Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 11, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IOSP | ||
Entity Registrant Name | INNOSPEC INC. | ||
Entity Central Index Key | 1,054,905 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 24,007,021 | ||
Entity Public Float | $ 735 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 1,012.3 | $ 960.9 | $ 818.8 |
Cost of goods sold | (666.3) | (658.9) | (563.6) |
Gross profit | 346 | 302 | 255.2 |
Operating expenses: | |||
Selling, general and administrative | (206.7) | (169.2) | (142.1) |
Research and development | (25.3) | (22.2) | (21.2) |
Adjustment to fair value of contingent consideration | 40.7 | 1.9 | 0 |
Profit on disposal of subsidiary | 1.6 | 0 | 0 |
Impairment of Octane Additives segment goodwill | 0 | 0 | (1.3) |
Total operating expenses | (189.7) | (189.5) | (164.6) |
Operating income | 156.3 | 112.5 | 90.6 |
Other net income | 0 | 1.8 | 4.1 |
Interest expense, net | (4) | (3.4) | (1.9) |
Income before income taxes | 152.3 | 110.9 | 92.8 |
Income taxes | (32.8) | (26.8) | (15) |
Net income | $ 119.5 | $ 84.1 | $ 77.8 |
Earnings per share: | |||
Basic | $ 4.96 | $ 3.45 | $ 3.29 |
Diluted | $ 4.86 | $ 3.38 | $ 3.22 |
Weighted average shares outstanding (in thousands): | |||
Basic | 24,107 | 24,391 | 23,651 |
Diluted | 24,612 | 24,878 | 24,156 |
Dividend declared per common share | $ 0.61 | $ 0.55 | $ 0.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 119.5 | $ 84.1 | $ 77.8 |
Changes in cumulative translation adjustment | (11) | (18) | 1.2 |
Changes in unrealized losses on derivative instruments, net of tax of $0.0 million, $0.0 million and $0.0 million, respectively | 0 | 0 | (0.1) |
Amortization of prior service credit, net of tax of $0.2 million, $0.3 million and $0.3 million, respectively | (1) | (1) | (1) |
Amortization of actuarial net losses, net of tax of $(1.0) million, $(1.1) million and $(1.4) million, respectively | 4.2 | 4.3 | 4.8 |
Actuarial net gains/(losses) arising during the year, net of tax of $(0.9) million, $(13.9) million and $1.8 million, respectively | 3.2 | 54.7 | (6.7) |
Total comprehensive income | $ 114.9 | $ 124.1 | $ 76 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Changes in unrealized losses on derivative instruments, tax | $ 0 | $ 0 | $ 0 |
Amortization of prior service credit, tax | 0.2 | 0.3 | 0.3 |
Amortization of actuarial net losses, tax | (1) | (1.1) | (1.4) |
Actuarial net gains/(losses), tax | $ (0.9) | $ (13.9) | $ 1.8 |
Consolidated Statements of Accu
Consolidated Statements of Accumulated Other Comprehensive Loss - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative translation adjustment | $ (60) | $ (49) | $ (31) |
Unrecognized actuarial net losses, net of tax of $20.5 million, $22.2 million and $36.9 million, respectively | (50.9) | (57.3) | (115.3) |
Accumulated other comprehensive loss | $ (110.9) | $ (106.3) | $ (146.3) |
Consolidated Statements of Acc6
Consolidated Statements of Accumulated Other Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Unrecognized actuarial net losses, tax | $ 20.5 | $ 22.2 | $ 36.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 136.9 | $ 41.6 |
Short-term investments | 4.8 | 4.7 |
Trade and other accounts receivable (less allowances of $3.6 million and $3.9 million, respectively) | 137.4 | 164.3 |
Inventories (less allowances of $8.8 million and $10.2 million, respectively): | ||
Finished goods | 104.4 | 127 |
Work in progress | 2.7 | 1.2 |
Raw materials | 52.8 | 56.7 |
Total inventories | 159.9 | 184.9 |
Current portion of deferred tax assets | 8.8 | 8.4 |
Prepaid expenses | 6.1 | 8.3 |
Prepaid income taxes | 3 | 2 |
Other current assets | 1.8 | 0 |
Total current assets | 458.7 | 414.2 |
Net property, plant and equipment | 76 | 80.8 |
Goodwill | 267.4 | 276.1 |
Other intangible assets | 168.7 | 181.1 |
Deferred finance costs | 1.4 | 1.1 |
Deferred tax assets, net of current portion | 1.4 | 0.7 |
Pension asset | 55.5 | 45.2 |
Other non-current assets | 0.9 | 0.7 |
Total assets | 1,030 | 999.9 |
Current liabilities: | ||
Accounts payable | 52.2 | 87.6 |
Accrued liabilities | 84.1 | 77.2 |
Current portion of long-term debt | 0 | 0.4 |
Current portion of finance leases | 0.7 | 0.5 |
Current portion of plant closure provisions | 6.4 | 5.7 |
Current portion of accrued income taxes | 7.9 | 5.6 |
Current portion of acquisition-related contingent consideration | 54.6 | 45.7 |
Current portion of deferred income | 0.2 | 0.2 |
Total current liabilities | 206.1 | 222.9 |
Long-term debt, net of current portion | 133 | 139 |
Finance leases, net of current portion | 2.4 | 1.7 |
Plant closure provisions, net of current portion | 31.3 | 28.4 |
Unrecognized tax benefits, net of current portion | 3.9 | 6.2 |
Deferred tax liabilities, net of current portion | 37.7 | 23 |
Pension liabilities | 9.2 | 10.4 |
Acquisition-related contingent consideration | 0 | 49.5 |
Deferred income, net of current portion | 0.6 | 0.9 |
Other non-current liabilities | 0.5 | 2 |
Equity: | ||
Common stock, $0.01 par value, authorized 40,000,000 shares, issued 29,554,500 shares | 0.3 | 0.3 |
Additional paid-in capital | 311 | 308.8 |
Treasury stock (5,453,078 and 5,263,481 shares at cost, respectively) | (91.8) | (78.7) |
Retained earnings | 496.4 | 391.8 |
Accumulated other comprehensive loss | (110.9) | (106.3) |
Total Innospec stockholders' equity | 605 | 515.9 |
Non-controlling interest | 0.3 | 0 |
Total equity | 605.3 | 515.9 |
Total liabilities and equity | $ 1,030 | $ 999.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 3.6 | $ 3.9 |
Inventory allowances | $ 8.8 | $ 10.2 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 29,554,500 | 29,554,500 |
Treasury stock, shares | 5,453,078 | 5,263,481 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash Flows from Operating Activities | ||||
Net income | $ 119.5 | $ 84.1 | $ 77.8 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | [1] | 35.2 | 29.1 | 20.4 |
Impairment of Octane Additives segment goodwill | 0 | 0 | 1.3 | |
Adjustment to fair value of contingent consideration | (40.7) | (1.9) | 0 | |
Deferred taxes | 12 | 5.8 | 5.8 | |
Excess tax benefit from stock-based payment arrangements | (0.5) | (0.4) | (3.8) | |
Cash contributions to defined benefit pension plans | (9) | (11.6) | (11) | |
Non-cash expense of defined benefit pension plans | 0.5 | 3.8 | 3 | |
Stock option compensation | 3.7 | 2.6 | 2.5 | |
Repayment of promissory note in civil complaint settlement | 0 | (5) | (5) | |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||
Trade and other accounts receivable | 13.6 | (0.9) | (1.4) | |
Inventories | 5.5 | (11.1) | (10.1) | |
Prepaid expenses | 1.8 | (1.3) | (0.5) | |
Accounts payable and accrued liabilities | (24.5) | 0.5 | (4.4) | |
Accrued income taxes | 2 | 14.9 | (14.7) | |
Plant closure provisions | 4.1 | 1.9 | 1.9 | |
Profit on disposal of subsidiary | (1.6) | 0 | 0 | |
Unrecognized tax benefits | (2.3) | (6.8) | 0.2 | |
Other non-current assets and liabilities | (1.6) | 2.6 | (0.7) | |
Net cash provided by operating activities | 117.7 | 106.3 | 61.3 | |
Cash Flows from Investing Activities | ||||
Capital expenditures | (17.6) | (13.5) | (11) | |
Business combinations, net of cash acquired | 0 | (98.7) | (94.4) | |
Proceeds from disposal of subsidiary | 41.5 | 0 | 0 | |
Internally developed software | (8.6) | (8.4) | (9.4) | |
Purchase of short-term investments | (6.7) | (5) | (7) | |
Sale of short-term investments | 6.4 | 6.6 | 5.7 | |
Net cash provided by/(used in) investing activities | 15 | (119) | (116.1) | |
Cash Flows from Financing Activities | ||||
Non-controlling interest | 0.3 | 0 | 0 | |
Proceeds from revolving credit facility | 6 | 53 | 145 | |
Repayments of revolving credit facility | (12) | (56) | (23) | |
Repayments of term loans | (0.4) | (1.7) | (0.2) | |
Refinancing costs | (1.5) | (0.1) | (0.9) | |
Excess tax benefit from stock-based payment arrangements | 0.5 | 0.4 | 3.8 | |
Dividend paid | (14.9) | (13.4) | (12) | |
Issue of treasury stock | 1 | 0.4 | 3.8 | |
Repurchase of common stock | (15.3) | (6.9) | (3.7) | |
Net cash provided by/(used in) financing activities | (36.3) | (24.3) | 112.8 | |
Effect of foreign currency exchange rate changes on cash | (1.1) | (1.6) | (0.2) | |
Net change in cash and cash equivalents | 95.3 | (38.6) | 57.8 | |
Cash and cash equivalents at beginning of year | 41.6 | 80.2 | 22.4 | |
Cash and cash equivalents at end of year | $ 136.9 | $ 41.6 | $ 80.2 | |
[1] | Amortization of deferred finance costs of $1.2 million (2014 - $0.7 million, 2013 - $0.4 million) for the year are included in depreciation and amortization in the cash flow statement but in interest expense in the income statement. Cash payments/receipts in respect of income taxes and interest are disclosed in Note 10 and Note 11, respectively, of the Notes to the Consolidated Financial Statements. |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Amortization of deferred finance costs | $ 1.2 | $ 0.7 | $ 0.4 |
Consolidated Statement of Equit
Consolidated Statement of Equity - USD ($) $ in Millions | Total | Bachman [Member] | Chemsil [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Bachman [Member] | Additional Paid-In Capital [Member]Chemsil [Member] | Treasury Stock [Member] | Treasury Stock [Member]Bachman [Member] | Treasury Stock [Member]Chemsil [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2012 | $ 317 | $ 0.3 | $ 292.1 | $ (85) | $ 254.1 | $ (144.5) | $ 0 | ||||||
Net income | 77.8 | 77.8 | |||||||||||
Dividend paid | (12) | (12) | |||||||||||
Changes in cumulative translation adjustment | 1.2 | 1.2 | |||||||||||
Non-controlling interest | 0 | 0 | |||||||||||
Changes in unrealized gains/(losses) on derivative instruments, net of tax | (0.1) | (0.1) | |||||||||||
Treasury stock re-issued | 4.6 | (4.2) | 8.8 | ||||||||||
Treasury stock repurchased | (3.7) | (3.7) | |||||||||||
Excess tax benefit from stock-based payment arrangements | 3.8 | 3.8 | |||||||||||
Stock option compensation | 2.5 | 2.5 | |||||||||||
Fair value of acquisition-related consideration | $ 15 | $ 6.2 | $ 10.5 | $ 4.1 | $ 4.5 | $ 2.1 | |||||||
Amortization of prior service credit, net of tax | (1) | (1) | |||||||||||
Amortization of actuarial net losses, net of tax | 4.8 | 4.8 | |||||||||||
Actuarial net gains/losses arising during the year, net of tax | (6.7) | (6.7) | |||||||||||
Ending Balance at Dec. 31, 2013 | 409.4 | 0.3 | 308.8 | (73.3) | 319.9 | (146.3) | 0 | ||||||
Net income | 84.1 | 84.1 | |||||||||||
Dividend paid | (13.4) | (13.4) | |||||||||||
Changes in cumulative translation adjustment | (18) | (18) | |||||||||||
Non-controlling interest | 0 | 0 | |||||||||||
Changes in unrealized gains/(losses) on derivative instruments, net of tax | 0 | ||||||||||||
Treasury stock re-issued | 0.5 | (1) | 1.5 | ||||||||||
Treasury stock repurchased | (6.9) | (6.9) | |||||||||||
Excess tax benefit from stock-based payment arrangements | 0.4 | 0.4 | |||||||||||
Stock option compensation | 2.6 | 2.6 | |||||||||||
Fair value of contingent consideration | (0.8) | (2) | 1.2 | ||||||||||
Amortization of prior service credit, net of tax | (1) | (1) | |||||||||||
Amortization of actuarial net losses, net of tax | 4.3 | 4.3 | |||||||||||
Actuarial net gains/losses arising during the year, net of tax | 54.7 | 54.7 | |||||||||||
Ending Balance at Dec. 31, 2014 | 515.9 | 0.3 | 308.8 | (78.7) | 391.8 | (106.3) | 0 | ||||||
Net income | 119.5 | 119.5 | |||||||||||
Dividend paid | (14.9) | (14.9) | |||||||||||
Changes in cumulative translation adjustment | (11) | (11) | |||||||||||
Non-controlling interest | 0.3 | 0.3 | |||||||||||
Changes in unrealized gains/(losses) on derivative instruments, net of tax | 0 | ||||||||||||
Business disposal | (0.4) | (0.4) | |||||||||||
Treasury stock re-issued | 0.6 | (1.6) | 2.2 | ||||||||||
Treasury stock repurchased | (15.3) | (15.3) | |||||||||||
Excess tax benefit from stock-based payment arrangements | 0.5 | 0.5 | |||||||||||
Stock option compensation | 3.7 | 3.7 | |||||||||||
Amortization of prior service credit, net of tax | (1) | (1) | |||||||||||
Amortization of actuarial net losses, net of tax | 4.2 | 4.2 | |||||||||||
Actuarial net gains/losses arising during the year, net of tax | 3.2 | 3.2 | |||||||||||
Ending Balance at Dec. 31, 2015 | $ 605 | $ 0.3 | $ 311 | $ (91.8) | $ 496.4 | $ (110.9) | $ 0.3 |
Consolidated Statement of Equ12
Consolidated Statement of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend paid, per share | $ 0.61 | $ 0.55 | $ 0.50 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1. Nature of Operations Innospec develops, manufactures, blends, markets and supplies fuel additives, oilfield chemicals, personal care products and other specialty chemicals. Our products are sold primarily to oil and gas exploration and production companies, oil refineries, personal care companies, and other chemical and industrial companies throughout the world. Our fuel additives help improve fuel efficiency, boost engine performance and reduce harmful emissions. Our oilfield services business supplies drilling and production chemicals which make exploration and production more cost-efficient, and more environmentally-friendly. Our other specialty chemicals provide effective technology-based solutions for our customers’ processes or products focused in the Personal Care and Polymers markets. Our Octane Additives business manufactures products for use in automotive gasoline and provides services in respect of environmental remediation. Our principal product lines and reportable segments are Fuel Specialties, Performance Chemicals and Octane Additives. See Note 3 of the Notes to the Consolidated Financial Statements for financial information on the Company’s reportable segments. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 2. Accounting Policies Basis of preparation: Use of estimates: Cash equivalents: Short-term investments: Trade and other accounts receivable: Inventories: Property, plant and equipment: Buildings 7 to 25 years Equipment 3 to 10 years Goodwill and other intangible assets: Deferred finance costs: Impairment of long-lived assets: Derivative instruments: Environmental compliance and remediation: Acquisition-related contingent consideration: Revenue recognition: Components of net sales: Components of cost of goods sold: Components of selling, general and administrative expenses: Research and development expenses: Earnings per share: Foreign currencies: Stock-based compensation plans: Pension plans and other post-employment benefits: Income taxes: |
Segment Reporting and Geographi
Segment Reporting and Geographical Area Data | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographical Area Data | Note 3. Segment Reporting and Geographical Area Data Innospec divides its business into three segments for management and reporting purposes: Fuel Specialties, Performance Chemicals and Octane Additives. The Fuel Specialties and Performance Chemicals segments operate in markets where we actively seek growth opportunities although their ultimate customers are different. The Octane Additives segment is generally characterized by unpredictable and declining demand. In 2015, the Company had as a significant customer in the Fuel Specialties segment, Royal Dutch Shell plc and its affiliates (“Shell”), which accounted for $65.8 million (6.5%) of our net group sales. In 2014 and 2013, Shell accounted for $81.9 million (8.5%) and $83.1 million (10.1%) of our net group sales, respectively. The Company evaluates the performance of its segments based on operating income. The following table analyzes sales and other financial information by the Company’s reportable segments: (in millions) 2015 2014 2013 Net sales: Fuel Specialties $ 758.3 $ 682.2 $ 567.4 Performance Chemicals 194.5 223.5 192.4 Octane Additives 59.5 55.2 59.0 $ 1,012.3 $ 960.9 $ 818.8 Gross profit: Fuel Specialties $ 265.1 $ 219.0 $ 181.1 Performance Chemicals 52.4 54.4 46.3 Octane Additives 28.5 28.6 27.8 $ 346.0 $ 302.0 $ 255.2 Operating income: Fuel Specialties $ 103.9 $ 104.4 $ 92.7 Performance Chemicals 23.5 25.6 23.6 Octane Additives 24.7 22.6 21.5 Pension credit/(charge) 0.2 (3.3 ) (2.3 ) Corporate costs (38.3 ) (38.7 ) (43.6 ) Adjustment to fair value of contingent consideration 40.7 1.9 0.0 Profit on disposal of subsidiary 1.6 0.0 0.0 Impairment of Octane Additives segment goodwill 0.0 0.0 (1.3 ) Total operating income $ 156.3 $ 112.5 $ 90.6 Identifiable assets at year end: Fuel Specialties $ 633.0 $ 676.9 $ 446.4 Performance Chemicals 137.0 181.0 176.8 Octane Additives 28.7 29.2 42.0 Corporate 231.3 112.8 129.5 $ 1,030.0 $ 999.9 $ 794.7 The pension credit/(charge) relates to the United Kingdom defined benefit pension plan which is closed to future service accrual. The charges related to our other much smaller pension arrangements in the U.S. and overseas are included in the segment and income statement captions consistent with the related employees’ costs. The Company includes within the corporate costs line item the costs of: • managing the Group as a company with securities listed on the NASDAQ and registered with the SEC; • the President/CEO’s office, group finance, group human resources, group legal and compliance counsel, and investor relations; • running the corporate offices in the U.S. and Europe; • the corporate development function since they do not relate to the current trading activities of our other reporting segments; and • the corporate share of the information technology, accounting and human resources departments. Sales by geographical area are reported by source, being where the transactions originated. Intercompany sales are priced using an appropriate pricing methodology and are eliminated in the consolidated financial statements. Identifiable assets are those directly associated with the operations of the geographical area. Goodwill has not been allocated by geographical location on the grounds that it would be impracticable to do so. (in millions) 2015 2014 2013 Net sales by source: United States $ 571.9 $ 468.6 $ 276.1 United Kingdom 445.2 486.1 502.4 Rest of Europe 133.3 146.9 129.1 Rest of World 22.1 21.4 0.2 Sales between areas (160.2 ) (162.1 ) (89.0 ) $ 1,012.3 $ 960.9 $ 818.8 Income before income taxes: United States $ 52.7 $ 15.2 $ 10.0 United Kingdom 60.6 57.8 43.7 Rest of Europe 42.0 39.3 40.4 Rest of World (3.0 ) (1.4 ) 0.0 Impairment of Octane Additives segment goodwill 0.0 0.0 (1.3 ) $ 152.3 $ 110.9 $ 92.8 Long-lived assets at year end: United States $ 185.8 $ 197.9 $ 148.2 United Kingdom 49.3 54.1 29.4 Rest of Europe 10.6 10.4 11.5 Rest of World 0.4 0.6 0.0 $ 246.1 $ 263.0 $ 189.1 Identifiable assets at year end: United States $ 412.3 $ 449.3 $ 291.7 United Kingdom 303.4 216.4 261.5 Rest of Europe 30.9 39.0 53.2 Rest of World 16.0 19.1 0.4 Goodwill 267.4 276.1 187.9 $ 1,030.0 $ 999.9 $ 794.7 |
Profit on Disposal of Subsidiar
Profit on Disposal of Subsidiary | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Profit on Disposal of Subsidiary | Note 4. Profit on Disposal of Subsidiary On July 6, 2015 the Company divested its 100% equity interest in its Aroma Chemicals business, Innospec Widnes Limited, for cash consideration of $41.5 million after transaction costs. (in millions) Total consideration $ 41.5 Net assets disposed (33.9 ) Other effects (1) (6.0 ) Net gain $ 1.6 (1) Other effects include foreign exchange losses transferred to the income statement During the twelve month period ended December 31, 2015 the Aroma Chemicals business generated pre-tax profits amounting to $2.6 million (2014 – $7.3 million). Under the guidance in ASU 2014-08, it was determined that the Aroma Chemicals business does not qualify as discontinued operations as of December 31, 2015. The disposal of the Aroma Chemicals business does not represent a strategic shift that has or will have a major impact on our operations or financial results. The following table presents the aggregate carrying amount of the major classes of assets and liabilities related to the Aroma Chemicals business disposed on July 6, 2015: (in millions) Assets Trade and other accounts receivable $ 9.5 Inventories 15.2 Other current assets 0.3 Property, plant and equipment 9.0 Goodwill 7.6 Total assets $ 41.6 Liabilities Accounts payable and accrued liabilities $ 5.5 Accrued income taxes 1.6 Plant closure provision 0.3 Other liabilities 0.3 Total liabilities $ 7.7 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5. Earnings Per Share Basic earnings per share is based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the effect of options that are dilutive and outstanding during the period. Per share amounts are computed as follows: 2015 2014 2013 Numerator (in millions): Net income available to common stockholders $ 119.5 $ 84.1 $ 77.8 Denominator (in thousands): Weighted average common shares outstanding 24,107 24,391 23,651 Dilutive effect of stock options and awards 505 487 505 Denominator for diluted earnings per share 24,612 24,878 24,156 Net income per share, basic: $ 4.96 $ 3.45 $ 3.29 Net income per share, diluted: $ 4.86 $ 3.38 $ 3.22 In 2015, 2014 and 2013 the average number of anti-dilutive options excluded from the calculation of diluted earnings per share were 0, 36,775 and 0 respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 6. Property, Plant and Equipment Property, plant and equipment consists of the following: (in millions) 2015 2014 Land $ 6.2 $ 8.8 Buildings 21.6 20.7 Equipment 128.0 151.8 Work in progress 5.2 5.7 161.0 187.0 Less accumulated depreciation (85.0 ) (106.2 ) $ 76.0 $ 80.8 Of the total net book value of equipment at December 31, 2015 $3.0 million (2014 – $2.2 million) are in respect of assets held under finance leases. Depreciation charges were $13.0 million, $10.6 million and $8.9 million in 2015, 2014 and 2013, respectively. The estimated additional cost to complete work in progress is $2.4 million (2014 – $1.4 million). |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7. Goodwill The following table analyzes goodwill for 2015 and 2014. (in millions) Fuel Performance Octane Total At January 1, 2014 Gross cost (1) $ 141.1 $ 46.8 $ 236.5 $ 424.4 Accumulated impairment losses 0.0 0.0 (236.5 ) (236.5 ) Net book amount 141.1 46.8 0.0 187.9 Exchange effect (0.3 ) (0.1 ) 0.0 (0.4 ) Acquisitions 88.1 0.0 0.0 88.1 Adjustments to purchase price allocation 0.5 0.0 0.0 0.5 At December 31, 2014 Gross cost (1) 229.4 46.7 236.5 512.6 Accumulated impairment losses 0.0 0.0 (236.5 ) (236.5 ) Net book amount 229.4 46.7 0.0 276.1 Exchange effect (0.2 ) 0.0 0.0 (0.2 ) Disposals 0.0 (7.6 ) 0.0 (7.6 ) Adjustments to purchase price allocation (0.9 ) 0.0 0.0 (0.9 ) At December 31, 2015 Gross cost (1) 228.3 39.1 236.5 503.9 Accumulated impairment losses 0.0 0.0 (236.5 ) (236.5 ) Net book amount $ 228.3 $ 39.1 $ 0.0 $ 267.4 (1) Gross cost is net of $8.7 million, $0.3 million and $289.5 million of historical accumulated amortization in respect of the Fuel Specialties, Performance Chemicals and Octane Additives reporting segments, respectively. The Company’s reporting units, the level at which goodwill is tested for impairment, are consistent with the reportable segments: Fuel Specialties, Performance Chemicals and Octane Additives. The components in each segment (including products, markets and competitors) have similar economic characteristics and the segments, therefore, reflect the lowest level at which operations and cash flows can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company. The Company assesses goodwill for impairment on at least an annual basis, initially based on a qualitative assessment to determine whether it is more likely than not that the fair value of a segment is less than the carrying amount. If a potential impairment is identified then a two-step impairment test is followed. The Company performs its annual impairment assessment in respect of our Fuel Specialties and Performance Chemicals goodwill as at December 31, 2015. At this date we had $228.3 million and $39.1 million of goodwill relating to our Fuel Specialties and Performance Chemicals segments, respectively. Our impairment assessment concluded that there had been no impairment of goodwill in respect of those reporting segments. For the years ended December 31, 2014 and 2013 the Company performed annual impairment tests and concluded that there had been no impairment of goodwill in respect of those reporting segments at those balance sheet dates. We believe that where appropriate the assumptions used in our impairment assessments are reasonable, but that they are judgmental, and variations in any of the assumptions may result in materially different calculations of any potential impairment charges. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 8. Other Intangible Assets Other intangible assets comprise the following: (in millions) 2015 2014 Gross cost: – Product rights $ 34.0 $ 34.0 – Brand names 8.9 8.9 – Technology 55.1 59.9 – Customer relationships 85.1 87.9 – Patents 2.9 2.9 – Non-compete agreements 4.1 4.1 – Marketing related 22.1 22.1 – Internally developed software 36.4 27.8 248.6 247.6 Accumulated amortization: – Product rights (8.8 ) (5.0 ) – Brand names (2.0 ) (0.8 ) – Technology (8.9 ) (10.3 ) – Customer relationships (25.7 ) (21.8 ) – Patents (2.9 ) (2.9 ) – Non-compete agreements (2.5 ) (1.6 ) – Marketing related (20.3 ) (19.3 ) – Internally developed software (8.8 ) (4.8 ) (79.9 ) (66.5 ) $ 168.7 $ 181.1 Product rights Following the acquisition of Chemsil on August 30, 2013, the Company recognized an intangible asset of $34.0 million in respect of Chemsil’s product rights portfolio. This asset has an expected life of 9 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. An amortization expense of $3.8 million was recognized in 2015 (2014 – $3.7 million) in cost of goods sold. Brand names Following the acquisition of Independence on October 27, 2014, the Company recognized an intangible asset of $6.0 million in respect of Independence’s brand name. This asset has an expected life of 10 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Bachman on November 4, 2013, the Company recognized an intangible asset of $2.9 million in respect of Bachman’s brand names. This asset has an expected life of 5 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. An amortization expense of $1.2 million was recognized in 2015 (2014 – $0.7 million) in selling, general and administrative expenses. Technology Following the acquisition of Independence on October 27, 2014, the Company recognized an intangible asset of $26.0 million in respect of Independence’s product formulations. This asset has an expected life of 15 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Bachman on November 4, 2013, the Company recognized an intangible asset of $8.5 million in respect of Bachman’s core chemistry know-how of oilfield chemicals. This asset has an expected life of 15 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Strata on December 24, 2012, the Company recognized an intangible asset of $18.3 million in respect of technological know-how of the mixing and manufacturing process, patents which protect the technology and the associated product branding. This asset has an expected life of 16.5 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. An amortization expense of $3.4 million was recognized in 2015 (2014 – $2.4 million) in cost of goods sold. Customer relationships Following the acquisition of Independence on October 27, 2014, the Company recognized an intangible asset of $29.2 million in respect of Independence’s long-term customer relationships. This asset has a weighted average expected life of 10 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Bachman on November 4, 2013, the Company recognized an intangible asset of $14.5 million in respect of Bachman’s long-term customer relationships. This asset has a weighted average expected life of 14.5 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Strata on December 24, 2012, the Company recognized an intangible asset of $28.2 million in respect of long-term customer relationships. This asset has an expected life of 11.5 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Finetex (now merged into Innospec Active Chemicals LLC) in January 2005, the Company recognized an intangible asset of $4.2 million in relation to customer lists acquired. This asset has an expected life of 13 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. An amortization expense of $6.7 million was recognized in 2015 (2014 – $5.0 million) in selling, general and administrative expenses. Non-compete agreements Following the acquisition of Independence on October 27, 2014, the Company recognized an intangible asset of $2.6 million in respect of a non-compete agreement. This asset has an expected life of 3 years and is being amortized on a straight-line basis over this period. No residual value is anticipated. Following the acquisition of Strata on December 24, 2012, the Company recognized an intangible asset of $1.5 million in respect of a non-compete agreement. This asset had an expected life of 2 years and is now fully amortized. An amortization expense of $0.9 million was recognized in 2015 (2014 – $0.9 million) in selling, general and administrative expenses. Marketing related An intangible asset of $28.4 million was recognized in the second quarter of 2007 in respect of Ethyl Corporation foregoing their entitlement effective April 1, 2007 to a share of the future income stream under the sales and marketing agreements to market and sell TEL. In 2008, contract provisions no longer deemed necessary of $6.3 million were offset against the intangible asset. The amount attributed to the Octane Additives reporting segment was amortized straight-line to December 31, 2013 and the amount attributed to the Fuel Specialties reporting segment is being amortized straight-line to December 31, 2017. An amortization expense of $1.0 million was recognized in 2015 (2014 – $1.0 million) in cost of goods sold. Internally developed software In 2015 we continued with the process of developing our new, company-wide, information system platform. In the fourth quarter of 2015 we have implemented the new platform at the majority of reporting units outside of the U.S. which combined with the initial deployment in 2013 means the majority of our businesses are now operating with the new platform. At December 31, 2015 we had capitalized $36.4 million (2014 – $27.8 million) in relation to this internally developed software. This asset has an expected life of 5 years from the point in time each deployment is completed and is being amortized on a straight-line basis over these periods. No residual value is anticipated. An amortization expense of $4.0 million was recognized in 2015 (2014 – $3.8 million) in selling, general and administrative expenses. Amortization expense The aggregate of other intangible asset amortization expense was $21.0 million, $17.8 million and $11.1 million in 2015, 2014 and 2013, respectively, of which $8.2 million, $7.4 million and $3.8 million, respectively, was recognized in cost of goods sold, and the remainder was recognized in selling, general and administrative expenses. Future amortization expense is estimated to be as follows for the next five years: (in millions) 2016 $ 24.3 2017 $ 24.1 2018 $ 21.1 2019 $ 17.7 2020 $ 17.4 |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Note 9. Pension Plans United Kingdom plan The Company maintains a defined benefit pension plan (the “Plan”) covering a number of its current and former employees in the United Kingdom, although it does also have other much smaller pension arrangements in the U.S. and overseas. The Plan is closed to future service accrual but has a large number of deferred and current pensioners. The Projected Benefit Obligation (“PBO”) is based on final salary and years of credited service reduced by social security benefits according to a plan formula. Normal retirement age is 65 but provisions are made for early retirement. The Plan’s assets are invested by several investment management companies in funds holding United Kingdom and overseas equities, United Kingdom and overseas fixed interest securities, index linked securities, property unit trusts and cash or cash equivalents. The trustees’ investment policy is to seek to achieve specified objectives through investing in a suitable mixture of real and monetary assets. The trustees recognize that the returns on real assets, while expected to be greater over the long-term than those on monetary assets, are likely to be more volatile. A mixture across asset classes should nevertheless provide the level of returns required by the Plan to meet its liabilities at an acceptable level of risk for the trustees and an acceptable level of cost to the Company. In 2015, the Company contributed $9.0 million in cash to the Plan in accordance with an actuarial deficit recovery plan agreed with the trustees. (in millions) 2015 2014 2013 Plan net pension charge/(credit): Service cost $ 1.5 $ 1.7 $ 1.6 Interest cost on PBO 27.7 34.7 31.3 Expected return on plan assets (33.4 ) (37.2 ) (35.5 ) Amortization of prior service credit (1.2 ) (1.3 ) (1.3 ) Amortization of actuarial net losses 5.2 5.4 6.2 $ (0.2 ) $ 3.3 $ 2.3 Plan assumptions at December 31, (%): Discount rate 3.69 3.55 4.40 Inflation rate 2.15 2.15 2.55 Rate of return on plan assets – overall on bid-value 4.20 4.05 4.85 Rate of return on plan assets – equity securities 6.65 6.50 7.50 Rate of return on plan assets – debt securities 2.85 2.75 3.40 Plan asset allocation by category (%): Equity securities 34 32 35 Debt securities 62 63 61 Cash 4 5 4 100 100 100 The discount rate used represents the annualized yield based on a cash flow matched methodology with reference to an AA corporate bond spot curve and having regard to the duration of the Plan’s liabilities. The inflation rate is derived using a similar cash flow matched methodology as used for the discount rate but having regard to the difference between yields on fixed interest and index linked United Kingdom government gilts. A 0.25% change in the discount rate assumption would change the PBO by approximately $24 million and the net pension credit for 2016 would be unchanged. A 0.25% change in the level of price inflation assumption would change the PBO by approximately $17 million and the net pension credit for 2016 by approximately $0.1 million. The current investment strategy of the Plan is to obtain an asset allocation of 65% debt securities and 35% equity securities in order to achieve a more predictable return on assets. As at December 31, 2015, approximately 35% (December 31, 2014 – 50%) of the Plan’s assets were held in index-tracking funds with one investment management company. Approximately 16% (December 31, 2014 – 40%) of the Plan’s assets were invested in United Kingdom government gilts. No more than 5% of the Plan’s assets were invested in any one individual company’s investment funds. Movements in PBO and fair value of Plan assets are as follows: (in millions) 2015 2014 Change in PBO: Opening balance $ 817.1 $ 819.8 Interest cost 27.7 34.7 Service cost 1.5 1.7 Benefits paid (42.9 ) (47.6 ) Actuarial losses/(gains) (21.8 ) 59.3 Exchange effect (41.9 ) (50.8 ) Closing balance $ 739.7 $ 817.1 Fair value of plan assets: Opening balance $ 862.3 $ 790.3 Actual benefits paid (42.9 ) (47.6 ) Actual contributions by employer 9.0 11.4 Actual return on assets 11.5 161.7 Exchange effect (44.7 ) (53.5 ) Closing balance $ 795.2 $ 862.3 The accumulated benefit obligation for the Plan was $739.7 million and $817.1 million at December 31, 2015 and 2014, respectively. For the vast majority of assets, a market approach is adopted to assess the fair value of the assets, with the inputs being the quoted market prices for the actual securities held in the relevant fund. Equity securities Common and preferred stock for which market prices are readily available at the measurement date are valued at the last reported sale price or official closing price on the primary market or exchange on which they are actively traded and are classified in Level 1. Fixed income securities Fixed income securities are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and are classified as Level 1. Insurance contracts During the year the Company has invested in insurance contracts, known as buy-in contracts. The value of the insurance contract used significant unobservable inputs including plan participant medical data, in addition to observable inputs which includes expected return on assets and estimated value premium. Therefore, we have classified the contracts as Level 3 investments. Fair value estimates are provided by external parties and are subsequently reviewed and approved by management. The fair values of pension assets by level of input were as follows: (in millions) Quoted Prices Significant (Level 2) Significant (Level 3) Total At December 31, 2015 Fixed income securities: Debt securities issued by U.S. government and government agencies $ 0.4 $ $ $ 0.4 Debt securities issued by non-U.S. governments and government agencies 132.1 132.1 Corporate debt securities 189.7 189.7 Other asset-backed securities 0.2 0.2 Equity securities: Equity securities held for proprietary investment purposes 125.0 125.0 Real estate 64.7 64.7 Insurance contracts 171.9 171.9 Investments measured at net asset value (1) 47.6 Other assets 31.6 31.6 Total assets at fair value 512.1 31.6 171.9 763.2 Cash 32.0 32.0 Total plan assets $ 544.1 $ 31.6 $ 171.9 $ 795.2 At December 31, 2014 Fixed income securities: Debt securities issued by U.S. government and government agencies $ 1.1 $ $ $ 1.1 Debt securities issued by non-U.S. governments and government agencies 324.3 324.3 Corporate debt securities 211.4 211.4 Residential mortgage-backed securities 0.2 0.2 Other asset-backed securities 3.1 3.1 Equity securities: Equity securities held for proprietary investment purposes 134.1 134.1 Real estate 65.6 65.6 Investments measured at net asset value (1) 44.1 Other assets 32.7 0.0 32.7 Total assets at fair value 739.8 32.7 0.0 816.6 Cash 45.7 45.7 Total plan assets $ 785.5 $ 32.7 $ 0.0 $ 862.3 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. The reconciliation of the fair value of the Plan assets measured at net asset value was as follows: (in millions) Other Assets Balance at December 31, 2013 $ 38.3 Realized/unrealized gains/(losses): Relating to assets still held at the reporting date 7.3 Relating to assets sold during the period 0.0 Purchases, issuances and settlements 0.7 Exchange effect (2.2 ) Balance at December 31, 2014 44.1 Realized/unrealized gains/(losses): Relating to assets still held at the reporting date 4.7 Relating to assets sold during the period 0.0 Purchases, issuances and settlements 6.5 Exchange effect (7.7 ) Balance at December 31, 2015 $ 47.6 The projected net pension credit for the year ending December 31, 2016 is as follows: (in millions) Service cost $ 1.0 Interest cost on PBO 22.4 Expected return on plan assets (32.3 ) Amortization of prior service credit (1.2 ) Amortization of actuarial net losses 2.8 $ (7.3 ) The following benefit payments are expected to be made: (in millions) 2016 $ 45.2 2017 $ 43.1 2018 $ 43.7 2019 $ 44.3 2020 $ 44.9 2021-2025 $ 233.1 German plan The Company also maintains an unfunded defined benefit pension plan covering a number of its current and former employees in Germany (the “German plan”). The German plan is closed to new entrants and has no assets. (in millions) 2015 2014 2013 Plan net pension charge: Service cost $ 0.2 $ 0.2 $ 0.2 Interest cost on PBO 0.2 0.3 0.3 Amortization of prior service cost/(credit) 0.0 0.0 (0.1 ) Amortization of actuarial net loss 0.3 0.1 0.2 $ 0.7 $ 0.6 $ 0.6 Plan assumptions at December 31, (%): Discount rate 2.40 2.10 3.50 Inflation rate 1.75 1.75 2.00 Rate of increase in compensation levels 2.75 2.75 2.75 Movements in PBO of the German plan are as follows: (in millions) 2015 2014 Change in PBO: Opening balance $ 10.4 $ 9.6 Service cost 0.2 0.2 Interest cost 0.2 0.3 Benefits paid (0.2 ) (0.2 ) Actuarial losses/(gains) (0.3 ) 1.8 Exchange effect (1.1 ) (1.3 ) Closing balance $ 9.2 $ 10.4 The amount of unrecognized actuarial net losses in other comprehensive loss in respect of the German plan is $1.9 million, net of tax of $0.6 million. Other plans Company contributions to defined contribution schemes during 2015 were $8.5 million (2014 – $8.2 million). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows: (in millions) Interest and Unrecognized Total Opening balance at January 1, 2013 $ 0.6 $ 12.2 $ 12.8 Additions for tax positions of prior periods 0.6 0.2 0.8 Reductions due to lapsed statutes of limitations (0.1 ) (0.5 ) (0.6 ) Closing balance at December 31, 2013 1.1 11.9 13.0 Current (0.6 ) (6.2 ) (6.8 ) Non-current $ 0.5 $ 5.7 $ 6.2 Opening balance at January 1, 2014 $ 1.1 $ 11.9 $ 13.0 Reductions for tax positions of prior periods (0.4 ) (3.6 ) (4.0 ) Additions for tax positions of prior periods 0.0 0.1 0.1 Additions for current year tax positions 0.0 0.2 0.2 Reductions due to lapsed statutes of limitations (0.2 ) (2.9 ) (3.1 ) Closing balance at December 31, 2014 0.5 5.7 6.2 Current 0.0 0.0 0.0 Non-current $ 0.5 $ 5.7 $ 6.2 Opening balance at January 1, 2015 $ 0.5 $ 5.7 $ 6.2 Reductions for tax positions of prior periods 0.0 0.0 0.0 Additions for tax positions of prior periods 0.1 0.3 0.4 Additions for current year tax positions 0.0 1.2 1.2 Reductions due to lapsed statutes of limitations (0.3 ) (3.6 ) (3.9 ) Closing balance at December 31, 2015 0.3 3.6 3.9 Current 0.0 0.0 0.0 Non-current $ 0.3 $ 3.6 $ 3.9 All of the $3.9 million of unrecognized tax benefits, and interest and penalties, would impact our effective tax rate if recognized. We recognize accrued interest and penalties associated with uncertain tax positions as part of income taxes in our consolidated statements of income. During 2015, the Company recorded a net reduction of $2.3 million in unrecognized tax benefits and associated interest and penalties. The Company or one of its subsidiaries files income tax returns with the U.S. federal government, and various state and foreign jurisdictions. As previously disclosed, one of the Company’s U.S. subsidiaries received notification in March 2015 of a federal income tax examination by the IRS in respect of 2013. The examination was effectively settled in the fourth quarter of 2015 with no additional tax cost to the Company. The Company’s German subsidiaries received a tax audit notification in October 2015 in respect of 2010 – 2014 inclusive. The Company currently anticipates that adjustments, if any, arising out of this tax audit would not result in a material change to the Company’s financial position as at December 31, 2015. The Company and its U.S. subsidiaries remain open to examination by the IRS for years 2012 onwards. The Company’s subsidiaries in foreign tax jurisdictions are open to examination including France (2013 onwards), Germany (2010 onwards), Switzerland (2014 onwards) and the United Kingdom (2014 onwards). The sources of income before income taxes were as follows: (in millions) 2015 2014 2013 Domestic $ 52.7 $ 15.2 $ 10.0 Foreign 99.6 95.7 82.8 $ 152.3 $ 110.9 $ 92.8 The components of income tax charges are summarized as follows: (in millions) 2015 2014 2013 Current: Federal $ 5.2 $ 4.5 $ 0.8 State and local 1.3 2.1 0.8 Foreign 14.3 14.9 6.8 20.8 21.5 8.4 Deferred: Federal 12.8 3.3 1.7 State and local 0.5 0.3 0.1 Foreign (1.3 ) 1.7 4.8 12.0 5.3 6.6 $ 32.8 $ 26.8 $ 15.0 Cash payments for income taxes were $22.5 million, $11.6 million and $21.1 million during 2015, 2014 and 2013, respectively. The effective tax rate varies from the U.S. federal statutory rate because of the factors indicated below: 2015 2014 2013 Statutory rate 35.0 % 35.0 % 35.0 % Foreign income inclusions 1.8 5.5 4.2 Foreign tax rate differential (9.6 ) (14.6 ) (14.6 ) Tax charge/(credit) from previous years (0.5 ) 4.7 (2.9 ) Net charge/(credit) from unrecognized tax benefits (1.5 ) (6.2 ) 0.2 Foreign currency translation (1.9 ) 1.0 (2.7 ) Other items and adjustments, net (1.1 ) (1.2 ) (3.9 ) United Kingdom income tax rate reduction (0.7 ) 0.0 0.9 21.5 % 24.2 % 16.2 % The most significant factor is the mix of taxable profits generated in the different geographical localities in which the Group operates, which continues to have a significant positive impact on the effective rate. Foreign income inclusions arise each year from certain types of income earned overseas being taxable under the U.S. tax regulations. These types of income include Subpart F income, principally from foreign based company sales in the United Kingdom, including the associated Section 78 tax gross up, and also from the income earned by certain overseas subsidiaries taxable under the U.S. tax regime. Foreign income inclusions have a negative impact on the effective tax rate. Foreign tax credits can fully or partially offset these incremental U.S. taxes from foreign income inclusions. The utilization of foreign tax credits varies year on year as this is dependent on a number of variable factors which are difficult to predict and may in certain years prevent any offset of foreign tax credits. The effective rate is positively impacted by the utilization of foreign tax credits against foreign income inclusions in 2015. As a consequence of the Group having operations outside of the U.S., it is exposed to foreign currency fluctuations. These have had a positive impact on the effective rate in 2015. Other items do not have a material impact on the effective tax rate. Details of deferred tax assets and liabilities are analyzed as follows: (in millions) 2015 2014 Deferred tax assets: Foreign tax credits $ 0.0 $ 0.8 Accrued expenses 0.3 0.3 Stock options 5.2 5.0 Excess of tax over book basis in property, plant and equipment 0.1 0.4 Net operating loss carry forwards 2.7 0.6 Pension assets 0.6 0.7 Intangible assets 3.3 5.3 Accretion expense 4.8 0.9 Other 5.0 4.5 Subtotal 22.0 18.5 Less valuation allowance 0.0 0.0 Total net deferred tax assets $ 22.0 $ 18.5 Deferred tax liabilities: Excess of book over tax basis in property, plant and equipment $ (4.1 ) $ (2.7 ) Goodwill amortization (11.3 ) (13.0 ) Intangible amortization (23.4 ) (7.2 ) Pension liabilities (10.0 ) (9.0 ) Other (0.7 ) (0.5 ) Total deferred tax liabilities $ (49.5 ) $ (32.4 ) Net deferred tax liability $ (27.5 ) $ (13.9 ) Current portion of deferred tax assets $ 8.8 $ 8.4 Deferred tax assets, net of current portion 1.4 0.7 Current portion of deferred tax liabilities 0.0 0.0 Deferred tax liabilities, net of current portion (37.7 ) (23.0 ) $ (27.5 ) $ (13.9 ) The Company evaluates deferred tax assets to determine whether it is more likely than not that they will be realized. Valuation allowances are reviewed each period on a tax jurisdiction by tax jurisdiction basis to analyze whether there is sufficient positive or negative evidence to support a change in judgment about the realizability of the related deferred tax assets. As a result of the Company’s assessment of its deferred tax assets at December 31, 2015, the Company considers it more likely than not that it will recover the full benefit of its deferred tax assets and no valuation allowance is required. Should it be determined in the future that it is no longer more likely than not that these assets will be realized, a valuation allowance would be required, and the Company’s operating results would be adversely affected during the period in which such a determination would be made. Net operating loss carry forwards result in a deferred tax asset of $2.7 million (2014 – $0.6 million). The net operating loss carry forwards arose in the U.S. and in three of the Company’s foreign subsidiaries. The net operating loss carry forwards of $0.2 million in the U.S. arose from state tax losses in prior periods and a current year federal income tax loss in one of the Company’s U.S. subsidiaries. It is expected that sufficient taxable profits will be generated in the U.S. against which the federal net operating loss carry forwards of $0.1 million can be relieved prior to their expiration in 2035, and the state net operating loss carry forwards of $0.1 million can be relieved prior to their expiration in the period 2016 to 2033. The net operating loss carry forwards in three of the Company’s foreign subsidiaries totaling $2.5 million arose primarily in the current period and it is expected that sufficient taxable profits will be generated against which these net operating loss carry forwards can be relieved. These losses can be carried forward indefinitely without expiration. The Company is in a position to control whether or not to repatriate foreign earnings and we currently do not expect to make a repatriation in the foreseeable future. No taxes have been provided for on the unremitted earnings of our overseas subsidiaries as any tax basis differences relating to investments in these overseas subsidiaries are considered to be permanent in duration. The amount of unremitted earnings at December 31, 2015 was approximately $775 million. If these earnings are remitted, additional taxes could result after offsetting foreign income taxes paid although the calculation of the additional taxes is not practicable to compute at this time. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 11. Long-Term Debt Long-term debt consists of the following: (in millions) 2015 2014 Revolving credit facility $ 133.0 $ 139.0 Other long-term debt 0.0 0.4 133.0 139.4 Less current portion 0.0 (0.4 ) $ 133.0 $ 139.0 On November 6, 2015, the Company agreed a new revolving credit facility that retains the $200.0 million previous facility available to the Company and certain subsidiaries of the Company and extends the term of the facility through November 2020. In addition, the new credit agreement allows the Company to request an additional amount of up to $50.0 million to be committed by the existing lenders under the credit agreement or by new lenders. As a result, the Company capitalized $1.5 million of refinancing costs which are being amortized over the expected life of the facility, as shown here: (in millions) 2015 2014 Gross cost at January 1 $ 2.6 $ 2.5 Capitalized in the year 1.5 0.1 Written down in the year (2.6 ) 0.0 $ 1.5 $ 2.6 Accumulated amortization at January 1 $ (1.5 ) $ (0.8 ) Amortization in the year (1.2 ) (0.7 ) Amortization written down in the year 2.6 0.0 $ (0.1 ) $ (1.5 ) Net book value at December 31 $ 1.4 $ 1.1 Amortization expense was $1.2 million, $0.7 million and $0.4 million in 2015, 2014 and 2013, respectively. The charge is included in interest expense. See Note 2 of the Notes to the Consolidated Financial Statements. The obligations of the Company under the revolving facility are secured obligations and guaranteed by certain subsidiaries of the Company. Amounts available under the revolving facility may be borrowed in U.S. dollars, Euros, British pounds and other freely convertible currencies. The Company’s credit facility contains restrictive clauses which may constrain our activities and limit our operational and financial flexibility. The facility obliges the lenders to comply with a request for utilization of finance unless there is an event of default outstanding. Events of default are defined in the credit facility and include a material adverse change to our assets, operations or financial condition. The facility contains a number of restrictions that limit our ability, amongst other things, and subject to certain limited exceptions, to incur additional indebtedness, pledge our assets as security, guarantee obligations of third parties, make investments, undergo a merger or consolidation, dispose of assets, or materially change our line of business. In addition, the credit facility contains terms which, if breached, would result in it becoming repayable on demand. It requires, among other matters, compliance with the following financial covenant ratios measured on a quarterly basis: (1) the ratio of net debt to EBITDA shall not be greater than 3.0:1 and (2) the ratio of EBITDA to net interest shall not be less than 4.0:1. Management has determined that the Company has not breached these covenants throughout the period to December 31, 2015 and does not expect to breach these covenants for the next 12 months. The credit facility is secured by a number of fixed and floating charges over certain assets which include key operating sites of the Company and its subsidiaries. The weighted average rate of interest on borrowings was 1.67% at December 31, 2015 and 1.7% at December 31, 2014. Payments of interest on long-term debt were $2.3 million, $2.3 million and $1.0 million in 2015, 2014 and 2013, respectively. The net cash outflows in respect of refinancing costs were $1.5 million, $0.1 million and $0.9 million in 2015, 2014 and 2013, respectively. |
Plant Closure Provisions
Plant Closure Provisions | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Plant Closure Provisions | Note 12. Plant Closure Provisions The principal site giving rise to environmental remediation liabilities is the manufacturing site at Ellesmere Port in the United Kingdom, which management believes is the last ongoing manufacturer of TEL. There are also environmental remediation liabilities on a much smaller scale in respect of our other manufacturing sites in the U.S. and Europe. The liability for estimated closure costs of Innospec’s manufacturing facilities includes costs for decontamination and environmental remediation activities (remediation) when demand for TEL diminishes. Movements in the provisions are summarized as follows: (in millions) Severance Remediation Total Total at January 1, 2013 $ 1.1 $ 29.3 $ 30.4 Charge for the period 0.0 3.9 3.9 Utilized in the period (0.1 ) (1.9 ) (2.0 ) Exchange effect 0.0 0.1 0.1 Total at December 31, 2013 1.0 31.4 32.4 Due within one year 0.0 (6.2 ) (6.2 ) Due after one year $ 1.0 $ 25.2 $ 26.2 Total at January 1, 2014 $ 1.0 $ 31.4 $ 32.4 Charge for the period 0.0 5.0 5.0 Utilized in the period 0.0 (2.0 ) (2.0 ) Released in the period (1.0 ) 0.0 (1.0 ) Exchange effect 0.0 (0.3 ) (0.3 ) Total at December 31, 2014 0.0 34.1 34.1 Due within one year 0.0 (5.7 ) (5.7 ) Due after one year $ 0.0 $ 28.4 $ 28.4 Total at January 1, 2015 $ 0.0 $ 34.1 $ 34.1 Charge for the period 0.0 6.8 6.8 Utilized in the period 0.0 (2.6 ) (2.6 ) Disposal in the period 0.0 (0.3 ) (0.3 ) Exchange effect 0.0 (0.3 ) (0.3 ) Total at December 31, 2015 0.0 37.7 37.7 Due within one year 0.0 (6.4 ) (6.4 ) Due after one year $ 0.0 $ 31.3 $ 31.3 Amounts due within one year refer to provisions where expenditure is expected to arise within one year of the balance sheet date. Severance charges are recognized in the income statement in selling, general and administrative expenses. Remediation costs are recognized in cost of goods sold. Remediation The remediation provision represents the Company’s liability for environmental liabilities and asset retirement obligations. The charge for the period in 2015 represents the accretion expense recognized of $3.0 million and a further $3.8 million primarily in respect of changes in the expected cost and scope of future remediation activities. A discount rate of 8.92% was used in valuing the remediation provision. We recognize environmental liabilities when they are probable and costs can be reasonably estimated, and asset retirement obligations when there is a legal obligation and costs can be reasonably estimated. The Company has to anticipate the program of work required and the associated future expected costs, and comply with environmental legislation in the countries in which it operates or has operated in. The Company views the costs of vacating our Ellesmere Port site as contingent upon if and when it vacates the site because there is no present intention to do so. Remediation expenditure utilized provisions of $2.6 million, $2.0 million and $1.9 million in 2015, 2014 and 2013, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes a mid-market pricing convention for valuing the majority of its assets and liabilities measured and reported at fair value. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. The Company 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 measurement). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy Levels. In 2015, the Company evaluated the fair value hierarchy levels assigned to its assets and liabilities, and concluded that there should be no transfers into or out of Levels 1, 2 and 3. The following table presents the carrying amount and fair values of the Company’s assets and liabilities measured on a recurring basis: December 31, 2015 December 31, 2014 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets Non-derivatives: Cash and cash equivalents $ 136.9 $ 136.9 $ 41.6 $ 41.6 Short-term investments 4.8 4.8 4.7 4.7 Liabilities Non-derivatives: Long-term debt (including current portion) $ 133.0 $ 133.0 $ 139.4 $ 139.4 Finance leases (including current portion) 3.1 3.1 2.2 2.2 Derivatives (Level 1 measurement): Other non-current liabilities: Foreign currency forward exchange contracts 0.3 0.3 1.8 1.8 Non-financial liabilities (Level 3 measurement): Stock equivalent units 7.8 7.8 7.2 7.2 Acquisition-related contingent consideration 54.6 54.6 95.2 95.2 The following methods and assumptions were used to estimate the fair values of financial instruments: Cash and cash equivalents, and short-term investments: Long-term debt and finance leases: Acquisition-related contingent consideration: Derivatives: Stock equivalent units: |
Derivative Instruments and Risk
Derivative Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Risk Management | Note 14. Derivative Instruments and Risk Management The Company has limited involvement with derivative instruments and does not trade them. The Company does use derivatives to manage certain interest rate, foreign currency exchange rate and raw material cost exposures, as the need arises. As at December 31, 2015 and December 31, 2014 the Company did not hold any interest rate or raw material derivatives. The Company enters into various foreign currency forward exchange contracts to minimize currency exchange rate exposure from expected future cash flows. As at December 31, 2015 the contracts have maturity dates of up to one year from the date of inception. These foreign currency forward exchange contracts have not been designated as hedging instruments, and their impact on the income statement for 2015 was a gain of $1.4 million. The Company sells a range of Fuel Specialties, Performance Chemicals and Octane Additives to major oil refineries and chemical companies throughout the world. Credit limits, ongoing credit evaluation and account monitoring procedures are intended to minimize bad debt risk. Collateral is not generally required. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitments and Contingencies Operating leases The Company has commitments under operating leases primarily for office space, motor vehicles and various items of computer and office equipment. The leases are expected to be renewed and replaced in the normal course of business. Rental expense was $4.5 million in 2015, $3.7 million in 2014 and $3.1 million in 2013. Future commitments under non-cancelable operating leases are as follows: (in millions) 2016 $ 3.8 2017 3.3 2018 2.6 2019 1.4 2020 1.0 Thereafter 4.2 $ 16.3 Environmental remediation obligations Commitments in respect of environmental remediation obligations are disclosed in Note 12 of the Notes to the Consolidated Financial Statements. Contingencies Legal matters While we are involved from time to time in claims and legal proceedings that result from, and are incidental to, the conduct of our business including business and commercial litigation, employee and product liability claims, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party, or of which any of their property is subject. It is possible however, that an adverse resolution of an unexpectedly large number of such individual items could in the aggregate have a material adverse effect on results of operations for a particular year or quarter. Guarantees The Company and certain of the Company’s consolidated subsidiaries are contingently liable for certain obligations of affiliated companies primarily in the form of guarantees of debt and performance under contracts entered into as a normal business practice. This includes guarantees of non-U.S. excise taxes and customs duties. As at December 31, 2015, such guarantees which are not recognized as liabilities in the consolidated financial statements amounted to $4.2 million. Under the terms of the guarantee arrangements, generally the Company would be required to perform should the affiliated company fail to fulfill its obligations under the arrangements. In some cases, the guarantee arrangements have recourse provisions that would enable the Company to recover any payments made under the terms of the guarantees from securities held of the guaranteed parties’ assets. The Company and its affiliates have numerous long-term sales and purchase commitments in their various business activities, which are expected to be fulfilled with no adverse consequences material to the Company. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Note 16. Stockholders’ Equity Common Stock Treasury Stock (number of shares in thousands) 2015 2014 2013 2015 2014 2013 At January 1 29,555 29,555 29,555 5,263 5,208 6,222 Exercise of options 0 0 0 (152 ) (105 ) (632 ) Acquisition-related stock issued 0 0 0 0 0 (471 ) Stock purchases 0 0 0 342 160 89 At December 31 29,555 29,555 29,555 5,453 5,263 5,208 At December 31, 2015, the Company had authorized common stock of 40,000,000 shares (2014 – 40,000,000). Issued shares at December 31, 2015, were 29,554,500 (2014 – 29,554,500) and treasury stock amounted to 5,453,078 shares (2014 – 5,263,481). |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Note 17. Stock-Based Compensation Plans Stock option plans The Company has five active stock option plans, two of which provide for the grant of stock options to employees, one provides for the grant of stock options to non-employee directors, and another provides for the grant of stock options to key executives on a matching basis provided they use a proportion of their annual bonus to purchase common stock in the Company on the open market or from the Company. The fifth plan is a savings plan which provides for the grant of stock options to all Company employees provided they commit to make regular savings over a pre-defined period which can then be used to purchase common stock upon vesting of the options. The stock options have vesting periods ranging from 24 months to 6 years and in all cases stock options granted expire within 10 years of the date of grant. All grants are at the sole discretion of the Compensation Committee of the Board of Directors. Grants may be priced at market value or at a premium or discount. The aggregate number of shares of common stock reserved for issuance which can be granted under the plans is 2,640,000. The fair value of stock options is measured on the grant date using either the Black-Scholes model, or in cases where performance criteria are dependent upon external factors such as the Company’s stock price, using a Monte Carlo model. The following weighted average assumptions were used to determine the grant-date fair value of options: 2015 2014 2013 Dividend yield 1.03 % 1.34 % 0.11 % Expected life 5 years 5 years 5 years Volatility 25.5 % 30.7 % 41.1 % Risk free interest rate 1.05 % 0.97 % 0.46 % The following table summarizes the transactions of the Company’s stock option plans for the year ended December 31, 2015: Number of Weighted Weighted Grant-Date Outstanding at December 31, 2014 728,640 $ 19.55 $ 16.17 Granted – at discount 98,217 $ 0.00 $ 41.55 – at market value 23,550 $ 43.95 $ 9.89 Exercised (152,378 ) $ 6.80 $ 14.43 Forfeited (30,590 ) $ 30.11 $ 12.11 Outstanding at December 31, 2015 667,439 $ 19.87 $ 20.19 At December 31, 2015, there were 89,949 stock options that were exercisable, 18,318 had performance conditions attached. The Company’s policy is to issue shares from treasury stock to holders of stock options who exercise those options, but if sufficient treasury stock is not available, the Company will issue previously unissued shares of stock to holders of stock options who exercise options. The stock option compensation cost for 2015, 2014 and 2013 was $3.7 million, $2.6 million and $2.5 million, respectively. The total intrinsic value of options exercised in 2015, 2014 and 2013 was $2.4 million, $0.9 million and $4.7 million, respectively. The total compensation cost related to non-vested stock options not yet recognized at December 31, 2015 was $4.8 million and this cost is expected to be recognized over the weighted-average period of 2.24 years. The cash tax benefit realized from stock option exercises totaled $1.3 million, $0.9 million and $5.7 million in 2015, 2014 and 2013, respectively. The excess tax benefit classified in financing activities was $0.5 million, $0.4 million and $3.8 million in 2015, 2014 and 2013, respectively. No stock options awards were modified in 2015, 2014 or 2013. Stock equivalent units The Company awards Stock Equivalent Units (“SEUs”) from time to time as a long-term performance incentive. SEUs are cash settled equity instruments conditional on certain performance criteria and linked to the Innospec Inc. share price. SEUs have vesting periods ranging from 11 months to 4 years and in all cases SEUs granted expire within 10 years of the date of grant. Grants may be priced at market value or at a premium or discount. There is no limit to the number of SEUs that can be granted. As at December 31, 2015 the liability for SEUs of $7.8 million is located in accrued liabilities in the consolidated balance sheets until they are cash settled. The fair value of SEUs is measured at the balance sheet date using either the Black-Scholes model, or in cases where performance criteria are dependent upon external factors such as the Company’s stock price, using a Monte Carlo model. The following assumptions were used to determine the fair value of SEUs at the balance sheet dates: 2015 2014 2013 Dividend yield 1.12 % 1.29 % 1.08 % Volatility 24.6 % 26.0 % 37.6 % Risk free interest rate 1.31 % 1.10 % 0.78 % The following table summarizes the transactions of the Company’s SEUs for the year ended December 31, 2015: Number Weighted Weighted Grant-Date Outstanding at December 31, 2014 286,563 $ 3.41 $ 27.10 Granted – at discount 91,280 $ 0.00 $ 40.20 – at market value 7,552 $ 43.95 $ 9.89 Exercised (104,140 ) $ 1.97 $ 24.90 Forfeited (1,505 ) $ 29.56 $ 29.56 Outstanding at December 31, 2015 279,750 $ 3.79 $ 31.72 At December 31, 2015, there were 56,435 SEUs that were exercisable, 46,951 had performance conditions attached. The charges for SEUs are spread over the life of the award subject to a revaluation to fair value each quarter. The revaluation may result in a charge or a credit to the income statement in the quarter dependent upon our share price and other performance criteria. The SEU compensation cost for 2015, 2014 and 2013 was $4.9 million, $2.0 million and $7.1 million, respectively. The total intrinsic value of SEUs exercised in 2015, 2014 and 2013 was $2.4 million, $3.7 million and $2.2 million, respectively. The weighted-average remaining vesting period of non-vested SEUs is 1.50 years. Additional exceptional long-term incentive plan In the first quarter of 2014, Innospec implemented an additional exceptional long-term incentive plan to reward selected executives with a cash bonus for delivering exceptional performance. One of the elements of the plan is payable only if the Innospec share performance matches or out-performs that of competitors, as measured by the Russell 2000 Index, over the performance period January 1, 2014 to December 31, 2016. The maximum cash bonus payable under this element of the plan is $3.0 million and is accounted for as share-based compensation. As such, the fair value of these liability cash-settled long-term incentives is calculated on a quarterly basis. The fair value is calculated using a Monte Carlo model and is summarized as follows: (in millions) 2015 2014 Balance at January 1 $ 0.1 $ 0.0 Compensation charge for the period 0.9 0.1 Balance at December 31 $ 1.0 $ 0.1 The following assumptions were used in the Monte Carlo model at December 31: 2015 2014 Dividend yield 1.12 % 1.29 % Volatility of Innospec’s share price 24.6 % 26.0 % Risk free interest rate 1.31 % 1.10 % |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Reclassifications out of Accumulated Other Comprehensive Loss | Note 18. Reclassifications out of Accumulated Other Comprehensive Loss Reclassifications out of accumulated other comprehensive loss for 2015 were: (in millions) Amount Affected Line Item in the Net Income is Presented Details about AOCL Components Foreign currency translation items: Disposal of subsidiary $ 5.3 Profit on disposal of subsidiary Defined benefit pension plan items: Amortization of prior service credit $ (1.2 ) See (1) below Amortization of actuarial net losses 5.2 See (1) below 4.0 Total before tax (0.8 ) Income tax expense 3.2 Net of tax Total reclassifications $ 8.5 Net of tax (1) These items are included in the computation of net periodic pension cost. See Note 9 of the Notes to the Consolidated Financial Statements for additional information. Changes in accumulated other comprehensive loss for 2015, net of tax, were: (in millions) Defined Cumulative Total Balance at December 31, 2014 $ (57.3 ) $ (49.0 ) $ (106.3 ) Other comprehensive income/(loss) before reclassifications 0.0 (16.3 ) (16.3 ) Actuarial net gains arising during the year 3.2 0.0 3.2 Amounts reclassified from AOCL 3.2 5.3 8.5 Net current period other comprehensive income/(loss) 6.4 (11.0 ) (4.6 ) Balance at December 31, 2015 $ (50.9 ) $ (60.0 ) $ (110.9 ) |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Note 19. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The original effective date for ASU 2015-09 was for annual and interim periods within those years beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for one year and permits early adoption as early as the original effective date of ASU 2014-09. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its consolidated financial statements. The FASB issued Accounting Standards Update (ASU) No. 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” in May 2015. The Company has elected to early adopt ASU 2015-07. This standard eliminates the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value per share (or its equivalent) using the practical expedient in FASB ASC Topic 820, Fair Value Measurement. The FASB issued Accounting Standards Update (ASU) No. 2015-17, “Balance Sheet Classification of Deferred Taxes” in November 2015. As the Company presents a classified balance sheet, under the ASU it will be required to classify all deferred taxes as non-current assets or non-current liabilities. The ASU is effective for annual periods beginning after December 15, 2016 and the Company has not chosen early adoption of ASU 2015-17. The Company has not determined the effect of the standard on its ongoing financial reporting. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 20. Related Party Transactions Mr. Robert I. Paller has been a non-executive director of the Company since November 1, 2009. The Company has retained and continues to retain Smith, Gambrell & Russell, LLP (“SGR”), a law firm with which Mr. Paller holds a position. In 2015, 2014 and 2013 the Company incurred fees payable to SGR of $0.3 million, $1.1 million and $1.0 million, respectively. As at December 31, 2015, the amount due to SGR from the Company was $0.1 million (December 31, 2014 – $0.1 million). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21. Subsequent Events The Company has evaluated subsequent events through the date that the consolidated financial statements were issued, and has concluded that no additional disclosures are required in relation to events subsequent to the balance sheet date. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation: |
Use of estimates | Use of estimates: |
Cash equivalents | Cash equivalents: |
Short-term investments | Short-term investments: |
Trade and other accounts receivable | Trade and other accounts receivable: |
Inventories | Inventories: |
Property, plant and equipment | Property, plant and equipment: Buildings 7 to 25 years Equipment 3 to 10 years |
Goodwill and other intangible assets | Goodwill and other intangible assets: |
Deferred finance costs | Deferred finance costs: |
Impairment of long-lived assets | Impairment of long-lived assets: |
Derivative instruments | Derivative instruments: |
Environmental compliance and remediation | Environmental compliance and remediation: |
Acquisition-related contingent consideration | Acquisition-related contingent consideration: |
Revenue recognition | Revenue recognition: |
Components of net sales | Components of net sales: |
Components of cost of goods sold | Components of cost of goods sold: |
Components of selling, general and administrative expenses | Components of selling, general and administrative expenses: |
Research and development expenses | Research and development expenses: |
Earnings per share | Earnings per share: |
Foreign currencies | Foreign currencies: |
Stock-based compensation plans | Stock-based compensation plans: |
Pension plans and other post-employment benefits | Pension plans and other post-employment benefits: |
Income taxes | Income taxes: |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Major Classes of Depreciable Assets | The estimated useful lives of the major classes of depreciable assets are as follows: Buildings 7 to 25 years Equipment 3 to 10 years |
Segment Reporting and Geograp36
Segment Reporting and Geographical Area Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | The following table analyzes sales and other financial information by the Company’s reportable segments: (in millions) 2015 2014 2013 Net sales: Fuel Specialties $ 758.3 $ 682.2 $ 567.4 Performance Chemicals 194.5 223.5 192.4 Octane Additives 59.5 55.2 59.0 $ 1,012.3 $ 960.9 $ 818.8 Gross profit: Fuel Specialties $ 265.1 $ 219.0 $ 181.1 Performance Chemicals 52.4 54.4 46.3 Octane Additives 28.5 28.6 27.8 $ 346.0 $ 302.0 $ 255.2 Operating income: Fuel Specialties $ 103.9 $ 104.4 $ 92.7 Performance Chemicals 23.5 25.6 23.6 Octane Additives 24.7 22.6 21.5 Pension credit/(charge) 0.2 (3.3 ) (2.3 ) Corporate costs (38.3 ) (38.7 ) (43.6 ) Adjustment to fair value of contingent consideration 40.7 1.9 0.0 Profit on disposal of subsidiary 1.6 0.0 0.0 Impairment of Octane Additives segment goodwill 0.0 0.0 (1.3 ) Total operating income $ 156.3 $ 112.5 $ 90.6 Identifiable assets at year end: Fuel Specialties $ 633.0 $ 676.9 $ 446.4 Performance Chemicals 137.0 181.0 176.8 Octane Additives 28.7 29.2 42.0 Corporate 231.3 112.8 129.5 $ 1,030.0 $ 999.9 $ 794.7 |
Segment Reporting on Basis of Geographical Location | Goodwill has not been allocated by geographical location on the grounds that it would be impracticable to do so. (in millions) 2015 2014 2013 Net sales by source: United States $ 571.9 $ 468.6 $ 276.1 United Kingdom 445.2 486.1 502.4 Rest of Europe 133.3 146.9 129.1 Rest of World 22.1 21.4 0.2 Sales between areas (160.2 ) (162.1 ) (89.0 ) $ 1,012.3 $ 960.9 $ 818.8 Income before income taxes: United States $ 52.7 $ 15.2 $ 10.0 United Kingdom 60.6 57.8 43.7 Rest of Europe 42.0 39.3 40.4 Rest of World (3.0 ) (1.4 ) 0.0 Impairment of Octane Additives segment goodwill 0.0 0.0 (1.3 ) $ 152.3 $ 110.9 $ 92.8 Long-lived assets at year end: United States $ 185.8 $ 197.9 $ 148.2 United Kingdom 49.3 54.1 29.4 Rest of Europe 10.6 10.4 11.5 Rest of World 0.4 0.6 0.0 $ 246.1 $ 263.0 $ 189.1 Identifiable assets at year end: United States $ 412.3 $ 449.3 $ 291.7 United Kingdom 303.4 216.4 261.5 Rest of Europe 30.9 39.0 53.2 Rest of World 16.0 19.1 0.4 Goodwill 267.4 276.1 187.9 $ 1,030.0 $ 999.9 $ 794.7 |
Profit on Disposal of Subsidi37
Profit on Disposal of Subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Disposal Unit | (in millions) Total consideration $ 41.5 Net assets disposed (33.9 ) Other effects (1) (6.0 ) Net gain $ 1.6 (1) Other effects include foreign exchange losses transferred to the income statement |
Schedule of Aggregate Carrying Amount of Major Classes of Assets and Liabilities Related to Disposal | The following table presents the aggregate carrying amount of the major classes of assets and liabilities related to the Aroma Chemicals business disposed on July 6, 2015: (in millions) Assets Trade and other accounts receivable $ 9.5 Inventories 15.2 Other current assets 0.3 Property, plant and equipment 9.0 Goodwill 7.6 Total assets $ 41.6 Liabilities Accounts payable and accrued liabilities $ 5.5 Accrued income taxes 1.6 Plant closure provision 0.3 Other liabilities 0.3 Total liabilities $ 7.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share | Per share amounts are computed as follows: 2015 2014 2013 Numerator (in millions): Net income available to common stockholders $ 119.5 $ 84.1 $ 77.8 Denominator (in thousands): Weighted average common shares outstanding 24,107 24,391 23,651 Dilutive effect of stock options and awards 505 487 505 Denominator for diluted earnings per share 24,612 24,878 24,156 Net income per share, basic: $ 4.96 $ 3.45 $ 3.29 Net income per share, diluted: $ 4.86 $ 3.38 $ 3.22 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following: (in millions) 2015 2014 Land $ 6.2 $ 8.8 Buildings 21.6 20.7 Equipment 128.0 151.8 Work in progress 5.2 5.7 161.0 187.0 Less accumulated depreciation (85.0 ) (106.2 ) $ 76.0 $ 80.8 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The following table analyzes goodwill for 2015 and 2014. (in millions) Fuel Performance Octane Total At January 1, 2014 Gross cost (1) $ 141.1 $ 46.8 $ 236.5 $ 424.4 Accumulated impairment losses 0.0 0.0 (236.5 ) (236.5 ) Net book amount 141.1 46.8 0.0 187.9 Exchange effect (0.3 ) (0.1 ) 0.0 (0.4 ) Acquisitions 88.1 0.0 0.0 88.1 Adjustments to purchase price allocation 0.5 0.0 0.0 0.5 At December 31, 2014 Gross cost (1) 229.4 46.7 236.5 512.6 Accumulated impairment losses 0.0 0.0 (236.5 ) (236.5 ) Net book amount 229.4 46.7 0.0 276.1 Exchange effect (0.2 ) 0.0 0.0 (0.2 ) Disposals 0.0 (7.6 ) 0.0 (7.6 ) Adjustments to purchase price allocation (0.9 ) 0.0 0.0 (0.9 ) At December 31, 2015 Gross cost (1) 228.3 39.1 236.5 503.9 Accumulated impairment losses 0.0 0.0 (236.5 ) (236.5 ) Net book amount $ 228.3 $ 39.1 $ 0.0 $ 267.4 (1) Gross cost is net of $8.7 million, $0.3 million and $289.5 million of historical accumulated amortization in respect of the Fuel Specialties, Performance Chemicals and Octane Additives reporting segments, respectively. |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | Other intangible assets comprise the following: (in millions) 2015 2014 Gross cost: – Product rights $ 34.0 $ 34.0 – Brand names 8.9 8.9 – Technology 55.1 59.9 – Customer relationships 85.1 87.9 – Patents 2.9 2.9 – Non-compete agreements 4.1 4.1 – Marketing related 22.1 22.1 – Internally developed software 36.4 27.8 248.6 247.6 Accumulated amortization: – Product rights (8.8 ) (5.0 ) – Brand names (2.0 ) (0.8 ) – Technology (8.9 ) (10.3 ) – Customer relationships (25.7 ) (21.8 ) – Patents (2.9 ) (2.9 ) – Non-compete agreements (2.5 ) (1.6 ) – Marketing related (20.3 ) (19.3 ) – Internally developed software (8.8 ) (4.8 ) (79.9 ) (66.5 ) $ 168.7 $ 181.1 |
Schedule of Future Amortization Estimated Expense | Future amortization expense is estimated to be as follows for the next five years: (in millions) 2016 $ 24.3 2017 $ 24.1 2018 $ 21.1 2019 $ 17.7 2020 $ 17.4 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
German Plan [Member] | |
Movements in PBO and Fair Value of Plan Assets | Movements in PBO of the German plan are as follows: (in millions) 2015 2014 Change in PBO: Opening balance $ 10.4 $ 9.6 Service cost 0.2 0.2 Interest cost 0.2 0.3 Benefits paid (0.2 ) (0.2 ) Actuarial losses/(gains) (0.3 ) 1.8 Exchange effect (1.1 ) (1.3 ) Closing balance $ 9.2 $ 10.4 |
Unfunded Defined Benefit Pension Plan | (in millions) 2015 2014 2013 Plan net pension charge: Service cost $ 0.2 $ 0.2 $ 0.2 Interest cost on PBO 0.2 0.3 0.3 Amortization of prior service cost/(credit) 0.0 0.0 (0.1 ) Amortization of actuarial net loss 0.3 0.1 0.2 $ 0.7 $ 0.6 $ 0.6 Plan assumptions at December 31, (%): Discount rate 2.40 2.10 3.50 Inflation rate 1.75 1.75 2.00 Rate of increase in compensation levels 2.75 2.75 2.75 |
United Kingdom Plan [Member] | |
Defined Benefit Pension Plan | (in millions) 2015 2014 2013 Plan net pension charge/(credit): Service cost $ 1.5 $ 1.7 $ 1.6 Interest cost on PBO 27.7 34.7 31.3 Expected return on plan assets (33.4 ) (37.2 ) (35.5 ) Amortization of prior service credit (1.2 ) (1.3 ) (1.3 ) Amortization of actuarial net losses 5.2 5.4 6.2 $ (0.2 ) $ 3.3 $ 2.3 Plan assumptions at December 31, (%): Discount rate 3.69 3.55 4.40 Inflation rate 2.15 2.15 2.55 Rate of return on plan assets – overall on bid-value 4.20 4.05 4.85 Rate of return on plan assets – equity securities 6.65 6.50 7.50 Rate of return on plan assets – debt securities 2.85 2.75 3.40 Plan asset allocation by category (%): Equity securities 34 32 35 Debt securities 62 63 61 Cash 4 5 4 100 100 100 |
Movements in PBO and Fair Value of Plan Assets | Movements in PBO and fair value of Plan assets are as follows: (in millions) 2015 2014 Change in PBO: Opening balance $ 817.1 $ 819.8 Interest cost 27.7 34.7 Service cost 1.5 1.7 Benefits paid (42.9 ) (47.6 ) Actuarial losses/(gains) (21.8 ) 59.3 Exchange effect (41.9 ) (50.8 ) Closing balance $ 739.7 $ 817.1 Fair value of plan assets: Opening balance $ 862.3 $ 790.3 Actual benefits paid (42.9 ) (47.6 ) Actual contributions by employer 9.0 11.4 Actual return on assets 11.5 161.7 Exchange effect (44.7 ) (53.5 ) Closing balance $ 795.2 $ 862.3 |
Fair Value of Pension Assets | The fair values of pension assets by level of input were as follows: (in millions) Quoted Prices Significant (Level 2) Significant (Level 3) Total At December 31, 2015 Fixed income securities: Debt securities issued by U.S. government and government agencies $ 0.4 $ $ $ 0.4 Debt securities issued by non-U.S. governments and government agencies 132.1 132.1 Corporate debt securities 189.7 189.7 Other asset-backed securities 0.2 0.2 Equity securities: Equity securities held for proprietary investment purposes 125.0 125.0 Real estate 64.7 64.7 Insurance contracts 171.9 171.9 Investments measured at net asset value (1) 47.6 Other assets 31.6 31.6 Total assets at fair value 512.1 31.6 171.9 763.2 Cash 32.0 32.0 Total plan assets $ 544.1 $ 31.6 $ 171.9 $ 795.2 At December 31, 2014 Fixed income securities: Debt securities issued by U.S. government and government agencies $ 1.1 $ $ $ 1.1 Debt securities issued by non-U.S. governments and government agencies 324.3 324.3 Corporate debt securities 211.4 211.4 Residential mortgage-backed securities 0.2 0.2 Other asset-backed securities 3.1 3.1 Equity securities: Equity securities held for proprietary investment purposes 134.1 134.1 Real estate 65.6 65.6 Investments measured at net asset value (1) 44.1 Other assets 32.7 0.0 32.7 Total assets at fair value 739.8 32.7 0.0 816.6 Cash 45.7 45.7 Total plan assets $ 785.5 $ 32.7 $ 0.0 $ 862.3 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. |
Reconciliation of Fair Value of Plan Assets Measured at Net Asset Value | The reconciliation of the fair value of the Plan assets measured at net asset value was as follows: (in millions) Other Assets Balance at December 31, 2013 $ 38.3 Realized/unrealized gains/(losses): Relating to assets still held at the reporting date 7.3 Relating to assets sold during the period 0.0 Purchases, issuances and settlements 0.7 Exchange effect (2.2 ) Balance at December 31, 2014 44.1 Realized/unrealized gains/(losses): Relating to assets still held at the reporting date 4.7 Relating to assets sold during the period 0.0 Purchases, issuances and settlements 6.5 Exchange effect (7.7 ) Balance at December 31, 2015 $ 47.6 |
Plan Net Pension Credit | The projected net pension credit for the year ending December 31, 2016 is as follows: (in millions) Service cost $ 1.0 Interest cost on PBO 22.4 Expected return on plan assets (32.3 ) Amortization of prior service credit (1.2 ) Amortization of actuarial net losses 2.8 $ (7.3 ) |
Expected Benefit Payments | The following benefit payments are expected to be made: (in millions) 2016 $ 45.2 2017 $ 43.1 2018 $ 43.7 2019 $ 44.3 2020 $ 44.9 2021-2025 $ 233.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Roll-Forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties | A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows: (in millions) Interest and Unrecognized Total Opening balance at January 1, 2013 $ 0.6 $ 12.2 $ 12.8 Additions for tax positions of prior periods 0.6 0.2 0.8 Reductions due to lapsed statutes of limitations (0.1 ) (0.5 ) (0.6 ) Closing balance at December 31, 2013 1.1 11.9 13.0 Current (0.6 ) (6.2 ) (6.8 ) Non-current $ 0.5 $ 5.7 $ 6.2 Opening balance at January 1, 2014 $ 1.1 $ 11.9 $ 13.0 Reductions for tax positions of prior periods (0.4 ) (3.6 ) (4.0 ) Additions for tax positions of prior periods 0.0 0.1 0.1 Additions for current year tax positions 0.0 0.2 0.2 Reductions due to lapsed statutes of limitations (0.2 ) (2.9 ) (3.1 ) Closing balance at December 31, 2014 0.5 5.7 6.2 Current 0.0 0.0 0.0 Non-current $ 0.5 $ 5.7 $ 6.2 Opening balance at January 1, 2015 $ 0.5 $ 5.7 $ 6.2 Reductions for tax positions of prior periods 0.0 0.0 0.0 Additions for tax positions of prior periods 0.1 0.3 0.4 Additions for current year tax positions 0.0 1.2 1.2 Reductions due to lapsed statutes of limitations (0.3 ) (3.6 ) (3.9 ) Closing balance at December 31, 2015 0.3 3.6 3.9 Current 0.0 0.0 0.0 Non-current $ 0.3 $ 3.6 $ 3.9 |
Sources of Income before Income Taxes | The sources of income before income taxes were as follows: (in millions) 2015 2014 2013 Domestic $ 52.7 $ 15.2 $ 10.0 Foreign 99.6 95.7 82.8 $ 152.3 $ 110.9 $ 92.8 |
Components of Income Tax Charges | The components of income tax charges are summarized as follows: (in millions) 2015 2014 2013 Current: Federal $ 5.2 $ 4.5 $ 0.8 State and local 1.3 2.1 0.8 Foreign 14.3 14.9 6.8 20.8 21.5 8.4 Deferred: Federal 12.8 3.3 1.7 State and local 0.5 0.3 0.1 Foreign (1.3 ) 1.7 4.8 12.0 5.3 6.6 $ 32.8 $ 26.8 $ 15.0 |
Factors Effecting Effective Tax Rate from U.S. Federal Statutory Rate | The effective tax rate varies from the U.S. federal statutory rate because of the factors indicated below: 2015 2014 2013 Statutory rate 35.0 % 35.0 % 35.0 % Foreign income inclusions 1.8 5.5 4.2 Foreign tax rate differential (9.6 ) (14.6 ) (14.6 ) Tax charge/(credit) from previous years (0.5 ) 4.7 (2.9 ) Net charge/(credit) from unrecognized tax benefits (1.5 ) (6.2 ) 0.2 Foreign currency translation (1.9 ) 1.0 (2.7 ) Other items and adjustments, net (1.1 ) (1.2 ) (3.9 ) United Kingdom income tax rate reduction (0.7 ) 0.0 0.9 21.5 % 24.2 % 16.2 % |
Details of Deferred Tax Assets and Liabilities | Details of deferred tax assets and liabilities are analyzed as follows: (in millions) 2015 2014 Deferred tax assets: Foreign tax credits $ 0.0 $ 0.8 Accrued expenses 0.3 0.3 Stock options 5.2 5.0 Excess of tax over book basis in property, plant and equipment 0.1 0.4 Net operating loss carry forwards 2.7 0.6 Pension assets 0.6 0.7 Intangible assets 3.3 5.3 Accretion expense 4.8 0.9 Other 5.0 4.5 Subtotal 22.0 18.5 Less valuation allowance 0.0 0.0 Total net deferred tax assets $ 22.0 $ 18.5 Deferred tax liabilities: Excess of book over tax basis in property, plant and equipment $ (4.1 ) $ (2.7 ) Goodwill amortization (11.3 ) (13.0 ) Intangible amortization (23.4 ) (7.2 ) Pension liabilities (10.0 ) (9.0 ) Other (0.7 ) (0.5 ) Total deferred tax liabilities $ (49.5 ) $ (32.4 ) Net deferred tax liability $ (27.5 ) $ (13.9 ) Current portion of deferred tax assets $ 8.8 $ 8.4 Deferred tax assets, net of current portion 1.4 0.7 Current portion of deferred tax liabilities 0.0 0.0 Deferred tax liabilities, net of current portion (37.7 ) (23.0 ) $ (27.5 ) $ (13.9 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: (in millions) 2015 2014 Revolving credit facility $ 133.0 $ 139.0 Other long-term debt 0.0 0.4 133.0 139.4 Less current portion 0.0 (0.4 ) $ 133.0 $ 139.0 |
Summary of Debt Refinancing Costs | As a result, the Company capitalized $1.5 million of refinancing costs which are being amortized over the expected life of the facility, as shown here: (in millions) 2015 2014 Gross cost at January 1 $ 2.6 $ 2.5 Capitalized in the year 1.5 0.1 Written down in the year (2.6 ) 0.0 $ 1.5 $ 2.6 Accumulated amortization at January 1 $ (1.5 ) $ (0.8 ) Amortization in the year (1.2 ) (0.7 ) Amortization written down in the year 2.6 0.0 $ (0.1 ) $ (1.5 ) Net book value at December 31 $ 1.4 $ 1.1 |
Plant Closure Provisions (Table
Plant Closure Provisions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Movements in Plant Closure and Restructuring Provisions | Movements in the provisions are summarized as follows: (in millions) Severance Remediation Total Total at January 1, 2013 $ 1.1 $ 29.3 $ 30.4 Charge for the period 0.0 3.9 3.9 Utilized in the period (0.1 ) (1.9 ) (2.0 ) Exchange effect 0.0 0.1 0.1 Total at December 31, 2013 1.0 31.4 32.4 Due within one year 0.0 (6.2 ) (6.2 ) Due after one year $ 1.0 $ 25.2 $ 26.2 Total at January 1, 2014 $ 1.0 $ 31.4 $ 32.4 Charge for the period 0.0 5.0 5.0 Utilized in the period 0.0 (2.0 ) (2.0 ) Released in the period (1.0 ) 0.0 (1.0 ) Exchange effect 0.0 (0.3 ) (0.3 ) Total at December 31, 2014 0.0 34.1 34.1 Due within one year 0.0 (5.7 ) (5.7 ) Due after one year $ 0.0 $ 28.4 $ 28.4 Total at January 1, 2015 $ 0.0 $ 34.1 $ 34.1 Charge for the period 0.0 6.8 6.8 Utilized in the period 0.0 (2.6 ) (2.6 ) Disposal in the period 0.0 (0.3 ) (0.3 ) Exchange effect 0.0 (0.3 ) (0.3 ) Total at December 31, 2015 0.0 37.7 37.7 Due within one year 0.0 (6.4 ) (6.4 ) Due after one year $ 0.0 $ 31.3 $ 31.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Fair Values of the Company's Assets and Liabilities Measured on a Recurring Basis | The following table presents the carrying amount and fair values of the Company’s assets and liabilities measured on a recurring basis: December 31, 2015 December 31, 2014 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets Non-derivatives: Cash and cash equivalents $ 136.9 $ 136.9 $ 41.6 $ 41.6 Short-term investments 4.8 4.8 4.7 4.7 Liabilities Non-derivatives: Long-term debt (including current portion) $ 133.0 $ 133.0 $ 139.4 $ 139.4 Finance leases (including current portion) 3.1 3.1 2.2 2.2 Derivatives (Level 1 measurement): Other non-current liabilities: Foreign currency forward exchange contracts 0.3 0.3 1.8 1.8 Non-financial liabilities (Level 3 measurement): Stock equivalent units 7.8 7.8 7.2 7.2 Acquisition-related contingent consideration 54.6 54.6 95.2 95.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Commitments under Non-Cancelable Operating Leases | Future commitments under non-cancelable operating leases are as follows: (in millions) 2016 $ 3.8 2017 3.3 2018 2.6 2019 1.4 2020 1.0 Thereafter 4.2 $ 16.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Common Stock Treasury Stock (number of shares in thousands) 2015 2014 2013 2015 2014 2013 At January 1 29,555 29,555 29,555 5,263 5,208 6,222 Exercise of options 0 0 0 (152 ) (105 ) (632 ) Acquisition-related stock issued 0 0 0 0 0 (471 ) Stock purchases 0 0 0 342 160 89 At December 31 29,555 29,555 29,555 5,453 5,263 5,208 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Options Plan [Member] | |
Assumptions Used to Determine Grant-Date Fair Value of Options | The following weighted average assumptions were used to determine the grant-date fair value of options: 2015 2014 2013 Dividend yield 1.03 % 1.34 % 0.11 % Expected life 5 years 5 years 5 years Volatility 25.5 % 30.7 % 41.1 % Risk free interest rate 1.05 % 0.97 % 0.46 % |
Summary of Transactions of Company's Stock Option Plans | The following table summarizes the transactions of the Company’s stock option plans for the year ended December 31, 2015: Number of Weighted Weighted Grant-Date Outstanding at December 31, 2014 728,640 $ 19.55 $ 16.17 Granted – at discount 98,217 $ 0.00 $ 41.55 – at market value 23,550 $ 43.95 $ 9.89 Exercised (152,378 ) $ 6.80 $ 14.43 Forfeited (30,590 ) $ 30.11 $ 12.11 Outstanding at December 31, 2015 667,439 $ 19.87 $ 20.19 |
Stock Equivalent Units [Member] | |
Assumptions Used to Determine Fair Value of SEUs | The following assumptions were used to determine the fair value of SEUs at the balance sheet dates: 2015 2014 2013 Dividend yield 1.12 % 1.29 % 1.08 % Volatility 24.6 % 26.0 % 37.6 % Risk free interest rate 1.31 % 1.10 % 0.78 % |
Summarizes Transactions of SEUs | The following table summarizes the transactions of the Company’s SEUs for the year ended December 31, 2015: Number Weighted Weighted Grant-Date Outstanding at December 31, 2014 286,563 $ 3.41 $ 27.10 Granted – at discount 91,280 $ 0.00 $ 40.20 – at market value 7,552 $ 43.95 $ 9.89 Exercised (104,140 ) $ 1.97 $ 24.90 Forfeited (1,505 ) $ 29.56 $ 29.56 Outstanding at December 31, 2015 279,750 $ 3.79 $ 31.72 |
Additional Exceptional Long-Term Incentive Plan [Member] | |
Fair Value of Liability Cash-Settled Long-Term Incentives | The fair value is calculated using a Monte Carlo model and is summarized as follows: (in millions) 2015 2014 Balance at January 1 $ 0.1 $ 0.0 Compensation charge for the period 0.9 0.1 Balance at December 31 $ 1.0 $ 0.1 |
Assumptions Used in the Monte Carlo Model | The following assumptions were used in the Monte Carlo model at December 31: 2015 2014 Dividend yield 1.12 % 1.29 % Volatility of Innospec’s share price 24.6 % 26.0 % Risk free interest rate 1.31 % 1.10 % |
Reclassifications out of Accu50
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss for 2015 were: (in millions) Amount Affected Line Item in the Net Income is Presented Details about AOCL Components Foreign currency translation items: Disposal of subsidiary $ 5.3 Profit on disposal of subsidiary Defined benefit pension plan items: Amortization of prior service credit $ (1.2 ) See (1) below Amortization of actuarial net losses 5.2 See (1) below 4.0 Total before tax (0.8 ) Income tax expense 3.2 Net of tax Total reclassifications $ 8.5 Net of tax (1) These items are included in the computation of net periodic pension cost. See Note 9 of the Notes to the Consolidated Financial Statements for additional information. |
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for 2015, net of tax, were: (in millions) Defined Cumulative Total Balance at December 31, 2014 $ (57.3 ) $ (49.0 ) $ (106.3 ) Other comprehensive income/(loss) before reclassifications 0.0 (16.3 ) (16.3 ) Actuarial net gains arising during the year 3.2 0.0 3.2 Amounts reclassified from AOCL 3.2 5.3 8.5 Net current period other comprehensive income/(loss) 6.4 (11.0 ) (4.6 ) Balance at December 31, 2015 $ (50.9 ) $ (60.0 ) $ (110.9 ) |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Line Items] | |
Income tax, Uncertain tax position description | The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
Minimum [Member] | |
Accounting Policies [Line Items] | |
Short-term investments maturity period | 3 months |
Maximum [Member] | |
Accounting Policies [Line Items] | |
Cash equivalents maturity period | 3 months |
Short-term investments maturity period | 12 months |
Accounting Policies - Estimated
Accounting Policies - Estimated Useful Lives of Major Classes of Depreciable Assets (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 25 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 10 years |
Segment Reporting and Geograp53
Segment Reporting and Geographical Area Data - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of segments | Segment | 3 | ||
Shell [Member] | |||
Segment Reporting Information [Line Items] | |||
Amount of net group sales | $ | $ 65.8 | $ 81.9 | $ 83.1 |
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Shell [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of net group sales | 6.50% | 8.50% | 10.10% |
Segment Reporting and Geograp54
Segment Reporting and Geographical Area Data - Segment Reporting (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,012,300,000 | $ 960,900,000 | $ 818,800,000 |
Gross profit | 346,000,000 | 302,000,000 | 255,200,000 |
Operating income | 156,300,000 | 112,500,000 | 90,600,000 |
Adjustment to fair value of contingent consideration | 40,700,000 | 1,900,000 | 0 |
Profit on disposal of subsidiary | 1,600,000 | 0 | 0 |
Impairment of Octane Additives segment goodwill | 0 | 0 | (1,300,000) |
Identifiable assets at year end | 1,030,000,000 | 999,900,000 | 794,700,000 |
Fuel Specialties [Member] | |||
Segment Reporting Information [Line Items] | |||
Impairment of Octane Additives segment goodwill | 0 | 0 | 0 |
Performance Chemicals [Member] | |||
Segment Reporting Information [Line Items] | |||
Impairment of Octane Additives segment goodwill | 0 | 0 | 0 |
Operating Segments [Member] | Fuel Specialties [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 758,300,000 | 682,200,000 | 567,400,000 |
Gross profit | 265,100,000 | 219,000,000 | 181,100,000 |
Operating income | 103,900,000 | 104,400,000 | 92,700,000 |
Identifiable assets at year end | 633,000,000 | 676,900,000 | 446,400,000 |
Operating Segments [Member] | Performance Chemicals [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 194,500,000 | 223,500,000 | 192,400,000 |
Gross profit | 52,400,000 | 54,400,000 | 46,300,000 |
Operating income | 23,500,000 | 25,600,000 | 23,600,000 |
Identifiable assets at year end | 137,000,000 | 181,000,000 | 176,800,000 |
Operating Segments [Member] | Octane Additives [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 59,500,000 | 55,200,000 | 59,000,000 |
Gross profit | 28,500,000 | 28,600,000 | 27,800,000 |
Operating income | 24,700,000 | 22,600,000 | 21,500,000 |
Identifiable assets at year end | 28,700,000 | 29,200,000 | 42,000,000 |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Pension credit/(charge) | 200,000 | (3,300,000) | (2,300,000) |
Profit on disposal of subsidiary | 1,600,000 | 0 | 0 |
Impairment of Octane Additives segment goodwill | 0 | 0 | (1,300,000) |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Corporate costs | (38,300,000) | (38,700,000) | (43,600,000) |
Identifiable assets at year end | $ 231,300,000 | $ 112,800,000 | $ 129,500,000 |
Segment Reporting and Geograp55
Segment Reporting and Geographical Area Data - Segment Reporting on Basis of Geographical Location (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,012.3 | $ 960.9 | $ 818.8 |
Income before income taxes | 152.3 | 110.9 | 92.8 |
Long-lived assets at year end | 246.1 | 263 | 189.1 |
Goodwill | 267.4 | 276.1 | 187.9 |
Identifiable assets at year end | 1,030 | 999.9 | 794.7 |
Octane Additives [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before income taxes | 0 | 0 | (1.3) |
Goodwill | 0 | 0 | 0 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 571.9 | 468.6 | 276.1 |
Income before income taxes | 52.7 | 15.2 | 10 |
Long-lived assets at year end | 185.8 | 197.9 | 148.2 |
Identifiable assets at year end | 412.3 | 449.3 | 291.7 |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 445.2 | 486.1 | 502.4 |
Income before income taxes | 60.6 | 57.8 | 43.7 |
Long-lived assets at year end | 49.3 | 54.1 | 29.4 |
Identifiable assets at year end | 303.4 | 216.4 | 261.5 |
Rest of Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 133.3 | 146.9 | 129.1 |
Income before income taxes | 42 | 39.3 | 40.4 |
Long-lived assets at year end | 10.6 | 10.4 | 11.5 |
Identifiable assets at year end | 30.9 | 39 | 53.2 |
Rest of World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 22.1 | 21.4 | 0.2 |
Income before income taxes | (3) | (1.4) | 0 |
Long-lived assets at year end | 0.4 | 0.6 | 0 |
Identifiable assets at year end | 16 | 19.1 | 0.4 |
Sales Between Areas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ (160.2) | $ (162.1) | $ (89) |
Profit on Disposal of Subsidi56
Profit on Disposal of Subsidiary - Additional Information (Detail) - Aroma Chemicals Business Unit [Member] - USD ($) $ in Millions | Jul. 06, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity interest | 100.00% | ||
Cash consideration after transaction cost | $ 41.5 | ||
Pre-tax profit of the disposed business | $ 2.6 | $ 7.3 |
Profit on Disposal of Subsidi57
Profit on Disposal of Subsidiary - Summary of Disposal Unit (Detail) - Aroma Chemicals Business Unit [Member] $ in Millions | Jul. 06, 2015USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total consideration | $ 41.5 |
Net assets disposed | (33.9) |
Other effects | (6) |
Net gain | $ 1.6 |
Profit on Disposal of Subsidi58
Profit on Disposal of Subsidiary - Schedule of Aggregate Carrying Amount of Major Classes of Assets and Liabilities Related to Disposal (Detail) - Aroma Chemicals Business Unit [Member] $ in Millions | Jul. 06, 2015USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Trade and other accounts receivable | $ 9.5 |
Inventories | 15.2 |
Other current assets | 0.3 |
Property, plant and equipment | 9 |
Goodwill | 7.6 |
Total assets | 33.9 |
Accounts payable and accrued liabilities | 5.5 |
Accrued income taxes | 1.6 |
Plant closure provision | 0.3 |
Other liabilities | 0.3 |
Total liabilities | $ 7.7 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator (in millions): | |||
Net income available to common stockholders | $ 119.5 | $ 84.1 | $ 77.8 |
Denominator (in thousands): | |||
Weighted average common shares outstanding | 24,107 | 24,391 | 23,651 |
Dilutive effect of stock options and awards | 505 | 487 | 505 |
Denominator for diluted earnings per share | 24,612 | 24,878 | 24,156 |
Net income per share, basic: | $ 4.96 | $ 3.45 | $ 3.29 |
Net income per share, diluted: | $ 4.86 | $ 3.38 | $ 3.22 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Average number of anti-dilutive options excluded from the calculation of diluted earnings per share | 0 | 36,775 | 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 161 | $ 187 |
Less accumulated depreciation | (85) | (106.2) |
Property, plant and equipment, Net | 76 | 80.8 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 6.2 | 8.8 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 21.6 | 20.7 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 128 | 151.8 |
Work in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 5.2 | $ 5.7 |
Property, Plant and Equipment62
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Amounts of assets held under finance leases | $ 3 | $ 2.2 | |
Depreciation charges | 13 | 10.6 | $ 8.9 |
Estimated additional cost to complete work in progress | $ 2.4 | $ 1.4 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
At January 1, Gross cost | $ 512.6 | $ 424.4 |
At January 1, Accumulated impairment losses | (236.5) | (236.5) |
At January 1, Net book amount | 276.1 | 187.9 |
Exchange effect | (0.2) | (0.4) |
Acquisitions | 88.1 | |
Disposals | (7.6) | |
Adjustments to purchase price allocation | (0.9) | 0.5 |
At December 31, Gross cost | 503.9 | 512.6 |
At December 31, Accumulated impairment losses | (236.5) | (236.5) |
At December 31, Net book amount | 267.4 | 276.1 |
Fuel Specialties [Member] | ||
Goodwill [Line Items] | ||
At January 1, Gross cost | 229.4 | 141.1 |
At January 1, Accumulated impairment losses | 0 | 0 |
At January 1, Net book amount | 229.4 | 141.1 |
Exchange effect | (0.2) | (0.3) |
Acquisitions | 88.1 | |
Disposals | 0 | |
Adjustments to purchase price allocation | (0.9) | 0.5 |
At December 31, Gross cost | 228.3 | 229.4 |
At December 31, Accumulated impairment losses | 0 | 0 |
At December 31, Net book amount | 228.3 | 229.4 |
Performance Chemicals [Member] | ||
Goodwill [Line Items] | ||
At January 1, Gross cost | 46.7 | 46.8 |
At January 1, Accumulated impairment losses | 0 | 0 |
At January 1, Net book amount | 46.7 | 46.8 |
Exchange effect | 0 | (0.1) |
Acquisitions | 0 | |
Disposals | (7.6) | |
Adjustments to purchase price allocation | 0 | 0 |
At December 31, Gross cost | 39.1 | 46.7 |
At December 31, Accumulated impairment losses | 0 | 0 |
At December 31, Net book amount | 39.1 | 46.7 |
Octane Additives [Member] | ||
Goodwill [Line Items] | ||
At January 1, Gross cost | 236.5 | 236.5 |
At January 1, Accumulated impairment losses | (236.5) | (236.5) |
At January 1, Net book amount | 0 | 0 |
Exchange effect | 0 | 0 |
Acquisitions | 0 | |
Disposals | 0 | |
Adjustments to purchase price allocation | 0 | 0 |
At December 31, Gross cost | 236.5 | 236.5 |
At December 31, Accumulated impairment losses | (236.5) | (236.5) |
At December 31, Net book amount | $ 0 | $ 0 |
Goodwill - Summary of Goodwil64
Goodwill - Summary of Goodwill (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fuel Specialties [Member] | |||
Goodwill [Line Items] | |||
Historical accumulated amortization | $ 8.7 | $ 8.7 | $ 8.7 |
Performance Chemicals [Member] | |||
Goodwill [Line Items] | |||
Historical accumulated amortization | 0.3 | 0.3 | 0.3 |
Octane Additives [Member] | |||
Goodwill [Line Items] | |||
Historical accumulated amortization | $ 289.5 | $ 289.5 | $ 289.5 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Goodwill | $ 267,400,000 | $ 276,100,000 | $ 187,900,000 |
Impairment of goodwill | 0 | 0 | 1,300,000 |
Fuel Specialties [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 228,300,000 | 229,400,000 | 141,100,000 |
Impairment of goodwill | 0 | 0 | 0 |
Performance Chemicals [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 39,100,000 | 46,700,000 | 46,800,000 |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Other Intangible Assets - Summa
Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2007 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | $ 248.6 | $ 247.6 | |
Accumulated amortization | (79.9) | (66.5) | |
Other Intangible Assets, Net | 168.7 | 181.1 | |
Product Rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 34 | 34 | |
Accumulated amortization | (8.8) | (5) | |
Brand Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 8.9 | 8.9 | |
Accumulated amortization | (2) | (0.8) | |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 55.1 | 59.9 | |
Accumulated amortization | (8.9) | (10.3) | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 85.1 | 87.9 | |
Accumulated amortization | (25.7) | (21.8) | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 2.9 | 2.9 | |
Accumulated amortization | (2.9) | (2.9) | |
Non-Compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 4.1 | 4.1 | |
Accumulated amortization | (2.5) | (1.6) | |
Marketing Related [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 22.1 | 22.1 | $ 28.4 |
Accumulated amortization | (20.3) | (19.3) | |
Internally Developed Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross cost | 36.4 | 27.8 | |
Accumulated amortization | $ (8.8) | $ (4.8) |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Oct. 27, 2014 | Nov. 04, 2013 | Aug. 30, 2013 | Jun. 30, 2007 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | $ 21,000,000 | $ 17,800,000 | $ 11,100,000 | |||||
Intangible asset | 248,600,000 | 247,600,000 | ||||||
Cost of goods, amortization | 8,200,000 | 7,400,000 | $ 3,800,000 | |||||
Product Rights [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset | 34,000,000 | 34,000,000 | ||||||
Brand Names [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 1,200,000 | 700,000 | ||||||
Intangible asset | 8,900,000 | 8,900,000 | ||||||
Technology [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 3,400,000 | 2,400,000 | ||||||
Intangible asset | 55,100,000 | 59,900,000 | ||||||
Customer Relationships [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 6,700,000 | 5,000,000 | ||||||
Intangible asset | $ 85,100,000 | 87,900,000 | ||||||
Non-Compete Agreements [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Assets being amortized duration | 2 years | |||||||
Intangible assets, recognized | $ 1,500,000 | |||||||
Intangible asset | 4,100,000 | 4,100,000 | ||||||
Non-Compete Agreements [Member] | Selling, General and Administrative Expenses [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 900,000 | 900,000 | ||||||
Marketing Related [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | 1,000,000 | 1,000,000 | ||||||
Intangible asset | $ 22,100,000 | 22,100,000 | $ 28,400,000 | |||||
Contract provisions offset against intangible assets | $ 6,300,000 | |||||||
Internally Developed Software [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Assets being amortized duration | 5 years | |||||||
Residual value | $ 0 | |||||||
Intangible asset | 36,400,000 | 27,800,000 | ||||||
Internally Developed Software [Member] | Selling, General and Administrative Expenses [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense | $ 4,000,000 | 3,800,000 | ||||||
Chemsil [Member] | Product Rights [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | $ 34,000,000 | |||||||
Assets being amortized duration | 9 years | |||||||
Amortization expense | $ 3,800,000 | $ 3,700,000 | ||||||
Date of acquisition | Aug. 30, 2013 | |||||||
Residual value | $ 0 | |||||||
Independence Acquisition [Member] | Brand Names [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | $ 6,000,000 | |||||||
Assets being amortized duration | 10 years | |||||||
Date of acquisition | Oct. 27, 2014 | |||||||
Residual value | $ 0 | |||||||
Independence Acquisition [Member] | Technology [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | 26,000,000 | |||||||
Assets being amortized duration | 15 years | |||||||
Date of acquisition | Oct. 27, 2014 | |||||||
Residual value | $ 0 | |||||||
Independence Acquisition [Member] | Customer Relationships [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | 29,200,000 | |||||||
Assets being amortized duration | 10 years | |||||||
Date of acquisition | Oct. 27, 2014 | |||||||
Residual value | $ 0 | |||||||
Independence Acquisition [Member] | Non-Compete Agreements [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | $ 2,600,000 | |||||||
Assets being amortized duration | 3 years | |||||||
Date of acquisition | Oct. 27, 2014 | |||||||
Residual value | $ 0 | |||||||
Bachman [Member] | Brand Names [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | $ 2,900,000 | |||||||
Assets being amortized duration | 5 years | |||||||
Date of acquisition | Nov. 4, 2013 | |||||||
Residual value | $ 0 | |||||||
Bachman [Member] | Technology [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | 8,500,000 | |||||||
Assets being amortized duration | 15 years | |||||||
Date of acquisition | Nov. 4, 2013 | |||||||
Residual value | $ 0 | |||||||
Bachman [Member] | Customer Relationships [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Allocation of purchase price to other intangible assets | $ 14,500,000 | |||||||
Assets being amortized duration | 14 years 6 months | |||||||
Date of acquisition | Nov. 4, 2013 | |||||||
Residual value | $ 0 | |||||||
Strata [Member] | Technology [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Assets being amortized duration | 16 years 6 months | |||||||
Date of acquisition | Dec. 24, 2012 | |||||||
Residual value | $ 0 | |||||||
Intangible assets, recognized | $ 18,300,000 | |||||||
Strata [Member] | Customer Relationships [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Assets being amortized duration | 11 years 6 months | |||||||
Date of acquisition | Dec. 24, 2012 | |||||||
Residual value | $ 0 | |||||||
Intangible assets, recognized | $ 28,200,000 | |||||||
Finetex [Member] | Customer Lists [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Assets being amortized duration | 13 years | |||||||
Residual value | $ 0 | |||||||
Intangible assets, recognized | $ 4,200,000 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Future Amortization Estimated Expense (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,016 | $ 24.3 |
2,017 | 24.1 |
2,018 | 21.1 |
2,019 | 17.7 |
2,020 | $ 17.4 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement age of service | 65 years | ||
Annual cash contribution | $ 9 | ||
Percentage change in discount rate | 0.25% | ||
Amount change in PBO due to discount rate | $ 24 | ||
Amount change in net pension credit due to discount rate | 0.1 | ||
Amount change in PBO due to change price inflation | $ 17 | ||
Percentage change in price inflation | 0.25% | ||
Maximum percentage of Plan's assets invested in individual company's investment funds | 5.00% | ||
Accumulated benefit obligation for the Plan | $ 739.7 | $ 817.1 | |
Amount of contributions to defined contribution schemes | $ 8.5 | $ 8.2 | |
United Kingdom Government Gilts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of asset allocation, actual | 16.00% | 40.00% | |
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 65.00% | ||
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 35.00% | ||
German Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of unrecognized actuarial net losses | $ 1.9 | ||
Amount of unrecognized actuarial net losses, net of tax | $ 0.6 | ||
United Kingdom Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 100.00% | 100.00% | 100.00% |
United Kingdom Plan [Member] | Index-Tracking Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of asset allocation, actual | 35.00% | 50.00% | |
United Kingdom Plan [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 62.00% | 63.00% | 61.00% |
United Kingdom Plan [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation | 34.00% | 32.00% | 35.00% |
Pension Plans - Defined Benefit
Pension Plans - Defined Benefit Pension Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Securities [Member] | |||
Plan asset allocation by category (%): | |||
Total plan asset allocation by category | 35.00% | ||
Debt Securities [Member] | |||
Plan asset allocation by category (%): | |||
Total plan asset allocation by category | 65.00% | ||
United Kingdom Plan [Member] | |||
Plan net pension charge/(credit): | |||
Service cost | $ 1.5 | $ 1.7 | $ 1.6 |
Interest cost on PBO | 27.7 | 34.7 | 31.3 |
Expected return on plan assets | (33.4) | (37.2) | (35.5) |
Amortization of prior service credit | (1.2) | (1.3) | (1.3) |
Amortization of actuarial net losses | 5.2 | 5.4 | 6.2 |
Net pension charge | $ (0.2) | $ 3.3 | $ 2.3 |
Plan assumptions at December 31, (%): | |||
Discount rate | 3.69% | 3.55% | 4.40% |
Inflation rate | 2.15% | 2.15% | 2.55% |
Rate of return on plan assets | 4.20% | 4.05% | 4.85% |
Plan asset allocation by category (%): | |||
Total plan asset allocation by category | 100.00% | 100.00% | 100.00% |
United Kingdom Plan [Member] | Equity Securities [Member] | |||
Plan assumptions at December 31, (%): | |||
Rate of return on plan assets | 6.65% | 6.50% | 7.50% |
Plan asset allocation by category (%): | |||
Total plan asset allocation by category | 34.00% | 32.00% | 35.00% |
United Kingdom Plan [Member] | Debt Securities [Member] | |||
Plan assumptions at December 31, (%): | |||
Rate of return on plan assets | 2.85% | 2.75% | 3.40% |
Plan asset allocation by category (%): | |||
Total plan asset allocation by category | 62.00% | 63.00% | 61.00% |
United Kingdom Plan [Member] | Cash [Member] | |||
Plan asset allocation by category (%): | |||
Total plan asset allocation by category | 4.00% | 5.00% | 4.00% |
Pension Plans - Movements in PB
Pension Plans - Movements in PBO and Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in PBO: | |||
Actuarial losses/(gains) | $ 3.2 | $ 54.7 | $ (6.7) |
United Kingdom Plan [Member] | |||
Change in PBO: | |||
Interest cost | 27.7 | 34.7 | 31.3 |
Service cost | 1.5 | 1.7 | 1.6 |
Benefits paid | (42.9) | (47.6) | |
Fair value of plan assets: | |||
Opening balance | 862.3 | 790.3 | |
Benefits paid | (42.9) | (47.6) | |
Actual contributions by employer | 9 | 11.4 | |
Actual return on assets | 11.5 | 161.7 | |
Exchange effect | (44.7) | (53.5) | |
Closing balance | 795.2 | 862.3 | 790.3 |
German Plan [Member] | |||
Change in PBO: | |||
Opening balance | 10.4 | 9.6 | |
Interest cost | 0.2 | 0.3 | 0.3 |
Service cost | 0.2 | 0.2 | 0.2 |
Benefits paid | (0.2) | (0.2) | |
Actuarial losses/(gains) | (0.3) | 1.8 | |
Exchange effect | (1.1) | (1.3) | |
Closing balance | 9.2 | 10.4 | 9.6 |
Fair value of plan assets: | |||
Benefits paid | (0.2) | (0.2) | |
Pension Benefit Obligation [Member] | United Kingdom Plan [Member] | |||
Change in PBO: | |||
Opening balance | 817.1 | 819.8 | |
Interest cost | 27.7 | 34.7 | |
Service cost | 1.5 | 1.7 | |
Benefits paid | (42.9) | (47.6) | |
Actuarial losses/(gains) | (21.8) | 59.3 | |
Exchange effect | (41.9) | (50.8) | |
Closing balance | 739.7 | 817.1 | $ 819.8 |
Fair value of plan assets: | |||
Benefits paid | $ (42.9) | $ (47.6) |
Pension Plans - Fair Value of P
Pension Plans - Fair Value of Pension Assets (Detail) - United Kingdom Plan [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair value of pension assets | |||
Total assets at fair value | $ 763.2 | $ 816.6 | |
Cash | 32 | 45.7 | |
Total plan assets | 795.2 | 862.3 | $ 790.3 |
Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 512.1 | 739.8 | |
Cash | 32 | 45.7 | |
Total plan assets | 544.1 | 785.5 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 31.6 | 32.7 | |
Total plan assets | 31.6 | 32.7 | |
Non-financial Assets and Liabilities (Level 3 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 171.9 | 0 | |
Total plan assets | 171.9 | 0 | |
Debt Securities Issued by U.S. Government and Government Agencies [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 0.4 | 1.1 | |
Debt Securities Issued by U.S. Government and Government Agencies [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 0.4 | 1.1 | |
Debt Securities Issued by Non-U.S. Government and Government Agencies [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 132.1 | 324.3 | |
Debt Securities Issued by Non-U.S. Government and Government Agencies [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 132.1 | 324.3 | |
Corporate Debt Securities [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 189.7 | 211.4 | |
Corporate Debt Securities [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 189.7 | 211.4 | |
Residential Mortgage-Backed Securities [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 0.2 | ||
Residential Mortgage-Backed Securities [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 0.2 | ||
Other Asset-Backed Securities [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 0.2 | 3.1 | |
Other Asset-Backed Securities [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 0.2 | 3.1 | |
Equity Securities Held for Proprietary Investment Purposes [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 125 | 134.1 | |
Equity Securities Held for Proprietary Investment Purposes [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 125 | 134.1 | |
Real Estate [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 64.7 | 65.6 | |
Real Estate [Member] | Derivatives (Level 1 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 64.7 | 65.6 | |
Insurance Contracts [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 171.9 | ||
Insurance Contracts [Member] | Non-financial Assets and Liabilities (Level 3 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 171.9 | ||
Investments Measured At Net Asset Value [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 47.6 | 44.1 | |
Other Assets [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | 31.6 | 32.7 | |
Other Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | $ 31.6 | 32.7 | |
Other Assets [Member] | Non-financial Assets and Liabilities (Level 3 Measurement) [Member] | |||
Fair value of pension assets | |||
Total assets at fair value | $ 0 |
Pension Plans - Reconciliation
Pension Plans - Reconciliation of Fair Value of Plan Assets Measured at Net Asset Value (Detail) - United Kingdom Plan [Member] - Non-financial Assets and Liabilities (Level 3 Measurement) [Member] - Other Assets [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 44.1 | $ 38.3 |
Realized/unrealized gains/(losses): | ||
Relating to assets still held at the reporting date | 4.7 | 7.3 |
Relating to assets sold during the period | 0 | 0 |
Purchases, issuances and settlements | 6.5 | 0.7 |
Exchange effect | (7.7) | (2.2) |
Ending balance | $ 47.6 | $ 44.1 |
Pension Plans - Plan Net Pensio
Pension Plans - Plan Net Pension Credit (Detail) - United Kingdom Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.5 | $ 1.7 | $ 1.6 | |
Interest cost on PBO | 27.7 | 34.7 | 31.3 | |
Expected return on plan assets | (33.4) | (37.2) | (35.5) | |
Amortization of prior service credit | (1.2) | (1.3) | (1.3) | |
Amortization of actuarial net losses | 5.2 | 5.4 | 6.2 | |
Net pension credit total | $ (0.2) | $ 3.3 | $ 2.3 | |
Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | |||
Interest cost on PBO | 22.4 | |||
Expected return on plan assets | (32.3) | |||
Amortization of prior service credit | (1.2) | |||
Amortization of actuarial net losses | 2.8 | |||
Net pension credit total | $ (7.3) |
Pension Plans - Expected Benefi
Pension Plans - Expected Benefit Payments (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 45.2 |
2,017 | 43.1 |
2,018 | 43.7 |
2,019 | 44.3 |
2,020 | 44.9 |
2021-2025 | $ 233.1 |
Pension Plans - Unfunded Define
Pension Plans - Unfunded Defined Benefit Pension Plan (Detail) - German Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Plan net pension charge: | |||
Service cost | $ 0.2 | $ 0.2 | $ 0.2 |
Interest cost on PBO | 0.2 | 0.3 | 0.3 |
Amortization of prior service cost/(credit) | 0 | 0 | (0.1) |
Amortization of actuarial net loss | 0.3 | 0.1 | 0.2 |
Net pension charge | $ 0.7 | $ 0.6 | $ 0.6 |
Plan assumptions at December 31, (%): | |||
Discount rate | 2.40% | 2.10% | 3.50% |
Inflation rate | 1.75% | 1.75% | 2.00% |
Rate of increase in compensation levels | 2.75% | 2.75% | 2.75% |
Income Taxes - Roll-Forward of
Income Taxes - Roll-Forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||||||
Opening balance at January 1 | $ 6.2 | $ 13 | $ 12.8 | |||
Reductions for tax positions of prior periods | 0 | (4) | ||||
Additions for tax positions of prior periods | 0.4 | 0.1 | 0.8 | |||
Additions for current year tax positions | 1.2 | 0.2 | ||||
Reductions due to lapsed statutes of limitations | (3.9) | (3.1) | (0.6) | |||
Closing balance at December 31 | 3.9 | 6.2 | 13 | |||
Current | $ 0 | $ 0 | $ (6.8) | |||
Non-current | 3.9 | 6.2 | 6.2 | |||
Unrecognized tax benefits | 6.2 | 13 | 12.8 | 3.9 | 6.2 | 13 |
Interest and Penalties [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Opening balance at January 1 | 0.5 | 1.1 | 0.6 | |||
Reductions for tax positions of prior periods | 0 | (0.4) | ||||
Additions for tax positions of prior periods | 0.1 | 0 | 0.6 | |||
Additions for current year tax positions | 0 | 0 | ||||
Reductions due to lapsed statutes of limitations | (0.3) | (0.2) | (0.1) | |||
Closing balance at December 31 | 0.3 | 0.5 | 1.1 | |||
Current | 0 | 0 | (0.6) | |||
Non-current | 0.3 | 0.5 | 0.5 | |||
Unrecognized tax benefits | 0.5 | 1.1 | 0.6 | 0.3 | 0.5 | 1.1 |
Unrecognized Tax Benefits [Member] | ||||||
Income Tax Contingency [Line Items] | ||||||
Opening balance at January 1 | 5.7 | 11.9 | 12.2 | |||
Reductions for tax positions of prior periods | 0 | (3.6) | ||||
Additions for tax positions of prior periods | 0.3 | 0.1 | 0.2 | |||
Additions for current year tax positions | 1.2 | 0.2 | ||||
Reductions due to lapsed statutes of limitations | (3.6) | (2.9) | (0.5) | |||
Closing balance at December 31 | 3.6 | 5.7 | 11.9 | |||
Current | 0 | 0 | (6.2) | |||
Non-current | 3.6 | 5.7 | 5.7 | |||
Unrecognized tax benefits | $ 5.7 | $ 11.9 | $ 12.2 | $ 3.6 | $ 5.7 | $ 11.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits, interest and penalties | $ 3.9 | ||
Reduction in unrecognized tax benefits | $ 2.3 | ||
Income tax examination, description | The Company and its U.S. subsidiaries remain open to examination by the IRS for years 2012 onwards. The Company’s subsidiaries in foreign tax jurisdictions are open to examination including France (2013 onwards), Germany (2010 onwards), Switzerland (2013 onwards) and the United Kingdom (2013 onwards). | ||
Cash payments for income taxes | $ 22.5 | $ 11.6 | $ 21.1 |
Net operating loss carry forwards deferred tax asset | 2.7 | 0.6 | |
Deferred tax assets valuation allowance | 0 | $ 0 | |
Unremitted earnings | 775 | ||
United States [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards | 0.2 | ||
Federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards | 0.1 | ||
State [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards | 0.1 | ||
Foreign [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carry forwards | $ 2.5 | ||
France [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2,013 | ||
Germany [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2,010 | ||
Switzerland [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2,014 | ||
United Kingdom [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2,014 |
Income Taxes - Sources of Incom
Income Taxes - Sources of Income before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 52.7 | $ 15.2 | $ 10 |
Foreign | 99.6 | 95.7 | 82.8 |
Income before income taxes | $ 152.3 | $ 110.9 | $ 92.8 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Charges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 5.2 | $ 4.5 | $ 0.8 |
State and local | 1.3 | 2.1 | 0.8 |
Foreign | 14.3 | 14.9 | 6.8 |
Total Current Income Tax | 20.8 | 21.5 | 8.4 |
Deferred: | |||
Federal | 12.8 | 3.3 | 1.7 |
State and local | 0.5 | 0.3 | 0.1 |
Foreign | (1.3) | 1.7 | 4.8 |
Total Deferred Income Tax | 12 | 5.3 | 6.6 |
Total | $ 32.8 | $ 26.8 | $ 15 |
Income Taxes - Factors Effectin
Income Taxes - Factors Effecting Effective Tax Rate from U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
Foreign income inclusions | 1.80% | 5.50% | 4.20% |
Foreign tax rate differential | (9.60%) | (14.60%) | (14.60%) |
Tax charge/(credit) from previous years | (0.50%) | 4.70% | (2.90%) |
Net charge/(credit) from unrecognized tax benefits | (1.50%) | (6.20%) | 0.20% |
Foreign currency translation | (1.90%) | 1.00% | (2.70%) |
Other items and adjustments, net | (1.10%) | (1.20%) | (3.90%) |
United Kingdom income tax rate reduction | (0.70%) | 0.00% | 0.90% |
Effective Income Tax Rate | 21.50% | 24.20% | 16.20% |
Income Taxes - Details of Defer
Income Taxes - Details of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Foreign tax credits | $ 0 | $ 0.8 |
Accrued expenses | 0.3 | 0.3 |
Stock options | 5.2 | 5 |
Excess of tax over book basis in property, plant and equipment | 0.1 | 0.4 |
Net operating loss carry forwards | 2.7 | 0.6 |
Pension assets | 0.6 | 0.7 |
Intangible assets | 3.3 | 5.3 |
Accretion expense | 4.8 | 0.9 |
Other | 5 | 4.5 |
Subtotal | 22 | 18.5 |
Less valuation allowance | 0 | 0 |
Total net deferred tax assets | 22 | 18.5 |
Deferred tax liabilities: | ||
Excess of book over tax basis in property, plant and equipment | (4.1) | (2.7) |
Goodwill amortization | (11.3) | (13) |
Intangible amortization | (23.4) | (7.2) |
Pension liabilities | (10) | (9) |
Other | (0.7) | (0.5) |
Total deferred tax liabilities | (49.5) | (32.4) |
Net deferred tax liability | (27.5) | (13.9) |
Current portion of deferred tax assets | 8.8 | 8.4 |
Deferred tax assets, net of current portion | 1.4 | 0.7 |
Current portion of deferred tax liabilities | 0 | 0 |
Deferred tax liabilities, net of current portion | (37.7) | (23) |
Net deferred tax (liability)/asset | $ (27.5) | $ (13.9) |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 133 | $ 139.4 |
Less current portion | 0 | (0.4) |
Long-term debt, net of current portion | 133 | 139 |
Long-term debt | 133 | 139.4 |
Other Long-Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0.4 |
Long-term debt | 0 | 0.4 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 133 | 139 |
Long-term debt | $ 133 | $ 139 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Nov. 06, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Debt Instrument [Line Items] | ||||
Revolving credit facility, drawn down amount | $ 6,000,000 | $ 53,000,000 | $ 145,000,000 | |
Finance cost capitalized | 1,500,000 | 2,600,000 | 2,500,000 | |
Amortization of deferred finance costs | $ 1,200,000 | $ 700,000 | 400,000 | |
Maximum ratio of net debt to EBITDA | 3 | |||
Minimum ratio of EBITDA to net interest | 4 | |||
Weighted average rate of interest on borrowings | 0.0167% | 1.70% | ||
Payments of interest on long-term debt | $ 2,300,000 | $ 2,300,000 | 1,000,000 | |
Net cash outflows in respect of refinancing costs | $ 1,500,000 | $ 100,000 | $ 900,000 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility maximum borrowing capacity | $ 200,000,000 | |||
Expiration date of facility | Nov. 30, 2020 | |||
Finance cost capitalized | $ 1,500,000 | |||
Maximum Additional Amount to be Committed by Lenders [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, drawn down amount | $ 50,000,000 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt Refinancing Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Gross cost,Beginning balance | $ 2.6 | $ 2.5 |
Capitalized in the year | 1.5 | 0.1 |
Written down in the year | (2.6) | 0 |
Gross cost,Ending Balance | 1.5 | 2.6 |
Accumulated amortization,Beginning Balance | (1.5) | (0.8) |
Amortization in the year | (1.2) | (0.7) |
Amortization written down in the year | 2.6 | 0 |
Accumulated amortization,Ending balance | (0.1) | (1.5) |
Deferred finance costs | $ 1.4 | $ 1.1 |
Plant Closure Provisions - Move
Plant Closure Provisions - Movements in Plant Closure and Restructuring Provisions (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | $ 34.1 | $ 32.4 | $ 30.4 | |||
Charge for the period | 6.8 | 5 | 3.9 | |||
Utilized in the period | (2.6) | (2) | (2) | |||
Disposal in the period | (0.3) | |||||
Released in the period | (1) | |||||
Exchange effect | (0.3) | (0.3) | 0.1 | |||
Ending Balance | 37.7 | 34.1 | 32.4 | |||
Due within one year | $ (6.4) | $ (5.7) | $ (6.2) | |||
Due after one year | 31.3 | 28.4 | 26.2 | |||
Ending Balance | 34.1 | 32.4 | 30.4 | 37.7 | 34.1 | 32.4 |
Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | 0 | 1 | 1.1 | |||
Charge for the period | 0 | 0 | 0 | |||
Utilized in the period | 0 | 0 | (0.1) | |||
Disposal in the period | 0 | |||||
Released in the period | (1) | |||||
Exchange effect | 0 | 0 | 0 | |||
Ending Balance | 0 | 0 | 1 | |||
Due within one year | 0 | 0 | 0 | |||
Due after one year | 0 | 0 | 1 | |||
Ending Balance | 0 | 1 | 1.1 | 0 | 0 | 1 |
Remediation [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Beginning Balance | 34.1 | 31.4 | 29.3 | |||
Charge for the period | 6.8 | 5 | 3.9 | |||
Utilized in the period | (2.6) | (2) | (1.9) | |||
Disposal in the period | (0.3) | |||||
Released in the period | 0 | |||||
Exchange effect | (0.3) | (0.3) | 0.1 | |||
Ending Balance | 37.7 | 34.1 | 31.4 | |||
Due within one year | (6.4) | (5.7) | (6.2) | |||
Due after one year | 31.3 | 28.4 | 25.2 | |||
Ending Balance | $ 34.1 | $ 31.4 | $ 29.3 | $ 37.7 | $ 34.1 | $ 31.4 |
Plant Closure Provisions - Addi
Plant Closure Provisions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Expenditure | $ 2.6 | $ 2 | $ 2 |
Remediation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accretion expense recognized | 3 | ||
Remediation charge for changes in the scope and cost of future remediation activities | $ 3.8 | ||
Discount rate of remediation provision | 8.92% | ||
Expenditure | $ 2.6 | $ 2 | $ 1.9 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Fair Values of the Company's Assets and Liabilities Measured on a Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Non-derivatives: | ||
Cash and cash equivalents | $ 136.9 | $ 41.6 |
Short-term investments | 4.8 | 4.7 |
Non-derivatives: | ||
Long-term debt (including current portion) | 133 | 139.4 |
Finance leases (including current portion) | 3.1 | 2.2 |
Carrying Amount [Member] | Derivatives (Level 1 Measurement) [Member] | Foreign Currency Forward Exchange Contracts [Member] | ||
Derivatives (Level 1 measurement): | ||
Foreign currency forward exchange contracts | 0.3 | 1.8 |
Carrying Amount [Member] | Non-financial Assets and Liabilities (Level 3 Measurement) [Member] | ||
Non-financial liabilities (Level 3 measurement): | ||
Stock equivalent units | 7.8 | 7.2 |
Acquisition-related contingent consideration | 54.6 | 95.2 |
Fair Value [Member] | ||
Non-derivatives: | ||
Cash and cash equivalents | 136.9 | 41.6 |
Short-term investments | 4.8 | 4.7 |
Non-derivatives: | ||
Long-term debt (including current portion) | 133 | 139.4 |
Finance leases (including current portion) | 3.1 | 2.2 |
Fair Value [Member] | Derivatives (Level 1 Measurement) [Member] | Foreign Currency Forward Exchange Contracts [Member] | ||
Derivatives (Level 1 measurement): | ||
Foreign currency forward exchange contracts | 0.3 | 1.8 |
Fair Value [Member] | Non-financial Assets and Liabilities (Level 3 Measurement) [Member] | ||
Non-financial liabilities (Level 3 measurement): | ||
Stock equivalent units | 7.8 | 7.2 |
Acquisition-related contingent consideration | $ 54.6 | $ 95.2 |
Derivative Instruments and Ri89
Derivative Instruments and Risk Management - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |
Maturity period of foreign currency forward exchange contracts | 1 year |
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Net Income/(Expense) [Member] | |
Derivative [Line Items] | |
Amount of gain/(loss) recognized in income | $ 1.4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases, rent expense | $ 4.5 | $ 3.7 | $ 3.1 |
Guarantees | $ 4.2 |
Commitments and Contingencies91
Commitments and Contingencies - Future Commitments under Non-Cancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 3.8 |
2,017 | 3.3 |
2,018 | 2.6 |
2,019 | 1.4 |
2,020 | 1 |
Thereafter | 4.2 |
Total Commitments | $ 16.3 |
Stockholders' Equity - Stockhol
Stockholders' Equity - Stockholders' Equity (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Common Stock, Beginning balance | 29,554,500 | 29,554,500 | 29,555,000 |
Treasury Stock, Beginning balance | 5,263,000 | 5,208,000 | 6,222,000 |
Exercise of options, Common Stock | 0 | 0 | 0 |
Exercise of options, Treasury Stock | (152,000) | (105,000) | (632,000) |
Acquisition-related stock issued, Common Stock | 0 | 0 | 0 |
Acquisition-related stock issued, Treasury Stock | 0 | 0 | (471,000) |
Stock purchases, Common Stock | 0 | 0 | 0 |
Stock purchases, Treasury Stock | 342,000 | 160,000 | 89,000 |
Common Stock, Ending balance | 29,554,500 | 29,554,500 | 29,554,500 |
Ending balance, Treasury Stock | 5,453,000 | 5,263,000 | 5,208,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ||||
Common stock, shares authorized | 40,000,000 | 40,000,000 | ||
Number of shares issued | 29,554,500 | 29,554,500 | 29,554,500 | 29,555,000 |
Treasury stock, shares | 5,453,078 | 5,263,481 |
Stock-Based Compensation Plan94
Stock-Based Compensation Plans - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Stock_PlanExecutivesDirectorsshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation | $ 3,700,000 | $ 2,600,000 | $ 2,500,000 |
Accrued liabilities | 84,100,000 | 77,200,000 | |
Maximum cash bonus under long-term incentive plan | $ 3,000,000 | ||
Stock Options Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of active stock option plans | Stock_Plan | 5 | ||
Number of active stock option plans for employees | Stock_Plan | 2 | ||
Number of active stock option plans for non-employee directors | Directors | 1 | ||
Number of active stock option plans for key executives | Executives | 1 | ||
Expiration term for stock granted | 10 years | ||
Aggregate number of shares of common stock reserved for issuance which can be granted | shares | 2,640,000 | ||
Number exercisable and fully vested | shares | 89,949 | ||
Fully vested stock options with performance conditions attached | shares | 18,318 | ||
Stock option compensation | $ 3,700,000 | 2,600,000 | 2,500,000 |
Total intrinsic value exercised | 2,400,000 | 900,000 | 4,700,000 |
Total compensation cost related to non-vested stock options not yet recognized | $ 4,800,000 | ||
Expected compensation cost recognized over the weighted-average period | 2 years 2 months 27 days | ||
Cash tax benefit realized from stock option exercises | $ 1,300,000 | 900,000 | 5,700,000 |
Excess tax benefit | $ 500,000 | 400,000 | 3,800,000 |
Stock Options Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of stock vesting period | 24 months | ||
Stock Options Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of stock vesting period | 6 years | ||
Stock Equivalent Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term for stock granted | 10 years | ||
Fully vested stock options with performance conditions attached | shares | 46,951 | ||
Total intrinsic value exercised | $ 2,400,000 | 3,700,000 | 2,200,000 |
Expected compensation cost recognized over the weighted-average period | 1 year 6 months | ||
Accrued liabilities | $ 7,800,000 | ||
Number of exercisable SEUs | shares | 56,435 | ||
Compensation cost | $ 4,900,000 | $ 2,000,000 | $ 7,100,000 |
Stock Equivalent Units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of stock vesting period | 11 months | ||
Stock Equivalent Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of stock vesting period | 4 years |
Stock-Based Compensation Plan95
Stock-Based Compensation Plans - Assumptions Used to Determine Grant-Date Fair Value of Options (Detail) - Black-Scholes Model [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.03% | 1.34% | 0.11% |
Expected life | 5 years | 5 years | 5 years |
Volatility | 25.50% | 30.70% | 41.10% |
Risk free interest rate | 1.05% | 0.97% | 0.46% |
Stock-Based Compensation Plan96
Stock-Based Compensation Plans - Summary of Transactions of the Company's Stock Option Plans (Detail) - Stock Options Plan [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of Options, Beginning balance | shares | 728,640 |
Exercised, Number of Options | shares | (152,378) |
Forfeited, Number of Options | shares | (30,590) |
Outstanding, Number of Options, Ending balance | shares | 667,439 |
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 19.55 |
Exercised, Weighted Average Exercise Price | 6.80 |
Forfeited, Weighted Average Exercise Price | 30.11 |
Outstanding, Weighted Average Exercise Price, Ending balance | 19.87 |
Outstanding, Weighted Average Grant-Date Fair Value | 16.17 |
Exercised | 14.43 |
Forfeited, Weighted Average Grant-Date Fair Value | 12.11 |
Outstanding, Weighted Average Grant-Date Fair Value | $ 20.19 |
Discount [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Number of Options | shares | 98,217 |
Granted, Weighted Average Exercise Price | $ 0 |
Granted, Weighted Average Grant-Date Fair Value | $ 41.55 |
Market Value [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Number of Options | shares | 23,550 |
Granted, Weighted Average Exercise Price | $ 43.95 |
Granted, Weighted Average Grant-Date Fair Value | $ 9.89 |
Stock-Based Compensation Plan97
Stock-Based Compensation Plans - Assumptions Used to Determine Fair Value of SEUs (Detail) - Stock Equivalent Units [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.12% | 1.29% | 1.08% |
Volatility | 24.60% | 26.00% | 37.60% |
Risk free interest rate | 1.31% | 1.10% | 0.78% |
Stock-Based Compensation Plan98
Stock-Based Compensation Plans - Summarizes Transactions of SEUs (Detail) - Stock Equivalent Units [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of SEUs, Beginning balance | shares | 286,563 |
Granted at discount, Number of SEUs | shares | 91,280 |
Granted at market value, Number of SEUs | shares | 7,552 |
Exercised, Number of SEUs | shares | (104,140) |
Forfeited, Number of Options | shares | (1,505) |
Outstanding, Number of SEUs, Ending balance | shares | 279,750 |
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 3.41 |
Granted at discount, Weighted Average Exercise Price | 0 |
Granted at market value, Weighted Average Exercise Price | 43.95 |
Exercised, Weighted Average Exercise Price | 1.97 |
Forfeited, Weighted Average Exercise Price | 29.56 |
Outstanding, Weighted Average Exercise Price, Ending balance | 3.79 |
Outstanding, Weighted Average Grant-Date Fair Value | 27.10 |
Granted at discount, Weighted Average Grant-Date Fair Value | 40.20 |
Granted at market value, Weighted Average Grant-Date Fair Value | 9.89 |
Exercised, Weighted Average Grant-Date Fair Value | 24.90 |
Forfeited, Weighted Average Grant-Date Fair Value | 29.56 |
Outstanding, Weighted Average Grant-Date Fair Value | $ 31.72 |
Stock-Based Compensation Plan99
Stock-Based Compensation Plans - Fair Value of Liability Cash-Settled Long-Term Incentives (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Balance at January 1 | $ 0.1 | $ 0 |
Compensation charge for the period | 0.9 | 0.1 |
Balance at December 31 | $ 1 | $ 0.1 |
Stock-Based Compensation Pla100
Stock-Based Compensation Plans - Assumptions Used in the Monte Carlo Model (Detail) - Monte Carlo Model [Member] | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 1.12% | 1.29% |
Volatility of Innospec's share price | 24.60% | 26.00% |
Risk free interest rate | 1.31% | 1.10% |
Reclassifications out of Acc101
Reclassifications out of Accumulated Other Comprehensive Loss - Summary of Reclassifications out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before income taxes | $ 152.3 | $ 110.9 | $ 92.8 |
Income tax expense | (32.8) | $ (26.8) | $ (15) |
Reclassification Out of Accumulated Other Comprehensive Income/(Loss) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | 8.5 | ||
Reclassification Out of Accumulated Other Comprehensive Income/(Loss) [Member] | Foreign Currency Translation Items [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Disposal of subsidiary | 5.3 | ||
Reclassification Out of Accumulated Other Comprehensive Income/(Loss) [Member] | Defined Benefit Pension Plan Items [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of prior service credit | (1.2) | ||
Amortization of actuarial net losses | 5.2 | ||
Income before income taxes | 4 | ||
Income tax expense | (0.8) | ||
Total reclassifications | $ 3.2 |
Reclassifications out of Acc102
Reclassifications out of Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Opening balance | $ (106.3) | $ (146.3) | |
Other comprehensive income/(loss) before reclassifications | (16.3) | ||
Actuarial net gains arising during the year | 3.2 | 54.7 | $ (6.7) |
Amounts reclassified from AOCL | 8.5 | ||
Net current period other comprehensive income/(loss) | (4.6) | ||
Closing balance | (110.9) | (106.3) | $ (146.3) |
Defined Benefit Pension Plan Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Opening balance | (57.3) | ||
Other comprehensive income/(loss) before reclassifications | 0 | ||
Actuarial net gains arising during the year | 3.2 | ||
Amounts reclassified from AOCL | 3.2 | ||
Net current period other comprehensive income/(loss) | 6.4 | ||
Closing balance | (50.9) | (57.3) | |
Foreign Currency Translation Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Opening balance | (49) | ||
Other comprehensive income/(loss) before reclassifications | (16.3) | ||
Actuarial net gains arising during the year | 0 | ||
Amounts reclassified from AOCL | 5.3 | ||
Net current period other comprehensive income/(loss) | (11) | ||
Closing balance | $ (60) | $ (49) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Smith, Gambrell & Russell, LLP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Fees payable to Smith, Gambrell & Russell | $ 0.3 | $ 1.1 | $ 1 |
Amount due to Smith, Gambrell & Russell | $ 0 | $ 0.1 |