Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 1-16091 |
Entity Registrant Name | AVIENT CORPORATION |
Entity Incorporation, State or Country Code | OH |
Entity Tax Identification Number | 34-1730488 |
Entity Address, Address Line One | Avient Center |
Entity Address, Address Line Two | 33587 Walker Road |
Entity Address, Postal Zip Code | 44012 |
Entity Address, City or Town | Avon Lake |
Entity Address, State or Province | OH |
City Area Code | 440 |
Local Phone Number | 930-1000 |
Title of 12(b) Security | Common Shares, par value $.01 per share |
Trading Symbol | AVNT |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 91,297,358 |
Entity Central Index Key | 0001122976 |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 1,235.2 | $ 609.1 | $ 2,397.5 | $ 1,320.6 |
Cost of sales | 946.5 | 459.4 | 1,806.4 | 999.4 |
Gross margin | 288.7 | 149.7 | 591.1 | 321.2 |
Selling and administrative expense | 180.6 | 111.7 | 362.6 | 230.4 |
Operating income | 108.1 | 38 | 228.5 | 90.8 |
Interest expense, net | (19.5) | (16.2) | (38.8) | (25.6) |
Other income, net | 1.2 | 9.5 | 2.7 | 11.1 |
Income from continuing operations before income taxes | 89.8 | 31.3 | 192.4 | 76.3 |
Income tax expense | (20.4) | (7.9) | (43.3) | (19.8) |
Net income from continuing operations | 69.4 | 23.4 | 149.1 | 56.5 |
Loss from discontinued operations, net of income taxes | 0 | (0.2) | 0 | (0.5) |
Net income | 69.4 | 23.2 | 149.1 | 56 |
Net income attributable to noncontrolling interests | (0.6) | (0.4) | (1) | (0.4) |
Net income attributable to Avient common shareholders | $ 68.8 | $ 22.8 | $ 148.1 | $ 55.6 |
Earnings per share attributable to Avient common shareholders - Basic: | ||||
Continuing operations (in USD per share) | $ 0.75 | $ 0.25 | $ 1.62 | $ 0.63 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | 0.75 | 0.25 | 1.62 | 0.63 |
Earnings (loss) per share attributable to Avient common shareholders - Diluted: | ||||
Continuing operations (in USD per share) | 0.74 | 0.25 | 1.60 | 0.63 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | (0.01) |
Total (in USD per share) | $ 0.74 | $ 0.25 | $ 1.60 | $ 0.62 |
Weighted-average shares used to compute earnings per common share: | ||||
Basic (in shares) | 91.3 | 91.4 | 91.3 | 88.8 |
Plus dilutive impact of share-based compensation (in shares) | 1.1 | 0.4 | 1 | 0.6 |
Diluted (in shares) | 92.4 | 91.8 | 92.3 | 89.4 |
Anti-dilutive shares not included in diluted common shares outstanding (in shares) | 0 | 1.2 | 0 | 0.8 |
Cash dividends declared per share of common stock (in USD per share) | $ 0.2125 | $ 0.2025 | $ 0.4250 | $ 0.4050 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 69.4 | $ 23.2 | $ 149.1 | $ 56 |
Other comprehensive income (loss), net of tax: | ||||
Translation adjustments and related hedging instruments | 9.5 | 4.6 | (41.5) | (2.7) |
Cash flow hedges | 0.7 | 0.2 | 1.5 | (3.2) |
Total other comprehensive income (loss) | 10.2 | 4.8 | (40) | (5.9) |
Total comprehensive income | 79.6 | 28 | 109.1 | 50.1 |
Comprehensive income attributable to noncontrolling interests | (0.6) | (0.4) | (1) | (0.4) |
Comprehensive income attributable to Avient common shareholders | $ 79 | $ 27.6 | $ 108.1 | $ 49.7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 616.2 | $ 649.5 |
Accounts receivable, net | 705.2 | 516.6 |
Inventories, net | 412.5 | 327.5 |
Other current assets | 124.2 | 108.5 |
Total current assets | 1,858.1 | 1,602.1 |
Property, net | 680.1 | 694.9 |
Goodwill | 1,281.7 | 1,308.1 |
Intangible assets, net | 944.9 | 1,008.5 |
Operating lease assets, net | 87.3 | 80.9 |
Other non-current assets | 195.3 | 176 |
Total assets | 5,047.4 | 4,870.5 |
Current liabilities: | ||
Short-term and current portion of long-term debt | 18.8 | 18.6 |
Accounts payable | 574.6 | 471.7 |
Current operating lease obligations | 24.9 | 25.1 |
Accrued expenses and other current liabilities | 316 | 285.6 |
Total current liabilities | 934.3 | 801 |
Non-current liabilities: | ||
Long-term debt | 1,852.2 | 1,854 |
Pension and other post-retirement benefits | 112.6 | 115 |
Non-current operating lease obligations | 62.8 | 56 |
Other non-current liabilities | 299.1 | 332.8 |
Total non-current liabilities | 2,326.7 | 2,357.8 |
SHAREHOLDERS' EQUITY | ||
Avient shareholders’ equity | 1,768.2 | 1,697.1 |
Noncontrolling interest | 18.2 | 14.6 |
Total equity | 1,786.4 | 1,711.7 |
Total liabilities and equity | $ 5,047.4 | $ 4,870.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net income | $ 149.1 | $ 56 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 69.5 | 40.8 |
Accelerated depreciation and amortization | 1.4 | 0 |
Share-based compensation expense | 5.6 | 5.7 |
Changes in assets and liabilities, net of the effect of acquisitions: | ||
(Increase) decrease in accounts receivable | (196.1) | 16.8 |
(Increase) decrease in inventories | (88.1) | 17.4 |
Increase (decrease) in accounts payable | 108.4 | (23.5) |
Decrease in pension and other post-retirement benefits | (9.2) | (12.7) |
Increase (decrease) in accrued expenses and other assets and liabilities, net | 27.5 | (3.5) |
Payment of post-acquisition date earnout liability | 0 | (21) |
Net cash provided by operating activities | 68.1 | 76 |
Investing activities | ||
Capital expenditures | (42.1) | (21.3) |
Net proceeds from divestiture | 0 | 7.1 |
Net cash proceeds provided by other assets | (2) | 5.2 |
Net cash used by investing activities | (44.1) | (9) |
Financing activities | ||
Debt offering proceeds | 0 | 650 |
Purchase of common shares for treasury | (4.2) | (13.6) |
Cash dividends paid | (38.8) | (34.3) |
Repayment of long-term debt | (4.4) | (4.2) |
Payments of withholding tax on share awards | (4.2) | (1.6) |
Debt financing costs | 0 | (9.7) |
Equity offering proceeds, net of underwriting discount and issuance costs | 0 | 496.1 |
Payment of acquisition date earnout liability | 0 | (32.9) |
Net cash (used) provided by financing activities | (51.6) | 1,049.8 |
Effect of exchange rate changes on cash | (5.7) | (4.5) |
(Decrease) increase in cash and cash equivalents | (33.3) | 1,112.3 |
Cash and cash equivalents at beginning of year | 649.5 | 864.7 |
Cash and cash equivalents at end of period | $ 616.2 | $ 1,977 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Total Avient shareholders' equity | Common Shares | Common Shares Held in Treasury | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests | |||
Beginning balance (in shares) at Dec. 31, 2019 | 122.2 | ||||||||||
Beginning balance, Treasury shares (in shares) at Dec. 31, 2019 | (45.3) | ||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,052.7 | $ 1,051.9 | $ 1.2 | $ (1,043.1) | $ 1,175.2 | $ 1,001.2 | $ (82.6) | $ 0.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 32.8 | 32.8 | 32.8 | 0 | |||||||
Other comprehensive loss | (10.7) | (10.7) | (10.7) | ||||||||
Noncontrolling interest activity | (0.8) | (0.8) | |||||||||
Cash dividends declared | [1] | (18.7) | (18.7) | (18.7) | |||||||
Repurchase of common shares (in shares) | (1) | ||||||||||
Repurchase of common shares | (13.6) | (13.6) | $ (13.6) | ||||||||
Common shares equity offering (in shares) | 15.3 | ||||||||||
Common shares equity offering | 495.9 | 495.9 | $ 161.3 | 334.6 | |||||||
Share-based compensation and exercise of awards (in shares) | 0.2 | ||||||||||
Share-based compensation and exercise of awards | 1.1 | 1.1 | $ 1.6 | (0.5) | |||||||
Other | (0.3) | (0.3) | (0.3) | ||||||||
Ending balance (in shares) at Mar. 31, 2020 | 122.2 | ||||||||||
Ending balance, Treasury shares (in shares) at Mar. 31, 2020 | (30.8) | ||||||||||
Ending balance at Mar. 31, 2020 | 1,538.4 | 1,538.4 | $ 1.2 | $ (893.8) | 1,509.3 | 1,015 | (93.3) | 0 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 122.2 | ||||||||||
Beginning balance, Treasury shares (in shares) at Dec. 31, 2019 | (45.3) | ||||||||||
Beginning balance at Dec. 31, 2019 | 1,052.7 | 1,051.9 | $ 1.2 | $ (1,043.1) | 1,175.2 | 1,001.2 | (82.6) | 0.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 56 | ||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 122.2 | ||||||||||
Ending balance, Treasury shares (in shares) at Jun. 30, 2020 | (30.8) | ||||||||||
Ending balance at Jun. 30, 2020 | 1,551.5 | 1,551.1 | $ 1.2 | $ (893.4) | 1,512.5 | 1,019.3 | (88.5) | 0.4 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 122.2 | ||||||||||
Beginning balance, Treasury shares (in shares) at Mar. 31, 2020 | (30.8) | ||||||||||
Beginning balance at Mar. 31, 2020 | 1,538.4 | 1,538.4 | $ 1.2 | $ (893.8) | 1,509.3 | 1,015 | (93.3) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 23.2 | 22.8 | 22.8 | 0.4 | |||||||
Other comprehensive loss | 4.8 | 4.8 | 4.8 | ||||||||
Cash dividends declared | (18.5) | (18.5) | (18.5) | ||||||||
Share-based compensation and exercise of awards (in shares) | 0 | ||||||||||
Share-based compensation and exercise of awards | 3.6 | 3.6 | $ 0.4 | 3.2 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 122.2 | ||||||||||
Ending balance, Treasury shares (in shares) at Jun. 30, 2020 | (30.8) | ||||||||||
Ending balance at Jun. 30, 2020 | 1,551.5 | 1,551.1 | $ 1.2 | $ (893.4) | 1,512.5 | 1,019.3 | (88.5) | 0.4 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 122.2 | ||||||||||
Beginning balance, Treasury shares (in shares) at Dec. 31, 2020 | (30.8) | ||||||||||
Beginning balance at Dec. 31, 2020 | 1,711.7 | 1,697.1 | $ 1.2 | $ (901.2) | 1,513.3 | 1,057.4 | 26.4 | 14.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 79.7 | 79.3 | 79.3 | 0.4 | |||||||
Other comprehensive loss | (50.2) | (50.2) | (50.2) | ||||||||
Cash dividends declared | (19.5) | [2] | (19.5) | [2] | (19.5) | ||||||
Repurchase of common shares (in shares) | (0.1) | ||||||||||
Repurchase of common shares | (4.2) | (4.2) | $ (4.2) | ||||||||
Share-based compensation and exercise of awards (in shares) | 0.1 | ||||||||||
Share-based compensation and exercise of awards | 4.5 | 4.5 | $ 1.6 | 2.9 | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 122.2 | ||||||||||
Ending balance, Treasury shares (in shares) at Mar. 31, 2021 | (30.8) | ||||||||||
Ending balance at Mar. 31, 2021 | 1,722 | 1,707 | $ 1.2 | $ (903.8) | 1,516.2 | 1,117.2 | (23.8) | 15 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 122.2 | ||||||||||
Beginning balance, Treasury shares (in shares) at Dec. 31, 2020 | (30.8) | ||||||||||
Beginning balance at Dec. 31, 2020 | 1,711.7 | 1,697.1 | $ 1.2 | $ (901.2) | 1,513.3 | 1,057.4 | 26.4 | 14.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 149.1 | ||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 122.2 | ||||||||||
Ending balance, Treasury shares (in shares) at Jun. 30, 2021 | (30.8) | ||||||||||
Ending balance at Jun. 30, 2021 | 1,786.4 | 1,768.2 | $ 1.2 | $ (903.2) | 1,517.2 | 1,166.6 | (13.6) | 18.2 | |||
Beginning balance (in shares) at Mar. 31, 2021 | 122.2 | ||||||||||
Beginning balance, Treasury shares (in shares) at Mar. 31, 2021 | (30.8) | ||||||||||
Beginning balance at Mar. 31, 2021 | 1,722 | 1,707 | $ 1.2 | $ (903.8) | 1,516.2 | 1,117.2 | (23.8) | 15 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 69.4 | 68.8 | 68.8 | 0.6 | |||||||
Other comprehensive loss | 10.2 | 10.2 | 10.2 | ||||||||
Acquisitions/other | 2.6 | ||||||||||
Cash dividends declared | [2] | (19.4) | (19.4) | (19.4) | |||||||
Share-based compensation and exercise of awards (in shares) | 0 | ||||||||||
Share-based compensation and exercise of awards | 1.6 | 1.6 | $ 0.6 | 1 | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 122.2 | ||||||||||
Ending balance, Treasury shares (in shares) at Jun. 30, 2021 | (30.8) | ||||||||||
Ending balance at Jun. 30, 2021 | $ 1,786.4 | $ 1,768.2 | $ 1.2 | $ (903.2) | $ 1,517.2 | $ 1,166.6 | $ (13.6) | $ 18.2 | |||
[1] | (2) Dividends declared per share were $0.2025 and $0.4050 for the three and six months ended June 30, 2020. | ||||||||||
[2] | (1) Dividends declared per share were $0.2125 and $0.4250 for the three and six months ended June 30, 2021. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share of common stock (in USD per share) | $ 0.2125 | $ 0.2025 | $ 0.4250 | $ 0.4050 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | Note 1 — BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, including those that are normal, recurring and necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2020 of Avient Corporation, formerly known as PolyOne Corporation. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2021. Accounting Standards Adopted On January 1, 2021, the Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes (ASU 2019-12) , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Financial Accounting Standards Board Accounting Standards Codification (ASC) 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any material impact. Accounting Standards Not Yet Adopted ASU 2020-04, Reference Rate Reform (ASU 2020-04), provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as LIBOR. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 are effective through December 31, 2022. The Company is currently evaluating the impact of adopting this standard on our consolidated financial statements and disclosures. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | Note 2 — BUSINESS COMBINATIONS On July 1, 2020, the Company completed its acquisition of the equity interests in the global masterbatch business of Clariant AG, a corporation organized and existing under the law of Switzerland (Clariant), and the masterbatch assets in India of Clariant Chemicals (India) Limited, a public limited company incorporated in India and an indirect majority owned subsidiary of Clariant (Clariant India). The business and assets are collectively referred to as Clariant MB and the acquisitions are collectively referred to as the Clariant MB Acquisition. Total consideration paid by the Company to complete the Clariant MB Acquisition was $1.4 billion net of cash and debt acquired. To finance the purchase of Clariant MB, the Company used $496.1 million in net proceeds from the issuance of common shares in an underwritten public offering completed in February 2020 and $640.5 million in net proceeds from a senior unsecured notes offering completed in May 2020, and funded the balance using the net proceeds of the October 2019 sale of our Performance Products and Solutions business segment (PP&S). The Clariant MB Acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805. As of June 30, 2021, the purchase accounting for the Clariant MB Acquisition was finalized. The summarized purchase price allocation is as follows: Preliminary Allocation Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 145.1 $ — $ 145.1 Accounts receivable 170.8 — 170.8 Inventories 99.0 0.2 99.2 Other current assets 56.9 6.3 63.2 Property 267.6 (7.5) 260.1 Goodwill 569.0 (7.8) 561.2 Intangible assets: Customer relationships 221.9 (20.7) 201.2 Trade names and trademarks 32.0 2.8 34.8 Patents, technology and other 273.9 7.4 281.3 Operating lease assets 30.1 — 30.1 Other long-term assets 1.3 5.8 7.1 Short term debt (0.4) — (0.4) Accounts payable (92.7) 1.2 (91.5) Current operating lease obligations (2.8) — (2.8) Accrued expenses and other current liabilities (81.2) (4.5) (85.7) Long-term debt (6.7) — (6.7) Non-current operating lease obligations (25.8) — (25.8) Deferred tax liabilities (60.7) 25.9 (34.8) Pension and other post retirement benefits (53.8) — (53.8) Other long-term liabilities (5.4) (6.7) (12.1) Non-controlling interests (12.8) (2.4) (15.2) Total purchase price consideration $ 1,525.3 $ — $ 1,525.3 The intangible assets that have been acquired are being amortized over a period of 18 to 20 years. Goodwill of $561.2 million was recorded and allocated to the Color, Additives and Inks segment. The goodwill recognized is primarily attributable to the expected synergies to be achieved from the business combination. A portion of goodwill is deductible for tax purposes. Had the Clariant MB Acquisition occurred on January 1, 2019, which was the beginning of the fiscal year prior to the acquisition, sales and income from continuing operations before income taxes on a pro forma basis would have been as follows: (Unaudited) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Sales $ 870.2 $ 1,861.1 Income from continuing operations before income taxes 55.1 113.9 The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the acquisition occurred on January 1, 2019. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. In preparation of the pro forma financial information, we eliminated certain historical allocations made by Clariant as they do not represent the stand alone operations of Clariant MB and replaced them with costs more likely to occur as a part of Avient. This elimination removed expense of $3.3 million and $6.6 million during the three and six months ended June 30, 2020, respectively. Costs incurred in connection with the Clariant MB Acquisition were $7.9 million and $11.4 million for the three and six months ended June 30, 2020, respectively. These fees were charged to Selling and Administrative expense on the Condensed Consolidated Statements of Income. Other Acquisitions |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | Note 3 — GOODWILL AND INTANGIBLE ASSETS Goodwill as of June 30, 2021 and December 31, 2020 and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks Distribution Total Balance at December 31, 2020 $ 237.8 $ 1,068.7 $ 1.6 $ 1,308.1 Acquisition of businesses — (7.8) — (7.8) Currency translation (0.5) (18.1) — (18.6) Balance at June 30, 2021 $ 237.3 $ 1,042.8 $ 1.6 $ 1,281.7 Indefinite and finite-lived intangible assets consisted of the following: As of June 30, 2021 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 489.0 $ (123.3) $ 12.1 $ 377.8 Patents, technology and other 560.1 (117.7) 14.2 456.6 Indefinite-lived trade names 110.5 — — 110.5 Total $ 1,159.6 $ (241.0) $ 26.3 $ 944.9 As of December 31, 2020 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 508.7 $ (109.8) $ 23.8 $ 422.7 Patents, technology and other 549.9 (102.4) 28.8 476.3 Indefinite-lived trade names 109.5 — — 109.5 Total $ 1,168.1 $ (212.2) $ 52.6 $ 1,008.5 |
Leasing Arrangements
Leasing Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASING ARRANGEMENTS | Note 4 — LEASING ARRANGEMENTS We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment. The majority of our leases are operating leases. Finance leases are immaterial to our condensed consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease assets, net, Current operating lease obligations, and Non-current operating lease obligations, respectively, on the Condensed Consolidated Balance Sheets. Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost from continued operations recognized within our Condensed Consolidated Statements of Income were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2021 2020 2021 2020 Cost of sales $ 5.5 $ 2.4 $ 9.3 $ 4.2 Selling and administrative expense 3.4 4.3 7.8 9.1 Total operating lease cost $ 8.9 $ 6.7 $ 17.1 $ 13.3 We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of June 30, 2021 and 2020 was 4.9 years and 3.9 years, respectively. The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rates used to measure our operating lease liabilities as of June 30, 2021 and 2020 were 3.7% and 4.3%, respectively. Maturity Analysis of Operating Lease Liabilities: As of June 30, 2021 (In millions) 2021 $ 15.4 2022 26.1 2023 19.7 2024 12.6 2025 7.9 Thereafter 15.6 Total lease payments 97.3 Less amount of lease payment representing interest (9.6) Total present value of lease payments $ 87.7 |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | Note 5 — INVENTORIES, NET Components of Inventories, net are as follows: (In millions) As of June 30, 2021 As of December 31, 2020 Finished products $ 205.4 $ 171.7 Work in process 21.6 16.6 Raw materials and supplies 185.5 139.2 Inventories, net $ 412.5 $ 327.5 |
Property, Net
Property, Net | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, NET | Note 6 — PROPERTY, NET Components of Property, net are as follows: (In millions) As of June 30, 2021 As of December 31, 2020 Land and land improvements $ 93.0 $ 95.7 Buildings 334.4 333.5 Machinery and equipment 972.1 948.2 Property, gross 1,399.5 1,377.4 Less accumulated depreciation (719.4) (682.5) Property, net $ 680.1 $ 694.9 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 7 — INCOME TAXES During the three and six months ended June 30, 2021, the Company’s effective tax rate of 22.6% and 22.5%, respectively, was above the U.S. federal statutory rate of 21.0% primarily due to state taxes, foreign withholding tax liability accrued associated with the future repatriation of certain current year foreign earnings and U.S. global intangible low-taxed income (GILTI) tax. These unfavorable items were partially offset by changes in net foreign deferred tax assets from a foreign statutory tax rate change, favorable prior year foreign return-to-provision adjustments and U.S. research and development tax credit. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | Note 8 — FINANCING ARRANGEMENTS Debt consists of the following instruments: As of June 30, 2021 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ — $ — $ — — % Senior secured term loan due 2026 614.7 7.1 607.6 1.87 % 5.25% senior notes due 2023 600.0 1.9 598.1 5.25 % 5.75% senior notes due 2025 650.0 7.8 642.2 5.75 % Other Debt 23.1 — 23.1 Total Debt 1,887.8 16.8 1,871.0 Less short-term and current portion of long-term debt 18.8 — 18.8 Total long-term debt, net of current portion $ 1,869.0 $ 16.8 $ 1,852.2 As of December 31, 2020 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ — $ — $ — — % Senior secured term loan due 2026 618.0 8.0 610.0 2.36 % 5.25% senior notes due 2023 600.0 2.5 597.5 5.25 % 5.75% senior notes due 2025 650.0 8.8 641.2 5.75 % Other Debt 23.9 — 23.9 Total Debt 1,891.9 19.3 1,872.6 Less short-term and current portion of long-term debt 18.6 — 18.6 Total long-term debt, net of current portion $ 1,873.3 $ 19.3 $ 1,854.0 On May 13, 2020, the Company entered into an indenture (the Indenture) with U.S. Bank National Association, as trustee (the Trustee), relating to the issuance by the Company of $650 million aggregate principal amount of 5.75% Senior Notes due 2025 (the Notes). The Notes were sold on May 13, 2020 in a private transaction exempt from the registration requirements of the Securities Act of 1933 (the Securities Act), have not been and will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Company received net proceeds of $640.5 million from the Notes offering, net of debt issuance costs, which were recorded on the balance sheet and are being amortized into Interest expense, net on the Condensed Consolidated Statements of Income over the term of the debt. The Notes bear interest at a rate of 5.75% per annum, which is payable semi-annually in arrears on May 15 and November 15 of each year. The Notes will mature on May 15, 2025. The Notes are senior unsecured obligations of the Company. The agreements governing our senior secured revolving credit facility, our senior secured term loan, and the indentures and credit agreements governing other debt, contain a number of customary financial and restrictive covenants that, among other things, limit our ability to: consummate asset sales, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of June 30, 2021, we were in compliance with all covenants. The estimated fair value of Avient’s debt instruments at June 30, 2021 and December 31, 2020 was $1,942.9 million and $1,955.9 million, respectively. The fair value of Avient’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Note 9 — SEGMENT INFORMATION Avient has three reportable segments: (1) Color, Additives and Inks; (2) Specialty Engineered Materials; and (3) Distribution. Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for purposes of allocating resources to the segments and assessing their performance. For additional information regarding Avient's business segments, see Note 15 to the Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2020. Segment information for the three and six months ended June 30, 2021 and 2020 is as follows: Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 (In millions) Sales to Total Sales Operating Sales to Total Sales Operating Color, Additives and Inks $ 622.3 $ 624.4 $ 86.3 $ 225.9 $ 226.8 $ 32.3 Specialty Engineered Materials 219.1 240.6 37.3 146.3 158.8 17.0 Distribution 392.1 404.4 23.7 234.6 238.8 14.6 Corporate and eliminations 1.7 (34.2) (39.2) 2.3 (15.3) (25.9) Total $ 1,235.2 $ 1,235.2 $ 108.1 $ 609.1 $ 609.1 $ 38.0 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (In millions) Sales to Total Sales Operating Sales to Total Sales Operating Color, Additives and Inks $ 1,230.2 $ 1,233.7 $ 175.1 $ 481.3 $ 483.3 $ 72.8 Specialty Engineered Materials 414.9 457.1 71.5 315.5 344.1 39.3 Distribution 747.0 767.1 47.7 518.0 528.3 34.0 Corporate and eliminations 5.4 (60.4) (65.8) 5.8 (35.1) (55.3) Total $ 2,397.5 $ 2,397.5 $ 228.5 $ 1,320.6 $ 1,320.6 $ 90.8 Total Assets (In millions) As of June 30, 2021 As of December 31, 2020 Color, Additives and Inks $ 3,061.9 $ 3,018.7 Specialty Engineered Materials 772.4 728.1 Distribution 343.0 244.9 Corporate and eliminations 870.1 878.8 Total assets $ 5,047.4 $ 4,870.5 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 10 — COMMITMENTS AND CONTINGENCIES We have been notified by federal and state environmental agencies and by private parties that we may be a potentially responsible party (PRP) in connection with the environmental investigation and remediation of certain sites. While government agencies frequently assert that PRPs are jointly and severally liable at these sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative contribution of waste. We may also initiate corrective and preventive environmental projects of our own to ensure safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows. In September 2007, the United States District Court for the Western District of Kentucky (Court) in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al ., held that Avient must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls, Inc. (Westlake Vinyls)), together with certain defense costs of Goodrich Corporation. The rulings also provided that Avient can seek indemnification for contamination attributable to Westlake Vinyls. Following the rulings, the parties to the litigation agreed to settle all claims regarding past environmental costs incurred at the site. The settlement agreement provides a mechanism to pursue allocation of future remediation costs at the Calvert City site to Westlake Vinyls. We will adjust our accrual, in the future, consistent with any such future allocation of costs. Additionally, we continue to pursue available insurance coverage related to this matter and recognize gains as we receive reimbursement. The environmental obligation at the site arose as a result of an agreement between The B.F. Goodrich Company (n/k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993. Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor The Geon Company ever operated the facility. Since 2009, Avient, along with respondents Westlake Vinyls, and Goodrich Corporation, have worked with the United States Environmental Protection Agency (USEPA) on the investigation of contamination at the site as well as the evaluation of potential remedies to address the contamination. The USEPA issued its Record of Decision (ROD) in September 2018, selecting a remedy consistent with our accrual assumptions. In April 2019, the respondents signed an Administrative Settlement Agreement and Order on Consent with the USEPA to conduct the remedial actions at the site. In February 2020, the three companies signed the agreed Consent Decree and remedial action Work Plan, which received Federal Court approval in January 2021. Our current reserve totals $111.5 million. In March 2013, Avient acquired Spartech Corporation (Spartech). One of Spartech's subsidiaries, Franklin-Burlington Plastics, Inc. (Franklin-Burlington), operated a plastic resin compounding facility in Kearny, New Jersey, located adjacent to the Passaic River. Portions of the Passaic River have been identified as operable units of the Diamond Alkali Superfund Site. In March 2016, the USEPA selected a remedy for the lower eight miles of the river, and Occidental Chemical Corporation (OCC) is currently preparing a Remedial Design for the USEPA. Pursuant to a USEPA order, current and former property owners along the river, including Franklin-Burlington, completed a remedial investigation and feasibility study for an upper nine-mile portion of the river, which resulted in the USEPA's issuance in April 2021 of a remedial proposed plan for public comment. In September 2017, the USEPA commenced an allocation process with a third-party allocator for the lower eight miles of the LPRSA, involving over 80 companies, including Franklin-Burlington. In December 2020, the allocator provided a recommendation report to the USEPA. The USEPA is currently reviewing that report and has not indicated when this allocation process will conclude. In June 2018, Occidental Chemical Corporation (OCC), independent of the USEPA, filed suit against 100 named entities, including Franklin-Burlington, seeking contribution for past and future costs associated with the remediation of the lower eight-mile portion of the LPRSA. The USEPA has not identified Franklin-Burlington as a responsible party for remedial design or remedial actions for any portion of the Passaic River, and we have not identified evidence that Franklin-Burlington contributed materially to the contamination into the Passaic River. Franklin-Burlington has determined that the current best estimate of any allocation of the liability that may be assigned to Franklin-Burlington will not be material to the consolidated financial statements. Our current reserve is approximately $2.5 million as of June 30, 2021. During the three and six months ended June 30, 2021, Avient recognized $12.5 million and $13.0 million of expense, respectively, related to environmental remediation costs, compared to $3.1 million and $3.5 million recognized during the three and six months ended June 30, 2020, respectively. During the six months ended June 30, 2021, Avient received $4.5 million of insurance recoveries for previously incurred environmental costs. During the three and six months ended June 30, 2020, Avient received $8.5 million and $8.7 million of insurance recoveries for previously incurred environmental costs, respectively. These expenses and insurance recoveries are included within Cost of sales within our Condensed Consolidated Statements of Income. Insurance recoveries are recognized as a gain when received. Our Condensed Consolidated Balance Sheets include accruals totaling $124.2 million and $119.7 million as of June 30, 2021 and December 31, 2020, respectively, based on our estimates of probable future environmental expenditures relating to previously contaminated sites. These undiscounted amounts are included in Accrued expenses and other current liabilities and Other non-current liabilities on the accompanying Condensed Consolidated Balance Sheets. The accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology and our view of the most likely remedy. Depending upon the results of future testing, completion and results of remedial investigation and feasibility studies, the ultimate remediation alternatives undertaken, changes in regulations, technology development, new information, newly discovered conditions and other factors, it is reasonably possible that we could incur additional costs in excess of the amount accrued at June 30, 2021. However, such additional costs, if any, cannot be currently estimated. Avient is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries, and employment related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes our current reserves are appropriate and these matters will not have a material adverse effect on the condensed consolidated financial statements. |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | Note 11 — DERIVATIVES AND HEDGING We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. In accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), that ongoing assessment will be done qualitatively for highly effective relationships. Net Investment Hedge During October and December 2018, as a means of mitigating the impact of currency fluctuations on our euro investments in foreign entities, we executed a total of six cross currency swaps, in which we will pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars with a combined notional amount of 250.0 million euros and which mature in March 2023. In August and September 2020, we executed an additional five cross currency swaps, which are structured similarly to those executed in 2018. These swaps have a combined notional amount of 677.0 million euros, which mature in May 2025. These effectively convert a portion of our U.S. dollar denominated fixed-rate debt to euro denominated fixed-rate debt. That conversion resulted in gains of $3.5 million and $7.0 million for the three and six months ended June 30, 2021, compared to gains of $2.0 million and $4.1 million for the three and six months ended June 30, 2020, respectively. These gains were recognized within Interest expense, net within the Condensed Consolidated Statements of Income. We designated the cross currency swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized within A ccumulated Other Comprehensive Income (AOCI) to offset the changes in the values of the net investment being hedged. For the three and six months ended June 30, 2021, a loss of $5.2 million and a gain of $17.7 million were recognized within translation adjustments in AOCI, net of tax, respectively, compared to a loss of $2.8 million and a gain of $6.0 million for the three and six months ended June 30, 2020, respectively. Derivatives Designated as Cash Flow Hedging Instruments In August 2018, we entered into two interest rate swaps with a combined notional amount of $150.0 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $150.0 million of our floating rate debt to a fixed rate. We began to receive floating rate interest payments based upon one-month U.S. dollar LIBOR and in return are obligated to pay interest at a fixed rate of 2.732% until November 2022. We have designated these interest rate swap contracts as cash flow hedges pursuant to Accounting Standards Codification Topic 815, Derivatives and Hedging . The net interest payments accrued each month for these highly effective hedges are reflected in net income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded as a component of AOCI. The amount of expense recognized within Interest expense, net in our Condensed Consolidated Statements of Income was $1.0 million and $2.0 million for the three and six months ended June 30, 2021, compared to $0.8 million and $1.2 million for the three and six months ended June 30, 2020. For the three and six months ended June 30, 2021, gains of $0.7 million and $1.5 million were recognized in AOCI, net of tax, compared to a gain of $0.2 million and a loss of $3.2 million for the three and six months ended June 30, 2020. All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts present value using market based observable inputs, including interest rate curves and foreign currency rates. The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets is as follows: (In millions) Balance Sheet Location As of June 30, 2021 As of December 31, 2020 Liabilities Cross Currency Swaps (Net Investment Hedge) Other non-current liabilities $ 17.3 $ 41.1 Interest Rate Swap (Cash Flow Hedge) Other non-current liabilities $ 5.3 $ 7.3 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 12 — SUBSEQUENT EVENTS On July 1, 2021, the Company completed its acquisition of Magna Colours Ltd. (Magna Colours), a market leader in sustainable, water-based inks technology for the textile screen printing industry, for the purchase price of approximately $48.0 million, net of cash acquired. The results of the Magna Colours business will be reported within the Color, Additives and Inks segment. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Form 10-Q instructions and in the opinion of management contain all adjustments, including those that are normal, recurring and necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2020 of Avient Corporation, formerly known as PolyOne Corporation. When used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries.Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be attained in subsequent periods or for the year ending December 31, 2021. |
Accounting Standards Adopted and Not Yet Adopted | Accounting Standards Adopted On January 1, 2021, the Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes (ASU 2019-12) , which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Financial Accounting Standards Board Accounting Standards Codification (ASC) 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-12 did not result in any material impact. Accounting Standards Not Yet Adopted ASU 2020-04, Reference Rate Reform (ASU 2020-04), provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as LIBOR. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in ASU 2020-04 are effective through December 31, 2022. The Company is currently evaluating the impact of adopting this standard on our consolidated financial statements and disclosures. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Summarized Preliminary Purchase Price Allocation | The summarized purchase price allocation is as follows: Preliminary Allocation Measurement Period Adjustments Final Allocation Cash and cash equivalents $ 145.1 $ — $ 145.1 Accounts receivable 170.8 — 170.8 Inventories 99.0 0.2 99.2 Other current assets 56.9 6.3 63.2 Property 267.6 (7.5) 260.1 Goodwill 569.0 (7.8) 561.2 Intangible assets: Customer relationships 221.9 (20.7) 201.2 Trade names and trademarks 32.0 2.8 34.8 Patents, technology and other 273.9 7.4 281.3 Operating lease assets 30.1 — 30.1 Other long-term assets 1.3 5.8 7.1 Short term debt (0.4) — (0.4) Accounts payable (92.7) 1.2 (91.5) Current operating lease obligations (2.8) — (2.8) Accrued expenses and other current liabilities (81.2) (4.5) (85.7) Long-term debt (6.7) — (6.7) Non-current operating lease obligations (25.8) — (25.8) Deferred tax liabilities (60.7) 25.9 (34.8) Pension and other post retirement benefits (53.8) — (53.8) Other long-term liabilities (5.4) (6.7) (12.1) Non-controlling interests (12.8) (2.4) (15.2) Total purchase price consideration $ 1,525.3 $ — $ 1,525.3 |
Pro Forma Information | Had the Clariant MB Acquisition occurred on January 1, 2019, which was the beginning of the fiscal year prior to the acquisition, sales and income from continuing operations before income taxes on a pro forma basis would have been as follows: (Unaudited) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Sales $ 870.2 $ 1,861.1 Income from continuing operations before income taxes 55.1 113.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Changes in Carrying Amount of Goodwill by Operating Segment | Goodwill as of June 30, 2021 and December 31, 2020 and changes in the carrying amount of goodwill by segment were as follows: (In millions) Specialty Engineered Materials Color, Additives and Inks Distribution Total Balance at December 31, 2020 $ 237.8 $ 1,068.7 $ 1.6 $ 1,308.1 Acquisition of businesses — (7.8) — (7.8) Currency translation (0.5) (18.1) — (18.6) Balance at June 30, 2021 $ 237.3 $ 1,042.8 $ 1.6 $ 1,281.7 |
Schedule of Finite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of June 30, 2021 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 489.0 $ (123.3) $ 12.1 $ 377.8 Patents, technology and other 560.1 (117.7) 14.2 456.6 Indefinite-lived trade names 110.5 — — 110.5 Total $ 1,159.6 $ (241.0) $ 26.3 $ 944.9 As of December 31, 2020 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 508.7 $ (109.8) $ 23.8 $ 422.7 Patents, technology and other 549.9 (102.4) 28.8 476.3 Indefinite-lived trade names 109.5 — — 109.5 Total $ 1,168.1 $ (212.2) $ 52.6 $ 1,008.5 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following: As of June 30, 2021 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 489.0 $ (123.3) $ 12.1 $ 377.8 Patents, technology and other 560.1 (117.7) 14.2 456.6 Indefinite-lived trade names 110.5 — — 110.5 Total $ 1,159.6 $ (241.0) $ 26.3 $ 944.9 As of December 31, 2020 (In millions) Acquisition Cost Accumulated Amortization Currency Translation Net Customer relationships $ 508.7 $ (109.8) $ 23.8 $ 422.7 Patents, technology and other 549.9 (102.4) 28.8 476.3 Indefinite-lived trade names 109.5 — — 109.5 Total $ 1,168.1 $ (212.2) $ 52.6 $ 1,008.5 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost from continued operations recognized within our Condensed Consolidated Statements of Income were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2021 2020 2021 2020 Cost of sales $ 5.5 $ 2.4 $ 9.3 $ 4.2 Selling and administrative expense 3.4 4.3 7.8 9.1 Total operating lease cost $ 8.9 $ 6.7 $ 17.1 $ 13.3 |
Schedule of Maturity of Operating Lease Liabilities | Maturity Analysis of Operating Lease Liabilities: As of June 30, 2021 (In millions) 2021 $ 15.4 2022 26.1 2023 19.7 2024 12.6 2025 7.9 Thereafter 15.6 Total lease payments 97.3 Less amount of lease payment representing interest (9.6) Total present value of lease payments $ 87.7 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, Net | (In millions) As of June 30, 2021 As of December 31, 2020 Finished products $ 205.4 $ 171.7 Work in process 21.6 16.6 Raw materials and supplies 185.5 139.2 Inventories, net $ 412.5 $ 327.5 |
Property, Net (Tables)
Property, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Net | Components of Property, net are as follows: (In millions) As of June 30, 2021 As of December 31, 2020 Land and land improvements $ 93.0 $ 95.7 Buildings 334.4 333.5 Machinery and equipment 972.1 948.2 Property, gross 1,399.5 1,377.4 Less accumulated depreciation (719.4) (682.5) Property, net $ 680.1 $ 694.9 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Components of Debt | Debt consists of the following instruments: As of June 30, 2021 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ — $ — $ — — % Senior secured term loan due 2026 614.7 7.1 607.6 1.87 % 5.25% senior notes due 2023 600.0 1.9 598.1 5.25 % 5.75% senior notes due 2025 650.0 7.8 642.2 5.75 % Other Debt 23.1 — 23.1 Total Debt 1,887.8 16.8 1,871.0 Less short-term and current portion of long-term debt 18.8 — 18.8 Total long-term debt, net of current portion $ 1,869.0 $ 16.8 $ 1,852.2 As of December 31, 2020 (in millions) Principal Amount Unamortized discount and debt issuance cost Net Debt Weighted average interest rate Senior secured revolving credit facility due 2022 $ — $ — $ — — % Senior secured term loan due 2026 618.0 8.0 610.0 2.36 % 5.25% senior notes due 2023 600.0 2.5 597.5 5.25 % 5.75% senior notes due 2025 650.0 8.8 641.2 5.75 % Other Debt 23.9 — 23.9 Total Debt 1,891.9 19.3 1,872.6 Less short-term and current portion of long-term debt 18.6 — 18.6 Total long-term debt, net of current portion $ 1,873.3 $ 19.3 $ 1,854.0 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information for the three and six months ended June 30, 2021 and 2020 is as follows: Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 (In millions) Sales to Total Sales Operating Sales to Total Sales Operating Color, Additives and Inks $ 622.3 $ 624.4 $ 86.3 $ 225.9 $ 226.8 $ 32.3 Specialty Engineered Materials 219.1 240.6 37.3 146.3 158.8 17.0 Distribution 392.1 404.4 23.7 234.6 238.8 14.6 Corporate and eliminations 1.7 (34.2) (39.2) 2.3 (15.3) (25.9) Total $ 1,235.2 $ 1,235.2 $ 108.1 $ 609.1 $ 609.1 $ 38.0 Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 (In millions) Sales to Total Sales Operating Sales to Total Sales Operating Color, Additives and Inks $ 1,230.2 $ 1,233.7 $ 175.1 $ 481.3 $ 483.3 $ 72.8 Specialty Engineered Materials 414.9 457.1 71.5 315.5 344.1 39.3 Distribution 747.0 767.1 47.7 518.0 528.3 34.0 Corporate and eliminations 5.4 (60.4) (65.8) 5.8 (35.1) (55.3) Total $ 2,397.5 $ 2,397.5 $ 228.5 $ 1,320.6 $ 1,320.6 $ 90.8 Total Assets (In millions) As of June 30, 2021 As of December 31, 2020 Color, Additives and Inks $ 3,061.9 $ 3,018.7 Specialty Engineered Materials 772.4 728.1 Distribution 343.0 244.9 Corporate and eliminations 870.1 878.8 Total assets $ 5,047.4 $ 4,870.5 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative financial instruments recognized in the Condensed Consolidated Balance Sheets is as follows: (In millions) Balance Sheet Location As of June 30, 2021 As of December 31, 2020 Liabilities Cross Currency Swaps (Net Investment Hedge) Other non-current liabilities $ 17.3 $ 41.1 Interest Rate Swap (Cash Flow Hedge) Other non-current liabilities $ 5.3 $ 7.3 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | Jul. 01, 2020USD ($) | May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Jan. 02, 2019period | May 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||||
Proceeds from senior notes offering | $ 640.5 | |||||||||
Goodwill | $ 1,281.7 | $ 1,308.1 | ||||||||
Payment for earnout period liability | 0 | $ 32.9 | ||||||||
Underwritten Public Offering | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from issuance of common shares | $ 496.1 | |||||||||
Clariant MB | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price, net | $ 1,400 | |||||||||
Goodwill | $ 561.2 | $ 569 | ||||||||
Acquisition costs | $ 7.9 | 11.4 | ||||||||
Clariant MB | Expense adjustment | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Pro forma adjustments | $ 3.3 | $ 6.6 | ||||||||
Clariant MB | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible asset, weighted average lives (years) | 18 years | |||||||||
Clariant MB | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Intangible asset, weighted average lives (years) | 20 years | |||||||||
PlastiComp | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Earn-out ceiling | $ 35 | |||||||||
Fiber-Line | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of earn-out periods | period | 2 | |||||||||
Payment for earnout period liability | $ 53.9 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Preliminary Allocation/Final Allocation | ||
Goodwill | $ 1,281.7 | $ 1,308.1 |
Measurement Period Adjustments | ||
Other long-term assets | 5.8 | |
Clariant MB | ||
Preliminary Allocation/Final Allocation | ||
Cash and cash equivalents | 145.1 | 145.1 |
Accounts receivable | 170.8 | 170.8 |
Inventories | 99.2 | 99 |
Other current assets | 63.2 | 56.9 |
Property | 260.1 | 267.6 |
Goodwill | 561.2 | 569 |
Operating lease assets | 30.1 | 30.1 |
Other long-term assets | 7.1 | 1.3 |
Short term debt | (0.4) | (0.4) |
Accounts payable | (91.5) | (92.7) |
Current operating lease obligations | (2.8) | (2.8) |
Accrued expenses and other current liabilities | (85.7) | (81.2) |
Long-term debt | (6.7) | (6.7) |
Non-current operating lease obligations | (25.8) | (25.8) |
Deferred tax liabilities | (34.8) | (60.7) |
Pension and other post retirement benefits | (53.8) | (53.8) |
Other long-term liabilities | (12.1) | (5.4) |
Non-controlling interests | (15.2) | (12.8) |
Total purchase price consideration | 1,525.3 | 1,525.3 |
Measurement Period Adjustments | ||
Inventories | 0.2 | |
Other current assets | 6.3 | |
Property | (7.5) | |
Goodwill | (7.8) | |
Accounts payable | 1.2 | |
Current operating lease obligations | (4.5) | |
Long-term debt | 25.9 | |
Other long-term liabilities | (6.7) | |
Non-controlling interests | (2.4) | |
Clariant MB | Customer relationships | ||
Preliminary Allocation/Final Allocation | ||
Intangible assets: | 201.2 | 221.9 |
Measurement Period Adjustments | ||
Intangibles assets | (20.7) | |
Clariant MB | Trade names and trademarks | ||
Preliminary Allocation/Final Allocation | ||
Intangible assets: | 34.8 | 32 |
Measurement Period Adjustments | ||
Intangibles assets | 2.8 | |
Clariant MB | Patents, technology and other | ||
Preliminary Allocation/Final Allocation | ||
Intangible assets: | 281.3 | $ 273.9 |
Measurement Period Adjustments | ||
Intangibles assets | $ 7.4 |
Business Combinations - Pro for
Business Combinations - Pro forma Sales and Net Income/Loss (Details) - Clariant MB - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||
Sales | $ 870.2 | $ 1,861.1 | |
Income from continuing operations before income taxes | $ 55.1 | $ 113.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill and Changes in Carrying Amount of Goodwill by Operating Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 1,308.1 |
Acquisition of businesses | (7.8) |
Currency translation | (18.6) |
Goodwill, Ending Balance | 1,281.7 |
Specialty Engineered Materials | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 237.8 |
Acquisition of businesses | 0 |
Currency translation | (0.5) |
Goodwill, Ending Balance | 237.3 |
Color, Additives and Inks | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 1,068.7 |
Acquisition of businesses | (7.8) |
Currency translation | (18.1) |
Goodwill, Ending Balance | 1,042.8 |
Distribution | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 1.6 |
Acquisition of businesses | 0 |
Currency translation | 0 |
Goodwill, Ending Balance | $ 1.6 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Indefinite and Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (241) | $ (212.2) |
Currency Translation | 26.3 | 52.6 |
Indefinite-lived Intangible Assets [Line Items] | ||
Acquisition Cost | 1,159.6 | 1,168.1 |
Net | 944.9 | 1,008.5 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trade names | 110.5 | 109.5 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Acquisition Cost | 489 | 508.7 |
Accumulated Amortization | (123.3) | (109.8) |
Currency Translation | 12.1 | 23.8 |
Finite-Lived Intangible Assets, Net, Total | 377.8 | 422.7 |
Patents, technology and other | ||
Intangible Assets [Line Items] | ||
Acquisition Cost | 560.1 | 549.9 |
Accumulated Amortization | (117.7) | (102.4) |
Currency Translation | 14.2 | 28.8 |
Finite-Lived Intangible Assets, Net, Total | $ 456.6 | $ 476.3 |
Leasing Arrangements - Lease Co
Leasing Arrangements - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Total operating lease cost | $ 8.9 | $ 6.7 | $ 17.1 | $ 13.3 |
Cost of sales | ||||
Lessee, Lease, Description [Line Items] | ||||
Total operating lease cost | 5.5 | 2.4 | 9.3 | 4.2 |
Selling and administrative expense | ||||
Lessee, Lease, Description [Line Items] | ||||
Total operating lease cost | $ 3.4 | $ 4.3 | $ 7.8 | $ 9.1 |
Leasing Arrangements - Narrativ
Leasing Arrangements - Narrative (Details) | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term | 4 years 10 months 24 days | 3 years 10 months 24 days |
Weighted average discount rate | 3.70% | 4.30% |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Maturity of Lease Liabilities (Details) $ in Millions | Jun. 30, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 15.4 |
2022 | 26.1 |
2023 | 19.7 |
2024 | 12.6 |
2025 | 7.9 |
Thereafter | 15.6 |
Total lease payments | 97.3 |
Less amount of lease payment representing interest | (9.6) |
Total present value of lease payments | $ 87.7 |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 205.4 | $ 171.7 |
Work in process | 21.6 | 16.6 |
Raw materials and supplies | 185.5 | 139.2 |
Inventories, net | $ 412.5 | $ 327.5 |
Property, Net (Details)
Property, Net (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 1,399.5 | $ 1,377.4 |
Less accumulated depreciation | (719.4) | (682.5) |
Property, net | 680.1 | 694.9 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 93 | 95.7 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 334.4 | 333.5 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 972.1 | $ 948.2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.60% | 25.10% | 22.50% | 25.90% |
Financing Arrangements - Compon
Financing Arrangements - Components of Long-Term Debt (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | May 13, 2020 | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 1,887.8 | $ 1,891.9 | |
Unamortized discount and debt issuance cost | 16.8 | 19.3 | |
Long-term Debt, Total | 1,871 | 1,872.6 | |
Less short-term and current portion of long-term debt, Principal Amount | 18.8 | 18.6 | |
Less short-term and current portion of long-term debt, Unamortized discount and debt issuance cost | 0 | 0 | |
Less short-term and current portion of long-term debt | 18.8 | 18.6 | |
Total long-term debt, gross, net of current | 1,869 | 1,873.3 | |
Debt excluding current, unamortized discount and debt issuance costs | 16.8 | 19.3 | |
Total long-term debt, net of current portion | 1,852.2 | 1,854 | |
Senior secured revolving credit facility due 2022 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Principal Amount | 0 | 0 | |
Unamortized discount and debt issuance cost | 0 | 0 | |
Long-term Debt, Total | $ 0 | $ 0 | |
Weighted average interest rate | 0.00% | 0.00% | |
Senior secured term loan due 2026 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 614.7 | $ 618 | |
Unamortized discount and debt issuance cost | 7.1 | 8 | |
Long-term Debt, Total | $ 607.6 | $ 610 | |
Weighted average interest rate | 1.87% | 2.36% | |
5.25% Senior Notes Due 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.25% | 5.25% | |
Principal Amount | $ 600 | $ 600 | |
Unamortized discount and debt issuance cost | 1.9 | 2.5 | |
Long-term Debt, Total | $ 598.1 | $ 597.5 | |
Weighted average interest rate | 5.25% | 5.25% | |
5.75% Senior Notes Due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% |
Principal Amount | $ 650 | $ 650 | |
Unamortized discount and debt issuance cost | 7.8 | 8.8 | |
Long-term Debt, Total | $ 642.2 | $ 641.2 | |
Weighted average interest rate | 5.75% | 5.75% | |
Other Debt | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 23.1 | $ 23.9 | |
Unamortized discount and debt issuance cost | 0 | 0 | |
Long-term Debt, Total | $ 23.1 | $ 23.9 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) | May 13, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Fair value of debt instruments | $ 1,942,900,000 | $ 1,955,900,000 | |
Senior Notes | 5.75% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Aggregate principal | $ 650,000,000 | ||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% |
Proceeds from Notes offering, net of debt issuance costs | $ 640,500,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 1,235.2 | $ 609.1 | $ 2,397.5 | $ 1,320.6 | |
Operating Income | 108.1 | 38 | 228.5 | 90.8 | |
Total assets | 5,047.4 | 5,047.4 | $ 4,870.5 | ||
Corporate and eliminations before intersegment eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1.7 | 2.3 | 5.4 | 5.8 | |
Corporate and eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (34.2) | (15.3) | (60.4) | (35.1) | |
Operating Income | (39.2) | (25.9) | (65.8) | (55.3) | |
Total assets | 870.1 | 870.1 | 878.8 | ||
Color, Additives and Inks | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 622.3 | 225.9 | 1,230.2 | 481.3 | |
Color, Additives and Inks | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 624.4 | 226.8 | 1,233.7 | 483.3 | |
Operating Income | 86.3 | 32.3 | 175.1 | 72.8 | |
Total assets | 3,061.9 | 3,061.9 | 3,018.7 | ||
Specialty Engineered Materials | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 219.1 | 146.3 | 414.9 | 315.5 | |
Specialty Engineered Materials | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 240.6 | 158.8 | 457.1 | 344.1 | |
Operating Income | 37.3 | 17 | 71.5 | 39.3 | |
Total assets | 772.4 | 772.4 | 728.1 | ||
Distribution | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 392.1 | 234.6 | 747 | 518 | |
Distribution | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 404.4 | 238.8 | 767.1 | 528.3 | |
Operating Income | 23.7 | $ 14.6 | 47.7 | $ 34 | |
Total assets | $ 343 | $ 343 | $ 244.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Feb. 29, 2020company | Jun. 30, 2018entitymi | Sep. 30, 2017companymi | Mar. 31, 2016mi | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)mi | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of companies that signed the administrative settlement agreement and remediation Work Plan | company | 3 | ||||||||
Accrued probable future environmental expenditures | $ 124.2 | $ 124.2 | $ 119.7 | ||||||
Estimated litigation reserve | 2.5 | 2.5 | |||||||
Expense related to environmental activities | 12.5 | $ 3.1 | 13 | $ 3.5 | |||||
Insurance recoveries | $ 8.5 | 4.5 | $ 8.7 | ||||||
Calvert City | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Accrued probable future environmental expenditures | $ 111.5 | $ 111.5 | |||||||
Lower Passaic River | Contamination of Passaic River Study Area | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Length of portion of river | mi | 8 | 8 | 8 | 9 | |||||
Number of companies receiving notice of process to allocate remedial costs | company | 80 | ||||||||
Number of entities named in suit | entity | 100 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020EUR (€)swap | Dec. 31, 2018EUR (€)swap | Aug. 31, 2018USD ($)swap | |
Derivative [Line Items] | |||||||
Gain (loss) | $ (0.7) | $ (0.2) | $ (1.5) | $ 3.2 | |||
Net Investment Hedging | Cross Currency Swaps | |||||||
Derivative [Line Items] | |||||||
Number of cross currency swaps | swap | 5 | ||||||
Notional amount | € | € 677 | € 250 | |||||
Gains (loss) on net investment hedge, net of tax | (5.2) | (2.8) | 17.7 | 6 | |||
Net Investment Hedging | Interest expense, net | Cross Currency Swaps | |||||||
Derivative [Line Items] | |||||||
Number of cross currency swaps | swap | 6 | ||||||
Conversion benefit | 3.5 | 2 | 7 | 4.1 | |||
Cash Flow Hedging | Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 150 | ||||||
Number of interest rate swaps | swap | 2 | ||||||
Floating rate debt | $ 150 | ||||||
Floating rate | 2.732% | ||||||
Gain (loss) | (0.7) | (0.2) | (1.5) | 3.2 | |||
Cash Flow Hedging | Interest expense, net | Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Expense recognized | $ 1 | $ 0.8 | $ 2 | $ 1.2 |
Derivatives and Hedging - Fair
Derivatives and Hedging - Fair Value of Derivatives (Details) - Designated as Hedging Instrument - Other non-current liabilities - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Net Investment Hedging | Cross Currency Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 17.3 | $ 41.1 |
Cash Flow Hedging | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 5.3 | $ 7.3 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 01, 2021USD ($) |
Magna Colours | Subsequent Event | |
Subsequent Event [Line Items] | |
Acquisition purchase price | $ 48 |