Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | NEWMARKET CORP |
Entity Central Index Key | 1,282,637 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 11,787,054 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 589,245 | $ 542,818 |
Cost of goods sold | 432,462 | 374,007 |
Gross profit | 156,783 | 168,811 |
Selling, general, and administrative expenses | 40,913 | 40,449 |
Research, development, and testing expenses | 34,295 | 38,130 |
Operating profit | 81,575 | 90,232 |
Interest and financing expenses, net | 5,164 | 5,572 |
Other income (expense), net | 4,900 | 3,573 |
Income before income tax expense | 81,311 | 88,233 |
Income tax expense | 20,746 | 24,296 |
Net income | $ 60,565 | $ 63,937 |
Earnings per share - basic and diluted (in dollars per share) | $ 5.14 | $ 5.39 |
Cash dividends declared per share (in dollars per share) | $ 1.75 | $ 1.75 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 60,565 | $ 63,937 |
Pension plans and other postretirement benefits: | ||
Amortization of prior service cost (credit) included in net periodic benefit cost, net of income tax expense (benefit) of $(180) in 2018 and $(296) in 2017 | (591) | (474) |
Amortization of actuarial net loss (gain) included in net periodic benefit cost, net of income tax expense (benefit) of $360 in 2018 and $509 in 2017 | 1,136 | 783 |
Total pension plans and other postretirement benefits | 545 | 309 |
Foreign currency translation adjustments, net of income tax expense (benefit) of $(40) in 2018 and $280 in 2017 | 12,758 | 3,642 |
Other comprehensive income (loss) | 13,303 | 3,951 |
Comprehensive income | $ 73,868 | $ 67,888 |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Amortization of prior service cost (credit) included in net periodic benefit cost, income tax expense (benefit) | $ (180) | $ (296) |
Amortization of actuarial net loss (gain) included in net periodic benefit cost, income tax expense (benefit) | 360 | 509 |
Foreign currency translation adjustments, income tax expense (benefit) | $ (40) | $ 280 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 72,830 | $ 84,166 |
Trade and other accounts receivable, less allowance for doubtful accounts | 378,442 | 335,317 |
Inventories | ||
Finished goods and work-in-process | 328,782 | 319,036 |
Raw materials | 61,229 | 51,485 |
Stores, supplies, and other | 12,806 | 12,576 |
Total inventories | 402,817 | 383,097 |
Prepaid expenses and other current assets | 32,401 | 31,074 |
Total current assets | 886,490 | 833,654 |
Property, plant, and equipment, at cost | 1,502,591 | 1,474,962 |
Less accumulated depreciation and amortization | 840,122 | 822,681 |
Net property, plant, and equipment | 662,469 | 652,281 |
Intangibles (net of amortization) and goodwill | 142,137 | 144,337 |
Prepaid pension cost | 73,241 | 66,495 |
Deferred income taxes | 4,316 | 4,349 |
Deferred charges and other assets | 10,812 | 11,038 |
Total assets | 1,779,465 | 1,712,154 |
Current liabilities: | ||
Accounts payable | 162,651 | 159,408 |
Accrued expenses | 91,457 | 107,999 |
Dividends payable | 18,997 | 19,055 |
Income taxes payable | 17,207 | 16,340 |
Other current liabilities | 12,715 | 13,991 |
Total current liabilities | 303,027 | 316,793 |
Long-term debt | 624,894 | 602,900 |
Other noncurrent liabilities | 196,759 | 190,812 |
Total liabilities | 1,124,680 | 1,110,505 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock and paid-in capital (without par value; authorized shares - 80,000,000; issued and outstanding shares - 11,787,054 at March 31, 2018 and 11,779,978 at December 31, 2017) | 36 | 0 |
Accumulated other comprehensive loss | (132,691) | (145,994) |
Retained earnings | 787,440 | 747,643 |
Total shareholders' equity | 654,785 | 601,649 |
Total liabilities and shareholders’ equity | $ 1,779,465 | $ 1,712,154 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, authorized shares | 80,000,000 | 80,000,000 |
Common stock, issued shares | 11,787,054 | 11,779,978 |
Common stock, outstanding shares | 11,787,054 | 11,779,978 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock and Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Balance (in shares) at Dec. 31, 2016 | 11,845,972 | |||
Balance at Dec. 31, 2016 | $ 483,251 | $ 1,603 | $ (182,510) | $ 664,158 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 63,937 | 63,937 | ||
Other comprehensive income (loss) | 3,951 | 3,951 | ||
Cash dividends | (20,741) | (20,741) | ||
Stock-based compensation (in shares) | 6,645 | |||
Stock-based compensation | 617 | $ 617 | ||
Balance (in shares) at Mar. 31, 2017 | 11,852,617 | |||
Balance at Mar. 31, 2017 | $ 531,015 | $ 2,220 | (178,559) | 707,354 |
Balance (in shares) at Dec. 31, 2017 | 11,779,978 | 11,779,978 | ||
Balance at Dec. 31, 2017 | $ 601,649 | $ 0 | (145,994) | 747,643 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 60,565 | 60,565 | ||
Other comprehensive income (loss) | 13,303 | 13,303 | ||
Cash dividends | (20,629) | (20,629) | ||
Repurchases of common stock (in shares) | (1,600) | |||
Repurchases of common stock | (632) | $ (489) | (143) | |
Stock-based compensation (in shares) | 8,676 | |||
Stock-based compensation | $ 529 | $ 525 | 4 | |
Balance (in shares) at Mar. 31, 2018 | 11,787,054 | 11,787,054 | ||
Balance at Mar. 31, 2018 | $ 654,785 | $ 36 | $ (132,691) | $ 787,440 |
Consolidated Statements Of Sha8
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 1.75 | $ 1.75 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 84,166 | $ 192,154 |
Cash flows from operating activities: | ||
Net income | 60,565 | 63,937 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 17,665 | 12,306 |
Noncash pension and postretirement expense | 1,618 | 2,007 |
Deferred income tax expense | 2,714 | 5,283 |
Working capital changes | (63,655) | (39,836) |
Cash pension and postretirement contributions | (6,713) | (6,326) |
Other, net | (2,154) | (3,163) |
Net Cash Provided by (Used in) Operating Activities | 10,040 | 34,208 |
Cash flows from investing activities: | ||
Capital expenditures | (22,797) | (46,346) |
Other, net | 0 | (2,000) |
Net Cash Provided by (Used in) Investing Activities | (22,797) | (48,346) |
Cash flows from financing activities: | ||
Net borrowings (repayments) under revolving credit facility | 22,000 | (156,000) |
Issuance of 3.78% senior notes | 0 | 250,000 |
Dividends paid | (20,629) | (20,741) |
Repurchases of common stock | (632) | 0 |
Other, net | (98) | (1,447) |
Net Cash Provided by (Used in) Financing Activities | 641 | 71,812 |
Effect of foreign exchange on cash and cash equivalents | 780 | 1,416 |
(Decrease) increase in cash and cash equivalents | (11,336) | 59,090 |
Cash and cash equivalents at end of period | $ 72,830 | $ 251,244 |
Condensed Consolidated Statem10
Condensed Consolidated Statements of Cash Flows (Parenthetical) | Mar. 31, 2018 | Mar. 31, 2017 |
3.78% Senior Notes [Member] | ||
Senior notes, interest rate | 3.78% | 3.78% |
Financial Statement Presentatio
Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation In the opinion of management, the accompanying consolidated financial statements of NewMarket Corporation and its subsidiaries contain all necessary adjustments for the fair statement of, in all material respects, our consolidated financial position as of March 31, 2018 and December 31, 2017 , and our consolidated results of operations and comprehensive income, changes in shareholders' equity, and cash flows for the three months ended March 31, 2018 and March 31, 2017 . All adjustments are of a normal, recurring nature, unless otherwise disclosed. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the NewMarket Corporation Annual Report on Form 10-K for the year ended December 31, 2017 ( 2017 Annual Report), as filed with the Securities and Exchange Commission (SEC). The results of operations for the three month period ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018 . The December 31, 2017 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. Unless the context otherwise indicates, all references to “we,” “us,” “our,” the “company,” and “NewMarket” are to NewMarket Corporation and its consolidated subsidiaries. Prior period amounts on the Consolidated Statements of Income have been reclassified to reflect the retroactive adoption of Accounting Standard Update No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost". See Note 13 for further information. |
Acquisition of Business
Acquisition of Business | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition of Business On July 3, 2017, Afton Chemical de Mexico, S.A. de C.V., an indirect, wholly-owned subsidiary of NewMarket Corporation, acquired approximately 99.5% of the outstanding capital stock of Aditivos Mexicanos, S.A. de C.V. (AMSA) for $185 million in cash. AMSA is a petroleum additives manufacturing, sales and distribution company based in Mexico City, Mexico. The results of AMSA's operations have been included in our consolidated financial statements since the date of acquisition and are not material. The noncontrolling interest is also not material. The acquisition agreement included all physical assets of AMSA. We have initiated a purchase price valuation to determine the fair values of the tangible and intangible assets acquired and liabilities assumed and the amount of goodwill to be recognized as of the acquisition date. The amounts recorded for certain assets and liabilities are preliminary and are subject to adjustment if additional information is obtained about facts that existed as of the acquisition date. The final determination of the fair values of certain assets and liabilities will be completed within the measurement period of up to one year from the acquisition date. A preliminary allocation of the purchase price is as follows (in millions): Cash $ 1 Trade accounts receivable 16 Inventory 6 Property, plant, and equipment 53 Goodwill 118 Intangible assets 18 Other long-term assets 2 Other current liabilities (7 ) Other long-term liabilities (3 ) Deferred taxes (19 ) Fair value of net assets acquired $ 185 Identified intangible assets acquired consisted of the following (in millions): Fair Value Estimated Useful Lives (in years) Formulas and technology $ 9 3-6 Customer base 9 4 Total identified intangible assets $ 18 As part of the acquisition, we recorded $118 million of goodwill. The goodwill recognized is attributable to expected synergies, including a secure supply source for certain raw materials, as well as the skilled assembled workforce of AMSA. All of the goodwill recognized is part of the petroleum additives segment, and none is deductible for Mexican tax purposes. Pro forma results of operations are not presented as the acquisition was not considered material to our consolidated results. |
Net Sales Net Sales
Net Sales Net Sales | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. Net Sales On January 1, 2018, we adopted Accounting Standard Codification 606 (ASC 606), "Revenue from Contracts with Customers" using the modified retrospective method and applying the standard only to uncompleted contracts at the date of adoption. The impact of adopting ASC 606 did not result in a change to income, and therefore we are not reflecting a cumulative effect to the opening balance of retained earnings due to the adoption of ASC 606. The comparative period has not been adjusted and continues to be reported under the accounting standards in effect for that period. Our revenues are primarily derived from the manufacture and sale of petroleum additives products, as well as the sale in North America of tetraethyl lead (TEL). We sell petroleum additives products across the world including to customers located in the United States, Europe, Asia Pacific, Latin America, Canada, India, and the Middle East. Our customers primarily consist of global, national, and independent oil companies. While some of our customers have payment terms beyond 30 days, we do not provide extended payment terms of a year or more, nor do our contracts include a financing component. Our allowance for doubtful accounts is immaterial, as are any bad debts we incur. In limited cases, we collect funds in advance of shipping product to our customers and recognizing the related revenue. These prepayments from customers are recorded as a contract liability to our customer until we recognize the revenue. Prepayments from our customers totaled $7.9 million at March 31, 2018 and $3.3 million at December 31, 2017 . Revenue of $3.2 million was recognized in 2018 from funds collected in advance from customers in an earlier period. We recognize revenue when control of the product is transferred to our customer and for an amount that reflects the consideration that we expect to collect from the customer. Control is generally transferred to the customer when title transfers (which may include physical possession by the customer), we have a right to payment from the customer, the customer has accepted the product, and the customer has assumed the risks and rewards of ownership. We have supplier managed inventory arrangements with some of our customers to facilitate on-demand product availability. In some cases, the inventory resides at a customer site, although title has not transferred, we are not entitled to payment, and we have not invoiced for the product. We have evaluated the contract terms under these arrangements and have determined that control transfers when the customer uses the product, at which time revenue is recognized. Our contracts generally include one performance obligation, which is providing petroleum additives and TEL products. The performance obligation is satisfied at a point in time when products are shipped, delivered, or consumed by the customer, depending on the underlying contracts. Taxes assessed by a governmental authority which are concurrent with sales to our customers, including sales, use, value-added, and revenue-related excise taxes, are collected by us from the customer and are not included in net sales, but are reflected in accrued expenses until remitted to the appropriate governmental authority. When we are responsible for shipping and handling costs after title has transferred, we account for those as fulfillment costs and include them in cost of goods sold. Some of our contracts include variable consideration in the form of rebates or business development funds. We record rebates at the point of sale as contra-revenue when we can reasonably estimate the amount of the rebate. The estimates are based on our best judgment at the time of sale, which includes anticipated as well as historical performance. Depending upon the specific terms of a business development fund, amounts are accrued as contra-revenue at the point of sale or are expensed when costs are incurred by us. We regularly review both rebates and business development funds and make adjustments when necessary, recognizing the full amount of any adjustment in the period identified. For the first quarter of 2018 , we recognized an increase to net sales of $1.0 million related to adjustments to rebates or business development funds which were recognized in revenue in a prior period. At March 31, 2018 , accrued rebates were $11.3 million and accrued business development funds were $1.5 million . The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 4. Three Months Ended March 31 (in thousands) 2018 Net sales United States $ 181,638 China 64,211 Europe, Middle East, Africa, India 198,660 Asia Pacific, except China 82,506 Other foreign 62,230 Net sales $ 589,245 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The tables below show our consolidated segment results. The “All other” category includes the operations of the TEL business, as well as certain contracted manufacturing and services associated with Ethyl Corporation (Ethyl). The results of AMSA's operations are reflected in the petroleum additives segment. See Note 2 for further information on AMSA. Net Sales by Segment Three Months Ended March 31 (in thousands) 2018 2017 Petroleum additives Lubricant additives $ 485,049 $ 443,961 Fuel additives 101,859 96,072 Total 586,908 540,033 All other 2,337 2,785 Net sales $ 589,245 $ 542,818 Segment Operating Profit Three Months Ended March 31 (in thousands) 2018 2017 Petroleum additives $ 84,140 $ 95,413 All other (77 ) 1,035 Segment operating profit 84,063 96,448 Corporate, general, and administrative expenses (5,664 ) (6,346 ) Interest and financing expenses, net (5,164 ) (5,572 ) Other income (expense), net 8,076 3,703 Income before income tax expense $ 81,311 $ 88,233 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits The table below shows cash contributions made during the three months ended March 31, 2018 , as well as the remaining cash contributions we expect to make during the year ending December 31, 2018 , for our domestic and foreign pension plans and domestic postretirement benefit plan. (in thousands) Actual Cash Contributions for Three Months Ended March 31, 2018 Expected Remaining Cash Contributions for Year Ending December 31, 2018 Domestic plans Pension benefits $ 4,818 $ 14,455 Postretirement benefits 423 1,270 Foreign plans Pension benefits 1,472 4,472 The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan. The service cost component of net periodic benefit cost (income) is presented in operating profit in the same income statement line as the related employee compensation costs. The remaining components of net periodic benefit cost (income) are presented in other income (expense), net on the consolidated statements of income. Domestic Pension Benefits Postretirement Benefits Three Months Ended March 31, (in thousands) 2018 2017 2018 2017 Service cost $ 3,972 $ 3,379 $ 216 $ 186 Interest cost 3,343 3,360 370 394 Expected return on plan assets (7,445 ) (6,503 ) (249 ) (309 ) Amortization of prior service cost (credit) 7 7 (757 ) (757 ) Amortization of actuarial net (gain) loss 1,341 1,229 0 0 Net periodic benefit cost (income) $ 1,218 $ 1,472 $ (420 ) $ (486 ) Foreign Pension Benefits Three Months Ended March 31, (in thousands) 2018 2017 Service cost $ 2,079 $ 1,821 Interest cost 1,164 1,018 Expected return on plan assets (2,557 ) (2,024 ) Amortization of prior service cost (credit) (21 ) (19 ) Amortization of actuarial net (gain) loss 155 225 Net periodic benefit cost (income) $ 820 $ 1,021 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We had 25,384 shares of nonvested restricted stock at March 31, 2018 and 23,775 shares of nonvested restricted stock at March 31, 2017 that were excluded from the calculation of diluted earnings per share, as their effect on earnings per share would be anti-dilutive. The nonvested restricted stock is considered a participating security since the restricted stock contains nonforfeitable rights to dividends. As such, we use the two-class method to compute basic and diluted earnings per share for all periods presented since this method yields a more dilutive result than the treasury-stock method. The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share. Three Months Ended March 31 (in thousands, except per-share amounts) 2018 2017 Earnings per share numerator: Net income attributable to common shareholders before allocation of earnings to participating securities $ 60,565 $ 63,937 Earnings allocated to participating securities 103 127 Net income attributable to common shareholders after allocation of earnings to participating securities $ 60,462 $ 63,810 Earnings per share denominator: Weighted-average number of shares of common stock outstanding - basic and diluted 11,762 11,829 Earnings per share - basic and diluted $ 5.14 $ 5.39 |
Intangibles (Net of Amortizatio
Intangibles (Net of Amortization) and Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles (Net of Amortization) and Goodwill | Intangibles (Net of Amortization) and Goodwill The net carrying amount of intangibles and goodwill was $142 million at March 31, 2018 and $144 million at December 31, 2017 . The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below. March 31, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangible assets Formulas and technology $ 12,365 $ 3,887 $ 12,339 $ 3,280 Contract 2,000 250 2,000 200 Customer bases 15,766 7,352 15,759 5,140 Trademarks and trade names 1,537 1,250 1,531 1,213 Goodwill 123,208 122,541 $ 154,876 $ 12,739 $ 154,170 $ 9,833 All of the intangibles relate to the petroleum additives segment. The change in the gross carrying amount between December 31, 2017 and March 31, 2018 is due to an immaterial purchase adjustment to goodwill related to AMSA and foreign currency fluctuation. The goodwill and identifiable intangibles from the acquisition of AMSA are preliminary and are subject to adjustment if additional information is obtained about facts that existed as of the acquisition date. The final determination of the fair values will be completed within the measurement period of up to one year from the acquisition date. See Note 2 for more information. There is no accumulated goodwill impairment. Amortization expense was (in thousands): Three months ended March 31, 2018 $ 2,906 Three months ended March 31, 2017 218 Estimated amortization expense for the remainder of 2018 , as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands): 2018 $ 4,760 2019 4,675 2020 3,026 2021 2,206 2022 1,473 2023 957 We amortize contracts over 10 years; customer bases over 4 to 20 years; formulas and technology over 3 to 10 years; and trademarks and trade names over 10 years. |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-term Debt | Long-term Debt (in thousands) March 31, December 31, Senior notes - 4.10% due 2022 (net of related deferred financing costs) $ 347,238 $ 347,091 Senior notes - 3.78% due 2029 250,000 250,000 Revolving credit facility 22,000 0 Capital lease obligations 5,656 5,809 $ 624,894 $ 602,900 The outstanding 4.10% senior notes have an aggregate principal amount of $350 million and are registered under the Securities Act of 1933, as amended (Securities Act). The outstanding 3.78% senior notes are unsecured and were issued in a 2017 private placement with The Prudential Insurance Company of America and certain other purchasers. We were in compliance with all covenants under the senior notes as of March 31, 2018 and December 31, 2017 . The revolving credit facility has a term of five years and matures on September 22, 2022 . The obligations under the revolving agreement are unsecured and are fully and unconditionally guaranteed by NewMarket. The average interest rate for borrowings under our revolving credit facility was 3.2% during the first three months of 2018 and 2.5% during the full year of 2017 . We were in compliance with all covenants under the senior notes as of March 31, 2018 and December 31, 2017 . The following table provides information related to the unused portion of our revolving credit facility: (in thousands) March 31, December 31, Maximum borrowing capacity under the revolving credit facility $ 850,000 $ 850,000 Outstanding borrowings under the revolving credit facility 22,000 0 Outstanding letters of credit 2,710 2,830 Unused portion of revolving credit facility $ 825,290 $ 847,170 The capital lease obligations are related to the Singapore manufacturing facility. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters We are involved in legal proceedings that are incidental to our business and may include administrative or judicial actions. Some of these legal proceedings involve governmental authorities and relate to environmental matters. For further information, see Environmental below. While it is not possible to predict or determine with certainty the outcome of any legal proceeding, we believe the outcome of any of these proceedings, or all of them combined, will not result in a material adverse effect on our consolidated results of operations, financial condition, or cash flows. In late 2013, Afton Chemical Corporation (Afton) initiated a voluntary self-audit of its compliance with certain sections of the Toxic Substances Control Act (TSCA) under the Environmental Protection Agency's (EPA) audit policy (Audit Policy). If any potential TSCA violations are discovered during the audit, we would voluntarily disclose them to the EPA under the Audit Policy. In August 2014, the EPA staff began its own TSCA inspection of both Afton and Ethyl. While it is not possible to predict or determine with certainty the outcome, we do not believe that any findings identified as a result of our audit or the EPA’s TSCA inspection will have a material adverse effect on our consolidated results of operations, financial condition, or cash flows. Environmental We are involved in environmental proceedings and potential proceedings relating to soil and groundwater contamination, disposal of hazardous waste, and other environmental matters at several of our current or former facilities, or at third-party sites where we have been designated as a potentially responsible party (PRP). While we believe we are currently adequately accrued for known environmental issues, it is possible that unexpected future costs could have a significant impact on our financial position, results of operations, and cash flows. Our total accruals for environmental remediation, dismantling, and decontamination were approximately $13 million at March 31, 2018 and $14 million at December 31, 2017 . Of the total accrual, the current portion is included in accrued expenses and the noncurrent portion is included in other noncurrent liabilities on the Condensed Consolidated Balance Sheets. Our more significant environmental sites include a former TEL plant site in Louisiana (the Louisiana site) and a Houston, Texas plant site (the Texas site). Together, the amounts accrued on a discounted basis related to these sites represented approximately $7 million of the total accrual above at both March 31, 2018 and December 31, 2017 , using discount rates ranging from 4% to 9% for both periods. The aggregate undiscounted amount for these sites was $9 million at March 31, 2018 and $10 million at December 31, 2017 . Of the total accrued for these two sites, the amount related to remediation of groundwater and soil for the Louisiana site was $3 million at both March 31, 2018 and December 31, 2017 . The amount related to remediation of groundwater and soil for the Texas site was $4 million at both March 31, 2018 and December 31, 2017 . In 2000, the EPA named us as a PRP under Superfund law for the clean-up of soil and groundwater contamination at the five grouped disposal sites known as "Sauget Area 2 Sites" in Sauget, Illinois. Without admitting any fact, responsibility, fault, or liability in connection with this site, we are participating with other PRPs in site investigations and feasibility studies. In December 2013, the EPA issued its Record of Decision (ROD) confirming its remedies for the selected Sauget Area 2 Sites. In August 2017, the EPA issued a Special Notice Letter to over 75 PRPs notifying them of potential liability and encouraging the PRPs to voluntarily perform or finance the response actions detailed in the ROD. We have accrued our estimated proportional share of the remedial costs and expenses addressed in the ROD. We do not believe there is any additional information available as a basis for revision of the liability that we have established at March 31, 2018 . The amount accrued for this site is not material. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following: (in thousands) Pension Plans and Other Postretirement Benefits Foreign Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2016 $ (76,187 ) $ (106,323 ) $ (182,510 ) Other comprehensive income (loss) before reclassifications 0 3,642 3,642 Amounts reclassified from accumulated other comprehensive loss (a) 309 0 309 Other comprehensive income (loss) 309 3,642 3,951 Balance at March 31, 2017 $ (75,878 ) $ (102,681 ) $ (178,559 ) Balance at December 31, 2017 $ (63,520 ) $ (82,474 ) $ (145,994 ) Other comprehensive income (loss) before reclassifications 0 12,758 12,758 Amounts reclassified from accumulated other comprehensive loss (a) 545 0 545 Other comprehensive income (loss) 545 12,758 13,303 Balance at March 31, 2018 $ (62,975 ) $ (69,716 ) $ (132,691 ) (a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 5 in this Form 10-Q and Note 17 in our 2017 Annual Report for further information. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amount of cash and cash equivalents in the Condensed Consolidated Balance Sheets, as well as the fair value, was $73 million at March 31, 2018 and $84 million at December 31, 2017 . The fair value is categorized in Level 1 of the fair value hierarchy. No material events occurred during the three months ended March 31, 2018 requiring adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis. Long-term debt – We record the carrying amount of our long-term debt at historical cost, less deferred financing costs related to the 4.10% senior notes. The estimated fair value of our long-term debt is shown in the table below and is based primarily on estimated current rates available to us for debt of the same remaining duration and adjusted for nonperformance risk and credit risk. The estimated fair value of our publicly-traded 4.10% senior notes included in long-term debt in the table below is also based on the last quoted price closest to March 31, 2018 . The fair value of our debt instruments is categorized as Level 2. March 31, 2018 December 31, 2017 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt (excluding capital lease obligation) $ 619,238 $ 625,235 $ 597,091 $ 623,557 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 12. Income Taxes In December 2017, the United States enacted tax legislation commonly known as the Tax Cuts and Jobs Act (Tax Reform Act), which required a one-time transition tax expense in 2017 on the deemed repatriation of previously deferred foreign earnings and reduced the U.S. corporate tax rate to 21% effective January 1, 2018. As of March 31, 2018 , our estimate of the transition tax expense is based on currently available information and interpretations regarding the application of the new tax provisions. The U.S. Treasury, the Internal Revenue Service, and other standard-setting bodies could interpret or issue guidance regarding the provisions of the Tax Reform Act that differ from our interpretation, which could impact our provisional expense. Additional work is necessary to further analyze our historical earnings and other items that affect the calculations. Adjustments to the provisional amounts recorded as of December 31, 2017 and March 31, 2018 , will affect our tax expense or benefit from continuing operations in the period that the final adjustments are determined, which will be no later than the fourth quarter of 2018. During the first three months of 2018, we made immaterial adjustments to the calculations recorded as of December 31, 2017 . We are evaluating certain aspects of the Tax Reform Act which could impact our deferred tax balances and have not made a policy election with respect to the deferred tax effects of the global intangible low-taxed income (GILTI) provision of the Tax Reform Act. The policy decision will be made no later than the fourth quarter of 2018, and any impact of the decision will be recorded in continuing operations in the period the decision is made. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2018, we adopted Accounting Standard Codification 606 (ASC 606), "Revenue from Contracts with Customers." Further information on the adoption is in Note 3. Also on January 1, 2018, we adopted Accounting Standards Update No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" (ASU 2017-07) on a retrospective basis for the consolidated statements of income and on a prospective basis for capitalization of the service cost component in assets. ASU 2017-07 requires that an employer report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the consolidated statements of income outside of operating profit. There was no change to net income for the 2017 period as a result of adopting ASU 2017-07 on a retrospective basis for the consolidated statements of income, but there is a change within operating profit with a corresponding change in other income (expense), net to reflect the impact of presenting all components of net benefit cost, except for service cost, outside of operating profit. As a result of the retrospective application for three months ended March 31, 2017, operating profit decreased by $3 million and other income (expense), net increased by $3 million in income. As allowed under ASU 2017-07, we utilized the amounts disclosed in the prior year for the various components of net benefit costs as the basis for the retrospective application. See Note 5 for the components of our net benefit costs. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (ASU 2016-02). The FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring disclosures related to certain information about leasing arrangements. Under the new guidance, operating leases are, in most cases, required to be recognized on the balance sheet as a lease asset and liability. A modified retrospective approach is currently required for the adoption of ASU 2016-02, which is effective for our reporting period beginning January 1, 2019. Early adoption is permitted. We are currently assessing the impact that the adoption of ASU 2016-02 will have on our consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" (ASU 2018-02). ASU 2018-02 allows, but does not require, reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects that resulted from the Tax Reform Act at the end of 2017. ASU 2018-02, which is effective for our reporting period beginning January 1, 2019, also requires additional disclosures surrounding stranded tax effects. Early adoption is permitted. We are currently assessing the impact that the adoption of ASU 2018-02 will have on our consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Long-Term Debt | We record the carrying amount of our long-term debt at historical cost, less deferred financing costs related to the 4.10% senior notes. |
Revenue Recognition, Policy [Policy Text Block] | We recognize revenue when control of the product is transferred to our customer and for an amount that reflects the consideration that we expect to collect from the customer. Control is generally transferred to the customer when title transfers (which may include physical possession by the customer), we have a right to payment from the customer, the customer has accepted the product, and the customer has assumed the risks and rewards of ownership. We have supplier managed inventory arrangements with some of our customers to facilitate on-demand product availability. In some cases, the inventory resides at a customer site, although title has not transferred, we are not entitled to payment, and we have not invoiced for the product. We have evaluated the contract terms under these arrangements and have determined that control transfers when the customer uses the product, at which time revenue is recognized. Our contracts generally include one performance obligation, which is providing petroleum additives and TEL products. The performance obligation is satisfied at a point in time when products are shipped, delivered, or consumed by the customer, depending on the underlying contracts. Taxes assessed by a governmental authority which are concurrent with sales to our customers, including sales, use, value-added, and revenue-related excise taxes, are collected by us from the customer and are not included in net sales, but are reflected in accrued expenses until remitted to the appropriate governmental authority. When we are responsible for shipping and handling costs after title has transferred, we account for those as fulfillment costs and include them in cost of goods sold. Some of our contracts include variable consideration in the form of rebates or business development funds. We record rebates at the point of sale as contra-revenue when we can reasonably estimate the amount of the rebate. The estimates are based on our best judgment at the time of sale, which includes anticipated as well as historical performance. Depending upon the specific terms of a business development fund, amounts are accrued as contra-revenue at the point of sale or are expensed when costs are incurred by us. We regularly review both rebates and business development funds and make adjustments when necessary, recognizing the full amount of any adjustment in the period identified. |
Acquisition of Business Acquisi
Acquisition of Business Acquisition of Business (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | A preliminary allocation of the purchase price is as follows (in millions): Cash $ 1 Trade accounts receivable 16 Inventory 6 Property, plant, and equipment 53 Goodwill 118 Intangible assets 18 Other long-term assets 2 Other current liabilities (7 ) Other long-term liabilities (3 ) Deferred taxes (19 ) Fair value of net assets acquired $ 185 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Identified intangible assets acquired consisted of the following (in millions): Fair Value Estimated Useful Lives (in years) Formulas and technology $ 9 3-6 Customer base 9 4 Total identified intangible assets $ 18 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 4. Three Months Ended March 31 (in thousands) 2018 Net sales United States $ 181,638 China 64,211 Europe, Middle East, Africa, India 198,660 Asia Pacific, except China 82,506 Other foreign 62,230 Net sales $ 589,245 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net Sales by Segment Three Months Ended March 31 (in thousands) 2018 2017 Petroleum additives Lubricant additives $ 485,049 $ 443,961 Fuel additives 101,859 96,072 Total 586,908 540,033 All other 2,337 2,785 Net sales $ 589,245 $ 542,818 |
Segment Operating Profit | Segment Operating Profit Three Months Ended March 31 (in thousands) 2018 2017 Petroleum additives $ 84,140 $ 95,413 All other (77 ) 1,035 Segment operating profit 84,063 96,448 Corporate, general, and administrative expenses (5,664 ) (6,346 ) Interest and financing expenses, net (5,164 ) (5,572 ) Other income (expense), net 8,076 3,703 Income before income tax expense $ 81,311 $ 88,233 |
Pension Plans and Other Postr28
Pension Plans and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans | The table below shows cash contributions made during the three months ended March 31, 2018 , as well as the remaining cash contributions we expect to make during the year ending December 31, 2018 , for our domestic and foreign pension plans and domestic postretirement benefit plan. (in thousands) Actual Cash Contributions for Three Months Ended March 31, 2018 Expected Remaining Cash Contributions for Year Ending December 31, 2018 Domestic plans Pension benefits $ 4,818 $ 14,455 Postretirement benefits 423 1,270 Foreign plans Pension benefits 1,472 4,472 |
Net Periodic Benefit Cost (Income) For Pension And Postretirement Benefit Plans | The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan. The service cost component of net periodic benefit cost (income) is presented in operating profit in the same income statement line as the related employee compensation costs. The remaining components of net periodic benefit cost (income) are presented in other income (expense), net on the consolidated statements of income. Domestic Pension Benefits Postretirement Benefits Three Months Ended March 31, (in thousands) 2018 2017 2018 2017 Service cost $ 3,972 $ 3,379 $ 216 $ 186 Interest cost 3,343 3,360 370 394 Expected return on plan assets (7,445 ) (6,503 ) (249 ) (309 ) Amortization of prior service cost (credit) 7 7 (757 ) (757 ) Amortization of actuarial net (gain) loss 1,341 1,229 0 0 Net periodic benefit cost (income) $ 1,218 $ 1,472 $ (420 ) $ (486 ) Foreign Pension Benefits Three Months Ended March 31, (in thousands) 2018 2017 Service cost $ 2,079 $ 1,821 Interest cost 1,164 1,018 Expected return on plan assets (2,557 ) (2,024 ) Amortization of prior service cost (credit) (21 ) (19 ) Amortization of actuarial net (gain) loss 155 225 Net periodic benefit cost (income) $ 820 $ 1,021 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share. Three Months Ended March 31 (in thousands, except per-share amounts) 2018 2017 Earnings per share numerator: Net income attributable to common shareholders before allocation of earnings to participating securities $ 60,565 $ 63,937 Earnings allocated to participating securities 103 127 Net income attributable to common shareholders after allocation of earnings to participating securities $ 60,462 $ 63,810 Earnings per share denominator: Weighted-average number of shares of common stock outstanding - basic and diluted 11,762 11,829 Earnings per share - basic and diluted $ 5.14 $ 5.39 |
Intangibles (Net of Amortizat30
Intangibles (Net of Amortization) and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Information Related to Intangible Assets and Goodwill | The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below. March 31, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangible assets Formulas and technology $ 12,365 $ 3,887 $ 12,339 $ 3,280 Contract 2,000 250 2,000 200 Customer bases 15,766 7,352 15,759 5,140 Trademarks and trade names 1,537 1,250 1,531 1,213 Goodwill 123,208 122,541 $ 154,876 $ 12,739 $ 154,170 $ 9,833 |
Schedule Of Amortization Expense | Amortization expense was (in thousands): Three months ended March 31, 2018 $ 2,906 Three months ended March 31, 2017 218 |
Schedule Of Estimated Annual Amortization Expense Related To Intangible Assets | Estimated amortization expense for the remainder of 2018 , as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands): 2018 $ 4,760 2019 4,675 2020 3,026 2021 2,206 2022 1,473 2023 957 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule Of Long-Term Debt | (in thousands) March 31, December 31, Senior notes - 4.10% due 2022 (net of related deferred financing costs) $ 347,238 $ 347,091 Senior notes - 3.78% due 2029 250,000 250,000 Revolving credit facility 22,000 0 Capital lease obligations 5,656 5,809 $ 624,894 $ 602,900 |
Schedule Of Unused Portion Of Revolving Credit Facility | The following table provides information related to the unused portion of our revolving credit facility: (in thousands) March 31, December 31, Maximum borrowing capacity under the revolving credit facility $ 850,000 $ 850,000 Outstanding borrowings under the revolving credit facility 22,000 0 Outstanding letters of credit 2,710 2,830 Unused portion of revolving credit facility $ 825,290 $ 847,170 |
Other Comprehensive Income (L32
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss, Net of Tax | The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following: (in thousands) Pension Plans and Other Postretirement Benefits Foreign Currency Translation Adjustments Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2016 $ (76,187 ) $ (106,323 ) $ (182,510 ) Other comprehensive income (loss) before reclassifications 0 3,642 3,642 Amounts reclassified from accumulated other comprehensive loss (a) 309 0 309 Other comprehensive income (loss) 309 3,642 3,951 Balance at March 31, 2017 $ (75,878 ) $ (102,681 ) $ (178,559 ) Balance at December 31, 2017 $ (63,520 ) $ (82,474 ) $ (145,994 ) Other comprehensive income (loss) before reclassifications 0 12,758 12,758 Amounts reclassified from accumulated other comprehensive loss (a) 545 0 545 Other comprehensive income (loss) 545 12,758 13,303 Balance at March 31, 2018 $ (62,975 ) $ (69,716 ) $ (132,691 ) (a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 5 in this Form 10-Q and Note 17 in our 2017 Annual Report for further information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value Of Long-Term Debt | March 31, 2018 December 31, 2017 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt (excluding capital lease obligation) $ 619,238 $ 625,235 $ 597,091 $ 623,557 |
Acquisition of Business (Narrat
Acquisition of Business (Narrative) (Details) $ in Thousands | Jul. 03, 2017USD ($) |
Business Acquisition [Line Items] | |
Percentage of business acquired | 99.50% |
Payments to Acquire Businesses, Gross | $ 185,000 |
Goodwill | 118,000 |
MEXICO | |
Business Acquisition [Line Items] | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 0 |
Acquisition of Business (Schedu
Acquisition of Business (Schedule of Business Acquisition, By Acquistion) (Details) $ in Millions | Jul. 03, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 1 |
Trade accounts receivable | 16 |
Inventory | 6 |
Property, plant, and equipment | 53 |
Goodwill | 118 |
Intangible assets | 18 |
Other long-term assets | 2 |
Other current liabilities | (7) |
Other long-term liabilities | (3) |
Deferred taxes | (19) |
Fair value of net assets acquired | $ 185 |
Acquisition of Business (Sche36
Acquisition of Business (Schedule of Finite Lived Intangible Assets Acquired As Part of Business Combination) (Details) - USD ($) $ in Millions | Jul. 03, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||
Intangible assets | $ 18 | |
Formulas And Technology [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 9 | |
Customer Bases [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 9 | |
Estimated economic life, in years | 4 years | |
Minimum [Member] | Formulas And Technology [Member] | ||
Business Acquisition [Line Items] | ||
Estimated economic life, in years | 3 years | 3 years |
Minimum [Member] | Customer Bases [Member] | ||
Business Acquisition [Line Items] | ||
Estimated economic life, in years | 4 years | |
Maximum [Member] | Formulas And Technology [Member] | ||
Business Acquisition [Line Items] | ||
Estimated economic life, in years | 6 years | 10 years |
Maximum [Member] | Customer Bases [Member] | ||
Business Acquisition [Line Items] | ||
Estimated economic life, in years | 20 years |
Net Sales (Narrative) (Details)
Net Sales (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Customer Advances, Current | $ 7.9 | $ 3.3 |
Recognized Revenue in the Current Period From Funds Collected in Advance from Customers in Earlier Period | 3.2 | |
Change in Net Sales Related To Adjustments To Rebates Or Business Development Fund Recognized in Revenue in a Prior Period | 1 | |
Customer Rebates, Current | 11.3 | |
Business Development Fund Accrual | $ 1.5 |
Net Sales ( Schedule of Net Sal
Net Sales ( Schedule of Net Sales by Geographical Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 589,245 | $ 542,818 |
Domestic Plan [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 181,638 | |
China | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 64,211 | |
Europe, Middle East, Africa, India [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 198,660 | |
Asia Pacfic excl China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 82,506 | |
Other Foreign [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 62,230 |
Segment Information (Net Sales
Segment Information (Net Sales By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Information [Line Items] | ||
Net sales | $ 589,245 | $ 542,818 |
Operating Segments [Member] | Petroleum Additives [Member] | ||
Segment Information [Line Items] | ||
Net sales | 586,908 | 540,033 |
Operating Segments [Member] | All Other [Member] | ||
Segment Information [Line Items] | ||
Net sales | 2,337 | 2,785 |
Operating Segments [Member] | Lubricant Additives [Member] | Petroleum Additives [Member] | ||
Segment Information [Line Items] | ||
Net sales | 485,049 | 443,961 |
Operating Segments [Member] | Fuel Additives [Member] | Petroleum Additives [Member] | ||
Segment Information [Line Items] | ||
Net sales | $ 101,859 | $ 96,072 |
Segment Information (Segment Op
Segment Information (Segment Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Information [Line Items] | ||
Segment operating profit | $ 81,575 | $ 90,232 |
Corporate, general, and administrative expenses | (40,913) | (40,449) |
Interest and financing expenses, net | (5,164) | (5,572) |
Other income (expense), net | 4,900 | 3,573 |
Income before income tax expense | 81,311 | 88,233 |
Operating Segments [Member] | ||
Segment Information [Line Items] | ||
Segment operating profit | 84,063 | 96,448 |
Operating Segments [Member] | Petroleum Additives [Member] | ||
Segment Information [Line Items] | ||
Segment operating profit | 84,140 | 95,413 |
Operating Segments [Member] | All Other [Member] | ||
Segment Information [Line Items] | ||
Segment operating profit | (77) | 1,035 |
Corporate, Non-Segment [Member] | ||
Segment Information [Line Items] | ||
Corporate, general, and administrative expenses | (5,664) | (6,346) |
Other income (expense), net | $ 8,076 | $ 3,703 |
Pension Plans and Other Postr41
Pension Plans and Other Postretirement Benefits (Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Pension Plan [Member] | Domestic Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | $ 4,818 |
Expected Remaining Cash Contributions | 14,455 |
Pension Plan [Member] | Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | 1,472 |
Expected Remaining Cash Contributions | 4,472 |
Other Postretirement Benefits Plan [Member] | Domestic Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | 423 |
Expected Remaining Cash Contributions | $ 1,270 |
Pension Plans and Other Postr42
Pension Plans and Other Postretirement Benefits (Net Periodic Benefit Cost (Income) For Pension And Postretirement Benefit Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension Plan [Member] | Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,972 | $ 3,379 |
Interest cost | 3,343 | 3,360 |
Expected return on plan assets | (7,445) | (6,503) |
Amortization of prior service cost (credit) | 7 | 7 |
Amortization of actuarial net (gain) loss | 1,341 | 1,229 |
Net periodic benefit cost (income) | 1,218 | 1,472 |
Pension Plan [Member] | Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2,079 | 1,821 |
Interest cost | 1,164 | 1,018 |
Expected return on plan assets | (2,557) | (2,024) |
Amortization of prior service cost (credit) | (21) | (19) |
Amortization of actuarial net (gain) loss | 155 | 225 |
Net periodic benefit cost (income) | 820 | 1,021 |
Other Postretirement Benefits Plan [Member] | Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 216 | 186 |
Interest cost | 370 | 394 |
Expected return on plan assets | (249) | (309) |
Amortization of prior service cost (credit) | (757) | (757) |
Amortization of actuarial net (gain) loss | 0 | 0 |
Net periodic benefit cost (income) | $ (420) | $ (486) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares of nonvested restricted stock that were excluded from the calculation of diluted earnings per share (in shares) | 25,384 | 23,775 |
Earnings per share numerator: | ||
Net income attributable to common shareholders before allocation of earnings to participating securities | $ 60,565 | $ 63,937 |
Earnings allocated to participating securities | 103 | 127 |
Net income attributable to common shareholders after allocation of earnings to participating securities | $ 60,462 | $ 63,810 |
Earnings per share denominator: | ||
Weighted-average number of shares of common stock outstanding - basic and diluted (in shares) | 11,762,000 | 11,829,000 |
Earnings per share - basic and diluted (in dollars per share) | $ 5.14 | $ 5.39 |
Intangibles (Net of Amortizat44
Intangibles (Net of Amortization) and Goodwill (Narrative) (Details) - USD ($) | Jul. 03, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Net carrying amount of intangibles and goodwill | $ 142,137,000 | $ 144,337,000 | |
Accumulated goodwill impairment | $ 0 | $ 0 | |
Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 10 years | ||
Customer Bases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 4 years | ||
Trademarks And Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 10 years | ||
Minimum [Member] | Formulas And Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 3 years | 3 years | |
Minimum [Member] | Customer Bases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 4 years | ||
Maximum [Member] | Formulas And Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 6 years | 10 years | |
Maximum [Member] | Customer Bases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated economic life, in years | 20 years |
Intangibles (Net of Amortizat45
Intangibles (Net of Amortization) and Goodwill (Schedule Of Information Related To Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Accumulated Amortization | $ 12,739 | $ 9,833 |
Goodwill, Gross Carrying Amount | 123,208 | 122,541 |
Amortizing intangible assets and Goodwill, Gross Carrying Amount | 154,876 | 154,170 |
Formulas And Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 12,365 | 12,339 |
Amortizing intangible assets, Accumulated Amortization | 3,887 | 3,280 |
Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 2,000 | 2,000 |
Amortizing intangible assets, Accumulated Amortization | 250 | 200 |
Customer Bases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 15,766 | 15,759 |
Amortizing intangible assets, Accumulated Amortization | 7,352 | 5,140 |
Trademarks And Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 1,537 | 1,531 |
Amortizing intangible assets, Accumulated Amortization | $ 1,250 | $ 1,213 |
Intangibles (Net of Amortizat46
Intangibles (Net of Amortization) and Goodwill (Schedule Of Amortization Expense And Estimated Annual Amortization Expense Related To Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 2,906 | $ 218 |
2,018 | 4,760 | |
2,019 | 4,675 | |
2,020 | 3,026 | |
2,021 | 2,206 | |
2,022 | 1,473 | |
2,023 | $ 957 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Term of credit facility, years | 5 years | ||
Revolving credit facility, maturity date | Sep. 22, 2022 | ||
Average interest rate during the period | 3.20% | 2.50% | |
4.10% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4.10% | ||
Principal amount of debt | $ 350,000,000 | ||
3.78% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.78% | 3.78% |
Long-term Debt (Schedule Of Lon
Long-term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt and capital lease obligation | $ 624,894 | $ 602,900 | |
4.10% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt and capital lease obligation | $ 347,238 | 347,091 | |
Senior notes, interest rate | 4.10% | ||
Debt instruments maturity date | 2,022 | ||
3.78% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt and capital lease obligation | $ 250,000 | 250,000 | |
Senior notes, interest rate | 3.78% | 3.78% | |
Debt instruments maturity date | 2,029 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt and capital lease obligation | $ 22,000 | 0 | |
Capital Lease Obligation [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt and capital lease obligation | $ 5,656 | $ 5,809 |
Long-term Debt (Schedule Of Unu
Long-term Debt (Schedule Of Unused Portion Of Revolving Credit Facility) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 624,894,000 | $ 602,900,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity under the revolving credit facility | 850,000,000 | 850,000,000 |
Long-term debt | 22,000,000 | 0 |
Outstanding letters of credit | 2,710,000 | 2,830,000 |
Unused portion of revolving credit facility | $ 825,290,000 | $ 847,170,000 |
Commitments and Contingencies (
Commitments and Contingencies (Environmental) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Site Contingency [Line Items] | ||
Accruals for environmental remediation, dismantling, and decontamination | $ 13 | $ 14 |
Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Accruals for environmental remediation, dismantling, and decontamination | 7 | 7 |
Accruals for environmental remediation, dismantling, and decontamination, undiscounted | 9 | 10 |
Former TEL Plant Site, Louisiana [Member] | ||
Site Contingency [Line Items] | ||
Accrual for remediation of groundwater and soil | 3 | 3 |
Houston, Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Accrual for remediation of groundwater and soil | $ 4 | $ 4 |
Minimum [Member] | Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Discount rate | 4.00% | 4.00% |
Maximum [Member] | Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Discount rate | 9.00% | 9.00% |
Other Comprehensive Income (L51
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Schedule of Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Pension Plans and Other Postretirement Benefits, Beginning Balance | $ (63,520) | $ (76,187) | |
Foreign Currency Translation Adjustments, Beginning Balance | (82,474) | (106,323) | |
Accumulated Other Comprehensive (Loss) Income, Beginning Balance | (145,994) | (182,510) | |
Other comprehensive income (loss) before reclassifications, Pension Plans and Other Postretirement Benefits | 0 | 0 | |
Other comprehensive income (loss) before reclassifications, Foreign Currency Translation Adjustments | 12,758 | 3,642 | |
Other comprehensive income (loss) before reclassifications, Accumulated Other Comprehensive (Loss) Income | 12,758 | 3,642 | |
Amounts reclassified from accumulated other comprehensive loss, Pension Plans and Other Postretirement Benefits | [1] | 545 | 309 |
Amounts reclassified from accumulated other comprehensive loss, Foreign Currency Translation Adjustments | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss, Accumulated Other Comprehensive (Loss) Income | 545 | 309 | |
Total pension plans and other postretirement benefits | 545 | 309 | |
Other comprehensive income (loss), Foreign Currency Translation Adjustments | 12,758 | 3,642 | |
Other comprehensive income (loss) | 13,303 | 3,951 | |
Pension Plans and Other Postretirement Benefits, Ending Balance | (62,975) | (75,878) | |
Foreign Currency Translation Adjustments, Ending Balance | (69,716) | (102,681) | |
Accumulated Other Comprehensive (Loss) Income, Ending Balance | $ (132,691) | $ (178,559) | |
[1] | The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 5 in this Form 10-Q and Note 17 in our 2017 Annual Report for further information. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 72,830 | $ 84,166 | $ 251,244 | $ 192,154 |
4.10% Senior Notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior notes, interest rate | 4.10% | |||
Carrying Amount in Consolidated Balance Sheets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 72,830 | 84,166 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | $ 72,830 | $ 84,166 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt (excluding capital lease obligation) | $ 619,238 | $ 597,091 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (excluding capital lease obligation), Fair Value | $ 625,235 | $ 623,557 |
Income Taxes (Details)
Income Taxes (Details) | Jan. 01, 2018 |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Recent Accounting Pronounceme55
Recent Accounting Pronouncements (Narrative) (Details) - Accounting Standards Update 201707 [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ (3) |
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Other Income | $ 3 |