years Ended December 31, 2019 2018 2017 Allowance for Doubtful Accounts Beginning balance $ 1.7 $ 1.0 $ 0.8 Bad debt expense 0.4 1.2 0.8 Recoveries (0.3 ) (0.2 ) — Write-offs and discounts (0.3 ) (0.3 ) (0.6 ) Ending balance $ 1.5 $ 1.7 $ 1.0 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information ($ in millions) For the Years Ended December 31, 2019 2018 2017 Interest paid $ 29.1 $ 24.0 $ 22.7 Income taxes paid 20.8 23.2 38.1 Capital spending in accounts payable and accrued liabilities 5.9 5.0 7.7 Deferred contingent business acquisition consideration — — 8.6 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables summarize the Company's unaudited quarterly financial data for the years ended December 31, 2019 and 2018 ($ in millions, except per share amounts): 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year Net sales $ 258.0 $ 269.9 $ 256.4 $ 238.5 $ 1,022.8 Gross profit 67.9 79.0 72.2 70.9 290.0 Restructuring and impairment expense — 0.4 1.6 1.7 3.7 Operating profit 30.4 44.2 34.6 24.8 134.0 Income from continuing operations 17.4 20.5 27.7 20.2 85.8 Loss from discontinued operations — — — — — Net income $ 17.4 $ 20.5 $ 27.7 $ 20.2 $ 85.8 Net income (loss) per share: Income per share from continuing operations - basic $ 0.57 $ 0.66 $ 0.90 $ 0.65 $ 2.78 Loss per share from discontinued operations - basic — — — — — Net income per share - basic $ 0.57 $ 0.66 $ 0.90 $ 0.65 $ 2.78 Income per share from continuing operations - diluted $ 0.56 $ 0.66 $ 0.90 $ 0.64 $ 2.76 Loss per share from discontinued operations - diluted — — — — — Net income per share - diluted $ 0.56 $ 0.66 $ 0.90 $ 0.64 $ 2.76 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year Net sales $ 261.9 $ 270.4 $ 260.3 $ 248.7 $ 1,041.3 Gross profit 72.0 77.4 65.3 63.8 278.5 Restructuring and impairment expense 0.4 0.6 0.4 0.3 1.7 Operating profit 35.0 42.1 31.1 26.8 135.0 Income from continuing operations 20.9 25.8 40.9 7.2 94.8 (Loss) income from discontinued operations (0.4 ) — 0.1 — (0.3 ) Net income $ 20.5 $ 25.8 $ 41.0 $ 7.2 $ 94.5 Net income (loss) per share: Income per share from continuing operations - basic $ 0.68 $ 0.84 $ 1.33 $ 0.23 $ 3.08 Loss per share from discontinued operations - basic (0.01 ) — — — (0.01 ) Net income per share - basic $ 0.67 $ 0.84 $ 1.33 $ 0.23 $ 3.07 Income per share from continuing operations - diluted $ 0.68 $ 0.83 $ 1.33 $ 0.23 $ 3.07 Loss per share from discontinued operations - diluted (0.01 ) — — — (0.01 ) Net income per share - diluted $ 0.67 $ 0.83 $ 1.33 $ 0.23 $ 3.06 |
General (Details)
General (Details) | 12 Months Ended |
Dec. 31, 2019countryproduction_locationsegmentjoint_venture | |
Schedule of Equity Method Investments [Line Items] | |
Number of operating segments | segment | 2 |
Number of countries in which entity operates (more than) | country | 90 |
Number of production locations | production_location | 22 |
China | |
Schedule of Equity Method Investments [Line Items] | |
Ownership of joint ventures (as a percent) | 50.00% |
Number of joint ventures | joint_venture | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019USD ($)joint_venture | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)joint_venture | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Significant Accounting Policies [Line Items] | |||||||||||||
Total revenues | $ 238.5 | $ 256.4 | $ 269.9 | $ 258 | $ 248.7 | $ 260.3 | $ 270.4 | $ 261.9 | $ 1,022.8 | $ 1,041.3 | $ 982.1 | ||
Foreign currency transaction losses | 1.4 | 1.5 | 3.5 | ||||||||||
Restricted cash | 0.6 | 0.6 | 0.6 | 0.6 | |||||||||
Acquisition costs | $ 0 | 0 | 0.2 | ||||||||||
Software useful life | 7 years | ||||||||||||
Amortization of capitalized software | $ 1.9 | 1.6 | 1.1 | ||||||||||
Accumulated amortization of capitalized software costs | 36.9 | 35.5 | 36.9 | 35.5 | |||||||||
Operating lease right-of-use assets | 20.9 | 20.9 | |||||||||||
Lease liabilities | $ 22.1 | $ 22.1 | |||||||||||
Accounting Standards Update 2016-16 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative-effect adjustment directly to retained earnings | $ 2.2 | ||||||||||||
Accounting Standards Update 2018-02 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative-effect adjustment directly to retained earnings | $ 4.9 | 4.9 | |||||||||||
Accounting Standards Update 2014-09 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative-effect adjustment directly to retained earnings | $ 0.5 | ||||||||||||
Accounting Standards Update 2016-02 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Operating lease right-of-use assets | $ 25 | ||||||||||||
Lease liabilities | $ 27 | ||||||||||||
Accounting Standards Update 2017-07 | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Pension expense reclassified | 3.6 | ||||||||||||
Restricted Stock | Minimum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Share based compensation vesting period (years) | 2 years | ||||||||||||
Restricted Stock | Maximum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Share based compensation vesting period (years) | 4 years | ||||||||||||
Restricted Stock Performance Plan | Minimum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Plan performance period (years) | 1 year | ||||||||||||
Royalty | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Total revenues | $ 6.8 | $ 5.9 | $ 3.9 | ||||||||||
China | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Number of joint ventures | joint_venture | 2 | 2 | |||||||||||
Ownership of joint ventures (as a percent) | 50.00% | 50.00% | |||||||||||
Developed technology | Minimum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life | 4 years | ||||||||||||
Developed technology | Maximum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life | 20 years | ||||||||||||
Customer relationships | Minimum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life | 10 years | ||||||||||||
Customer relationships | Maximum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life | 23 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 597.7 | $ 557.9 | $ 546.7 | $ 508.3 |
Accumulated pension and OPEB liability adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (24.3) | (28.2) | ||
Accumulated other comprehensive loss, Income tax benefit | 12.8 | 11.4 | ||
Accumulated unrealized loss on derivative instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (3.5) | (0.6) | ||
Accumulated other comprehensive loss, Income tax benefit | 1.6 | 1.6 | ||
Accumulated unrealized foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (94.8) | (95.7) | ||
Accumulated other comprehensive loss, Income tax benefit | 5 | 1.7 | ||
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (122.6) | $ (124.5) | $ (89.4) | $ (139.3) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Changes in the Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax | $ (2.9) | $ (31.3) | $ 52 |
Tax | 4.8 | (3.8) | (2.1) |
Other comprehensive income (loss) | 1.9 | (30.2) | 49.9 |
Other comprehensive (loss) income | (35.1) | ||
Pension and OPEB liability adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax | 2.5 | (0.9) | 15.4 |
Tax | 1.4 | (2.4) | (3.8) |
Other comprehensive income (loss) | 3.9 | (3.3) | 11.6 |
Derivative instrument adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax | (2.9) | ||
Tax | 0 | ||
Other comprehensive income (loss) | (2.9) | ||
Derivative instrument adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax | (2.4) | 5.1 | |
Tax | 1.4 | (2.8) | |
Other comprehensive income (loss) | (1) | 2.3 | |
Unrealized foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pre-tax | (2.5) | (28) | 31.5 |
Tax | 3.4 | (2.8) | 4.5 |
Other comprehensive income (loss) | $ 0.9 | (30.8) | $ 36 |
Accounting Standards Update 2018-02 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
New accounting pronouncement or change in accounting principle, cumulative effect of change on equity or net assets | $ 4.9 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 238.5 | $ 256.4 | $ 269.9 | $ 258 | $ 248.7 | $ 260.3 | $ 270.4 | $ 261.9 | $ 1,022.8 | $ 1,041.3 | $ 982.1 |
AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 477.2 | 467.9 | 433.2 | ||||||||
EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 545.6 | 573.4 | 548.9 | ||||||||
United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 514.1 | 513.4 | 468.9 | ||||||||
United States | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 331.3 | 320.1 | 292.7 | ||||||||
United States | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 182.8 | 193.3 | 176.2 | ||||||||
Europe and the former Commonwealth of Independent States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 218.4 | 260.8 | 259.9 | ||||||||
Europe and the former Commonwealth of Independent States | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 45.8 | 46.2 | 51.6 | ||||||||
Europe and the former Commonwealth of Independent States | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 172.6 | 214.6 | 208.3 | ||||||||
Asia/Pacific (including China) | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 172.6 | 159.4 | 148.4 | ||||||||
Asia/Pacific (including China) | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 77.6 | 76.6 | 66.1 | ||||||||
Asia/Pacific (including China) | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 95 | 82.8 | 82.3 | ||||||||
Latin America | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 53.2 | 53.5 | 57.9 | ||||||||
Latin America | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 7.6 | 10 | 9.4 | ||||||||
Latin America | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 45.6 | 43.5 | 48.5 | ||||||||
Other foreign countries | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 64.5 | 54.2 | 47 | ||||||||
Other foreign countries | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 14.9 | 15 | 13.4 | ||||||||
Other foreign countries | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 49.6 | 39.2 | 33.6 | ||||||||
Product revenues | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 947 | 955.6 | 884.2 | ||||||||
Product revenues | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 462.8 | 455.5 | 419.5 | ||||||||
Product revenues | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 484.2 | 500.1 | 464.7 | ||||||||
Materials conversion revenues | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 65.3 | 76.6 | 90.7 | ||||||||
Materials conversion revenues | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 8.9 | 8.4 | 11.4 | ||||||||
Materials conversion revenues | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 56.4 | 68.2 | 79.3 | ||||||||
Other revenues | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 10.5 | 9.1 | 7.2 | ||||||||
Other revenues | AMS | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 5.5 | 4 | 2.3 | ||||||||
Other revenues | EP | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $ 5 | $ 5.1 | $ 4.9 |
Leases - Components of Right-Of
Leases - Components of Right-Of-Use Assets and Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 20.9 |
Finance lease right-of-use assets | 2.9 |
Total right of use assets | 23.8 |
Current operating lease obligation | 4.9 |
Long-term operating lease obligation | 17.2 |
Total operating lease obligation | 22.1 |
Current finance lease obligation | 0.4 |
Long-term finance lease obligation | 2.8 |
Total finance lease obligation | $ 3.2 |
Leases - Components of Right-_2
Leases - Components of Right-of-Use Assets (Details) $ in Millions | Dec. 31, 2019USD ($) |
Finance | |
Gross property, plant and equipment | $ 3.6 |
Less: Accumulated depreciation | (0.7) |
Right-of-use assets | 2.9 |
Operating | |
Gross property, plant and equipment | 26.4 |
Less: Accumulated depreciation | (5.5) |
Right-of-use assets | 20.9 |
Total | |
Gross property, plant and equipment | 30 |
Less: Accumulated depreciation | (6.2) |
Right-of-use assets | 23.8 |
Land and improvements | |
Finance | |
Gross property, plant and equipment | 0 |
Operating | |
Gross property, plant and equipment | 0.1 |
Total | |
Gross property, plant and equipment | 0.1 |
Buildings and improvements | |
Finance | |
Gross property, plant and equipment | 2.9 |
Operating | |
Gross property, plant and equipment | 21.8 |
Total | |
Gross property, plant and equipment | 24.7 |
Machinery and equipment | |
Finance | |
Gross property, plant and equipment | 0.7 |
Operating | |
Gross property, plant and equipment | 4.5 |
Total | |
Gross property, plant and equipment | $ 5.2 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost | |
Interest expense on lease liabilities | $ 0.2 |
Amortization of right-of-use assets | 0.4 |
Operating lease cost | 6.2 |
Short-term lease expense | 0.3 |
Variable lease expense | 0 |
Sublease income | 0 |
Total Lease Cost | $ 7.1 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Finance | |
2020 | $ 0.6 |
2021 | 0.6 |
2022 | 0.5 |
2023 | 0.5 |
2024 | 0.5 |
Thereafter | 1.4 |
Total Lease Payments | 4.1 |
Less: Interest | 0.9 |
Present Value of Lease Liabilities | 3.2 |
Operating | |
2020 | 6.2 |
2021 | 5.2 |
2022 | 4 |
2023 | 2.8 |
2024 | 2.3 |
Thereafter | 7 |
Total Lease Payments | 27.5 |
Less: Interest | 5.4 |
Present Value of Lease Liabilities | 22.1 |
Total | |
2020 | 6.8 |
2021 | 5.8 |
2022 | 4.5 |
2023 | 3.3 |
2024 | 2.8 |
Thereafter | 8.4 |
Total Lease Payments | 31.6 |
Less: Interest | 6.3 |
Present Value of Lease Liabilities | $ 25.3 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Document Period End Date | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 6 years 8 months 12 days |
Finance leases | 7 years 3 months 18 days |
Weighted-average discount rate | |
Operating leases | 6.49% |
Finance leases | 5.27% |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 6.3 |
Operating cash flows from finance leases | 0.3 |
Financing cash flows from finance leases | 0.2 |
Leased assets obtained in exchange for new finance lease liabilities | 0.6 |
Leased assets obtained in exchange for new operating lease liabilities | $ 3.3 |
Leases - Future Minimum Obligat
Leases - Future Minimum Obligations Under Non-Cancelable Operating Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 5.8 |
2020 | 5 |
2021 | 4.4 |
2022 | 3.6 |
2023 | 3 |
Thereafter | 8.1 |
Total | $ 29.9 |
Leases - Rental Expenses (Detai
Leases - Rental Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Operating lease expense | $ 6.7 | $ 6.4 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) | Jan. 20, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Change in fair value of contingent consideration | $ 0 | $ (10,200,000) | $ 0 | |
Payments for contingent consideration | 0 | |||
Conwed | ||||
Business Acquisition [Line Items] | ||||
Purchase price of acquisition | $ 295,000,000 | |||
Potential earn-out payments | 40,000,000 | 10,200,000 | ||
Fair value of potential earn-out payments | 8,600,000 | |||
Total consideration transferred | 303,600,000 | |||
Fair value of the contingent liability | 0 | 9,500,000 | ||
Change in fair value of contingent consideration | 700,000 | |||
Gain recognized in Other income, net | 10,200,000 | |||
Fair value of receivables acquired | 15,400,000 | |||
Gross contractual amounts receivable | 15,800,000 | |||
Inventory | 20,600,000 | |||
Financing costs related to the acquisition | 600,000 | |||
Fair Value Adjustment to Inventory | Conwed | ||||
Business Acquisition [Line Items] | ||||
Inventory | $ 2,900,000 | |||
Acquisition-related Costs | Conwed | ||||
Business Acquisition [Line Items] | ||||
Direct and indirect acquisition-related costs | $ 0 | $ 0 | $ 200,000 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 20, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 337.4 | $ 338.1 | $ 341.3 | |
Conwed | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 3.3 | |||
Accounts receivable | 15.4 | |||
Inventory | 20.6 | |||
Other current assets | 1.1 | |||
Property, plant and equipment | 31.7 | |||
Identifiable intangible assets | 134.4 | |||
Total assets | 206.5 | |||
Accounts payable | 8.2 | |||
Deferred tax liabilities | 0.9 | |||
Net assets acquired | 197.4 | |||
Goodwill | 106.2 | |||
Total consideration | $ 303.6 |
Business Acquisitions - Finite-
Business Acquisitions - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Conwed $ in Millions | Jan. 20, 2017USD ($) |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 134.4 |
Trade names | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | 7.1 |
Total amortizable intangible assets | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | 127.3 |
Customer relationships | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 108 |
Weighted-Average Amortization Period (Years) | 15 years |
Developed technology | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 18.1 |
Weighted-Average Amortization Period (Years) | 17 years 2 months 12 days |
Non-competition agreements | |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value | $ 1.2 |
Weighted-Average Amortization Period (Years) | 7 years 2 months 12 days |
Business Acquisitions - Actual
Business Acquisitions - Actual and Pro Forma Net Sales and Income from Continuing Operations (Details) - Conwed - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net Sales, Actual | $ 141.3 | |
Net Sales, Pro Forma | $ 989.8 | |
(Loss) Income from Continuing Operations, Actual | $ 11.9 | |
(Loss) Income from Continuing Operations, Pro Forma | $ 31.1 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets of discontinued operations: | |||||||||||
Current assets | $ 0 | $ 12 | $ 0 | $ 12 | |||||||
Liabilities of discontinued operations: | |||||||||||
(Loss) gain from discontinued operations | 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0.1 | $ 0 | $ (0.4) | 0 | (0.3) | $ 0.1 |
Plant In San Pedro, Philippines | Discontinued Operations, Disposed of by Sale | |||||||||||
Assets of discontinued operations: | |||||||||||
Current assets | 0.8 | 0.8 | 0.8 | 0.8 | |||||||
Other assets | 1.2 | 1.2 | 1.2 | 1.2 | |||||||
Liabilities of discontinued operations: | |||||||||||
Current liabilities | $ 0.1 | $ 0.1 | 0.1 | 0.1 | |||||||
Net sales | 0 | 0 | 0 | ||||||||
Other (expense) income | 0 | (0.3) | |||||||||
Other (expense) income | 0.1 | ||||||||||
(Loss) gain from discontinued operations before income taxes | 0 | (0.3) | 0.1 | ||||||||
Income tax (provision) benefit | 0 | 0 | 0 | ||||||||
(Loss) gain from discontinued operations | $ 0 | $ (0.3) | $ 0.1 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable [Line Items] | ||
Less allowance for doubtful accounts and sales discounts | $ (1.5) | $ (1.7) |
Total accounts receivable, net | 143.2 | 154.6 |
Trade receivables | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | 114.6 | 130.9 |
Business tax credits, including VAT | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | 5.2 | 4 |
Hedge contracts receivable | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | 4.9 | 2.1 |
Other receivables | ||
Accounts Receivable [Line Items] | ||
Accounts receivable, gross | $ 20 | $ 19.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 61.1 | $ 50.2 |
Work in process | 20.7 | 22.4 |
Finished goods | 65.3 | 69.9 |
Supplies and other | 14.3 | 9 |
Total | $ 161.4 | $ 151.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 803.7 | ||
Gross property, plant and equipment | $ 792.5 | ||
Less: Accumulated depreciation | 473.4 | ||
Less: Accumulated depreciation | 452.2 | ||
Property, plant and equipment, net | 330.3 | ||
Property, plant and equipment, net | 340.3 | ||
Depreciation expense | 35.8 | 38.1 | $ 35.7 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 14.8 | ||
Gross property, plant and equipment | 15 | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 142.3 | ||
Gross property, plant and equipment | 142 | ||
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 622.6 | ||
Gross property, plant and equipment | 620.9 | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 24 | ||
Gross property, plant and equipment | $ 14.6 |
Joint Ventures (Details)
Joint Ventures (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)joint_venture | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Equity investment in joint ventures | $ 52.4 | $ 51.9 | |
Impairment charge | 15 | ||
China | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of joint ventures | joint_venture | 2 | ||
Ownership of joint ventures (as a percent) | 50.00% | ||
Other income, net | $ 2.1 | $ 2.2 | $ 2.1 |
Joint Ventures Balance Sheet In
Joint Ventures Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 99.4 | $ 116.7 |
Noncurrent assets | 168 | 183.6 |
Current liabilities | 43.1 | 65.3 |
Long-term liabilities | 88.4 | 100.9 |
Stockholder's equity | $ 135.9 | $ 134.1 |
Joint Ventures China Joint Vent
Joint Ventures China Joint Ventures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Net sales | $ 103.5 | $ 109.7 | $ 105 |
Gross profit | 32.2 | 33.4 | 29.1 |
Net income | $ 8.3 | $ 7.4 | $ 4.9 |
Goodwill (Details)
Goodwill (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)segment | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |
Number of reportable segments | segment | 2 | |||
Advanced Materials & Structures | ||||
Goodwill [Line Items] | ||||
Accumulated impairment losses | 0 | $ 0 | ||
Engineered Papers | ||||
Goodwill [Line Items] | ||||
Accumulated impairment losses | $ 2,700,000 | $ 2,700,000 |
Goodwill - Reportable Segment (
Goodwill - Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | $ 338.1 | $ 341.3 | |
Foreign currency translation adjustments | $ (0.7) | (3.2) | |
Goodwill ending balance | 337.4 | 338.1 | |
Advanced Materials & Structures | |||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 333.1 | 336.1 | |
Foreign currency translation adjustments | (0.6) | (3) | |
Goodwill ending balance | 332.5 | 333.1 | |
Engineered Papers | |||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 5 | 5.2 | |
Foreign currency translation adjustments | $ (0.1) | (0.2) | |
Goodwill ending balance | $ 4.9 | $ 5 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 336.5 | $ 336.5 | |
Accumulated Amortization | 82 | 61.8 | |
Accumulated Impairments | 20.7 | 20.7 | |
Accumulated Foreign Exchange | 2.5 | 1.2 | |
Net Carrying Amount | 231.3 | 252.8 | |
Amortization expense of intangible assets | 20.3 | 20.7 | $ 20.9 |
Estimated Amortization Expense | |||
2020 | 19.9 | ||
2021 | 19.9 | ||
2022 | 19.9 | ||
2023 | 19.6 | ||
2024 | 19.2 | ||
Trade names | Advanced Materials & Structures | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 0 | ||
Accumulated Impairments | 0.1 | 0.1 | |
Accumulated Foreign Exchange | 0 | (0.1) | |
Unamortized Intangible Assets (Advanced Materials & Structures), Gross Carrying Amount | 20 | 20 | |
Unamortized Intangible Assets (Advanced Materials & Structures), Net Carrying Amount | 19.9 | 20 | |
Customer relationships | Advanced Materials & Structures | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 276.3 | 276.3 | |
Accumulated Amortization | 67.7 | 50.4 | |
Accumulated Impairments | 0 | 0 | |
Accumulated Foreign Exchange | 1.8 | 0.7 | |
Net Carrying Amount | 206.8 | 225.2 | |
Developed technology | Advanced Materials & Structures | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 34 | 34 | |
Accumulated Amortization | 10.9 | 8.5 | |
Accumulated Impairments | 0 | 0 | |
Accumulated Foreign Exchange | 0.4 | 0.2 | |
Net Carrying Amount | 22.7 | 25.3 | |
Trade names | Advanced Materials & Structures | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 21.8 | 21.8 | 0.8 |
Accumulated Amortization | 0.8 | 0.8 | |
Accumulated Impairments | 20.7 | 20.7 | |
Accumulated Foreign Exchange | 0.3 | 0.3 | |
Net Carrying Amount | 0 | 0 | |
Impairment expenses | $ 20.7 | ||
Non-compete agreements | Advanced Materials & Structures | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2.9 | 2.9 | |
Accumulated Amortization | 2.2 | 1.7 | |
Accumulated Impairments | 0 | 0 | |
Accumulated Foreign Exchange | 0 | 0 | |
Net Carrying Amount | 0.7 | 1.2 | |
Patents | Advanced Materials & Structures | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1.5 | 1.5 | |
Accumulated Amortization | 0.4 | 0.4 | |
Accumulated Impairments | 0 | 0 | |
Accumulated Foreign Exchange | 0 | 0 | |
Net Carrying Amount | $ 1.1 | $ 1.1 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Capitalized software costs, net of accumulated amortization | $ 11.9 | $ 8.3 |
Business tax credits, including VAT and ICMS (net of $12.1 million and $11.5 million reserve as of December 31, 2019 and 2018, respectively) | 0 | 1.2 |
Grantor trust assets | 14.7 | 10.9 |
Net pension assets | 5.9 | 0.8 |
Long-term supplies inventory | 6.9 | 6.8 |
Operating lease assets | 20.9 | |
Other assets | 8.9 | 5.9 |
Total | 69.2 | 33.9 |
Reserve for losses on business tax credits | $ 12.1 | $ 11.5 |
Restructuring and Impairment _3
Restructuring and Impairment Activities (Details) - USD ($) | Dec. 18, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | $ 1,700,000 | $ 1,600,000 | $ 400,000 | $ 0 | $ 300,000 | $ 400,000 | $ 600,000 | $ 400,000 | $ 3,700,000 | $ 1,700,000 | $ 8,100,000 | |
United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 100,000 | |||||||||||
Belgium and United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 2,600,000 | |||||||||||
Asset Impairment Charge | United States and China | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 1,100,000 | |||||||||||
AMS | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 1,100,000 | 1,500,000 | 2,700,000 | |||||||||
AMS | Employee Severance | United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 1,100,000 | |||||||||||
AMS | Asset Impairment Charge | United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 400,000 | |||||||||||
EP | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 2,600,000 | 200,000 | 5,300,000 | |||||||||
EP | Philippines | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 4,000,000 | |||||||||||
Proceeds from divestiture of businesses | $ 13,300,000 | |||||||||||
EP | Employee Severance | Brazil, France and United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 2,600,000 | |||||||||||
EP | Employee Severance | France | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 200,000 | |||||||||||
EP | Employee Severance | France and United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 800,000 | |||||||||||
EP | Asset Impairment Charge | France and United States | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 500,000 | |||||||||||
EP | Asset Impairment Charge | Philippines | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | 0 | 0 | 4,000,000 | |||||||||
Gain on disposal | 300,000 | |||||||||||
Corporate, Non-Segment | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and impairment expense | $ 0 | $ 0 | $ 100,000 |
Restructuring and Impairment _4
Restructuring and Impairment Activities Restructuring Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of year | $ 1.4 | $ 1.7 |
Accruals for announced programs | 3.7 | 1.3 |
Cash payments | (4.2) | (3.3) |
Other | (0.4) | 1.8 |
Exchange rate impacts | 0 | (0.1) |
Balance at end of period | $ 0.5 | $ 1.4 |
Debt - Schedule of Debt Summari
Debt - Schedule of Debt Summarized (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 25, 2018 |
Debt Instrument [Line Items] | |||
Stated interest rate (percentage) | 6.875% | ||
Finance lease obligations | $ 3.2 | ||
Other | 0 | $ 0.1 | |
Debt issuance costs | (5.9) | (7.2) | |
Total debt | 542.7 | 622.1 | |
Less: Current debt | (1.9) | (3.3) | |
Long-term debt | 540.8 | 618.8 | |
Deferred Profit Sharing | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 4.8 | 6.6 | |
Capital Lease Obligations | |||
Debt Instrument [Line Items] | |||
Finance lease obligations | 3.2 | 4.7 | |
Revolving credit agreement - U.S. dollar borrowings | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 76 | |
Term loan facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 197.5 | 199.5 | |
6.875% senior unsecured notes due October 1, 2026, net of discount of $6.9 million and $7.6 million as of December 31, 2019 and December 31, 2018, respectively | |||
Debt Instrument [Line Items] | |||
Unamortized discount | $ 6.9 | 7.6 | |
6.875% senior unsecured notes due October 1, 2026, net of discount of $6.9 million and $7.6 million as of December 31, 2019 and December 31, 2018, respectively | Corporate Bond Securities | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percentage) | 6.875% | 6.875% | |
Long-term debt, gross | $ 343.1 | $ 342.4 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Sep. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Stated interest rate (percentage) | 6.875% | ||
French Employee Profit Sharing | |||
Debt Instrument [Line Items] | |||
Interest rate at period end (percent) | 0.62% | 1.04% | |
Bank Overdrafts | |||
Debt Instrument [Line Items] | |||
Interest rate at period end (percent) | 0.26% | 0.26% | |
Bank overdraft facilities | $ 6,100,000 | $ 6,100,000 | |
Overdraft facility, amount outstanding | 0 | 0 | |
Commitment fees | 0 | ||
Corporate Bond Securities | |||
Debt Instrument [Line Items] | |||
Fair market value of notes | 378,300,000 | $ 331,600,000 | |
New Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowings under credit facility | $ 700,000,000 | ||
EBITDA ratio | 4.50 | ||
Interest coverage ratio | 3 | ||
Revolving credit agreement - U.S. dollar borrowings | Line of Credit | |||
Debt Instrument [Line Items] | |||
Borrowed from Revolving Credit Facility | $ 91,000,000 | ||
6.875% senior unsecured notes due October 1, 2026 | Corporate Bond Securities | |||
Debt Instrument [Line Items] | |||
Face amount | $ 350,000,000 | ||
Stated interest rate (percentage) | 6.875% | 6.875% | |
Redemption price (as a percentage) | 100.00% | ||
Percentage of principal amount redeemed (percent) | 35.00% | ||
Redemption price for equity offerings, percentage | 106.875% | ||
Interest rate at period end (percent) | 7.248% | ||
Term loan facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | 7 years | ||
Face amount | $ 200,000,000 | ||
Amortization rate (percentage) | 1.00% | ||
Borrowed from Revolving Credit Facility | $ 200,000,000 | ||
Average interest rate (percentage) | 3.56% | ||
Revolving Credit Facility | New Credit Facility and Bond Indenture | |||
Debt Instrument [Line Items] | |||
Maximum borrowings under credit facility | $ 400,000,000 | ||
Debt instrument, term | 5 years | ||
Current borrowing capacity | $ 500,000,000 | ||
Base Rate | Revolving Credit Facility | New Credit Facility and Bond Indenture | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent)) | 0.75% | ||
Base Rate | Term loan facility | New Credit Facility and Bond Indenture | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent)) | 1.00% | ||
LIBOR | Revolving Credit Facility | New Credit Facility and Bond Indenture | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent)) | 1.75% | ||
LIBOR | Term loan facility | New Credit Facility and Bond Indenture | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (percent)) | 2.00% |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt Maturities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 2.8 |
2021 | 3.5 |
2022 | 3.5 |
2023 | 2.8 |
2024 | 2.1 |
Thereafter | 537.5 |
Total | $ 552.2 |
Debt - Debt Issuance Costs (Det
Debt - Debt Issuance Costs (Details) - USD ($) $ in Millions | Sep. 25, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Capitalized deferred debt issuance costs | $ 3.6 | ||
Write off of deferred debt issuance costs | $ 0.5 | ||
Deferred debt issuance costs | $ 5.9 | 7.2 | |
Expected Future Amortization Expense [Abstract] | |||
2020 | 1.2 | ||
2021 | 1.2 | ||
2022 | 1.2 | ||
2023 | 1 | ||
2024 | 0.4 | ||
Thereafter | 0.9 | ||
Total | 5.9 | 7.2 | |
Interest expense | |||
Debt Instrument [Line Items] | |||
Amortization expense | $ 1.2 | $ 1.7 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) € in Millions, $ in Millions | Oct. 24, 2018USD ($) | Sep. 25, 2018USD ($) | Jan. 20, 2017USD ($) | Jan. 31, 2018 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 11, 2019USD ($) | Jan. 29, 2019USD ($) | Oct. 24, 2018EUR (€) | Jan. 20, 2017EUR (€) |
Derivative [Line Items] | ||||||||||
Fixed rate | 1.724% | 1.724% | ||||||||
Derivative, notional amount | $ 185 | |||||||||
Gain recognized in accumulated other comprehensive income | $ (1.6) | $ (2.4) | ||||||||
Cross Currency Interest Rate Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative term | 3 years | 3 years | ||||||||
Derivative, notional amount | $ 75 | $ 100 | € 65.4 | € 93.7 | ||||||
Cross Currency Interest Rate Contract | Long | ||||||||||
Derivative [Line Items] | ||||||||||
Fixed rate | 6.875% | 1.65% | 6.875% | 1.65% | ||||||
Cross Currency Interest Rate Contract | Short | ||||||||||
Derivative [Line Items] | ||||||||||
Fixed rate | 3.6725% | 0.18% | 3.6725% | 0.18% | ||||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | $ 130 | |||||||||
Gain recognized in accumulated other comprehensive income | $ 1.8 | |||||||||
Net Investment Hedging | Cross Currency Interest Rate Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative term | 25 months | |||||||||
Net Investment Hedging | Accounting Standards Update 2017-12 | Cross Currency Interest Rate Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Gain recognized in accumulated other comprehensive income | (0.5) | |||||||||
Accumulated other comprehensive loss | 0.8 | |||||||||
Derivative amount | 1.1 | |||||||||
First Amendment to Second Amended and Restated Credit Agreement | Interest Rate Swap | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative term | 3 years | |||||||||
Fixed rate | 1.65% | 1.65% | ||||||||
Derivative, notional amount | $ 315 | |||||||||
September 13, 2019 - December 31, 2020 | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | 185 | |||||||||
December 31, 2020 - December 31, 2021 | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | 150 | |||||||||
December 31, 2021 - January 31, 2027 | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount | $ 100 | |||||||||
Euro Member Countries, Euro | Cross Currency Interest Rate Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Fixed rate | 5.638% | 6.875% | ||||||||
Derivative, notional amount | $ 90.9 | $ 66 | ||||||||
United States of America, Dollars | Cross Currency Interest Rate Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Fixed rate | 6.875% | 4.0525% | ||||||||
Derivative, notional amount | $ 100 | $ 75 |
Derivatives - Derivatives by Ba
Derivatives - Derivatives by Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 11.2 | $ 4.9 |
Liability Derivatives | 11.3 | 10.1 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 11.1 | 4.8 |
Liability Derivatives | 11.3 | 10.1 |
Designated as Hedging Instrument | Interest rate contracts | Accounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Designated as Hedging Instrument | Interest rate contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 1.8 |
Designated as Hedging Instrument | Interest rate contracts | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0.2 | |
Designated as Hedging Instrument | Interest rate contracts | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | 0 |
Designated as Hedging Instrument | Foreign Exchange Contract | Accounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 4.8 | 2 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 6.3 | 1 |
Designated as Hedging Instrument | Foreign Exchange Contract | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 5.6 | 1.3 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 5.5 | 8.8 |
Derivatives not designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.1 | 0.1 |
Liability Derivatives | 0 | 0 |
Derivatives not designated as hedges | Foreign Exchange Contract | Accounts receivable | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.1 | 0.1 |
Derivatives not designated as hedges | Foreign Exchange Contract | Accounts payable | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 | $ 0 |
Derivatives - Derivatives by In
Derivatives - Derivatives by Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | $ 1.6 | $ 2.4 | |
Loss (Gain) Reclassified from AOCI, Net of Tax | 4.5 | 3.7 | $ (0.3) |
Derivatives not designated as hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in Other Income / Expense | 1.1 | (2.5) | 2.7 |
Net sales | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | (0.7) | (1.7) | |
Loss (Gain) Reclassified from AOCI, Net of Tax | (1.2) | 0.8 | |
Other income, net | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | (2.3) | 0.1 | |
Loss (Gain) Reclassified from AOCI, Net of Tax | (1.9) | 0.1 | |
Other income, net | Foreign exchange contracts | Derivatives not designated as hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in Other Income / Expense | 1.1 | (2.5) | 2.7 |
Interest expense | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | 4.6 | 4 | |
Loss (Gain) Reclassified from AOCI, Net of Tax | $ 7.6 | $ 2.8 | |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | 2 | ||
Loss (Gain) Reclassified from AOCI, Net of Tax | (0.3) | ||
Cash Flow Hedging | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | 0.4 | ||
Cash Flow Hedging | Net sales | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | 2.2 | ||
Loss (Gain) Reclassified from AOCI, Net of Tax | 0.4 | ||
Cash Flow Hedging | Other income, net | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized Gain (Loss) Recognized in AOCI on Derivatives, Net of Tax for the Year Ended December 31, | (0.6) | ||
Loss (Gain) Reclassified from AOCI, Net of Tax | 0.5 | ||
Cash Flow Hedging | Interest expense | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss (Gain) Reclassified from AOCI, Net of Tax | $ (1.2) |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued salaries, wages and employee benefits | $ 46.1 | $ 43.1 |
Other accrued expenses | 40.4 | 29.8 |
Total | $ 86.5 | $ 72.9 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 60 | $ 55.8 | $ 42.6 |
Foreign | 36.9 | 61 | 58.9 |
Income from continuing operations before income taxes and income from equity affiliates | $ 96.9 | $ 116.8 | $ 101.5 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Benefit), Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income taxes: | |||
U.S. federal | $ 8.1 | $ (9.2) | $ 53.2 |
U.S. state | 0.8 | 0.8 | 0.6 |
Foreign | 9.7 | 11.6 | 14.2 |
Current income taxes | 18.6 | 3.2 | 68 |
Deferred income taxes: | |||
U.S. federal | 2.3 | 3.6 | (1.3) |
U.S. state | (1.9) | 1.4 | 2.9 |
Foreign | (3.8) | 2.5 | 0 |
Deferred income taxes | (3.4) | 7.5 | 1.6 |
Provision for income taxes | $ 15.2 | $ 10.7 | $ 69.6 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||
Tax provision at U.S. statutory rate | $ 20.3 | $ 24.5 | $ 35.6 |
Foreign income tax rate differential | 0.6 | 2.5 | (3.3) |
Income from passthrough entities | 1.7 | 0.7 | 6.4 |
Global intangible low tax inclusion | (0.1) | 7 | 0 |
Foreign derived intangible income | (0.2) | (4.2) | 0 |
State income tax, net of federal benefit | (0.2) | 1.7 | 2.7 |
Adjustments to valuation allowances | (3.7) | (2.5) | (2.8) |
Transition tax | (0.7) | (11.6) | 51.4 |
Other tax credits | (2) | (2.6) | (2.3) |
Foreign tax credits | (3.5) | (5.1) | (9.2) |
Other foreign operational taxes | 2.9 | 3.1 | 4.2 |
Domestic production deduction | 0 | 0 | (2.4) |
Remeasurement of deferred taxes due to tax law | 0.9 | (1.8) | (11.8) |
Non-deductible compensation | 1.1 | 0.4 | 0 |
Other, net | (1.9) | (1.4) | 1.1 |
Provision for income taxes | $ 15.2 | $ 10.7 | $ 69.6 |
Percent | |||
Tax provision at U.S. statutory rate | 21.00% | 21.00% | 35.00% |
Foreign income tax rate differential | 0.50% | 2.20% | (3.30%) |
Income from passthrough entities | 1.60% | 0.60% | 6.40% |
Global intangible low tax inclusion | (0.10%) | 6.00% | 0.00% |
Foreign derived intangible income | (0.20%) | (3.60%) | 0.00% |
State income tax, net of federal benefit | (0.20%) | 1.50% | 2.60% |
Adjustments to valuation allowances | (3.80%) | (2.10%) | (2.80%) |
Transition tax | (0.006) | (0.100) | 0.506 |
Other tax credits | (2.10%) | (2.30%) | (2.30%) |
Foreign tax credits | (3.60%) | (4.40%) | (9.00%) |
Other foreign operational taxes | 3.00% | 2.70% | 4.20% |
Domestic production deduction | 0.00% | 0.00% | (2.30%) |
Remeasurement of deferred taxes due to tax law | 1.00% | (1.50%) | (11.70%) |
Non-deductible compensation | 1.10% | 0.30% | 0.00% |
Other, net | (1.90%) | (1.20%) | 1.20% |
Provision for income taxes | 15.70% | 9.20% | 68.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | |||
Reduction due to transition tax further analysis of accumulated earnings and foreign taxes paid | $ 13.9 | ||
Provision for income taxes | $ 15.2 | $ 10.7 | $ 69.6 |
Effective tax rate (percent) | 15.70% | 9.20% | 68.60% |
Adjustments to Brazil ICMS litigation accrual | $ 4.2 | ||
Operating loss carryforwards | 90.5 | ||
Valuation allowance on deferred tax assets | 157.4 | $ 172.1 | |
Unrecognized tax benefits that would impact effective tax rate | 1.7 | ||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 13 | ||
Luxembourg | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance on deferred tax assets | 143.4 | ||
Spain | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance on deferred tax assets | 8.4 | ||
Philippines | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance on deferred tax assets | 0.4 | ||
Brazil | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, valuation allowance | 4.3 | ||
State | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance on deferred tax assets | 1.1 | ||
State | Tax Year 2019 - 2037 | |||
Tax Credit Carryforward [Line Items] | |||
Tax credits | $ 1.5 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | ||
Receivable allowances | $ 0.4 | $ 0.8 |
Inventory and other assets | 0 | 1.1 |
Postretirement and other employee benefits | 19 | 14.8 |
Derivatives | 0.1 | 0 |
Net operating loss and tax credit carryforwards | 93.7 | 93.3 |
Capital loss carryforward | 6.9 | 0 |
Investment in subsidiaries | 0 | 5.6 |
Intangibles | 45.7 | 60 |
Other | 3.9 | 1.2 |
Deferred Tax Assets | 169.7 | 176.8 |
Less: Valuation allowance | (157.4) | (172.1) |
Net deferred income tax assets | 12.3 | 4.7 |
Deferred Tax Liabilities | ||
Net property, plant and equipment | (52.6) | (51.9) |
Accruals and other liabilities | (0.6) | (0.2) |
Investment in subsidiaries | (3.5) | 0 |
Derivatives | 0 | (0.3) |
Other | (0.1) | 0 |
Net deferred income tax liabilities | (56.8) | (52.4) |
Total net deferred income tax liabilities | $ (44.5) | $ (47.7) |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 90.5 |
2020-2023 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 0.2 |
2024-2035 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 15.3 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 75 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Uncertain tax position balance at beginning of year | $ 1.1 | $ 1 | $ 2.4 |
Increases related to current year tax positions | 0.6 | 0.6 | 0.3 |
Increases related to prior year tax positions | 0 | 0 | 0.4 |
Decreases related to prior year tax positions | 0 | (0.2) | (2) |
Decreases related to expiration of statute of limitations | 0 | (0.3) | (0.1) |
Uncertain tax position balance at end of year | $ 1.7 | $ 1.1 | $ 1 |
Postretirement and Other Bene_3
Postretirement and Other Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | $ 3.9 | $ 3.6 | $ 3.6 |
Liability under deferred compensation plans | 19.7 | 14.1 | |
Grantor trust assets | 14.7 | 10.9 | |
Other liabilities, French law CET account | $ 6.3 | $ 5.5 | |
United States | Unfunded Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Coverage age | 65 years |
Postretirement and Other Bene_4
Postretirement and Other Benefits - Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | Pension Benefits | |||
Change in Projected Benefit Obligation, or PBO: | |||
PBO at beginning of year | $ 112.3 | $ 124.1 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 4.6 | 4.3 | 4.8 |
Actuarial loss (gain) | 11.1 | (8.2) | |
Participant contributions | 0 | 0 | |
Gross benefits paid | (8.1) | (7.9) | |
Currency translation effect | 0 | 0 | |
PBO at end of year | 119.9 | 112.3 | 124.1 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 113.1 | 128.7 | |
Actual return on plan assets | 20.8 | (7.6) | |
Employer contributions | 0 | 0 | |
Participant contributions | 0 | 0 | |
Gross benefits paid | (8.1) | (8) | |
Currency translation effect | 0 | 0 | |
Fair value of plan assets at end of year | 125.8 | 113.1 | 128.7 |
Funded status at end of year | 5.9 | 0.8 | |
United States | OPEB Benefits | |||
Change in Projected Benefit Obligation, or PBO: | |||
PBO at beginning of year | 1.2 | 1.4 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.1 | 0.1 | 0.1 |
Actuarial loss (gain) | 0.1 | (0.2) | |
Participant contributions | 0.1 | 0.1 | |
Gross benefits paid | (0.1) | (0.2) | |
Currency translation effect | 0 | 0 | |
PBO at end of year | 1.4 | 1.2 | 1.4 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0 | 0 | |
Participant contributions | 0.1 | 0.2 | |
Gross benefits paid | (0.1) | (0.2) | |
Currency translation effect | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (1.4) | (1.2) | |
France | Pension Benefits | |||
Change in Projected Benefit Obligation, or PBO: | |||
PBO at beginning of year | 29.5 | 30.5 | |
Service cost | 1 | 1.1 | 1.1 |
Interest cost | 0.4 | 0.4 | 0.4 |
Actuarial loss (gain) | 3.2 | 0.9 | |
Participant contributions | 0.7 | 1 | |
Gross benefits paid | (2.3) | (3) | |
Currency translation effect | (0.6) | (1.4) | |
PBO at end of year | 31.9 | 29.5 | 30.5 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 2.1 | 3.2 | |
Actual return on plan assets | 0.2 | (0.7) | |
Employer contributions | 1.1 | 1.2 | |
Participant contributions | 0 | 0 | |
Gross benefits paid | (2.3) | (1.5) | |
Currency translation effect | 0 | (0.1) | |
Fair value of plan assets at end of year | 1.1 | 2.1 | $ 3.2 |
Funded status at end of year | $ (30.8) | $ (27.4) |
Postretirement and Other Bene_5
Postretirement and Other Benefits - PBO and ABO in Excess of Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
PBO | $ 119.9 | $ 112.3 | |
ABO | 119.9 | 112.3 | |
Fair value of plan assets | 125.8 | 113.1 | $ 128.7 |
France | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
PBO | 31.9 | 29.5 | |
ABO | 31.9 | 24.9 | |
Fair value of plan assets | $ 1.1 | $ 2.1 | $ 3.2 |
Postretirement and Other Bene_6
Postretirement and Other Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States | Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Accumulated loss | $ 23.3 |
Prior service credit | 0 |
Accumulated other comprehensive loss | 23.3 |
United States | OPEB Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Accumulated loss | 0.2 |
Prior service credit | 0 |
Accumulated other comprehensive loss | 0.2 |
France | Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Accumulated loss | 15.2 |
Prior service credit | (2.6) |
Accumulated other comprehensive loss | $ 12.6 |
Postretirement and Other Bene_7
Postretirement and Other Benefits - Amortization of Accumulated Other Comprehensive Income (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States | Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of accumulated loss | $ (3.5) |
Amortization of prior service credit | 0 |
Total | (3.5) |
United States | OPEB Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of accumulated loss | 0 |
Amortization of prior service credit | 0 |
Total | 0 |
France | Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Amortization of accumulated loss | (1.2) |
Amortization of prior service credit | 0.3 |
Total | $ (0.9) |
Postretirement and Other Bene_8
Postretirement and Other Benefits - Weighted Average Assumption of Projected Benefit Obligations (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
United States | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.20% | 4.29% |
Rate of compensation increase | 0.00% | 0.00% |
United States | OPEB Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 3.21% | 4.30% |
Rate of compensation increase | 3.50% | 3.50% |
France | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 0.53% | 1.28% |
Rate of compensation increase | 1.96% | 1.75% |
Postretirement and Other Bene_9
Postretirement and Other Benefits - Net Pension Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 4.6 | 4.3 | 4.8 |
Expected return on plan assets | (5.8) | (5.8) | (6.4) |
Amortizations and other | 2 | 3.2 | 3.2 |
Net periodic benefit cost | 0.8 | 1.7 | 1.6 |
United States | OPEB Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.1 | 0.1 | 0.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortizations and other | 0 | 0.1 | 0.2 |
Net periodic benefit cost | 0.1 | 0.2 | 0.3 |
France | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 1 | 1.1 | 1.1 |
Interest cost | 0.4 | 0.4 | 0.4 |
Expected return on plan assets | (0.1) | (0.1) | (0.2) |
Amortizations and other | 0.9 | 1.1 | 1.4 |
Net periodic benefit cost | $ 2.2 | $ 2.5 | $ 2.7 |
Postretirement and Other Ben_10
Postretirement and Other Benefits - Weighted Average Assumptions - Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.29% | 3.60% | 4.11% |
Expected long-term rate of return on plan assets | 5.14% | 5.00% | 5.56% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
United States | OPEB Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.30% | 3.59% | 4.09% |
Expected long-term rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
France | Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.28% | 1.28% | 1.14% |
Expected long-term rate of return on plan assets | 3.00% | 3.00% | 3.00% |
Rate of compensation increase | 1.96% | 1.75% | 1.75% |
Postretirement and Other Ben_11
Postretirement and Other Benefits - Target Allocations (Details) - Pension Benefits | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 100.00% | 100.00% | |
United States | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 1.00% | 1.00% | |
United States | Domestic large cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 5.00% | 5.00% | |
United States | Domestic small cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 3.00% | 3.00% | |
United States | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 15.00% | 14.00% | |
United States | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 76.00% | 77.00% | |
United States | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 0.00% | 0.00% | |
France | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 100.00% | 100.00% | |
France | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 41.00% | 43.00% | |
France | Domestic large cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 31.00% | 28.00% | |
France | Domestic small cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 0.00% | 0.00% | |
France | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 0.00% | 0.00% | |
France | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 26.00% | 27.00% | |
France | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actual allocations | 2.00% | 2.00% | |
Forecast | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 100.00% | ||
Forecast | United States | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 0.00% | ||
Forecast | United States | Domestic large cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 9.00% | ||
Forecast | United States | Domestic small cap | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 5.00% | ||
Forecast | United States | International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 10.00% | ||
Forecast | United States | Fixed income securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 76.00% | ||
Forecast | United States | Alternative investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocations 2019 | 0.00% |
Postretirement and Other Ben_12
Postretirement and Other Benefits - Fair Value of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
United States | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | $ 113.1 | $ 113.1 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 113.1 | 128.7 |
Fair value of plan assets at end of year | 125.8 | 113.1 |
United States | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 1 | 1 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 1 | |
Fair value of plan assets at end of year | 0.9 | 1 |
United States | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 5.7 | 5.7 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 5.7 | |
Fair value of plan assets at end of year | 6.8 | 5.7 |
United States | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 3.3 | 3.3 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 3.3 | |
Fair value of plan assets at end of year | 4.3 | 3.3 |
United States | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 15.5 | 15.5 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 15.5 | |
Fair value of plan assets at end of year | 19.1 | 15.5 |
United States | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 87.6 | 87.6 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 87.6 | |
Fair value of plan assets at end of year | 94.7 | 87.6 |
United States | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 65.7 | 65.7 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 65.7 | |
Fair value of plan assets at end of year | 74.6 | 65.7 |
United States | Fair Value Measured at Net Asset Value Per Share | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 5.7 | 5.7 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 5.7 | |
Fair value of plan assets at end of year | 6.8 | 5.7 |
United States | Fair Value Measured at Net Asset Value Per Share | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 3.3 | 3.3 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 3.3 | |
Fair value of plan assets at end of year | 4.3 | 3.3 |
United States | Fair Value Measured at Net Asset Value Per Share | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 15.5 | 15.5 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 15.5 | |
Fair value of plan assets at end of year | 19.1 | 15.5 |
United States | Fair Value Measured at Net Asset Value Per Share | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 41.2 | 41.2 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 41.2 | |
Fair value of plan assets at end of year | 44.4 | 41.2 |
United States | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 1 | 1 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 1 | |
Fair value of plan assets at end of year | 0.9 | 1 |
United States | Level 1 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 1 | 1 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 1 | |
Fair value of plan assets at end of year | 0.9 | 1 |
United States | Level 1 | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 1 | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 1 | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 1 | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 1 | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 46.4 | 46.4 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 46.4 | |
Fair value of plan assets at end of year | 50.3 | 46.4 |
United States | Level 2 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 2 | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 2 | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 2 | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 2 | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 46.4 | 46.4 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 46.4 | |
Fair value of plan assets at end of year | 50.3 | 46.4 |
United States | Level 2 | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | 0.1 |
Realized and unrealized gains | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | (0.1) |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
United States | Level 3 | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 1.1 | 3.2 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 2.1 | 3.2 |
Fair value of plan assets at end of year | 1.1 | 2.1 |
France | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.9 | 0.9 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.9 | |
Fair value of plan assets at end of year | 0.4 | 0.9 |
France | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.6 | 0.6 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.6 | |
Fair value of plan assets at end of year | 0.3 | 0.6 |
France | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.5 | 0.5 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.5 | |
Fair value of plan assets at end of year | 0.3 | 0.5 |
France | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.1 | 0.1 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.1 | |
Fair value of plan assets at end of year | 0.1 | 0.1 |
France | Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 1.5 | 1.5 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 1.5 | |
Fair value of plan assets at end of year | 0.7 | 1.5 |
France | Level 1 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.9 | 0.9 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.9 | |
Fair value of plan assets at end of year | 0.4 | 0.9 |
France | Level 1 | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.6 | 0.6 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.6 | |
Fair value of plan assets at end of year | 0.3 | 0.6 |
France | Level 1 | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 1 | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 1 | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 1 | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.6 | 0.6 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.6 | |
Fair value of plan assets at end of year | 0.4 | 0.6 |
France | Level 2 | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 2 | Domestic large cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 2 | Domestic small cap | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 2 | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | |
Fair value of plan assets at end of year | 0 | 0 |
France | Level 2 | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.5 | 0.5 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.5 | |
Fair value of plan assets at end of year | 0.3 | 0.5 |
France | Level 2 | Alternative investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | 0.1 | 0.1 |
Level 3 Asset Reconciliation | ||
Fair value of plan assets at beginning of year | 0.1 | |
Fair value of plan assets at end of year | $ 0.1 | $ 0.1 |
Postretirement and Other Ben_13
Postretirement and Other Benefits - Expected Future Benefit Payments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
United States | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
2020 | $ 8.5 | |
2021 | 8.4 | |
2022 | 8.4 | |
2023 | 8.1 | |
2024 | 8 | |
2025 - 2029 | 37.6 | |
Employer contributions | 0 | $ 0 |
United States | OPEB Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
2020 | 0.2 | |
2021 | 0.2 | |
2022 | 0.1 | |
2023 | 0.1 | |
2024 | 0.1 | |
2025 - 2029 | 0.3 | |
Employer contributions | 0 | 0 |
France | Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
2020 | 1.6 | |
2021 | 1 | |
2022 | 0.6 | |
2023 | 1.7 | |
2024 | 1.3 | |
2025 - 2029 | 8 | |
Employer contributions | $ 1.1 | $ 1.2 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock award, issued during period (in shares) | 1,923,356 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, number of shares authorized (in shares) | 5,000,000 | |||
Share-based payment award, limitation on single participant (in shares) (no more than) | 750,000 | |||
Restricted stock award, not yet vested (in shares) | 184,190 | 283,338 | 283,338 | 221,622 |
Unrecognized compensation expense | $ 2.5 | |||
Unrecognized compensation expense, recognition weighted average period | 2 years 1 month 6 days | |||
Number of Shares | ||||
Nonvested restricted shares outstanding at beginning of year (in shares) | 184,190 | 283,338 | 224,289 | |
Granted (in shares) | 155,982 | 142,475 | 216,017 | |
Forfeited (in shares) | (8,869) | (12,858) | (29,150) | |
Vested (in shares) | (109,681) | (228,765) | (127,818) | |
Nonvested restricted shares outstanding at end of year (in shares) | 221,622 | 184,190 | 283,338 | |
Weighted Average Fair Value at Date of Grant | ||||
Nonvested restricted shares outstanding at beginning of year (in dollars per share) | $ 40.33 | $ 37.26 | $ 41.30 | |
Granted (in dollars per share) | 35.62 | 39.58 | 36.03 | |
Forfeited (in dollars per share) | 41.34 | 40.06 | 42.50 | |
Vested (in dollars per share) | 40.12 | 35.86 | 41.06 | |
Nonvested restricted shares outstanding at end of year (in dollars per share) | $ 37.08 | $ 40.33 | $ 37.26 | |
Nonvested restricted shares granted (in shares) | 155,982 | 142,475 | 216,017 | |
Restricted Stock Performance Plan | Award Opportunity 2017-2018 | ||||
Number of Shares | ||||
Granted (in shares) | 331,150 | |||
Weighted Average Fair Value at Date of Grant | ||||
Compensation expense | $ 5.6 | |||
Nonvested restricted shares granted (in shares) | 331,150 | |||
Restricted Stock Performance Plan | Award Opportunity 2016-2017 | ||||
Number of Shares | ||||
Granted (in shares) | 91,396 | |||
Weighted Average Fair Value at Date of Grant | ||||
Compensation expense | $ 2.2 | $ 2 | ||
Nonvested restricted shares granted (in shares) | 91,396 | |||
Restricted Stock Performance Plan | Award Opportunity 2015-2016 | ||||
Number of Shares | ||||
Granted (in shares) | 75,741 | |||
Weighted Average Fair Value at Date of Grant | ||||
Compensation expense | $ 2.2 | $ 1.7 | ||
Nonvested restricted shares granted (in shares) | 75,741 | |||
Restricted Stock Performance Plan | Award Opportunity 2014-2015 | ||||
Weighted Average Fair Value at Date of Grant | ||||
Compensation expense | $ 2.2 |
Stockholders' Equity - Basic an
Stockholders' Equity - Basic and Diluted Shares Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator (basic and diluted): | |||||||||||
Net income | $ 20.2 | $ 27.7 | $ 20.5 | $ 17.4 | $ 7.2 | $ 41 | $ 25.8 | $ 20.5 | $ 85.8 | $ 94.5 | $ 34.5 |
Less: Dividends paid to participating securities | (0.4) | (0.3) | (0.4) | ||||||||
Less: Undistributed earnings available to participating securities | (0.2) | (0.3) | 0 | ||||||||
Undistributed and distributed earnings available to common stockholders | $ 85.2 | $ 93.9 | $ 34.1 | ||||||||
Denominator: | |||||||||||
Average number of common shares outstanding (shares) | 30,652,200 | 30,551,300 | 30,407,100 | ||||||||
Effect of dilutive stock-based compensation (shares) | 186,100 | 141,600 | 142,200 | ||||||||
Average number of common and potential common shares outstanding (shares) | 30,838,300 | 30,692,900 | 30,549,300 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)claim | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2000assessment | |
Loss Contingencies [Line Items] | ||||
Capital expenditures for environmental matters | $ 1,200,000 | |||
Capital expenditures for environmental matters, due in two years (less than) | $ 1,000,000 | |||
Raw Materials Assessment | ||||
Loss Contingencies [Line Items] | ||||
Settlement period | 60 months | |||
Unfavorable Regulatory Action | Raw Materials Assessment | ||||
Loss Contingencies [Line Items] | ||||
Number of assessments from the tax authorities regarding ICMS taxes | assessment | 2 | |||
Unfavorable Regulatory Action | Raw Materials Assessment 2 | ||||
Loss Contingencies [Line Items] | ||||
Liability recorded in the consolidated financial statements | $ 1,300,000 | |||
Unfavorable Regulatory Action | Electricity Assessment | ||||
Loss Contingencies [Line Items] | ||||
Number of assessments from the tax authorities regarding ICMS taxes | assessment | 4 | |||
Number of assessments from the tax authorities regarding ICMS taxes granted injunctions from enforcement | assessment | 2 | |||
Unfavorable Regulatory Action | Electricity Assessment Four | ||||
Loss Contingencies [Line Items] | ||||
Liability recorded in the consolidated financial statements | $ 0 | |||
Indemnification Agreement | ||||
Loss Contingencies [Line Items] | ||||
Number of pending claims | claim | 0 | |||
LTRI and PdM Subsidiaries | Energy Cogeneration Steam Supply Agreement | ||||
Loss Contingencies [Line Items] | ||||
Minimum annual commitments | $ 6,000,000 | |||
SWM-B Brazilian Mill | Transmission and Distribution of Energy Agreement | ||||
Loss Contingencies [Line Items] | ||||
Purchase of electrical energy, estimated annual cost | 2,400,000 | |||
Calcium Carbonate | PdM Subsidiary | ||||
Loss Contingencies [Line Items] | ||||
Purchase commitment, remaining amount committed | 1,200,000 | |||
Calcium Carbonate, Through 2024 | PdM Subsidiary | ||||
Loss Contingencies [Line Items] | ||||
Purchase commitment, remaining amount committed | 7,000,000 | |||
Natural Gas | SWM-B Brazilian Mill | ||||
Loss Contingencies [Line Items] | ||||
Purchase commitment, remaining amount committed | 6,900,000 | |||
Maximum | Unfavorable Regulatory Action | Raw Materials Assessment 2 | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 12,100,000 | |||
Maximum | Unfavorable Regulatory Action | Electricity Assessment One | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 3,800,000 | |||
Maximum | Unfavorable Regulatory Action | Electricity Assessment Two | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 6,900,000 | |||
Maximum | Unfavorable Regulatory Action | Electricity Assessment Three | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 700,000 | |||
Maximum | Unfavorable Regulatory Action | Electricity Assessment Four | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 9,700,000 | |||
Natural Gas | French Mills | ||||
Loss Contingencies [Line Items] | ||||
Purchase commitment, remaining amount committed | 2,800,000 | |||
Biomass Consumption | French Mills | ||||
Loss Contingencies [Line Items] | ||||
Minimum annual commitments | 600,000 | |||
Forecast | French Mills | Electricity | ||||
Loss Contingencies [Line Items] | ||||
Purchase commitment, remaining amount committed | $ 6,100,000 | |||
Interest expense | Raw Materials Assessment | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement, expense | $ (600,000) |
Commitments and Contingencies I
Commitments and Contingencies Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | $ 10.9 | $ 0 | $ 0 |
Cost of products sold | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | (1.5) | ||
Operating profit | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | (1.5) | ||
Other expense | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | (2.2) | ||
Interest expense | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | (7.1) | ||
Income from continuing operations before income taxes | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | (10.8) | ||
Income tax benefit | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | 4.2 | ||
Net income | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | (6.6) | ||
Raw Materials Assessment 2 | Unfavorable Regulatory Action | Cost of products sold | |||
Loss Contingencies [Line Items] | |||
Brazil tax assessment accruals, net | 2.6 | ||
Social Security Assessment | Cost of products sold | Positive Outcome of Litigation | |||
Loss Contingencies [Line Items] | |||
Tax credits | $ 1.1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Net Sales | |||||||||||
Net sales | $ 238.5 | $ 256.4 | $ 269.9 | $ 258 | $ 248.7 | $ 260.3 | $ 270.4 | $ 261.9 | $ 1,022.8 | $ 1,041.3 | $ 982.1 |
Percentage of Net Sales | 100.00% | 100.00% | 100.00% | ||||||||
Operating Profit | |||||||||||
Operating profit | 24.8 | $ 34.6 | $ 44.2 | $ 30.4 | 26.8 | $ 31.1 | $ 42.1 | $ 35 | $ 134 | $ 135 | $ 128.3 |
Percentage of Operating Profit | 100.00% | 100.00% | 100.00% | ||||||||
Segment Assets | 1,471.7 | 1,466.5 | $ 1,471.7 | $ 1,466.5 | $ 1,542.5 | ||||||
Capital Spending | 28.6 | 27 | 37.2 | ||||||||
Depreciation | 35.8 | 38.1 | 35.7 | ||||||||
Long-Lived Assets | 342.2 | 348.5 | 342.2 | 348.5 | 369.3 | ||||||
United States | |||||||||||
Net Sales | |||||||||||
Net sales | 514.1 | 513.4 | 468.9 | ||||||||
Operating Profit | |||||||||||
Long-Lived Assets | 118.5 | 115.8 | 118.5 | 115.8 | 115 | ||||||
France | |||||||||||
Operating Profit | |||||||||||
Long-Lived Assets | 158.8 | 167.4 | 158.8 | 167.4 | 181.3 | ||||||
Brazil | |||||||||||
Operating Profit | |||||||||||
Long-Lived Assets | 19.5 | 20.8 | 19.5 | 20.8 | 24.2 | ||||||
Poland | |||||||||||
Operating Profit | |||||||||||
Long-Lived Assets | 14.7 | 16.8 | 14.7 | 16.8 | 21.9 | ||||||
Europe and the former Commonwealth of Independent States | |||||||||||
Net Sales | |||||||||||
Net sales | 218.4 | 260.8 | 259.9 | ||||||||
Asia-Pacific (including China) | |||||||||||
Net Sales | |||||||||||
Net sales | 172.6 | 159.4 | 148.4 | ||||||||
Latin America | |||||||||||
Net Sales | |||||||||||
Net sales | 53.2 | 53.5 | 57.9 | ||||||||
Other foreign countries | |||||||||||
Net Sales | |||||||||||
Net sales | 64.5 | 54.2 | 47 | ||||||||
Operating Profit | |||||||||||
Long-Lived Assets | 30.7 | 27.7 | 30.7 | 27.7 | 26.9 | ||||||
Unallocated | |||||||||||
Operating Profit | |||||||||||
Operating profit | $ (49.5) | $ (36.3) | $ (39.9) | ||||||||
Percentage of Operating Profit | (37.00%) | (26.90%) | (31.10%) | ||||||||
Segment Assets | 178.1 | 143 | $ 178.1 | $ 143 | $ 193.2 | ||||||
Capital Spending | 0.5 | 0.3 | 0.1 | ||||||||
Depreciation | 0.2 | 0.1 | 0 | ||||||||
Advanced Materials & Structures | |||||||||||
Net Sales | |||||||||||
Net sales | $ 477.2 | $ 467.9 | $ 433.2 | ||||||||
Percentage of Net Sales | 46.70% | 44.90% | 44.10% | ||||||||
Advanced Materials & Structures | United States | |||||||||||
Net Sales | |||||||||||
Net sales | $ 331.3 | $ 320.1 | $ 292.7 | ||||||||
Advanced Materials & Structures | Europe and the former Commonwealth of Independent States | |||||||||||
Net Sales | |||||||||||
Net sales | 45.8 | 46.2 | 51.6 | ||||||||
Advanced Materials & Structures | Asia-Pacific (including China) | |||||||||||
Net Sales | |||||||||||
Net sales | 77.6 | 76.6 | 66.1 | ||||||||
Advanced Materials & Structures | Latin America | |||||||||||
Net Sales | |||||||||||
Net sales | 7.6 | 10 | 9.4 | ||||||||
Advanced Materials & Structures | Other foreign countries | |||||||||||
Net Sales | |||||||||||
Net sales | 14.9 | 15 | 13.4 | ||||||||
Advanced Materials & Structures | Operating Segments | |||||||||||
Operating Profit | |||||||||||
Operating profit | $ 64.3 | $ 49.5 | $ 48.5 | ||||||||
Percentage of Operating Profit | 48.00% | 36.70% | 37.80% | ||||||||
Segment Assets | 781.2 | 796.1 | $ 781.2 | $ 796.1 | $ 811.7 | ||||||
Capital Spending | 16.1 | 15 | 11.5 | ||||||||
Depreciation | 12.8 | 14.1 | 12.3 | ||||||||
Engineered Papers | |||||||||||
Net Sales | |||||||||||
Net sales | $ 545.6 | $ 573.4 | $ 548.9 | ||||||||
Percentage of Net Sales | 53.30% | 55.10% | 55.90% | ||||||||
Engineered Papers | United States | |||||||||||
Net Sales | |||||||||||
Net sales | $ 182.8 | $ 193.3 | $ 176.2 | ||||||||
Engineered Papers | Europe and the former Commonwealth of Independent States | |||||||||||
Net Sales | |||||||||||
Net sales | 172.6 | 214.6 | 208.3 | ||||||||
Engineered Papers | Asia-Pacific (including China) | |||||||||||
Net Sales | |||||||||||
Net sales | 95 | 82.8 | 82.3 | ||||||||
Engineered Papers | Latin America | |||||||||||
Net Sales | |||||||||||
Net sales | 45.6 | 43.5 | 48.5 | ||||||||
Engineered Papers | Other foreign countries | |||||||||||
Net Sales | |||||||||||
Net sales | 49.6 | 39.2 | 33.6 | ||||||||
Engineered Papers | Operating Segments | |||||||||||
Operating Profit | |||||||||||
Operating profit | $ 119.2 | $ 121.8 | $ 119.7 | ||||||||
Percentage of Operating Profit | 89.00% | 90.20% | 93.30% | ||||||||
Segment Assets | $ 512.4 | $ 527.4 | $ 512.4 | $ 527.4 | $ 537.6 | ||||||
Capital Spending | 12 | 11.7 | 25.6 | ||||||||
Depreciation | $ 22.8 | $ 23.9 | $ 23.4 |
Major Customers (Details)
Major Customers (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | Phillip Morris, British American, and Japan Tobacco | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 11.00% | |
Engineered Papers | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% |
Supplemental Disclosures (Detai
Supplemental Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
Beginning balance | $ 1.7 | $ 1 | $ 0.8 |
Bad debt expense | 0.4 | 1.2 | 0.8 |
Recoveries | (0.3) | (0.2) | 0 |
Write-offs and discounts | (0.3) | (0.3) | (0.6) |
Ending balance | 1.5 | 1.7 | 1 |
Interest paid | 29.1 | 24 | 22.7 |
Income taxes paid | 20.8 | 23.2 | 38.1 |
Capital spending in accounts payable and accrued liabilities | 5.9 | 5 | 7.7 |
Deferred contingent business acquisition consideration | $ 0 | $ 0 | $ 8.6 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 238.5 | $ 256.4 | $ 269.9 | $ 258 | $ 248.7 | $ 260.3 | $ 270.4 | $ 261.9 | $ 1,022.8 | $ 1,041.3 | $ 982.1 |
Gross profit | 70.9 | 72.2 | 79 | 67.9 | 63.8 | 65.3 | 77.4 | 72 | 290 | 278.5 | 283.4 |
Restructuring and impairment expense | 1.7 | 1.6 | 0.4 | 0 | 0.3 | 0.4 | 0.6 | 0.4 | 3.7 | 1.7 | 8.1 |
Operating profit | 24.8 | 34.6 | 44.2 | 30.4 | 26.8 | 31.1 | 42.1 | 35 | 134 | 135 | 128.3 |
Income from continuing operations | 20.2 | 27.7 | 20.5 | 17.4 | 7.2 | 40.9 | 25.8 | 20.9 | 85.8 | 94.8 | 34.4 |
(Loss) gain from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0.1 | 0 | (0.4) | 0 | (0.3) | 0.1 |
Net income | $ 20.2 | $ 27.7 | $ 20.5 | $ 17.4 | $ 7.2 | $ 41 | $ 25.8 | $ 20.5 | $ 85.8 | $ 94.5 | $ 34.5 |
Income per share from continuing operations -basic (in dollars per share) | $ 0.65 | $ 0.90 | $ 0.66 | $ 0.57 | $ 0.23 | $ 1.33 | $ 0.84 | $ 0.68 | $ 2.78 | $ 3.08 | $ 1.12 |
Loss per share from discontinued operations - basic (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | 0 | (0.01) | 0 |
Net income per share - basic (in dollars per share) | 0.65 | 0.90 | 0.66 | 0.57 | 0.23 | 1.33 | 0.84 | 0.67 | 2.78 | 3.07 | 1.12 |
Income per share from continuing operations - diluted (in dollars per share) | 0.64 | 0.90 | 0.66 | 0.56 | 0.23 | 1.33 | 0.83 | 0.68 | 2.76 | 3.07 | 1.12 |
Loss per share from discontinued operations - diluted (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.01) | 0 | (0.01) | 0 |
Net income per share - diluted (in dollars per share) | $ 0.64 | $ 0.90 | $ 0.66 | $ 0.56 | $ 0.23 | $ 1.33 | $ 0.83 | $ 0.67 | $ 2.76 | $ 3.06 | $ 1.12 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Feb. 18, 2020USD ($) |
Tekra and Trient | Subsequent Event | |
Subsequent Event [Line Items] | |
Consideration transferred | $ 155 |
Uncategorized Items - swmform10
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (300,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,700,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (300,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,200,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,900,000) |