Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | COMPASS MINERALS INTERNATIONAL INC | ||
Entity Central Index Key | 1,227,654 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,208,668,644 | ||
Entity Common Stock, Shares Outstanding | 33,831,815 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 36.6 | $ 77.4 |
Receivables, less allowance for doubtful accounts of $10.9 in 2017 and $9.0 in 2016 | 344.5 | 320.9 |
Inventories | 289.9 | 280.6 |
Other | 66.5 | 36.1 |
Total current assets | 737.5 | 715 |
Property, plant and equipment, net | 1,138.1 | 1,092.3 |
Intangible assets, net | 143.6 | 157.6 |
Goodwill | 405 | 412.2 |
Investment in equity method investee | 24.6 | 24.9 |
Other | 122.2 | 64.5 |
Total assets | 2,571 | 2,466.5 |
Current liabilities: | ||
Current portion of long-term debt | 32.1 | 130.2 |
Accounts payable | 123.5 | 100.8 |
Accrued expenses | 54.4 | 105.3 |
Accrued salaries and wages | 23.9 | 22.6 |
Income taxes payable | 25.9 | 4.4 |
Accrued interest | 8.2 | 8.7 |
Total current liabilities | 268 | 372 |
Long-term debt, net of current portion | 1,330.4 | 1,194.8 |
Deferred income taxes, net | 127 | 130.8 |
Other noncurrent liabilities | 151 | 51.8 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common Stock: $0.01 par value, authorized shares - 200,000,000; issued shares - 35,367,264 | 0.4 | 0.4 |
Additional paid-in capital | 102.5 | 97.1 |
Treasury stock, at cost — 1,539,763 shares at December 31, 2017 and 1,577,960 shares at December 31, 2016 | (2.9) | (3) |
Retained earnings | 672.5 | 727.5 |
Accumulated other comprehensive loss | (77.9) | (104.9) |
Total stockholders' equity | 694.6 | 717.1 |
Total liabilities and stockholders' equity | $ 2,571 | $ 2,466.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Allowance for doubtful accounts | $ 10.9 | $ 9 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 35,367,264 | 35,367,264 |
Treasury stock, shares (in shares) | 1,539,763 | 1,577,960 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Sales | $ 1,364.4 | $ 1,138 | $ 1,098.7 |
Shipping and handling cost | 267.5 | 244.9 | 261.5 |
Product cost | 770.3 | 593.6 | 507.1 |
Gross profit | 326.6 | 299.5 | 330.1 |
Selling, general and administrative expenses | 167.4 | 124.9 | 108.7 |
Operating earnings | 159.2 | 174.6 | 221.4 |
Other expense (income): | |||
Interest expense | 52.9 | 34.1 | 21.5 |
Net (earnings) loss in equity investee | (0.8) | 1.4 | 0 |
Gain from remeasurement of equity method investment | 0 | (59.3) | 0 |
Other, net | 4.4 | 1.1 | (14.6) |
Earnings before income taxes | 102.7 | 197.3 | 214.5 |
Income tax expense | 60 | 34.6 | 55.3 |
Net earnings | $ 42.7 | $ 162.7 | $ 159.2 |
Basic net earnings per common share (in dollars per share) | $ 1.25 | $ 4.79 | $ 4.70 |
Diluted net earnings per common share (in dollars per share) | $ 1.25 | $ 4.79 | $ 4.69 |
Weighted-average common shares outstanding (in thousands): | |||
Basic (in shares) | 33,819 | 33,776 | 33,677 |
Diluted (in shares) | 33,820 | 33,780 | 33,692 |
Cash dividends per share (in dollars per share) | $ 2.88 | $ 2.78 | $ 2.64 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 42.7 | $ 162.7 | $ 159.2 |
Other comprehensive income (loss): | |||
Unrealized (loss) gain from change in pension costs, net of tax of $0.0, $(0.1) and $(1.2) in 2017, 2016 and 2015 | (0.2) | 0.1 | 5.2 |
Unrealized (loss) gain on cash flow hedges, net of tax of $0.8, $(1.3) and $(0.3) in 2017, 2016 and 2015 | (1.5) | 2.2 | 0.4 |
Cumulative translation adjustment | 28.7 | 1.1 | (98.4) |
Comprehensive income | $ 69.7 | $ 166.1 | $ 66.4 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) from change in pension costs, tax | $ 0 | $ (0.1) | $ (1.2) |
Unrealized gain (loss) on cash flow hedges, tax | $ 0.8 | $ (1.3) | $ (0.3) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2014 | $ 653.6 | $ 0.4 | $ 82.5 | $ (3.3) | $ 589.5 | $ (15.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 66.4 | 159.2 | (92.8) | |||
Dividends on common stock/equity awards | (89.4) | 0.2 | (89.6) | |||
Income tax benefits from equity awards | 0.5 | 0.5 | ||||
Stock options exercised | 2.5 | 2.4 | 0.1 | |||
Stock-based compensation | 6.1 | 6.1 | ||||
Balance at Dec. 31, 2015 | 639.7 | 0.4 | 91.7 | (3.2) | 659.1 | (108.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 166.1 | 162.7 | 3.4 | |||
Dividends on common stock/equity awards | (94.1) | 0.2 | (94.3) | |||
Shares issued for stock units | 0 | (0.2) | 0.2 | |||
Income tax deficiencies from equity awards | (0.2) | (0.2) | ||||
Stock options exercised | 0.7 | 0.7 | ||||
Stock-based compensation | 4.9 | 4.9 | ||||
Balance at Dec. 31, 2016 | 717.1 | 0.4 | 97.1 | (3) | 727.5 | (104.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive income | 69.7 | 42.7 | 27 | |||
Dividends on common stock/equity awards | (97.5) | 0.2 | (97.7) | |||
Shares issued for stock units | 0 | (0.1) | 0.1 | |||
Stock options exercised | 0.3 | 0.3 | ||||
Stock-based compensation | 5 | 5 | ||||
Balance at Dec. 31, 2017 | $ 694.6 | $ 0.4 | $ 102.5 | $ (2.9) | $ 672.5 | $ (77.9) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net earnings | $ 42.7 | $ 162.7 | $ 159.2 |
Adjustments to reconcile net earnings to net cash flows provided by operating activities: | |||
Depreciation, depletion and amortization | 122.2 | 90.3 | 78.3 |
Finance fee amortization | 2.2 | 2 | 1.2 |
Early extinguishment and refinancing of long-term debt | 0 | 0.7 | 0 |
Impairment of intangible asset | 0 | 3.1 | 0 |
Stock-based compensation | 5 | 4.9 | 6.1 |
Deferred income taxes | (16.5) | (11.3) | (0.1) |
Net (earnings) loss in equity investee | (0.8) | 1.4 | 0 |
Gain on settlement of acquisition-related contingent consideration | (1.9) | 0 | 0 |
Gain from remeasurement of equity method investment | 0 | (59.3) | 0 |
Other, net | 0.9 | 4.5 | 4.2 |
Changes in operating assets and liabilities, net of acquisition: | |||
Receivables | (22.7) | (76.9) | 59 |
Inventories | (5.9) | 65.1 | (90.5) |
Other assets | (72.8) | 35.4 | (11.3) |
Accounts payable, income taxes payable and accrued expenses | (3.6) | (56) | (65.7) |
Other liabilities | 98.1 | 0.7 | (2.5) |
Net cash provided by operating activities | 146.9 | 167.3 | 137.9 |
Cash flows from investing activities: | |||
Capital expenditures | (114.1) | (182.2) | (217.6) |
Investment in equity method investee | 0 | (4.7) | (116.4) |
Acquisition of a business, net of cash and cash equivalents acquired | 0 | (277.7) | 0 |
Other, net | (4.9) | (3.2) | (1.4) |
Net cash used in investing activities | (119) | (467.8) | (335.4) |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility borrowings | 295.8 | 384.3 | 50 |
Principal payments on revolving credit facility borrowings | (232) | (283.4) | (45.5) |
Proceeds from the issuance of long-term debt | 98.7 | 850.9 | 100 |
Principal payments on long-term debt | (123.8) | (535.1) | (3.9) |
Dividends paid | (97.5) | (94.1) | (89.4) |
Acquisition-related contingent consideration payment | (14.7) | 0 | 0 |
Premium and other payments to refinance debt | (0.2) | (2.8) | 0 |
Deferred financing costs | (0.7) | (5.7) | 0 |
Proceeds received from stock option exercises | 0.3 | 0.7 | 2.5 |
Excess tax (deficiencies) benefits from equity compensation awards | 0 | (0.2) | 0.5 |
Other | 0.7 | 0 | 0 |
Net cash (used in) provided by financing activities | (73.4) | 314.6 | 14.2 |
Effect of exchange rate changes on cash and cash equivalents | 4.7 | 4.9 | (25.1) |
Net change in cash and cash equivalents | (40.8) | 19 | (208.4) |
Cash and cash equivalents, beginning of the year | 77.4 | 58.4 | 266.8 |
Cash and cash equivalents, end of year | 36.6 | 77.4 | 58.4 |
Supplemental cash flow information: | |||
Interest paid, net of amounts capitalized | 42.7 | 26.7 | 20.5 |
Income taxes paid, net of refunds | $ 27.2 | $ 59.4 | $ 89.4 |
ORGANIZATION AND FORMATION
ORGANIZATION AND FORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND FORMATION | ORGANIZATION AND FORMATION Compass Minerals International, Inc. (“CMI”), through its subsidiaries (collectively, “CMP,” “Compass Minerals” or the “Company”), is a leading producer of essential minerals that solve nature’s challenges, including salt for winter roadway safety and other consumer, industrial and agricultural uses, and specialty plant nutrition minerals that improve the quality and yield of crops, and specialty chemicals for water treatment and other industrial processes. The Company’s principal products are salt, consisting of sodium chloride and magnesium chloride, sulfate of potash (“SOP”) and various other micronutrient products. The Company’s production sites are located in the United States (“U.S.”), Canada, Brazil and the United Kingdom (the “U.K.”). The Company also provides records management services to businesses located in the U.K. CMI is a holding company with no operations other than those of its subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Management Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) as included in the Accounting Standards Codification requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. b. Basis of Consolidation: The Company’s consolidated financial statements include the accounts of CMI and its wholly-owned domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. c. Foreign Currency: Assets and liabilities are translated into U.S. dollars at end of period exchange rates. Revenues and expenses are translated using the monthly average rates of exchange during the year. Adjustments resulting from the translation of foreign-currency financial statements into the reporting currency, U.S. dollars, are included in accumulated other comprehensive loss. The Company recorded foreign exchange gains (losses) of $5.8 million , $15.8 million and $(33.7) million in 2017 , 2016 and 2015 , respectively, in accumulated other comprehensive loss related to intercompany notes which were deemed to be of long-term investment nature. Aggregate exchange gains (losses) from transactions denominated in a currency other than the functional currency, which are included in other expense (income), for the years ended December 31, 2017 , 2016 and 2015 , were $7.1 million , $0.1 million and $(13.9) million , respectively. d. Revenue Recognition: The Company typically recognizes revenue at the time of shipment to the customer, which coincides with the transfer of title and risk of ownership to the customer. Sales represent billings to customers net of sales taxes charged for the sale of the product. Sales include amounts charged to customers for shipping and handling costs, which are expensed when the related product is sold. e. Cash and Cash Equivalents: The Company considers all investments with original maturities of three months or less to be cash equivalents. The Company maintains the majority of its cash in bank deposit accounts with several commercial banks with high credit ratings in the U.S., Canada, Brazil and Europe. Typically, the Company has bank deposits in excess of federally insured limits. Currently, the Company does not believe it is exposed to significant credit risk on its cash and cash equivalents. f. Accounts Receivable and Allowance for Doubtful Accounts: Receivables consist almost entirely of trade accounts receivable. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience by business line and a current assessment of its portfolio, including information regarding individual customers. The Company reviews its past due account balances for collectability and adjusts its allowance for doubtful accounts accordingly. Account balances are charged off against the allowance when the Company believes it is probable that the receivable will not be recovered. g. Inventories: Inventories are stated at the lower of cost or net realizable value. Finished goods and raw material and supply costs are valued using the average cost method. Raw materials and supplies primarily consist of raw materials purchased to aid in the production of mineral and chemical products, maintenance materials and packaging materials. Finished goods are primarily comprised of salt, magnesium chloride, and plant nutrition and chemical products readily available for sale. Substantially all costs associated with the production of finished goods at the Company’s production locations are captured as inventory costs. As required by U.S. GAAP, a portion of the fixed costs at a location are not included in inventory and are expensed as a product cost if production at that location is determined to be abnormally low in any period. Additionally, since the Company’s products are often stored at third-party warehousing locations, the Company includes in the cost of inventory the freight and handling costs necessary to move the product to storage until the product is sold to a customer. h. Other Current Assets: In the fourth quarter of 2015, the Company began marketing certain assets used in farming operations. Management remains committed to sell these assets, and the assets continue to be marketed at a reasonable price. The Company has performed an impairment analysis and concluded that the fair market value of these assets exceeds their carrying value. These assets have been recorded in other current assets in the Consolidated Balance Sheets as of December 31, 2017 and 2016. During the fourth quarter of 2016, a $2.2 million loss was recognized to record inventory at the lower of cost or market. The loss is included in product cost in the Consolidated Statement of Operations. The amounts classified as held for sale as of December 31, 2017 include property, plant and equipment of approximately $2.8 million and water rights of approximately $5.2 million . In addition, other current assets as of December 31, 2017 includes $21.8 million of tax refunds from U.S. taxing authorities pursuant to the tax settlement with Canadian and U.S. tax authorities described in Note 7 to the Consolidated Financial Statements. The remaining other amounts included in other current assets as of December 31, 2017 and 2016, respectively, consist principally of prepaid expenses. i. Property, Plant and Equipment: Property, plant and equipment is stated at cost and includes capitalized interest. The costs of replacements or renewals, which improve or extend the life of existing property, are capitalized. Maintenance and repairs are expensed as incurred. Upon retirement or disposition of an asset, any resulting gain or loss is included in the Company’s operating results. Property, plant and equipment also includes mineral interests. The mineral interests for the Company’s Winsford U.K. mine are owned. The Company leases probable mineral reserves at its Cote Blanche and Goderich mines, its Ogden facility and several of its other North American facilities. These leases have varying terms, and many provide for a royalty payment to the lessor based on a specific amount per ton of mineral extracted or as a percentage of revenue. The Company’s rights to extract minerals are contractually limited by time. The Cote Blanche mine is operated under land and mineral leases, and the mineral lease expires in 2060 with two additional 25 -year renewal periods. The Goderich mine mineral reserve lease expires in 2022 with the Company’s option to renew until 2043 after demonstrating to the lessor that the mine’s useful life is greater than the lease’s term. The Ogden facility mineral reserve lease renews annually. The Company believes it will be able to continue to extend lease agreements as it has in the past, at commercially reasonable terms, without incurring substantial costs or material modifications to the existing lease terms and conditions, and therefore, management believes that assigned lives are appropriate. The Company’s mineral interests are depleted on a units-of-production basis based upon the latest available mineral study. The weighted average amortization period for the leased probable mineral reserves is 92 years as of December 31, 2017 . The Company also owns other mineral properties. The weighted average life for the probable owned mineral reserves is 39 years as of December 31, 2017 based upon management’s current production estimates. Buildings and structures are depreciated on a straight line basis over lives generally ranging from 10 to 30 years. Portable buildings generally have shorter lives than permanent structures. Leasehold and building improvements typically have shorter estimated lives of 5 to 20 years or lower based on the life of the lease to which the improvement relates. Property, plant and equipment recognized as a result of the full acquisition of Produquímica Indústria e Comércio S.A. (“Produquímica”) (see Note 3) were recorded at fair value as of the acquisition date and are being depreciated based on estimated weighted-average remaining useful lives. The Company’s other fixed assets are amortized on a straight-line basis over their respective lives. The following table summarizes the estimated useful lives of the Company’s different classes of property, plant and equipment: Years Land improvements 10 to 25 Buildings and structures 10 to 30 Leasehold and building improvements 5 to 40 Machinery and equipment – vehicles 3 to 10 Machinery and equipment – other mining and production 3 to 50 Office furniture and equipment 3 to 10 Mineral interests 20 to 99 The Company has capital leases which are recorded in property, plant and equipment at the beginning of the lease at the lower of the fair value of the leased property or the present value of the minimum lease payments. Lease payments are recorded as interest expense and a reduction of the lease liability. A capital lease asset is depreciated over the lower of its useful life or the lease term. The Company has capitalized computer software costs of $29.5 million and $33.9 million as of December 31, 2017 and 2016 , respectively, recorded in property, plant and equipment. The capitalized costs are being amortized over five years. The Company recorded $4.7 million , $3.1 million and $2.2 million of amortization expense related to capitalized computer software for 2017 , 2016 and 2015 , respectively. The Company recognizes and measures obligations related to the retirement of tangible long-lived assets in accordance with applicable U.S. GAAP. Asset retirement obligations are not material to the Company’s consolidated financial position, results of operations or cash flows. The Company reviews its long-lived assets and the related mineral reserves for impairment whenever events or changes in circumstances indicate the carrying amounts of such assets may not be recoverable. If an indication of a potential impairment exists, recoverability of the respective assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate, to the carrying amount, including associated intangible assets, of such operation. If the operation is determined to be unable to recover the carrying amount of its assets, then intangible assets are written down first, followed by the other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. j. Goodwill and Intangible Assets: The Company amortizes its intangible assets deemed to have finite lives on a straight-line basis over their estimated useful lives which, for the Company, range from 4 to 50 years. The Company reviews goodwill and other indefinite-lived intangible assets annually for impairment. In addition, goodwill and other intangible assets are reviewed when an event or change in circumstances indicates the carrying amounts of such assets may not be recoverable. k. Investments: The Company uses the equity method of accounting for equity securities when it has significant influence or when it has more than a minor ownership interest or more than minor influence over an investee’s operations but does not have a controlling financial interest. Initial investments are recorded at cost (including certain transaction costs) and are adjusted by the Company’s share of the investees’ undistributed earnings and losses. The Company may recognize its share of an investee’s earnings on a lag, if an investee’s financial results are not available in a timely manner. Prior to the full acquisition of Produquímica, which was completed on October 3, 2016, the Company’s initial 35% equity interest in Produquímica was accounted for under the equity method of accounting (see Note 3 for more information). As a result of the full acquisition of Produquímica, the Company now also holds a 50% interest in Fermavi Eletroquímica Ltda. (“Fermavi”), which was previously held by Produquímica. Fermavi, which was founded in 1987, is a Brazilian corporation with headquarters in Varginha, Minas Gerais, Brazil, and its operations focus on the production and sale of manganese-based products. The Company’s investment in Fermavi was recorded at its estimated fair value in conjunction with the preliminary purchase price allocation as of the date the Company completed the full acquisition of Produquímica, which was in excess of the book value of net assets acquired. This basis difference was approximately $17 million and $18 million as of December 31, 2017 and 2016, respectively. The portion of the basis differences related to tangible and intangible assets will be amortized over their remaining useful lives, as appropriate. The Company accounts for its investment in Fermavi under the equity method of accounting. l. Other Noncurrent Assets: Other noncurrent assets include certain inventories of spare parts and related inventory, net of reserve, of $11.8 million and $11.4 million at December 31, 2017 and 2016 , respectively, which will be utilized with respect to long-lived assets. The Company sponsors a non-qualified defined contribution plan for certain of its executive officers and key employees as described in Note 8. As of December 31, 2017 and 2016 , investments in marketable securities representing amounts deferred by employees, Company contributions and unrealized gains or losses totaling $2.2 million and $1.8 million , respectively, were included in other noncurrent assets in the Consolidated Balance Sheets. The marketable securities are classified as trading securities and accordingly, gains and losses are recorded as a component of other expense (income), net in the consolidated statements of operations. As of December 31, 2017, the Company has $49.3 million recorded related to tax positions with Canadian and U.S. tax authorities described in Note 7 to the Consolidated Financial Statements. m. Income Taxes: The Company accounts for income taxes using the liability method in accordance with the provisions of U.S. GAAP. Under the liability method, deferred taxes are determined based on the differences between the financial statement and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company’s foreign subsidiaries file separate company returns in their respective jurisdictions. The Company recognizes potential liabilities in accordance with applicable U.S. GAAP for anticipated tax issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Any penalties and interest that are accrued on the Company’s uncertain tax positions are included as a component of income tax expense. In evaluating the Company’s ability to realize deferred tax assets, the Company considers the sources and timing of taxable income, including the reversal of existing temporary differences, the ability to carryback tax attributes to prior periods, qualifying tax-planning strategies, and estimates of future taxable income exclusive of reversing temporary differences. In determining future taxable income, the Company’s assumptions include the amount of pre-tax operating income according to different state, federal and international taxing jurisdictions, the origination of future temporary differences, and the implementation of feasible and prudent tax-planning strategies. If the Company determines that a portion of its deferred tax assets will not be realized, a valuation allowance is recorded in the period that such determination is made. In the future, if the Company determines, based on the existence of sufficient evidence, that more or less of the deferred tax assets are more likely than not to be realized, an adjustment to the valuation allowance will be made in the period such a determination is made. n. Environmental Costs: Environmental costs, other than those of a capital nature, are accrued at the time the exposure becomes known and costs can be reasonably estimated. Costs are accrued based upon management’s estimates of all direct costs. Amounts reserved for environmental matters were not material at December 31, 2017 or 2016 . o. Equity Compensation Plans: The Company has equity compensation plans under the oversight of the Company’s board of directors, whereby stock options, restricted stock units, performance stock units, deferred stock units and shares of common stock are granted to the Company’s employees and directors. See Note 12 for additional discussion. p. Earnings per Share: The Company’s participating securities are accounted for in accordance with guidance related to the computation of earnings per share under the two-class method. The two-class method requires allocating the Company’s net earnings to both common shares and participating securities based upon their rights to receive dividends. Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted-average number of outstanding common shares during the period. Diluted earnings per share reflects the potential dilution that could occur under the more dilutive of either the treasury stock method or the two-class method for calculating the weighted-average number of outstanding common shares. The treasury stock method is calculated assuming unrecognized compensation expense, income tax benefits and proceeds from the potential exercise of employee stock options are used to repurchase common stock. q. Derivatives: The Company is exposed to the impact of fluctuations in foreign exchange and interest rates on its borrowings and fluctuations in the purchase price of natural gas consumed in operations. The Company hedges portions of these risks through the use of derivative agreements. The Company accounts for derivative financial instruments in accordance with applicable U.S. GAAP, which requires companies to record derivative financial instruments as assets or liabilities measured at fair value. Accounting for the changes in the fair value of a derivative depends on its designation and effectiveness. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. For qualifying hedges, the effective portion of the change in fair value is recognized through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the statements of operations. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. The Company formally documents, designates and assesses the effectiveness of transactions that receive hedge accounting treatment initially and on an ongoing basis. r. Concentration of Credit Risk: The Company sells its salt and magnesium chloride products to various governmental agencies, manufacturers, distributors and retailers primarily in the Midwestern U.S. and throughout Canada and the U.K. The Company’s plant nutrition products are sold across the Western Hemisphere and globally. No single customer or group of affiliated customers accounted for more than 10% of the Company’s sales in any year during the three year period ended December 31, 2017 , or more than 10% of accounts receivable at December 31, 2017 or 2016 . s. Recent Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board (the “FASB”) issued guidance to address the income tax accounting treatment of the tax effects within other comprehensive income due to the enactment of the Tax Cuts and Jobs Act (the “Act”). This guidance allows entities to elect to reclassify the tax effects of the change in the income tax rates from other comprehensive income to retained earnings. The guidance is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is still evaluating the impact of adopting this guidance. In August 2016, the FASB issued guidance to clarify how certain cash receipts and payments should be presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In June 2016, the FASB issued guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, requires a modified retrospective transition method and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted this guidance in the first quarter of 2017 on a prospective basis, and prior periods have not been adjusted. The Company elected the option available under the guidance to continue to estimate the effect of forfeitures in the calculation of share-based payment expense. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance which requires lessees to recognize on their balance sheet a right-of-use asset which represents a lessee’s right to use the underlying asset. Under this guidance, an entity must also recognize a lease liability which represents a lessee’s obligation to make lease payments for the right to use the asset. In addition, the standard requires expanded qualitative and quantitative disclosures. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition method. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In July 2015, the FASB issued guidance that requires entities to measure inventory within the scope of the standard at the lower of cost or net realizable value. “Net realizable value” is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company adopted this guidance in the first quarter of 2017. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. The new revenue recognition model supersedes existing revenue recognition guidance and requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration an entity expects to receive in exchange for those goods or services. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and early adoption is permitted. The guidance permits the use of either a full or modified retrospective transition method. The Company adopted the new revenue recognition guidance effective January 1, 2018 using the modified retrospective transition method, which requires the cumulative effect of adoption, if any, to be recognized as an adjustment to opening retained earnings in the period of adoption. The Company did not identify any material differences in the amount and timing of revenue recognition for its revenue streams. Substantially all of the Company’s revenue will continue to be recognized at a point-in-time when control of the goods transfers to the customer. The adoption of this guidance will result in expanded disclosures regarding revenue in the Company’s financial statement beginning with the first quarter of 2018. These expanded disclosures will include quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION Background and Financing On December 16, 2015, Compass Minerals do Brasil Ltda., a wholly-owned subsidiary of the Company (“Compass Minerals Brazil”), entered into (i) a subscription agreement and other covenants (as amended, the “Subscription Agreement”) with certain Produquímica shareholders and Produquímica and (ii) a share purchase and sale agreement and other covenants (the “Purchase Agreement”) with certain Produquímica shareholders and Produquímica. Pursuant to the Subscription Agreement and the Purchase Agreement, Compass Minerals Brazil acquired 35% of the issued and outstanding capital stock of Produquímica on December 23, 2015, for R$452.4 million Brazilian reais (“R” or “BRL”), or $114.1 million U.S. dollars at closing, and paid additional consideration of $4.7 million in the second quarter of 2016 related to Produquímica’s 2015 financial performance. The Subscription Agreement also contained a put right (the “Put”), allowing the Produquímica shareholders to sell the remainder of their interests in Produquímica to Compass Minerals Brazil. On August 12, 2016, Produquímica shareholders notified Compass Minerals Brazil of their exercise of the Put. On October 3, 2016, the Company acquired the remaining 65% of the issued and outstanding capital stock of Produquímica. The Company entered into a new $100.0 million term loan tranche in the fourth quarter of 2015 to fund the acquisition of the 35% of Produquímica’s equity. In September 2016, the Company entered into a new $450.0 million term loan tranche to fund the acquisition of the remaining 65% of Produquímica’s equity. See Note 9 for more information regarding these financings. Based in São Paulo, Brazil, Produquímica operates two primary businesses – agricultural productivity and chemical solutions. The agricultural productivity division manufactures and distributes a broad offering of specialty plant nutrition solution-based products. These include micronutrients, controlled release fertilizers and other specialty supplements that are used in direct soil and foliar applications, as well as through irrigation systems and for seed treatment. Many of these products are developed through Produquímica’s research and development capabilities. Produquímica also manufactures and markets specialty chemicals used primarily in the industrial chemical and water treatment industries in Brazil. The acquisition broadens the Company’s geographic scope of operations and expands its specialty plant nutrition portfolio while reducing the Company’s dependence on winter weather conditions. Purchase Price Allocation The Company accounted for the Produquímica acquisition as a business combination in accordance with U.S. GAAP. The accounting guidance for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired entity as well as other valuation assumptions and an allocation to the net assets acquired. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s best estimates. As of September 30, 2017 , the purchase price allocation was finalized. A summary of the acquisition-date fair value of the consideration transferred is presented in the table below: Fair Value of Consideration Transferred (in millions) October 3, 2016 Cash paid at closing $ 317.1 Additional cash due at closing 20.6 Fair value of contingent consideration 31.4 Fair value of 35% equity investment 178.7 Total $ 547.8 The calculation of the purchase price at closing was based in part on an estimate of full-year 2016 operating results of Produquímica. As of the acquisition closing date, some of the periods included in the 2016 operating results of Produquímica had not ended and actual results were not known. The portion of the purchase price which was based on management’s estimate of results relating to periods which occurred after the closing date was classified as contingent consideration. There were no thresholds or tiers in the payment structure, and management used an income approach to estimate the acquisition date fair value of the contingent consideration. As of the closing date, the Company had estimated the fair value of contingent consideration to be $31.4 million . During the first quarter of 2017, the purchase price was adjusted based on the final full-year 2016 operating results of Produquímica, and a final payment was made to the Produquímica shareholders. The difference between the estimated closing date fair value of the contingent consideration and the final amount paid resulted in the recognition of a gain of $1.9 million in the first quarter of 2017, which was included as a component of operating earnings in the Company’s Plant Nutrition South America segment. Prior to the acquisition closing date, the Company accounted for its 35% interest in Produquímica as an equity method investment. The acquisition-date fair value of the previously held equity investment was $178.7 million and is included in the consideration transferred. To measure the acquisition closing date fair value of the equity interest the Company utilized a market-based approach which relied on Level 3 inputs (see Note 13 for a discussion of the levels in the fair value hierarchy). The Company recognized a $59.3 million non-cash gain during the fourth quarter of 2016 as a result of remeasuring its prior equity interest in Produquímica held before the business combination. Under the acquisition method of accounting, the total purchase price is allocated on a preliminary basis to Produquímica’s assets and liabilities based upon their estimated fair values as of the closing date of the acquisition. During the first nine months of 2017, the Company adjusted the preliminary purchase price allocation based on additional information obtained regarding facts and circumstances which existed as of the acquisition date. These adjustments resulted in a decrease of $3.6 million to goodwill, a decrease of $4.4 million to other noncurrent liabilities and an increase of $0.8 million to net deferred income taxes. Additionally, during the third quarter of 2017 in connection with finalizing the accounting for the acquisition, the Company recorded an adjustment increasing depreciation expense by $1.9 million . This adjustment resulted from finalizing the Company’s estimate of the useful lives of acquired tangible assets. Based upon the final purchase price and the updated valuation, the final purchase price allocation is presented in the table below: Recognized amounts of identifiable assets acquired and liabilities assumed (in millions): Purchase Price Allocation Cash and cash equivalents $ 73.8 Accounts receivable 89.4 Inventories 77.1 Other current assets 13.7 Property, plant and equipment 189.4 Intangible assets 81.2 Investment in equity method investee 24.5 Other noncurrent assets 6.9 Accounts payable (27.1 ) Accrued expenses (40.3 ) Current portion of long-term debt (129.6 ) Other current liabilities (14.0 ) Long-term debt, net of current portion (62.0 ) Deferred income taxes, net (66.0 ) Other noncurrent liabilities (21.9 ) Total identifiable net assets 195.1 Goodwill 352.7 Total fair value of business combination $ 547.8 The total purchase price in excess of the net identifiable assets has been recognized as goodwill in the amount of $352.7 million and has been assigned to the Company’s Plant Nutrition South America segment. The goodwill recognized is attributable primarily to expected synergies with the Company’s existing plant nutrition business and the assembled workforce of Produquímica. The future deductibility of the goodwill for income tax purposes is uncertain at this time. The Company determined that the book value of the accounts receivables included in the purchase price allocation approximates their fair value due to their short-term nature. The gross contractual amounts of the receivables exceeded their fair value by the amount of an allowance for doubtful accounts of approximately $8 million . In connection with the acquisition, the Company acquired identifiable intangible assets which consisted principally of trade names, developed technologies and customer relationships. The fair values were determined using Level 3 inputs (see Note 13 for a discussion of the levels in the fair value hierarchy). The fair values of the identifiable intangible assets were estimated using an income approach method. The estimated fair values and weighted average amortization period of the identifiable intangible assets are presented in the table below: Estimated Fair Value (in millions) Weighted-Average Amortization Period (in years) Trade names $ 36.9 11.0 Developed technology 37.5 5.3 Customer relationships 6.8 13.5 Total identifiable intangible assets $ 81.2 8.6 Impact on Operating Results During the year ended December 31, 2016, Produquímica contributed revenues of $113.5 million and net income of $3.6 million since the acquisition date of October 3, 2016. The following table presents the combined unaudited pro forma results for the full years ended December 31, 2016 and 2015. The pro forma financial information combines the historical results of operations for Produquímica and Compass Minerals as though the acquisition occurred on January 1, 2015. The pro forma information does not purport to represent the actual results of operations that Produquímica and Compass Minerals would have achieved had the companies been combined during the periods presented nor is the information intended to project the future results of operations. Certain adjustments to Produquímica’s historical results have been made to conform to U.S. GAAP, and amounts have been translated to U.S. dollars. Twelve Months Ended, Unaudited Combined Pro Forma Results of Operations (in millions) December 31, 2016 December 31, 2015 Revenues $ 1,381.3 $ 1,421.3 Net earnings $ 108.1 $ 128.0 Significant adjustments to the pro forma information above include: • Adjustments to exclude non-recurring direct incremental costs of the acquisition; • Adjustments to expenses relating to the financing transactions described above; • Adjustments to reflect incremental amortization and depreciation from the preliminary allocation of the purchase price; • Adjustments to reflect certain income tax effects of the acquisition; • Adjustments to remove net loss related to the previously held 35% equity interest in Produquímica; and • Adjustment to remove the gain from the remeasurement of the previously held 35% equity interest in Produquímica The Company incurred acquisition costs of $1.8 million that were expensed during the year ended December 31, 2016. These costs are included in the “Selling, general and administrative expenses” line item in the Consolidated Statement of Operations. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following at December 31 (in millions): 2017 2016 Finished goods $ 208.4 $ 206.1 Raw materials and supplies 81.5 74.5 Total inventories $ 289.9 $ 280.6 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consists of the following at December 31 (in millions): 2017 2016 Land, buildings and structures and leasehold improvements $ 552.5 $ 480.1 Machinery and equipment 942.3 848.2 Office furniture and equipment 53.1 28.3 Mineral interests 173.1 168.5 Construction in progress 213.4 243.6 1,934.4 1,768.7 Less accumulated depreciation and depletion (796.3 ) (676.4 ) Property, plant and equipment, net $ 1,138.1 $ 1,092.3 The cost of leased property, plant and equipment under capital leases included above was $7.2 million and $7.3 million as of December 31, 2017 and 2016, respectively, and accumulated depreciation was $2.6 million and $2.2 million as of December 31, 2017 and 2016, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The asset value and accumulated amortization as of December 31, 2017 and 2016 for the finite-lived intangibles assets are as follows (in millions): Supply Agreement SOP Production Rights Customer/Distributor Relationships Lease Rights Trade Names Developed Technologies Patents Other Total December 31, 2017 Gross intangible asset $ 28.9 $ 24.3 $ 14.1 $ 1.8 $ 43.3 $ 39.3 $ 16.5 $ 1.4 $ 169.6 Accumulated amortization (4.0 ) (13.7 ) (4.3 ) (0.4 ) (4.8 ) (11.0 ) (5.5 ) (0.6 ) (44.3 ) Net intangible assets $ 24.9 $ 10.6 $ 9.8 $ 1.4 $ 38.5 $ 28.3 $ 11.0 $ 0.8 $ 125.3 Supply Agreement SOP Production Rights Customer/Distributor Relationships Lease Rights Trade Names Developed Technologies Patents Other Total December 31, 2016 Gross intangible asset $ 27.0 $ 24.3 $ 13.8 $ 1.7 $ 43.6 $ 38.9 $ 15.4 $ 2.2 $ 166.9 Accumulated amortization (3.2 ) (12.7 ) (3.0 ) (0.3 ) (0.8 ) (3.2 ) (3.7 ) (0.7 ) (27.6 ) Net intangible assets $ 23.8 $ 11.6 $ 10.8 $ 1.4 $ 42.8 $ 35.7 $ 11.7 $ 1.5 $ 139.3 The estimated lives of the Company’s finite-lived intangible assets are as follows: Intangible asset Estimated Lives Supply agreement 50 years SOP production rights 25 years Patents 10-20 years Developed technology 4-7 years Lease rights 25 years Customer and distributor relationships 10-14 years Trademarks 10 years Noncompete agreements 5 years Trade names 10-11 years None of the finite-lived intangible assets have a residual value. Aggregate amortization expense was $16.2 million in 2017 , $7.0 million in 2016 and $4.4 million in 2015 and is projected to be between $10 million and $16 million per year over the next five years. The weighted average life for the Company’s finite-lived intangibles is 19 years. In addition, the Company had water rights of $17.7 million as of December 31, 2017 and 2016, respectively, and trade names of $0.6 million as of December 31, 2017 and 2016, respectively, which have indefinite lives. In the fourth quarter of 2016, the Company recorded a $3.1 million impairment of its Wolf Trax trade name acquired in 2014 as part of its annual impairment assessment. The estimated fair value as of October 1, 2016 of the trade name was calculated using Level 3 inputs and an income-based valuation approach. The impairment loss was recorded in its Plant Nutrition North America segment in selling, general and administrative expenses in the Consolidated Statements of Operations. The Company has goodwill of $405.0 million and $412.2 million as of December 31, 2017 and 2016, respectively, in its Consolidated Balance Sheets. The Company has recorded goodwill of $57.3 million and $53.6 million as of December 31, 2017 and 2016, respectively, in its Plant Nutrition North America segment. Additionally, the Company has recorded goodwill of $341.6 million and $352.8 million as of December 31, 2017 and 2016, respectively, in its Plant Nutrition South America segment. The remaining amounts in both periods were immaterial and recorded in its corporate and other and Salt segment. The increase in the balance of goodwill from December 31, 2016 was due to changes in foreign currency exchange rates. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company files tax returns in the U.S., Canada, Brazil and the U.K. at the federal and local taxing jurisdictional levels. The Company’s U.S. federal tax returns for tax years 2012 forward remain open and subject to examination. Generally, the Company’s state, local and foreign tax returns for years as early as 2002 forward remain open and subject to examination, depending on the jurisdiction. Tax Cuts and Jobs Act On December 22, 2017, the U.S. enacted the Act (which is commonly referred to as “U.S. tax reform”). The Act significantly changes U.S. corporate income tax laws by reducing the U.S. corporate income tax rate to 21% beginning in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings. In connection with the Act, the Company recorded a net charge of $46.8 million during the fourth quarter of 2017. This amount is included in income tax expense in the Company’s consolidated statements of operations and consists of $55.2 million related to the one-time mandatory tax on unremitted foreign earnings, offset by a $8.4 million benefit related to the remeasurement of the Company’s deferred tax liabilities at the new income tax rate. The Company believes the $46.8 million net charge represents a reasonable estimate of the impact on the income effects of the Act. However, this amount is provisional and additional work is necessary to do a more detailed analysis of historical foreign earnings as well as any potential corresponding adjustments. Any adjustments to these provisional amounts will be reported as a component of income tax expense in the period in which any adjustment is determined, which the Company expects will be no later than the fourth quarter of 2018. The following table summarizes the Company’s income tax provision related to earnings for the years ended December 31 (in millions): 2017 2016 2015 Current: Federal $ 0.5 $ 27.6 $ 31.7 State (9.8 ) 6.7 7.3 Foreign 85.8 11.6 16.4 Total current 76.5 45.9 55.4 Deferred: Federal (4.4 ) (2.8 ) (0.2 ) State (0.5 ) (0.7 ) — Foreign (11.6 ) (7.8 ) 0.1 Total deferred (16.5 ) (11.3 ) (0.1 ) Total provision for income taxes $ 60.0 $ 34.6 $ 55.3 The following table summarizes components of earnings before taxes and shows the tax effects of significant adjustments from the expected tax expense computed at the federal statutory rate for the years ended December 31 (in millions): 2017 2016 2015 Domestic (loss) income $ (41.2 ) $ 123.6 $ 170.6 Foreign income 143.9 73.7 43.9 Earnings before income taxes $ 102.7 $ 197.3 $ 214.5 Computed tax at the U.S. federal statutory rate of 32.7% in 2017 and 35% in 2016 and 2015 33.6 69.1 75.1 Foreign income rate differential, mining, and withholding taxes, net of U.S. federal deduction 1.6 (1.7 ) (1.2 ) Percentage depletion in excess of basis (6.4 ) (8.6 ) (11.2 ) Other domestic tax reserves, net of reversals — — (4.5 ) Domestic manufacturers deduction — (1.4 ) (2.4 ) State income taxes, net of federal income tax benefit 0.8 3.9 5.1 Change in valuation allowance on deferred tax asset (23.9 ) (1.4 ) — Interest expense recognition differences (5.6 ) (5.9 ) (6.1 ) Nontaxable remeasurement gain — (20.2 ) — Tax Cuts and Jobs Act of 2017 46.8 — — Transfer pricing settlement with taxing authorities 13.8 — — Other, net (0.7 ) 0.8 0.5 Provision for income taxes $ 60.0 $ 34.6 $ 55.3 Effective tax rate 58 % 18 % 26 % Under U.S. GAAP, deferred tax assets and liabilities are recognized for the estimated future tax effects, based on enacted tax law, of temporary differences between the values of assets and liabilities recorded for financial reporting and tax purposes, and of net operating losses and other carryforwards. The significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in millions): 2017 2016 Deferred tax assets: Reluz Nordeste Indústria e Comércio Ltda net operating loss carryforwards $ 0.8 $ 1.2 Produquímica Indústria e Comércio S.A. net operating loss carryforwards 12.9 — Other, net 8.0 0.3 Total deferred tax assets before valuation allowance 21.7 1.5 Valuation allowance (9.0 ) — Total noncurrent deferred tax assets: $ 12.7 $ 1.5 Deferred tax assets to be netted with deferred tax liabilities: Net operating loss carryforwards $ 2.3 $ 17.8 Stock-based compensation 2.7 4.0 Derivatives — 8.7 Other, net 9.3 23.9 Total deferred tax assets before valuation allowance 14.3 54.4 Valuation allowance (1.2 ) (33.6 ) Total deferred tax assets to be netted with deferred tax liabilities 13.1 20.8 Deferred tax liabilities: Property, plant and equipment 98.1 101.4 Intangible asset 42.0 49.0 Other, net — 1.2 Total deferred tax liabilities 140.1 151.6 Net deferred tax liabilities $ 127.0 $ 130.8 At December 31, 2017 , the Company had $46.1 million of gross foreign federal net operating loss (“NOL”) carryforwards that have no expiration date, $5.7 million of gross foreign federal NOL carryforwards which expire in 2033 and $0.7 million of net operating tax-effected state NOL carryforwards which expire in 2033 . The Company has recorded a valuation allowance for a portion of its deferred tax asset relating to various tax attributes that it does not believe are, more likely than not to be realized. During the third quarter of 2017, the Company determined it is more likely than not that a portion of its Brazilian deferred tax assets acquired in connection with the acquisition of Produquímica will be used to reduce taxable income. As a result, the Company released approximately $25 million of valuation allowances during the year ending December 31, 2017. As of December 31, 2017 and 2016 , the Company’s valuation allowance was $10.2 million and $33.6 million , respectively. In the future, if the Company determines, based on existence of sufficient evidence, that it should realize more or less of its deferred tax assets, an adjustment to the valuation allowance will be made in the period such a determination is made. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in multiple jurisdictions. The Company recognizes potential liabilities for unrecognized tax benefits in the U.S. and other tax jurisdictions in accordance with applicable U.S. GAAP, which requires uncertain tax positions to be recognized only if they are more likely than not to be upheld based on their technical merits. The measurement of the uncertain tax position is based on the largest benefit amount that is more likely than not (determined on a cumulative probability basis) to be realized upon settlement of the matter. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense may result. The Company’s uncertain tax positions primarily relate to transactions and deductions involving U.S., Canadian and Brazilian operations. If favorably resolved, $17.4 million of unrecognized tax benefits would decrease the Company’s effective tax rate. Management believes that it is reasonably possible that unrecognized tax benefits will decrease by approximately $0.3 million in the next twelve months largely as a result of tax returns being closed to future audits. In the fourth quarter of 2017 , the Company’s income tax expense included a benefit of approximately $0.4 million related to the release of uncertain tax positions due to the expiration of statutes of limitations. The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions): 2017 2016 2015 Unrecognized tax benefits: Balance at January 1 $ 20.7 $ 18.3 $ 21.8 Additions resulting from current year tax positions 1.3 0.1 1.6 Additions relating to tax positions taken in prior years 51.7 0.5 0.8 Additions relating to current year acquisitions — 2.4 — Reductions due to cash payments — — (0.8 ) Reductions due to settlements (4.5 ) — — Reductions relating to tax positions taken in prior years (1.4 ) — (2.4 ) Reductions due to expiration of tax years (0.4 ) (0.6 ) (2.7 ) Balance at December 31 $ 67.4 $ 20.7 $ 18.3 The Company accrues interest and penalties related to its uncertain tax positions within its tax provision. During the years ended December 31, 2017 , 2016 and 2015 , the Company accrued interest and penalties, net of reversals, of $11.9 million , $0.9 million and $0.2 million , respectively. As of December 31, 2017 and 2016 , accrued interest and penalties included in the Consolidated Balance Sheets totaled $18.0 million and $6.3 million , respectively. The Company considers all non-U.S. earnings to be indefinitely reinvested outside of the U.S. to the extent these earnings are not subject to U.S. income tax under an anti-deferral tax regime. As of December 31, 2017, all non-U.S. undistributed earnings were subject to a one-time mandatory tax in the U.S. due to the Act with the exception of $59.3 million of outside basis differences related to Brazilian entities. The Company is currently analyzing its global working capital requirements and the potential tax liabilities that would be incurred if its non-U.S. subsidiaries distribute cash to CMI, including local country withholding taxes. The Company expects to complete its analysis of the accounting guidance related to the Act and its evaluation of the impacts of the Act in the fourth quarter of 2018. Canadian provincial tax authorities have challenged tax positions claimed by one of the Company’s Canadian subsidiaries and have issued tax reassessments for years 2002 - 2012 . The reassessments are a result of ongoing audits and total approximately $106 million , including interest through December 31, 2017 . The Company disputes these reassessments and plans to continue to work with the appropriate authorities in Canada to resolve the dispute. There is a reasonable possibility that the ultimate resolution of this dispute, and any related disputes for other open tax years, may be materially higher or lower than the amounts the Company has reserved for such disputes. In connection with this dispute, local regulations require the Company to post security with the tax authority until the dispute is resolved. The Company has posted collateral in the form of a $66.9 million performance bond and has paid $39.1 million (most of which is recorded in other assets in the Consolidated Balance Sheets), which is necessary to proceed with future appeals or litigation. The Company expects that it will be required by local regulations to provide security for additional interest on the above unresolved disputed amounts and for any future reassessments issued by these Canadian tax authorities in the form of cash, letters of credit, performance bonds, asset liens or other arrangements agreeable with the tax authorities until the disputes are resolved. The Company expects that the ultimate outcome of these matters will not have a material impact on its results of operations or financial condition. However, the Company can provide no assurance as to the ultimate outcome of these matters and the impact could be material if they are not resolved in the Company’s favor. As of December 31, 2017 , the Company believes it has adequately reserved for these reassessments. Additionally, the Company has other uncertain tax positions as well as assessments and disputed positions with taxing authorities in its various jurisdictions. Settlements Canadian federal and provincial taxing authorities had reassessed the Company for years 2004 - 2006 , which had been previously settled by agreement among the Company, the Canada Revenue Agency (“CRA”) and the U.S. Internal Revenue Service (“IRS”). The Company sought to enforce the agreement, which provided the basis upon which the returns were previously filed and settled. In July 2016, a trial commenced in the Tax Court of Canada with respect to the Canadian federal tax issues for these matters, and in March 2017, the Tax Court of Canada ruled in favor of the Company. The decision of the Tax Court of Canada was not appealed by the CRA. As a result, the reassessed Canadian tax, penalties and interest for the Company for years 2004-2006 of approximately $94.7 million are effectively resolved. The Company is in the process of having certain posted collateral returned in connection with the resolution of the dispute. In the fourth quarter of 2017, the Company, the CRA and the IRS reached a settlement agreement on transfer pricing issues for its 2007-2012 tax years. As a result of this settlement, the Company recognized $13.8 million of tax expense in its 2017 consolidated statements of operations related to the Company’s Canadian tax positions for the years 2007-2016. The agreement will result in intercompany cash payments from the Company’s U.S. subsidiary to its Canadian subsidiary of $85.7 million and tax payments to Canadian taxing authorities of $23.4 million with a corresponding tax refund due from U.S. taxing authorities of $21.8 million . The timing of the refund is expected to lag the payment to the Canadian tax authorities by a year or more. Additionally, the reassessed Canadian tax, penalties and interest for the Company for years 2007 and 2008 of approximately $34.2 million are effectively resolved. |
PENSION PLANS AND OTHER BENEFIT
PENSION PLANS AND OTHER BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER BENEFITS | PENSION PLANS AND OTHER BENEFITS The Company has a defined benefit pension plan for certain of its U.K. employees. Benefits of this pension plan are based on a combination of years of service and compensation levels. This plan was closed to new participants in 1992 . Beginning December 1, 2008 , future benefits ceased to accrue for the remaining active employee participants in the pension plan concurrent with the establishment of a defined contribution plan for these employees. In addition, the Company has a defined benefit plan with certain Produquímica employees. The pension assets, obligations and net pension expense related to this plan are immaterial. The Company’s U.K. pension fund investment strategy is to maximize return on investments while minimizing risk. This is accomplished by investing in high-grade equity and debt securities. The Company’s portfolio guidelines recommend that equity securities comprise approximately 75% of the total portfolio and that approximately 25% be invested in debt securities. The Company’s portfolio has shifted to a smaller proportion of equity funds due to the increased volatility of these funds over the last several years, and it is researching strategies that will reduce volatility, while also maximizing returns. Investment strategies and portfolio allocations are based on the plan’s benefit obligations and its funded or underfunded status, expected returns, and the Company’s portfolio guidelines and are monitored on a regular basis. The weighted-average asset allocations by asset category are as follows: Plan Assets at December 31, Asset Category 2017 2016 Cash and cash equivalents 3 % 3 % Blended funds 32 % 30 % Bond funds 45 % 48 % Insurance policy 20 % 19 % Total 100 % 100 % The fair value of the Company’s U.K. pension plan assets at December 31, 2017 and 2016 by asset category (see Note 13 for a discussion regarding fair value measurements) are as follows (in millions): Market Value at December 31, 2017 Level One Level Two Level Three Asset category: Cash and cash equivalents (a) $ 2.2 $ 2.2 $ — $ — Blended funds (b) 22.3 — 22.3 — Bond funds (c) : Treasuries 31.2 — 31.2 — Insurance policy (d) 13.4 — — 13.4 Total Pension Assets $ 69.1 $ 2.2 $ 53.5 $ 13.4 Market Value at December 31, 2016 Level One Level Two Level Three Asset category: Cash and cash equivalents (a) $ 2.0 $ 2.0 $ — $ — Blended funds (b) 18.9 — 18.9 — Bond funds (c) : Treasuries 29.5 — 29.5 — Insurance policy (d) 11.9 — — 11.9 Total Pension Assets $ 62.3 $ 2.0 $ 48.4 $ 11.9 (a) The fair value of cash and cash equivalents is its carrying value. (b) The Company is invested in a diversified growth fund. The diversified growth fund is valued at the last traded or official close for the underlying equities and bid or mid for the underlying fixed income securities depending on the portfolio benchmark. Where representative prices are unavailable, underlying fixed income investments are valued based on other observable market-based inputs. (c) This category includes investments in investment-grade fixed-income instruments and funds linked to U.K. treasury notes. The funds are valued using the bid amounts for each fund. All of the Company’s bond fund pension assets are invested in U.K.-linked treasuries as of December 31, 2017 and 2016. (d) The insurance policy has been written by an insurance company with an A+ rating from Standard and Poors. The policy derives its value primarily from its underlying investments which consists of separate funds also managed by the underwriter. The policy’s holdings consist primarily of a unit trust fund, which is valued based on its underlying holdings of equities, fixed income securities, cash and derivative instruments. Those underlying investments are valued at bid price on the last business day of the period when available. Other investments use the last available authorized price of the last business day of the period. Unquoted investments are valued based upon the fund manager’s opinion of fair value based primarily on other observable market-based inputs. Open positions in derivative contracts or foreign currency transactions are included at their mark to market value. Money market instruments are valued based upon amortized cost. Term deposits are valued at their nominal value. The changes in Level 3 U.K. pension plan assets for the year ended December 31, 2017 and 2016 were as follows (in millions): Value of Insurance Policy Beginning balance as of January 1, 2016 $ 14.6 Unrealized loss (0.4 ) Currency fluctuation adjustment (2.3 ) Ending balance as of December 31, 2016 $ 11.9 Unrealized gain 0.3 Currency fluctuation adjustment 1.2 Ending balance as of December 31, 2017 $ 13.4 As of December 31, 2017 and 2016 , amounts recognized in accumulated other comprehensive income, net of tax, consisted of actuarial net losses of $3.9 million (including $5.4 million of accumulated loss less prior service cost of $1.5 million ) and $3.7 million (including $5.1 million of accumulated loss less prior service cost of $1.4 million ), respectively. During 2017 , the amounts recognized in accumulated other comprehensive income (loss), net of tax, consisted of the amortization of the loss of $0.3 million , amortization of prior service cost of $(0.1) million and foreign exchange of $(0.5) million . During 2016 , the amounts recognized in accumulated other comprehensive income (loss), net of tax, consisted of actuarial net losses of $(1.0) million , amortization of loss of $0.3 million , amortization of prior service cost of $(0.1) million and foreign exchange of $0.9 million . During 2015 , the amounts recognized in accumulated other comprehensive income (loss), net of tax, consisted of actuarial net losses of $3.7 million , amortization of loss of $1.2 million , amortization of prior service cost of $(0.1) million and foreign exchange of $0.4 million . The Company expects to recognize approximately $0.2 million ( $0.3 million of amortization of loss less $0.1 million of prior service cost) of losses from accumulated other comprehensive income as a component of net periodic pension cost in 2018 . Total net periodic pension cost (benefit) in 2018 is expected to be $(0.7) million . The assumptions used in determining pension information for the plans for the years ended December 31 were as follows: 2017 2016 2015 Discount rate 2.80 % 3.80 % 3.40 % Expected return on plan assets 3.70 % 4.50 % 4.30 % The overall expected long-term rate of return on plan assets is a weighted-average expectation based on the fair value of targeted and expected portfolio composition. The Company considers historical performance and current benchmarks to arrive at expected long-term rates of return in each asset category. The Company determines its discount rate based on a forward yield curve for a portfolio of high-credit-quality bonds with expected cash flows and an average duration closely matching the expected benefit payments under the plan. The Company’s funding policy is to make the minimum annual contributions required by applicable regulations or agreements with the plan administrator. Management expects total contributions during 2018 will be approximately $0.7 million . In addition, the Company may periodically make contributions to the plan based upon the underfunded status of the plan or other transactions, which warrant incremental contributions in the judgment of management. The U.K. pension plan includes a provision whereby supplemental benefits may be available to participants under certain circumstances after case review and approval by the plan trustees. Because instances of this type of benefit have historically been infrequent, the development of the projected benefit obligation and net periodic pension cost has not provided for any future supplemental benefits. If additional benefits are approved by the trustees, it is likely that an additional contribution would be required and the amount of incremental benefits would be expensed by the Company. The Company expects to pay the following benefit payments (in millions): Calendar Year Future Expected Benefit Payments 2018 $ 2.8 2019 2.9 2020 3.0 2021 3.1 2022 3.1 2023 – 2027 17.3 The following table sets forth pension obligations and plan assets for the Company’s defined benefit plan, as of December 31 (in millions): 2017 2016 Change in benefit obligation: Benefit obligation as of January 1 $ 61.7 $ 66.9 Interest cost 1.8 2.3 Actuarial loss 0.2 7.3 Benefits paid (2.6 ) (3.4 ) Currency fluctuation adjustment 5.9 (11.4 ) Benefit obligation as of December 31 67.0 61.7 Change in plan assets: Fair value as of January 1 62.3 66.9 Actual return 2.7 8.8 Company contributions 0.8 1.4 Currency fluctuation adjustment 5.9 (11.4 ) Benefits paid (2.6 ) (3.4 ) Fair value of plan assets as of December 31 69.1 62.3 Overfunded status of the plan $ 2.1 $ 0.6 The Company’s defined benefit plan was overfunded as of December 31, 2017 and 2016 and accordingly, $2.1 million and $0.6 million , respectively, has been recorded as a noncurrent asset in the Consolidated Balance Sheets. The accumulated benefit obligation for the defined benefit pension plan was $67.0 million and $61.7 million as of December 31, 2017 and 2016 , respectively. The plan assets were in excess of the accumulated benefit obligation as of December 31, 2017 and 2016. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of retirement. Since all employees are vested, the accumulated benefit obligation and the vested benefit obligation are the same amount. The Company uses a straight-line methodology of amortization subject to a corridor based upon the higher of the fair value of assets and the pension benefit obligation over a five -year period. The components of net pension expense were as follows for the years ended December 31 (in millions): 2017 2016 2015 Interest cost on projected benefit obligation $ 1.8 $ 2.3 $ 2.5 Prior service cost (0.1 ) (0.1 ) (0.1 ) Expected return on plan assets (2.4 ) (2.8 ) (2.9 ) Net amortization 0.4 0.4 1.5 Net pension (benefit) expense $ (0.3 ) $ (0.2 ) $ 1.0 The Company has defined contribution and pre-tax savings plans (the “Savings Plans”) for certain of its employees. Under each of the Savings Plans, participants are permitted to defer a portion of their compensation. Company matching contributions to the Savings Plans are based on a percentage of employee contributions. Additionally, certain of the Savings Plans have a profit sharing feature for salaried and non-union hourly employees. The Company contribution to the profit-sharing feature is discretionary and based on the Company’s financial performance and other factors. Expense attributable to all Savings Plans was $13.1 million , $10.9 million and $8.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Savings Plans include a non-qualified plan for executive officers and other key employees who are limited in their ability to participate in qualified plans due to existing regulations. These employees are allowed to defer a portion of their compensation, upon which they will be entitled to receive Company contributions despite the limitations imposed by current U.S. regulations for qualified plans were not in place. The Company’s contributions include matching contributions based on a percentage of the employee’s deferred salary, discretionary profit sharing contributions and any investment income (loss) that would have been credited to their account had the contributions been made according to employee-designated investment specifications. Although not required to do so, the Company invests amounts equal to the salary deferrals, the corresponding Company match and discretionary profit sharing amounts according to the employee-designated investment specifications. As of December 31, 2017 and 2016 , investments in marketable securities totaling $2.2 million and $1.8 million , respectively, were included in other noncurrent assets with a corresponding deferred compensation liability included in other noncurrent liabilities in the Consolidated Balance Sheets. Compensation expense recorded for this plan was immaterial for each of the years ended December 31, 2017 , 2016 and 2015 , including amounts attributable to investment income, and was included in other, net in the Consolidated Statements of Operations. |
LONG TERM DEBT
LONG TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT | LONG TERM DEBT Third-party long-term debt consists of the following at December 31 (in millions): 2017 2016 Term Loans due July 2021 $ 837.4 $ 845.9 Revolving Credit Facility due July 2021 168.9 105.4 4.875% Senior Notes due July 2024 250.0 250.0 Banco Bradesco Loan due February 2017 — 13.2 Banco Votorantim Loan due April 2017 — 12.4 Banco Bradesco Loan due July 2017 — 4.8 Scotiabank Loan due August 2017 — 20.2 Banco Itaú Loans due September 2017 — 15.1 Scotiabank Loan due September 2017 — 15.1 Banco Votorantim Loan due September 2017 — 0.8 Banco Bradesco Loan due October 2017 — 16.8 Rabobank Loan due November 2017 — 22.6 Rabobank Loan due November 2019 21.1 — Banco Itaú Loans due May 2019 to April 2020 1.9 3.1 Financiadora de Estudos e Projetos Loan due November 2023 13.1 7.4 Banco do Brasil Loan due February 2018 0.2 — Banco Santander Loan due September 2019 19.6 — Banco Santander Loan due November 2019 24.1 — Banco Itaú Loan due March 2019 12.4 — Banco Scotiabank Loan due September 2019 20.5 — 1,369.2 1,332.8 Less unamortized debt issuance costs (6.7 ) (7.8 ) Total debt 1,362.5 1,325.0 Less current portion (32.1 ) (130.2 ) Long-term debt $ 1,330.4 $ 1,194.8 The Company’s credit agreement consists of two senior secured term loans and a senior secured revolving credit facility which mature July 1, 2021. Interest on the Company’s outstanding credit agreement borrowings is variable based on either the LIBOR or a base rate (defined as the greater of a specified U.S. or Canadian prime lending rate or the federal funds effective rate, increased by 0.5% ) plus a margin, which is dependent upon the Company’s leverage ratio and the type of term loan borrowing. As of December 31, 2017 , the weighted average interest rate was 3.4% on all borrowings outstanding under the credit agreement. The outstanding term loans are payable in quarterly installments of interest and principal and can be prepaid at any time without penalty. The credit agreement requires the Company to maintain certain financial ratios, including a minimum interest coverage ratio and a maximum total leverage ratio. In September 2017, the Company entered into an amendment to its credit agreement, which increased the maximum allowed leverage ratio under the credit agreement through September 2018. Under the revolving credit facility, $40 million may be drawn in Canadian dollars and $10 million may be drawn in British pounds sterling. Additionally, the revolving credit facility includes a sub-limit for short-term letters of credit in an amount not to exceed $50 million . As of December 31, 2017 , there was $168.9 million outstanding under the revolving credit facility, and, after deducting outstanding letters of credit totaling $8.4 million , the Company’s borrowing availability was $122.7 million . The Company incurs participation fees related to its outstanding letters of credit and commitment fees on its available borrowing capacity. The rates vary depending on the Company’s leverage ratio. Bank fees are not material. The Company’s credit agreement borrowings are secured by substantially all existing and future U.S. assets of the Company, the Goderich mine in Ontario, Canada, and capital stock of certain subsidiaries. As of December 31, 2017 , the Company was in compliance with each of its covenants under the credit agreement. The 4.875% Senior Notes due July 2024 (the "4.875% Notes") are subordinate to the credit agreement borrowings. Interest on the 4.875% Notes is due annually in January and July. The credit agreement and the agreements governing the 4.875% Notes and other indebtedness contain covenants that limit the Company’s ability, among other things, to incur additional indebtedness or contingent obligations or grant liens; pay dividends or make distributions to stockholders; repurchase or redeem the Company’s stock; make investments or dispose of assets; prepay, or amend the terms of certain junior indebtedness; engage in sale and leaseback transactions; make changes to the Company’s organizational documents or fiscal periods; enter into third-party agreements that limit the Company’s ability to grant liens on the Company’s assets or make certain intercompany dividends, investments or asset transfers; enter into new lines of business; enter into transactions with the Company’s stockholders and affiliates; and acquire the assets of or merge or consolidate with other companies. The loans related to the Company’s Produquímica business in Brazil have maturity dates ranging from February 2018 through November 2023 and bear interest at rates at either a percentage of CDI, an overnight inter-bank lending rate in Brazil, or LIBOR plus a margin. A portion of the loans are denominated in U.S. dollars and a portion of the loans are denominated in Brazilian reais, Produquímica’s functional currency. The Company has entered into foreign currency swap agreements in relation to some of these loans whereby the Company agreed to swap interest and principal payments on loans denominated in U.S. dollars for principal and interest payments denominated in Brazilian reais (see Note 10 for further discussion). In September and November 2017, the Company refinanced $54.3 million of loans it assumed in the Produquímica acquisition using proceeds from approximately $87 million of new loans. The new loans bear interest rates ranging from 108.7% and 118.0% of CDI and mature in November 2019. Future maturities of long-term debt for the years ending December 31, are as follows (in millions): Debt Maturity 2018 $ 32.1 2019 89.2 2020 10.7 2021 983.0 2022 2.2 Thereafter 252.0 Total $ 1,369.2 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is subject to various types of market risks, including interest rate risk, foreign currency exchange rate transaction and translation risk and commodity pricing risk. Management may take actions to mitigate the exposure to these types of risks, including entering into forward purchase contracts and other financial instruments. Currently, the Company manages a portion of its commodity pricing and foreign currency exchange rate risks by using derivative instruments. The Company does not seek to engage in trading activities or take speculative positions with any financial instrument arrangement. The Company has entered into natural gas derivative instruments and foreign currency derivative instruments with counterparties it views as creditworthy. However, the Company does attempt to mitigate its counterparty credit risk exposures by, among other things, entering into master netting agreements with some of these counterparties. The Company records derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. Depending on the exposure being hedged, the Company must designate the hedging instrument as a fair value hedge, a cash flow hedge or a net investment in foreign operations hedge. For the qualifying derivative instruments that have been designated as hedges, the effective portion of the change in fair value is recognized through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the statements of operations. Any ineffectiveness related to these hedges was not material for any of the periods presented. For derivative instruments that have not been designated as hedges, the entire change in fair value is recorded through earnings in the period of change. Natural Gas Derivative Instruments Natural gas is consumed at several of the Company’s production facilities, and a change in natural gas prices impacts the Company’s operating margin. The Company’s objective is to reduce the earnings and cash flow impacts of changes in market prices of natural gas by fixing the purchase price of up to 90% of its forecasted natural gas usage. It is the Company’s policy to consider hedging portions of its natural gas usage up to 36 months in advance of the forecasted purchase. As of December 31, 2017 , the Company had entered into natural gas derivative instruments to hedge a portion of its natural gas purchase requirements through December 1, 2019 . As of December 31, 2017 and 2016, the Company had agreements in place to hedge forecasted natural gas purchases of 2.6 million and 2.3 million MMBtus, respectively. All natural gas derivative instruments held by the Company as of December 31, 2017 and 2016, qualified and were designated as cash flow hedges. As of December 31, 2017 , the Company expects to reclassify from accumulated other comprehensive loss to earnings during the next twelve months $1.0 million of net losses on derivative instruments related to its natural gas hedges. Foreign Currency Swaps not Designated as Hedges In conjunction with the acquisition of Produquímica, the Company assumed U.S. dollar-denominated debt which was previously held by Produquímica. Prior to the acquisition, Produquímica entered into foreign currency swap agreements whereby Produquímica agreed to swap interest and principal payments on the loans denominated in U.S. dollars for principal and interest payments denominated in Brazilian reais, Produquímica’s functional currency. The objective of the swap agreements was to mitigate the foreign currency fluctuation risk related to holding debt denominated in a currency other than Produquímica’s functional currency. None of the swap agreements relating to the debt assumed in conjunction with the acquisition of Produquímica were designated as hedges. As of December 31, 2016 , the Company had swap agreements in place to economically hedge $119.6 million of loans denominated in currencies other than Produquímica’s functional currency. These swap agreements were all settled as of December 31, 2017 . During the twelve months ended December 31, 2017 and 2016, the Company recognized losses of $9.7 million and $0.1 million , respectively, in its consolidated statement of operations for the change in fair value of the swap agreements not designated as hedges. Foreign Currency Swaps Designated as Hedges In September 2017, the Company entered into new U.S. dollar-denominated debt instruments to provide funds for its operations in Brazil (see Note 9 for more information). Concurrently, the Company entered into new foreign currency swap agreements whereby the Company agreed to swap interest and principal payments on loans denominated in U.S. dollars for principal and interest payments denominated in Brazilian reais, Produquímica’s functional currency. The objective of the swap agreements is to mitigate the foreign currency fluctuation risk related to holding debt denominated in a currency other than Produquímica’s functional currency. As of December 31, 2017 , the Company had swap agreements in place to hedge $33.1 million of loans denominated currencies other than Produquímica’s functional currency. Payments on these loans are due on various dates extending through September 2019. As of December 31, 2017 , these foreign currency swap derivative instruments qualified and were designated as cash flow hedges. As of December 31, 2017 , the Company expects to reclassify from accumulated other comprehensive loss to earnings during the next twelve months $0.9 million of net gains on derivative instruments related to its foreign currency swap agreements. The following tables present the fair value of the Company’s derivatives as of December 31, 2017 , and 2016 (in millions): Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Balance Sheet Location December 31, 2017 Balance Sheet Location December 31, 2017 Commodity contracts Other current assets $ — Accrued expenses $ 1.0 Commodity contracts Other assets — Other noncurrent liabilities 0.4 Swap contracts Other current assets 0.9 Accrued expenses — Swap contracts Other assets 0.4 Other noncurrent liabilities — Total derivatives designated as hedging instruments (a)(b) $ 1.3 $ 1.4 (a) The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets less than $0.1 million of its commodity contracts that are in a receivable position against its contracts in payable positions. (b) The Company has both commodity hedge and foreign currency swap agreements with two counterparties each. Amounts recorded as liabilities for the Company’s commodity contracts are payable to both counterparties, and amounts recorded as assets for the Company’s swap contracts are receivable from both counterparties. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Balance Sheet Location December 31, 2016 Balance Sheet Location December 31, 2016 Commodity contracts Other current assets $ 1.2 Accrued expenses $ 0.3 Commodity contracts Other assets 0.1 Other noncurrent liabilities 0.1 Total derivatives designated as hedging instruments (a) 1.3 0.4 Derivatives not designated as hedging instruments: Swap contracts Other current assets $ — Accrued expenses $ 25.8 Swap contracts Other assets — Other noncurrent liabilities — Total derivatives not designated as hedging instruments — 25.8 Total derivatives (b) $ 1.3 $ 26.2 (a) The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets approximately $0.4 million of its commodity contracts that are in a payable position against its contracts in receivable positions. (b) The Company has commodity hedge and foreign currency swap agreements with two and five counterparties, respectively. Amounts recorded as assets for the Company’s commodity contracts are receivable from both counterparties, and amounts recorded as liabilities for the Company’s swap contracts are payable to all five counterparties. The following tables present activity related to the Company’s other comprehensive income before taxes for the twelve months ended December 31, 2017 and 2016 (in millions): Twelve Months Ended December 31, 2017 Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Commodity contracts Product cost $ 3.0 $ (0.6 ) Swap contracts Interest expense (1.9 ) 1.9 Total $ 1.1 $ 1.3 Twelve Months Ended December 31, 2016 Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated OCI Into Income Effective Portion) Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Commodity contracts Product cost $ (0.8 ) $ (2.7 ) Total $ (0.8 ) $ (2.7 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingent Obligations: The Company was involved in proceedings alleging unfair labor practices at its Cote Blanche, Louisiana, mine. This matter arose out of a labor dispute between the Company and the United Steelworkers Union over the terms of a contract for certain employees at the mine. These employees initiated a strike that began on April 7, 2010, and ended on June 15, 2010. In September 2012, the U.S. National Labor Relations Board (the “NLRB”) issued a decision finding that the Company had committed unfair labor practices in connection with the labor dispute. Under the ruling, the Company is responsible for back pay to affected employees as a result of changes made in union work rules and past practices beginning April 1, 2010. In the fourth quarter of 2013, this ruling was upheld by an appeals court. As of December 31, 2016, the Company had recorded a reserve of $7.4 million in its consolidated financial statements related to expected payments, including interest, required to resolve the dispute. In March 2017, the Company reached a settlement with the United Steelworkers Union and the NLRB with respect to this matter. Under the terms of the agreement, the Company paid $7.7 million to the affected employees in the second quarter of 2017. As a result of the settlement, the Company recognized an immaterial loss in its consolidated financial statements in 2017. The Wisconsin Department of Agriculture, Trade and Consumer Protection (“DATCP”) has information indicating that agricultural chemicals are present within the subsurface area of the Company’s Kenosha, Wisconsin plant. The agricultural chemicals were used by previous owners and operators of the site. None of the identified chemicals have been used in association with the Company’s operations since it acquired the property in 2002. DATCP directed the Company to conduct further investigations into the possible presence of agricultural chemicals in soil and ground water at the Kenosha plant. The Company has completed initial on-property investigations and has provided the findings to DATCP. All investigations and mitigation activities to date, and any potential future remediation work, are being conducted under the Wisconsin Agricultural Chemical Cleanup Program (the “ACCP”), which provides for reimbursement of some of the costs. The Company may seek participation by, or cost reimbursement from, other parties responsible for the presence of any agricultural chemicals found in soil and ground water at this site if the Company does not receive an acknowledgment of no further action and is required to conduct further investigation or remedial work that may not be eligible for reimbursement under the ACCP. The Company conducts business operations in several countries and is subject to various federal and local labor, social security, environmental and tax laws. While the Company believes it complies with such laws, they are complex and subject to interpretation. In addition to the tax assessments discussed in Note 7, the Company’s Brazilian subsidiaries are party to administrative tax proceedings and claims which totaled $18.1 million as of December 31, 2017 , and relate primarily to value added tax, state tax (ICMS) and social security tax (PIS and COFINS) assessments. The Company has assessed the likelihood of a loss at less than probable and therefore, has not established a reserve for these matters. The Company also has assumed liabilities for labor-related matters in connection with the acquisition of Produquímica, which are primarily related to compensation, labor benefits and consequential tax claims and totaled $10.5 million as of December 31, 2017 . The Company believes the maximum exposure for these other labor matters totaled approximately $41 million as of December 31, 2017 . The Company is also involved in legal and administrative proceedings and claims of various types from the ordinary course of the Company’s business. Management cannot predict the outcome of legal claims and proceedings with certainty. Nevertheless, management believes that the outcome of legal proceeding and claims, which are pending or known to be threatened, even if determined adversely, will not, individually or in the aggregate, have a material adverse effect on the Company’s results of operations, cash flows or financial position. Approximately 50% of workforce in the U.S., Canada and the U.K. and approximately 30% of the Company’s global workforce is represented by collective bargaining agreements. Of the Company’s 12 collective bargaining agreements, four will expire in 2018 (representing approximately 16% of the Company’s total workforce and including one for the Company’s largest North American site, which expires on March 31, 2018), five will expire in 2019, one will expire in 2020, one will expire in 2021 and one will expire in 2022. In addition, trade union membership is mandatory in Brazil, where approximately 40% of the Company’s global workforce is located. Commitments: Leases: The Company leases certain property and equipment under non-cancelable operating leases for varying periods. The aggregate future minimum annual rentals under lease arrangements as of December 31, 2017 are as follows (in millions): Operating Leases 2018 $ 13.1 2019 10.4 2020 5.8 2021 2.2 2022 1.5 Thereafter 5.0 Total $ 38.0 The Company also leases certain property and equipment under capital lease for various periods. The aggregate future minimum annual rentals under these lease arrangements as of December 31, 2017 are as follows (in millions): Capital Leases 2018 $ 0.9 2019 0.8 2020 0.9 2021 0.9 2022 0.9 Thereafter 5.2 Total $ 9.6 Rental expense, net of sublease income, was $22.0 million , $20.4 million and $20.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Royalties: The Company has various private, state and Canadian provincial leases associated with the salt and specialty potash businesses, most of which are renewable by the Company. Many of these leases provide for a royalty payment to the lessor based on a specific amount per ton of mineral extracted or as a percentage of revenue. Royalty expense related to these leases was $14.5 million , $15.2 million and $14.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Performance Bonds: The Company has various salt and other deicing product sales contracts that include performance provisions governing delivery and product quality. These sales contracts either require the Company to maintain performance bonds for stipulated amounts or contain contractual penalty provisions in the event of non-performance. For the three years ended December 31, 2017 , the Company has had no material penalties related to these sales contracts. At December 31, 2017 , the Company had $128.3 million of outstanding performance bonds, which includes the bonds outstanding for the Company’s tax reassessments, and $9.2 million for bank letter guarantees. Purchase Commitments: In connection with the operations of the Company’s facilities, the Company purchases utilities, other raw materials and services from third parties under contracts extending, in some cases, for multiple years. Purchases under these contracts are generally based on prevailing market prices. The Company has minimum throughput contracts with some of its depots and warehouses. The purchase commitments for these contracts are estimated to be $28.4 million for 2018, $11.4 million in 2019, $10.2 million in 2020 and $9.4 million in 2021. |
STOCKHOLDERS' EQUITY AND EQUITY
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity and Equity Instruments [Abstract] | |
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS | STOCKHOLDERS’ EQUITY AND EQUITY INSTRUMENTS The Company paid dividends of $2.88 per share in 2017 and currently intends to continue paying quarterly cash dividends. The declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the Company’s board of directors and will depend upon many factors, including the Company’s financial condition, earnings, legal requirements, restrictions in its debt agreements (see Note 9) and other factors the Company’s board of directors deems relevant. Non-employee directors may defer all or a portion of the fees payable for their service into deferred stock units, equivalent to the value of the Company’s common stock. Additionally, as dividends are declared on the Company’s common stock, these deferred stock units are entitled to accrete dividends in the form of additional units based on the stock price on the dividend payment date. Accumulated deferred stock units are distributed in the form of Company common stock at a future specified date or following resignation from the board of directors, based upon the director’s annual election. During the years ended December 31, 2017 , 2016 and 2015 , members of the board of directors were credited with 17,207 , 10,078 and 12,542 deferred stock units, respectively. During the years ended December 31, 2017 , 2016 and 2015 , 6,668 , 12,153 and 31,954 shares of common stock, respectively, were issued from treasury shares for director compensation. Preferred stock The Company is authorized to issue up to 10,000,000 shares of preferred stock, of which no shares are currently issued or outstanding. Of those, 200,000 shares of preferred stock were designated as series A junior participating preferred stock in connection with the Company’s now expired rights agreement. Equity Compensation Awards In 2005, the Company adopted the 2005 Incentive Award Plan (as amended, the “2005 Plan”), which authorizes the issuance of 3,240,000 shares of Company common stock. In May 2015, the Company’s shareholders approved the 2015 Incentive Award Plan (the “2015 Plan”), which authorizes the issuance of 3,000,000 shares of Company common stock. Since the date the 2015 Plan was approved, the Company ceased issuing equity awards under the 2005 Plan. The 2005 Plan and 2015 Plan allow for grants of equity awards to executive officers, other employees and directors, including shares of common stock, restricted stock units (“RSUs”), performance stock units (“PSUs”), stock options and deferred stock units. The grants occur following approval by the compensation committee of the Company’s board of directors, with the amount and terms communicated to employees shortly thereafter. Options Substantially all stock options granted under the 2005 Plan and 2015 Plan vest ratably, in tranches, over a four -year service period. Unexercised options expire after 7 years. Options do not have dividend or voting rights. Upon vesting, each option can be exercised to purchase one share of the Company’s common stock. The exercise price of options is equal to the closing stock price on the day of grant. To estimate the fair value of options on the grant date, the Company uses the Black-Scholes option valuation model. Award recipients are grouped according to expected exercise behavior. Unless better information is available to estimate the expected term of the options, the estimate is based on historical exercise experience. The risk-free rate, using U.S. Treasury yield curves in effect at the time of grant, is selected based on the expected term of each group. The Company’s historical stock price is used to estimate expected volatility. The weighted average assumptions and fair values for options granted for each of the years ended December 31 is included in the following table. 2017 2016 2015 Fair value of options granted $ 9.54 $ 10.17 $ 14.78 Expected term (years) 4.5 4.5 4.8 Expected volatility 23.2 % 24.4 % 24.9 % Dividend yield 3.5 % 3.3 % 3.1 % Risk-free interest rates 1.8 % 1.2 % 1.6 % RSUs Substantially all of the RSUs granted under both the 2005 Plan and 2015 Plan vest after three years of service entitling the holders to one share of common stock for each vested RSU. The unvested RSUs do not have voting rights but are entitled to receive non-forfeitable dividends (generally after a performance hurdle has been satisfied for the year of the grant) or other distributions that may be declared on the Company’s common stock equal to the per-share dividend declared. The closing stock price on the day of grant is used to determine the fair value of RSUs. PSUs Substantially all of the PSUs granted under both the 2005 Plan and 2015 Plan are either total shareholder return PSUs (the “TSR PSUs”) or return on invested capital PSUs (the “ROIC PSUs”). The actual number of shares of common stock that may be earned with respect to TSR PSUs is calculated by comparing the Company’s total shareholder return to the total shareholder return for each company comprising the Russell 3000 Index over the three -year performance period and may range from 0% to 150% of the target number of shares based upon the attainment of these performance conditions. The actual number of shares of common stock that may be earned with respect to ROIC PSUs is calculated based on the average of the Company’s annual return on invested capital for each year in the three -year performance period and may range from 0% to 200% of the target number of shares based upon the attainment of these performance conditions. ROIC PSUs granted in 2017 have a three -year performance period that begins in 2017 and ends in 2019. TSR PSUs granted in 2017 have a three -year performance period that begins on the grant date and ends on the third anniversary following the grant date. Both types of PSUs granted in 2017 vest three years from the grant date. PSUs represent a target number of shares of Company common stock that may be earned before adjustment based upon the attainment of certain performance conditions. Holders of PSUs are entitled to receive non-forfeitable dividends or other distributions equal to those declared on the Company’s common stock for PSUs that are earned, which are paid when the shares underlying the PSUs are issued. To estimate the fair value of the TSR PSUs on the grant date, the Company uses a Monte-Carlo simulation model, which simulates future stock prices of the Company as well as the companies comprising the Russell 3000 Index. This model uses historical stock prices to estimate expected volatility and the Company’s correlation to the Russell 3000 Index. The risk-free rate was determined using the same methodology as the option valuations as discussed above. The Company’s closing stock price on the grant date was used to estimate the fair value of the ROIC PSUs. The Company will adjust the expense of the ROIC PSUs based upon its estimate of the number of shares that will ultimately vest at each interim date during the three -year vesting period. The following is a summary of the Company’s stock option, RSU and PSU activity and related information for the following periods: Stock Options RSUs PSUs Number Weighted-average exercise price Number Weighted-average fair value Number Weighted-average fair value Outstanding at December 31, 2014 278,429 $ 79.23 88,532 $ 76.58 59,627 $ 88.69 Granted 120,956 91.76 21,317 90.94 35,584 100.49 Exercised (a) (33,906 ) 72.53 — — — — Released from restriction (a) — — (15,952 ) 71.69 (10,454 ) 74.49 Cancelled/Expired (12,392 ) 84.71 (2,889 ) 81.43 (7,392 ) 82.46 Outstanding at December 31, 2015 353,087 $ 83.94 91,008 $ 80.65 77,365 $ 96.63 Granted 157,887 70.48 34,975 72.06 43,902 73.86 Exercised (a) (11,377 ) 62.50 — — — — Released from restriction (a) — — (53,983 ) 75.18 (10,258 ) 78.49 Cancelled/Expired (b) (56,842 ) 80.95 (8,220 ) 83.16 (21,998 ) 88.79 Outstanding at December 31, 2016 442,755 $ 80.07 63,780 $ 80.25 89,011 $ 89.43 Granted 227,351 68.00 34,635 68.00 58,878 73.08 Exercised (a) (3,366 ) 76.03 — — — — Released from restriction (a) — — (15,806 ) 84.77 (12,946 ) 105.77 Cancelled/Expired (b) (103,863 ) 76.44 (11,753 ) 71.96 (22,907 ) 86.81 Outstanding at December 31, 2017 562,877 $ 75.89 70,856 $ 74.63 112,036 $ 79.48 (a) Common stock issued for exercised options, vested RSUs and vested and earned PSUs were issued from treasury shares. (b) The performance period for the 2015 PSU grant was completed in 2017 . The Company does not expect to issue any shares in March 2018 when the 2015 PSU grant vests. As of December 31, 2016 , there were 442,755 options outstanding of which 178,751 were exercisable. The following table summarizes information about options outstanding and exercisable at December 31, 2017 . Options Outstanding Options Exercisable Range of exercise prices Options outstanding Weighted-average remaining contractual life (years) Weighted-average exercise price of options outstanding Options exercisable Weighted-average remaining contractual life (years) Weighted-average exercise price of exercisable options $68.00 - $69.24 195,232 6.3 $ 68.00 — — $ — $69.25 - $71.09 120,117 5.2 70.48 30,471 5.2 70.48 $71.10 - $81.73 84,605 2.0 75.63 84,605 2.0 75.63 $81.74 - $89.47 79,349 2.6 87.04 62,974 2.4 87.00 $89.48 - $93.26 83,574 4.2 91.77 43,162 4.2 91.77 Totals 562,877 4.6 $ 75.89 221,212 3.0 $ 81.31 During the years ended December 31, 2017 , 2016 and 2015 , the Company recorded compensation expense of $5.0 million , $4.9 million and $6.1 million , respectively, related to its stock-based compensation awards that are expected to vest. No amounts have been capitalized. The fair value of options vested was $1.4 million , $1.3 million and $1.1 million in 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , unrecorded compensation cost related to non-vested awards of $6.5 million is expected to be recognized from 2018 through 2021, with a weighted average period of 2.1 years. The intrinsic value of stock options exercised during the twelve months ended December 31, 2017 , 2016 and 2015 totaled less than $0.1 million , $0.1 million and $0.6 million , respectively. As of December 31, 2017 , the intrinsic value of options outstanding totaled $1.1 million , of which 221,212 options with an intrinsic value of $0.1 million were exercisable. The number of shares held in treasury is sufficient to cover all outstanding equity awards as of December 31, 2017 . Accumulated Other Comprehensive Income (Loss) The Company’s comprehensive income (loss) is comprised of net earnings, net amortization of the unrealized loss of the pension obligation, the change in the unrealized gain (loss) on natural gas and foreign currency cash flow hedges, and foreign currency translation adjustments. The components of and changes in accumulated other comprehensive income (loss) (“AOCI”) for the twelve months ended December 31, 2017 and 2016 are as follows (in millions): Twelve Months Ended December 31, 2017 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ 0.6 $ (3.7 ) $ (101.8 ) $ (104.9 ) Other comprehensive income (loss) before reclassifications (0.6 ) (0.4 ) 28.7 27.7 Amounts reclassified from accumulated other comprehensive loss (0.9 ) 0.2 — (0.7 ) Net current period other comprehensive income (loss) (1.5 ) (0.2 ) 28.7 27.0 Ending balance $ (0.9 ) $ (3.9 ) $ (73.1 ) $ (77.9 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive gain (loss) presented in the table are reflected net of applicable income taxes. Twelve Months Ended December 31, 2016 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (1.6 ) $ (3.8 ) $ (102.9 ) $ (108.3 ) Other comprehensive income (loss) before reclassifications 0.5 (0.1 ) 1.1 1.5 Amounts reclassified from accumulated other comprehensive loss 1.7 0.2 — 1.9 Net current period other comprehensive income 2.2 0.1 1.1 3.4 Ending balance $ 0.6 $ (3.7 ) $ (101.8 ) $ (104.9 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive gain (loss) presented in the table are reflected net of applicable income taxes. Twelve Months Ended December 31, 2017 Amount Reclassified from AOCI Line Item Impacted in the Consolidated Statement of Operations Gains and (losses) on cash flow hedges: Natural gas instruments $ 0.6 Product cost Foreign currency swaps (1.9 ) Interest expense Income tax expense (benefit) 0.4 (0.9 ) Amortization of defined benefit pension: Amortization of loss $ 0.3 Product cost Income tax expense (benefit) (0.1 ) 0.2 Total reclassifications, net of income taxes $ (0.7 ) Twelve Months Ended December 31, 2016 Amount Reclassified from AOCI Line Item Impacted in the Consolidated Statement of Operations Gains and (losses) on cash flow hedges: Natural gas instruments $ (2.7 ) Product cost Income tax expense (benefit) 1.0 (1.7 ) Amortization of defined benefit pension: Amortization of loss $ 0.3 Product cost Income tax expense (benefit) (0.1 ) 0.2 Total reclassifications, net of income taxes $ (1.5 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS As required, the Company’s financial instruments are measured and reported at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. When available, the Company uses quoted prices in active markets to determine the fair values for its financial instruments (Level 1 inputs), or absent quoted market prices, observable market-corroborated inputs over the term of the financial instruments (Level 2 inputs). The Company does not have any unobservable inputs that are not corroborated by market inputs (Level 3 inputs) except as stated in Notes 3 and 8. The Company holds marketable securities associated with its Savings Plans, which are valued based on readily available quoted market prices. The Company also holds short-term investments which are classified as trading securities with any gains or losses recognized through earnings. The Company utilizes derivative instruments to manage its risk of changes in natural gas prices and its risk of changes in foreign currency exchange rates (see Note 10). The fair value of the natural gas derivative instruments and the foreign currency swaps are determined using market data of forward prices for all of the Company’s contracts. The estimated fair values for each type of instrument are presented below (in millions). December 31, 2017 Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 2.2 $ 2.2 $ — $ — Derivatives - foreign currency swaps, net 1.3 — 1.3 — Total Assets $ 3.5 $ 2.2 $ 1.3 $ — Liability Class: Liabilities related to non-qualified savings plan $ (2.2 ) $ (2.2 ) $ — $ — Derivatives - natural gas instruments (1.4 ) — (1.4 ) — Total Liabilities $ (3.6 ) $ (2.2 ) $ (1.4 ) $ — (a) Includes mutual fund investments of approximately 30% in the common stock of large-cap U.S. companies, 15% in the common stock of small to mid-cap U.S. companies, 5% in the common stock of international companies, 10% in bond funds, 20% in short-term investments and 20% in blended funds. December 31, 2016 Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 1.8 $ 1.8 $ — $ — Derivatives - natural gas instruments 0.9 — 0.9 — Trading securities 1.8 — 1.8 — Total Assets $ 4.5 $ 1.8 $ 2.7 $ — Liability Class: Liabilities related to non-qualified savings plan $ (1.8 ) $ (1.8 ) $ — $ — Derivatives - foreign currency swaps (25.8 ) — (25.8 ) — Total Liabilities $ (27.6 ) $ (1.8 ) $ (25.8 ) $ — (a) Includes mutual fund investments of approximately 25% in the common stock of large-cap U.S. companies, 10% in the common stock of small to mid-cap U.S. companies, 5% in the common stock of international companies, 5% in bond funds, 40% in short-term investments and 15% in blended funds. Cash and cash equivalents, accounts receivable (net of reserve for bad debts) and payables are carried at cost, which approximates fair value due to their liquid and short-term nature. The Company’s investments related to its nonqualified retirement plan of $2.2 million and $1.8 million as of December 31, 2017 and 2016, respectively, are stated at fair value based on quoted market prices. As of December 31, 2017 and 2016, the estimated fair value of the fixed-rate 4.875% Notes, based on available trading information (Level 2), totaled $246.9 million and $236.3 million , respectively, compared with the aggregate principal amount at maturity of $250.0 million . The fair value at December 31, 2017 and 2016 of amounts outstanding under the Credit Agreement, based upon available bid information received from the Company’s lender (Level 2), totaled approximately $989.5 million and $940.5 million , respectively, compared with the aggregate principal amount at maturity of $1.01 billion and $951.3 million , respectively. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS The Company’s reportable segments are strategic business units that offer different products and services, and each business requires different technology and marketing strategies. The Company has three reportable segments: Salt, Plant Nutrition North America and Plant Nutrition South America. The Salt segment produces and markets salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners and agricultural and industrial applications. SOP crop nutrients, industrial-grade SOP, micronutrients and magnesium chloride for agricultural purposes are produced and marketed through the Plant Nutrition North America segment. In October 2016, the Company acquired Produquímica, which operates two primary businesses in Brazil – agricultural productivity and chemical solutions. See Note 3 for a further discussion of the acquisition. The agricultural productivity division manufactures and distributes a broad offering of specialty plant nutrition solution-based products that are used in direct soil and foliar applications, as well as through irrigation systems and for seed treatment. Produquímica also manufactures and markets specialty chemicals for the industrial chemical industry. The Company’s Plant Nutrition South America segment represents the results of the acquired business. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All intersegment sales prices are market-based. The Company evaluates performance based on the operating earnings of the respective segments. Segment information as of and for the years ended December 31, is as follows (in millions): 2017 Salt Plant Nutrition North America Plant Nutrition South America Corporate& Other (a) Total Sales to external customers $ 769.2 $ 210.0 $ 375.0 $ 10.2 $ 1,364.4 Intersegment sales — 6.5 — (6.5 ) — Shipping and handling cost 220.6 28.1 18.8 — 267.5 Operating earnings (loss) (b) 138.0 27.7 49.1 (55.6 ) 159.2 Depreciation, depletion and amortization 55.0 36.9 22.6 7.7 122.2 Total assets 1,030.6 601.1 808.0 131.3 2,571.0 Capital expenditures 65.8 31.9 11.3 5.1 114.1 2016 Salt Plant Nutrition North America Plant Nutrition South America Corporate& Other (a) Total Sales to external customers $ 811.9 $ 203.0 $ 113.5 $ 9.6 $ 1,138.0 Intersegment sales — 5.2 — (5.2 ) — Shipping and handling cost 214.5 25.0 5.4 — 244.9 Operating earnings (loss) 200.6 21.1 7.4 (54.5 ) 174.6 Depreciation, depletion and amortization 46.7 33.4 5.0 5.2 90.3 Total assets 980.3 592.3 844.9 49.0 2,466.5 Capital expenditures 103.4 63.6 2.1 13.1 182.2 2015 Salt Plant Nutrition North America Plant Nutrition South America Corporate& Other (a) Total Sales to external customers $ 849.0 $ 238.4 $ — $ 11.3 $ 1,098.7 Intersegment sales 0.1 7.7 — (7.8 ) — Shipping and handling cost 239.1 22.4 — — 261.5 Operating earnings (loss) 215.2 57.9 — (51.7 ) 221.4 Depreciation, depletion and amortization 43.9 29.8 — 4.6 78.3 Total assets (c) 896.5 679.7 — 48.6 1,624.8 Capital expenditures 106.5 92.8 — 18.3 217.6 (a) Corporate and Other includes corporate entities, records management operations and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead including costs for general corporate governance and oversight, as well as costs for the human resources, information technology and finance functions. (b) In 2017, operating results include $4.3 million of restructuring charges. (c) In 2015, the Company’s equity investment in Produquímica is included in total assets for its Plant Nutrition North America segment. Financial information relating to the Company’s operations by geographic area for the years ended December 31 is as follows (in millions): Sales 2017 2016 2015 United States (a) $ 718.0 $ 762.6 $ 834.6 Canada 217.7 212.5 198.4 Brazil 362.1 111.7 — United Kingdom 43.3 40.6 56.8 Other 23.3 10.6 8.9 Total sales $ 1,364.4 $ 1,138.0 $ 1,098.7 (a) United States sales exclude product sold to foreign customers at U.S. ports. Financial information relating to the Company’s long-lived assets, including deferred financing costs and other long-lived assets but excluding the investments related to the nonqualified retirement plan and pension plan assets, by geographic area as of December 31 (in millions): Long-Lived Assets 2017 2016 2015 United States $ 618.5 $ 568.5 $ 498.0 Canada 515.9 461.5 394.3 United Kingdom 69.9 66.8 95.7 Brazil 618.4 645.8 116.4 Other 6.5 6.5 6.5 Total long-lived assets $ 1,829.2 $ 1,749.1 $ 1,110.9 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The two-class method requires allocating the Company’s net earnings to both common shares and participating securities. The following table sets forth the computation of basic and diluted earnings per common share (in millions, except for share and per share data): Year ended December 31, 2017 2016 2015 Numerator: Net earnings $ 42.7 $ 162.7 $ 159.2 Less: Net earnings allocated to participating securities (a) (0.5 ) (0.8 ) (1.0 ) Net earnings available to common shareholders $ 42.2 $ 161.9 $ 158.2 Denominator (in thousands): Weighted average common shares outstanding, shares for basic earnings per share (b) 33,819 33,776 33,677 Weighted average equity awards outstanding 1 4 15 Shares for diluted earnings per share 33,820 33,780 33,692 Net earnings per common share, basic $ 1.25 $ 4.79 $ 4.70 Net earnings per common share, diluted $ 1.25 $ 4.79 $ 4.69 (a) Participating securities include PSUs and RSUs that receive non-forfeitable dividends. Net earnings were allocated to participating securities of 166,000 , 164,000 and 198,000 for 2017 , 2016 and 2015 , respectively. (b) For the calculation of diluted earnings per share, the Company uses the more dilutive of either the treasury stock method or the two-class method to determine the weighted average number of outstanding common shares. In addition, the Company had 640,000 , 509,000 and 432,000 weighted options outstanding for 2017 , 2016 and 2015 , respectively, which were anti-dilutive and therefore not included in the diluted earnings per share calculation. |
QUARTERLY RESULTS (Unaudited)
QUARTERLY RESULTS (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS (Unaudited) | QUARTERLY RESULTS (Unaudited) (in millions, except share and per share data) Quarter First Second Third Fourth 2017 Sales $ 387.8 $ 228.0 $ 290.7 $ 457.9 Gross profit 81.6 44.9 76.1 124.0 Net earnings (loss) (a) 21.5 (6.4 ) 32.0 (4.4 ) Net earnings (loss) per share, basic (a) 0.63 (0.19 ) 0.94 (0.13 ) Net earnings (loss) per share, diluted (a) 0.63 (0.19 ) 0.94 (0.13 ) Basic weighted-average shares outstanding (in thousands) 33,802 33,823 33,825 33,828 Diluted weighted-average shares outstanding (in thousands) 33,803 33,823 33,825 33,828 2016 Sales $ 345.7 $ 169.5 $ 179.6 $ 443.2 Gross profit 102.6 41.3 45.2 110.4 Net earnings (b) 49.7 6.3 9.1 97.6 Net earnings per share, basic (b) 1.47 0.18 0.27 2.88 Net earnings per share, diluted (b) 1.46 0.18 0.27 2.87 Basic weighted-average shares outstanding (in thousands) 33,746 33,784 33,786 33,788 Diluted weighted-average shares outstanding (in thousands) 33,748 33,787 33,789 33,793 (a) In connection with U.S. tax reform, the Company recorded a net charge of $46.8 million during the fourth quarter of 2017. The Company released $18 million and $7 million in the third and fourth quarters of 2017, respectively, related to Brazilian valuation allowances that were acquired in the acquisition of Produquímica. See Note 7 for a discussion of tax-related items that impacted 2017 results. (b) In the fourth quarter of 2016, the Company recognized a gain of $59.3 million on the remeasurement of its equity investment as part of the acquisition of the remaining 65% of Produquímica’s equity. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT Dividend Declared: On February 13, 2018 , the board of directors declared a quarterly cash dividend of $0.72 per share on the Company’s outstanding common stock, unchanged from the quarterly cash dividends paid in 2017 . The dividend will be paid on March 15, 2018 , to stockholders of record as of the close of business on March 1, 2018 . |
Schedule II - Valuation Reserve
Schedule II - Valuation Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation Reserves | Schedule II — Valuation Reserves Compass Minerals International, Inc. December 31, 2017, 2016 and 2015 Description (in millions) Balance at the Beginning of the Year Additions (Deductions) Charged to Expense Deductions (1) Balance at the End of the Year Deducted from Receivables — Allowance for Doubtful Accounts 2017 $ 9.0 $ 3.2 $ (1.3 ) $ 10.9 2016 (2) 1.3 8.0 (0.3 ) 9.0 2015 1.4 0.6 (0.7 ) 1.3 Deducted from Deferred Income Taxes — Valuation Allowance 2017 $ 33.6 $ 1.1 $ (24.5 ) $ 10.2 2016 (3) 0.9 34.3 (1.6 ) 33.6 2015 1.0 0.1 (0.2 ) 0.9 (1) Deduction for purposes for which reserve was created. (2) The 2016 additions include $7.4 million related to the acquisition of Produquímica. This amount was not charged to expense. (3) The 2016 additions relate to the acquisition of Produquímica. This amount was not charged to expense. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Management Estimates | Management Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) as included in the Accounting Standards Codification requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Basis of Consolidation | Basis of Consolidation: The Company’s consolidated financial statements include the accounts of CMI and its wholly-owned domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Foreign Currency | Foreign Currency: Assets and liabilities are translated into U.S. dollars at end of period exchange rates. Revenues and expenses are translated using the monthly average rates of exchange during the year. Adjustments resulting from the translation of foreign-currency financial statements into the reporting currency, U.S. dollars, are included in accumulated other comprehensive loss. |
Revenue Recognition | Revenue Recognition: The Company typically recognizes revenue at the time of shipment to the customer, which coincides with the transfer of title and risk of ownership to the customer. Sales represent billings to customers net of sales taxes charged for the sale of the product. Sales include amounts charged to customers for shipping and handling costs, which are expensed when the related product is sold. |
Cash and Cash Equivalents | Cash and Cash Equivalents: The Company considers all investments with original maturities of three months or less to be cash equivalents. The Company maintains the majority of its cash in bank deposit accounts with several commercial banks with high credit ratings in the U.S., Canada, Brazil and Europe. Typically, the Company has bank deposits in excess of federally insured limits. Currently, the Company does not believe it is exposed to significant credit risk on its cash and cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts: Receivables consist almost entirely of trade accounts receivable. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience by business line and a current assessment of its portfolio, including information regarding individual customers. The Company reviews its past due account balances for collectability and adjusts its allowance for doubtful accounts accordingly. Account balances are charged off against the allowance when the Company believes it is probable that the receivable will not be recovered. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value. Finished goods and raw material and supply costs are valued using the average cost method. Raw materials and supplies primarily consist of raw materials purchased to aid in the production of mineral and chemical products, maintenance materials and packaging materials. Finished goods are primarily comprised of salt, magnesium chloride, and plant nutrition and chemical products readily available for sale. Substantially all costs associated with the production of finished goods at the Company’s production locations are captured as inventory costs. As required by U.S. GAAP, a portion of the fixed costs at a location are not included in inventory and are expensed as a product cost if production at that location is determined to be abnormally low in any period. Additionally, since the Company’s products are often stored at third-party warehousing locations, the Company includes in the cost of inventory the freight and handling costs necessary to move the product to storage until the product is sold to a customer. |
Other Current Assets | Other Current Assets: In the fourth quarter of 2015, the Company began marketing certain assets used in farming operations. Management remains committed to sell these assets, and the assets continue to be marketed at a reasonable price. The Company has performed an impairment analysis and concluded that the fair market value of these assets exceeds their carrying value. These assets have been recorded in other current assets in the Consolidated Balance Sheets as of December 31, 2017 and 2016. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment is stated at cost and includes capitalized interest. The costs of replacements or renewals, which improve or extend the life of existing property, are capitalized. Maintenance and repairs are expensed as incurred. Upon retirement or disposition of an asset, any resulting gain or loss is included in the Company’s operating results. Property, plant and equipment also includes mineral interests. The mineral interests for the Company’s Winsford U.K. mine are owned. The Company leases probable mineral reserves at its Cote Blanche and Goderich mines, its Ogden facility and several of its other North American facilities. These leases have varying terms, and many provide for a royalty payment to the lessor based on a specific amount per ton of mineral extracted or as a percentage of revenue. The Company’s rights to extract minerals are contractually limited by time. The Cote Blanche mine is operated under land and mineral leases, and the mineral lease expires in 2060 with two additional 25 -year renewal periods. The Goderich mine mineral reserve lease expires in 2022 with the Company’s option to renew until 2043 after demonstrating to the lessor that the mine’s useful life is greater than the lease’s term. The Ogden facility mineral reserve lease renews annually. The Company believes it will be able to continue to extend lease agreements as it has in the past, at commercially reasonable terms, without incurring substantial costs or material modifications to the existing lease terms and conditions, and therefore, management believes that assigned lives are appropriate. The Company’s mineral interests are depleted on a units-of-production basis based upon the latest available mineral study. The weighted average amortization period for the leased probable mineral reserves is 92 years as of December 31, 2017 . The Company also owns other mineral properties. The weighted average life for the probable owned mineral reserves is 39 years as of December 31, 2017 based upon management’s current production estimates. Buildings and structures are depreciated on a straight line basis over lives generally ranging from 10 to 30 years. Portable buildings generally have shorter lives than permanent structures. Leasehold and building improvements typically have shorter estimated lives of 5 to 20 years or lower based on the life of the lease to which the improvement relates. Property, plant and equipment recognized as a result of the full acquisition of Produquímica Indústria e Comércio S.A. (“Produquímica”) (see Note 3) were recorded at fair value as of the acquisition date and are being depreciated based on estimated weighted-average remaining useful lives. The Company’s other fixed assets are amortized on a straight-line basis over their respective lives. The following table summarizes the estimated useful lives of the Company’s different classes of property, plant and equipment: Years Land improvements 10 to 25 Buildings and structures 10 to 30 Leasehold and building improvements 5 to 40 Machinery and equipment – vehicles 3 to 10 Machinery and equipment – other mining and production 3 to 50 Office furniture and equipment 3 to 10 Mineral interests 20 to 99 The Company has capital leases which are recorded in property, plant and equipment at the beginning of the lease at the lower of the fair value of the leased property or the present value of the minimum lease payments. Lease payments are recorded as interest expense and a reduction of the lease liability. A capital lease asset is depreciated over the lower of its useful life or the lease term. The Company has capitalized computer software costs of $29.5 million and $33.9 million as of December 31, 2017 and 2016 , respectively, recorded in property, plant and equipment. The capitalized costs are being amortized over five years. The Company recorded $4.7 million , $3.1 million and $2.2 million of amortization expense related to capitalized computer software for 2017 , 2016 and 2015 , respectively. The Company recognizes and measures obligations related to the retirement of tangible long-lived assets in accordance with applicable U.S. GAAP. Asset retirement obligations are not material to the Company’s consolidated financial position, results of operations or cash flows. The Company reviews its long-lived assets and the related mineral reserves for impairment whenever events or changes in circumstances indicate the carrying amounts of such assets may not be recoverable. If an indication of a potential impairment exists, recoverability of the respective assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate, to the carrying amount, including associated intangible assets, of such operation. If the operation is determined to be unable to recover the carrying amount of its assets, then intangible assets are written down first, followed by the other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: The Company amortizes its intangible assets deemed to have finite lives on a straight-line basis over their estimated useful lives which, for the Company, range from 4 to 50 years. The Company reviews goodwill and other indefinite-lived intangible assets annually for impairment. In addition, goodwill and other intangible assets are reviewed when an event or change in circumstances indicates the carrying amounts of such assets may not be recoverable. |
Investments | Investments: The Company uses the equity method of accounting for equity securities when it has significant influence or when it has more than a minor ownership interest or more than minor influence over an investee’s operations but does not have a controlling financial interest. Initial investments are recorded at cost (including certain transaction costs) and are adjusted by the Company’s share of the investees’ undistributed earnings and losses. The Company may recognize its share of an investee’s earnings on a lag, if an investee’s financial results are not available in a timely manner. Prior to the full acquisition of Produquímica, which was completed on October 3, 2016, the Company’s initial 35% equity interest in Produquímica was accounted for under the equity method of accounting (see Note 3 for more information). As a result of the full acquisition of Produquímica, the Company now also holds a 50% interest in Fermavi Eletroquímica Ltda. (“Fermavi”), which was previously held by Produquímica. Fermavi, which was founded in 1987, is a Brazilian corporation with headquarters in Varginha, Minas Gerais, Brazil, and its operations focus on the production and sale of manganese-based products. The Company’s investment in Fermavi was recorded at its estimated fair value in conjunction with the preliminary purchase price allocation as of the date the Company completed the full acquisition of Produquímica, which was in excess of the book value of net assets acquired. This basis difference was approximately $17 million and $18 million as of December 31, 2017 and 2016, respectively. The portion of the basis differences related to tangible and intangible assets will be amortized over their remaining useful lives, as appropriate. The Company accounts for its investment in Fermavi under the equity method of accounting. |
Marketable Securities | The marketable securities are classified as trading securities and accordingly, gains and losses are recorded as a component of other expense (income), net in the consolidated statements of operations. |
Income Taxes | Income Taxes: The Company accounts for income taxes using the liability method in accordance with the provisions of U.S. GAAP. Under the liability method, deferred taxes are determined based on the differences between the financial statement and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company’s foreign subsidiaries file separate company returns in their respective jurisdictions. The Company recognizes potential liabilities in accordance with applicable U.S. GAAP for anticipated tax issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Any penalties and interest that are accrued on the Company’s uncertain tax positions are included as a component of income tax expense. In evaluating the Company’s ability to realize deferred tax assets, the Company considers the sources and timing of taxable income, including the reversal of existing temporary differences, the ability to carryback tax attributes to prior periods, qualifying tax-planning strategies, and estimates of future taxable income exclusive of reversing temporary differences. In determining future taxable income, the Company’s assumptions include the amount of pre-tax operating income according to different state, federal and international taxing jurisdictions, the origination of future temporary differences, and the implementation of feasible and prudent tax-planning strategies. If the Company determines that a portion of its deferred tax assets will not be realized, a valuation allowance is recorded in the period that such determination is made. In the future, if the Company determines, based on the existence of sufficient evidence, that more or less of the deferred tax assets are more likely than not to be realized, an adjustment to the valuation allowance will be made in the period such a determination is made. |
Environmental Costs | Environmental Costs: Environmental costs, other than those of a capital nature, are accrued at the time the exposure becomes known and costs can be reasonably estimated. Costs are accrued based upon management’s estimates of all direct costs. |
Equity Compensation Plans | Equity Compensation Plans: The Company has equity compensation plans under the oversight of the Company’s board of directors, whereby stock options, restricted stock units, performance stock units, deferred stock units and shares of common stock are granted to the Company’s employees and directors. |
Earnings per Share | Earnings per Share: The Company’s participating securities are accounted for in accordance with guidance related to the computation of earnings per share under the two-class method. The two-class method requires allocating the Company’s net earnings to both common shares and participating securities based upon their rights to receive dividends. Basic earnings per share is computed by dividing net earnings available to common shareholders by the weighted-average number of outstanding common shares during the period. Diluted earnings per share reflects the potential dilution that could occur under the more dilutive of either the treasury stock method or the two-class method for calculating the weighted-average number of outstanding common shares. The treasury stock method is calculated assuming unrecognized compensation expense, income tax benefits and proceeds from the potential exercise of employee stock options are used to repurchase common stock. |
Derivatives | Derivatives: The Company is exposed to the impact of fluctuations in foreign exchange and interest rates on its borrowings and fluctuations in the purchase price of natural gas consumed in operations. The Company hedges portions of these risks through the use of derivative agreements. The Company accounts for derivative financial instruments in accordance with applicable U.S. GAAP, which requires companies to record derivative financial instruments as assets or liabilities measured at fair value. Accounting for the changes in the fair value of a derivative depends on its designation and effectiveness. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. For qualifying hedges, the effective portion of the change in fair value is recognized through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the statements of operations. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. The Company formally documents, designates and assesses the effectiveness of transactions that receive hedge accounting treatment initially and on an ongoing basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board (the “FASB”) issued guidance to address the income tax accounting treatment of the tax effects within other comprehensive income due to the enactment of the Tax Cuts and Jobs Act (the “Act”). This guidance allows entities to elect to reclassify the tax effects of the change in the income tax rates from other comprehensive income to retained earnings. The guidance is effective for periods beginning after December 15, 2018 although early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The Company is still evaluating the impact of adopting this guidance. In August 2016, the FASB issued guidance to clarify how certain cash receipts and payments should be presented and classified in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In June 2016, the FASB issued guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, requires a modified retrospective transition method and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company adopted this guidance in the first quarter of 2017 on a prospective basis, and prior periods have not been adjusted. The Company elected the option available under the guidance to continue to estimate the effect of forfeitures in the calculation of share-based payment expense. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance which requires lessees to recognize on their balance sheet a right-of-use asset which represents a lessee’s right to use the underlying asset. Under this guidance, an entity must also recognize a lease liability which represents a lessee’s obligation to make lease payments for the right to use the asset. In addition, the standard requires expanded qualitative and quantitative disclosures. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires a modified retrospective transition method. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. In July 2015, the FASB issued guidance that requires entities to measure inventory within the scope of the standard at the lower of cost or net realizable value. “Net realizable value” is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company adopted this guidance in the first quarter of 2017. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued guidance to provide a single, comprehensive revenue recognition model for all contracts with customers. The new revenue recognition model supersedes existing revenue recognition guidance and requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration an entity expects to receive in exchange for those goods or services. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, and early adoption is permitted. The guidance permits the use of either a full or modified retrospective transition method. The Company adopted the new revenue recognition guidance effective January 1, 2018 using the modified retrospective transition method, which requires the cumulative effect of adoption, if any, to be recognized as an adjustment to opening retained earnings in the period of adoption. The Company did not identify any material differences in the amount and timing of revenue recognition for its revenue streams. Substantially all of the Company’s revenue will continue to be recognized at a point-in-time when control of the goods transfers to the customer. The adoption of this guidance will result in expanded disclosures regarding revenue in the Company’s financial statement beginning with the first quarter of 2018. These expanded disclosures will include quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Estimated useful lives of property, plant and equipment | The following table summarizes the estimated useful lives of the Company’s different classes of property, plant and equipment: Years Land improvements 10 to 25 Buildings and structures 10 to 30 Leasehold and building improvements 5 to 40 Machinery and equipment – vehicles 3 to 10 Machinery and equipment – other mining and production 3 to 50 Office furniture and equipment 3 to 10 Mineral interests 20 to 99 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of consideration transferred | A summary of the acquisition-date fair value of the consideration transferred is presented in the table below: Fair Value of Consideration Transferred (in millions) October 3, 2016 Cash paid at closing $ 317.1 Additional cash due at closing 20.6 Fair value of contingent consideration 31.4 Fair value of 35% equity investment 178.7 Total $ 547.8 |
Schedule of recognized amounts of identifiable assets acquired and liabilities assumed | Based upon the final purchase price and the updated valuation, the final purchase price allocation is presented in the table below: Recognized amounts of identifiable assets acquired and liabilities assumed (in millions): Purchase Price Allocation Cash and cash equivalents $ 73.8 Accounts receivable 89.4 Inventories 77.1 Other current assets 13.7 Property, plant and equipment 189.4 Intangible assets 81.2 Investment in equity method investee 24.5 Other noncurrent assets 6.9 Accounts payable (27.1 ) Accrued expenses (40.3 ) Current portion of long-term debt (129.6 ) Other current liabilities (14.0 ) Long-term debt, net of current portion (62.0 ) Deferred income taxes, net (66.0 ) Other noncurrent liabilities (21.9 ) Total identifiable net assets 195.1 Goodwill 352.7 Total fair value of business combination $ 547.8 |
Schedule of identifiable intangible assets acquired | The estimated fair values and weighted average amortization period of the identifiable intangible assets are presented in the table below: Estimated Fair Value (in millions) Weighted-Average Amortization Period (in years) Trade names $ 36.9 11.0 Developed technology 37.5 5.3 Customer relationships 6.8 13.5 Total identifiable intangible assets $ 81.2 8.6 |
Schedule of unaudited combined pro forma results of operations | The following table presents the combined unaudited pro forma results for the full years ended December 31, 2016 and 2015. The pro forma financial information combines the historical results of operations for Produquímica and Compass Minerals as though the acquisition occurred on January 1, 2015. The pro forma information does not purport to represent the actual results of operations that Produquímica and Compass Minerals would have achieved had the companies been combined during the periods presented nor is the information intended to project the future results of operations. Certain adjustments to Produquímica’s historical results have been made to conform to U.S. GAAP, and amounts have been translated to U.S. dollars. Twelve Months Ended, Unaudited Combined Pro Forma Results of Operations (in millions) December 31, 2016 December 31, 2015 Revenues $ 1,381.3 $ 1,421.3 Net earnings $ 108.1 $ 128.0 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following at December 31 (in millions): 2017 2016 Finished goods $ 208.4 $ 206.1 Raw materials and supplies 81.5 74.5 Total inventories $ 289.9 $ 280.6 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment consists of the following at December 31 (in millions): 2017 2016 Land, buildings and structures and leasehold improvements $ 552.5 $ 480.1 Machinery and equipment 942.3 848.2 Office furniture and equipment 53.1 28.3 Mineral interests 173.1 168.5 Construction in progress 213.4 243.6 1,934.4 1,768.7 Less accumulated depreciation and depletion (796.3 ) (676.4 ) Property, plant and equipment, net $ 1,138.1 $ 1,092.3 |
GOODWILL AND OTHER INTANGIBLE32
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The asset value and accumulated amortization as of December 31, 2017 and 2016 for the finite-lived intangibles assets are as follows (in millions): Supply Agreement SOP Production Rights Customer/Distributor Relationships Lease Rights Trade Names Developed Technologies Patents Other Total December 31, 2017 Gross intangible asset $ 28.9 $ 24.3 $ 14.1 $ 1.8 $ 43.3 $ 39.3 $ 16.5 $ 1.4 $ 169.6 Accumulated amortization (4.0 ) (13.7 ) (4.3 ) (0.4 ) (4.8 ) (11.0 ) (5.5 ) (0.6 ) (44.3 ) Net intangible assets $ 24.9 $ 10.6 $ 9.8 $ 1.4 $ 38.5 $ 28.3 $ 11.0 $ 0.8 $ 125.3 Supply Agreement SOP Production Rights Customer/Distributor Relationships Lease Rights Trade Names Developed Technologies Patents Other Total December 31, 2016 Gross intangible asset $ 27.0 $ 24.3 $ 13.8 $ 1.7 $ 43.6 $ 38.9 $ 15.4 $ 2.2 $ 166.9 Accumulated amortization (3.2 ) (12.7 ) (3.0 ) (0.3 ) (0.8 ) (3.2 ) (3.7 ) (0.7 ) (27.6 ) Net intangible assets $ 23.8 $ 11.6 $ 10.8 $ 1.4 $ 42.8 $ 35.7 $ 11.7 $ 1.5 $ 139.3 |
Estimated lives of intangible assets | The estimated lives of the Company’s finite-lived intangible assets are as follows: Intangible asset Estimated Lives Supply agreement 50 years SOP production rights 25 years Patents 10-20 years Developed technology 4-7 years Lease rights 25 years Customer and distributor relationships 10-14 years Trademarks 10 years Noncompete agreements 5 years Trade names 10-11 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income tax provision (benefit) related to earnings | The following table summarizes the Company’s income tax provision related to earnings for the years ended December 31 (in millions): 2017 2016 2015 Current: Federal $ 0.5 $ 27.6 $ 31.7 State (9.8 ) 6.7 7.3 Foreign 85.8 11.6 16.4 Total current 76.5 45.9 55.4 Deferred: Federal (4.4 ) (2.8 ) (0.2 ) State (0.5 ) (0.7 ) — Foreign (11.6 ) (7.8 ) 0.1 Total deferred (16.5 ) (11.3 ) (0.1 ) Total provision for income taxes $ 60.0 $ 34.6 $ 55.3 |
Income tax expense reconciliation | The following table summarizes components of earnings before taxes and shows the tax effects of significant adjustments from the expected tax expense computed at the federal statutory rate for the years ended December 31 (in millions): 2017 2016 2015 Domestic (loss) income $ (41.2 ) $ 123.6 $ 170.6 Foreign income 143.9 73.7 43.9 Earnings before income taxes $ 102.7 $ 197.3 $ 214.5 Computed tax at the U.S. federal statutory rate of 32.7% in 2017 and 35% in 2016 and 2015 33.6 69.1 75.1 Foreign income rate differential, mining, and withholding taxes, net of U.S. federal deduction 1.6 (1.7 ) (1.2 ) Percentage depletion in excess of basis (6.4 ) (8.6 ) (11.2 ) Other domestic tax reserves, net of reversals — — (4.5 ) Domestic manufacturers deduction — (1.4 ) (2.4 ) State income taxes, net of federal income tax benefit 0.8 3.9 5.1 Change in valuation allowance on deferred tax asset (23.9 ) (1.4 ) — Interest expense recognition differences (5.6 ) (5.9 ) (6.1 ) Nontaxable remeasurement gain — (20.2 ) — Tax Cuts and Jobs Act of 2017 46.8 — — Transfer pricing settlement with taxing authorities 13.8 — — Other, net (0.7 ) 0.8 0.5 Provision for income taxes $ 60.0 $ 34.6 $ 55.3 Effective tax rate 58 % 18 % 26 % |
Significant components of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in millions): 2017 2016 Deferred tax assets: Reluz Nordeste Indústria e Comércio Ltda net operating loss carryforwards $ 0.8 $ 1.2 Produquímica Indústria e Comércio S.A. net operating loss carryforwards 12.9 — Other, net 8.0 0.3 Total deferred tax assets before valuation allowance 21.7 1.5 Valuation allowance (9.0 ) — Total noncurrent deferred tax assets: $ 12.7 $ 1.5 Deferred tax assets to be netted with deferred tax liabilities: Net operating loss carryforwards $ 2.3 $ 17.8 Stock-based compensation 2.7 4.0 Derivatives — 8.7 Other, net 9.3 23.9 Total deferred tax assets before valuation allowance 14.3 54.4 Valuation allowance (1.2 ) (33.6 ) Total deferred tax assets to be netted with deferred tax liabilities 13.1 20.8 Deferred tax liabilities: Property, plant and equipment 98.1 101.4 Intangible asset 42.0 49.0 Other, net — 1.2 Total deferred tax liabilities 140.1 151.6 Net deferred tax liabilities $ 127.0 $ 130.8 |
Reconciliation of unrecognized tax benefits | The following table shows a reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions): 2017 2016 2015 Unrecognized tax benefits: Balance at January 1 $ 20.7 $ 18.3 $ 21.8 Additions resulting from current year tax positions 1.3 0.1 1.6 Additions relating to tax positions taken in prior years 51.7 0.5 0.8 Additions relating to current year acquisitions — 2.4 — Reductions due to cash payments — — (0.8 ) Reductions due to settlements (4.5 ) — — Reductions relating to tax positions taken in prior years (1.4 ) — (2.4 ) Reductions due to expiration of tax years (0.4 ) (0.6 ) (2.7 ) Balance at December 31 $ 67.4 $ 20.7 $ 18.3 |
PENSION PLANS AND OTHER BENEF34
PENSION PLANS AND OTHER BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Weighted-average asset allocations | The weighted-average asset allocations by asset category are as follows: Plan Assets at December 31, Asset Category 2017 2016 Cash and cash equivalents 3 % 3 % Blended funds 32 % 30 % Bond funds 45 % 48 % Insurance policy 20 % 19 % Total 100 % 100 % |
Fair value of pension plan assets | The fair value of the Company’s U.K. pension plan assets at December 31, 2017 and 2016 by asset category (see Note 13 for a discussion regarding fair value measurements) are as follows (in millions): Market Value at December 31, 2017 Level One Level Two Level Three Asset category: Cash and cash equivalents (a) $ 2.2 $ 2.2 $ — $ — Blended funds (b) 22.3 — 22.3 — Bond funds (c) : Treasuries 31.2 — 31.2 — Insurance policy (d) 13.4 — — 13.4 Total Pension Assets $ 69.1 $ 2.2 $ 53.5 $ 13.4 Market Value at December 31, 2016 Level One Level Two Level Three Asset category: Cash and cash equivalents (a) $ 2.0 $ 2.0 $ — $ — Blended funds (b) 18.9 — 18.9 — Bond funds (c) : Treasuries 29.5 — 29.5 — Insurance policy (d) 11.9 — — 11.9 Total Pension Assets $ 62.3 $ 2.0 $ 48.4 $ 11.9 (a) The fair value of cash and cash equivalents is its carrying value. (b) The Company is invested in a diversified growth fund. The diversified growth fund is valued at the last traded or official close for the underlying equities and bid or mid for the underlying fixed income securities depending on the portfolio benchmark. Where representative prices are unavailable, underlying fixed income investments are valued based on other observable market-based inputs. (c) This category includes investments in investment-grade fixed-income instruments and funds linked to U.K. treasury notes. The funds are valued using the bid amounts for each fund. All of the Company’s bond fund pension assets are invested in U.K.-linked treasuries as of December 31, 2017 and 2016. (d) The insurance policy has been written by an insurance company with an A+ rating from Standard and Poors. The policy derives its value primarily from its underlying investments which consists of separate funds also managed by the underwriter. The policy’s holdings consist primarily of a unit trust fund, which is valued based on its underlying holdings of equities, fixed income securities, cash and derivative instruments. Those underlying investments are valued at bid price on the last business day of the period when available. Other investments use the last available authorized price of the last business day of the period. Unquoted investments are valued based upon the fund manager’s opinion of fair value based primarily on other observable market-based inputs. Open positions in derivative contracts or foreign currency transactions are included at their mark to market value. Money market instruments are valued based upon amortized cost. Term deposits are valued at their nominal value. |
Changes in level 3 pension plan assets | The changes in Level 3 U.K. pension plan assets for the year ended December 31, 2017 and 2016 were as follows (in millions): Value of Insurance Policy Beginning balance as of January 1, 2016 $ 14.6 Unrealized loss (0.4 ) Currency fluctuation adjustment (2.3 ) Ending balance as of December 31, 2016 $ 11.9 Unrealized gain 0.3 Currency fluctuation adjustment 1.2 Ending balance as of December 31, 2017 $ 13.4 |
Assumptions used in determining pension information | The assumptions used in determining pension information for the plans for the years ended December 31 were as follows: 2017 2016 2015 Discount rate 2.80 % 3.80 % 3.40 % Expected return on plan assets 3.70 % 4.50 % 4.30 % |
Future expected benefit payments | The Company expects to pay the following benefit payments (in millions): Calendar Year Future Expected Benefit Payments 2018 $ 2.8 2019 2.9 2020 3.0 2021 3.1 2022 3.1 2023 – 2027 17.3 |
Pension obligations, plan assets and net funded status | The following table sets forth pension obligations and plan assets for the Company’s defined benefit plan, as of December 31 (in millions): 2017 2016 Change in benefit obligation: Benefit obligation as of January 1 $ 61.7 $ 66.9 Interest cost 1.8 2.3 Actuarial loss 0.2 7.3 Benefits paid (2.6 ) (3.4 ) Currency fluctuation adjustment 5.9 (11.4 ) Benefit obligation as of December 31 67.0 61.7 Change in plan assets: Fair value as of January 1 62.3 66.9 Actual return 2.7 8.8 Company contributions 0.8 1.4 Currency fluctuation adjustment 5.9 (11.4 ) Benefits paid (2.6 ) (3.4 ) Fair value of plan assets as of December 31 69.1 62.3 Overfunded status of the plan $ 2.1 $ 0.6 |
Components of net pension expense | The components of net pension expense were as follows for the years ended December 31 (in millions): 2017 2016 2015 Interest cost on projected benefit obligation $ 1.8 $ 2.3 $ 2.5 Prior service cost (0.1 ) (0.1 ) (0.1 ) Expected return on plan assets (2.4 ) (2.8 ) (2.9 ) Net amortization 0.4 0.4 1.5 Net pension (benefit) expense $ (0.3 ) $ (0.2 ) $ 1.0 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Third-party long-term debt consists of the following at December 31 (in millions): 2017 2016 Term Loans due July 2021 $ 837.4 $ 845.9 Revolving Credit Facility due July 2021 168.9 105.4 4.875% Senior Notes due July 2024 250.0 250.0 Banco Bradesco Loan due February 2017 — 13.2 Banco Votorantim Loan due April 2017 — 12.4 Banco Bradesco Loan due July 2017 — 4.8 Scotiabank Loan due August 2017 — 20.2 Banco Itaú Loans due September 2017 — 15.1 Scotiabank Loan due September 2017 — 15.1 Banco Votorantim Loan due September 2017 — 0.8 Banco Bradesco Loan due October 2017 — 16.8 Rabobank Loan due November 2017 — 22.6 Rabobank Loan due November 2019 21.1 — Banco Itaú Loans due May 2019 to April 2020 1.9 3.1 Financiadora de Estudos e Projetos Loan due November 2023 13.1 7.4 Banco do Brasil Loan due February 2018 0.2 — Banco Santander Loan due September 2019 19.6 — Banco Santander Loan due November 2019 24.1 — Banco Itaú Loan due March 2019 12.4 — Banco Scotiabank Loan due September 2019 20.5 — 1,369.2 1,332.8 Less unamortized debt issuance costs (6.7 ) (7.8 ) Total debt 1,362.5 1,325.0 Less current portion (32.1 ) (130.2 ) Long-term debt $ 1,330.4 $ 1,194.8 |
Future maturities of long-term debt | Future maturities of long-term debt for the years ending December 31, are as follows (in millions): Debt Maturity 2018 $ 32.1 2019 89.2 2020 10.7 2021 983.0 2022 2.2 Thereafter 252.0 Total $ 1,369.2 |
DERIVATIVE FINANCIAL INSTRUME36
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of hedged items | The following tables present the fair value of the Company’s derivatives as of December 31, 2017 , and 2016 (in millions): Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Balance Sheet Location December 31, 2017 Balance Sheet Location December 31, 2017 Commodity contracts Other current assets $ — Accrued expenses $ 1.0 Commodity contracts Other assets — Other noncurrent liabilities 0.4 Swap contracts Other current assets 0.9 Accrued expenses — Swap contracts Other assets 0.4 Other noncurrent liabilities — Total derivatives designated as hedging instruments (a)(b) $ 1.3 $ 1.4 (a) The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets less than $0.1 million of its commodity contracts that are in a receivable position against its contracts in payable positions. (b) The Company has both commodity hedge and foreign currency swap agreements with two counterparties each. Amounts recorded as liabilities for the Company’s commodity contracts are payable to both counterparties, and amounts recorded as assets for the Company’s swap contracts are receivable from both counterparties. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Balance Sheet Location December 31, 2016 Balance Sheet Location December 31, 2016 Commodity contracts Other current assets $ 1.2 Accrued expenses $ 0.3 Commodity contracts Other assets 0.1 Other noncurrent liabilities 0.1 Total derivatives designated as hedging instruments (a) 1.3 0.4 Derivatives not designated as hedging instruments: Swap contracts Other current assets $ — Accrued expenses $ 25.8 Swap contracts Other assets — Other noncurrent liabilities — Total derivatives not designated as hedging instruments — 25.8 Total derivatives (b) $ 1.3 $ 26.2 (a) The Company has master netting agreements with its commodity hedge counterparties and accordingly has netted in its Consolidated Balance Sheets approximately $0.4 million of its commodity contracts that are in a payable position against its contracts in receivable positions. (b) The Company has commodity hedge and foreign currency swap agreements with two and five counterparties, respectively. Amounts recorded as assets for the Company’s commodity contracts are receivable from both counterparties, and amounts recorded as liabilities for the Company’s swap contracts are payable to all five counterparties. |
Other comprehensive income attributable to derivatives | The following tables present activity related to the Company’s other comprehensive income before taxes for the twelve months ended December 31, 2017 and 2016 (in millions): Twelve Months Ended December 31, 2017 Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Commodity contracts Product cost $ 3.0 $ (0.6 ) Swap contracts Interest expense (1.9 ) 1.9 Total $ 1.1 $ 1.3 Twelve Months Ended December 31, 2016 Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified from Accumulated OCI Into Income Effective Portion) Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) Commodity contracts Product cost $ (0.8 ) $ (2.7 ) Total $ (0.8 ) $ (2.7 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Aggregate future minimum annual rentals under lease arrangements | The aggregate future minimum annual rentals under lease arrangements as of December 31, 2017 are as follows (in millions): Operating Leases 2018 $ 13.1 2019 10.4 2020 5.8 2021 2.2 2022 1.5 Thereafter 5.0 Total $ 38.0 |
Aggregate future minimum annual rentals under capital lease arrangements | The aggregate future minimum annual rentals under these lease arrangements as of December 31, 2017 are as follows (in millions): Capital Leases 2018 $ 0.9 2019 0.8 2020 0.9 2021 0.9 2022 0.9 Thereafter 5.2 Total $ 9.6 |
STOCKHOLDERS' EQUITY AND EQUI38
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity and Equity Instruments [Abstract] | |
Weighted average assumptions and fair value for options granted | The weighted average assumptions and fair values for options granted for each of the years ended December 31 is included in the following table. 2017 2016 2015 Fair value of options granted $ 9.54 $ 10.17 $ 14.78 Expected term (years) 4.5 4.5 4.8 Expected volatility 23.2 % 24.4 % 24.9 % Dividend yield 3.5 % 3.3 % 3.1 % Risk-free interest rates 1.8 % 1.2 % 1.6 % |
Stock-based compensation activity | The following is a summary of the Company’s stock option, RSU and PSU activity and related information for the following periods: Stock Options RSUs PSUs Number Weighted-average exercise price Number Weighted-average fair value Number Weighted-average fair value Outstanding at December 31, 2014 278,429 $ 79.23 88,532 $ 76.58 59,627 $ 88.69 Granted 120,956 91.76 21,317 90.94 35,584 100.49 Exercised (a) (33,906 ) 72.53 — — — — Released from restriction (a) — — (15,952 ) 71.69 (10,454 ) 74.49 Cancelled/Expired (12,392 ) 84.71 (2,889 ) 81.43 (7,392 ) 82.46 Outstanding at December 31, 2015 353,087 $ 83.94 91,008 $ 80.65 77,365 $ 96.63 Granted 157,887 70.48 34,975 72.06 43,902 73.86 Exercised (a) (11,377 ) 62.50 — — — — Released from restriction (a) — — (53,983 ) 75.18 (10,258 ) 78.49 Cancelled/Expired (b) (56,842 ) 80.95 (8,220 ) 83.16 (21,998 ) 88.79 Outstanding at December 31, 2016 442,755 $ 80.07 63,780 $ 80.25 89,011 $ 89.43 Granted 227,351 68.00 34,635 68.00 58,878 73.08 Exercised (a) (3,366 ) 76.03 — — — — Released from restriction (a) — — (15,806 ) 84.77 (12,946 ) 105.77 Cancelled/Expired (b) (103,863 ) 76.44 (11,753 ) 71.96 (22,907 ) 86.81 Outstanding at December 31, 2017 562,877 $ 75.89 70,856 $ 74.63 112,036 $ 79.48 (a) Common stock issued for exercised options, vested RSUs and vested and earned PSUs were issued from treasury shares. (b) The performance period for the 2015 PSU grant was completed in 2017 . The Company does not expect to issue any shares in March 2018 when the 2015 PSU grant vests. |
Summary of information about options outstanding and exercisable | The following table summarizes information about options outstanding and exercisable at December 31, 2017 . Options Outstanding Options Exercisable Range of exercise prices Options outstanding Weighted-average remaining contractual life (years) Weighted-average exercise price of options outstanding Options exercisable Weighted-average remaining contractual life (years) Weighted-average exercise price of exercisable options $68.00 - $69.24 195,232 6.3 $ 68.00 — — $ — $69.25 - $71.09 120,117 5.2 70.48 30,471 5.2 70.48 $71.10 - $81.73 84,605 2.0 75.63 84,605 2.0 75.63 $81.74 - $89.47 79,349 2.6 87.04 62,974 2.4 87.00 $89.48 - $93.26 83,574 4.2 91.77 43,162 4.2 91.77 Totals 562,877 4.6 $ 75.89 221,212 3.0 $ 81.31 |
Components of and changes in accumulated other comprehensive income (loss) | The components of and changes in accumulated other comprehensive income (loss) (“AOCI”) for the twelve months ended December 31, 2017 and 2016 are as follows (in millions): Twelve Months Ended December 31, 2017 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ 0.6 $ (3.7 ) $ (101.8 ) $ (104.9 ) Other comprehensive income (loss) before reclassifications (0.6 ) (0.4 ) 28.7 27.7 Amounts reclassified from accumulated other comprehensive loss (0.9 ) 0.2 — (0.7 ) Net current period other comprehensive income (loss) (1.5 ) (0.2 ) 28.7 27.0 Ending balance $ (0.9 ) $ (3.9 ) $ (73.1 ) $ (77.9 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive gain (loss) presented in the table are reflected net of applicable income taxes. Twelve Months Ended December 31, 2016 (a) Gains and (Losses) on Cash Flow Hedges Defined Benefit Pension Foreign Currency Total Beginning balance $ (1.6 ) $ (3.8 ) $ (102.9 ) $ (108.3 ) Other comprehensive income (loss) before reclassifications 0.5 (0.1 ) 1.1 1.5 Amounts reclassified from accumulated other comprehensive loss 1.7 0.2 — 1.9 Net current period other comprehensive income 2.2 0.1 1.1 3.4 Ending balance $ 0.6 $ (3.7 ) $ (101.8 ) $ (104.9 ) (a) With the exception of the cumulative foreign currency translation adjustment, for which no tax effect is recorded, the changes in the components of accumulated other comprehensive gain (loss) presented in the table are reflected net of applicable income taxes. |
Changes in the components of accumulated other comprehensive gain (loss) | Twelve Months Ended December 31, 2017 Amount Reclassified from AOCI Line Item Impacted in the Consolidated Statement of Operations Gains and (losses) on cash flow hedges: Natural gas instruments $ 0.6 Product cost Foreign currency swaps (1.9 ) Interest expense Income tax expense (benefit) 0.4 (0.9 ) Amortization of defined benefit pension: Amortization of loss $ 0.3 Product cost Income tax expense (benefit) (0.1 ) 0.2 Total reclassifications, net of income taxes $ (0.7 ) Twelve Months Ended December 31, 2016 Amount Reclassified from AOCI Line Item Impacted in the Consolidated Statement of Operations Gains and (losses) on cash flow hedges: Natural gas instruments $ (2.7 ) Product cost Income tax expense (benefit) 1.0 (1.7 ) Amortization of defined benefit pension: Amortization of loss $ 0.3 Product cost Income tax expense (benefit) (0.1 ) 0.2 Total reclassifications, net of income taxes $ (1.5 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimated fair values for each type of instrument | The estimated fair values for each type of instrument are presented below (in millions). December 31, 2017 Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 2.2 $ 2.2 $ — $ — Derivatives - foreign currency swaps, net 1.3 — 1.3 — Total Assets $ 3.5 $ 2.2 $ 1.3 $ — Liability Class: Liabilities related to non-qualified savings plan $ (2.2 ) $ (2.2 ) $ — $ — Derivatives - natural gas instruments (1.4 ) — (1.4 ) — Total Liabilities $ (3.6 ) $ (2.2 ) $ (1.4 ) $ — (a) Includes mutual fund investments of approximately 30% in the common stock of large-cap U.S. companies, 15% in the common stock of small to mid-cap U.S. companies, 5% in the common stock of international companies, 10% in bond funds, 20% in short-term investments and 20% in blended funds. December 31, 2016 Level One Level Two Level Three Asset Class: Mutual fund investments in a non-qualified savings plan (a) $ 1.8 $ 1.8 $ — $ — Derivatives - natural gas instruments 0.9 — 0.9 — Trading securities 1.8 — 1.8 — Total Assets $ 4.5 $ 1.8 $ 2.7 $ — Liability Class: Liabilities related to non-qualified savings plan $ (1.8 ) $ (1.8 ) $ — $ — Derivatives - foreign currency swaps (25.8 ) — (25.8 ) — Total Liabilities $ (27.6 ) $ (1.8 ) $ (25.8 ) $ — (a) Includes mutual fund investments of approximately 25% in the common stock of large-cap U.S. companies, 10% in the common stock of small to mid-cap U.S. companies, 5% in the common stock of international companies, 5% in bond funds, 40% in short-term investments and 15% in blended funds. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment information | Segment information as of and for the years ended December 31, is as follows (in millions): 2017 Salt Plant Nutrition North America Plant Nutrition South America Corporate& Other (a) Total Sales to external customers $ 769.2 $ 210.0 $ 375.0 $ 10.2 $ 1,364.4 Intersegment sales — 6.5 — (6.5 ) — Shipping and handling cost 220.6 28.1 18.8 — 267.5 Operating earnings (loss) (b) 138.0 27.7 49.1 (55.6 ) 159.2 Depreciation, depletion and amortization 55.0 36.9 22.6 7.7 122.2 Total assets 1,030.6 601.1 808.0 131.3 2,571.0 Capital expenditures 65.8 31.9 11.3 5.1 114.1 2016 Salt Plant Nutrition North America Plant Nutrition South America Corporate& Other (a) Total Sales to external customers $ 811.9 $ 203.0 $ 113.5 $ 9.6 $ 1,138.0 Intersegment sales — 5.2 — (5.2 ) — Shipping and handling cost 214.5 25.0 5.4 — 244.9 Operating earnings (loss) 200.6 21.1 7.4 (54.5 ) 174.6 Depreciation, depletion and amortization 46.7 33.4 5.0 5.2 90.3 Total assets 980.3 592.3 844.9 49.0 2,466.5 Capital expenditures 103.4 63.6 2.1 13.1 182.2 2015 Salt Plant Nutrition North America Plant Nutrition South America Corporate& Other (a) Total Sales to external customers $ 849.0 $ 238.4 $ — $ 11.3 $ 1,098.7 Intersegment sales 0.1 7.7 — (7.8 ) — Shipping and handling cost 239.1 22.4 — — 261.5 Operating earnings (loss) 215.2 57.9 — (51.7 ) 221.4 Depreciation, depletion and amortization 43.9 29.8 — 4.6 78.3 Total assets (c) 896.5 679.7 — 48.6 1,624.8 Capital expenditures 106.5 92.8 — 18.3 217.6 (a) Corporate and Other includes corporate entities, records management operations and other incidental operations and eliminations. Operating earnings (loss) for corporate and other includes indirect corporate overhead including costs for general corporate governance and oversight, as well as costs for the human resources, information technology and finance functions. (b) In 2017, operating results include $4.3 million of restructuring charges. (c) In 2015, the Company’s equity investment in Produquímica is included in total assets for its Plant Nutrition North America segment. |
Schedule of revenue from external customers and long-lived assets | Financial information relating to the Company’s operations by geographic area for the years ended December 31 is as follows (in millions): Sales 2017 2016 2015 United States (a) $ 718.0 $ 762.6 $ 834.6 Canada 217.7 212.5 198.4 Brazil 362.1 111.7 — United Kingdom 43.3 40.6 56.8 Other 23.3 10.6 8.9 Total sales $ 1,364.4 $ 1,138.0 $ 1,098.7 (a) United States sales exclude product sold to foreign customers at U.S. ports. Financial information relating to the Company’s long-lived assets, including deferred financing costs and other long-lived assets but excluding the investments related to the nonqualified retirement plan and pension plan assets, by geographic area as of December 31 (in millions): Long-Lived Assets 2017 2016 2015 United States $ 618.5 $ 568.5 $ 498.0 Canada 515.9 461.5 394.3 United Kingdom 69.9 66.8 95.7 Brazil 618.4 645.8 116.4 Other 6.5 6.5 6.5 Total long-lived assets $ 1,829.2 $ 1,749.1 $ 1,110.9 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | The following table sets forth the computation of basic and diluted earnings per common share (in millions, except for share and per share data): Year ended December 31, 2017 2016 2015 Numerator: Net earnings $ 42.7 $ 162.7 $ 159.2 Less: Net earnings allocated to participating securities (a) (0.5 ) (0.8 ) (1.0 ) Net earnings available to common shareholders $ 42.2 $ 161.9 $ 158.2 Denominator (in thousands): Weighted average common shares outstanding, shares for basic earnings per share (b) 33,819 33,776 33,677 Weighted average equity awards outstanding 1 4 15 Shares for diluted earnings per share 33,820 33,780 33,692 Net earnings per common share, basic $ 1.25 $ 4.79 $ 4.70 Net earnings per common share, diluted $ 1.25 $ 4.79 $ 4.69 (a) Participating securities include PSUs and RSUs that receive non-forfeitable dividends. Net earnings were allocated to participating securities of 166,000 , 164,000 and 198,000 for 2017 , 2016 and 2015 , respectively. (b) For the calculation of diluted earnings per share, the Company uses the more dilutive of either the treasury stock method or the two-class method to determine the weighted average number of outstanding common shares. In addition, the Company had 640,000 , 509,000 and 432,000 weighted options outstanding for 2017 , 2016 and 2015 , respectively, which were anti-dilutive and therefore not included in the diluted earnings per share calculation. |
QUARTERLY RESULTS (Unaudited) (
QUARTERLY RESULTS (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information | Quarter First Second Third Fourth 2017 Sales $ 387.8 $ 228.0 $ 290.7 $ 457.9 Gross profit 81.6 44.9 76.1 124.0 Net earnings (loss) (a) 21.5 (6.4 ) 32.0 (4.4 ) Net earnings (loss) per share, basic (a) 0.63 (0.19 ) 0.94 (0.13 ) Net earnings (loss) per share, diluted (a) 0.63 (0.19 ) 0.94 (0.13 ) Basic weighted-average shares outstanding (in thousands) 33,802 33,823 33,825 33,828 Diluted weighted-average shares outstanding (in thousands) 33,803 33,823 33,825 33,828 2016 Sales $ 345.7 $ 169.5 $ 179.6 $ 443.2 Gross profit 102.6 41.3 45.2 110.4 Net earnings (b) 49.7 6.3 9.1 97.6 Net earnings per share, basic (b) 1.47 0.18 0.27 2.88 Net earnings per share, diluted (b) 1.46 0.18 0.27 2.87 Basic weighted-average shares outstanding (in thousands) 33,746 33,784 33,786 33,788 Diluted weighted-average shares outstanding (in thousands) 33,748 33,787 33,789 33,793 (a) In connection with U.S. tax reform, the Company recorded a net charge of $46.8 million during the fourth quarter of 2017. The Company released $18 million and $7 million in the third and fourth quarters of 2017, respectively, related to Brazilian valuation allowances that were acquired in the acquisition of Produquímica. See Note 7 for a discussion of tax-related items that impacted 2017 results. (b) In the fourth quarter of 2016, the Company recognized a gain of $59.3 million on the remeasurement of its equity investment as part of the acquisition of the remaining 65% of Produquímica’s equity. |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 03, 2016 | |
Foreign Currency [Abstract] | ||||
Gain (loss) on foreign exchange of intercompany notes of long-term nature | $ 5.8 | $ 15.8 | $ (33.7) | |
Foreign currency exchange expense (income) | 7.1 | 0.1 | $ (13.9) | |
Other Noncurrent Assets | ||||
Inventories of spare parts related to long term assets | 11.8 | 11.4 | ||
Investments in marketable securities relating to deferred compensation arrangement | 2.2 | 1.8 | ||
Income tax receivable | 49.3 | |||
Environmental Costs [Abstract] | ||||
Environmental accrual | 0 | 0 | ||
Fermavi [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Ownership interest in investment | 50.00% | |||
Basis difference | $ 17 | $ 18 | ||
Produquímica [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Percentage of equity interest prior to acquisition | 35.00% | |||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful lives of intangible assets | 4 years | |||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful lives of intangible assets | 50 years |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other Current Assets & Property, Plant, & Equipment) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)extension_period | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Other Current Assets | ||||
Loss on inventory write-down | $ 2.2 | |||
Capitalized computer software costs | $ 33.9 | $ 29.5 | $ 33.9 | |
Period of amortization of capitalized computer software costs | 5 years | |||
Amortization of capitalized computer software costs | $ 4.7 | $ 3.1 | $ 2.2 | |
Land Improvements [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 10 years | |||
Land Improvements [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 25 years | |||
Buildings and Structures [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 10 years | |||
Buildings and Structures [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 30 years | |||
Leasehold and Building Improvements [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 5 years | |||
Leasehold and Building Improvements [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 40 years | |||
Machinery and Equipment - Vehicles [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 3 years | |||
Machinery and Equipment - Vehicles [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 10 years | |||
Machinery and Equipment - Other Mining and Production [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 3 years | |||
Machinery and Equipment - Other Mining and Production [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 50 years | |||
Office Furniture and Equipment [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 3 years | |||
Office Furniture and Equipment [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 10 years | |||
Mineral Interests [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 20 years | |||
Mineral Interests [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 99 years | |||
Cote Blanche Mine [Member] | ||||
Other Current Assets | ||||
Lease expiration date | Dec. 31, 2060 | |||
Number of renewal periods | extension_period | 2 | |||
Lease renewal period | 25 years | |||
Goderich Mine [Member] | ||||
Other Current Assets | ||||
Lease expiration date | Dec. 31, 2022 | |||
Lease renew date | Dec. 31, 2043 | |||
Leased Mineral Interests [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 92 years | |||
Owned Mineral Properties [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 39 years | |||
Typical Maximum Life Leasehold and Building Improvements [Member] | Minimum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 5 years | |||
Typical Maximum Life Leasehold and Building Improvements [Member] | Maximum [Member] | ||||
Other Current Assets | ||||
Estimated useful life | 20 years | |||
U.S Taxing Authorities [Member] | ||||
Other Current Assets | ||||
Tax refund from settlement | $ 21.8 | |||
Property, Plant and Equipment [Member] | Other Current Assets [Member] | ||||
Other Current Assets | ||||
Assets held-for-sale | 2.8 | |||
Water Rights [Member] | Other Current Assets [Member] | ||||
Other Current Assets | ||||
Assets held-for-sale | $ 5.2 |
ACQUISITION (Additional Informa
ACQUISITION (Additional Information) (Details) BRL in Millions | Oct. 03, 2016USD ($)Business | Dec. 23, 2015USD ($) | Dec. 23, 2015BRL | Oct. 31, 2016Business | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||
Aggregate purchase price | $ 0 | $ 4,700,000 | $ 116,400,000 | |||||||||||||
Gain on settlement of acquisition-related contingent consideration | (1,900,000) | 0 | 0 | |||||||||||||
Gain from remeasurement of equity method investment | 0 | 59,300,000 | 0 | |||||||||||||
Net earnings | $ (4,400,000) | $ 32,000,000 | $ (6,400,000) | $ 21,500,000 | $ 97,600,000 | $ 9,100,000 | $ 6,300,000 | $ 49,700,000 | 42,700,000 | 162,700,000 | 159,200,000 | |||||
Goodwill | 405,000,000 | 412,200,000 | 405,000,000 | 412,200,000 | ||||||||||||
Plant Nutrition South America [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 341,600,000 | $ 352,800,000 | $ 341,600,000 | $ 352,800,000 | ||||||||||||
New Tranche Term Loans Due July 2021 [Member] | Secured Debt [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Face amount | $ 450,000,000 | |||||||||||||||
Produquímica [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Interest acquired | 65.00% | 65.00% | 65.00% | |||||||||||||
Number of primary businesses | Business | 2 | |||||||||||||||
Fair value of contingent consideration | $ 31,400,000 | |||||||||||||||
Percentage of equity interest prior to acquisition | 35.00% | |||||||||||||||
Fair value of equity interest prior to acquisition | $ 178,700,000 | |||||||||||||||
Gain from remeasurement of equity method investment | $ 59,300,000 | |||||||||||||||
Decrease in goodwill | $ 3,600,000 | |||||||||||||||
Decrease in other noncurrent liabilities | 4,400,000 | |||||||||||||||
Increase in net deferred income taxes | $ 800,000 | |||||||||||||||
Goodwill | 352,700,000 | |||||||||||||||
Accounts receivable contractual amount in excess of fair value | 8,000,000 | |||||||||||||||
Revenue | $ 113,500,000 | |||||||||||||||
Net income | 3,600,000 | |||||||||||||||
Acquisition costs | $ 1,800,000 | |||||||||||||||
Produquímica [Member] | Increase in Depreciation Expense [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Net earnings | $ (1,900,000) | |||||||||||||||
Produquímica [Member] | Plant Nutrition South America [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Gain on settlement of acquisition-related contingent consideration | $ (1,900,000) | |||||||||||||||
Goodwill | $ 352,700,000 | |||||||||||||||
Produquímica [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Ownership interest in investment | 35.00% | 35.00% | ||||||||||||||
Aggregate purchase price | $ 114,100,000 | BRL 452.4 | $ 4,700,000 | |||||||||||||
Number of primary businesses | Business | 2 | |||||||||||||||
Produquímica [Member] | Term Loan E Due May 2017 [Member] | Term Loan [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Face amount | $ 100,000,000 |
ACQUISITION (Fair Value of Cons
ACQUISITION (Fair Value of Consideration Transferred) (Details) - Produquímica [Member] $ in Millions | Oct. 03, 2016USD ($) |
Business Acquisition [Line Items] | |
Cash paid at closing | $ 317.1 |
Additional cash due at closing | 20.6 |
Fair value of contingent consideration | 31.4 |
Fair value of 35% equity investment | 178.7 |
Total | $ 547.8 |
ACQUISITION (Assets Acquired an
ACQUISITION (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 03, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 405 | $ 412.2 | |
Produquímica [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 73.8 | ||
Accounts receivable | 89.4 | ||
Inventories | 77.1 | ||
Other current assets | 13.7 | ||
Property, plant and equipment | 189.4 | ||
Intangible assets | 81.2 | ||
Investment in equity method investee | 24.5 | ||
Other noncurrent assets | 6.9 | ||
Accounts payable | (27.1) | ||
Accrued expenses | (40.3) | ||
Current portion of long-term debt | (129.6) | ||
Other current liabilities | (14) | ||
Long-term debt, net of current portion | (62) | ||
Deferred income taxes, net | (66) | ||
Other noncurrent liabilities | (21.9) | ||
Total identifiable net assets | 195.1 | ||
Goodwill | 352.7 | ||
Total fair value of business combination | $ 547.8 |
ACQUISITION (Identifiable Intan
ACQUISITION (Identifiable Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Oct. 03, 2016 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in years) | 19 years | |
Produquímica [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value | $ 81.2 | |
Weighted-Average Amortization Period (in years) | 8 years 7 months 6 days | |
Produquímica [Member] | Trade Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value | $ 36.9 | |
Weighted-Average Amortization Period (in years) | 11 years | |
Produquímica [Member] | Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value | $ 37.5 | |
Weighted-Average Amortization Period (in years) | 5 years 3 months 18 days | |
Produquímica [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair value | $ 6.8 | |
Weighted-Average Amortization Period (in years) | 13 years 6 months |
ACQUISITION (Unaudited Combined
ACQUISITION (Unaudited Combined Pro Forma Results of Operations) (Details) - Produquímica [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Revenues | $ 1,381.3 | $ 1,421.3 |
Net earnings | $ 108.1 | $ 128 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 208.4 | $ 206.1 |
Raw materials and supplies | 81.5 | 74.5 |
Total inventories | $ 289.9 | $ 280.6 |
PROPERTY, PLANT AND EQUIPMENT51
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,934.4 | $ 1,768.7 |
Less accumulated depreciation and depletion | (796.3) | (676.4) |
Property, plant and equipment, net | 1,138.1 | 1,092.3 |
Property, plant and equipment under capital leases | 7.2 | 7.3 |
Property, plant and equipment under capital leases, accumulated depreciation | 2.6 | 2.2 |
Land, Buildings and Structures and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 552.5 | 480.1 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 942.3 | 848.2 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 53.1 | 28.3 |
Mineral Interests [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 173.1 | 168.5 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 213.4 | $ 243.6 |
GOODWILL AND OTHER INTANGIBLE52
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | $ 169.6 | $ 166.9 |
Accumulated amortization | (44.3) | (27.6) |
Net intangible assets | 125.3 | 139.3 |
Supply Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 28.9 | 27 |
Accumulated amortization | (4) | (3.2) |
Net intangible assets | 24.9 | 23.8 |
SOP Production Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 24.3 | 24.3 |
Accumulated amortization | (13.7) | (12.7) |
Net intangible assets | 10.6 | 11.6 |
Customer and Distributor Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 14.1 | 13.8 |
Accumulated amortization | (4.3) | (3) |
Net intangible assets | 9.8 | 10.8 |
Lease Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 1.8 | 1.7 |
Accumulated amortization | (0.4) | (0.3) |
Net intangible assets | 1.4 | 1.4 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 43.3 | 43.6 |
Accumulated amortization | (4.8) | (0.8) |
Net intangible assets | 38.5 | 42.8 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 39.3 | 38.9 |
Accumulated amortization | (11) | (3.2) |
Net intangible assets | 28.3 | 35.7 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 16.5 | 15.4 |
Accumulated amortization | (5.5) | (3.7) |
Net intangible assets | 11 | 11.7 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible asset | 1.4 | 2.2 |
Accumulated amortization | (0.6) | (0.7) |
Net intangible assets | $ 0.8 | $ 1.5 |
GOODWILL AND OTHER INTANGIBLE53
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Estimated Useful Life) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 4 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 50 years |
Supply Agreement [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 50 years |
SOP Production Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 25 years |
Patents [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Patents [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 20 years |
Developed Technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 4 years |
Developed Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 7 years |
Lease Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 25 years |
Customer and Distributor Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Customer and Distributor Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 14 years |
Trademarks [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Noncompete Agreements [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Trade Names [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Trade Names [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 11 years |
GOODWILL AND OTHER INTANGIBLE54
GOODWILL AND OTHER INTANGIBLE ASSETS (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 16.2 | $ 7 | $ 4.4 | |
Projected amortization expense over the next 5 years [Abstract] | ||||
Projected amortization expense, minimum | 10 | |||
Projected amortization expense, maximum | $ 16 | |||
Remaining amortization period | 5 years | |||
Weighted-Average Amortization Period (in years) | 19 years | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment loss | $ 0 | 3.1 | $ 0 | |
Goodwill | $ 412.2 | 405 | 412.2 | |
Plant Nutrition North America [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 53.6 | 57.3 | 53.6 | |
Plant Nutrition South America [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Goodwill | 352.8 | 341.6 | 352.8 | |
Water Rights [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 17.7 | 17.7 | 17.7 | |
Trade Name [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets | 0.6 | $ 0.6 | $ 0.6 | |
Wolf Trax Trade Name [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment loss | $ 3.1 |
INCOME TAXES (Additional Inform
INCOME TAXES (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||
Tax cuts and jobs act of 2017, provisional income tax expense (benefit) | $ 46.8 | |||
Tax cuts and jobs act of 2017, transition tax for accumulated foreign earnings, provisional income tax expense | 55.2 | |||
Tax cuts and jobs act of 2017, change in tax rate, deferred tax liability, provisional income tax expense | 8.4 | |||
Operating Loss Carryforwards [Line Items] | ||||
Decrease in valuation allowance | $ 25 | |||
Valuation allowance | 10.2 | 10.2 | $ 33.6 | |
Unrecognized tax benefits that would impact the effective tax rate | 17.4 | 17.4 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Reductions due to expiration of tax years | 0.4 | 0.4 | $ 0.6 | $ 2.7 |
Resolution with Various Taxing Authorities [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Significant decrease in unrecognized Tax Benefits | 0.3 | $ 0.3 | ||
U.S. Federal [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Years open and subject to examination | 2,012 | |||
State [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Years open and subject to examination | 2,002 | |||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 0.7 | $ 0.7 | ||
Expiration dates | Dec. 31, 2033 | |||
Foreign Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 46.1 | $ 46.1 | ||
Foreign Federal 2033 [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 5.7 | $ 5.7 | ||
Expiration dates | Dec. 31, 2033 |
INCOME TAXES (Income Tax Provis
INCOME TAXES (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 0.5 | $ 27.6 | $ 31.7 |
State | (9.8) | 6.7 | 7.3 |
Foreign | 85.8 | 11.6 | 16.4 |
Total current | 76.5 | 45.9 | 55.4 |
Deferred: | |||
Federal | (4.4) | (2.8) | (0.2) |
State | (0.5) | (0.7) | 0 |
Foreign | (11.6) | (7.8) | 0.1 |
Total deferred | (16.5) | (11.3) | (0.1) |
Total provision for income taxes | $ 60 | $ 34.6 | $ 55.3 |
INCOME TAXES (Components of Ear
INCOME TAXES (Components of Earnings Before Taxes and Tax Effect) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic (loss) income | $ (41.2) | $ 123.6 | $ 170.6 |
Foreign income | 143.9 | 73.7 | 43.9 |
Earnings before income taxes | 102.7 | 197.3 | 214.5 |
Computed tax at the U.S. federal statutory rate of 32.7% in 2017 and 35% in 2016 and 2015 | 33.6 | 69.1 | 75.1 |
Foreign income rate differential, mining, and withholding taxes, net of U.S. federal deduction | 1.6 | (1.7) | (1.2) |
Percentage depletion in excess of basis | (6.4) | (8.6) | (11.2) |
Other domestic tax reserves, net of reversals | 0 | 0 | (4.5) |
Domestic manufacturers deduction | 0 | (1.4) | (2.4) |
State income taxes, net of federal income tax benefit | 0.8 | 3.9 | 5.1 |
Change in valuation allowance on deferred tax asset | (23.9) | (1.4) | 0 |
Interest expense recognition differences | (5.6) | (5.9) | (6.1) |
Nontaxable remeasurement gain | 0 | (20.2) | 0 |
Tax Cuts and Jobs Act of 2017 | 46.8 | 0 | 0 |
Transfer pricing settlement with taxing authorities | 13.8 | 0 | 0 |
Other, net | (0.7) | 0.8 | 0.5 |
Total provision for income taxes | $ 60 | $ 34.6 | $ 55.3 |
Effective tax rate | 58.00% | 18.00% | 26.00% |
Federal statutory tax rate | 32.70% | 35.00% | 35.00% |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Valuation allowance | $ (10.2) | $ (33.6) |
Deferred tax liabilities: | ||
Property, plant and equipment | 98.1 | 101.4 |
Intangible asset | 42 | 49 |
Other, net | 0 | 1.2 |
Total deferred tax liabilities | 140.1 | 151.6 |
Net deferred tax liabilities | 127 | 130.8 |
Deferred Tax Asset Netting Status, Not To Be Netted [Member] | ||
Deferred tax assets: | ||
Other, net | 8 | 0.3 |
Total deferred tax assets | 21.7 | 1.5 |
Valuation allowance | (9) | 0 |
Total deferred tax assets to be netted with deferred tax liabilities | 12.7 | 1.5 |
Deferred Tax Asset Netting Status, Not To Be Netted [Member] | Subsidiaries [Member] | Reluz Nordeste Industria E Comercio Ltda [Member] | ||
Deferred tax assets: | ||
Net operating loss carryforwards | 0.8 | 1.2 |
Deferred Tax Asset Netting Status, Not To Be Netted [Member] | Subsidiaries [Member] | Produquimica Industria E Comercio S.A. [Member] | ||
Deferred tax assets: | ||
Net operating loss carryforwards | 12.9 | 0 |
Deferred Tax Asset Netting Status, To Be Netted [Member] | ||
Deferred tax assets: | ||
Net operating loss carryforwards | 2.3 | 17.8 |
Stock-based compensation | 2.7 | 4 |
Derivatives | 0 | 8.7 |
Other, net | 9.3 | 23.9 |
Total deferred tax assets | 14.3 | 54.4 |
Valuation allowance | (1.2) | (33.6) |
Total deferred tax assets to be netted with deferred tax liabilities | $ 13.1 | $ 20.8 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrecognized tax benefits [Roll forward] | ||||
Balance at January 1 | $ 20.7 | $ 18.3 | $ 21.8 | |
Additions resulting from current year tax positions | 1.3 | 0.1 | 1.6 | |
Additions relating to tax positions taken in prior years | 51.7 | 0.5 | 0.8 | |
Additions relating to current year acquisitions | 0 | 2.4 | 0 | |
Reductions due to cash payments | 0 | 0 | (0.8) | |
Reductions due to settlements | (4.5) | 0 | 0 | |
Reductions relating to tax positions taken in prior years | (1.4) | 0 | (2.4) | |
Reductions due to expiration of tax years | $ (0.4) | (0.4) | (0.6) | (2.7) |
Balance at December 31 | $ 67.4 | $ 67.4 | $ 20.7 | $ 18.3 |
INCOME TAXES (Income Tax Examin
INCOME TAXES (Income Tax Examination Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Accruals of interest and penalties, net of reversals | $ 11.9 | $ 0.9 | $ 0.2 | |
Accrued interest and penalties | $ 18 | 18 | $ 6.3 | |
Tax cuts and jobs act of 2017, outside basis differences excluded form undistributed earnings | 59.3 | 59.3 | ||
Intercompany cash payments for tax settlements | 85.7 | |||
Tax Year 2007 Through 2008 [Member] | ||||
Income Tax Examination [Line Items] | ||||
Total amount of reassessment including penalties and interest that are effectively resolved | 34.2 | 34.2 | ||
Canadian Provincial [Member] | ||||
Income Tax Examination [Line Items] | ||||
Total reassessments including interest | 106 | 106 | ||
Amount of security posted in the form of a performance bond | 66.9 | 66.9 | ||
Amount of security posted in the form of cash | 39.1 | $ 39.1 | ||
Canadian Provincial [Member] | Minimum [Member] | ||||
Income Tax Examination [Line Items] | ||||
Year under examination | 2,002 | |||
Canadian Provincial [Member] | Maximum [Member] | ||||
Income Tax Examination [Line Items] | ||||
Year under examination | 2,012 | |||
Canadian and Provincial [Member] | Tax Year 2004 Through 2006 [Member] | ||||
Income Tax Examination [Line Items] | ||||
Total amount of reassessment including penalties and interest that are effectively resolved | 94.7 | $ 94.7 | ||
Canadian and Provincial [Member] | Tax Year 2007 Through 2012 [Member] | ||||
Income Tax Examination [Line Items] | ||||
Increase to tax expense from settlement | $ 13.8 | |||
Canadian and Provincial [Member] | Minimum [Member] | Tax Year 2004 Through 2006 [Member] | ||||
Income Tax Examination [Line Items] | ||||
Year under examination | 2,004 | |||
Canadian and Provincial [Member] | Maximum [Member] | Tax Year 2004 Through 2006 [Member] | ||||
Income Tax Examination [Line Items] | ||||
Year under examination | 2,006 | |||
Foreign Federal [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax liability (refund) from settlement | 23.4 | $ 23.4 | ||
U.S Taxing Authorities [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax liability (refund) from settlement | $ (21.8) | $ (21.8) |
PENSION PLANS AND OTHER BENEF61
PENSION PLANS AND OTHER BENEFITS (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts recognized in accumulated other comprehensive income, net of tax [Abstract] | |||
Other comprehensive income (loss) related to foreign exchange | $ 28.7 | $ 1.1 | $ (98.4) |
Other comprehensive income (loss) related to actuarial gains (losses), net of tax | (0.2) | 0.1 | 5.2 |
Defined contribution and pre-tax savings plans [Abstract] | |||
Expense attributable to all Savings Plans | $ 13.1 | 10.9 | 8.9 |
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, year the plan closed to new participants | 1,992 | ||
Defined Benefit Plan, date future benefits cease to accrue for remaining active employee participants | Dec. 1, 2008 | ||
Amounts recognized in accumulated other comprehensive income, net of tax [Abstract] | |||
Actuarial net losses recognized in accumulated other comprehensive income, net of tax | $ 3.9 | 3.7 | |
Accumulated other comprehensive income (loss) before adjustment of prior service costs | (5.4) | (5.1) | |
Accumulated other comprehensive (income) loss related to prior service cost net of tax | 1.5 | 1.4 | |
Other comprehensive income (loss) related to amortization of loss, net of tax | (0.3) | (0.3) | (1.2) |
Other comprehensive (income) loss related to prior service cost, net of tax | 0.1 | 0.1 | 0.1 |
Other comprehensive income (loss) related to foreign exchange | 0.5 | (0.9) | (0.4) |
Other comprehensive income (loss) related to actuarial gains (losses), net of tax | 1 | (3.7) | |
Expected losses to be recognized in net periodic benefit costs in next fiscal year | 0.2 | ||
Expected amortization of losses in next fiscal year | 0.3 | ||
Expected amortization of prior service cost in next fiscal year | 0.1 | ||
Net periodic (benefit) cost expected in next fiscal year | (0.7) | ||
Estimated employer contributions, next fiscal year [Abstract] | |||
Estimated employer contributions, next fiscal year | 0.7 | ||
Amounts recognized in balance sheet [Abstract] | |||
Underfunded plan status recorded in accrued expenses | 2.1 | 0.6 | |
Accumulated benefit obligation | $ 67 | 61.7 | |
Period of amortization of pension benefit obligations | 5 years | ||
Defined contribution and pre-tax savings plans [Abstract] | |||
Investments in marketable securities relating to deferred compensation arrangement | $ 2.2 | 1.8 | |
Compensation expense (reduction) recorded for deferred compensation arrangement | 0 | 0 | 0 |
Investment income on deferred compensation arrangement | $ 0 | $ 0 | $ 0 |
Pension Plan [Member] | Foreign Plan [Member] | Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (in hundredths) | 75.00% | ||
Pension Plan [Member] | Foreign Plan [Member] | Bond Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (in hundredths) | 25.00% |
PENSION PLANS AND OTHER BENEF62
PENSION PLANS AND OTHER BENEFITS (Weighted-Average Asset Allocations and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 100.00% | 100.00% |
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 69.1 | $ 62.3 |
Level One [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 2.2 | 2 |
Level Two [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 53.5 | 48.4 |
Level Three [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 13.4 | $ 11.9 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 3.00% | 3.00% |
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 2.2 | $ 2 |
Cash and Cash Equivalents [Member] | Level One [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 2.2 | 2 |
Cash and Cash Equivalents [Member] | Level Two [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 0 | 0 |
Cash and Cash Equivalents [Member] | Level Three [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 0 | $ 0 |
Blended Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 32.00% | 30.00% |
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 22.3 | $ 18.9 |
Blended Funds [Member] | Level One [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 0 | 0 |
Blended Funds [Member] | Level Two [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 22.3 | 18.9 |
Blended Funds [Member] | Level Three [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 0 | $ 0 |
Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 45.00% | 48.00% |
Bond Funds: Treasuries [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 31.2 | $ 29.5 |
Bond Funds: Treasuries [Member] | Level One [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 0 | 0 |
Bond Funds: Treasuries [Member] | Level Two [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 31.2 | 29.5 |
Bond Funds: Treasuries [Member] | Level Three [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 0 | $ 0 |
Insurance Policy [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 20.00% | 19.00% |
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 13.4 | $ 11.9 |
Insurance Policy [Member] | Level One [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 0 | 0 |
Insurance Policy [Member] | Level Two [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | 0 | 0 |
Insurance Policy [Member] | Level Three [Member] | ||
Fair value of pension plan assets [Abstract] | ||
Total Pension Assets | $ 13.4 | $ 11.9 |
PENSION PLANS AND OTHER BENEF63
PENSION PLANS AND OTHER BENEFITS (Summary of Changes in Level 3 Pension Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change In Fair Value Of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Beginning balance | $ 62.3 | $ 66.9 |
Currency fluctuation adjustment | 5.9 | (11.4) |
Ending balance | 69.1 | 62.3 |
Foreign Plan [Member] | Pension Plan [Member] | Level Three [Member] | ||
Defined Benefit Plan, Change In Fair Value Of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Beginning balance | 11.9 | 14.6 |
Unrealized gain (loss) | 0.3 | (0.4) |
Currency fluctuation adjustment | 1.2 | (2.3) |
Ending balance | $ 13.4 | $ 11.9 |
PENSION PLANS AND OTHER BENEF64
PENSION PLANS AND OTHER BENEFITS (Summary of Assumptions Used in Calculating Net Periodic Benefit Costs) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions used in calculating net periodic benefit cost [Abstract] | |||
Discount rate | 2.80% | 3.80% | 3.40% |
Expected return on plan assets | 3.70% | 4.50% | 4.30% |
PENSION PLANS AND OTHER BENEF65
PENSION PLANS AND OTHER BENEFITS (Summary of Future Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Future expected benefit payments [Abstract] | |
2,018 | $ 2.8 |
2,019 | 2.9 |
2,020 | 3 |
2,021 | 3.1 |
2,022 | 3.1 |
2023 – 2027 | $ 17.3 |
PENSION PLANS AND OTHER BENEF66
PENSION PLANS AND OTHER BENEFITS (Summary of Changes in Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | |||
Benefit obligation as of January 1 | $ 61.7 | $ 66.9 | |
Interest cost | 1.8 | 2.3 | $ 2.5 |
Actuarial loss | 0.2 | 7.3 | |
Benefits paid | (2.6) | (3.4) | |
Currency fluctuation adjustment | 5.9 | (11.4) | |
Benefit obligation as of December 31 | 67 | 61.7 | 66.9 |
Change in plan assets: | |||
Beginning balance | 62.3 | 66.9 | |
Actual return | 2.7 | 8.8 | |
Company contributions | 0.8 | 1.4 | |
Currency fluctuation adjustment | 5.9 | (11.4) | |
Benefits paid | (2.6) | (3.4) | |
Ending balance | 69.1 | 62.3 | $ 66.9 |
Overfunded status of the plan | $ 2.1 | $ 0.6 |
PENSION PLANS AND OTHER BENEF67
PENSION PLANS AND OTHER BENEFITS (Summary of Components of Net Pension Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of net pension expense [Abstract] | |||
Interest cost on projected benefit obligation | $ 1.8 | $ 2.3 | $ 2.5 |
Prior service cost | (0.1) | (0.1) | (0.1) |
Expected return on plan assets | (2.4) | (2.8) | (2.9) |
Net amortization | 0.4 | 0.4 | 1.5 |
Net pension (benefit) expense | $ (0.3) | $ (0.2) | $ 1 |
LONG TERM DEBT (Additional Info
LONG TERM DEBT (Additional Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,369,200,000 | $ 1,332,800,000 | ||
Proceeds from issuance of long-term debt | 98,700,000 | 850,900,000 | $ 100,000,000 | |
Revolving Credit Facility [Member] | Revolving Credit Facility Due July 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of facility that may be drawn in Canadian dollars | 40,000,000 | |||
Amount of facility that may be drawn in British pounds sterling | 10,000,000 | |||
Sub-limit for short-term letters of credit | 50,000,000 | |||
Long-term debt, gross | 168,900,000 | 105,400,000 | ||
Outstanding letters of credit | 8,400,000 | |||
Available borrowing capacity | $ 122,700,000 | |||
Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest spread over base rate (in hundredths) | 0.50% | |||
Weighted average interest rate on all borrowings outstanding (in hundredths) | 3.40% | |||
Senior Notes [Member] | 4.875% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 250,000,000 | $ 250,000,000 | ||
Stated interest rate | 4.875% | |||
Secured Debt [Member] | Brazilian Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt extinguishment amount | $ 54,300,000 | |||
Secured Debt [Member] | Brazilian Loans Due November 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of long-term debt | $ 87,000,000 | |||
Secured Debt [Member] | Brazilian Loans Due November 2019 [Member] | Certificado De Deposito Interbancario (CDI) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate, percentage of reference rate | 108.70% | |||
Secured Debt [Member] | Brazilian Loans Due November 2019 [Member] | Certificado De Deposito Interbancario (CDI) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate, percentage of reference rate | 118.00% |
LONG TERM DEBT (Summary of Long
LONG TERM DEBT (Summary of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,369.2 | $ 1,332.8 |
Less unamortized debt issuance costs | (6.7) | (7.8) |
Total debt | 1,362.5 | 1,325 |
Less current portion | (32.1) | (130.2) |
Long-term debt | 1,330.4 | 1,194.8 |
Banco Bradesco Due February 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 13.2 |
Banco Votorantim Due April 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 12.4 |
Banco Bradesco Due July 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 4.8 |
Scotiabank Due August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 20.2 |
Banco Itau Due September 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 15.1 |
Scotiabank Due September 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 15.1 |
Banco Votorantim Due September 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 0.8 |
Banco Bradesco Due October 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 16.8 |
Rabobank Due November 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 22.6 |
Rabobank Loan Due November 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 21.1 | 0 |
Banco Itau Due May 2019 To April 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1.9 | 3.1 |
Financiadora de Estudos e Projetos Due November 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 13.1 | 7.4 |
Banco Do Brasil due February 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0.2 | 0 |
Banco Santander Due September 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 19.6 | 0 |
Banco Santander Due November 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 24.1 | 0 |
Banco Itau Due March 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 12.4 | 0 |
Banco Scoitabank Due September 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 20.5 | 0 |
Revolving Credit Facility [Member] | Revolving Credit Facility Due July 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 168.9 | 105.4 |
Term Loan [Member] | Term Loan Due July 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 837.4 | 845.9 |
Senior Notes [Member] | 4.875% Senior Notes due July 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 250 | $ 250 |
Stated interest rate | 4.875% |
LONG TERM DEBT (Future Maturiti
LONG TERM DEBT (Future Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Future maturities of long-term debt [Abstract] | ||
2,018 | $ 32.1 | |
2,019 | 89.2 | |
2,020 | 10.7 | |
2,021 | 983 | |
2,022 | 2.2 | |
Thereafter | 252 | |
Total debt | $ 1,369.2 | $ 1,332.8 |
DERIVATIVE FINANCIAL INSTRUME71
DERIVATIVE FINANCIAL INSTRUMENTS (Details) MMBTU in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)MMBTU | Dec. 31, 2016USD ($)MMBTU | |
Swap Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Loss on changes in fair value of derivative instruments | $ 9.7 | $ 0.1 |
Derivatives Not Designated as Hedging Instrument [Member] | Swap Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 119.6 | |
Derivatives Designated as Hedging Instruments [Member] | Swap Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 33.1 | |
Gain (loss) expected to be reclassified during the next twelve months | $ 0.9 | |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Underlying risk | change in natural gas prices | |
Percent of forecasted usage to be hedged (in hundredths) | 90.00% | |
Maximum period which the Company hedges in advance of forecasted purchase (in months) | 36 months | |
Period through which natural gas is hedged | Dec. 1, 2019 | |
Notional amount (in MMBtus) | MMBTU | 2.6 | 2.3 |
Net gain (loss) to be reclassified from accumulated other comprehensive income to earnings during the next 12 months | $ (1) |
DERIVATIVE FINANCIAL INSTRUME72
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Hedged Items) (Details) $ in Millions | Dec. 31, 2017USD ($)counterparty | Dec. 31, 2016USD ($)counterparty |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 1.3 | |
Liability Derivatives | $ 26.2 | |
Number of counterparties | counterparty | 2 | 2 |
Number of counterparties for amounts recorded as liabilities | counterparty | 5 | |
Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Netting of contracts in a receivable position against contracts in payable position (less than $0.1 million in 2017) | $ 0.1 | $ 0.4 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1.3 | 1.3 |
Liability Derivatives | 1.4 | 0.4 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 1.2 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contract [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1 | 0.3 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contract [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 0.1 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0.4 | 0.1 |
Derivatives Designated as Hedging Instruments [Member] | Swap Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.9 | |
Derivatives Designated as Hedging Instruments [Member] | Swap Contract [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | |
Derivatives Designated as Hedging Instruments [Member] | Swap Contract [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.4 | |
Derivatives Designated as Hedging Instruments [Member] | Swap Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 | |
Derivatives Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Liability Derivatives | 25.8 | |
Derivatives Not Designated as Hedging Instrument [Member] | Swap Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Derivatives Not Designated as Hedging Instrument [Member] | Swap Contract [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 25.8 | |
Derivatives Not Designated as Hedging Instrument [Member] | Swap Contract [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Derivatives Not Designated as Hedging Instrument [Member] | Swap Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 |
DERIVATIVE FINANCIAL INSTRUME73
DERIVATIVE FINANCIAL INSTRUMENTS (Activity Related to Other Comprehensive Income) (Details) - Derivatives in Cash Flow Hedging Relationships [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) | $ 1.1 | $ (0.8) |
Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | 1.3 | (2.7) |
Commodity Contract [Member] | Product Cost [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) | 3 | (0.8) |
Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | (0.6) | $ (2.7) |
Swap Contract [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of (Gain) Loss Recognized in OCI on Derivative (Effective Portion) | (1.9) | |
Amount of Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion) | $ 1.9 |
COMMITMENTS AND CONTINGENCIES74
COMMITMENTS AND CONTINGENCIES (Additional Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)agreement | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||
Maximum exposure for other labor matters | $ 41 | |||
Unions [Abstract] | ||||
Percentage of company's global workforce represented by labor unions (in hundredths) | 30.00% | |||
Number of collective bargaining agreements | agreement | 12 | |||
Number of collective bargaining agreements expiring in 2018 | agreement | 4 | |||
Percentage of company's global workforce with collective bargaining agreements expiring in 2018 (in hundredths) | 16.00% | |||
Number of collective bargaining agreements expiring in 2019 | agreement | 5 | |||
Number of collective bargaining agreements expiring in year 2020 | agreement | 1 | |||
Number of collective bargaining agreements expiring in year 2021 | agreement | 1 | |||
Number of collective bargaining agreements expiring in year 2022 | agreement | 1 | |||
Commitments [Abstract] | ||||
Rental expense, net of sublease income | $ 22 | $ 20.4 | $ 20.7 | |
Royalties [Abstract] | ||||
Royalty expense | 14.5 | 15.2 | $ 14 | |
Sales contracts [Abstract] | ||||
Guarantor obligations, performance bonds outstanding | 128.3 | |||
Amount of security in the form of bank letter guarantees | 9.2 | |||
Purchase commitments [Abstract] | ||||
Purchase commitments for 2018 | 28.4 | |||
Purchase commitments for 2019 | 11.4 | |||
Purchase commitments for 2020 | 10.2 | |||
Purchase commitments for 2021 | $ 9.4 | |||
U.S., Canada, and U.K. [Member] | ||||
Unions [Abstract] | ||||
Percentage of company's global workforce represented by labor unions (in hundredths) | 50.00% | |||
Workforce Subject to Collective Bargaining Arrangements [Member] | Labor Force Concentration Risk [Member] | Brazil [Member] | ||||
Unions [Abstract] | ||||
Percentage of concentration risk | 40.00% | |||
Produquímica [Member] | ||||
Loss Contingencies [Line Items] | ||||
Contingent liabilities assumed | $ 10.5 | |||
Cote Blanche [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reserve for expected payments required to resolve the dispute | $ 7.4 | |||
Settlement amount | $ 7.7 | |||
Brazilian Tax Litigation And Assessments [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reserve for expected payments required to resolve the dispute | $ 18.1 |
COMMITMENTS AND CONTINGENCIES75
COMMITMENTS AND CONTINGENCIES (Schedule of Operating Leases) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 13.1 |
2,019 | 10.4 |
2,020 | 5.8 |
2,021 | 2.2 |
2,022 | 1.5 |
Thereafter | 5 |
Total | $ 38 |
COMMITMENTS AND CONTINGENCIES76
COMMITMENTS AND CONTINGENCIES (Schedule of Capital Leases) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 0.9 |
2,019 | 0.8 |
2,020 | 0.9 |
2,021 | 0.9 |
2,022 | 0.9 |
Thereafter | 5.2 |
Total | $ 9.6 |
STOCKHOLDERS' EQUITY AND EQUI77
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Summary of Plan Information) (Details) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2015 | Dec. 31, 2005 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends paid (in dollars per share) | $ 2.88 | $ 2.78 | $ 2.64 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | ||||
Preferred stock, shares issued (in shares) | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | ||||
Series A Preferred Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares designated as series A junior participating preferred stock (in shares) | 200,000 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 4 years | ||||
Award expiration period | 7 years | ||||
Terms of award | Upon vesting, each option can be exercised to purchase one share of the Company’s common stock. | ||||
Number of shares available from conversion (in shares) | 1 | ||||
RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Service period | 3 years | ||||
Terms of award | One share of common stock for each vested RSU. | ||||
Number of shares available from conversion (in shares) | 1 | ||||
TSR PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period of PSUs | 3 years | ||||
Vesting period | 3 years | ||||
ROIC PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period of PSUs | 3 years | ||||
Vesting period | 3 years | ||||
2005 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares (in shares) | 3,240,000 | ||||
2015 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized shares (in shares) | 3,000,000 | ||||
Deferred Compensation Arrangement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred stock units credited in period (in shares) | 17,207 | 10,078 | 12,542 | ||
Deferred Compensation Arrangement [Member] | Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reissued from treasury stock (in shares) | 6,668 | 12,153 | 31,954 | ||
Minimum [Member] | TSR PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares earned | 0.00% | ||||
Minimum [Member] | ROIC PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares earned | 0.00% | ||||
Maximum [Member] | TSR PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares earned | 150.00% | ||||
Maximum [Member] | ROIC PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shares earned | 200.00% |
STOCKHOLDERS' EQUITY AND EQUI78
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Summary of Fair Value Assumptions and Methodology) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options granted (in dollars per share) | $ 9.54 | $ 10.17 | $ 14.78 |
Expected term (years) | 4 years 6 months | 4 years 6 months | 4 years 9 months 18 days |
Expected volatility | 23.20% | 24.40% | 24.90% |
Dividend yield | 3.50% | 3.30% | 3.10% |
Risk-free interest rates | 1.80% | 1.20% | 1.60% |
STOCKHOLDERS' EQUITY AND EQUI79
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Summary of Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options [Member] | |||
Stock option activity | |||
Outstanding at beginning of period (in shares) | 442,755 | 353,087 | 278,429 |
Granted (in shares) | 227,351 | 157,887 | 120,956 |
Exercised (in shares) | (3,366) | (11,377) | (33,906) |
Cancelled/Expired (in shares) | (103,863) | (56,842) | (12,392) |
Outstanding at end of period (in shares) | 562,877 | 442,755 | 353,087 |
Stock option weighted-average exercise price | |||
Outstanding at beginning of period (in dollars per share) | $ 80.07 | $ 83.94 | $ 79.23 |
Granted (in dollars per share) | 68 | 70.48 | 91.76 |
Exercised (in dollars per share) | 76.03 | 62.50 | 72.53 |
Cancelled/Expired (in dollars per share) | 76.44 | 80.95 | 84.71 |
Outstanding at end of period (in dollars per share) | $ 75.89 | $ 80.07 | $ 83.94 |
RSUs [Member] | |||
RSU and PSU activity | |||
Outstanding at beginning of period (in shares) | 63,780 | 91,008 | 88,532 |
Granted (in shares) | 34,635 | 34,975 | 21,317 |
Released from restriction (in shares) | (15,806) | (53,983) | (15,952) |
Cancelled/Expired (in shares) | (11,753) | (8,220) | (2,889) |
Outstanding at end of period (in shares) | 70,856 | 63,780 | 91,008 |
RSU and PSU weighted-average fair value | |||
Outstanding at beginning of period (in dollars per share) | $ 80.25 | $ 80.65 | $ 76.58 |
Granted (in dollars per share) | 68 | 72.06 | 90.94 |
Released from restriction (in dollars per share) | 84.77 | 75.18 | 71.69 |
Cancelled/Expired (in dollars per share) | 71.96 | 83.16 | 81.43 |
Outstanding at end of period (in dollars per share) | $ 74.63 | $ 80.25 | $ 80.65 |
PSUs [Member] | |||
RSU and PSU activity | |||
Outstanding at beginning of period (in shares) | 89,011 | 77,365 | 59,627 |
Granted (in shares) | 58,878 | 43,902 | 35,584 |
Released from restriction (in shares) | (12,946) | (10,258) | (10,454) |
Cancelled/Expired (in shares) | (22,907) | (21,998) | (7,392) |
Outstanding at end of period (in shares) | 112,036 | 89,011 | 77,365 |
RSU and PSU weighted-average fair value | |||
Outstanding at beginning of period (in dollars per share) | $ 89.43 | $ 96.63 | $ 88.69 |
Granted (in dollars per share) | 73.08 | 73.86 | 100.49 |
Released from restriction (in dollars per share) | 105.77 | 78.49 | 74.49 |
Cancelled/Expired (in dollars per share) | 86.81 | 88.79 | 82.46 |
Outstanding at end of period (in dollars per share) | $ 79.48 | $ 89.43 | $ 96.63 |
STOCKHOLDERS' EQUITY AND EQUI80
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity compensation, additional general disclosures [Abstract] | |||
Options outstanding (in shares) | 562,877 | 442,755 | |
Number of options outstanding that are exercisable (in shares) | 221,212 | 178,751 | |
Compensation expense related to stock-based compensation awards | $ 5 | $ 4.9 | $ 6.1 |
Unrecorded compensation cost related to non-vested awards | $ 6.5 | ||
Unrecorded compensation cost, weighted average period of recognition | 2 years 1 month 6 days | ||
Stock Options [Member] | |||
Equity compensation, additional general disclosures [Abstract] | |||
Fair value of options vested | $ 1.4 | 1.3 | 1.1 |
Intrinsic value of stock options exercised during the period | 0.1 | $ 0.1 | $ 0.6 |
Intrinsic value of options outstanding | 1.1 | ||
Intrinsic value of options exercisable | $ 0.1 |
STOCKHOLDERS' EQUITY AND EQUI81
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Summary of Exercise Price Range) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding (in shares) | 562,877 | 442,755 |
Weighted-average remaining contractual life of options outstanding | 4 years 7 months 6 days | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 75.89 | |
Options exercisable (in shares) | 221,212 | |
Weighted-average remaining contractual life of exercisable options | 3 years | |
Weighted-average exercise price of exercisable options (in dollars per share) | $ 81.31 | |
$68.00 - $69.24 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower range limit (in dollars per share) | 68 | |
Exercise price range, upper range limit (in dollars per share) | $ 69.24 | |
Options outstanding (in shares) | 195,232 | |
Weighted-average remaining contractual life of options outstanding | 6 years 3 months 18 days | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 68 | |
Options exercisable (in shares) | 0 | |
Weighted-average remaining contractual life of exercisable options | 0 years | |
Weighted-average exercise price of exercisable options (in dollars per share) | $ 0 | |
$69.25 - $71.09 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower range limit (in dollars per share) | 69.25 | |
Exercise price range, upper range limit (in dollars per share) | $ 71.09 | |
Options outstanding (in shares) | 120,117 | |
Weighted-average remaining contractual life of options outstanding | 5 years 2 months 12 days | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 70.48 | |
Options exercisable (in shares) | 30,471 | |
Weighted-average remaining contractual life of exercisable options | 5 years 2 months 12 days | |
Weighted-average exercise price of exercisable options (in dollars per share) | $ 70.48 | |
$71.10 - $81.73 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower range limit (in dollars per share) | 71.10 | |
Exercise price range, upper range limit (in dollars per share) | $ 81.73 | |
Options outstanding (in shares) | 84,605 | |
Weighted-average remaining contractual life of options outstanding | 2 years | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 75.63 | |
Options exercisable (in shares) | 84,605 | |
Weighted-average remaining contractual life of exercisable options | 2 years | |
Weighted-average exercise price of exercisable options (in dollars per share) | $ 75.63 | |
$81.74 - $89.47 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower range limit (in dollars per share) | 81.74 | |
Exercise price range, upper range limit (in dollars per share) | $ 89.47 | |
Options outstanding (in shares) | 79,349 | |
Weighted-average remaining contractual life of options outstanding | 2 years 7 months 6 days | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 87.04 | |
Options exercisable (in shares) | 62,974 | |
Weighted-average remaining contractual life of exercisable options | 2 years 4 months 24 days | |
Weighted-average exercise price of exercisable options (in dollars per share) | $ 87 | |
$89.48 - $93.26 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower range limit (in dollars per share) | 89.48 | |
Exercise price range, upper range limit (in dollars per share) | $ 93.26 | |
Options outstanding (in shares) | 83,574 | |
Weighted-average remaining contractual life of options outstanding | 4 years 2 months 12 days | |
Weighted-average exercise price of options outstanding (in dollars per share) | $ 91.77 | |
Options exercisable (in shares) | 43,162 | |
Weighted-average remaining contractual life of exercisable options | 4 years 2 months 12 days | |
Weighted-average exercise price of exercisable options (in dollars per share) | $ 91.77 |
STOCKHOLDERS' EQUITY AND EQUI82
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance | $ 717.1 | $ 639.7 |
Other comprehensive income (loss) before reclassifications | 27.7 | 1.5 |
Amounts reclassified from accumulated other comprehensive loss | (0.7) | 1.9 |
Net current period other comprehensive income (loss) | 27 | 3.4 |
Balance | 694.6 | 717.1 |
Gains and (Losses) on Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance | 0.6 | (1.6) |
Other comprehensive income (loss) before reclassifications | (0.6) | 0.5 |
Amounts reclassified from accumulated other comprehensive loss | (0.9) | 1.7 |
Net current period other comprehensive income (loss) | (1.5) | 2.2 |
Balance | (0.9) | 0.6 |
Defined Benefit Pension [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance | (3.7) | (3.8) |
Other comprehensive income (loss) before reclassifications | (0.4) | (0.1) |
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.2 |
Net current period other comprehensive income (loss) | (0.2) | 0.1 |
Balance | (3.9) | (3.7) |
Foreign Currency [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance | (101.8) | (102.9) |
Other comprehensive income (loss) before reclassifications | 28.7 | 1.1 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income (loss) | 28.7 | 1.1 |
Balance | (73.1) | (101.8) |
Total [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance | (104.9) | (108.3) |
Balance | $ (77.9) | $ (104.9) |
STOCKHOLDERS' EQUITY AND EQUI83
STOCKHOLDERS' EQUITY AND EQUITY INSTRUMENTS (Amount Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Product cost | $ (770.3) | $ (593.6) | $ (507.1) | ||||||||
Interest expense | (52.9) | (34.1) | (21.5) | ||||||||
Income tax expense (benefit) | 60 | 34.6 | 55.3 | ||||||||
Total reclassifications, net of income taxes | $ (4.4) | $ 32 | $ (6.4) | $ 21.5 | $ 97.6 | $ 9.1 | $ 6.3 | $ 49.7 | 42.7 | 162.7 | $ 159.2 |
Reclassifications, net of income taxes [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications, net of income taxes | (0.7) | (1.5) | |||||||||
Reclassifications, net of income taxes [Member] | Gain and (losses) on cash flow hedges [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense (benefit) | 0.4 | 1 | |||||||||
Total reclassifications, net of income taxes | (0.9) | (1.7) | |||||||||
Reclassifications, net of income taxes [Member] | Gain and (losses) on cash flow hedges [Member] | Natural gas instruments [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Product cost | 0.6 | (2.7) | |||||||||
Reclassifications, net of income taxes [Member] | Gain and (losses) on cash flow hedges [Member] | Foreign currency swaps [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | (1.9) | ||||||||||
Reclassifications, net of income taxes [Member] | Amortization of defined benefit pension [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Product cost | 0.3 | 0.3 | |||||||||
Income tax expense (benefit) | (0.1) | (0.1) | |||||||||
Total reclassifications, net of income taxes | $ 0.2 | $ 0.2 |
FAIR VALUE MEASUREMENTS (Summar
FAIR VALUE MEASUREMENTS (Summary of Estimated Fair Values) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Liability Class: | ||
Mutual fund investments percentage of fund invested in common stock of large-cap U.S. (in hundredths) | 30.00% | 25.00% |
Mutual fund investments percentage of fund invested in common stock of small cap To mid-cap U.S. (in hundredths) | 15.00% | 10.00% |
Mutual fund investments percentage of fund invested in common stock of international companies (in hundredths) | 5.00% | 5.00% |
Mutual fund investments percentage of fund invested in bond funds (in hundredths) | 10.00% | 5.00% |
Mutual fund investments percentage of fund invested in short-term investments (in hundredths) | 20.00% | 40.00% |
Mutual fund investments percentage of fund invested in blended funds (in hundredths) | 20.00% | 15.00% |
Fair Value, Measurements, Recurring [Member] | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | $ 2.2 | $ 1.8 |
Derivatives - foreign currency swaps, net | 1.3 | |
Derivatives - natural gas instruments | 0.9 | |
Trading securities | 1.8 | |
Total Assets | 3.5 | 4.5 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | (2.2) | (1.8) |
Derivatives - natural gas instruments | (1.4) | (25.8) |
Total Liabilities | (3.6) | (27.6) |
Fair Value, Measurements, Recurring [Member] | Level One [Member] | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | 2.2 | 1.8 |
Derivatives - foreign currency swaps, net | 0 | |
Derivatives - natural gas instruments | 0 | |
Trading securities | 0 | |
Total Assets | 2.2 | 1.8 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | (2.2) | (1.8) |
Derivatives - natural gas instruments | 0 | 0 |
Total Liabilities | (2.2) | (1.8) |
Fair Value, Measurements, Recurring [Member] | Level Two [Member] | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | 0 | 0 |
Derivatives - foreign currency swaps, net | 1.3 | |
Derivatives - natural gas instruments | 0.9 | |
Trading securities | 1.8 | |
Total Assets | 1.3 | 2.7 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | 0 | 0 |
Derivatives - natural gas instruments | (1.4) | (25.8) |
Total Liabilities | (1.4) | (25.8) |
Fair Value, Measurements, Recurring [Member] | Level Three [Member] | ||
Asset Class: | ||
Mutual fund investments in a non-qualified savings plan | 0 | 0 |
Derivatives - foreign currency swaps, net | 0 | |
Derivatives - natural gas instruments | 0 | |
Trading securities | 0 | |
Total Assets | 0 | 0 |
Liability Class: | ||
Liabilities related to non-qualified savings plan | 0 | 0 |
Derivatives - natural gas instruments | 0 | 0 |
Total Liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Additi
FAIR VALUE MEASUREMENTS (Additional Information) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
4.875% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.875% | 4.875% |
Fair value of senior notes | $ 246,900,000 | $ 236,300,000 |
Aggregate principal amount due at maturity | 250,000,000 | 250,000,000 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount due at maturity | 1,010,000,000 | 951,300,000 |
Fair value of credit agreement debt | 989,500,000 | 940,500,000 |
Fair Value, Measurements, Recurring [Member] | ||
Debt Instrument [Line Items] | ||
Mutual fund investments in a non-qualified savings plan | $ 2,200,000 | $ 1,800,000 |
OPERATING SEGMENTS (Segment Inf
OPERATING SEGMENTS (Segment Information) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2016Business | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | ||||||||||||
Number of reportable segments | segment | 3 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 457.9 | $ 290.7 | $ 228 | $ 387.8 | $ 443.2 | $ 179.6 | $ 169.5 | $ 345.7 | $ 1,364.4 | $ 1,138 | $ 1,098.7 | |
Shipping and handling cost | 267.5 | 244.9 | 261.5 | |||||||||
Operating earnings (loss) | 159.2 | 174.6 | 221.4 | |||||||||
Depreciation, depletion and amortization | 122.2 | 90.3 | 78.3 | |||||||||
Total assets | 2,571 | 2,466.5 | 2,571 | 2,466.5 | 1,624.8 | |||||||
Capital expenditures | 114.1 | 182.2 | 217.6 | |||||||||
Restructuring charges | 4.3 | |||||||||||
Reportable Segments [Member] | Salt [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 769.2 | 811.9 | 849 | |||||||||
Shipping and handling cost | 220.6 | 214.5 | 239.1 | |||||||||
Operating earnings (loss) | 138 | 200.6 | 215.2 | |||||||||
Depreciation, depletion and amortization | 55 | 46.7 | 43.9 | |||||||||
Total assets | 1,030.6 | 980.3 | 1,030.6 | 980.3 | 896.5 | |||||||
Capital expenditures | 65.8 | 103.4 | 106.5 | |||||||||
Reportable Segments [Member] | Plant Nutrition North America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 210 | 203 | 238.4 | |||||||||
Shipping and handling cost | 28.1 | 25 | 22.4 | |||||||||
Operating earnings (loss) | 27.7 | 21.1 | 57.9 | |||||||||
Depreciation, depletion and amortization | 36.9 | 33.4 | 29.8 | |||||||||
Total assets | 601.1 | 592.3 | 601.1 | 592.3 | 679.7 | |||||||
Capital expenditures | 31.9 | 63.6 | 92.8 | |||||||||
Reportable Segments [Member] | Plant Nutrition South America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 375 | 113.5 | 0 | |||||||||
Shipping and handling cost | 18.8 | 5.4 | 0 | |||||||||
Operating earnings (loss) | 49.1 | 7.4 | 0 | |||||||||
Depreciation, depletion and amortization | 22.6 | 5 | 0 | |||||||||
Total assets | 808 | 844.9 | 808 | 844.9 | 0 | |||||||
Capital expenditures | 11.3 | 2.1 | 0 | |||||||||
Corporate & Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 10.2 | 9.6 | 11.3 | |||||||||
Shipping and handling cost | 0 | 0 | 0 | |||||||||
Operating earnings (loss) | (55.6) | (54.5) | (51.7) | |||||||||
Depreciation, depletion and amortization | 7.7 | 5.2 | 4.6 | |||||||||
Total assets | $ 131.3 | $ 49 | 131.3 | 49 | 48.6 | |||||||
Capital expenditures | 5.1 | 13.1 | 18.3 | |||||||||
Intersegment Sales [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | (6.5) | (5.2) | (7.8) | |||||||||
Intersegment Sales [Member] | Salt [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 0 | 0 | 0.1 | |||||||||
Intersegment Sales [Member] | Plant Nutrition North America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 6.5 | 5.2 | 7.7 | |||||||||
Intersegment Sales [Member] | Plant Nutrition South America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 0 | $ 0 | $ 0 | |||||||||
Produquímica [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of primary businesses | Business | 2 |
OPERATING SEGMENTS (Information
OPERATING SEGMENTS (Information by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 457.9 | $ 290.7 | $ 228 | $ 387.8 | $ 443.2 | $ 179.6 | $ 169.5 | $ 345.7 | $ 1,364.4 | $ 1,138 | $ 1,098.7 |
Long-lived assets | 1,829.2 | 1,749.1 | 1,829.2 | 1,749.1 | 1,110.9 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 718 | 762.6 | 834.6 | ||||||||
Long-lived assets | 618.5 | 568.5 | 618.5 | 568.5 | 498 | ||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 217.7 | 212.5 | 198.4 | ||||||||
Long-lived assets | 515.9 | 461.5 | 515.9 | 461.5 | 394.3 | ||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 362.1 | 111.7 | 0 | ||||||||
Long-lived assets | 618.4 | 645.8 | 618.4 | 645.8 | 116.4 | ||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 43.3 | 40.6 | 56.8 | ||||||||
Long-lived assets | 69.9 | 66.8 | 69.9 | 66.8 | 95.7 | ||||||
Other Geographic Areas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 23.3 | 10.6 | 8.9 | ||||||||
Long-lived assets | $ 6.5 | $ 6.5 | $ 6.5 | $ 6.5 | $ 6.5 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net earnings | $ (4.4) | $ 32 | $ (6.4) | $ 21.5 | $ 97.6 | $ 9.1 | $ 6.3 | $ 49.7 | $ 42.7 | $ 162.7 | $ 159.2 |
Less: net earnings allocated to participating securities | (0.5) | (0.8) | (1) | ||||||||
Net earnings available to common shareholders | $ 42.2 | $ 161.9 | $ 158.2 | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding, shares for basic earnings per share (in shares) | 33,828 | 33,825 | 33,823 | 33,802 | 33,788 | 33,786 | 33,784 | 33,746 | 33,819 | 33,776 | 33,677 |
Weighted average equity awards outstanding (in shares) | 1 | 4 | 15 | ||||||||
Shares for diluted earnings per share | 33,828 | 33,825 | 33,823 | 33,803 | 33,793 | 33,789 | 33,787 | 33,748 | 33,820 | 33,780 | 33,692 |
Net earnings per common share, basic (in dollars per share) | $ (0.13) | $ 0.94 | $ (0.19) | $ 0.63 | $ 2.88 | $ 0.27 | $ 0.18 | $ 1.47 | $ 1.25 | $ 4.79 | $ 4.70 |
Net earnings per common share, diluted (in dollars per share) | $ (0.13) | $ 0.94 | $ (0.19) | $ 0.63 | $ 2.87 | $ 0.27 | $ 0.18 | $ 1.46 | $ 1.25 | $ 4.79 | $ 4.69 |
Net earnings allocated to participating securities (in shares) | 166 | 164 | 198 | ||||||||
Stock Options [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive weighted options outstanding (in shares) | 640 | 509 | 432 |
QUARTERLY RESULTS (Unaudited)89
QUARTERLY RESULTS (Unaudited) (Schedule of Quarterly Results) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 457.9 | $ 290.7 | $ 228 | $ 387.8 | $ 443.2 | $ 179.6 | $ 169.5 | $ 345.7 | $ 1,364.4 | $ 1,138 | $ 1,098.7 |
Gross profit | 124 | 76.1 | 44.9 | 81.6 | 110.4 | 45.2 | 41.3 | 102.6 | 326.6 | 299.5 | 330.1 |
Net earnings (loss) | $ (4.4) | $ 32 | $ (6.4) | $ 21.5 | $ 97.6 | $ 9.1 | $ 6.3 | $ 49.7 | $ 42.7 | $ 162.7 | $ 159.2 |
Net earnings (loss) per share, basic (in dollars per share) | $ (0.13) | $ 0.94 | $ (0.19) | $ 0.63 | $ 2.88 | $ 0.27 | $ 0.18 | $ 1.47 | $ 1.25 | $ 4.79 | $ 4.70 |
Net earnings (loss) per share, diluted (in dollars per share) | $ (0.13) | $ 0.94 | $ (0.19) | $ 0.63 | $ 2.87 | $ 0.27 | $ 0.18 | $ 1.46 | $ 1.25 | $ 4.79 | $ 4.69 |
Basic weighted-average shares outstanding (in shares) | 33,828 | 33,825 | 33,823 | 33,802 | 33,788 | 33,786 | 33,784 | 33,746 | 33,819 | 33,776 | 33,677 |
Diluted weighted-average shares outstanding (in shares) | 33,828 | 33,825 | 33,823 | 33,803 | 33,793 | 33,789 | 33,787 | 33,748 | 33,820 | 33,780 | 33,692 |
QUARTERLY RESULTS (Unaudited)90
QUARTERLY RESULTS (Unaudited) (Schedule of Quarterly Results Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 03, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||
Tax cuts and jobs act of 2017, provisional income tax expense (benefit) | $ 46.8 | ||||||
Business Acquisition [Line Items] | |||||||
Decrease in valuation allowance | $ 25 | ||||||
Gain from remeasurement of equity method investment | $ 0 | $ 59.3 | $ 0 | ||||
Produquímica [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Decrease in valuation allowance | $ 7 | $ 18 | |||||
Gain from remeasurement of equity method investment | $ 59.3 | ||||||
Interest acquired | 65.00% | 65.00% | 65.00% |
SUBSEQUENT EVENT (Additional In
SUBSEQUENT EVENT (Additional Information) (Details) - Subsequent Event [Member] | Feb. 13, 2018$ / shares |
Subsequent Event [Line Items] | |
Dividend declaration date | Feb. 13, 2018 |
Cash dividend declared (in dollars per share) | $ 0.72 |
Dividend payable date | Mar. 15, 2018 |
Stockholders of record date | Mar. 1, 2018 |
Schedule II Valuation Reserves
Schedule II Valuation Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Produquímica [Member] | |||
Valuation Reserves [Roll Forward] | |||
Additions (Deductions) Charged to Expense | $ 7.4 | ||
Allowance for Doubtful Accounts [Member] | |||
Valuation Reserves [Roll Forward] | |||
Balance at the Beginning of the Year | $ 9 | 1.3 | $ 1.4 |
Additions (Deductions) Charged to Expense | 3.2 | 8 | 0.6 |
Deductions | (1.3) | (0.3) | (0.7) |
Balance at the End of the Year | 10.9 | 9 | 1.3 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Reserves [Roll Forward] | |||
Balance at the Beginning of the Year | 33.6 | 0.9 | 1 |
Additions (Deductions) Charged to Expense | 1.1 | 34.3 | 0.1 |
Deductions | (24.5) | (1.6) | (0.2) |
Balance at the End of the Year | $ 10.2 | $ 33.6 | $ 0.9 |