Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Fiscal Period Focus | Q2 |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2020 |
Document Transition Report | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 1-32190 |
Entity Registrant Name | NEWMARKET CORPORATION |
Entity Central Index Key | 0001282637 |
Entity Incorporation, State or Country Code | VA |
Entity Tax Identification Number | 20-0812170 |
Entity Address, Address Line One | 330 South Fourth Street |
Entity Address, City or Town | Richmond, |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 23219-4350 |
City Area Code | 804 |
Local Phone Number | 788-5000 |
Title of 12(b) Security | Common Stock, with no par value |
Trading Symbol | NEU |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Small Business Company | false |
Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 10,923,999 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 410,864 | $ 563,417 | $ 970,281 | $ 1,100,033 |
Cost of goods sold | 314,126 | 392,584 | 692,636 | 776,331 |
Gross profit | 96,738 | 170,833 | 277,645 | 323,702 |
Selling, general, and administrative expenses | 35,432 | 35,021 | 71,147 | 71,794 |
Research, development, and testing expenses | 33,549 | 37,137 | 69,055 | 70,361 |
Operating profit | 27,757 | 98,675 | 137,443 | 181,547 |
Interest and financing expenses, net | 7,005 | 7,741 | 14,109 | 15,753 |
Other income (expense), net | 6,516 | 5,757 | 14,012 | 11,705 |
Income before income tax expense | 27,268 | 96,691 | 137,346 | 177,499 |
Income tax expense | 4,919 | 22,517 | 29,456 | 41,120 |
Net income | $ 22,349 | $ 74,174 | $ 107,890 | $ 136,379 |
Earnings per share - basic and diluted (in dollars per share) | $ 2.05 | $ 6.63 | $ 9.78 | $ 12.20 |
Cash dividends declared per share (in dollars per share) | $ 1.90 | $ 1.75 | $ 3.80 | $ 3.50 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22,349 | $ 74,174 | $ 107,890 | $ 136,379 |
Pension plans and other postretirement benefits: | ||||
Amortization of prior service cost (credit) included in net periodic benefit cost (income), net of income tax expense (benefit) of $(171) in second quarter 2020, $(186) in second quarter 2019, $(341) in six months 2020, and $(371) in six months 2019 | (531) | (601) | (1,062) | (1,202) |
Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), net of income tax expense (benefit) of $396 in second quarter 2020, $251 in second quarter 2019, $793 in six months 2020, and $505 in six months 2019 | 1,260 | 834 | 2,527 | 1,675 |
Total pension plans and other postretirement benefits | 729 | 233 | 1,465 | 473 |
Foreign currency translation adjustments, net of income tax expense (benefit) of $(151) in second quarter 2020, $114 in second quarter 2019, $(992) in six months 2020, and $7 in six months 2019 | (1,038) | (4,366) | (15,369) | 580 |
Other comprehensive income (loss) | (309) | (4,133) | (13,904) | 1,053 |
Comprehensive income | 22,040 | 70,041 | 93,986 | 137,432 |
Amortization of prior service cost (credit) included in net periodic benefit cost (income), income tax expense (benefit) | (171) | (186) | (341) | (371) |
Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), income tax expense (benefit) | 396 | 251 | 793 | 505 |
Foreign currency translation adjustments, income tax expense (benefit) | $ (151) | $ 114 | $ (992) | $ 7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 102,064 | $ 144,397 |
Trade and other accounts receivable, less allowance for credit losses | 297,862 | 335,826 |
Inventories | 354,821 | 365,938 |
Prepaid expenses and other current assets | 35,277 | 33,237 |
Total current assets | 790,024 | 879,398 |
Property, plant, and equipment, net | 639,344 | 635,439 |
Intangibles (net of amortization) and goodwill | 130,903 | 131,880 |
Prepaid pension cost | 139,481 | 133,848 |
Operating lease right-of-use assets | 55,935 | 60,505 |
Deferred charges and other assets | 43,450 | 44,062 |
Total assets | 1,799,137 | 1,885,132 |
Current liabilities: | ||
Accounts payable | 127,401 | 178,773 |
Accrued expenses | 62,004 | 77,350 |
Dividends payable | 18,530 | 19,217 |
Income taxes payable | 3,508 | 10,632 |
Operating lease liabilities | 12,592 | 14,036 |
Other current liabilities | 9,948 | 8,887 |
Total current liabilities | 233,983 | 308,895 |
Long-term debt | 690,292 | 642,941 |
Operating lease liabilities-noncurrent | 42,942 | 46,792 |
Other noncurrent liabilities | 196,635 | 203,406 |
Total liabilities | 1,163,852 | 1,202,034 |
Commitments and contingencies (Note 9) | ||
Shareholders’ equity: | ||
Common stock and paid-in capital (with no par value; authorized shares - 80,000,000; issued and outstanding shares - 10,923,999 at June 30, 2020 and 11,188,549 at December 31, 2019) | 281 | 1,965 |
Accumulated other comprehensive loss | (176,652) | (162,748) |
Retained earnings | 811,656 | 843,881 |
Total shareholders' equity | 635,285 | 683,098 |
Total liabilities and shareholders’ equity | $ 1,799,137 | $ 1,885,132 |
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 |
Common Stock, Shares, Issued | 10,923,999 | 11,188,549 |
Common Stock, Shares, Outstanding | 10,923,999 | 11,188,549 |
Common Stock, No Par Value | $ 0 | $ 0 |
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, 2018 | 11,184,482 | |||
Balance at Dec. 31, 2018 | $ 489,907 | $ 0 | $ (181,316) | $ 671,223 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 136,379 | 136,379 | ||
Other comprehensive income (loss) | 1,053 | 1,053 | ||
Cash dividends | (39,158) | (39,158) | ||
Stock-based compensation (in shares) | 3,644 | |||
Stock-based compensation | 995 | $ 949 | 46 | |
Balance (in shares) at Jun. 30, 2019 | 11,188,126 | |||
Balance at Jun. 30, 2019 | $ 589,176 | $ 949 | (180,263) | 768,490 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends (in dollars per share) | $ 3.50 | |||
Balance (in shares) at Mar. 31, 2019 | 11,188,126 | |||
Balance at Mar. 31, 2019 | $ 538,196 | $ 431 | (176,130) | 713,895 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 74,174 | 74,174 | ||
Other comprehensive income (loss) | (4,133) | (4,133) | ||
Cash dividends | (19,579) | (19,579) | ||
Stock-based compensation | 518 | $ 518 | ||
Balance (in shares) at Jun. 30, 2019 | 11,188,126 | |||
Balance at Jun. 30, 2019 | $ 589,176 | $ 949 | (180,263) | 768,490 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends (in dollars per share) | $ 1.75 | |||
Balance (in shares) at Dec. 31, 2019 | 11,188,549 | 11,188,549 | ||
Balance at Dec. 31, 2019 | $ 683,098 | $ 1,965 | (162,748) | 843,881 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 107,890 | 107,890 | ||
Other comprehensive income (loss) | (13,904) | (13,904) | ||
Cash dividends | (41,916) | (41,916) | ||
Repurchases of common stock (in shares) | (267,128) | |||
Repurchases of common stock | (100,000) | $ (1,760) | (98,240) | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (1,547) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (641) | $ (641) | ||
Stock-based compensation (in shares) | 4,125 | |||
Stock-based compensation | $ 758 | $ 717 | 41 | |
Balance (in shares) at Jun. 30, 2020 | 10,923,999 | 10,923,999 | ||
Balance at Jun. 30, 2020 | $ 635,285 | $ 281 | (176,652) | 811,656 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends (in dollars per share) | $ 3.80 | |||
Balance (in shares) at Mar. 31, 2020 | 10,938,744 | |||
Balance at Mar. 31, 2020 | $ 639,249 | $ 0 | (176,343) | 815,592 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 22,349 | 22,349 | ||
Other comprehensive income (loss) | (309) | (309) | ||
Cash dividends | (20,756) | (20,756) | ||
Repurchases of common stock (in shares) | (14,745) | |||
Repurchases of common stock | (5,662) | $ (133) | (5,529) | |
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (8) | (8) | ||
Stock-based compensation | $ 422 | $ 422 | ||
Balance (in shares) at Jun. 30, 2020 | 10,923,999 | 10,923,999 | ||
Balance at Jun. 30, 2020 | $ 635,285 | $ 281 | $ (176,652) | $ 811,656 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends (in dollars per share) | $ 1.90 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents at beginning of year | $ 144,397 | $ 73,040 |
Cash flows from operating activities: | ||
Net income | 107,890 | 136,379 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Depreciation and amortization | 42,356 | 43,716 |
Deferred income tax expense | 3,322 | 4,154 |
Working capital changes | (60,072) | (27,079) |
Cash pension and postretirement contributions | (5,152) | (4,869) |
Other, net | 5,953 | (1,685) |
Net Cash Provided by (Used in) Operating Activities | 94,297 | 150,616 |
Cash flows from investing activities: | ||
Capital expenditures | (40,088) | (23,219) |
Other, net | (927) | 0 |
Net Cash Provided by (Used in) Investing Activities | (41,015) | (23,219) |
Cash flows from financing activities: | ||
Net borrowings (repayments) under revolving credit facility | 47,059 | (87,296) |
Dividends paid | (41,916) | (39,158) |
Repurchases of common stock | (100,000) | 0 |
Other, net | 2,217 | (1,233) |
Net Cash Provided by (Used in) Financing Activities | (92,640) | (127,687) |
Effect of foreign exchange on cash and cash equivalents | (2,975) | 469 |
(Decrease) increase in cash and cash equivalents | (42,333) | 179 |
Cash and cash equivalents at end of period | $ 102,064 | $ 73,219 |
Financial Statement Presentatio
Financial Statement Presentation | 6 Months Ended |
Jun. 30, 2020 | |
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 presentation of, in all material respects, our consolidated financial position as of June 30, 2020 and December 31, 2019, and our consolidated results of operations, comprehensive income, and changes in shareholders' equity for the second quarter and six months ended June 30, 2020 and June 30, 2019, and our cash flows for the six months ended June 30, 2020 and June 30, 2019. 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, 2019 (2019 Annual Report), as filed with the Securities and Exchange Commission (SEC). The results of operations for the six month period ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020. The December 31, 2019 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. We adopted Accounting Standard Update No. 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13) on January 1, 2020. ASU 2016-13 mandates a methodology be utilized that determines expected credit losses on financial instruments instead of the former methodology that delayed recognition until a probable loss had been incurred. |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales Our revenues are primarily derived from the manufacture and sale of petroleum additives products. We sell petroleum additives products across the world to customers located in the North America, Latin America, Asia Pacific, and Europe/Middle East/Africa/India regions. Our customers primarily consist of global, national, and independent oil companies. Our contracts generally include one performance obligation, which is providing petroleum additives 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. 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. Some of our contracts include variable consideration in the form of rebates or business development funds. 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. The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 3. Second Quarter Ended Six Months Ended (in thousands) 2020 2019 2020 2019 Net sales United States $ 119,928 $ 188,031 $ 301,772 $ 360,045 China 57,442 62,115 103,240 121,408 Europe, Middle East, Africa, India 130,944 178,593 321,567 346,912 Asia Pacific, except China 66,759 80,301 146,172 162,830 Other foreign 35,791 54,377 97,530 108,838 Net sales $ 410,864 $ 563,417 $ 970,281 $ 1,100,033 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The tables below show our consolidated segment results. The “All other” category includes the operations of the antiknock compounds business, as well as certain contracted manufacturing and services associated with Ethyl Corporation (Ethyl). Net Sales by Segment Second Quarter Ended Six Months Ended (in thousands) 2020 2019 2020 2019 Petroleum additives Lubricant additives $ 343,418 $ 462,659 $ 807,104 $ 899,879 Fuel additives 65,285 98,165 158,971 193,624 Total 408,703 560,824 966,075 1,093,503 All other 2,161 2,593 4,206 6,530 Net sales $ 410,864 $ 563,417 $ 970,281 $ 1,100,033 Segment Operating Profit Second Quarter Ended Six Months Ended (in thousands) 2020 2019 2020 2019 Petroleum additives $ 33,061 $ 102,992 $ 146,732 $ 190,855 All other (399) (342) (64) 169 Segment operating profit 32,662 102,650 146,668 191,024 Corporate, general, and administrative expenses (5,467) (4,275) (9,698) (9,369) Interest and financing expenses, net (7,005) (7,741) (14,109) (15,753) Other income (expense), net 7,078 6,057 14,485 11,597 Income before income tax expense $ 27,268 $ 96,691 $ 137,346 $ 177,499 |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits The table below shows cash contributions made during the six months ended June 30, 2020, as well as the remaining cash contributions we expect to make during the year ending December 31, 2020, for our domestic and foreign pension plans and domestic postretirement benefit plan. (in thousands) Actual Cash Contributions for Six Months Ended June 30, 2020 Expected Remaining Cash Contributions for Year Ending December 31, 2020 Domestic plans Pension benefits $ 1,447 $ 2,893 Postretirement benefits 894 1,788 Foreign plans Pension benefits 2,811 2,676 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 reflected in cost of goods sold; selling, general, and administrative expenses; or research, development, and testing expenses, to reflect where other compensation costs arising from services rendered by the pertinent employee are recorded on the Consolidated Statements of Income. The remaining components of net periodic benefit cost (income) are recorded in other income (expense), net on the Consolidated Statements of Income. Domestic Pension Benefits Postretirement Benefits Second Quarter Ended June 30, (in thousands) 2020 2019 2020 2019 Service cost $ 4,198 $ 3,624 $ 217 $ 194 Interest cost 3,509 3,686 346 389 Expected return on plan assets (9,306) (8,657) (241) (244) Amortization of prior service cost (credit) 67 (19) (757) (757) Amortization of actuarial net (gain) loss 1,316 854 0 0 Net periodic benefit cost (income) $ (216) $ (512) $ (435) $ (418) Domestic Pension Benefits Postretirement Benefits Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service cost $ 8,395 $ 7,247 $ 434 $ 388 Interest cost 7,017 7,371 691 778 Expected return on plan assets (18,611) (17,314) (482) (488) Amortization of prior service cost (credit) 133 (38) (1,514) (1,514) Amortization of actuarial net (gain) loss 2,632 1,707 0 0 Net periodic benefit cost (income) $ (434) $ (1,027) $ (871) $ (836) Foreign Pension Benefits Second Quarter Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service cost $ 2,061 $ 1,618 $ 4,207 $ 3,258 Interest cost 929 1,206 1,913 2,427 Expected return on plan assets (2,334) (2,327) (4,795) (4,680) Amortization of prior service cost (credit) (10) (10) (21) (21) Amortization of actuarial net (gain) loss 339 235 692 474 Net periodic benefit cost (income) $ 985 $ 722 $ 1,996 $ 1,458 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We had 19,858 shares of nonvested restricted stock at June 30, 2020 and 22,536 shares of nonvested restricted stock at June 30, 2019 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 the most dilutive result. The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share. Second Quarter Ended Six Months Ended (in thousands, except per-share amounts) 2020 2019 2020 2019 Earnings per share numerator: Net income attributable to common shareholders before allocation of earnings to participating securities $ 22,349 $ 74,174 $ 107,890 $ 136,379 Earnings allocated to participating securities 42 147 154 211 Net income attributable to common shareholders after allocation of earnings to participating securities $ 22,307 $ 74,027 $ 107,736 $ 136,168 Earnings per share denominator: Weighted-average number of shares of common stock outstanding - basic and diluted 10,904 11,166 11,020 11,166 Earnings per share - basic and diluted $ 2.05 $ 6.63 $ 9.78 $ 12.20 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, December 31, (in thousands) 2020 2019 Finished goods and work-in-process $ 281,351 $ 295,997 Raw materials 58,546 55,702 Stores, supplies, and other 14,924 14,239 $ 354,821 $ 365,938 |
Intangibles (Net of Amortizatio
Intangibles (Net of Amortization) and Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles (Net of Amortization) and Goodwill | Intangibles (Net of Amortization) and GoodwillThe net carrying amount of intangibles and goodwill was $131 million at June 30, 2020 and $132 million at December 31, 2019. The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below. June 30, 2020 December 31, 2019 (in thousands) Gross Accumulated Gross Accumulated Amortizing intangible assets Formulas and technology $ 9,600 $ 6,500 $ 9,600 $ 5,416 Contract 2,000 700 2,000 600 Customer bases 14,240 11,483 14,240 10,931 Goodwill 123,746 122,987 $ 149,586 $ 18,683 $ 148,827 $ 16,947 All of the intangibles relate to the petroleum additives segment. The change in the gross carrying amount between December 31, 2019 and June 30, 2020 is due to foreign currency fluctuation, as well as the completion in May 2020 of the purchase of the remaining outstanding capital stock of Aditivos Mexicanos, S.A. de C.V. (AMSA), which we acquired in 2017. The prior noncontrolling interest represented by the outstanding capital stock of AMSA was not material. There is no accumulated goodwill impairment. Amortization expense was (in thousands): Second quarter ended June 30, 2020 $ 1,009 Six months ended June 30, 2020 1,736 Second quarter ended June 30, 2019 1,052 Six months ended June 30, 2019 2,103 Estimated amortization expense for the remainder of 2020, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands): 2020 $ 1,171 2021 2,156 2022 1,423 2023 907 2024 390 2025 390 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | Long-term Debt (in thousands) June 30, December 31, Senior notes - 4.10% due 2022 (net of related deferred financing costs) $ 348,555 $ 348,263 Senior notes - 3.78% due 2029 250,000 250,000 Revolving credit facility 91,737 44,678 $ 690,292 $ 642,941 Senior Notes - The outstanding 4.10% senior notes are unsecured, with 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. The 3.78% senior notes agreement was amended in March 2020 to conform the covenants under the agreement with those in the 2020 revolving credit facility. We were in compliance with all covenants under both issuances of the senior notes as of June 30, 2020 and December 31, 2019. Revolving Credit Facility - On March 5, 2020, we entered into a Credit Agreement (the Credit Agreement) with a term of five years. The Credit Agreement provides for a $900 million, multicurrency revolving credit facility, with a $500 million sublimit for multicurrency borrowings, a $50 million sublimit for letters of credit, and a $20 million sublimit for swingline loans. The Credit Agreement includes an expansion feature which allows us, subject to certain conditions, to request an increase in the aggregate amount of the revolving credit facility or obtain incremental term loans in an amount up to $425 million. Concurrent with entering into the Credit Agreement, we terminated our former revolving credit facility that we had entered into in 2017. The obligations under the Credit Agreement are unsecured and are fully and unconditionally guaranteed by NewMarket. The revolving credit facility is available on a revolving basis until March 5, 2025. Borrowings made under the revolving credit facility bear interest, at our option, at an annual rate equal to (1) the Alternate Base Rate (ABR) plus the Applicable Rate (as defined in the Credit Agreement) solely in the case of loans denominated in U.S. dollars to NewMarket, (2) the Adjusted LIBO Rate plus the Applicable Rate, or (3) the Adjusted EURIBO Rate plus the Applicable Rate. ABR is the greatest of (i) the rate of interest publicly announced by the Administrative Agent as its prime rate, (ii) the NYFRB Rate (as defined in the Credit Agreement) from time to time plus 0.5%, and (iii) the Adjusted LIBO Rate for a one month interest period plus 1%. The Adjusted LIBO Rate means the rate at which Eurocurrency deposits in the London interbank market for certain periods (as selected by NewMarket) are quoted, as adjusted for statutory reserve requirements for Eurocurrency liabilities and other applicable mandatory costs. The Adjusted EURIBO Rate means the rate at which Eurocurrency deposits denominated in euro in the euro interbank markets for certain periods (as selected by NewMarket) are quoted, as adjusted for statutory reserve requirements for Eurocurrency liabilities and other mandatory costs. The Applicable Rate ranges from 0.000% to 0.375% (depending on our Leverage Ratio or Credit Ratings) for loans bearing interest based on the ABR. The Applicable Rate ranges from 0.875% to 1.375% (depending on our Leverage Ratio or Credit Ratings) for loans bearing interest based on the Adjusted LIBO Rate or the Adjusted EURIBO rate. The Credit Agreement contains the Administrative Agent's customary LIBOR successor rate provisions, which apply in the event LIBOR is no longer generally adopted as the benchmark rate for syndicated loans. The Credit Agreement contains financial covenants that require NewMarket to maintain a consolidated Leverage Ratio (as defined in the Credit Agreement) of no more than 3.75 to 1.00 except during an Increased Leverage Period (as defined in the Credit Agreement). We were in compliance with all covenants under the revolving credit facility in effect at June 30, 2020 and at December 31, 2019. We paid financing costs in 2020 of approximately $1.3 million related to this revolving credit facility and carried over deferred financing costs from our previous revolving credit facility of approximately $1.2 million, resulting in total deferred financing costs of $2.5 million as of June 30, 2020, which we are amortizing over the term of the Credit Agreement. The average interest rate for borrowings under the credit agreements was 1.5% during the first six months of 2020 and 3.0% during the full year of 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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. 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 consolidated financial position, results of operations, and cash flows. Our total accruals for environmental remediation, dismantling, and decontamination were approximately $10 million at June 30, 2020 and $11 million at December 31, 2019. 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. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
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 Foreign Currency Translation Adjustments Accumulated Other Balance at December 31, 2018 $ (86,555) $ (94,761) $ (181,316) Other comprehensive income (loss) before reclassifications 0 580 580 Amounts reclassified from accumulated other comprehensive loss (a) 473 0 473 Other comprehensive income (loss) 473 580 1,053 Balance at June 30, 2019 $ (86,082) $ (94,181) $ (180,263) Balance at December 31, 2019 $ (69,795) $ (92,953) $ (162,748) Other comprehensive income (loss) before reclassifications 0 (15,369) (15,369) Amounts reclassified from accumulated other comprehensive loss (a) 1,465 0 1,465 Other comprehensive income (loss) 1,465 (15,369) (13,904) Balance at June 30, 2020 $ (68,330) $ (108,322) $ (176,652) (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 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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 $102 million at June 30, 2020 and $144 million at December 31, 2019. The fair value is categorized in Level 1 of the fair value hierarchy. No material events occurred during the six months ended June 30, 2020 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 based on the last quoted price closest to June 30, 2020. The fair value of our debt instruments is categorized as Level 2. June 30, 2020 December 31, 2019 (in thousands) Carrying Fair Carrying Fair Long-term debt $ 690,292 $ 748,286 $ 642,941 $ 677,253 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting PronouncementsRecently Issued Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (ASU 2020-04), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We continue to evaluate the impact of ASU 2020-04 on our consolidated financial statements, but do not currently expect a significant impact. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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. |
New Accounting Pronouncements Policy | We adopted Accounting Standard Update No. 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13) on January 1, 2020. ASU 2016-13 mandates a methodology be utilized that determines expected credit losses on financial instruments instead of the former methodology that delayed recognition until a probable loss had been incurred. We record our accounts receivable at amortized cost and at the net amount expected to be collected. Our accounts receivable are predominantly trade receivables and are derived through the sale of petroleum additives products. Our customers primarily consist of global, national, and independent oil companies. We maintain an allowance for credit losses for expected losses resulting from our customers not making required payments. We determine the adequacy of the allowance by periodically evaluating each customer’s receivable balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. The allowance for credit losses was not material at June 30, 2020 or December 31, 2019. |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales by Geographic Area | The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 3. Second Quarter Ended Six Months Ended (in thousands) 2020 2019 2020 2019 Net sales United States $ 119,928 $ 188,031 $ 301,772 $ 360,045 China 57,442 62,115 103,240 121,408 Europe, Middle East, Africa, India 130,944 178,593 321,567 346,912 Asia Pacific, except China 66,759 80,301 146,172 162,830 Other foreign 35,791 54,377 97,530 108,838 Net sales $ 410,864 $ 563,417 $ 970,281 $ 1,100,033 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Net Sales by Segment | Net Sales by Segment Second Quarter Ended Six Months Ended (in thousands) 2020 2019 2020 2019 Petroleum additives Lubricant additives $ 343,418 $ 462,659 $ 807,104 $ 899,879 Fuel additives 65,285 98,165 158,971 193,624 Total 408,703 560,824 966,075 1,093,503 All other 2,161 2,593 4,206 6,530 Net sales $ 410,864 $ 563,417 $ 970,281 $ 1,100,033 |
Segment Operating Profit | Segment Operating Profit Second Quarter Ended Six Months Ended (in thousands) 2020 2019 2020 2019 Petroleum additives $ 33,061 $ 102,992 $ 146,732 $ 190,855 All other (399) (342) (64) 169 Segment operating profit 32,662 102,650 146,668 191,024 Corporate, general, and administrative expenses (5,467) (4,275) (9,698) (9,369) Interest and financing expenses, net (7,005) (7,741) (14,109) (15,753) Other income (expense), net 7,078 6,057 14,485 11,597 Income before income tax expense $ 27,268 $ 96,691 $ 137,346 $ 177,499 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020, as well as the remaining cash contributions we expect to make during the year ending December 31, 2020, for our domestic and foreign pension plans and domestic postretirement benefit plan. (in thousands) Actual Cash Contributions for Six Months Ended June 30, 2020 Expected Remaining Cash Contributions for Year Ending December 31, 2020 Domestic plans Pension benefits $ 1,447 $ 2,893 Postretirement benefits 894 1,788 Foreign plans Pension benefits 2,811 2,676 |
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 reflected in cost of goods sold; selling, general, and administrative expenses; or research, development, and testing expenses, to reflect where other compensation costs arising from services rendered by the pertinent employee are recorded on the Consolidated Statements of Income. The remaining components of net periodic benefit cost (income) are recorded in other income (expense), net on the Consolidated Statements of Income. Domestic Pension Benefits Postretirement Benefits Second Quarter Ended June 30, (in thousands) 2020 2019 2020 2019 Service cost $ 4,198 $ 3,624 $ 217 $ 194 Interest cost 3,509 3,686 346 389 Expected return on plan assets (9,306) (8,657) (241) (244) Amortization of prior service cost (credit) 67 (19) (757) (757) Amortization of actuarial net (gain) loss 1,316 854 0 0 Net periodic benefit cost (income) $ (216) $ (512) $ (435) $ (418) Domestic Pension Benefits Postretirement Benefits Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service cost $ 8,395 $ 7,247 $ 434 $ 388 Interest cost 7,017 7,371 691 778 Expected return on plan assets (18,611) (17,314) (482) (488) Amortization of prior service cost (credit) 133 (38) (1,514) (1,514) Amortization of actuarial net (gain) loss 2,632 1,707 0 0 Net periodic benefit cost (income) $ (434) $ (1,027) $ (871) $ (836) Foreign Pension Benefits Second Quarter Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service cost $ 2,061 $ 1,618 $ 4,207 $ 3,258 Interest cost 929 1,206 1,913 2,427 Expected return on plan assets (2,334) (2,327) (4,795) (4,680) Amortization of prior service cost (credit) (10) (10) (21) (21) Amortization of actuarial net (gain) loss 339 235 692 474 Net periodic benefit cost (income) $ 985 $ 722 $ 1,996 $ 1,458 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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. Second Quarter Ended Six Months Ended (in thousands, except per-share amounts) 2020 2019 2020 2019 Earnings per share numerator: Net income attributable to common shareholders before allocation of earnings to participating securities $ 22,349 $ 74,174 $ 107,890 $ 136,379 Earnings allocated to participating securities 42 147 154 211 Net income attributable to common shareholders after allocation of earnings to participating securities $ 22,307 $ 74,027 $ 107,736 $ 136,168 Earnings per share denominator: Weighted-average number of shares of common stock outstanding - basic and diluted 10,904 11,166 11,020 11,166 Earnings per share - basic and diluted $ 2.05 $ 6.63 $ 9.78 $ 12.20 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, December 31, (in thousands) 2020 2019 Finished goods and work-in-process $ 281,351 $ 295,997 Raw materials 58,546 55,702 Stores, supplies, and other 14,924 14,239 $ 354,821 $ 365,938 |
Intangibles (Net of Amortizat_2
Intangibles (Net of Amortization) and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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. June 30, 2020 December 31, 2019 (in thousands) Gross Accumulated Gross Accumulated Amortizing intangible assets Formulas and technology $ 9,600 $ 6,500 $ 9,600 $ 5,416 Contract 2,000 700 2,000 600 Customer bases 14,240 11,483 14,240 10,931 Goodwill 123,746 122,987 $ 149,586 $ 18,683 $ 148,827 $ 16,947 |
Schedule Of Amortization Expense | Amortization expense was (in thousands): Second quarter ended June 30, 2020 $ 1,009 Six months ended June 30, 2020 1,736 Second quarter ended June 30, 2019 1,052 Six months ended June 30, 2019 2,103 |
Schedule Of Estimated Annual Amortization Expense Related To Intangible Assets | Estimated amortization expense for the remainder of 2020, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands): 2020 $ 1,171 2021 2,156 2022 1,423 2023 907 2024 390 2025 390 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule Of Long-Term Debt | (in thousands) June 30, December 31, Senior notes - 4.10% due 2022 (net of related deferred financing costs) $ 348,555 $ 348,263 Senior notes - 3.78% due 2029 250,000 250,000 Revolving credit facility 91,737 44,678 $ 690,292 $ 642,941 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Foreign Currency Translation Adjustments Accumulated Other Balance at December 31, 2018 $ (86,555) $ (94,761) $ (181,316) Other comprehensive income (loss) before reclassifications 0 580 580 Amounts reclassified from accumulated other comprehensive loss (a) 473 0 473 Other comprehensive income (loss) 473 580 1,053 Balance at June 30, 2019 $ (86,082) $ (94,181) $ (180,263) Balance at December 31, 2019 $ (69,795) $ (92,953) $ (162,748) Other comprehensive income (loss) before reclassifications 0 (15,369) (15,369) Amounts reclassified from accumulated other comprehensive loss (a) 1,465 0 1,465 Other comprehensive income (loss) 1,465 (15,369) (13,904) Balance at June 30, 2020 $ (68,330) $ (108,322) $ (176,652) (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 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value Of Long-Term Debt | June 30, 2020 December 31, 2019 (in thousands) Carrying Fair Carrying Fair Long-term debt $ 690,292 $ 748,286 $ 642,941 $ 677,253 |
Net Sales (Schedule of Net Sale
Net Sales (Schedule of Net Sales by Geographical Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 410,864 | $ 563,417 | $ 970,281 | $ 1,100,033 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 119,928 | 188,031 | 301,772 | 360,045 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 57,442 | 62,115 | 103,240 | 121,408 |
Europe, Middle East, Africa, India [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 130,944 | 178,593 | 321,567 | 346,912 |
Asia Pacfic excl China [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 66,759 | 80,301 | 146,172 | 162,830 |
Other Foreign [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 35,791 | $ 54,377 | $ 97,530 | $ 108,838 |
Segment Information (Net Sales
Segment Information (Net Sales By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Information [Line Items] | ||||
Net sales | $ 410,864 | $ 563,417 | $ 970,281 | $ 1,100,033 |
Operating Segments [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | 408,703 | 560,824 | 966,075 | 1,093,503 |
Operating Segments [Member] | All Other [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | 2,161 | 2,593 | 4,206 | 6,530 |
Operating Segments [Member] | Lubricant Additives [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | 343,418 | 462,659 | 807,104 | 899,879 |
Operating Segments [Member] | Fuel Additives [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Net sales | $ 65,285 | $ 98,165 | $ 158,971 | $ 193,624 |
Segment Information (Segment Op
Segment Information (Segment Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Information [Line Items] | ||||
Segment operating profit | $ 27,757 | $ 98,675 | $ 137,443 | $ 181,547 |
Corporate, general, and administrative expenses | (35,432) | (35,021) | (71,147) | (71,794) |
Interest and financing expenses, net | (7,005) | (7,741) | (14,109) | (15,753) |
Other income (expense), net | 6,516 | 5,757 | 14,012 | 11,705 |
Income before income tax expense | 27,268 | 96,691 | 137,346 | 177,499 |
Operating Segments [Member] | ||||
Segment Information [Line Items] | ||||
Segment operating profit | 32,662 | 102,650 | 146,668 | 191,024 |
Operating Segments [Member] | Petroleum Additives [Member] | ||||
Segment Information [Line Items] | ||||
Segment operating profit | 33,061 | 102,992 | 146,732 | 190,855 |
Operating Segments [Member] | All Other [Member] | ||||
Segment Information [Line Items] | ||||
Segment operating profit | (399) | (342) | (64) | 169 |
Corporate, Non-Segment [Member] | ||||
Segment Information [Line Items] | ||||
Corporate, general, and administrative expenses | (5,467) | (4,275) | (9,698) | (9,369) |
Interest and financing expenses, net | (7,005) | (7,741) | (14,109) | (15,753) |
Other income (expense), net | $ 7,078 | $ 6,057 | $ 14,485 | $ 11,597 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits (Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Pension Plan [Member] | Domestic Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | $ 1,447 |
Expected Remaining Cash Contributions | 2,893 |
Pension Plan [Member] | Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | 2,811 |
Expected Remaining Cash Contributions | 2,676 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual Cash Contributions | 894 |
Expected Remaining Cash Contributions | $ 1,788 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits (Net Periodic Benefit Cost (Income) For Pension And Postretirement Benefit Plans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension Plan [Member] | Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4,198 | $ 3,624 | $ 8,395 | $ 7,247 |
Interest cost | 3,509 | 3,686 | 7,017 | 7,371 |
Expected return on plan assets | (9,306) | (8,657) | (18,611) | (17,314) |
Amortization of prior service cost (credit) | 67 | (19) | 133 | (38) |
Amortization of actuarial net (gain) loss | 1,316 | 854 | 2,632 | 1,707 |
Net periodic benefit cost (income) | (216) | (512) | (434) | (1,027) |
Pension Plan [Member] | Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,061 | 1,618 | 4,207 | 3,258 |
Interest cost | 929 | 1,206 | 1,913 | 2,427 |
Expected return on plan assets | (2,334) | (2,327) | (4,795) | (4,680) |
Amortization of prior service cost (credit) | (10) | (10) | (21) | (21) |
Amortization of actuarial net (gain) loss | 339 | 235 | 692 | 474 |
Net periodic benefit cost (income) | 985 | 722 | 1,996 | 1,458 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 217 | 194 | 434 | 388 |
Interest cost | 346 | 389 | 691 | 778 |
Expected return on plan assets | (241) | (244) | (482) | (488) |
Amortization of prior service cost (credit) | (757) | (757) | (1,514) | (1,514) |
Amortization of actuarial net (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | $ (435) | $ (418) | $ (871) | $ (836) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares of nonvested restricted stock that were excluded from the calculation of diluted earnings per share (in shares) | 19,858 | 22,536 | ||
Earnings per share numerator: | ||||
Net income attributable to common shareholders before allocation of earnings to participating securities | $ 22,349 | $ 74,174 | $ 107,890 | $ 136,379 |
Earnings allocated to participating securities | 42 | 147 | 154 | 211 |
Net income attributable to common shareholders after allocation of earnings to participating securities | $ 22,307 | $ 74,027 | $ 107,736 | $ 136,168 |
Earnings per share denominator: | ||||
Weighted-average number of shares of common stock outstanding - basic and diluted (in shares) | 10,904,000 | 11,166,000 | 11,020,000 | 11,166,000 |
Earnings per share - basic and diluted (in dollars per share) | $ 2.05 | $ 6.63 | $ 9.78 | $ 12.20 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods and work-in-process | $ 281,351 | $ 295,997 |
Raw materials | 58,546 | 55,702 |
Stores, supplies, and other | 14,924 | 14,239 |
Inventories | $ 354,821 | $ 365,938 |
Intangibles (Net of Amortizat_3
Intangibles (Net of Amortization) and Goodwill (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net carrying amount of intangibles and goodwill | $ 130,903,000 | $ 131,880,000 |
Accumulated goodwill impairment | $ 0 | $ 0 |
Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 10 years | |
Minimum [Member] | Customer Bases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 4 years | |
Minimum [Member] | Formulas And Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 3 years | |
Maximum [Member] | Customer Bases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 20 years | |
Maximum [Member] | Formulas And Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated economic life, in years | 6 years |
Intangibles (Net of Amortizat_4
Intangibles (Net of Amortization) and Goodwill (Schedule Of Information Related To Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Accumulated Amortization | $ 18,683 | $ 16,947 |
Goodwill, Gross Carrying Amount | 123,746 | 122,987 |
Amortizing intangible assets and Goodwill, Gross Carrying Amount | 149,586 | 148,827 |
Formulas And Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 9,600 | 9,600 |
Amortizing intangible assets, Accumulated Amortization | 6,500 | 5,416 |
Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 2,000 | 2,000 |
Amortizing intangible assets, Accumulated Amortization | 700 | 600 |
Customer Bases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizing intangible assets, Gross Carrying Amount | 14,240 | 14,240 |
Amortizing intangible assets, Accumulated Amortization | $ 11,483 | $ 10,931 |
Intangibles (Net of Amortizat_5
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1,009 | $ 1,052 | $ 1,736 | $ 2,103 |
2020 | 1,171 | 1,171 | ||
2021 | 2,156 | 2,156 | ||
2022 | 1,423 | 1,423 | ||
2023 | 907 | 907 | ||
2024 | 390 | 390 | ||
2025 | $ 390 | $ 390 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)maximumNumberOfLeverage | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 690,292,000 | $ 642,941,000 |
4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 350,000,000 | |
Senior notes, interest rate | 4.10% | 4.10% |
Debt instruments maturity date | 2022 | 2022 |
Long-term debt | $ 348,555,000 | $ 348,263,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt Issuance Cost, Gross, Noncurrent | $ 2,500,000 | |
Term of credit facility, years | 5 years | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 900,000,000 | |
Line Of Credit Facility Potential Increase To Maximum Borrowing Capacity | 425,000,000 | |
Line of Credit Facility Financing Costs Carried Over | $ 1,200,000 | |
Revolving credit facility, maturity date | Mar. 5, 2025 | |
Average interest rate during the period | 1.50% | 3.00% |
Long-term debt | $ 91,737,000 | $ 44,678,000 |
Outstanding letters of credit | 3,000,000 | 3,000,000 |
Unused portion of revolving credit facility | 806,000,000 | $ 803,000,000 |
Payments of Financing Costs | $ 1,300,000 | |
Revolving Credit Facility Spread On NYFRB Rate | 0.50% | |
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
MaximumLeverageRatio | maximumNumberOfLeverage | 3.75 | |
Revolving Credit Facility [Member] | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |
Revolving Credit Facility [Member] | Multicurrency Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |
Revolving Credit Facility [Member] | Swingline Loans [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | |
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Alternate Base Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable Rate | 0.00% | |
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Alternate Base Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable Rate | 0.375% | |
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Adjusted Libo Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable Rate | 0.875% | |
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Adjusted Libo Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable Rate | 1.375% | |
3.78% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, interest rate | 3.78% | 3.78% |
Debt instruments maturity date | 2029 | 2029 |
Long-term debt | $ 250,000,000 | $ 250,000,000 |
Long-term Debt (Schedule Of Lon
Long-term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 690,292 | $ 642,941 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 91,737 | 44,678 |
4.10% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 348,555 | $ 348,263 |
Senior notes, interest rate | 4.10% | 4.10% |
Debt instruments maturity date | 2022 | 2022 |
3.78% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 250,000 | $ 250,000 |
Senior notes, interest rate | 3.78% | 3.78% |
Debt instruments maturity date | 2029 | 2029 |
Commitments and Contingencies (
Commitments and Contingencies (Environmental) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Site Contingency [Line Items] | ||
Accruals for environmental remediation, dismantling, and decontamination | $ 10 | $ 11 |
Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Accruals for environmental remediation, dismantling, and decontamination | 7 | 8 |
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 | 4 | 4 |
Houston, Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Accrual for remediation of groundwater and soil | $ 3 | $ 3 |
Minimum [Member] | Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member] | ||
Site Contingency [Line Items] | ||
Discount rate | 3.00% | 3.00% |
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 (L_3
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Schedule of Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Pension Plans and Other Postretirement Benefits, Beginning Balance | $ (69,795) | $ (86,555) | |||
Foreign Currency Translation Adjustments, Beginning Balance | (92,953) | (94,761) | |||
Accumulated Other Comprehensive (Loss) Income, Beginning Balance | (162,748) | (181,316) | |||
Other comprehensive income (loss) before reclassifications, Pension Plans and Other Postretirement Benefits | 0 | 0 | |||
Other comprehensive income (loss) before reclassifications, Foreign Currency Translation Adjustments | (15,369) | 580 | |||
Other comprehensive income (loss) before reclassifications, Accumulated Other Comprehensive (Loss) Income | (15,369) | 580 | |||
Amounts reclassified from accumulated other comprehensive loss, Pension Plans and Other Postretirement Benefits | [1] | 1,465 | 473 | ||
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 | 1,465 | 473 | |||
Total pension plans and other postretirement benefits | $ 729 | $ 233 | 1,465 | 473 | |
Other comprehensive income (loss), Foreign Currency Translation Adjustments | (1,038) | (4,366) | (15,369) | 580 | |
Other comprehensive income (loss) | (309) | (4,133) | (13,904) | 1,053 | |
Pension Plans and Other Postretirement Benefits, Ending Balance | (68,330) | (86,082) | (68,330) | (86,082) | |
Foreign Currency Translation Adjustments, Ending Balance | (108,322) | (94,181) | (108,322) | (94,181) | |
Accumulated Other Comprehensive (Loss) Income, Ending Balance | $ (176,652) | $ (180,263) | $ (176,652) | $ (180,263) | |
[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 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 102,064 | $ 144,397 |
4.10% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, interest rate | 4.10% | 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 | $ 102,000 | $ 144,000 |
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 | $ 102,000 | $ 144,000 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 690,292 | $ 642,941 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt (excluding capital lease obligations), Fair Value | $ 748,286 | $ 677,253 |