COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-32240 | ||
Entity Registrant Name | Neenah Inc | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-1308307 | ||
Entity Address, Address Line One | 3460 Preston Ridge Road | ||
Entity Address, City or Town | Alpharetta | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30005 | ||
City Area Code | 678 | ||
Local Phone Number | 566-6500 | ||
Title of 12(b) Security | Common Stock — $0.01 Par Value | ||
Trading Symbol | NP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 955,454,000 | ||
Entity Common Stock, Shares Outstanding | 16,848,000 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain information contained in the definitive proxy statement for the Company's Annual Meeting of Stockholders to be held on May 21, 2020 is incorporated by reference into Part III hereof. | ||
Entity Central Index Key | 0001296435 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 938.5 | $ 1,034.9 | $ 979.9 |
Cost of products sold | 755.1 | 851.5 | 779.7 |
Gross profit | 183.4 | 183.4 | 200.2 |
Selling, general and administrative expenses | 98.6 | 95.9 | 95.3 |
Restructuring, integration and other costs | 6.2 | 2.1 | 1.3 |
Pension and SERP-related adjustments (Note 8) | (1.4) | 1.8 | 0.6 |
Impairment loss (Note 13) | 0 | 31.1 | 0 |
Acquisition-related adjustments (Note 4) | 0 | (3.9) | 0 |
Insurance settlement | 0 | (0.4) | (3.2) |
Other expense, net | 1.7 | 2.7 | 1.9 |
Operating income | 78.3 | 54.1 | 104.3 |
Interest expense | 11.8 | 13 | 12.7 |
Interest income | 0 | 0 | (0.1) |
Income from continuing operations before income taxes | 66.5 | 41.1 | 91.7 |
Provision for income taxes | 11.1 | 3.9 | 11.4 |
Income from continuing operations | 55.4 | 37.2 | 80.3 |
Loss from discontinued operations, net of taxes (Note 2) | 0 | (0.8) | 0 |
Net income | $ 55.4 | $ 36.4 | $ 80.3 |
Basic | |||
Continuing operations (in dollars per share) | $ 3.27 | $ 2.20 | $ 4.74 |
Discontinued operations (in dollars per share) | 0 | (0.05) | 0 |
Basic (in dollars per share) | 3.27 | 2.15 | 4.74 |
Diluted | |||
Continuing operations (in dollars per share) | 3.26 | 2.17 | 4.68 |
Discontinued operations (in dollars per share) | 0 | (0.05) | 0 |
Diluted (in dollars per share) | $ 3.26 | $ 2.12 | $ 4.68 |
Weighted Average Common Shares Outstanding (in thousands) | |||
Basic (in shares) | 16,848 | 16,850 | 16,805 |
Diluted (in shares) | 16,906 | 16,968 | 17,052 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 55.4 | $ 36.4 | $ 80.3 |
Reclassification of amounts recognized in the consolidated statement of operations: | |||
Amortization of adjustments to pension and other postretirement benefit liabilities | 6 | 6 | 5.9 |
Pension plan settlement/curtailment losses | 1.3 | 0.8 | 0.6 |
Amounts recognized in the consolidated statement of operations | 7.3 | 6.8 | 6.5 |
Unrealized foreign currency translation (loss) gain | (3.5) | (7.9) | 20 |
Net loss from pension and other postretirement benefit plans | (13.7) | (11.2) | (20.3) |
Deferred loss on available-for-sale securities | 0 | 0 | (0.4) |
(Loss) income from other comprehensive income items before income taxes | (9.9) | (12.3) | 5.8 |
Benefit for income taxes | (1.7) | (1) | (3) |
Other comprehensive (loss) income | (8.2) | (11.3) | 8.8 |
Comprehensive income | $ 47.2 | $ 25.1 | $ 89.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 9 | $ 9.9 |
Accounts receivable, net | 102.6 | 114.8 |
Inventories | 122.8 | 131.6 |
Prepaid and other current assets | 18.3 | 21.6 |
Total Current Assets | 252.7 | 277.9 |
Property, Plant and Equipment, net | 380.6 | 396.2 |
Lease Right-of-Use Assets | 13.9 | |
Deferred Income Taxes | 13.4 | 16.4 |
Goodwill (Note 5) | 83.1 | 84 |
Intangible Assets, net (Note 5) | 66.7 | 70.7 |
Other Assets | 17.4 | 16 |
TOTAL ASSETS | 827.8 | 861.2 |
Current Liabilities | ||
Debt payable within one year | 2.6 | 2.3 |
Lease liabilities payable within one year | 1.9 | |
Accounts payable | 48.9 | 63.3 |
Accrued expenses | 47 | 55.2 |
Total Current Liabilities | 100.4 | 120.8 |
Long-Term Debt | 198.2 | 236.8 |
Noncurrent Lease Liabilities | 13 | |
Noncurrent Employee Benefits | 93.1 | 92.9 |
Deferred Income Taxes | 12.9 | 14.4 |
Other Noncurrent Obligations | 3.9 | 6.1 |
TOTAL LIABILITIES | 421.5 | 471 |
Commitments and Contingencies (Note 12) | ||
Stockholders' Equity | ||
Common stock, par value $0.01, authorized: 100,000,000 shares; issued and outstanding: 16,843,000 shares and 16,859,000 shares | 0.2 | 0.2 |
Treasury stock, at cost: 1,835,000 shares and 1,738,000 shares | (82.8) | (76.6) |
Additional paid-in capital | 334.1 | 328.5 |
Retained earnings | 268.1 | 243.2 |
Accumulated other comprehensive loss | (113.3) | (105.1) |
Total Stockholders' Equity | 406.3 | 390.2 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 827.8 | $ 861.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Par value of shares of common stock (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued shares (in shares) | 16,843,000 | 16,859,000 |
Common stock, outstanding shares (in shares) | 16,843,000 | 16,859,000 |
Treasury stock, shares (in shares) | 1,835,000 | 1,738,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2016 | 18,245 | |||||
Beginning Balance at Dec. 31, 2016 | $ 0.2 | $ (56.5) | $ 317 | $ 169.6 | $ (92) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 80.3 | 80.3 | ||||
Other comprehensive (loss)/income, after income tax benefit | 8.8 | 8.8 | ||||
Reclassification of the stranded tax effects related to the Tax Act (Note 10) | 10.9 | (10.9) | ||||
Dividends declared | (25.1) | |||||
Shares purchased (Note 10) | (6.8) | |||||
Stock options exercised (in shares) | 140 | |||||
Stock options exercised | 0.4 | |||||
Restricted stock vesting (in shares) | 73 | |||||
Restricted stock vesting (Note 10) | (2.5) | |||||
Stock-based compensation | 6.4 | |||||
Other/Currency | 0.1 | |||||
Ending balance (in shares) at Dec. 31, 2017 | 18,458 | |||||
Ending Balance at Dec. 31, 2017 | $ 0.2 | (65.8) | 323.9 | 235.7 | (94.1) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 36.4 | 36.4 | ||||
Other comprehensive (loss)/income, after income tax benefit | (11.3) | (11.3) | ||||
Dividends declared | (27.8) | |||||
Shares purchased (Note 10) | (9.3) | |||||
Stock options exercised (in shares) | 67 | |||||
Stock options exercised | 0.7 | |||||
Restricted stock vesting (in shares) | 72 | |||||
Restricted stock vesting (Note 10) | (1.5) | |||||
Stock-based compensation | 4 | |||||
Other/Currency | (0.1) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 18,597 | |||||
Ending Balance at Dec. 31, 2018 | 390.2 | $ 0.2 | (76.6) | 328.5 | 243.2 | (105.1) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 55.4 | 55.4 | ||||
Other comprehensive (loss)/income, after income tax benefit | (8.2) | (8.2) | ||||
Dividends declared | (30.5) | |||||
Shares purchased (Note 10) | (4.9) | |||||
Stock options exercised (in shares) | 17 | |||||
Restricted stock vesting (in shares) | 64 | |||||
Restricted stock vesting (Note 10) | (1.3) | |||||
Stock-based compensation | 5.6 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 18,678 | |||||
Ending Balance at Dec. 31, 2019 | $ 406.3 | $ 0.2 | $ (82.8) | $ 334.1 | $ 268.1 | $ (113.3) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 55.4 | $ 36.4 | $ 80.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 38.9 | 36.1 | 33.3 |
Impairment loss (Note 13) | 0 | 31.1 | 0 |
Stock-based compensation | 5.6 | 4 | 6.4 |
Deferred income tax provision | 3.4 | (1.9) | (0.2) |
Pension curtailment (gain)/settlement charge, net of plan payments (Note 8) | (1.4) | 1.8 | 0.6 |
Loss on asset dispositions | 0.1 | 0.3 | 0.2 |
Non-cash effects of changes in liabilities for uncertain income tax positions | (0.7) | 0.1 | (0.1) |
Net cash used in changes in operating working capital, net of effect of acquisitions (Note 15) | (0.6) | (1) | (11.8) |
Pension and other post-employment benefits | (3.7) | (12.3) | (8) |
Other | 0.6 | (1.9) | (0.7) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 97.6 | 92.7 | 100 |
INVESTING ACTIVITIES | |||
Capital expenditures | (21.4) | (38.1) | (42.7) |
Business acquisition (Note 4) | 0 | 0 | (43.1) |
Asset acquisition | 0 | 0 | (8) |
Proceeds from sale of property, plant and equipment (Note 13) | 0 | 5 | 0 |
Sales (purchases) of marketable securities | (0.4) | (0.6) | |
Sales (purchases) of marketable securities | 0.1 | ||
Other | (1.5) | (1.3) | (0.6) |
NET CASH USED IN INVESTING ACTIVITIES | (23.3) | (34.3) | (95) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt (Note 7) | 163.5 | 272.8 | 323.7 |
Debt issuance costs (Note 7) | (0.4) | (1.8) | (0.3) |
Repayments of long-term debt (Note 7) | (201.6) | (285.6) | (293.3) |
Cash dividends paid | (30.5) | (27.8) | (25.1) |
Shares purchased (Note 10) | (6.2) | (10.8) | (9.3) |
Proceeds from exercise of stock options | 0 | 0.6 | 0.4 |
Other | 0 | 0 | 0.1 |
NET CASH USED IN FINANCING ACTIVITIES | (75.2) | (52.6) | (3.8) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | (0.4) | 0.2 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (0.9) | 5.4 | 1.4 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 9.9 | 4.5 | 3.1 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 9 | $ 9.9 | $ 4.5 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Background Neenah, Inc. ("Neenah" or the "Company"), is a Delaware corporation incorporated in April 2004. The Company has two primary operations: its technical products business and its fine paper and packaging business. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media, tape and abrasives backings products, digital image transfer, durable label, and other specialty substrate products. The fine paper and packaging business is a supplier of branded premium printing, packaging and other high-end specialty papers primarily in North America. The Company's premium writing, text and cover papers, and specialty papers are used in commercial printing and imaging applications for corporate identity packages, invitations, personal stationery and high-end advertising, as well as premium labels and luxury packaging. Basis of Presentation The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Significant management judgment is required in determining the accounting for, among other things, reserves for uncertain tax positions, pension and postretirement benefit obligations, retained insurable risks, reserves for sales discounts and allowances, purchase price allocations, useful lives for depreciation and amortization, asset retirement obligations ("AROs"), future cash flows associated with impairment testing for tangible and intangible long-lived assets, goodwill, income taxes, contingencies, inventory obsolescence and market reserves and the valuation of stock-based compensation. Revenue Recognition The Company recognizes sales revenue at a point in time following the transfer of control of the product to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contractual arrangements. Sales are reported net of allowable discounts and estimated returns. Reserves for cash discounts, trade allowances and sales returns are estimated using historical experience. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, the Company records customer payments of shipping and handling costs as a component of net sales and classifies such costs as a component of cost of sales. The Company excludes tax amounts assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers from our measurement of transaction prices. Accordingly, such tax amounts are not included as a component of net sales or cost of sales. The Company considers each transaction/shipment as a separate performance obligation. Neenah recognizes revenue when the title transfers to the customer. As such, the remaining performance obligations at period end are not considered significant. Sales terms in the technical products business vary depending on the type of product sold and customer category. In general, sales are collected in approximately 45 to 55 days . Extended credit terms of up to 120 days are offered to customers located in certain international markets. Fine paper and packaging sales terms range between 20 and 30 days with discounts of 0 to 2 percent for early customer payments, with discounts of one percent and 20 -day terms used most often. Extended credit terms are offered to customers located in certain international markets. Refer to Note 14, "Business Segment and Geographic Information", for further disaggregation of revenue. Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. As of December 31, 2019 and 2018 , $0.1 million and $0.1 million , respectively, of the Company's cash and cash equivalents is restricted to the payment of postretirement benefits for certain former Fox River executives. Inventories U.S. inventories are valued at the lower of cost, using the last-in, first-out ("LIFO") method for financial reporting purposes, or market. European inventories are valued at the lower of cost, using a weighted-average cost method, or net realizable value. Cost includes labor, materials and production overhead. Foreign Currency Balance sheet accounts of the Company's operations in Germany and the Netherlands, the United Kingdom (the "U.K."), and Canada are translated from Euros, British Pounds, and Canadian dollars, respectively, into U.S. dollars at period-end exchange rates, and income and expense accounts are translated at average exchange rates during the period. Translation gains or losses related to net assets located in Germany, the Netherlands, the U.K., and Canada are recorded as unrealized foreign currency translation adjustments within accumulated other comprehensive income (loss) ("AOCI") in stockholders' equity. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in Other expense, net in the consolidated statements of operations. Property and Depreciation Property, plant and equipment are stated at cost, less accumulated depreciation. Certain costs of software developed or obtained for internal use are capitalized. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and the gains or losses are recorded in Other (income) expense, net. For financial reporting purposes, depreciation is principally computed on the straight-line method over estimated useful asset lives. The weighted average remaining useful lives for buildings, land improvements and machinery and equipment are approximately 19 years , 19 years and 10 years , respectively. The units-of-production method of depreciation is used for the U.S. transportation filtration production assets with a gross book value of $69.3 million , which reflects the nature of the assets' utilization. For income tax purposes, accelerated methods of depreciation are used. The costs of major rebuilds and replacements of plant and equipment are capitalized, and the cost of maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is expensed as incurred. Start-up costs for new or expanded facilities, including costs related to trial production, are expensed as incurred. The Company accounts for AROs in accordance with Accounting Standards Codification ("ASC") Topic 410, Asset Retirements and Environmental Obligations , which requires companies to make estimates regarding future events in order to record a liability for AROs in the period in which a legal obligation is created. Such liabilities are recorded at fair value, with an offsetting increase to the carrying value of the related long-lived asset. As of December 31, 2019 , the Company is unable to estimate its AROs for environmental liabilities at its manufacturing facilities. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). The amount of stock-based compensation cost recognized is based on the fair value of grants that are ultimately expected to vest and is recognized pro-rata over the requisite service period for the entire award. Research and Development Expense Research and development costs are charged to expense as incurred and are recorded in "Selling, general and administrative expenses" on the consolidated statement of operations. See Note 15, "Supplemental Data — Supplemental Statement of Operations Data." Fair Value Measurements The Company measures fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820") which establishes a framework for measuring fair value. ASC Topic 820 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Fair Value of Financial Instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The fair value of short and long-term debt is estimated using rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company's debt. 12/31/2019 12/31/2018 Carrying Fair Carrying Fair 2021 Senior Notes (5.25% fixed rate) $ 175.0 $ 174.3 $ 175.0 $ 170.5 Global Revolving Credit Facilities (variable rates) 21.6 21.6 57.9 57.9 Second German Loan Agreement (2.5% fixed rate) 3.5 3.6 4.8 5.1 Third German Loan Agreement (1.45% fixed rate) 3.7 3.7 4.9 4.9 Total debt $ 203.8 $ 203.2 $ 242.6 $ 238.4 _______________________ (a) Fair value for all debt instruments was estimated from Level 2 measurements. The Company's investments in marketable securities are accounted for as "available-for-sale securities" in accordance with ASC Topic 320, Investments — Debt and Equity Securities ("ASC Topic 320"). Pursuant to ASC Topic 320, marketable securities are reported at fair value on the consolidated balance sheet and holding gains and losses are reported in "Other Income (Expense), net" on the Company's consolidated statements of operations. At December 31, 2019 , the Company had $4.0 million in marketable securities classified as Other assets on the consolidated balance sheet. The cost of such marketable securities was $4.4 million . Fair value for the Company's marketable securities was estimated from Level 1 inputs. The Company's marketable securities are designated for the payment of benefits under its supplemental employee retirement plan ("SERP"). Fair Value of Pension Plan Assets With the exception of cash and cash equivalents which are considered Level 1, and the annuity contracts which are considered Level 3, pension plan assets are measured at Net Asset Value ("NAV") (or its equivalent) as an alternative to fair market value due to the absence of readily available market prices, and as such are not subject to the fair value hierarchy. Following is the fair value of each investment category: • Cash and cash equivalents ( $0.8 million and $1.7 million at December 31, 2019 and 2018 , respectively). • U.S and non-U.S. Equities ( $122.5 million and $107.8 million at December 31, 2019 and 2018 , respectively) — These proprietary collective funds have observable NAVs (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately or within a few days. • U.S and non-U.S. Fixed Income Securities ( $219.4 million and $192.7 million at December 31, 2019 and 2018 , respectively) — These proprietary collective funds have observable NAVs (based on the fair value of the underlying investments of the funds) that are provided to investors and provide for liquidity either immediately or within a few days. • Hedge Fund/Other ( $29.9 million and $27.9 million at December 31, 2019 and 2018 , respectively) — This fund is valued using NAVs calculated by the underlying investment managers and allow for quarterly or more frequent redemptions. In conjunction with the Coldenhove Acquisition, there were purchases of $46.8 million into Level 3 plan assets during the year ended December 31, 2017, as the defined benefit plan for Neenah Coldenhove is administered through an insurance contract. The following table summarizes the changes in Level 3 defined benefit pension plan assets (Neenah Coldenhove insurance contract) measured at fair value on a recurring basis for the year ended December 31, 2019 and 2018 : Return on plan assets Fair Value at January 1 Attributable to Assets Held at December 31 Attributable to Assets Sold Net Purchases/ (Settlements) Transfers into/ (out of) Level 3 Foreign currency effects Fair For the year ended December 31, 2017 $ — 0.2 — 46.9 — 1.3 $ 48.4 For the year ended December 31, 2018 $ 48.4 (0.9 ) — (0.3 ) — (2.1 ) $ 45.1 For the year ended December 31, 2019 $ 45.1 7.5 — (0.2 ) — (0.9 ) $ 51.5 Discontinued Operations During the three months ended September 30, 2018, the Company recorded an additional loss on sale of $0.8 million arising from the final adjustment to the transaction price on the sale of the Lahnstein Mill in 2015. Accounting Standards Changes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current lease accounting. The amendments in this ASU are effective January 1, 2019. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, to allow a company to elect an optional modified retrospective transition method that applies the new lease requirements through a cumulative-effect adjustment in the period of adoption. Effective January 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The most significant change was related to the recognition of $16 million of right-of-use assets and corresponding lease liabilities of $17 million on its consolidated balance sheet as of January 1, 2019. The adoption of this standard did not have a material impact related to existing leases and as a result, a cumulative-effect adjustment was not recorded. See Note 11, "Leases." In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715) . ASU 2017-07 requires entities to (1) disaggregate the current service-cost component from the other components of net benefit cost (the "other components") and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if such a subtotal is presented. In addition, only the service-cost component of net benefit cost is eligible for capitalization in inventories. The Company adopted this ASU as of January 1, 2018. As a result of the adoption, the Company reclassified $1.5 million and $1.2 million of net cost for the year ended December 31, 2017, of other components of net benefit cost from "Cost of products sold" and "Selling, general and administrative expenses" to "Other Expense - net" on the consolidated statements of operations. There was no other material impact on its consolidated financial statements due to the adoption. As of December 31, 2019 , no other amendments to the ASC had been issued and not adopted by the Company that will have or are reasonably likely to have a material effect on the its financial position, results of operations or cash flows. |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share ("EPS") The Company's restricted stock units ("RSUs") are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, basic EPS has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares outstanding. For the computation of basic EPS, weighted average RSUs outstanding are excluded from the calculation of weighted average shares outstanding. ASC Topic 260, Earnings per Share ("ASC Topic 260") requires companies with participating securities to calculate diluted earnings per share using the "two class" method. The "two class" method requires first calculating diluted earnings per share using a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities. Diluted earnings per share is then calculated using net income reduced by the amount of distributed and undistributed earnings allocated to participating securities calculated using the "Treasury Stock" method and a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities excluding participating securities. Companies are required to report the lower of the diluted earnings per share amounts under the two calculations subject to the anti-dilution provisions of ASC Topic 260. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted to include the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, stock appreciation rights ("SARs") and target awards of RSUs with performance conditions ("Performance Share Units" or "PSUs"), into shares of common stock as if those securities were exercised or converted. For the years ended December 31, 2019 , 2018 and 2017 , approximately 231,000 , 143,000 and 72,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company's common stock for the respective 12 -month periods during which the options were outstanding. The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): Earnings per basic common share Year Ended December 31, 2019 2018 2017 Income from continuing operations $ 55.4 $ 37.2 $ 80.3 Amounts attributable to participating securities (0.3 ) (0.2 ) (0.6 ) Income from continuing operations available to common stockholders 55.1 37.0 79.7 Loss from discontinued operations, net of income taxes — (0.8 ) — Amounts attributable to participating securities — — — Net income available to common stockholders $ 55.1 $ 36.2 $ 79.7 Weighted-average basic shares outstanding 16,848 16,850 16,805 Basic earnings (loss) per share Continuing operations $ 3.27 $ 2.20 $ 4.74 Discontinued operations — (0.05 ) — $ 3.27 $ 2.15 $ 4.74 Earnings per diluted common share Year Ended December 31, 2019 2018 2017 Income from continuing operations $ 55.4 $ 37.2 $ 80.3 Amounts attributable to participating securities (0.3 ) (0.4 ) (0.5 ) Income from continuing operations available to common stockholders 55.1 36.8 79.8 Loss from discontinued operations, net of income taxes — (0.8 ) — Amounts attributable to participating securities — — — Net income available to common stockholders $ 55.1 $ 36.0 $ 79.8 Weighted-average basic shares outstanding 16,848 16,850 16,805 Add: Assumed incremental shares under stock-based compensation plans 58 118 247 Weighted average diluted shares 16,906 16,968 17,052 Diluted earnings (loss) per share Continuing operations $ 3.26 $ 2.17 $ 4.68 Discontinued operations — (0.05 ) — $ 3.26 $ 2.12 $ 4.68 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On November 1, 2017, the Company purchased all of the outstanding equity of Neenah Coldenhove for net cash of approximately $43 million . Neenah Coldenhove is a specialty materials manufacturer based in the Netherlands, with a leading position in digital transfer media and other technical products. The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations ("ASC Topic 805"). The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of November 1, 2017. The Company did not recognize any in-process research and development assets as part of the acquisition. The following table summarizes the allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed as of December 31, 2017. December 31, 2017 Assets Acquired Cash and cash equivalents $ 4.9 Accounts receivable 4.7 Inventories (a) 12.7 Deferred income taxes 0.4 Prepaid and other current assets 0.2 Property, plant and equipment (a) 31.2 Non-amortizable intangible assets 1.2 Amortizable intangible assets 4.7 Acquired goodwill (a) 10.0 Other assets 0.1 Total assets acquired 70.1 Liabilities Assumed Accounts payable 4.1 Accrued expenses 5.4 Contingent liability (b) 2.3 Deferred income taxes (a) 3.5 Noncurrent employee benefits 4.9 Long-term debt 1.8 Other noncurrent obligations 0.1 Total liabilities assumed 22.1 Net assets acquired $ 48.0 _______________________ (a) The Company had up to 12 months from the closing of the acquisition to finalize its valuations. Management evaluated additional information and determined that the preliminary valuation of inventory at the acquisition date should have been determined using fair value assumptions that would have resulted in the fair value of inventory being lower than originally estimated primarily due to changes in the assumptions related to inventory margins of the acquired business. In addition, management evaluated additional information related to fixed assets and updated the preliminary valuation of fixed assets at the acquisition date. Accordingly, during the nine months ended September 30, 2018, adjustments were made to reduce the carrying value of inventories and fixed assets by $1.5 million , with a corresponding increase to the value of goodwill of $1.1 million , net of income taxes. (b) In conjunction with the acquisition, the Company assumed a contingent liability of $2.3 million related to the acquisition of direct customer relationships by Neenah Coldenhove, which amount was contingent on the growth of sales from these customer relationships in 2018 and 2019. During the year ended December 31, 2018, the Company reduced the estimated liability to $0.8 million and recognized a receivable of $2.4 million from the former shareholders of Neenah Coldenhove related to a claim under an escrow arrangement. These two items totaling $3.9 million were recognized as income during the year ended December 31, 2018, as they relate to the operating results subsequent to the acquisition. These amounts were settled during the year ended December 31, 2019. The Company estimated the fair value of the assets and liabilities acquired in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820"). The fair value of amortizable and non-amortizable intangible assets was estimated by applying a royalty rate to projected revenue, net of income tax impacts and adjusted for present value considerations. The Company estimated the fair value of acquired property, plant and equipment using a combination of cost and market approaches. In general, the fair value of other acquired assets and liabilities was estimated using the cost basis of Neenah Coldenhove. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets acquired was recorded as acquired goodwill. The factors contributing to the amount of goodwill recognized are based on several strategic and synergistic benefits that are expected to be realized from the acquisition of Neenah Coldenhove. These benefits include entry into profitable new markets for performance materials with new capabilities and recognized brands and synergies from combining the business with Neenah's existing infrastructure. None of the goodwill recognized as part of the Coldenhove Acquisition will be deductible for income tax purposes. All of the acquired goodwill was allocated to the Technical Products segment. For the year ended December 31, 2018, the Company incurred $0.5 million of integration costs. For the year ended December 31, 2017, the Company incurred $1.3 million of acquisition and restructuring costs. For the year ended December 31, 2017, the Company recorded net sales of $7.5 million and insignificant loss from operations before income taxes (excluding the acquisition related costs described above) for the acquired business. The following selected unaudited pro forma consolidated statements of operations data for the year ended December 31, 2017 was prepared as though the Coldenhove Acquisition had occurred on January 1, 2016. The information does not reflect future events that may occur after the acquisition or any operating efficiencies or inefficiencies that may result from the Coldenhove Acquisition. Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2017 Net sales $ 1,019.8 Operating income 108.9 Net income $ 83.0 Earnings Per Common Share Basic $ 4.90 Diluted $ 4.84 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed. The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired. The Company tested goodwill for impairment as of November 30, 2019 under ASC Topic 350, Intangibles — Goodwill and Other . The Company elected the option under ASC Topic 350, Intangibles — Goodwill and Other, to perform a qualitative assessment of the Company's reporting units to determine whether further impairment testing is necessary. In this qualitative assessment, the Company considered the following items for each of the reporting units: macroeconomic conditions, industry and market conditions, overall financial performance and other entity specific events. In addition, for each of these reporting units, the most recent fair value determination results in an amount that exceeds the carrying amount of the reporting units. Based on these assessments, the Company determined that the likelihood that a current fair value determination would be less than the current carrying amount of the reporting unit is not more likely than not. There was no impairment in the carrying value of goodwill for the years ended December 31, 2019 , 2018 and 2017 , with the exception of $0.1 million of goodwill impairment related to the sale of the Brattleboro mill in 2018. See Note 13, "Sale of Brattleboro mill and Impairment Loss." Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment . Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 years. Certain trade names are estimated to have indefinite useful lives and as such are not amortized. Intangible assets with indefinite lives are reviewed for impairment at least annually. There was no impairment in the carrying value of intangible assets with indefinite lives for the years ended December 31, 2019 , 2018 and 2017 . The following table presents the carrying value of goodwill by business segment and changes in the carrying value of goodwill. Technical Products Fine Paper and Other Gross Accumulated Gross Amount Accumulated Gross Accumulated Net Net Net Net Balance at December 31, 2017 $ 128.3 $ (49.6 ) $ 78.7 $ 6.2 — 6.2 $ 0.4 — 0.4 $ 85.3 Adjustment of goodwill acquired in the Coldenhove Acquisition (a) 1.1 — 1.1 — — — — — — 1.1 Impairment related to the Brattleboro mill and associated office and research facilities (b) — — — — — — — (0.1 ) (0.1 ) (0.1 ) Foreign currency translation (4.5 ) 2.2 (2.3 ) — — — — — — (2.3 ) Balance at December 31, 2018 124.9 (47.4 ) 77.5 6.2 — 6.2 0.4 (0.1 ) 0.3 84.0 Realignment of Other segment (c) 0.4 (0.1 ) 0.3 — — — (0.4 ) 0.1 (0.3 ) — Foreign currency translation (1.9 ) 1.0 (0.9 ) — — — — — — (0.9 ) Balance at December 31, 2019 $ 123.4 $ (46.5 ) $ 76.9 $ 6.2 $ — $ 6.2 $ — $ — $ — $ 83.1 _______________________ (a) As a result of finalizing the acquisition accounting for Neenah Coldenhove in 2018, an adjustment of $ 1.1 million , net of income taxes, was recorded as a reduction to inventory and fixed assets and increase to goodwill. (b) In conjunction with the sale of the Brattleboro mill, a goodwill impairment loss of $ 0.1 million was recognized in 2018. (c) In January 2019, the Company realigned the remaining products manufactured in the Other business segment to be managed as part of the Technical Products business segment. See Note 14, "Business Segment and Geographic Information." Other Intangible Assets As of December 31, 2019 , the Company had net identifiable intangible assets of $66.7 million . All such intangible assets were acquired in the acquisitions of Neenah Germany, Fox River, FiberMark, Neenah Coldenhove and the Crane technical materials business, and the acquisition of the Wausau and Southworth brands. The following table details amounts related to those assets. 12/31/2019 12/31/2018 Gross Accumulated Gross Accumulated Amortizable intangible assets Customer based intangibles $ 38.2 $ (20.4 ) $ 38.3 $ (18.2 ) Trade names and trademarks 5.1 (2.7 ) 5.1 (2.5 ) Acquired technology 16.9 (8.0 ) 16.9 (6.7 ) Total amortizable intangible assets 60.2 (31.1 ) 60.3 (27.4 ) Trade names 37.6 — 37.8 — Total $ 97.8 $ (31.1 ) $ 98.1 $ (27.4 ) The following table presents intangible assets acquired in conjunction with the Coldenhove Acquisition as of December 31, 2017: Intangibles Estimated Useful Intangible assets — definite lived Trade names and trademarks $ 0.5 10 Customer based intangibles 2.9 15 Acquired technology 1.3 4 Total 4.7 Non-amortizable trade names 1.2 Total intangible assets $ 5.9 As of December 31, 2019 , $43.1 million and $23.6 million of such intangible assets are reported within the Technical Products and Fine Paper and Packaging, respectively. See Note 14, "Business Segment and Geographic Information." Aggregate amortization expense of acquired intangible assets for the years ended December 31, 2019 , 2018 and 2017 was $3.9 million , $4.3 million and $3.7 million , respectively and was reported in Cost of products sold on the consolidated statement of operations. Estimated amortization expense for the years ended December 31, 2020 , 2021 , 2022 , 2023 and 2024 is $3.7 million , $3.5 million , $2.9 million , $2.7 million and $2.7 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes . Income tax expense represented 16.7 percent , 9.5 percent and 12.4 percent of income from continuing operations before income taxes for the years ended December 31, 2019 , 2018 and 2017 , respectively. On December 22, 2017, the U.S. government enacted comprehensive tax legislation in the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). The Tax Act significantly revised the U.S. corporate income tax by, among other things, reducing the statutory corporate tax rate from 35% to 21% effective January 1, 2018, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries, introducing new tax regimes and changing how foreign earnings are subject to U.S. tax. The Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. In conjunction with the tax law changes, the Securities and Exchange Commission ("SEC") in Staff Accounting Bulletin No. 118 ("SAB 118") provided for a measurement period of one year from the enactment date to finalize the accounting for effects of the Tax Act. As of December 31, 2017, the Company provisionally recorded an income tax benefit of $6.5 million related to the Tax Act. This amount was comprised of a $10.3 million tax benefit from the remeasurement of federal net deferred income tax liabilities resulting from the reduction in the U.S. statutory corporate tax rate to 21% from 35%, less $3.8 million of tax expense from the mandatory one-time tax on the previously untaxed accumulated earnings and profits ("E&P") of its foreign subsidiaries. Also, as of December 31, 2017, the Company early adopted ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income (Topic 740) and reclassified $10.9 million from AOCI to retained earnings to address the stranded tax effects resulting from the effect of lower tax rates in the Tax Act on items within AOCI. In June 2017, as part of the annual strategic plan review, the Company reassessed its intentions regarding the indefinite reinvestment of undistributed earnings of the German operations and asserted its intent to indefinitely reinvest them. As a result, effective in the second quarter of 2017, the Company did not provide deferred income taxes on 2017 unremitted earnings of the German operations. In addition, in that quarter the deferred income tax liability of $4.1 million which was recorded in 2016 on unremitted German earnings was eliminated with a reduction to 2017 income tax expense. As noted above, the Tax Act included a mandatory one-time tax on previously untaxed accumulated E&P of its foreign subsidiaries, and as a result, previously unremitted E&P from all foreign countries were subject to this U.S. tax and a liability of $3.8 million was recorded thereon as of December 31, 2017. During 2018, the Company completed its analysis of the Tax Act and interpreted additional guidance issued by the U.S. Treasury Department. In addition, legislative actions by the various U.S. states related to application of the Tax Act provisions on state tax returns was considered. The Company recorded additional adjustments throughout 2018 to reflect a measurement-period tax benefit of $0.9 million related to the effects of the statutory corporate tax rate reduction and a measurement-period tax expense of $0.8 million from U.S. federal and state taxes on accumulated E&P of its foreign subsidiaries. As of December 31, 2018, a cumulative net tax benefit of $6.6 million related to the Tax Act was reflected, comprised of a $11.2 million tax benefit from the remeasurement of federal net deferred income tax liabilities resulting from the reduction in the U.S. statutory corporate tax rate, less $4.6 million of tax expense from the mandatory one-time U.S. federal tax on certain previously untaxed accumulated E&P of its foreign subsidiaries and related state income tax impacts. As of December 31, 2018, the measurement period for purposes of SAB 118 ended and the Company completed the accounting for all of the impacts of the Tax Act. As of December 31, 2017, the Company was not yet able to reasonably estimate the effects for the Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Act, therefore no provisional effects were recorded. Also, at that time, the Company had not made a policy decision regarding whether to record deferred income taxes on GILTI or use the period cost method. During the three months ended March 31, 2018, the Company elected an accounting policy to record GILTI tax expense as a period cost, if and when incurred each year. Also, beginning in that quarter, the Company was able to reasonably estimate the annual effects of GILTI and reflects this effect in its annual effective tax rate. The following table presents the principal reasons for the difference between the Company's effective income tax rate and the U.S. federal statutory income tax rate: Year Ended December 31, 2019 2019 2018 2018 2017 2017 U.S. federal statutory income tax rate 21.0 % $ 14.0 21.0 % $ 8.6 35.0 % $ 32.1 U.S. state income taxes, net of federal income tax benefit 1.4 % 0.9 (1.0 )% (0.4 ) 1.9 % 1.7 Foreign tax rate differences (a) 3.6 % 2.4 6.8 % 2.8 (3.4 )% (3.1 ) Tax on foreign dividends (b) 0.9 % 0.6 3.6 % 1.5 (0.3 )% (0.3 ) Foreign financing structure (c) (3.0 )% (2.0 ) (5.1 )% (2.1 ) (2.2 )% (2.0 ) Change in statutory tax rates (d) — % — (3.9 )% (1.6 ) (10.6 )% (9.7 ) Research and development and other tax credits (6.2 )% (4.1 ) (10.5 )% (4.3 ) (3.3 )% (3.0 ) Excess tax benefits from stock compensation (0.2 )% (0.1 ) (2.9 )% (1.2 ) (4.9 )% (4.5 ) Uncertain income tax positions (1.9 )% (1.3 ) 2.0 % 0.8 0.8 % 0.7 Other differences, net 1.1 % 0.7 (0.5 )% (0.2 ) (0.6 )% (0.5 ) Effective income tax rate 16.7 % $ 11.1 9.5 % $ 3.9 12.4 % $ 11.4 _______________________ (a) Represents the impact on the Company's effective tax rate due the mix of earnings among taxing jurisdictions with differing statutory rates. In 2019 and 2018, the U.S. federal tax rate is lower than the tax rate in Germany and the Netherlands. (b) For 2017, the amount reflects the net benefit of the indefinite reinvestment assertion of $4.1 million , less the $3.8 million mandatory one-time tax on the accumulated E&P of foreign subsidiaries from the Tax Act. For 2018, the amount reflects a measurement-period adjustment of $0.8 million to the mandatory one-time tax on the accumulated E&P of foreign subsidiaries, and in 2019 and 2018 includes federal GILTI impacts and state taxation of foreign E&P. (c) Represents the impact on the Company's effective tax rate of the Company's financing strategies. (d) Represents the net benefit from remeasurement of the net deferred income tax liabilities from tax rate changes. For 2017, the amount reflects a tax benefit of $10.3 million from the Tax Act, less $0.6 million of tax expense from a state tax rate change in Germany. For 2018, the amount reflects an additional measurement-period tax benefit adjustment of $0.9 million from the Tax Act, plus $0.7 million of tax benefit from a federal tax rate change in the Netherlands. The Company's effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in taxing jurisdictions with differing statutory rates, the impact of research and development tax credits ("R&D Credits"), changes in tax laws and changes in corporate structure as a result of business acquisitions and dispositions. In addition to the impact of the reduction in the U.S. federal statutory tax rate from 35% to 21%, the 2018 effective income tax rate was significantly reduced by the effects of the $31.1 million impairment loss of the Brattleboro mill and associated research and office facilities (see Note 13), as similar sized reconciling items had a larger percentage impact on lower pre-tax book income. The following table presents the U.S. and foreign components of income from continuing operations before income taxes: Year Ended December 31, 2019 2018 2017 Income (loss) from continuing operations before income taxes: U.S. $ 30.1 $ (1.7 ) $ 53.6 Foreign 36.4 42.8 38.1 Total $ 66.5 $ 41.1 $ 91.7 The following table presents the components of the provision (benefit) for income taxes: Year Ended December 31, 2019 2018 2017 Provision (benefit) for income taxes: Current: Federal $ 0.3 $ (3.0 ) $ 4.7 State (0.2 ) 0.1 0.5 Foreign 7.6 8.7 6.4 Total current income tax provision 7.7 5.8 11.6 Deferred: Federal 3.0 (0.6 ) (1.8 ) State 0.8 (0.2 ) (0.1 ) Foreign (0.4 ) (1.1 ) 1.7 Total deferred income tax provision 3.4 (1.9 ) (0.2 ) Total provision for income taxes $ 11.1 $ 3.9 $ 11.4 The current federal and state tax provisions were reduced in 2018 as a result of incremental pension contributions which could be applied to the 2017 tax year at the 35% federal rate and from refund of half of the Alternative Minimum Tax credits. The 2018 federal and state deferred income tax provision was reduced by the effects of the book impairment loss of the Brattleboro mill in excess of the write-off of its tax basis. In 2017, the federal deferred income tax provision was reduced by a net $8.1 million as a result of the Tax Act and the German tax rate increase. This amount included $10.3 million of tax rate reduction from the Tax Act, less $0.6 million from the German tax rate increase, less $1.6 million of impact of the mandatory one-time tax on the accumulated earnings of foreign subsidiaries from the Tax Act. The 2017 federal current tax provision was increased by $2.2 million due to the mandatory one-time tax on foreign earnings. The Company has elected to treat its Canadian subsidiary as a branch for U.S. income tax purposes. Therefore, its pre-tax loss, arising primarily from employee benefit plan costs, is included in determining U.S. federal and state income taxes. The asset and liability approach is used to recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The components of deferred income tax assets and liabilities, net of reserves for uncertain tax positions and valuation allowances, are as follows: December 31, 2019 2018 Deferred income tax assets (liabilities) Research and development tax credits $ 21.5 $ 20.0 Employee benefits 15.9 16.5 Net operating losses and other tax credits 6.4 7.4 Lease liabilities 3.1 — Accrued liabilities 2.1 2.3 Interest limitation — 1.7 Inventories (0.6 ) 1.0 Lease right-of-use assets (2.8 ) — Intangibles (4.7 ) (4.2 ) Accelerated depreciation (28.0 ) (28.8 ) Other 0.5 0.5 Net deferred income tax assets $ 13.4 $ 16.4 Deferred income tax assets (liabilities) Accelerated depreciation $ (16.7 ) $ (16.6 ) Intangibles (3.0 ) (3.2 ) Inventories (0.9 ) (1.0 ) Lease right-of-use assets (0.7 ) — Net operating losses 0.2 0.2 Lease liabilities 0.7 — Employee benefits 7.5 6.3 Other — (0.1 ) Net deferred income tax liabilities $ (12.9 ) $ (14.4 ) The presentation above reflects net deferred income tax assets of U.S. federal and state jurisdictions and the net deferred income tax liabilities related to operations of Germany, the Netherlands and the U.K. As of December 31, 2019 , the Company had $21.0 million of U.S. federal and $7.5 million of U.S. state R&D Credits which, if not used, will expire between 2031 and 2039 for the U.S. federal R&D Credits and between 2020 and 2034 for the state R&D Credits. As of December 31, 2019 , the Company had $44.1 million of state net operating losses (NOLs) which may be used to offset state taxable income. The NOLs are reflected in the consolidated financial statements as a deferred income tax asset of $2.7 million . If not used, substantially all of the NOLs will expire in various amounts between 2020 and 2039 . The Company had pre-acquisition and recognized built-in loss carryovers of $7.6 million , reflected as a deferred income tax asset of $1.6 million . The Company also had $0.7 million of federal Alternative Minimum Tax Credit carryovers, which under the Tax Act are fully refundable by no later than 2021. On January 1, 2018, the Company implemented ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other Than Inventory . The standard requires the recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. For the Company, the tax effects related to a 2017 transfer of intellectual property were affected by this standard. The standard was applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of January 1, 2018. The Company recorded a $2.9 million deferred income tax asset in the U.S. and eliminated a $3.7 million prepaid tax asset in Germany, each with offsets to retained earnings. As of December 31, 2019 and 2018, the Company had $48.8 million and $58.4 million , respectively, of undistributed earnings (net of foreign taxes) of foreign subsidiaries. Except for immaterial foreign currency exchange considerations, the Company will be able to repatriate these foreign earnings without U.S. federal taxation due to previously taxed income under the GILTI provisions. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and foreign jurisdictions. The Company is no longer subject to U.S. federal examination for years before 2016, to state and local examinations for years before 2015 and to non-U.S. income tax examinations for years before 2013. The following is a tabular reconciliation of the total amounts of uncertain tax positions as of and for the years ended December 31, 2019 , 2018 and 2017 : For the Years Ended 2019 2018 2017 Balance at January 1, $ 10.1 $ 10.0 $ 10.3 Increases in prior period tax positions 0.7 0.1 0.4 Decreases in prior period tax positions (1.2 ) — (1.0 ) Increases in current period tax positions 0.6 0.8 0.7 Decreases due to lapse of statutes of limitations (1.5 ) (0.6 ) (1.0 ) Increases due to change in tax rates — 0.1 0.4 Decreases due to settlements with tax authorities (0.9 ) (0.2 ) — Increases (decreases) from foreign exchange rate changes — (0.1 ) 0.2 Balance at December 31, $ 7.8 $ 10.1 $ 10.0 The $7.8 million of reserves for uncertain tax positions as of December 31, 2019 were reflected on the consolidated balance sheets as follows: $7.3 million netted against deferred income tax assets and $0.5 million in other noncurrent obligations. The $10.1 million of reserves for uncertain tax positions as of December 31, 2018 were reflected on the consolidated balance sheets as follows: $7.9 million netted against deferred income tax assets, $2.2 million in other noncurrent obligations. The $10.0 million of reserves for uncertain tax positions as of December 31, 2017 were reflected on the consolidated balances as follows: $2.3 million netted against deferred income tax assets, $5.3 million netted against (added to) deferred income tax liabilities and $2.4 million in other noncurrent obligations. If recognized, $7.8 million of the benefit for uncertain tax positions at December 31, 2019 would favorably affect the Company's effective tax rate in future periods. The Company files income tax returns and is subject to examination by various taxing jurisdictions. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company does not expect that facts and circumstances such as the expiration of statutes of limitations or the settlement of audits in the next 12 months will result in liabilities for uncertain income tax positions that are materially different than the amounts that were accrued as of December 31, 2019 . The Company recognizes accrued interest and penalties related to uncertain income tax positions in the Provision for income taxes on the consolidated statements of operations. As of December 31, 2019 and 2018 , the Company had less than $0.1 million and $0.1 million , respectively, accrued for interest and penalties related to uncertain income tax positions. As of December 31, 2019 and 2018, the Company had $5.2 million and $2.2 million of foreign tax credits, all of which the Company believes will expire unutilized. Therefore, as of December 31, 2019 and 2018, the Company recorded a valuation allowance of equal amounts against this deferred income tax asset. As of December 31, 2019 and 2018, the Company also had a valuation allowance of $0.5 million and $0.5 million , respectively, against its state tax credits and NOLs. In determining the need for a valuation allowance, the Company considers many factors, including specific taxing jurisdictions, sources of taxable income, income tax strategies and forecasted earnings for the entities in each jurisdiction. A valuation allowance is recognized if, based on the weight of available evidence, the Company concludes that it is more likely than not that some portion or all of the deferred income tax asset will not be realized. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consisted of the following: December 31, 2019 2018 2021 Senior Notes (5.25% fixed rate) due May 2021 $ 175.0 $ 175.0 Global Revolving Credit Facilities (variable rates) due December 2023 21.6 57.9 Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 3.5 4.8 Third German Loan Agreement (1.45% fixed rate) due in quarterly installments ending September 2022 3.7 4.9 Deferred financing costs (3.0 ) (3.5 ) Total Debt 200.8 239.1 Less: Debt payable within one year 2.6 2.3 Long-term debt $ 198.2 $ 236.8 Unsecured 2021 Senior Notes In May 2013, the Company completed an underwritten offering of eight -year senior unsecured notes (the "2021 Senior Notes") at a face amount of $175 million . The 2021 Senior Notes bear interest at a rate of 5.25% , payable in arrears on May 15 and November 15 of each year, commencing on November 15, 2013, and mature on May 15, 2021. Proceeds from this offering were used to redeem the remaining $70 million outstanding principal amount of ten -year 7.375% senior unsecured notes, originally issued on November 30, 2004, to repay approximately $56 million in outstanding revolving credit agreement borrowings and for general corporate purposes. The 2021 Senior Notes are fully and unconditionally guaranteed by substantially all of the Company's domestic subsidiaries (the "Guarantors"). The 2021 Senior Notes were sold in a private placement transaction, have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold absent registration or an applicable exemption from registration requirements. The 2021 Senior Notes rank equally in right of payment with all the Company's existing and future senior unsecured indebtedness. The guarantees of the 2021 Senior Notes are senior unsecured obligations of the Guarantors and rank equally in right of payment with all existing and future senior unsecured indebtedness of the Guarantors. The 2021 Senior Notes and the guarantees of the 2021 Senior Notes are effectively subordinated to the Company's and the Guarantors' existing and future secured indebtedness (to the extent of the value of the collateral) and are structurally subordinated to all indebtedness and other obligations of the Company's subsidiaries that do not guarantee the 2021 Senior Notes, including the trade creditors of such non-guarantor subsidiaries. Terms, Covenants and Events of Default. The 2021 Senior Notes contain terms, covenants and events of default with which the Company must comply, which the Company believes are ordinary and standard for notes of this nature. Among other things, the 2021 Senior Notes contain covenants restricting the Company's ability to incur certain additional debt, make specified restricted payments, pay dividends, authorize or issue capital stock, enter into transactions with the Company's affiliates, consolidate or merge with or acquire another business, sell certain of the Company's assets or liquidate, dissolve or wind-up the Company. As of December 31, 2019 , the Company was in compliance with all terms of the indenture for the 2021 Senior Notes. Under the most restrictive terms of the 2021 Senior Notes, the Company is permitted to pay cash dividends of up to $25 million in a calendar year, but not permitted to repurchase shares of the Company's common stock. However, as long as the net leverage ratio (net debt/EBITDA) under the 2021 Senior Notes is below 2.5 x, the Company can pay dividends or repurchase shares without limitation. In the event the net leverage ratio exceeds 2.5 x, the Company may still pay dividends in excess of $25 million or repurchase shares by utilizing "restricted payment baskets" as defined in the indenture for the 2021 Senior Notes. As of December 31, 2019 , since the Company's leverage ratio was less than 2.5 x, none of these covenants were restrictive to the Company's ability to pay dividends on or repurchase shares of the Company's common stock. Amended and Restated Secured Revolving Credit Facility In December 2018, the Company amended and restated its existing credit facility by entering into the Fourth Amended and Restated Credit Agreement (the "Fourth Amended Credit Agreement") by and among the Company and certain of its domestic subsidiaries as the "Domestic Borrowers", Neenah Services GmbH & Co. KG and certain of its German subsidiaries as the "German Borrowers", certain other subsidiaries as the "German Guarantors", the financial institutions signatory to the Fourth Amended Credit Agreement as lenders (the "Lenders"), and JPMorgan Chase Bank, N.A., as agent for the Lenders (the "Administrative Agent"). The Fourth Amended Credit Agreement, among other things: (1) increased the maximum principal amount of the existing credit facility for the Domestic Borrowers to $150 million (the "U.S. Revolving Credit Facility"); (2) maintains the secured, multicurrency, revolving credit facility for the German Borrowers in the maximum principal amount of $75 million (the "German Revolving Credit Facility," and together with the U.S. Revolving Credit Facility, the "Global Revolving Credit Facilities"); (3) caused the Company and the other Domestic Borrowers to guarantee, among other things, the obligations of the German Borrowers arising under the German Revolving Credit Facility; (4) provides for the Global Revolving Credit Facilities to mature on December 10, 2023; and (5) modifies the accordion feature permitting one or more increases in the Global Revolving Credit Facilities in an aggregate principal amount not exceeding $125 million , such that the aggregate commitments under the Global Revolving Credit Facilities do not exceed $350 million . In addition, the Domestic Borrowers may request letters of credit under the U.S. Revolving Credit Facility in an aggregate face amount not to exceed $20 million outstanding at any time, and the German Borrowers may request letters of credit under the German Revolving Credit Facility in an aggregate face amount not to exceed $5 million outstanding at any time. Proceeds of borrowings under the Global Revolving Credit Facilities may be used to finance working capital needs, permitted acquisitions, permitted investments (including certain inter-company loans), certain dividends, distributions and other restricted payments, and for other general corporate purposes. The consolidated statements of cash flows present borrowings and repayments under the Global Revolving Credit Facilities and the predecessor revolving bank credit facility using a gross approach. This approach presents not only discrete borrowings for transactions such as a business acquisition, but also reflects all borrowings and repayments that occur as part of daily management of cash receipts and disbursements. For the years ended December 31, 2019 and 2018, all of the borrowings related to the daily cash management. For the year ended December 31, 2017 , $31 million was borrowed in conjunction with the Coldenhove Acquisition and the remaining $ 293 million included borrowings for daily cash management. The right of the Domestic Borrowers to borrow and obtain letters of credit under the U.S. Revolving Credit Facility is subject to, among other things, the borrowing base of the Domestic Borrowers on a consolidated basis (the "Domestic Borrowing Base"). The right of the German Borrowers to borrow and obtain letters of credit under the German Revolving Credit Facility is similarly subject to a borrowing base requirement (the "German Borrowing Base"). The German Borrowing Base is initially determined on a combined basis for all German Borrowers. Under certain circumstances (including the occurrence of an event of default resulting from an act or omission of any German Borrower or German Guarantor), the Administrative Agent may require the German Borrowing Base to be determined separately for each of the German Borrowers. At its option the Company may, from time to time, allocate a portion of the Domestic Borrowing Base to the German Borrowing Base (resulting in a corresponding reduction of the Domestic Borrowing Base); however, the principal amount of borrowings and the outstanding letter of credit exposure under the German Revolving Credit Facility may not at any time exceed the German Revolving Credit Facility commitment amount then in effect. The guarantees of the German Guarantors are limited solely to the German Revolving Credit Facility obligations. Under the terms of the Fourth Amended Credit Agreement and related loan documentation, neither the German Borrowers nor the German Guarantors (collectively, the "German Loan Parties") will be liable for any obligations relating to the U.S. Revolving Credit Facility. The Global Revolving Credit Facilities are secured by liens on all or substantially all of the assets of the Domestic Borrowers. The German Revolving Credit Facility is secured by liens on all or substantially all of the assets of the German Borrowers and certain assets of the German Guarantors. Any liens granted by the German Loan Parties secure only the German Revolving Credit Facility obligations. Terms, Covenants and Events of Default. In general, borrowings under the Global Revolving Credit Facilities will bear interest at LIBOR (which cannot be less than zero percent ) plus an applicable margin ranging from 1.25% to 1.75% , depending on the amount of availability under the Fourth Amended Credit Agreement. In addition, the Company may elect an alternate borrowing rate ("ABR") for borrowings under the Global Revolving Credit Facilities. ABR borrowings under the Global Revolving Credit Facilities will bear interest at the highest interest rate shown in the following table: Applicable Margin U.S. Revolving Credit Facility German Revolving Credit Facility Prime rate 0.00%-0.25% Not applicable Federal funds rate +0.50% 0.00%-0.25% Not applicable Monthly LIBOR (which cannot be less than zero percent) +1.00% 0.00%-0.25% Not applicable Overnight LIBOR (which cannot be less than zero percent) Not applicable 1.25%-1.75% The Company is also required to pay a monthly commitment fee on the unused amounts available under the Global Revolving Credit Facilities at a per annum rate of 0.25% . If specified excess availability (i.e., aggregate availability, plus any excess of the aggregate borrowing base over the aggregate commitments under the Global Revolving Credit Facilities as then in effect, subject to certain limitations) under the Global Revolving Credit Facilities is less than the greater of (i) $20 million and (ii) 10% of the aggregate commitments under the Global Revolving Credit Facilities as then in effect, the Company is required to comply with a fixed charge coverage ratio (as defined in the Fourth Amended Credit Agreement) of not less than 1.1 to 1.0 for the preceding four-quarter period, tested as of the end of each quarter. Such compliance, once required, would no longer be necessary once (x) specified excess availability under the Global Revolving Credit Facilities exceeds the greater of (i) 17.5% of the aggregate commitment for the Global Revolving Credit Facilities and (ii) $35 million for 60 consecutive days and (y) no default or event of default has occurred and is continuing during such 60 -day period. As of December 31, 2019 , specified excess availability under the Global Revolving Credit Facilities exceeded the minimum required amount, and the Company is not required to comply with such fixed charge coverage ratio. The Fourth Amended Credit Agreement contains affirmative, reporting and negative covenants, events of default and other terms which the Company believes are ordinary and standard for agreements of this nature, with which the Company and its subsidiaries must comply during the term of the agreement. Among other things, such covenants restrict the ability of the Company and its subsidiaries to incur certain debt, incur or create certain liens, make specified restricted payments, authorize or issue capital stock, enter into transactions with their affiliates, consolidate, merge with or acquire another business, sell certain of their assets, or dissolve or wind up. In addition, if the specified excess availability under the Global Revolving Credit Facilities is less than the greater of (i) $25 million and (ii) 12.5% of the aggregate commitments under the Global Revolving Credit Facilities as then in effect, the Company will be subject to increased reporting obligations and controls until such time as availability is more than the greater of (a) $35 million and (b) 17.5% of the aggregate commitments under the Global Revolving Credit Facilities as then in effect. Under the terms of the Fourth Amended and Restated Credit Agreement, we are permitted to pay cash dividends on, and repurchase shares of, our common stock without limitation, as long as our specified excess availability under the Fourth Amended and Restated Credit Agreement exceeds the greater of (i) $25 million and (ii) 12.5% of our aggregate commitments under the Global Revolving Credit Facilities (approximately $28 million as of December 31, 2019), on a pro forma basis after giving effect to such dividend or stock repurchase (as the case may be). If our specified excess availability, on a pro forma basis, is less than the applicable threshold, we are subject to certain restrictions on the amount of cash dividends we are permitted to declare and the amount of share repurchases we are permitted to execute. As of December 31, 2019 , the Company's availability exceeded the applicable threshold, so this restriction did not apply. The Fourth Amended Credit Agreement also contains events of default customary for financings of this type, including failure to pay principal or interest, materially false representations or warranties, failure to observe covenants and certain other terms of the Fourth Amended Credit Agreement, cross-defaults to certain other indebtedness, bankruptcy, insolvency, various ERISA and foreign pension violations, the incurrence of material judgments and changes in control. Availability under the Global Revolving Credit Facilities varies over time depending on the value of the Company's inventory, receivables and various capital assets. As of December 31, 2019 , the Company had $21.6 million of borrowings and $0.5 million in letters of credit outstanding under the Global Revolving Credit Facilities and $173.5 million of available credit (based on exchanges rates at December 31, 2019 ). As of December 31, 2019 and 2018 , the weighted-average interest rate on outstanding Revolver borrowings was 1.3 percent and 2.9 percent per annum, respectively. Other Debt In January 2013, Neenah Germany entered into a project financing agreement for the construction of a melt blown machine (the "Second German Loan Agreement"). The agreement provided €9.0 million of construction financing which is secured by the melt blown machine. The loan matures in September 2022 and principal is repaid in 32 equal quarterly installments beginning in December 2014. The interest rate on amounts outstanding is 2.45% and is payable quarterly. At December 31, 2019 , €3.1 million ( $3.5 million , based on exchange rates at December 31, 2019 ) was outstanding under the Second German Loan Agreement. In May 2018, Neenah Germany entered into a project financing agreement for the construction of a regenerative thermal oxidizer ("RTO") (the "Third German Loan Agreement"). The purposes of the project were to increase the capacity of the existing saturators and ensure compliance with new European air emission standards. The agreement provided €5.0 million of financing and is secured by the asset. The loan matures in September 2022 and principal is repaid in 13 equal quarterly installments beginning in June 2019. The interest rate on amounts outstanding is 1.45% and is payable quarterly. In the fourth quarter 2018, the Company received a subsidy from the German government of $0.9 million due to completion of the RTO project in the form of a principal reduction. At December 31, 2019 , €3.3 million ( $3.7 million , based on exchange rates at December 31, 2019 ) was outstanding under the Third German Loan Agreement. Principal Payments The following table presents the Company's required debt payments: 2020 2021 2022 2023 2024 Thereafter Total Debt payments $ 2.6 $ 177.8 $ 1.8 $ 21.6 $ — $ — $ 203.8 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Pension Plans Substantially all active employees of the Company's U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. The Company also has defined benefit plans and/or alternative retirement plans for substantially all its employees in Germany, the U.K, and the Netherlands. In addition, the Company maintains a SERP which is a non-qualified defined benefit plan. The Company provides benefits under the SERP to the extent necessary to fulfill the intent of its defined benefit retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined benefit plans. The Company's policy is to recognize settlement losses for deferred vested pension benefit payments regardless of whether the amount exceeded the sum of expected service cost and interest costs of the pension plan for the respective calendar year. During 2019, 2018, and 2017, the Company recorded a $0.1 million, $0.8 million, and a $0.6 million settlement losses in the SERP, for total payments of $0.5 million , $2.2 million , $1.3 million , respectively. The Company's funding policy for its U.S. qualified defined benefit plans and its U.K. defined benefit plan is to contribute assets in compliance with regulatory requirements to fund the projected benefit obligation. There is no legal or governmental obligation to fund Neenah Germany's benefit plans and as such the Neenah Germany defined benefit plans are currently unfunded. As of December 31, 2019 , Neenah Germany had investments of $2.0 million that were restricted to the payment of certain post-retirement employee benefits. As of December 31, 2019 , $1.4 million and $0.6 million of such investments are classified as Prepaid and other current assets and Other assets, respectively, on the consolidated balance sheet. The Neenah Coldenhove retirement benefit obligations are administered by a third-party insurance company, and funding for these benefits comes from premiums paid. Nonqualified plans providing pension benefits in excess of limitations imposed by taxing authorities are not funded; however, the Company holds $4.0 million of marketable securities that are designated for the payment of benefits under the SERP as of December 31, 2019 , classified as Other Assets on the consolidated balance sheet. During October 2019, the Company reached an agreement with the union members of the Christelijke Nationale Vakbond ("CNV") and the Federatie Nederlandse Vakvereniging ("FNV") that affected employees in the Netherlands. In accordance with the new agreements, effective December 31, 2019, the Neenah Coldenhove defined benefit pension plan is closed to new entrants, and the defined benefit pension plan was replaced by a new defined contribution plan. All new employees will participate in the new defined contribution plan, and current employees will have their benefit frozen at current levels under the defined benefit plan and will begin participation in the new defined contribution plan. The Company recognized a curtailment gain of $1.6 million in the fourth quarter of 2019 due to these changes. During November 2019, the Company ratified a new collective bargaining agreement with the USW that affected hourly employees at the Appleton Mill. In accordance with the new agreement, effective February 2020, the current defined benefit pension plan at this location will be closed to new entrants, and the defined benefit pension plan will be replaced by a new defined contribution plan. All new hourly employees will participate in the new defined contribution plan, and certain hourly employees ( 30 of 115 employees at this location) with less than 25 years of service will have their benefit frozen at current levels under the defined benefit plan and will begin participation in the new defined contribution plan. Hourly employees with over 25 years of service will continue to participate in the respective defined benefit plan. There were no curtailment or amendment charges recognized due to this change. During December 2018, the Company signed new collective bargaining agreements with the USW that affected hourly employees at the Munising Mill, Whiting Mill, Neenah Mill, and Neenah Finishing Center. In accordance with the new agreements, effective March 2019, the current defined benefit pension plans at these locations will be closed to new entrants, and the defined benefit pension plans will be replaced by a new defined contribution plan. All new hourly employees will participate in the new defined contribution plan, and certain hourly employees ( 375 of 690 employees at these locations) with less than 25 years of service will have their benefit frozen at current levels under the defined benefit plan and will begin participation in the new defined contribution plan. Hourly employees with over 25 years of service and certain other hourly employees will continue to participate in their respective defined benefit plans. There were no curtailment or amendment charges recognized due to these changes. The Company uses the fair value of pension plan assets to determine pension expense, rather than averaging gains and losses over a period of years. Investment gains or losses represent the difference between the expected return calculated using the fair value of the assets and the actual return based on the fair value of assets. The Company's pension obligations are measured annually as of December 31. Multi-Employer Plan Prior to July 1, 2018, the hourly employees of the Lowville, New York facility were covered by a multi-employer defined benefit plan. Effective on that date, the Company and representatives of the United Steelworkers Union (the "USW") of the Lowville mill initiated actions to withdraw from the Pace Industry Union-Management Pension Fund (“PIUMPF”). As a result, the Company recorded an estimated withdrawal liability of $1.0 million , which assumed payment of $0.1 million per year over 20 years , discounted at a credit adjusted risk-free rate of 5.7% . In October 2019, the Company received a billing from PIUMPF for the withdrawal liability, which confirmed the $1.0 million liability. In addition to the withdrawal liability, PIUMPF also demanded immediate payment of $1.3 million for the Company's pro-rata share of the fund's accumulated funding deficiency. The Company is challenging this demand and believes it to be unenforceable. As such, the Company has not recorded a liability for this amount as of December 31, 2019. For the year ended December 31, 2018, the Company's contributions to the plan were less than $0.1 million and less than 5% of total plan contributions. On July 1, 2018, when the Company withdrew, the plan was in the red zone. Among other factors, plans in the red zone are generally less than 65% funded. Other Postretirement Benefit Plans The Company maintains postretirement health care and life insurance benefit plans for active employees of the Company and former employees of the Canadian pulp operations. The Canadian plans are generally noncontributory for employees who were eligible to retire on or before December 31, 1992 and contributory for most employees who became eligible to retire on or after January 1, 1993. The Company does not provide a subsidized benefit to non-union U.S. employees hired after 2003 or collectively bargained employees after 2005. The Company's obligations for postretirement benefits other than pensions are measured annually as of December 31. The following table reconciles the benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans. Pension Benefits Postretirement Year Ended December 31, 2019 2018 2019 2018 Change in Benefit Obligation: Benefit obligation at beginning of year $ 430.7 $ 463.9 $ 42.4 $ 44.0 Service cost 5.0 6.7 1.2 1.1 Interest cost 16.2 15.8 1.5 1.4 Currency (1.2 ) (4.6 ) 0.1 (0.3 ) Actuarial (gain) loss 55.0 (29.3 ) (0.7 ) 1.1 Benefit payments from plans (21.1 ) (20.3 ) (4.8 ) (4.9 ) Plan curtailment (a) (2.8 ) — — — Settlement payments (0.5 ) (2.2 ) — — Other 1.1 0.7 — — Benefit obligation at end of year $ 482.4 $ 430.7 $ 39.7 $ 42.4 Change in Plan Assets: Fair value of plan assets at beginning of year $ 375.2 $ 400.4 $ — $ — Actual gain (loss) on plan assets 62.1 (18.9 ) — — Employer contributions 8.3 18.2 — — Currency (0.5 ) (2.7 ) — — Benefit payments (21.1 ) (20.3 ) — — Settlement payments (0.5 ) (2.2 ) — — Other 0.6 0.7 — — Fair value of plan assets at end of year $ 424.1 $ 375.2 $ — $ — Reconciliation of Funded Status Fair value of plan assets $ 424.1 $ 375.2 $ — $ — Projected benefit obligation 482.4 430.7 39.7 42.4 Net liability recognized in statement of financial position $ (58.3 ) $ (55.5 ) $ (39.7 ) $ (42.4 ) Amounts recognized in statement of financial position consist of: Current liabilities $ (1.2 ) $ (1.7 ) $ (5.6 ) $ (5.2 ) Noncurrent liabilities (57.1 ) (53.8 ) (34.1 ) (37.2 ) Net amount recognized $ (58.3 ) $ (55.5 ) $ (39.7 ) $ (42.4 ) _______________________ (a) For the year ended December 31, 2019, the Company recognized a curtailment gain of $1.6 million related to the Neenah Coldenhove pension plan. See discussion earlier in this Note. Amounts recognized in accumulated other comprehensive income (loss) consist of: Pension Postretirement December 31, 2019 2018 2019 2018 Accumulated actuarial loss $ 117.8 $ 110.1 $ 7.2 $ 8.7 Prior service cost 0.9 0.7 — — Total recognized in AOCI $ 118.7 $ 110.8 $ 7.2 $ 8.7 Summary disaggregated information about the pension plans follows: December 31, Assets Exceed ABO ABO Exceed Assets Total 2019 2018 2019 2018 2019 2018 Projected benefit obligation $ — $ 130.3 $ 482.4 $ 300.4 $ 482.4 $ 430.7 Accumulated benefit obligation — 125.4 478.3 298.5 478.3 423.9 Fair value of plan assets — 128.8 424.1 246.4 424.1 375.2 Components of Net Periodic Benefit Cost Pension Benefits Postretirement Benefits Year Ended December 31, 2019 2018 2017 2019 2018 2017 Service cost $ 5.0 $ 6.7 $ 5.5 $ 1.2 $ 1.1 $ 1.2 Interest cost 16.2 15.8 15.0 1.5 1.4 1.4 Expected return on plan assets (a) (21.1 ) (21.0 ) (19.9 ) — — — Recognized net actuarial loss 4.9 5.2 5.6 0.9 0.8 0.3 Amortization of prior service cost (credit) 0.2 0.2 0.2 — (0.2 ) (0.2 ) Curtailment gain (1.6 ) — — — — — Amount of settlement loss recognized 0.1 0.8 0.6 — — — Net periodic benefit cost $ 3.7 $ 7.7 $ 7.0 $ 3.6 $ 3.1 $ 2.7 _______________________ (a) The expected return on plan assets, excluding the Neenah Coldenhove plan assets, is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. The Neenah Coldenhove pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations. Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Pension Benefits Postretirement Benefits Year Ended December 31, 2019 2018 2017 2019 2018 2017 Net periodic benefit expense $ 3.7 $ 7.7 $ 7.0 $ 3.6 $ 3.1 $ 2.7 Accumulated actuarial gain (loss) 7.7 4.2 10.1 (1.5 ) 0.1 3.7 Prior service cost (credit) 0.2 (0.1 ) (0.1 ) — 0.2 0.2 Total recognized in other comprehensive income (loss) 7.9 4.1 10.0 (1.5 ) 0.3 3.9 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 11.6 $ 11.8 $ 17.0 $ 2.1 $ 3.4 $ 6.6 The estimated net actuarial loss and prior service cost for the defined benefit pension plans expected to be amortized from AOCI into net periodic benefit cost over the next fiscal year are $5.3 million and $0.3 million , respectively. The estimated net actuarial loss and prior service (credit) for postretirement benefits other than pensions expected to be amortized from AOCI into net periodic benefit cost over the next fiscal year is $0.6 million and $0.0 million , respectively. Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Pension Benefits Postretirement Benefits Other than Pensions 2019 2018 2019 2018 Discount rate 2.98 % 3.94 % 2.68 % 3.84 % Rate of compensation increase 2.05 % 2.34 % — % — % Initial healthcare cost trend rate — % — % 6.10 % 6.80 % Ultimate healthcare cost trend rate — % — % 4.50 % 4.50 % Ultimate year — — 2037 2037 Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2019 2018 2017 2019 2018 2017 Discount rate 3.78 % 3.65 % 4.18 % 3.84 % 3.42 % 3.89 % Expected long-term return on plan assets (a) 5.91 % 5.78 % 6.31 % — % — % — % Rate of compensation increase 2.33 % 2.44 % 2.49 % 2.50 % 2.50 % — % Initial healthcare cost trend rate — % — % — % 6.50 % 6.80 % 7.00 % Ultimate healthcare cost trend rate — % — % — % 4.50 % 4.50 % 4.50 % Ultimate year — — — 2037 2037 2037 _______________________ (a) The expected long-term return on plan assets does not include the Neenah Coldenhove plan assets. The Neenah Coldenhove pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations. Expected Long-Term Rate of Return and Investment Strategies The expected long-term rate of return on pension fund assets held by the Company's pension trusts was determined based on several factors, including input from pension investment consultants and projected long-term returns of broad equity and bond indices. Also considered were the plans' historical compounded annual returns. It is anticipated that, on average, the managed pension plan assets will generate a return of 5 to 6 percent . The expected long-term rate of return on the assets in the plans was based on an asset allocation assumption of approximately 33 percent with equity managers, with expected long-term rates of return of approximately 8 to 10 percent , 8 percent with hedge funds/other, with expected long-term rates of return of approximately 5 to 7 percent , and 59 percent with fixed income managers, with an expected long-term rate of return of about 3 to 5 percent . The actual asset allocation is regularly reviewed and periodically rebalanced to the targeted allocation when considered appropriate. Plan Assets Pension plan asset allocations are as follows: Percentage of Plan 2019 2018 Asset Category (a) Equity securities 33 % 33 % Hedge fund / Other 8 % 8 % Debt securities / Fixed Income 59 % 58 % Cash and money-market funds — % 1 % Total 100 % 100 % _______________________ (a) The asset categories do not include the insurance contract related to the Neenah Coldenhove pension plan. The Company's investment objective for pension plan assets is to ensure, over the long-term life of the pension plans, an adequate pool of assets to support the benefit obligations to participants, retirees, and beneficiaries. Specifically, these objectives include the desire to: (a) invest assets in a manner such that future assets are available to fund liabilities, (b) maintain liquidity sufficient to pay current benefits when due and (c) diversify, over time, among asset classes so assets earn a reasonable return with acceptable risk to capital. The weighted average target investment allocation and permissible allocation range for plan assets by category are as follows: Strategic Target Permitted Range Asset Category Equity securities 33 % 28-38% Hedge fund / Other 8 % 3-13% Debt securities / Fixed Income 59 % 54-64% As of December 31, 2019 , no company or group of companies in a single industry represented more than 5 percent of plan assets. The Company's investment assumptions are established by an investment committee composed of members of senior management and are validated periodically against actual investment returns. As of December 31, 2019 , the Company's investment assumptions are as follows: (1) The plan should be substantially fully invested in debt and equity securities at all times because substantial cash holdings will reduce long-term rates of return; (2) Equity investments will provide greater long-term returns than fixed income investments, although with greater short-term volatility; (3) It is prudent to diversify plan investments across major asset classes; (4) Allocating a portion of plan assets to foreign equities will increase portfolio diversification, decrease portfolio risk and provide the potential for long-term returns; (5) Investment managers with active mandates can reduce portfolio risk below market risk and potentially add value through security selection strategies, and a portion of plan assets should be allocated to such active mandates; (6) A component of passive, indexed management can benefit the plans through greater diversification and lower cost, and a portion of the plan assets should be allocated to such passive mandates, and (7) It is appropriate to retain more than one investment manager, given the size of the plans, provided that such managers offer asset class or style diversification. For the years ended December 31, 2019 , 2018 and 2017 , no plan assets were invested in the Company's securities. Cash Flows At December 31, 2019 , the Company expects to make aggregate contributions to qualified and nonqualified defined benefit pension trusts and to pay pension benefits for unfunded pension and other postretirement benefit plans in 2020 of approximately $9 million (based on exchange rates at December 31, 2019 ). Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Plans Postretirement Benefits Other than Pensions 2020 $ 22.3 $ 5.6 2021 27.1 5.0 2022 23.3 4.6 2023 24.2 4.2 2024 25.0 3.9 Years 2025-2029 129.3 13.7 Health Care Cost Trends Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans. A one percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage- Point Increase Decrease Effect on total of service and interest cost components $ — $ — Effect on post-retirement benefit other than pension obligation 0.2 (0.2 ) Defined Contribution Retirement Plans Company contributions to defined contribution retirement plans are based on various factors for covered employees. Contributions to these plans, all of which were charged to expense, were $2.0 million in 2019 , $2.3 million in 2018 and $2.5 million in 2017 . In addition, the Company maintains a supplemental retirement contribution plan (the "SRCP") which is a non-qualified, unfunded defined contribution plan. The Company provides benefits under the SRCP to the extent necessary to fulfill the intent of its defined contribution retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined contribution plans. For the years ended December 31, 2019 , 2018 and 2017 , the Company recognized expense related to the SRCP of $0.4 million , $0.0 million and $0.4 million , respectively. At both December 31, 2019 and December 31, 2018 , the unfunded obligation of the SRCP was $1.7 million . Investment Plans The Company provides voluntary contribution investment plans to substantially all North American employees. Under the plans, the Company matches a portion of employee contributions. For the years ended December 31, 2019 , 2018 and 2017 , costs charged to expense for Company matching contributions under these plans were $4.7 million , $4.0 million and $3.7 million , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans The Company established the 2004 Omnibus Stock and Incentive Plan (the "2004 Omnibus Plan") in December 2004 and reserved 3,500,000 shares of $0.01 par value common stock ("Common Stock") for issuance under the Omnibus Plan. Pursuant to the terms of the 2004 Omnibus Plan, the compensation committee of the Company's Board of Directors may grant various types of equity-based compensation awards, including incentive and nonqualified stock options, SARs, restricted stock, RSUs, Performance Units, in addition to certain cash-based awards. All grants under the Omnibus Plan will be made at fair market value and no grant may be repriced. In general, the options expire 10 years from the date of grant and vest over a 3 -year service period. At the 2018 Annual Meeting of Stockholders, the Company's stockholders approved an amendment and restatement of the 2004 Omnibus Plan (as amended and restated the "2018 Omnibus Plan"). The amendment and restatement authorized the Company to reserve an additional 800,000 shares of Common Stock for future issuance. As of December 31, 2019 , the Company had 1,091,000 shares of Common Stock reserved for future issuance under the 2018 Omnibus Plan. As of December 31, 2019 , the number of shares available for future issuance was reduced by approximately 177,000 shares for outstanding SARs where the closing market price for the Company's common stock was greater than the exercise price of the SAR. The Company accounts for stock-based compensation pursuant to the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). Valuation and Expense Information Under ASC Topic 718 Substantially all stock-based compensation expense has been recorded in Selling, general and administrative expenses on the consolidated statements of operations. The following table summarizes stock-based compensation costs and related income tax benefits. Year Ended December 31, 2019 2018 2017 Stock-based compensation expense $ 5.6 $ 4.0 $ 6.4 Income tax benefit (1.4 ) (1.0 ) (2.5 ) Stock-based compensation, net of income tax benefit $ 4.2 $ 3.0 $ 3.9 The following table summarizes total compensation costs related to the Company's equity awards and amounts recognized in the year ended December 31, 2019 . Stock Options Performance Unrecognized compensation cost — December 31, 2018 $ 0.6 $ 2.1 Grant date fair value current year grants — 5.5 Compensation expense recognized (0.4 ) (5.2 ) Unrecognized compensation cost — December 31, 2019 $ 0.2 $ 2.4 Expected amortization period (in years) 1.1 1.6 Stock Options/SARs The Company grants nonqualified stock options to certain non-U.S. employees and Stock Appreciation Rights (SARs, and collectively 'stock options') to certain U.S. employees. Upon exercise, the holder of a SAR receives common shares equal to the number of SARs exercised multiplied by a fraction where the numerator is equal to the market price at the time of exercise minus the exercise price of the SAR and the denominator is equal to the market price at the time of exercise. The SARs can only be settled for shares of Common Stock and the Company does not receive any cash proceeds upon exercise. The following tables present information regarding stock options awarded during the years ended December 31, 2019 , 2018 and 2017 . 2019 2018 2017 Stock options granted 1,272 108,420 144,089 Per share weighted-average exercise price $ 66.59 $ 93.22 $ 82.11 Per share weighted-average grant date fair value $ 10.32 $ 15.00 $ 13.54 The weighted-average grant date fair value for stock options granted for the years ended December 31, 2019 , 2018 and 2017 was estimated using the Black-Scholes option valuation model with the following assumptions: 2019 2018 2017 Expected term in years 5.0 5.7 5.8 Risk free interest rate 1.8 % 2.5 % 2.1 % Volatility 23.1 % 21.5 % 22.9 % Dividend yield 3.0 % 3.0 % 3.0 % Expected volatility and the expected term were estimated by reference to the historical stock price performance of the Company and historical data for the Company's stock option awards, respectively. The risk-free interest rate was based on the yield on U.S. Treasury bonds with a remaining term approximately equal to the expected term of the stock option awards. Forfeitures were estimated at the date of grant. The following table summarizes stock option activity under the Omnibus Plan for the year ended December 31, 2019 : Number of Weighted-Average Options outstanding — December 31, 2018 451,081 $ 67.46 Add: Options granted 1,272 $ 66.59 Less: Options exercised 34,073 $ 35.26 Less: Options forfeited/cancelled 1,732 $ 71.89 Options outstanding — December 31, 2019 416,548 $ 70.08 The status of outstanding and exercisable stock options as of December 31, 2019 , summarized by exercise price follows: Options Vested or Expected to Vest Options Exercisable Exercise Price Number of Weighted- Weighted- Aggregate Number of Weighted- Aggregate $13.38 — $22.44 8,745 0.8 $ 18.72 $ 0.4 8,745 $ 18.72 $ 0.4 $24.09 — $42.82 56,380 3.3 $ 34.28 2.0 56,380 $ 34.28 2.0 $48.19 — $74.20 121,703 5.8 $ 58.45 1.5 120,347 $ 58.35 1.5 $74.70 — $93.35 229,720 7.5 $ 86.93 — 132,557 $ 85.35 — 416,548 6.3 $ 70.08 $ 3.9 318,029 $ 64.36 $ 3.9 _______________________ (a) Represents the total pre-tax intrinsic value as of December 31, 2019 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $70.43 on December 31, 2019 . The aggregate pre-tax intrinsic value of stock options exercised for the years ended December 31, 2019 , 2018 and 2017 was $1.2 million , $5.2 million and $11.5 million , respectively. The following table summarizes the status of the Company's unvested stock options as of December 31, 2019 and activity for the year then ended: Number of Weighted-Average Outstanding — December 31, 2018 210,178 $ 14.21 Add: Options granted 1,272 $ 10.32 Less: Options vested 111,615 $ 14.04 Less: Options forfeited 1,316 $ 13.73 Outstanding — December 31, 2019 98,519 $ 14.41 As of December 31, 2019 , certain participants met age and service requirements that allowed their options to qualify for accelerated vesting upon retirement. As of December 31, 2019 , there were approximately 61,000 stock options subject to accelerated vesting that such participants would have been eligible to exercise if they had retired as of such date. The aggregate grant date fair value of options subject to accelerated vesting was $0.9 million . For the year ended December 31, 2019 , stock-based compensation expense for such options was less than $0.1 million . For the year ended December 31, 2019 , the aggregate grant date fair value of options vested, including options subject to accelerated vesting, was $1.6 million . Stock options that reflect accelerated vesting for expense recognition become exercisable according to the contract terms of the stock option grant. PSUs/RSUs For the year ended December 31, 2019 , the Company granted target awards of 49,730 PSUs. The measurement period for three fourths of the PSUs is January 1, 2019 through December 31, 2019, and for the remaining fourth of the PSUs is January 1, 2019 through December 31, 2021. The PSUs vest on December 31, 2021. Common Stock equal to not more than 200 percent of the PSUs target will be awarded based on the Company’s return on invested capital, consolidated revenue growth, EPS and total return to shareholders relative to the companies in the Russell 2000® Value small cap index. The Company’s return on invested capital, consolidated revenue growth and EPS are adjusted for certain items as further described in the Performance Share Unit Award Agreement. As of December 31, 2019 , the Company expects that Common Stock equal to approximately 67 percent of the PSU targets will be earned. The market price on the date of grant for the PSUs was $69.05 per share. At the end of the measurement period, the PSUs convert into RSUs, at the determined rate mentioned above, that are entitled to dividends but do not have voting rights. The Company is recognizing stock-based compensation expense pro-rata over the vesting term of the PSUs/RSUs. For further discussion on participating securities refer to Note 3, "Earnings Per Share". For the year ended December 31, 2019 , the Company awarded 10,056 RSUs to non-employee members of the Board of Directors and 36,457 RSUs to employees. The weighted-average grant date fair value of such awards was $67.04 per share and the awards vest one year from the date of grant for the Board of Directors grants and in equal amounts at December 31, 2019, 2020, and 2021 for the employee grants. During the vesting period, the holders of the RSUs are entitled to dividends, but the RSUs do not have voting rights and are forfeited in the event the holder is no longer an employee or member of the Board of Directors on the vesting date as further described in the Restricted Stock Unit Award Agreement. The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2019 , 2018 and 2017 : RSUs Weighted-Average PSUs Weighted-Average Outstanding — December 31, 2016 80,719 $ 54.91 53,506 $ 73.79 Shares granted (a) 10,318 $ 76.84 41,883 $ 81.85 Shares vested (72,451 ) $ 55.26 — $ — Performance Shares vested 73,838 $ 52.11 (53,506 ) $ 73.79 Shares expired or cancelled (3,625 ) $ 50.48 (506 ) $ 81.85 Outstanding — December 31, 2017 88,799 $ 53.33 41,377 $ 81.85 Shares granted (a) 10,618 $ 82.29 40,747 $ 93.21 Shares vested (72,190 ) $ 60.24 — $ — Performance Shares vested 33,928 $ 88.40 (31,421 ) $ 81.85 Shares expired or cancelled (7,695 ) $ 84.45 (3,482 ) $ 84.45 Outstanding — December 31, 2018 53,460 $ 67.53 47,221 $ 93.21 Shares granted (a) 46,556 $ 67.04 49,730 $ 69.05 Shares vested (63,595 ) $ 72.91 — $ — Performance Shares vested 10,354 $ 93.21 (25,833 ) $ 93.21 Shares expired or cancelled (2,113 ) $ 69.35 (4,927 ) $ 85.67 Outstanding — December 31, 2019 (b) 44,662 $ 65.23 66,191 $ 75.62 _______________________ (a) For the years ended December 31, 2019 , 2018 and 2017 , includes 43 RSUs, 132 RSUs and 226 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. (b) The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2019 was $3.1 million . The aggregate pre-tax intrinsic value of restricted stock and RSUs that vested for the years ended December 31, 2019 , 2018 and 2017 was $4.2 million , $4.4 million and $6.3 million , respectively. Excess Tax Benefits Excess tax benefits represent the difference between the tax deduction the Company will receive on its tax return for compensation recognized by employees upon the vesting or exercise of stock-based awards and the tax benefit recognized for the grant date fair value of such awards. For the years ended December 31, 2019 , 2018 and 2017 , the Company recognized excess tax benefits related to the exercise or vesting of stock-based awards of $0.1 million , $1.2 million and $4.5 million , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The Company has authorized 100 million shares of Common Stock. Holders of the Company's Common Stock are entitled to one vote per share. In November 2019, the Company's Board of Directors authorized a program, effective January 1, 2020, that would allow the Company to repurchase up to $25 million of its outstanding Common Stock over the next 12 months (the "2020 Stock Purchase Plan"). Purchases by the Company under the 2020 Stock Purchase Plan would be made from time to time in the open market or in privately negotiated transactions in accordance with the requirements of applicable law. The timing and amount of any purchases will depend on share price, market conditions and other factors. The 2020 Stock Purchase Plan does not require the Company to purchase any specific number of shares and may be suspended or discontinued at any time. The 2020 Stock Purchase Plan is expected to be funded using cash on hand or borrowings under the Company's bank credit facility. The Company also had $25 million repurchase programs in place during the preceding two years that expired in December 2019 (the “2019 Stock Purchase Plan”) and December 2018 (the “2018 Stock Purchase Plan”), respectively. The following table shows shares purchased under the respective stock purchase plans: Year Ended December 31, 2019 2018 2017 Shares $ Shares $ Shares $ 2019 Stock Purchase Plan 79,676 $ 4.9 2018 Stock Purchase Plan 124,434 $ 9.3 2017 Stock Purchase Plan — — 2016 Stock Purchase Plan 85,354 $ 6.8 As of December 31, 2019 , under the terms of the Fourth Amended and Restated Credit Agreement and the 2021 Senior Notes, the Company has limitations on its ability to repurchase shares of its Common Stock, as further discussed in Note 7, "Debt." For the years ended December 31, 2019 , 2018 and 2017 , the Company acquired 17,774 shares, 25,890 shares and 28,000 shares of Common Stock, respectively, at a cost of $1.3 million , $1.5 million and $2.5 million , respectively, for shares surrendered by employees to pay taxes due on vested restricted stock awards and SARs exercised. Preferred Stock The Company has authorized 20 million shares of $0.01 par value preferred stock. The preferred stock may be issued in one or more series and with such designations and preferences for each series as shall be stated in the resolutions providing for the designation and issue of each such series adopted by the Board of Directors of the Company. The Board of Directors is authorized by the Company's articles of incorporation to determine the voting, dividend, redemption and liquidation preferences pertaining to each such series. No shares of preferred stock have been issued by the Company. Other Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net income (loss), gains and losses recorded directly into stockholders' equity on the consolidated balance sheet. These gains and losses are referred to as other comprehensive income (loss) ("OCI") items. AOCI consists of foreign currency translation gains and (losses), adjustments related to pensions and other post-retirement benefits, and, prior to 2018, deferred gains and (losses) on "available-for-sale" securities. The Company does not provide income taxes for foreign currency translation adjustments related to indefinite investments in foreign subsidiaries. The components of accumulated other comprehensive income (loss), net of applicable income taxes are as follows: December 31, 2019 2018 Net loss from pension and other postretirement benefit liabilities, net of income tax benefits of $31.6 million and $29.9 million, respectively $ (94.3 ) $ (89.6 ) Unrealized foreign currency translation losses, net of income tax benefits of $0.3 and $0.3, respectively (19.0 ) (15.5 ) AOCI $ (113.3 ) $ (105.1 ) The following table presents changes in accumulated other comprehensive income (loss): Year Ended December 31, 2019 2018 2017 Pretax Tax Net Pretax Tax Net Pretax Tax Net Unrealized foreign currency translation gains (losses) $ (3.5 ) $ — $ (3.5 ) $ (7.9 ) $ (0.1 ) $ (8.0 ) $ 20.0 $ — $ 20.0 Adjustment to pension and other benefit liabilities (a) (6.4 ) 1.7 $ (4.7 ) (4.4 ) 1.1 (3.3 ) (13.8 ) 2.9 (10.9 ) Unrealized loss on "available-for-sale" securities (b) — — — — — — (0.4 ) 0.1 (0.3 ) Other comprehensive income (loss) $ (9.9 ) $ 1.7 $ (8.2 ) $ (12.3 ) $ 1.0 $ (11.3 ) $ 5.8 $ 3.0 $ 8.8 _______________________ (a) In conjunction with the Tax Act, the Company early adopted in the fourth quarter of 2017 ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income (Topic 740) and accordingly reclassified $10.9 million from AOCI to retained earnings to address the stranded tax effects resulting from the effect of lower tax rates in the Tax Act on items with AOCI. (b) The Company adopted ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities as of January 1, 2018. As a result of the adoption, the Company reclassified $0.3 million of unrealized losses (net of $0.1 million income tax effect) on "available-for-sale" securities to beginning retained earnings. For the years ended December 31, 2019 , 2018 and 2017 , the Company reclassified $6.0 million , $6.0 million and $5.9 million , respectively, of costs from AOCI to Other expense, net on the consolidated statements of operations. For the years ended December 31, 2019 , 2018 and 2017 , the Company recognized an income tax benefit of $1.5 million , $1.5 million and $2.3 million , respectively, related to such reclassifications classified as Provision for income taxes on the consolidated statements of operations. For the year ended December 31, 2019 , 2018, and 2017, the Company reclassified costs of $1.3 million , $0.8 million , and $0.6 million , respectively, from AOCI to the pension and SERP plan related adjustments on the Consolidated Statements of Operations. For the years ended December 31, 2019 , 2018, and 2017, the Company recognized an income tax benefit of $0.3 million , $0.2 million , and $0.2 million , respectively, related to such reclassifications classified as provision for income taxes on the Consolidated Statements of Operations. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) using the modified retrospective transition option. The Company also elected the package of transition provisions available for expired or existing contracts, which allowed us to carry forward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The most significant impact was recognition of right-of-use ("ROU") assets of $16 million and lease liabilities of $17 million on the Condensed Consolidated Balance Sheet as of January 1, 2019. The adoption of this standard did not have a significant effect related to existing leases and, as a result, no cumulative-effect adjustment was needed. The Company also completed the implementation of new processes to assist in the ongoing lease data collection and analysis, and updated its accounting policies and internal controls in connection with the adoption of the new standard. The Company has operating leases for corporate offices, warehouses and certain equipment, with remaining lease terms of up to 11 years , some of which include options to extend the leases for up to five years . The Company determines if an arrangement is a lease at inception. Operating leases with terms greater than 12 months are included in "Lease Right-of-Use Assets", "Lease liabilities payable within one year" and "Noncurrent Lease Liabilities" on the Condensed Consolidated Balance Sheets. As of December 31, 2019 , the Company did not have any material finance leases. Operating lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lease agreements contain lease and non-lease components, which are accounted for as a single lease component. Additionally, for certain equipment leases, the Company applies a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The components of lease expense were as follows: Year Ended December 31, 2019 Operating lease cost $ 3.1 Short-term lease cost 1.5 Variable lease cost (a) 2.1 _______________________ (a) The variable lease costs consist mainly of a warehouse lease where the cost is determined based on the square footage used each month. For the year ended December 31, 2019 , the Company paid $3.1 million for amounts included in the measurement of operating lease liabilities. For the year ended December 31, 2019 , new ROU assets of $0.4 million were obtained in exchange for operating lease liabilities. As of December 31, 2019 , the weighted average remaining lease term and weighted average discount rate for operating leases were 8.1 years and 4.9% , respectively. Maturities of lease liabilities were as follows: Year Ending December 31, Operating Leases 2020 $ 2.8 2021 2.6 2022 2.3 2023 2.0 2024 1.7 Thereafter 7.4 Total lease payments 18.8 Less: Imputed interest 3.9 Total lease liabilities $ 14.9 Under the previous accounting standard, ASC Topic 840, Leases , which was effective through December 31, 2018, the rent expense under operating leases for the years ended December 31, 2018 and 2017 rent was $7.2 million and $6.8 million , respectively. |
Commitments, Contingencies, and
Commitments, Contingencies, and Legal Matters | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Legal Matters | Commitments, Contingencies, and Legal Matters Litigation The Company is involved in certain legal actions and claims arising in the ordinary course of business. While the outcome of these legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claim which is pending or threatened, either individually or on a combined basis, will not have a material effect on the consolidated financial condition, results of operations or liquidity of the Company. Income Taxes The Company periodically undergoes examination by the Internal Revenue Service (the "IRS") as well as various state and foreign jurisdictions. These tax authorities routinely challenge certain deductions and credits reported by the Company on its income tax returns. No significant tax audit findings are being contested at this time with either the IRS or any state or foreign tax authority. Environmental, Health and Safety Matters The Company is subject to federal, state and local laws, regulations and ordinances relating to various environmental, health and safety matters. The Company is in compliance with, or is taking actions designed to ensure compliance with, these laws, regulations and ordinances. However, the nature of the Company's business exposes it to the risk of claims with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. Except for certain orders issued by environmental, health and safety regulatory agencies, with which management believes the Company is in compliance and which management believes are immaterial to the results of operations of the Company's business, Neenah is not currently named as a party in any judicial or administrative proceeding relating to environmental, health and safety matters. While the Company has incurred in the past several years, and will continue to incur, capital and operating expenditures in order to comply with environmental, health and safety laws, regulations and ordinances, management believes that the Company's future cost of compliance with environmental, health and safety laws, regulations and ordinances, and its exposure to liability for environmental, health and safety claims will not have a material effect on its financial condition, results of operations or liquidity. However, future events, such as changes in existing laws and regulations or contamination of sites owned, operated or used for waste disposal by the Company (including currently unknown contamination and contamination caused by prior owners and operators of such sites or other waste generators) may give rise to additional costs which could have a material effect on the Company's financial condition, results of operations or liquidity. The Company incurs capital expenditures necessary to meet legal requirements and otherwise relating to the protection of the environment at its facilities in the United States and internationally. The Company's anticipated capital expenditures for environmental projects are not expected to have a material effect on the Company's financial condition, results of operations or liquidity. Employees and Labor Relations As of December 31, 2019 , the Company had approximately 2,324 regular full-time employees of whom 995 hourly and 513 salaried employees were located in the United States and 385 hourly and 431 salaried employees were located in Europe. All of the Company's U.S. hourly union employees are represented by the USW. Certain employees of Neenah Germany are eligible to be represented by the Mining, Chemicals and Energy Trade Union, Industriegewerkschaft Bergbau, Chemie and Energie (the "IG BCE"). Under German law union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE cannot be determined. In Netherlands, most of our employees are eligible to be represented by the Christelijke Nationale Vakbond ("CNV") and the Federatie Nederlandse Vakvereniging ("FNV"). Under Netherlands law, union membership is voluntary and does not need to be disclosed to the Company. The collective bargaining arrangement with CNV and FNV will expire in April 2020. Hourly union employees at the Company's Bolton, England manufacturing facility are represented by Unite the Union ("UNITE"). As of December 31, 2019 , no employees are covered under collective bargaining agreements that will expire in the next 12 months, not including the employees covered by the collective bargaining arrangements with the IG BCE and CNV and FNV. The following table shows the status of the Company's bargaining agreements as of December 31, 2019 . Contract Expiration Date Location Union Number of Employees April 2020 Eerbeek, Netherlands CNV, FNV (a) August 2020 Weidach and Bruckmühl, Germany IG BCE (a) January 2021 Whiting, WI USW 203 June 2021 Neenah, WI USW 244 July 2021 Munising, MI USW 177 November 2021 Lowville, NY USW 98 May 2022 Appleton, WI USW 89 _______________________ (a) Under Germany and Netherlands laws, union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE, and the CNV and FNV cannot be determined. Purchase Commitments The Company has certain minimum purchase commitments that extend beyond December 31, 2019 . Commitments under these contracts are approximately $7.2 million , $0.8 million , $0.2 million , and $0.2 million for the years ended December 31, 2020 , 2021, 2022, and 2023 respectively. Such purchase commitments for the year ended December 31, 2020 are primarily for raw material contracts. Although the Company is primarily liable for payments on the above-mentioned leases and purchase commitments, management believes exposure to losses, if any, under these arrangements is not material. |
Sale of Battleboro Mill and Imp
Sale of Battleboro Mill and Impairment Loss (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Battleboro Mill and Impairment Loss | Sale of Brattleboro Mill and Impairment Loss In the second quarter of 2018, as a result of a broad scope review of various initiatives to improve margins and optimize the portfolio of products and manufacturing footprint in the Fine Paper and Packaging segment, the Company determined that the Brattleboro mill was not a strategic part of the Fine Paper and Packaging manufacturing footprint, given the nature of the office supply category. Historically, the Brattleboro mill had manufactured products primarily for the office supply category, and more recently had been adversely impacted by manufacturing inefficiencies due to changes in input costs, product category and grade complexity. Following the review, the Company initiated a process to sell the Brattleboro mill, its business operations and associated research and office facilities ("disposal group"). The disposal transaction did not constitute a strategic shift in the business that would have a major effect on operations of the Company . Upon classifying the disposal group as assets held for sale, the Company tested the individual assets of the disposal group for impairment. The disposal group was measured at fair value (a Level 3 measurement, using unobservable estimates), less costs to sell. On December 31, 2018, the Company completed the sale of the Brattleboro mill to Long Falls Paperboard, LLC for a purchase price of $5.0 million . In conjunction with the sale, the Company recorded an impairment loss of $31.1 million , of which $24.4 million , $1.1 million and $5.6 million was reported within the Fine Paper and Packaging, Technical Products and Other business segments, respectively. |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Business Segment and Geographic Information The Company's reportable operating segments consist of Technical Products, Fine Paper and Packaging and, in the prior year periods only, Other. The Technical Products segment is an aggregation of the Company's filtration and performance materials businesses which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media for transportation, water and other end use applications ("Filtration"), and tape and abrasives backings products ("Backings") and digital image transfer, durable label and other specialty substrate products ("Specialty"). The following table presents sales by product category for the technical products business: Year Ended December 31, 2019 2018 2017 Filtration 42 % 40 % 42 % Backings 24 % 28 % 31 % Specialty 34 % 32 % 27 % Total 100 % 100 % 100 % Following the disposition of the Brattleboro mill which eliminated a significant portion of the products of the Other business segment, in January 2019 the Company realigned the remaining products manufactured in the Other business segment to be managed as part of the Technical Products business segment. As a result, the Company recast the comparable 2018 and 2017 information and presented the $15.6 million and $16.5 million of net sales for the year ended December 31, 2018 and 2017, respectively, of this remaining portion of the Other business segment within the Technical Products business segment. The 2018 and 2017 operating income (loss) of the Other business segment was immaterial and was not recast. The Company also recast the total assets by segment and presented the $12.9 million of total assets as of December 31, 2018 of this remaining portion of the Other business segment within the Technical Products business segment. The Company also recast the 2018 and 2017 depreciation and amortization and capital expenditures by segment and presented $0.7 million and $0.9 million of depreciation and amortization, respectively, and $0.0 million and $1.1 million of capital expenditures, respectively, of this remaining portion of the Other business segment within the Technical Products business segment. The Company presented the net sales for the years ended December 31, 2018 and 2017 of the remaining portion of the Other business segment into Specialty products category in the table above. The fine paper and packaging business is a leading supplier of premium printing and other high-end specialty papers ("Graphic Imaging"), premium packaging ("Packaging") and specialty office papers ("Filing/Office") primarily in North America. The following table presents sales by product category for the fine paper and packaging business: Year Ended December 31, 2019 2018 2017 Graphic Imaging 79 % 78 % 80 % Packaging 21 % 18 % 16 % Filing/Office — % 4 % 4 % Total 100 % 100 % 100 % Each segment employs different technologies and marketing strategies. Disclosure of segment information is on the same basis that management uses internally for evaluating segment performance and allocating resources. Transactions between segments are eliminated in consolidation. The costs of shared services, and other administrative functions managed on a common basis, are allocated to the segments based on usage, where possible, or other factors based on the nature of the activity. General corporate expenses that do not directly support the operations of the business segments are shown as Unallocated corporate costs. The accounting policies of the reportable operating segments are the same as those described in Note 2, "Summary of Significant Accounting Policies." Business Segments Year Ended December 31, 2019 2018 2017 Net sales Technical Products $ 541.6 $ 583.2 $ 518.6 Fine Paper and Packaging 396.9 445.8 455.3 Other — 5.9 6.0 Consolidated $ 938.5 $ 1,034.9 $ 979.9 Year Ended December 31, 2019 2018 2017 Operating income (loss) Technical Products (a) $ 44.6 $ 50.9 $ 55.3 Fine Paper and Packaging (b) 53.2 29.4 69.5 Other (c) — (6.4 ) (0.4 ) Unallocated corporate costs (d) (19.5 ) (19.8 ) (20.1 ) Consolidated $ 78.3 $ 54.1 $ 104.3 _______________________ (a) Operating income for the year ended December 31, 2019 included restructuring and other non-routine costs of $ 0.3 million and a curtailment gain of $1.6 million related to the Neenah Coldenhove pension plan. Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring and integration costs, and pension settlement charges of $2.5 million , offset by favorable acquisition adjustments of $3.9 million . (b) Operating income for the year ended December 31, 2019 included $5.7 million of non-routine costs, primarily related to idled paper machine costs due to the consolidation of the fine paper manufacturing footprint. Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring costs, and pension settlement charges of $24.6 million , offset by favorable insurance settlement of $0.3 million . Operating income for the year ended December 31, 2017 included a favorable insurance settlement of $2.9 million . Operating income for the year ended December 31, 2016 included integration costs of $1.8 million . (c) Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring costs, and a pension settlement charge of $6.0 million , offset by favorable insurance settlement of $0.1 million . Operating income for the year ended December 31, 2017 included a favorable insurance settlement of $0.3 million . Operating income for the years ended December 31, 2016 included integration costs of $1.1 million . (d) Unallocated corporate costs for the year ended December 31, 2019 included costs of $0.3 million, consisting of restructuring and other non-routine costs and a SERP settlement charge. Unallocated corporate costs for the year ended December 31, 2018 included restructuring costs and pension settlement charge of $1.9 million . Unallocated corporate costs for the year ended December 31, 2017 included acquisition and integration costs of $1.3 million and $0.6 million from pension plan and SERP settlement costs. December 31, 2016 included $2.7 million of pre-operating costs related to conversion of a fine paper machine to filtration and $0.8 million for a pension plan settlement charge. Year Ended December 31, 2019 2018 2017 Depreciation and amortization Technical Products $ 24.1 $ 24.4 $ 20.3 Fine Paper and Packaging 13.2 9.9 11.0 Other — 0.2 0.3 Corporate 1.6 1.6 1.7 Consolidated $ 38.9 $ 36.1 $ 33.3 Year Ended December 31, 2019 2018 2017 Capital expenditures Technical Products $ 13.1 $ 28.0 $ 29.7 Fine Paper and Packaging 7.7 8.7 12.5 Corporate 0.6 1.4 0.5 Consolidated $ 21.4 $ 38.1 $ 42.7 December 31, 2019 2018 Total Assets (a) Technical Products $ 573.8 $ 599.3 Fine Paper and Packaging 217.7 234.7 Corporate and other (b) 36.3 27.2 Total $ 827.8 $ 861.2 _______________________ (a) Segment identifiable assets are those that are directly used in the segments operations. (b) Corporate assets are primarily deferred income taxes and lease ROU assets. Geographic Information Year Ended December 31, 2019 2018 2017 Net sales United States $ 673.0 $ 744.4 $ 748.9 Germany 196.3 216.5 210.3 Rest of Europe 69.2 74.0 20.7 Consolidated $ 938.5 $ 1,034.9 $ 979.9 Net sales are attributed to geographic areas based on the physical location of the selling entities. December 31, 2019 2018 Long-Lived Assets United States $ 364.2 $ 366.3 Germany 153.3 157.9 Rest of Europe 57.6 59.1 Total $ 575.1 $ 583.3 Long-lived assets consist of property and equipment, deferred income taxes, goodwill, intangibles and other assets. Concentrations For the year ended December 31, 2019, sales to the technical products business' largest customer represented approximately 8 percent of consolidated net sales, and approximately 14 percent of net sales for the technical products segment. For the years ended December 31, 2018, and 2017, there were no customers sales to which constituted over 10 percent of segment net sales for technical products. For the year ended December 31, 2019, sales to the largest customer of fine paper and packaging business represented approximately 8 percent of consolidated net sales, and approximately 18 percent of net sales of the fine paper and packaging business. For the year ended December 31, 2018, sales to the two largest customers of fine paper and packaging business represented approximately 7 percent and 5 percent , respectively, of consolidated net sales and approximately 16 percent and 12 percent , respectively, of net sales of the fine paper and packaging business. For the year ended December 31, 2017 sales to the two largest customers of fine paper and packaging business each represented approximately 7 percent of consolidated net sales and approximately 15 percent of net sales of the fine paper and packaging business. Except for certain specialty latex grades and specialty softwood pulp used by Technical Products, management is not aware of any significant concentration of business transacted with a particular supplier that could, if suddenly eliminated, have a material effect on its operations. |
Supplemental Data
Supplemental Data | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Data | Supplemental Data Supplemental Statement of Operations Data Summary of Advertising and Research and Development Expenses Year Ended December 31, 2019 2018 2017 Advertising expense (a) $ 4.9 $ 4.7 $ 6.0 Research and development expense 8.7 9.2 8.9 _______________________ (a) Advertising expense and research and development expense are recorded in Selling, general and administrative expenses on the consolidated statements of operations. Supplemental Balance Sheet Data Summary of Accounts Receivable, net December 31, 2019 2018 From customers $ 104.1 $ 116.1 Less allowance for doubtful accounts and sales discounts (1.5 ) (1.3 ) Total $ 102.6 $ 114.8 Summary of Inventories December 31, 2019 2018 Inventories by Major Class: Raw materials $ 32.8 $ 35.6 Work in progress 26.4 30.1 Finished goods 67.3 78.3 Supplies and other 5.2 3.0 131.7 147.0 Excess of FIFO over LIFO cost (8.9 ) (15.4 ) Total $ 122.8 $ 131.6 The first-in, first-out ("FIFO") value of inventories valued on the LIFO method was $102.2 million and $109.1 million at December 31, 2019 and 2018 , respectively. For the year ended December 31, 2019 and 2018 , income from continuing operations before income taxes was reduced by less than $0.1 million and $0.6 million , respectively, due to a decrease in certain LIFO inventory quantities. Summary of Prepaid and Other Current Assets December 31, 2019 2018 Prepaid and other current assets $ 9.9 $ 12.2 Spare parts 6.4 6.6 Receivable for income taxes 2.0 2.8 Total $ 18.3 $ 21.6 Summary of Property, Plant and Equipment, net December 31, 2019 2018 Land and land improvements $ 19.4 $ 19.0 Buildings 165.4 156.0 Machinery and equipment 651.0 650.3 Construction in progress 14.8 14.9 850.6 840.2 Less accumulated depreciation 470.0 444.0 Net Property, Plant and Equipment $ 380.6 $ 396.2 Depreciation expense for the years ended December 31, 2019 , 2018 and 2017 was $33.9 million , $32.6 million and $28.3 million , respectively. Interest expense capitalized as part of the costs of capital projects was $0.2 million , $0.2 million and $0.0 million , respectively, for the years ended December 31, 2019 , 2018 and 2017 . Summary of Accrued Expenses December 31, 2019 2018 Accrued salaries and employee benefits $ 26.2 $ 23.9 Amounts due to customers 8.9 9.6 Accrued income taxes 0.5 5.3 Accrued utilities 3.0 3.9 Accrued interest 1.2 1.2 Other 7.2 11.3 Total $ 47.0 $ 55.2 Summary of Noncurrent Employee Benefits December 31, 2019 2018 Pension benefits $ 57.1 $ 54.0 Post-employment benefits other than pensions (a) 36.0 38.9 Total $ 93.1 $ 92.9 _______________________ (a) Post-employment benefits other than pensions included $1.7 million of SRCP benefits, $0.7 million of Canadian long-term disability benefits, and $0.2 million of other long-term benefits as of December 31, 2019. As of December 31, 2018, $1.7 million of SRCP benefits and $0.8 million of Canadian long-term disability benefits were included. Supplemental Cash Flow Data Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2019 2018 2017 Cash paid during the year for interest, net of interest expense capitalized $ 10.9 $ 11.9 $ 11.3 Cash paid during the year for income taxes, net of refunds 13.3 7.6 7.6 Non-cash investing activities: Liability for equipment acquired 3.2 3.4 5.4 Net Cash Provided by (Used in) Changes in Operating Working Capital, Net of Effect of Acquisitions Year Ended December 31, 2019 2018 2017 Accounts receivable $ 11.6 $ (0.9 ) $ (10.2 ) Inventories 8.2 3.8 (11.7 ) Income taxes receivable/payable (5.4 ) (1.8 ) 4.5 Prepaid and other current assets 2.4 (1.8 ) (0.4 ) Accounts payable (14.0 ) 0.3 10.6 Accrued expenses (3.4 ) (0.6 ) (4.2 ) Other — — (0.4 ) Total $ (0.6 ) $ (1.0 ) $ (11.8 ) |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Data | Unaudited Quarterly Data 2019 Quarters First Second (a) Third (b) Fourth (c) Year Net Sales $ 239.7 $ 253.4 $ 231.8 $ 213.6 $ 938.5 Gross Profit 43.7 50.7 44.7 44.3 183.4 Operating Income (Loss) 17.4 19.8 19.0 22.1 78.3 Income (Loss) From Continuing Operations 11.8 13.6 14.4 15.6 55.4 Earnings (Loss) Per Common Share From Continuing Operations: Basic $ 0.70 $ 0.80 $ 0.85 $ 0.92 $ 3.27 Diluted $ 0.69 $ 0.80 $ 0.84 $ 0.92 $ 3.26 _______________________ (a) Operating income includes idled paper machine costs of $2.0 million , indirect tax audit costs for 2012-15 of $0.6 million , and restructuring and other non-routine costs of $0.9 million . (b) Operating income includes idled paper machine costs of $2.4 million , indirect tax audit costs for 2012-15 of $0.1 million , a favorable adjustment to restructuring and other non-routine costs of $0.2 million , and a SERP settlement charge of $0.1 million . (c) Operating income includes idled paper machine costs of $0.3 million , a pension plan curtailment gain of $1.6 million , and a pension plan curtailment charge of $0.1 million . 2018 Quarters First (d) Second (e) Third (f) Fourth (g) Year Net Sales $ 266.5 $ 271.3 $ 256.2 $ 240.9 $ 1,034.9 Gross Profit 52.4 55.1 41.3 34.6 183.4 Operating Income 24.1 (4.3 ) 16.5 17.8 54.1 Income From Continuing Operations 16.2 (4.8 ) 12.9 12.9 37.2 Earnings Per Common Share From Continuing Operations: Basic $ 0.96 $ (0.29 ) $ 0.76 $ 0.77 $ 2.20 Diluted $ 0.95 $ (0.29 ) $ 0.75 $ 0.76 $ 2.17 _______________________ (d) Income from continuing operations includes an unfavorable prior year tax adjustment of $0.9 million related to one-time taxes on foreign earnings under the Tax Act and an after-tax SERP settlement charge of $0.6 million . (e) Operating loss includes an impairment loss of $32.0 million , pension settlement charges of $1.0 million and integration and restructuring charges of $0.3 million . (f) Operating income includes a favorable acquisition-related adjustment of $3.1 million , a favorable insurance settlement of $0.4 million , and unfavorable adjustments to the impairment loss of $2.0 million and $2.2 million of integration and restructuring charges. (g) Operating income includes favorable adjustments to the impairment loss of $2.9 million and $0.4 million to integration and restructuring costs and a favorable acquisition-related adjustment of $0.8 million . Income from continuing operations includes a favorable tax adjustment related to a Netherlands tax rate change of $0.7 million . |
SCHEDULE II SCHEDULE OF VALUATI
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Dollars in millions) Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Write-offs and Reclassifications Balance at End of Period December 31, 2019 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 0.8 $ 0.5 $ — $ (0.3 ) $ 1.0 Allowance for sales discounts 0.5 — (0.1 ) — 0.4 Valuation allowance – deferred income taxes 2.7 — 3.1 — 5.8 December 31, 2018 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 0.8 $ 0.1 $ — $ (0.1 ) $ 0.8 Allowance for sales discounts 0.5 — — — 0.5 Valuation allowance – deferred income taxes 0.4 0.1 2.2 — 2.7 December 31, 2017 Allowances deducted from assets to which they apply Allowance for doubtful accounts $ 1.0 $ 0.2 $ — $ (0.4 ) $ 0.8 Allowance for sales discounts 0.5 — — — 0.5 Valuation allowance – deferred income taxes 3.5 — — (3.1 ) 0.4 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the financial statements of the Company and its wholly owned and majority owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Actual results could differ from these estimates, and changes in these estimates are recorded when known. Significant management judgment is required in determining the accounting for, among other things, reserves for uncertain tax positions, pension and postretirement benefit obligations, retained insurable risks, reserves for sales discounts and allowances, purchase price allocations, useful lives for depreciation and amortization, asset retirement obligations ("AROs"), future cash flows associated with impairment testing for tangible and intangible long-lived assets, goodwill, income taxes, contingencies, inventory obsolescence and market reserves and the valuation of stock-based compensation. |
Revenue Recognition | Revenue Recognition The Company recognizes sales revenue at a point in time following the transfer of control of the product to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contractual arrangements. Sales are reported net of allowable discounts and estimated returns. Reserves for cash discounts, trade allowances and sales returns are estimated using historical experience. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill our promise to transfer the associated products. Accordingly, the Company records customer payments of shipping and handling costs as a component of net sales and classifies such costs as a component of cost of sales. The Company excludes tax amounts assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers from our measurement of transaction prices. Accordingly, such tax amounts are not included as a component of net sales or cost of sales. The Company considers each transaction/shipment as a separate performance obligation. Neenah recognizes revenue when the title transfers to the customer. As such, the remaining performance obligations at period end are not considered significant. Sales terms in the technical products business vary depending on the type of product sold and customer category. In general, sales are collected in approximately 45 to 55 days . Extended credit terms of up to 120 days are offered to customers located in certain international markets. Fine paper and packaging sales terms range between 20 and 30 days with discounts of 0 to 2 percent for early customer payments, with discounts of one percent and 20 -day terms used most often. Extended credit terms are offered to customers located in certain international markets. Refer to Note 14, "Business Segment and Geographic Information", for further disaggregation of revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments with an initial maturity of three months or less. The Company places its temporary cash investments with high credit quality financial institutions. As of December 31, 2019 and 2018 , $0.1 million and $0.1 million , respectively, of the Company's cash and cash equivalents is restricted to the payment of postretirement benefits for certain former Fox River executives. |
Inventories | Inventories U.S. inventories are valued at the lower of cost, using the last-in, first-out ("LIFO") method for financial reporting purposes, or market. European inventories are valued at the lower of cost, using a weighted-average cost method, or net realizable value. Cost includes labor, materials and production overhead. |
Foreign Currency | Foreign Currency Balance sheet accounts of the Company's operations in Germany and the Netherlands, the United Kingdom (the "U.K."), and Canada are translated from Euros, British Pounds, and Canadian dollars, respectively, into U.S. dollars at period-end exchange rates, and income and expense accounts are translated at average exchange rates during the period. Translation gains or losses related to net assets located in Germany, the Netherlands, the U.K., and Canada are recorded as unrealized foreign currency translation adjustments within accumulated other comprehensive income (loss) ("AOCI") in stockholders' equity. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in Other expense, net in the consolidated statements of operations. |
Property and Depreciation | Property and Depreciation Property, plant and equipment are stated at cost, less accumulated depreciation. Certain costs of software developed or obtained for internal use are capitalized. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and the gains or losses are recorded in Other (income) expense, net. For financial reporting purposes, depreciation is principally computed on the straight-line method over estimated useful asset lives. The weighted average remaining useful lives for buildings, land improvements and machinery and equipment are approximately 19 years , 19 years and 10 years , respectively. The units-of-production method of depreciation is used for the U.S. transportation filtration production assets with a gross book value of $69.3 million , which reflects the nature of the assets' utilization. For income tax purposes, accelerated methods of depreciation are used. The costs of major rebuilds and replacements of plant and equipment are capitalized, and the cost of maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is expensed as incurred. Start-up costs for new or expanded facilities, including costs related to trial production, are expensed as incurred. The Company accounts for AROs in accordance with Accounting Standards Codification ("ASC") Topic 410, Asset Retirements and Environmental Obligations , which requires companies to make estimates regarding future events in order to record a liability for AROs in the period in which a legal obligation is created. Such liabilities are recorded at fair value, with an offsetting increase to the carrying value of the related long-lived asset. As of December 31, 2019 , the Company is unable to estimate its AROs for environmental liabilities at its manufacturing facilities. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation — Stock Compensation ("ASC Topic 718"). The amount of stock-based compensation cost recognized is based on the fair value of grants that are ultimately expected to vest and is recognized pro-rata over the requisite service period for the entire award. |
Research and Development Expense | Research and Development Expense Research and development costs are charged to expense as incurred and are recorded in "Selling, general and administrative expenses" on the consolidated statement of operations. See Note 15, "Supplemental Data — Supplemental Statement of Operations Data." |
Fair Value Measurements and Fair Value of Pension Plan Assets | Fair Value Measurements The Company measures fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures ("ASC Topic 820") which establishes a framework for measuring fair value. ASC Topic 820 provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Fair Value of Pension Plan Assets |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short maturities. The fair value of short and long-term debt is estimated using rates currently available to the Company for debt of the same remaining maturities. The following table presents the carrying value and the fair value of the Company's debt. 12/31/2019 12/31/2018 Carrying Fair Carrying Fair 2021 Senior Notes (5.25% fixed rate) $ 175.0 $ 174.3 $ 175.0 $ 170.5 Global Revolving Credit Facilities (variable rates) 21.6 21.6 57.9 57.9 Second German Loan Agreement (2.5% fixed rate) 3.5 3.6 4.8 5.1 Third German Loan Agreement (1.45% fixed rate) 3.7 3.7 4.9 4.9 Total debt $ 203.8 $ 203.2 $ 242.6 $ 238.4 _______________________ (a) Fair value for all debt instruments was estimated from Level 2 measurements. The Company's investments in marketable securities are accounted for as "available-for-sale securities" in accordance with ASC Topic 320, Investments — Debt and Equity Securities ("ASC Topic 320"). Pursuant to ASC Topic 320, marketable securities are reported at fair value on the consolidated balance sheet and holding gains and losses are reported in "Other Income (Expense), net" on the Company's consolidated statements of operations. At December 31, 2019 , the Company had $4.0 million in marketable securities classified as Other assets on the consolidated balance sheet. The cost of such marketable securities was $4.4 million . Fair value for the Company's marketable securities was estimated from Level 1 inputs. The Company's marketable securities are designated for the payment of benefits under its supplemental employee retirement plan ("SERP"). |
Accounting Standards Changes | Accounting Standards Changes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current lease accounting. The amendments in this ASU are effective January 1, 2019. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, to allow a company to elect an optional modified retrospective transition method that applies the new lease requirements through a cumulative-effect adjustment in the period of adoption. Effective January 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The most significant change was related to the recognition of $16 million of right-of-use assets and corresponding lease liabilities of $17 million on its consolidated balance sheet as of January 1, 2019. The adoption of this standard did not have a material impact related to existing leases and as a result, a cumulative-effect adjustment was not recorded. See Note 11, "Leases." In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715) . ASU 2017-07 requires entities to (1) disaggregate the current service-cost component from the other components of net benefit cost (the "other components") and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if such a subtotal is presented. In addition, only the service-cost component of net benefit cost is eligible for capitalization in inventories. The Company adopted this ASU as of January 1, 2018. As a result of the adoption, the Company reclassified $1.5 million and $1.2 million of net cost for the year ended December 31, 2017, of other components of net benefit cost from "Cost of products sold" and "Selling, general and administrative expenses" to "Other Expense - net" on the consolidated statements of operations. There was no other material impact on its consolidated financial statements due to the adoption. As of December 31, 2019 , no other amendments to the ASC had been issued and not adopted by the Company that will have or are reasonably likely to have a material effect on the its financial position, results of operations or cash flows. |
Earnings per Share | The Company's restricted stock units ("RSUs") are paid non-forfeitable common stock dividends and thus meet the criteria of participating securities. Accordingly, basic EPS has been calculated using the two-class method, under which earnings are allocated to both common stock and participating securities. Basic EPS has been computed by dividing net income allocated to common stock by the weighted average common shares outstanding. For the computation of basic EPS, weighted average RSUs outstanding are excluded from the calculation of weighted average shares outstanding. ASC Topic 260, Earnings per Share ("ASC Topic 260") requires companies with participating securities to calculate diluted earnings per share using the "two class" method. The "two class" method requires first calculating diluted earnings per share using a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities. Diluted earnings per share is then calculated using net income reduced by the amount of distributed and undistributed earnings allocated to participating securities calculated using the "Treasury Stock" method and a denominator that includes the weighted average share equivalents from the assumed conversion of dilutive securities excluding participating securities. Companies are required to report the lower of the diluted earnings per share amounts under the two calculations subject to the anti-dilution provisions of ASC Topic 260. Diluted EPS has been computed by dividing net income allocated to common stock by the weighted average number of common shares used in computing basic EPS, further adjusted to include the dilutive impact of the exercise or conversion of common stock equivalents, such as stock options, stock appreciation rights ("SARs") and target awards of RSUs with performance conditions ("Performance Share Units" or "PSUs"), into shares of common stock as if those securities were exercised or converted. For the years ended December 31, 2019 , 2018 and 2017 , approximately 231,000 , 143,000 and 72,000 potentially dilutive options, respectively, were excluded from the computation of dilutive common shares because the exercise price of such options exceeded the average market price of the Company's common stock for the respective 12 -month periods during which the options were outstanding. |
Acquisitions | The Company accounted for the transaction using the acquisition method in accordance with ASC Topic 805, Business Combinations ("ASC Topic 805"). The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of November 1, 2017. The Company did not recognize any in-process research and development assets as part of the acquisition. |
Goodwill | The Company follows the guidance of ASC Topic 805, Business Combinations ("ASC Topic 805"), in recording goodwill arising from a business combination as the excess of purchase price over the fair value of identifiable assets acquired and liabilities assumed. The Company tests goodwill for impairment at least annually on November 30 in conjunction with preparation of its annual business plan, or more frequently if events or circumstances indicate it might be impaired. The Company tested goodwill for impairment as of November 30, 2019 under ASC Topic 350, Intangibles — Goodwill and Other |
Finite-Lived Intangible Assets | Intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives to their estimated residual values, and reviewed for impairment in accordance with ASC Topic 360, Property, Plant, and Equipment . Intangible assets consist primarily of customer relationships, trade names and acquired intellectual property. Such intangible assets are amortized using the straight-line method over estimated useful lives of between 10 and 15 |
Business Segments | The Company's reportable operating segments consist of Technical Products, Fine Paper and Packaging and, in the prior year periods only, Other. The Technical Products segment is an aggregation of the Company's filtration and performance materials businesses which are similar in terms of economic characteristics, nature of products, processes, customer class and product distribution methods. The technical products business is an international producer of fiber-formed, coated and/or saturated specialized media that delivers high performance benefits to customers. Included in this segment are filtration media for transportation, water and other end use applications ("Filtration"), and tape and abrasives backings products ("Backings") and digital image transfer, durable label and other specialty substrate products ("Specialty"). Each segment employs different technologies and marketing strategies. Disclosure of segment information is on the same basis that management uses internally for evaluating segment performance and allocating resources. Transactions between segments are eliminated in consolidation. The costs of shared services, and other administrative functions managed on a common basis, are allocated to the segments based on usage, where possible, or other factors based on the nature of the activity. General corporate expenses that do not directly support the operations of the business segments are shown as Unallocated corporate costs. The accounting policies of the reportable operating segments are the same as those described in Note 2, "Summary of Significant Accounting Policies." |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of the carrying value and fair value of the Company's debt | The following table presents the carrying value and the fair value of the Company's debt. 12/31/2019 12/31/2018 Carrying Fair Carrying Fair 2021 Senior Notes (5.25% fixed rate) $ 175.0 $ 174.3 $ 175.0 $ 170.5 Global Revolving Credit Facilities (variable rates) 21.6 21.6 57.9 57.9 Second German Loan Agreement (2.5% fixed rate) 3.5 3.6 4.8 5.1 Third German Loan Agreement (1.45% fixed rate) 3.7 3.7 4.9 4.9 Total debt $ 203.8 $ 203.2 $ 242.6 $ 238.4 _______________________ (a) |
Schedule of level 3 defined benefit pension plan assets measured at fair value | The following table summarizes the changes in Level 3 defined benefit pension plan assets (Neenah Coldenhove insurance contract) measured at fair value on a recurring basis for the year ended December 31, 2019 and 2018 : Return on plan assets Fair Value at January 1 Attributable to Assets Held at December 31 Attributable to Assets Sold Net Purchases/ (Settlements) Transfers into/ (out of) Level 3 Foreign currency effects Fair For the year ended December 31, 2017 $ — 0.2 — 46.9 — 1.3 $ 48.4 For the year ended December 31, 2018 $ 48.4 (0.9 ) — (0.3 ) — (2.1 ) $ 45.1 For the year ended December 31, 2019 $ 45.1 7.5 — (0.2 ) — (0.9 ) $ 51.5 |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted shares of common stock used in the calculation of EPS (amounts in millions, except share and per share amounts): Earnings per basic common share Year Ended December 31, 2019 2018 2017 Income from continuing operations $ 55.4 $ 37.2 $ 80.3 Amounts attributable to participating securities (0.3 ) (0.2 ) (0.6 ) Income from continuing operations available to common stockholders 55.1 37.0 79.7 Loss from discontinued operations, net of income taxes — (0.8 ) — Amounts attributable to participating securities — — — Net income available to common stockholders $ 55.1 $ 36.2 $ 79.7 Weighted-average basic shares outstanding 16,848 16,850 16,805 Basic earnings (loss) per share Continuing operations $ 3.27 $ 2.20 $ 4.74 Discontinued operations — (0.05 ) — $ 3.27 $ 2.15 $ 4.74 Earnings per diluted common share Year Ended December 31, 2019 2018 2017 Income from continuing operations $ 55.4 $ 37.2 $ 80.3 Amounts attributable to participating securities (0.3 ) (0.4 ) (0.5 ) Income from continuing operations available to common stockholders 55.1 36.8 79.8 Loss from discontinued operations, net of income taxes — (0.8 ) — Amounts attributable to participating securities — — — Net income available to common stockholders $ 55.1 $ 36.0 $ 79.8 Weighted-average basic shares outstanding 16,848 16,850 16,805 Add: Assumed incremental shares under stock-based compensation plans 58 118 247 Weighted average diluted shares 16,906 16,968 17,052 Diluted earnings (loss) per share Continuing operations $ 3.26 $ 2.17 $ 4.68 Discontinued operations — (0.05 ) — $ 3.26 $ 2.12 $ 4.68 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of allocation of the purchase price to the estimated fair value of the assets acquired and liabilities | The following table summarizes the allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed as of December 31, 2017. December 31, 2017 Assets Acquired Cash and cash equivalents $ 4.9 Accounts receivable 4.7 Inventories (a) 12.7 Deferred income taxes 0.4 Prepaid and other current assets 0.2 Property, plant and equipment (a) 31.2 Non-amortizable intangible assets 1.2 Amortizable intangible assets 4.7 Acquired goodwill (a) 10.0 Other assets 0.1 Total assets acquired 70.1 Liabilities Assumed Accounts payable 4.1 Accrued expenses 5.4 Contingent liability (b) 2.3 Deferred income taxes (a) 3.5 Noncurrent employee benefits 4.9 Long-term debt 1.8 Other noncurrent obligations 0.1 Total liabilities assumed 22.1 Net assets acquired $ 48.0 _______________________ (a) The Company had up to 12 months from the closing of the acquisition to finalize its valuations. Management evaluated additional information and determined that the preliminary valuation of inventory at the acquisition date should have been determined using fair value assumptions that would have resulted in the fair value of inventory being lower than originally estimated primarily due to changes in the assumptions related to inventory margins of the acquired business. In addition, management evaluated additional information related to fixed assets and updated the preliminary valuation of fixed assets at the acquisition date. Accordingly, during the nine months ended September 30, 2018, adjustments were made to reduce the carrying value of inventories and fixed assets by $1.5 million , with a corresponding increase to the value of goodwill of $1.1 million , net of income taxes. (b) In conjunction with the acquisition, the Company assumed a contingent liability of $2.3 million related to the acquisition of direct customer relationships by Neenah Coldenhove, which amount was contingent on the growth of sales from these customer relationships in 2018 and 2019. During the year ended December 31, 2018, the Company reduced the estimated liability to $0.8 million and recognized a receivable of $2.4 million from the former shareholders of Neenah Coldenhove related to a claim under an escrow arrangement. These two items totaling $3.9 million were recognized as income during the year ended December 31, 2018, as they relate to the operating results subsequent to the acquisition. These amounts were settled during the year ended December 31, 2019. |
Summary of pro forma consolidated statements of operations | The following selected unaudited pro forma consolidated statements of operations data for the year ended December 31, 2017 was prepared as though the Coldenhove Acquisition had occurred on January 1, 2016. The information does not reflect future events that may occur after the acquisition or any operating efficiencies or inefficiencies that may result from the Coldenhove Acquisition. Therefore, the information is not necessarily indicative of results that would have been achieved had the businesses been combined during the periods presented or the results that the Company will experience going forward. Year Ended December 31, 2017 Net sales $ 1,019.8 Operating income 108.9 Net income $ 83.0 Earnings Per Common Share Basic $ 4.90 Diluted $ 4.84 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The following table presents the carrying value of goodwill by business segment and changes in the carrying value of goodwill. Technical Products Fine Paper and Other Gross Accumulated Gross Amount Accumulated Gross Accumulated Net Net Net Net Balance at December 31, 2017 $ 128.3 $ (49.6 ) $ 78.7 $ 6.2 — 6.2 $ 0.4 — 0.4 $ 85.3 Adjustment of goodwill acquired in the Coldenhove Acquisition (a) 1.1 — 1.1 — — — — — — 1.1 Impairment related to the Brattleboro mill and associated office and research facilities (b) — — — — — — — (0.1 ) (0.1 ) (0.1 ) Foreign currency translation (4.5 ) 2.2 (2.3 ) — — — — — — (2.3 ) Balance at December 31, 2018 124.9 (47.4 ) 77.5 6.2 — 6.2 0.4 (0.1 ) 0.3 84.0 Realignment of Other segment (c) 0.4 (0.1 ) 0.3 — — — (0.4 ) 0.1 (0.3 ) — Foreign currency translation (1.9 ) 1.0 (0.9 ) — — — — — — (0.9 ) Balance at December 31, 2019 $ 123.4 $ (46.5 ) $ 76.9 $ 6.2 $ — $ 6.2 $ — $ — $ — $ 83.1 _______________________ (a) As a result of finalizing the acquisition accounting for Neenah Coldenhove in 2018, an adjustment of $ 1.1 million , net of income taxes, was recorded as a reduction to inventory and fixed assets and increase to goodwill. (b) In conjunction with the sale of the Brattleboro mill, a goodwill impairment loss of $ 0.1 million was recognized in 2018. (c) In January 2019, the Company realigned the remaining products manufactured in the Other business segment to be managed as part of the Technical Products business segment. See Note 14, "Business Segment and Geographic Information." |
Schedule of gross carrying amount of intangible assets and the related accumulated amortization for intangible assets subject to amortization | The following table presents intangible assets acquired in conjunction with the Coldenhove Acquisition as of December 31, 2017: Intangibles Estimated Useful Intangible assets — definite lived Trade names and trademarks $ 0.5 10 Customer based intangibles 2.9 15 Acquired technology 1.3 4 Total 4.7 Non-amortizable trade names 1.2 Total intangible assets $ 5.9 12/31/2019 12/31/2018 Gross Accumulated Gross Accumulated Amortizable intangible assets Customer based intangibles $ 38.2 $ (20.4 ) $ 38.3 $ (18.2 ) Trade names and trademarks 5.1 (2.7 ) 5.1 (2.5 ) Acquired technology 16.9 (8.0 ) 16.9 (6.7 ) Total amortizable intangible assets 60.2 (31.1 ) 60.3 (27.4 ) Trade names 37.6 — 37.8 — Total $ 97.8 $ (31.1 ) $ 98.1 $ (27.4 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of difference between the effective income tax rate and the U.S. federal statutory income tax rate | The following table presents the principal reasons for the difference between the Company's effective income tax rate and the U.S. federal statutory income tax rate: Year Ended December 31, 2019 2019 2018 2018 2017 2017 U.S. federal statutory income tax rate 21.0 % $ 14.0 21.0 % $ 8.6 35.0 % $ 32.1 U.S. state income taxes, net of federal income tax benefit 1.4 % 0.9 (1.0 )% (0.4 ) 1.9 % 1.7 Foreign tax rate differences (a) 3.6 % 2.4 6.8 % 2.8 (3.4 )% (3.1 ) Tax on foreign dividends (b) 0.9 % 0.6 3.6 % 1.5 (0.3 )% (0.3 ) Foreign financing structure (c) (3.0 )% (2.0 ) (5.1 )% (2.1 ) (2.2 )% (2.0 ) Change in statutory tax rates (d) — % — (3.9 )% (1.6 ) (10.6 )% (9.7 ) Research and development and other tax credits (6.2 )% (4.1 ) (10.5 )% (4.3 ) (3.3 )% (3.0 ) Excess tax benefits from stock compensation (0.2 )% (0.1 ) (2.9 )% (1.2 ) (4.9 )% (4.5 ) Uncertain income tax positions (1.9 )% (1.3 ) 2.0 % 0.8 0.8 % 0.7 Other differences, net 1.1 % 0.7 (0.5 )% (0.2 ) (0.6 )% (0.5 ) Effective income tax rate 16.7 % $ 11.1 9.5 % $ 3.9 12.4 % $ 11.4 _______________________ (a) Represents the impact on the Company's effective tax rate due the mix of earnings among taxing jurisdictions with differing statutory rates. In 2019 and 2018, the U.S. federal tax rate is lower than the tax rate in Germany and the Netherlands. (b) For 2017, the amount reflects the net benefit of the indefinite reinvestment assertion of $4.1 million , less the $3.8 million mandatory one-time tax on the accumulated E&P of foreign subsidiaries from the Tax Act. For 2018, the amount reflects a measurement-period adjustment of $0.8 million to the mandatory one-time tax on the accumulated E&P of foreign subsidiaries, and in 2019 and 2018 includes federal GILTI impacts and state taxation of foreign E&P. (c) Represents the impact on the Company's effective tax rate of the Company's financing strategies. (d) Represents the net benefit from remeasurement of the net deferred income tax liabilities from tax rate changes. For 2017, the amount reflects a tax benefit of $10.3 million from the Tax Act, less $0.6 million of tax expense from a state tax rate change in Germany. For 2018, the amount reflects an additional measurement-period tax benefit adjustment of $0.9 million from the Tax Act, plus $0.7 million of tax benefit from a federal tax rate change in the Netherlands. |
Schedule of the U.S. and foreign components of income from continuing operations before income taxes | The following table presents the U.S. and foreign components of income from continuing operations before income taxes: Year Ended December 31, 2019 2018 2017 Income (loss) from continuing operations before income taxes: U.S. $ 30.1 $ (1.7 ) $ 53.6 Foreign 36.4 42.8 38.1 Total $ 66.5 $ 41.1 $ 91.7 |
Schedule of components of the provision (benefit) for income taxes | The following table presents the components of the provision (benefit) for income taxes: Year Ended December 31, 2019 2018 2017 Provision (benefit) for income taxes: Current: Federal $ 0.3 $ (3.0 ) $ 4.7 State (0.2 ) 0.1 0.5 Foreign 7.6 8.7 6.4 Total current income tax provision 7.7 5.8 11.6 Deferred: Federal 3.0 (0.6 ) (1.8 ) State 0.8 (0.2 ) (0.1 ) Foreign (0.4 ) (1.1 ) 1.7 Total deferred income tax provision 3.4 (1.9 ) (0.2 ) Total provision for income taxes $ 11.1 $ 3.9 $ 11.4 |
Schedule of components of deferred tax assets and liabilities | The components of deferred income tax assets and liabilities, net of reserves for uncertain tax positions and valuation allowances, are as follows: December 31, 2019 2018 Deferred income tax assets (liabilities) Research and development tax credits $ 21.5 $ 20.0 Employee benefits 15.9 16.5 Net operating losses and other tax credits 6.4 7.4 Lease liabilities 3.1 — Accrued liabilities 2.1 2.3 Interest limitation — 1.7 Inventories (0.6 ) 1.0 Lease right-of-use assets (2.8 ) — Intangibles (4.7 ) (4.2 ) Accelerated depreciation (28.0 ) (28.8 ) Other 0.5 0.5 Net deferred income tax assets $ 13.4 $ 16.4 Deferred income tax assets (liabilities) Accelerated depreciation $ (16.7 ) $ (16.6 ) Intangibles (3.0 ) (3.2 ) Inventories (0.9 ) (1.0 ) Lease right-of-use assets (0.7 ) — Net operating losses 0.2 0.2 Lease liabilities 0.7 — Employee benefits 7.5 6.3 Other — (0.1 ) Net deferred income tax liabilities $ (12.9 ) $ (14.4 ) |
Schedule of reconciliation of the total amounts of uncertain tax positions | The following is a tabular reconciliation of the total amounts of uncertain tax positions as of and for the years ended December 31, 2019 , 2018 and 2017 : For the Years Ended 2019 2018 2017 Balance at January 1, $ 10.1 $ 10.0 $ 10.3 Increases in prior period tax positions 0.7 0.1 0.4 Decreases in prior period tax positions (1.2 ) — (1.0 ) Increases in current period tax positions 0.6 0.8 0.7 Decreases due to lapse of statutes of limitations (1.5 ) (0.6 ) (1.0 ) Increases due to change in tax rates — 0.1 0.4 Decreases due to settlements with tax authorities (0.9 ) (0.2 ) — Increases (decreases) from foreign exchange rate changes — (0.1 ) 0.2 Balance at December 31, $ 7.8 $ 10.1 $ 10.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: December 31, 2019 2018 2021 Senior Notes (5.25% fixed rate) due May 2021 $ 175.0 $ 175.0 Global Revolving Credit Facilities (variable rates) due December 2023 21.6 57.9 Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 3.5 4.8 Third German Loan Agreement (1.45% fixed rate) due in quarterly installments ending September 2022 3.7 4.9 Deferred financing costs (3.0 ) (3.5 ) Total Debt 200.8 239.1 Less: Debt payable within one year 2.6 2.3 Long-term debt $ 198.2 $ 236.8 |
Schedule of ABR interest rates applicable to outstanding borrowings | ABR borrowings under the Global Revolving Credit Facilities will bear interest at the highest interest rate shown in the following table: Applicable Margin U.S. Revolving Credit Facility German Revolving Credit Facility Prime rate 0.00%-0.25% Not applicable Federal funds rate +0.50% 0.00%-0.25% Not applicable Monthly LIBOR (which cannot be less than zero percent) +1.00% 0.00%-0.25% Not applicable Overnight LIBOR (which cannot be less than zero percent) Not applicable 1.25%-1.75% |
Schedule of debt payments | The following table presents the Company's required debt payments: 2020 2021 2022 2023 2024 Thereafter Total Debt payments $ 2.6 $ 177.8 $ 1.8 $ 21.6 $ — $ — $ 203.8 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of reconciliation of benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans | The following table reconciles the benefit obligations, plan assets, funded status and net liability information of the Company's pension and other postretirement benefit plans. Pension Benefits Postretirement Year Ended December 31, 2019 2018 2019 2018 Change in Benefit Obligation: Benefit obligation at beginning of year $ 430.7 $ 463.9 $ 42.4 $ 44.0 Service cost 5.0 6.7 1.2 1.1 Interest cost 16.2 15.8 1.5 1.4 Currency (1.2 ) (4.6 ) 0.1 (0.3 ) Actuarial (gain) loss 55.0 (29.3 ) (0.7 ) 1.1 Benefit payments from plans (21.1 ) (20.3 ) (4.8 ) (4.9 ) Plan curtailment (a) (2.8 ) — — — Settlement payments (0.5 ) (2.2 ) — — Other 1.1 0.7 — — Benefit obligation at end of year $ 482.4 $ 430.7 $ 39.7 $ 42.4 Change in Plan Assets: Fair value of plan assets at beginning of year $ 375.2 $ 400.4 $ — $ — Actual gain (loss) on plan assets 62.1 (18.9 ) — — Employer contributions 8.3 18.2 — — Currency (0.5 ) (2.7 ) — — Benefit payments (21.1 ) (20.3 ) — — Settlement payments (0.5 ) (2.2 ) — — Other 0.6 0.7 — — Fair value of plan assets at end of year $ 424.1 $ 375.2 $ — $ — Reconciliation of Funded Status Fair value of plan assets $ 424.1 $ 375.2 $ — $ — Projected benefit obligation 482.4 430.7 39.7 42.4 Net liability recognized in statement of financial position $ (58.3 ) $ (55.5 ) $ (39.7 ) $ (42.4 ) Amounts recognized in statement of financial position consist of: Current liabilities $ (1.2 ) $ (1.7 ) $ (5.6 ) $ (5.2 ) Noncurrent liabilities (57.1 ) (53.8 ) (34.1 ) (37.2 ) Net amount recognized $ (58.3 ) $ (55.5 ) $ (39.7 ) $ (42.4 ) _______________________ (a) For the year ended December 31, 2019, the Company recognized a curtailment gain of $1.6 million related to the Neenah Coldenhove pension plan. See discussion earlier in this Note. |
Schedule of amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income (loss) consist of: Pension Postretirement December 31, 2019 2018 2019 2018 Accumulated actuarial loss $ 117.8 $ 110.1 $ 7.2 $ 8.7 Prior service cost 0.9 0.7 — — Total recognized in AOCI $ 118.7 $ 110.8 $ 7.2 $ 8.7 |
Summary of disaggregated information about the pension plans | Summary disaggregated information about the pension plans follows: December 31, Assets Exceed ABO ABO Exceed Assets Total 2019 2018 2019 2018 2019 2018 Projected benefit obligation $ — $ 130.3 $ 482.4 $ 300.4 $ 482.4 $ 430.7 Accumulated benefit obligation — 125.4 478.3 298.5 478.3 423.9 Fair value of plan assets — 128.8 424.1 246.4 424.1 375.2 |
Schedule of components of net periodic benefit cost for Defined Benefit Plans | Components of Net Periodic Benefit Cost Pension Benefits Postretirement Benefits Year Ended December 31, 2019 2018 2017 2019 2018 2017 Service cost $ 5.0 $ 6.7 $ 5.5 $ 1.2 $ 1.1 $ 1.2 Interest cost 16.2 15.8 15.0 1.5 1.4 1.4 Expected return on plan assets (a) (21.1 ) (21.0 ) (19.9 ) — — — Recognized net actuarial loss 4.9 5.2 5.6 0.9 0.8 0.3 Amortization of prior service cost (credit) 0.2 0.2 0.2 — (0.2 ) (0.2 ) Curtailment gain (1.6 ) — — — — — Amount of settlement loss recognized 0.1 0.8 0.6 — — — Net periodic benefit cost $ 3.7 $ 7.7 $ 7.0 $ 3.6 $ 3.1 $ 2.7 _______________________ (a) The expected return on plan assets, excluding the Neenah Coldenhove plan assets, is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. The Neenah Coldenhove pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations. |
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Pension Benefits Postretirement Benefits Year Ended December 31, 2019 2018 2017 2019 2018 2017 Net periodic benefit expense $ 3.7 $ 7.7 $ 7.0 $ 3.6 $ 3.1 $ 2.7 Accumulated actuarial gain (loss) 7.7 4.2 10.1 (1.5 ) 0.1 3.7 Prior service cost (credit) 0.2 (0.1 ) (0.1 ) — 0.2 0.2 Total recognized in other comprehensive income (loss) 7.9 4.1 10.0 (1.5 ) 0.3 3.9 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 11.6 $ 11.8 $ 17.0 $ 2.1 $ 3.4 $ 6.6 |
Schedule of weighted-average assumptions used to determine benefit obligations | Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Pension Benefits Postretirement Benefits Other than Pensions 2019 2018 2019 2018 Discount rate 2.98 % 3.94 % 2.68 % 3.84 % Rate of compensation increase 2.05 % 2.34 % — % — % Initial healthcare cost trend rate — % — % 6.10 % 6.80 % Ultimate healthcare cost trend rate — % — % 4.50 % 4.50 % Ultimate year — — 2037 2037 |
Schedule of weighted-average assumptions used to determine net periodic benefit cost | Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Pension Benefits Postretirement Benefits Other than Pensions Year Ended December 31, 2019 2018 2017 2019 2018 2017 Discount rate 3.78 % 3.65 % 4.18 % 3.84 % 3.42 % 3.89 % Expected long-term return on plan assets (a) 5.91 % 5.78 % 6.31 % — % — % — % Rate of compensation increase 2.33 % 2.44 % 2.49 % 2.50 % 2.50 % — % Initial healthcare cost trend rate — % — % — % 6.50 % 6.80 % 7.00 % Ultimate healthcare cost trend rate — % — % — % 4.50 % 4.50 % 4.50 % Ultimate year — — — 2037 2037 2037 _______________________ (a) The expected long-term return on plan assets does not include the Neenah Coldenhove plan assets. The Neenah Coldenhove pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations. |
Schedule of pension plan asset allocations | Pension plan asset allocations are as follows: Percentage of Plan 2019 2018 Asset Category (a) Equity securities 33 % 33 % Hedge fund / Other 8 % 8 % Debt securities / Fixed Income 59 % 58 % Cash and money-market funds — % 1 % Total 100 % 100 % _______________________ (a) The asset categories do not include the insurance contract related to the Neenah Coldenhove pension plan. |
Schedule of target investment allocation and permissible allocation range for plan assets by category | The weighted average target investment allocation and permissible allocation range for plan assets by category are as follows: Strategic Target Permitted Range Asset Category Equity securities 33 % 28-38% Hedge fund / Other 8 % 3-13% Debt securities / Fixed Income 59 % 54-64% |
Schedule of future benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Plans Postretirement Benefits Other than Pensions 2020 $ 22.3 $ 5.6 2021 27.1 5.0 2022 23.3 4.6 2023 24.2 4.2 2024 25.0 3.9 Years 2025-2029 129.3 13.7 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | Assumed health care cost trend rates affect the amounts reported for postretirement health care benefit plans. A one percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage- Point Increase Decrease Effect on total of service and interest cost components $ — $ — Effect on post-retirement benefit other than pension obligation 0.2 (0.2 ) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense and related income tax benefits | The following table summarizes stock-based compensation costs and related income tax benefits. Year Ended December 31, 2019 2018 2017 Stock-based compensation expense $ 5.6 $ 4.0 $ 6.4 Income tax benefit (1.4 ) (1.0 ) (2.5 ) Stock-based compensation, net of income tax benefit $ 4.2 $ 3.0 $ 3.9 |
Schedule of total compensation costs related to the Company's equity awards and amounts recognized | The following table summarizes total compensation costs related to the Company's equity awards and amounts recognized in the year ended December 31, 2019 . Stock Options Performance Unrecognized compensation cost — December 31, 2018 $ 0.6 $ 2.1 Grant date fair value current year grants — 5.5 Compensation expense recognized (0.4 ) (5.2 ) Unrecognized compensation cost — December 31, 2019 $ 0.2 $ 2.4 Expected amortization period (in years) 1.1 1.6 |
Schedule of stock options awarded | The following tables present information regarding stock options awarded during the years ended December 31, 2019 , 2018 and 2017 . 2019 2018 2017 Stock options granted 1,272 108,420 144,089 Per share weighted-average exercise price $ 66.59 $ 93.22 $ 82.11 Per share weighted-average grant date fair value $ 10.32 $ 15.00 $ 13.54 |
Schedule of assumptions used to determine the grant date fair value of options granted | The weighted-average grant date fair value for stock options granted for the years ended December 31, 2019 , 2018 and 2017 was estimated using the Black-Scholes option valuation model with the following assumptions: 2019 2018 2017 Expected term in years 5.0 5.7 5.8 Risk free interest rate 1.8 % 2.5 % 2.1 % Volatility 23.1 % 21.5 % 22.9 % Dividend yield 3.0 % 3.0 % 3.0 % |
Schedule of stock option activity under the Omnibus Plan | The following table summarizes stock option activity under the Omnibus Plan for the year ended December 31, 2019 : Number of Weighted-Average Options outstanding — December 31, 2018 451,081 $ 67.46 Add: Options granted 1,272 $ 66.59 Less: Options exercised 34,073 $ 35.26 Less: Options forfeited/cancelled 1,732 $ 71.89 Options outstanding — December 31, 2019 416,548 $ 70.08 |
Schedule of outstanding and exercisable stock options summarized by exercise price | The status of outstanding and exercisable stock options as of December 31, 2019 , summarized by exercise price follows: Options Vested or Expected to Vest Options Exercisable Exercise Price Number of Weighted- Weighted- Aggregate Number of Weighted- Aggregate $13.38 — $22.44 8,745 0.8 $ 18.72 $ 0.4 8,745 $ 18.72 $ 0.4 $24.09 — $42.82 56,380 3.3 $ 34.28 2.0 56,380 $ 34.28 2.0 $48.19 — $74.20 121,703 5.8 $ 58.45 1.5 120,347 $ 58.35 1.5 $74.70 — $93.35 229,720 7.5 $ 86.93 — 132,557 $ 85.35 — 416,548 6.3 $ 70.08 $ 3.9 318,029 $ 64.36 $ 3.9 _______________________ (a) Represents the total pre-tax intrinsic value as of December 31, 2019 that option holders would have received had they exercised their options as of such date. The pre-tax intrinsic value is based on the closing market price for the Company's common stock of $70.43 on December 31, 2019 . |
Schedule of status of the Company's unvested stock options | The following table summarizes the status of the Company's unvested stock options as of December 31, 2019 and activity for the year then ended: Number of Weighted-Average Outstanding — December 31, 2018 210,178 $ 14.21 Add: Options granted 1,272 $ 10.32 Less: Options vested 111,615 $ 14.04 Less: Options forfeited 1,316 $ 13.73 Outstanding — December 31, 2019 98,519 $ 14.41 |
Summary of activity of unvested stock-based awards | The following table summarizes the activity of the Company's unvested stock-based awards (other than stock options) for the years ended December 31, 2019 , 2018 and 2017 : RSUs Weighted-Average PSUs Weighted-Average Outstanding — December 31, 2016 80,719 $ 54.91 53,506 $ 73.79 Shares granted (a) 10,318 $ 76.84 41,883 $ 81.85 Shares vested (72,451 ) $ 55.26 — $ — Performance Shares vested 73,838 $ 52.11 (53,506 ) $ 73.79 Shares expired or cancelled (3,625 ) $ 50.48 (506 ) $ 81.85 Outstanding — December 31, 2017 88,799 $ 53.33 41,377 $ 81.85 Shares granted (a) 10,618 $ 82.29 40,747 $ 93.21 Shares vested (72,190 ) $ 60.24 — $ — Performance Shares vested 33,928 $ 88.40 (31,421 ) $ 81.85 Shares expired or cancelled (7,695 ) $ 84.45 (3,482 ) $ 84.45 Outstanding — December 31, 2018 53,460 $ 67.53 47,221 $ 93.21 Shares granted (a) 46,556 $ 67.04 49,730 $ 69.05 Shares vested (63,595 ) $ 72.91 — $ — Performance Shares vested 10,354 $ 93.21 (25,833 ) $ 93.21 Shares expired or cancelled (2,113 ) $ 69.35 (4,927 ) $ 85.67 Outstanding — December 31, 2019 (b) 44,662 $ 65.23 66,191 $ 75.62 _______________________ (a) For the years ended December 31, 2019 , 2018 and 2017 , includes 43 RSUs, 132 RSUs and 226 RSUs, respectively, that were granted in lieu of cash dividends. Such dividends-in-kind vest concurrently with the underlying RSUs. (b) The aggregate pre-tax intrinsic value of outstanding RSUs as of December 31, 2019 was $3.1 million . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedules of shares purchased under stock purchase plan | The following table shows shares purchased under the respective stock purchase plans: Year Ended December 31, 2019 2018 2017 Shares $ Shares $ Shares $ 2019 Stock Purchase Plan 79,676 $ 4.9 2018 Stock Purchase Plan 124,434 $ 9.3 2017 Stock Purchase Plan — — 2016 Stock Purchase Plan 85,354 $ 6.8 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in accumulated other comprehensive income (loss): Year Ended December 31, 2019 2018 2017 Pretax Tax Net Pretax Tax Net Pretax Tax Net Unrealized foreign currency translation gains (losses) $ (3.5 ) $ — $ (3.5 ) $ (7.9 ) $ (0.1 ) $ (8.0 ) $ 20.0 $ — $ 20.0 Adjustment to pension and other benefit liabilities (a) (6.4 ) 1.7 $ (4.7 ) (4.4 ) 1.1 (3.3 ) (13.8 ) 2.9 (10.9 ) Unrealized loss on "available-for-sale" securities (b) — — — — — — (0.4 ) 0.1 (0.3 ) Other comprehensive income (loss) $ (9.9 ) $ 1.7 $ (8.2 ) $ (12.3 ) $ 1.0 $ (11.3 ) $ 5.8 $ 3.0 $ 8.8 _______________________ (a) In conjunction with the Tax Act, the Company early adopted in the fourth quarter of 2017 ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income (Topic 740) and accordingly reclassified $10.9 million from AOCI to retained earnings to address the stranded tax effects resulting from the effect of lower tax rates in the Tax Act on items with AOCI. (b) The Company adopted ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities as of January 1, 2018. As a result of the adoption, the Company reclassified $0.3 million of unrealized losses (net of $0.1 million income tax effect) on "available-for-sale" securities to beginning retained earnings. The components of accumulated other comprehensive income (loss), net of applicable income taxes are as follows: December 31, 2019 2018 Net loss from pension and other postretirement benefit liabilities, net of income tax benefits of $31.6 million and $29.9 million, respectively $ (94.3 ) $ (89.6 ) Unrealized foreign currency translation losses, net of income tax benefits of $0.3 and $0.3, respectively (19.0 ) (15.5 ) AOCI $ (113.3 ) $ (105.1 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, cost | The components of lease expense were as follows: Year Ended December 31, 2019 Operating lease cost $ 3.1 Short-term lease cost 1.5 Variable lease cost (a) 2.1 _______________________ (a) The variable lease costs consist mainly of a warehouse lease where the cost is determined based on the square footage used each month. |
Lease, liability, maturities | Maturities of lease liabilities were as follows: Year Ending December 31, Operating Leases 2020 $ 2.8 2021 2.6 2022 2.3 2023 2.0 2024 1.7 Thereafter 7.4 Total lease payments 18.8 Less: Imputed interest 3.9 Total lease liabilities $ 14.9 |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Legal Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of bargaining agreements | The following table shows the status of the Company's bargaining agreements as of December 31, 2019 . Contract Expiration Date Location Union Number of Employees April 2020 Eerbeek, Netherlands CNV, FNV (a) August 2020 Weidach and Bruckmühl, Germany IG BCE (a) January 2021 Whiting, WI USW 203 June 2021 Neenah, WI USW 244 July 2021 Munising, MI USW 177 November 2021 Lowville, NY USW 98 May 2022 Appleton, WI USW 89 _______________________ (a) Under Germany and Netherlands laws, union membership is voluntary and does not need to be disclosed to the Company. As a result, the number of employees covered by the collective bargaining agreement with the IG BCE, and the CNV and FNV cannot be determined. |
Business Segment and Geograph_2
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of net sales by product | The following table presents sales by product category for the technical products business: Year Ended December 31, 2019 2018 2017 Filtration 42 % 40 % 42 % Backings 24 % 28 % 31 % Specialty 34 % 32 % 27 % Total 100 % 100 % 100 % Year Ended December 31, 2019 2018 2017 Graphic Imaging 79 % 78 % 80 % Packaging 21 % 18 % 16 % Filing/Office — % 4 % 4 % Total 100 % 100 % 100 % |
Schedule of net sales, operating income (loss) and total assets for each business segment | Business Segments Year Ended December 31, 2019 2018 2017 Net sales Technical Products $ 541.6 $ 583.2 $ 518.6 Fine Paper and Packaging 396.9 445.8 455.3 Other — 5.9 6.0 Consolidated $ 938.5 $ 1,034.9 $ 979.9 Year Ended December 31, 2019 2018 2017 Operating income (loss) Technical Products (a) $ 44.6 $ 50.9 $ 55.3 Fine Paper and Packaging (b) 53.2 29.4 69.5 Other (c) — (6.4 ) (0.4 ) Unallocated corporate costs (d) (19.5 ) (19.8 ) (20.1 ) Consolidated $ 78.3 $ 54.1 $ 104.3 _______________________ (a) Operating income for the year ended December 31, 2019 included restructuring and other non-routine costs of $ 0.3 million and a curtailment gain of $1.6 million related to the Neenah Coldenhove pension plan. Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring and integration costs, and pension settlement charges of $2.5 million , offset by favorable acquisition adjustments of $3.9 million . (b) Operating income for the year ended December 31, 2019 included $5.7 million of non-routine costs, primarily related to idled paper machine costs due to the consolidation of the fine paper manufacturing footprint. Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring costs, and pension settlement charges of $24.6 million , offset by favorable insurance settlement of $0.3 million . Operating income for the year ended December 31, 2017 included a favorable insurance settlement of $2.9 million . Operating income for the year ended December 31, 2016 included integration costs of $1.8 million . (c) Operating income for the year ended December 31, 2018 included non-cash impairment loss, restructuring costs, and a pension settlement charge of $6.0 million , offset by favorable insurance settlement of $0.1 million . Operating income for the year ended December 31, 2017 included a favorable insurance settlement of $0.3 million . Operating income for the years ended December 31, 2016 included integration costs of $1.1 million . (d) Unallocated corporate costs for the year ended December 31, 2019 included costs of $0.3 million, consisting of restructuring and other non-routine costs and a SERP settlement charge. Unallocated corporate costs for the year ended December 31, 2018 included restructuring costs and pension settlement charge of $1.9 million . Unallocated corporate costs for the year ended December 31, 2017 included acquisition and integration costs of $1.3 million and $0.6 million from pension plan and SERP settlement costs. December 31, 2016 included $2.7 million of pre-operating costs related to conversion of a fine paper machine to filtration and $0.8 million for a pension plan settlement charge. Year Ended December 31, 2019 2018 2017 Depreciation and amortization Technical Products $ 24.1 $ 24.4 $ 20.3 Fine Paper and Packaging 13.2 9.9 11.0 Other — 0.2 0.3 Corporate 1.6 1.6 1.7 Consolidated $ 38.9 $ 36.1 $ 33.3 Year Ended December 31, 2019 2018 2017 Capital expenditures Technical Products $ 13.1 $ 28.0 $ 29.7 Fine Paper and Packaging 7.7 8.7 12.5 Corporate 0.6 1.4 0.5 Consolidated $ 21.4 $ 38.1 $ 42.7 December 31, 2019 2018 Total Assets (a) Technical Products $ 573.8 $ 599.3 Fine Paper and Packaging 217.7 234.7 Corporate and other (b) 36.3 27.2 Total $ 827.8 $ 861.2 _______________________ (a) Segment identifiable assets are those that are directly used in the segments operations. (b) Corporate assets are primarily deferred income taxes and lease ROU assets. |
Schedule of net sales and assets by geographic areas | Geographic Information Year Ended December 31, 2019 2018 2017 Net sales United States $ 673.0 $ 744.4 $ 748.9 Germany 196.3 216.5 210.3 Rest of Europe 69.2 74.0 20.7 Consolidated $ 938.5 $ 1,034.9 $ 979.9 |
Long-lived Assets by Geographic Areas | Net sales are attributed to geographic areas based on the physical location of the selling entities. December 31, 2019 2018 Long-Lived Assets United States $ 364.2 $ 366.3 Germany 153.3 157.9 Rest of Europe 57.6 59.1 Total $ 575.1 $ 583.3 |
Supplemental Data (Tables)
Supplemental Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of advertising and research and development expenses | Summary of Advertising and Research and Development Expenses Year Ended December 31, 2019 2018 2017 Advertising expense (a) $ 4.9 $ 4.7 $ 6.0 Research and development expense 8.7 9.2 8.9 _______________________ (a) Advertising expense and research and development expense are recorded in Selling, general and administrative expenses on the consolidated statements of operations. |
Summary of accounts receivable - net | Summary of Accounts Receivable, net December 31, 2019 2018 From customers $ 104.1 $ 116.1 Less allowance for doubtful accounts and sales discounts (1.5 ) (1.3 ) Total $ 102.6 $ 114.8 |
Schedule of inventories by major class | Summary of Inventories December 31, 2019 2018 Inventories by Major Class: Raw materials $ 32.8 $ 35.6 Work in progress 26.4 30.1 Finished goods 67.3 78.3 Supplies and other 5.2 3.0 131.7 147.0 Excess of FIFO over LIFO cost (8.9 ) (15.4 ) Total $ 122.8 $ 131.6 |
Summary of prepaid and other current assets | Summary of Prepaid and Other Current Assets December 31, 2019 2018 Prepaid and other current assets $ 9.9 $ 12.2 Spare parts 6.4 6.6 Receivable for income taxes 2.0 2.8 Total $ 18.3 $ 21.6 |
Summary of property, plant and equipment - net | Summary of Property, Plant and Equipment, net December 31, 2019 2018 Land and land improvements $ 19.4 $ 19.0 Buildings 165.4 156.0 Machinery and equipment 651.0 650.3 Construction in progress 14.8 14.9 850.6 840.2 Less accumulated depreciation 470.0 444.0 Net Property, Plant and Equipment $ 380.6 $ 396.2 |
Summary of accrued expenses | Summary of Accrued Expenses December 31, 2019 2018 Accrued salaries and employee benefits $ 26.2 $ 23.9 Amounts due to customers 8.9 9.6 Accrued income taxes 0.5 5.3 Accrued utilities 3.0 3.9 Accrued interest 1.2 1.2 Other 7.2 11.3 Total $ 47.0 $ 55.2 |
Summary of noncurrent employee benefits | Summary of Noncurrent Employee Benefits December 31, 2019 2018 Pension benefits $ 57.1 $ 54.0 Post-employment benefits other than pensions (a) 36.0 38.9 Total $ 93.1 $ 92.9 _______________________ (a) Post-employment benefits other than pensions included $1.7 million of SRCP benefits, $0.7 million of Canadian long-term disability benefits, and $0.2 million of other long-term benefits as of December 31, 2019. As of December 31, 2018, $1.7 million of SRCP benefits and $0.8 million of Canadian long-term disability benefits were included. |
Schedule of supplemental disclosure of cash flow information | Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2019 2018 2017 Cash paid during the year for interest, net of interest expense capitalized $ 10.9 $ 11.9 $ 11.3 Cash paid during the year for income taxes, net of refunds 13.3 7.6 7.6 Non-cash investing activities: Liability for equipment acquired 3.2 3.4 5.4 |
Schedule of net cash provided by (used in) changes in working capital, net of effect of acquisitions | Net Cash Provided by (Used in) Changes in Operating Working Capital, Net of Effect of Acquisitions Year Ended December 31, 2019 2018 2017 Accounts receivable $ 11.6 $ (0.9 ) $ (10.2 ) Inventories 8.2 3.8 (11.7 ) Income taxes receivable/payable (5.4 ) (1.8 ) 4.5 Prepaid and other current assets 2.4 (1.8 ) (0.4 ) Accounts payable (14.0 ) 0.3 10.6 Accrued expenses (3.4 ) (0.6 ) (4.2 ) Other — — (0.4 ) Total $ (0.6 ) $ (1.0 ) $ (11.8 ) |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly data | 2019 Quarters First Second (a) Third (b) Fourth (c) Year Net Sales $ 239.7 $ 253.4 $ 231.8 $ 213.6 $ 938.5 Gross Profit 43.7 50.7 44.7 44.3 183.4 Operating Income (Loss) 17.4 19.8 19.0 22.1 78.3 Income (Loss) From Continuing Operations 11.8 13.6 14.4 15.6 55.4 Earnings (Loss) Per Common Share From Continuing Operations: Basic $ 0.70 $ 0.80 $ 0.85 $ 0.92 $ 3.27 Diluted $ 0.69 $ 0.80 $ 0.84 $ 0.92 $ 3.26 _______________________ (a) Operating income includes idled paper machine costs of $2.0 million , indirect tax audit costs for 2012-15 of $0.6 million , and restructuring and other non-routine costs of $0.9 million . (b) Operating income includes idled paper machine costs of $2.4 million , indirect tax audit costs for 2012-15 of $0.1 million , a favorable adjustment to restructuring and other non-routine costs of $0.2 million , and a SERP settlement charge of $0.1 million . (c) Operating income includes idled paper machine costs of $0.3 million , a pension plan curtailment gain of $1.6 million , and a pension plan curtailment charge of $0.1 million . 2018 Quarters First (d) Second (e) Third (f) Fourth (g) Year Net Sales $ 266.5 $ 271.3 $ 256.2 $ 240.9 $ 1,034.9 Gross Profit 52.4 55.1 41.3 34.6 183.4 Operating Income 24.1 (4.3 ) 16.5 17.8 54.1 Income From Continuing Operations 16.2 (4.8 ) 12.9 12.9 37.2 Earnings Per Common Share From Continuing Operations: Basic $ 0.96 $ (0.29 ) $ 0.76 $ 0.77 $ 2.20 Diluted $ 0.95 $ (0.29 ) $ 0.75 $ 0.76 $ 2.17 _______________________ (d) Income from continuing operations includes an unfavorable prior year tax adjustment of $0.9 million related to one-time taxes on foreign earnings under the Tax Act and an after-tax SERP settlement charge of $0.6 million . (e) Operating loss includes an impairment loss of $32.0 million , pension settlement charges of $1.0 million and integration and restructuring charges of $0.3 million . (f) Operating income includes a favorable acquisition-related adjustment of $3.1 million , a favorable insurance settlement of $0.4 million , and unfavorable adjustments to the impairment loss of $2.0 million and $2.2 million of integration and restructuring charges. (g) Operating income includes favorable adjustments to the impairment loss of $2.9 million and $0.4 million to integration and restructuring costs and a favorable acquisition-related adjustment of $0.8 million . Income from continuing operations includes a favorable tax adjustment related to a Netherlands tax rate change of $0.7 million . |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2019primary_operation | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of primary operations | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Payment discount | 1.00% |
Payment discount days available | 20 days |
Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Collection terms | 45 days |
Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Collection terms | 55 days |
International | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Extended collection terms | 120 days |
Fine Paper and Packaging | Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Collection terms | 20 days |
Payment discount | 0.00% |
Fine Paper and Packaging | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Collection terms | 30 days |
Payment discount | 2.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Postretirement Benefits Other than Pensions | ||
Cash and Cash Equivalents | ||
Restricted cash and cash equivalent | $ 0.1 | $ 0.1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Depreciation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Property and Depreciation | |
Assets in which units-of-production method of depreciation is used | $ 69.3 |
Buildings | |
Property and Depreciation | |
Weighted average useful lives | 19 years |
Land improvements | |
Property and Depreciation | |
Weighted average useful lives | 19 years |
Machinery and equipment | |
Property and Depreciation | |
Weighted average useful lives | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | May 31, 2013 |
Marketable securities | ||||
Cost of marketable securities | $ 4.4 | |||
Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | ||||
Fair Value of Financial Instruments | ||||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | ||
Secured debt | Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 | ||||
Fair Value of Financial Instruments | ||||
Fixed rate of interest (as a percent) | 2.45% | |||
Secured debt | Third German Loan Agreement (1.45% fixed rate) | ||||
Fair Value of Financial Instruments | ||||
Fixed rate of interest (as a percent) | 1.45% | 1.45% | ||
Carrying Value | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | $ 203.8 | $ 242.6 | ||
Carrying Value | Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 175 | 175 | ||
Carrying Value | Line of credit | Global Revolving Credit Facilities (variable rates) due December 2023 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 21.6 | 57.9 | ||
Carrying Value | Secured debt | Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 3.5 | 4.8 | ||
Carrying Value | Secured debt | Third German Loan Agreement (1.45% fixed rate) | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 3.7 | 4.9 | ||
Fair Value | Level 2 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 203.2 | 238.4 | ||
Fair Value | Level 2 | Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 174.3 | 170.5 | ||
Fair Value | Level 2 | Line of credit | Global Revolving Credit Facilities (variable rates) due December 2023 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 21.6 | 57.9 | ||
Fair Value | Level 2 | Secured debt | Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | 3.6 | 5.1 | ||
Fair Value | Level 2 | Secured debt | Third German Loan Agreement (1.45% fixed rate) | ||||
Fair Value of Financial Instruments | ||||
Debt fair value | $ 3.7 | $ 4.9 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 400.4 | $ 424.1 | $ 375.2 |
Level 3 | W.A. Sanders Coldenhove Holding B.V. | Insurance Contracts Acquired in Business Combination | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Purchases/ (Settlements) | $ 46.8 | ||
Cash and cash equivalents | Level 1 | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.8 | 1.7 | |
U.S. and Non-U.S. Equities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets measured at NAV | 122.5 | 107.8 | |
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets measured at NAV | 219.4 | 192.7 | |
Hedge Funds | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets measured at NAV | $ 29.9 | $ 27.9 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of the Changes in Level 3 Defined Benefit Plan Assets (Details) - Level 3 - W.A. Sanders Coldenhove Holding B.V. - Insurance Contracts Acquired in Business Combination - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation | |||
Fair value of plan assets at beginning of year | $ 45.1 | $ 48.4 | $ 0 |
Attributable to Assets Held at December 31 | 7.5 | (0.9) | 0.2 |
Attributable to Assets Sold | 0 | 0 | 0 |
Net Purchases/ (Settlements) | (0.2) | (0.3) | 46.9 |
Transfers into/ (out of) Level 3 | 0 | 0 | 0 |
Foreign currency effects | (0.9) | (2.1) | 1.3 |
Fair value of plan assets at end of year | $ 51.5 | $ 45.1 | $ 48.4 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disposal Groups | ||||
Loss from discontinued operations, net of income taxes | $ 0 | $ 0.8 | $ 0 | |
Lahnstein Mill | ||||
Disposal Groups | ||||
Loss from discontinued operations, net of income taxes | $ 0.8 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use assets | $ 13.9 | ||
Operating lease liability | $ 14.9 | ||
Accounting Standards Update 2017-07 | Cost of Products Sold | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net periodic benefit expense | $ 1.5 | ||
Accounting Standards Update 2017-07 | Selling, General and Administrative Expenses | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net periodic benefit expense | $ 1.2 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use assets | $ 16 | ||
Operating lease liability | $ 17 |
Earnings per Share ("EPS") - Na
Earnings per Share ("EPS") - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive options, excluded from the computation of dilutive common shares (shares) | 231 | 143 | 72 |
Earnings per Share ("EPS") - Sc
Earnings per Share ("EPS") - Schedule of Earnings Per Share Calculations, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per basic common share | |||||||||||
Income from continuing operations | $ 15.6 | $ 14.4 | $ 13.6 | $ 11.8 | $ 12.9 | $ 12.9 | $ (4.8) | $ 16.2 | $ 55.4 | $ 37.2 | $ 80.3 |
Amounts attributable to participating securities | (0.3) | (0.2) | (0.6) | ||||||||
Income from continuing operations available to common stockholders | 55.1 | 37 | 79.7 | ||||||||
Loss from discontinued operations, net of income taxes | 0 | (0.8) | 0 | ||||||||
Amounts attributable to participating securities | 0 | 0 | 0 | ||||||||
Net income available to common stockholders | $ 55.1 | $ 36.2 | $ 79.7 | ||||||||
Weighted-average basic shares outstanding (in shares) | 16,848 | 16,850 | 16,805 | ||||||||
Continuing operations (in dollars per share) | $ 0.92 | $ 0.85 | $ 0.80 | $ 0.70 | $ 0.77 | $ 0.76 | $ (0.29) | $ 0.96 | $ 3.27 | $ 2.20 | $ 4.74 |
Discontinued operations (in dollars per share) | 0 | (0.05) | 0 | ||||||||
Basic (in dollars per share) | $ 3.27 | $ 2.15 | $ 4.74 | ||||||||
Earnings per diluted common share | |||||||||||
Income from continuing operations | $ 15.6 | $ 14.4 | $ 13.6 | $ 11.8 | $ 12.9 | $ 12.9 | $ (4.8) | $ 16.2 | $ 55.4 | $ 37.2 | $ 80.3 |
Amounts attributable to participating securities | (0.3) | (0.4) | (0.5) | ||||||||
Income from continuing operations available to common stockholders | 55.1 | 36.8 | 79.8 | ||||||||
Loss from discontinued operations, net of income taxes | 0 | (0.8) | 0 | ||||||||
Amounts attributable to participating securities | 0 | 0 | 0 | ||||||||
Net income available to common stockholders | $ 55.1 | $ 36 | $ 79.8 | ||||||||
Weighted-average basic shares outstanding (in shares) | 16,848 | 16,850 | 16,805 | ||||||||
Assumed incremental shares under stock-based compensation plans (in shares) | 58 | 118 | 247 | ||||||||
Weighted average diluted shares (in shares) | 16,906 | 16,968 | 17,052 | ||||||||
Continuing operations (in dollars per share) | $ 0.92 | $ 0.84 | $ 0.80 | $ 0.69 | $ 0.76 | $ 0.75 | $ (0.29) | $ 0.95 | $ 3.26 | $ 2.17 | $ 4.68 |
Discontinued operations (in dollars per share) | 0 | (0.05) | 0 | ||||||||
Diluted (in dollars per share) | $ 3.26 | $ 2.12 | $ 4.68 |
Acquisitions - Coldenhove Acqui
Acquisitions - Coldenhove Acquisition Narrative (Details) - USD ($) | Nov. 01, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||||||
Net sales | $ 938,500,000 | $ 1,034,900,000 | $ 979,900,000 | |||||||||
W.A. Sanders Coldenhove Holding B.V. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition, purchase price | $ 43,000,000 | |||||||||||
Goodwill expected to be deductible for income tax purpose | $ 0 | |||||||||||
Restructuring, integration, and other costs | 500,000 | 1,300,000 | ||||||||||
Product | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net sales | $ 213,600,000 | $ 231,800,000 | $ 253,400,000 | $ 239,700,000 | $ 240,900,000 | $ 256,200,000 | $ 271,300,000 | $ 266,500,000 | $ 938,500,000 | $ 1,034,900,000 | 979,900,000 | |
Product | W.A. Sanders Coldenhove Holding B.V. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net sales | $ 7,500,000 |
Acquisitions - Summary of Asset
Acquisitions - Summary of Assets Acquired and Liabilities Assumed Coldenhove Acquisition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2017 | |
Assets Acquired | |||||||
Acquired goodwill (a) | $ 84 | $ 83.1 | $ 84 | $ 85.3 | |||
Liabilities Assumed | |||||||
Acquisition related adjustments | (0.8) | $ 3.1 | $ 0 | 3.9 | 0 | ||
W.A. Sanders Coldenhove Holding B.V. | |||||||
Assets Acquired | |||||||
Cash and cash equivalents | 4.9 | ||||||
Accounts receivable | 4.7 | ||||||
Inventories (a) | 12.7 | ||||||
Deferred income taxes | 0.4 | ||||||
Prepaid and other current assets | 0.2 | ||||||
Property, plant and equipment (a) | 31.2 | ||||||
Non-amortizable intangible assets | 1.2 | ||||||
Amortizable intangible assets | 4.7 | ||||||
Acquired goodwill (a) | 10 | ||||||
Other assets | 0.1 | ||||||
Total assets acquired | 70.1 | ||||||
Liabilities Assumed | |||||||
Accounts payable | 4.1 | ||||||
Accrued expenses | 5.4 | ||||||
Contingent liability (b) | 0.8 | 0.8 | 2.3 | $ 2.3 | |||
Deferred income taxes (a) | 3.5 | ||||||
Noncurrent employee benefits | 4.9 | ||||||
Long-term debt | 1.8 | ||||||
Other noncurrent obligations | 0.1 | ||||||
Total liabilities assumed | 22.1 | ||||||
Net assets acquired | $ 48 | ||||||
Adjustment to inventory and fixed assets | $ 1.5 | ||||||
Adjustment to goodwill | $ 1.1 | ||||||
Separately recognized transactions | $ 2.4 | 2.4 | |||||
Acquisition related adjustments | $ 3.9 |
Acquisitions - Summary of Profo
Acquisitions - Summary of Proforma Information Coldenhove Acquisition (Details) - W.A. Sanders Coldenhove Holding B.V. $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ 1,019.8 |
Operating income | 108.9 |
Net income | $ 83 |
Earnings per basic common share | |
Basic earnings (loss) per share (dollars per share) | $ / shares | $ 4.90 |
Earnings per diluted common share | |
Diluted earnings (loss) per share (dollars per share) | $ / shares | $ 4.84 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in carrying value of goodwill (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill, net, beginning balance | $ 85,300,000 | $ 84,000,000 | $ 85,300,000 | |
Adjustment of goodwill acquired in the Coldenhove Acquisition | 1,100,000 | |||
Impairment related to the Brattleboro mill and associated office and research facilities | (100,000) | |||
Foreign currency translation | (900,000) | (2,300,000) | ||
Realignment of Other segment | 0 | |||
Goodwill, net, ending balance | $ 83,100,000 | 84,000,000 | $ 85,300,000 | |
Minimum | ||||
Goodwill [Line Items] | ||||
Intangible asset useful lives | 10 years | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Intangible asset useful lives | 15 years | |||
Technical Products | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 128,300,000 | $ 124,900,000 | 128,300,000 | |
Accumulated Impairment Loss, beginning of period | (49,600,000) | (47,400,000) | (49,600,000) | |
Goodwill, net, beginning balance | 78,700,000 | 77,500,000 | 78,700,000 | |
Adjustment of goodwill acquired in the Coldenhove Acquisition | 1,100,000 | |||
Foreign currency translation gross impact | (1,900,000) | (4,500,000) | ||
Foreign currency translation, accumulated impairment losses impact | 1,000,000 | 2,200,000 | ||
Foreign currency translation | (900,000) | (2,300,000) | ||
Realignment of Other segment, gross impact | 400,000 | |||
Realignment of Other segment, accumulated impairment | (100,000) | |||
Realignment of Other segment | 300,000 | |||
Goodwill gross, ending balance | 123,400,000 | 124,900,000 | 128,300,000 | |
Accumulated Impairment Loss, end of period | (46,500,000) | (47,400,000) | (49,600,000) | |
Goodwill, net, ending balance | 76,900,000 | 77,500,000 | 78,700,000 | |
Adjustment to goodwill | 1,100,000 | |||
Fine Paper and Packaging | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 6,200,000 | 6,200,000 | 6,200,000 | |
Goodwill, net, beginning balance | 6,200,000 | 6,200,000 | 6,200,000 | |
Goodwill gross, ending balance | 6,200,000 | 6,200,000 | 6,200,000 | |
Goodwill, net, ending balance | 6,200,000 | 6,200,000 | 6,200,000 | |
Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 400,000 | 400,000 | 400,000 | |
Accumulated Impairment Loss, beginning of period | (100,000) | |||
Goodwill, net, beginning balance | 400,000 | 300,000 | 400,000 | |
Impairment related to the Brattleboro mill and associated office and research facilities | (100,000) | |||
Realignment of Other segment, gross impact | (400,000) | |||
Realignment of Other segment, accumulated impairment | 100,000 | |||
Realignment of Other segment | (300,000) | |||
Goodwill gross, ending balance | 0 | 400,000 | 400,000 | |
Accumulated Impairment Loss, end of period | 0 | (100,000) | ||
Goodwill, net, ending balance | 0 | 300,000 | 400,000 | |
Goodwill Other Than Brattleboro Mill | ||||
Goodwill [Roll Forward] | ||||
Impairment related to the Brattleboro mill and associated office and research facilities | $ 0 | 0 | 0 | |
W.A. Sanders Coldenhove Holding B.V. | ||||
Goodwill [Roll Forward] | ||||
Goodwill, net, beginning balance | 10,000,000 | 10,000,000 | ||
Goodwill, net, ending balance | $ 10,000,000 | |||
Adjustment to goodwill | $ 1,100,000 | |||
Brattleboro Mill and Associated Research and Office Facilities | ||||
Goodwill [Roll Forward] | ||||
Impairment related to the Brattleboro mill and associated office and research facilities | $ (100,000) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Net identifiable intangible assets | $ 66.7 | $ 70.7 | |
Amortizable intangible assets, gross amount | 60.2 | 60.3 | |
Accumulated Amortization | (31.1) | (27.4) | |
Total gross intangible assets | 97.8 | 98.1 | |
Aggregate amortization expense of acquired intangible assets | 3.9 | 4.3 | $ 3.7 |
Estimated annual amortization expense | |||
2020 | 3.7 | ||
2021 | 3.5 | ||
2022 | 2.9 | ||
2023 | 2.7 | ||
2024 | 2.7 | ||
Trade names | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Non-amortizable, gross amount | 37.6 | 37.8 | |
Customer based intangibles | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, gross amount | 38.2 | 38.3 | |
Accumulated Amortization | (20.4) | (18.2) | |
Trade names and trademarks | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, gross amount | 5.1 | 5.1 | |
Accumulated Amortization | (2.7) | (2.5) | |
Acquired technology | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Amortizable intangible assets, gross amount | 16.9 | 16.9 | |
Accumulated Amortization | (8) | $ (6.7) | |
W.A. Sanders Coldenhove Holding B.V. | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Intangible assets-definite lived | 4.7 | ||
Non-amortizable trade names | 1.2 | ||
Total intangible assets | 5.9 | ||
W.A. Sanders Coldenhove Holding B.V. | Customer based intangibles | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Intangible assets-definite lived | $ 2.9 | ||
Estimated Useful Lives (Years) | 15 years | ||
W.A. Sanders Coldenhove Holding B.V. | Trade names and trademarks | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Intangible assets-definite lived | $ 0.5 | ||
Estimated Useful Lives (Years) | 10 years | ||
W.A. Sanders Coldenhove Holding B.V. | Acquired technology | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Intangible assets-definite lived | $ 1.3 | ||
Estimated Useful Lives (Years) | 4 years | ||
Technical Products | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Net identifiable intangible assets | 43.1 | ||
Fine Paper and Packaging | |||
Finite Lived and Indefinite Live Intangible Assets by Major Class [Line Items] | |||
Net identifiable intangible assets | $ 23.6 |
Income Taxes Income Taxes - Nar
Income Taxes Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | 13 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jun. 30, 2017 | |
Tax Credit Carryforward [Line Items] | |||||
Effective income tax rate (as a percent) | 16.70% | 9.50% | 12.40% | ||
Provisional income tax expense (benefit) | $ 6,500,000 | $ 6,600,000 | |||
Change in tax rate effect on deferred taxes | 10,300,000 | 11,200,000 | |||
Transition tax for accumulated foreign earnings, income tax expense (benefit) | 3,800,000 | $ 4,600,000 | |||
Measurement period tax benefit adjustment | $ 900,000 | ||||
Measurement period adjustment to transition tax | 800,000 | ||||
Measurement period adjustment | 8,100,000 | ||||
Change in statutory tax rate, amount | $ 0 | $ (1,600,000) | (9,700,000) | ||
Deferred income tax benefit | 1,600,000 | ||||
Transition tax for accumulated foreign earnings | 2,200,000 | ||||
Retained Earnings | |||||
Tax Credit Carryforward [Line Items] | |||||
Reclassification of the unrealized loss on available-for-sale securities (Note 10) | 10,900,000 | ||||
Federal Ministry of Finance, Germany | |||||
Tax Credit Carryforward [Line Items] | |||||
Elimination of foreign earnings repatriated | 4,100,000 | $ 4,100,000 | |||
Change in statutory tax rate, amount | $ 600,000 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 13 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jun. 30, 2017 | |
Difference between the effective income tax provision rate and the U.S. federal statutory income tax provision rate | ||||||||
U.S. federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 35.00% | |||||
U.S. state income taxes, net of federal income tax benefit (as a percent) | 1.40% | (1.00%) | 1.90% | |||||
Foreign tax rate differences (as a percent) | 3.60% | 6.80% | (3.40%) | |||||
Tax on foreign dividends (as a percent) | 0.009 | 0.036 | (0.003) | |||||
Foreign financing structure (as a percent) | (3.00%) | (5.10%) | (2.20%) | |||||
Change in statutory rates (as a percent) | 0.00% | (3.90%) | (10.60%) | |||||
Research and development and other tax credits (as a percent) | (6.20%) | (10.50%) | (3.30%) | |||||
Excess tax benefits from stock compensation (as a percent) | (0.20%) | (2.90%) | (4.90%) | |||||
Uncertain income tax positions (as a percent) | (1.90%) | 2.00% | 0.80% | |||||
Other differences - net (as a percent) | 1.10% | (0.50%) | (0.60%) | |||||
Effective income tax rate (as a percent) | 16.70% | 9.50% | 12.40% | |||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||||||
U.S. federal statutory income tax rate | $ 14,000,000 | $ 8,600,000 | $ 32,100,000 | |||||
U.S. state income taxes, net of federal income tax benefit | 900,000 | (400,000) | 1,700,000 | |||||
Foreign tax rate differences | 2,400,000 | 2,800,000 | (3,100,000) | |||||
Tax on foreign dividends | 600,000 | 1,500,000 | (300,000) | |||||
Foreign financing structure | (2,000,000) | (2,100,000) | (2,000,000) | |||||
Change in statutory tax rate, amount | 0 | 1,600,000 | 9,700,000 | |||||
Research and development and other tax credits | (4,100,000) | (4,300,000) | (3,000,000) | |||||
Excess tax benefits from stock compensation | (100,000) | (1,200,000) | (4,500,000) | |||||
Uncertain income tax positions | (1,300,000) | 800,000 | 700,000 | |||||
Other differences, net | 700,000 | (200,000) | (500,000) | |||||
Total provision for income taxes | 11,100,000 | 3,900,000 | 11,400,000 | |||||
Transition tax for accumulated foreign earnings, income tax expense (benefit) | 3,800,000 | $ 4,600,000 | ||||||
Measurement period adjustment to transition tax | 800,000 | |||||||
Change in tax rate effect on deferred taxes | 10,300,000 | $ 11,200,000 | ||||||
Measurement period tax benefit adjustment | (900,000) | |||||||
Impairment loss | $ (2,900,000) | $ 2,000,000 | $ 32,000,000 | $ 0 | 31,100,000 | 0 | ||
Federal Ministry of Finance, Germany | ||||||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||||||
Change in statutory tax rate, amount | (600,000) | |||||||
Interest limitation | $ 4,100,000 | $ 4,100,000 | ||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Brattleboro Mill and Associated Research and Office Facilities | ||||||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||||||
Impairment loss | 31,100,000 | |||||||
Netherlands | ||||||||
Difference between the effective income tax provision and the U.S. federal statutory income tax provision | ||||||||
Change in statutory tax rate, amount | $ 700,000 | $ 700,000 |
Income Taxes - U.S. and Foreign
Income Taxes - U.S. and Foreign Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) from continuing operations before income taxes: | |||
U.S. | $ 30.1 | $ (1.7) | $ 53.6 |
Foreign | 36.4 | 42.8 | 38.1 |
Total | 66.5 | 41.1 | 91.7 |
Current: | |||
Federal | 0.3 | (3) | 4.7 |
State | (0.2) | 0.1 | 0.5 |
Foreign | 7.6 | 8.7 | 6.4 |
Total current income tax provision | 7.7 | 5.8 | 11.6 |
Deferred: | |||
Federal | 3 | (0.6) | (1.8) |
State | 0.8 | (0.2) | (0.1) |
Foreign | (0.4) | (1.1) | 1.7 |
Total deferred income tax provision | 3.4 | (1.9) | (0.2) |
Total provision for income taxes | $ 11.1 | $ 3.9 | $ 11.4 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset/Liability (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Deferred income tax assets (liabilities) | |||
Net deferred income tax assets | $ 13.4 | $ 16.4 | |
Deferred income tax assets (liabilities) | |||
Net deferred income tax liabilities | (12.9) | (14.4) | |
Retained earnings | 268.1 | 243.2 | |
Undistributed earnings of foreign subsidiaries | 48.8 | 58.4 | |
NOLs | |||
Deferred tax asset related to net operating losses | 2.7 | ||
Pre-acquisition built-in loss carryforward | 7.6 | ||
Pre-acquisition built-in carryovers, deferred tax asset | 1.6 | ||
Alternative minimum tax credit carryovers | 0.7 | ||
Domestic Tax Authority | |||
Deferred income tax assets (liabilities) | |||
Research and development tax credits | 21.5 | 20 | |
Employee benefits | 15.9 | 16.5 | |
Net operating losses and other tax credits | 6.4 | 7.4 | |
Lease liabilities | 3.1 | ||
Accrued liabilities | 2.1 | 2.3 | |
Interest limitation | 0 | 1.7 | |
Inventories | 1 | ||
Other | 0.5 | 0.5 | |
Net deferred income tax assets | 13.4 | 16.4 | |
Deferred income tax assets (liabilities) | |||
Accelerated depreciation | (28) | (28.8) | |
Intangibles | (4.7) | (4.2) | |
Inventories | (0.6) | ||
Lease right-of-use assets | (2.8) | ||
State and Local Jurisdiction | |||
NOLs | |||
Net operating losses | 44.1 | ||
Operating loss carryfowards, valuation allowance | 0.5 | 0.5 | |
Foreign Tax Authority | |||
Deferred income tax assets (liabilities) | |||
Employee benefits | 7.5 | 6.3 | |
Lease liabilities | 0.7 | ||
Deferred income tax assets (liabilities) | |||
Accelerated depreciation | (16.7) | (16.6) | |
Intangibles | (3) | (3.2) | |
Inventories | (0.9) | (1) | |
Lease right-of-use assets | (0.7) | ||
Net operating losses | 0.2 | 0.2 | |
Other | 0 | (0.1) | |
Net deferred income tax liabilities | (12.9) | $ (14.4) | |
Research Tax Credit Carryforward | Domestic Tax Authority | |||
NOLs | |||
R & D credits subject to expiration | 21 | ||
Research Tax Credit Carryforward | State and Local Jurisdiction | |||
NOLs | |||
R & D credits subject to expiration | $ 7.5 | ||
Accounting Standards Update 2016-06 | Domestic Tax Authority | |||
Deferred income tax assets (liabilities) | |||
Deferred income tax assets | $ 2.9 | ||
Retained earnings | 2.9 | ||
Accounting Standards Update 2016-06 | Federal Ministry of Finance, Germany | |||
Deferred income tax assets (liabilities) | |||
Prepaid Taxes | 3.7 | ||
Retained earnings | $ (3.7) |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | $ 10.1 | $ 10 | $ 10.3 |
Increases in prior period tax positions | 0.7 | 0.1 | 0.4 |
Decreases in prior period tax positions | (1.2) | 0 | (1) |
Increases in current period tax positions | 0.6 | 0.8 | 0.7 |
Decreases due to lapse of statutes of limitations | (1.5) | (0.6) | (1) |
Increases due to change in tax rates | 0 | 0.1 | 0.4 |
Decreases due to settlements with tax authorities | (0.9) | (0.2) | 0 |
Increases from foreign exchange rate changes | 0 | 0.2 | |
Decreases from foreign exchange rate changes | (0.1) | ||
Balance at December 31, | 7.8 | 10.1 | 10 |
Benefit for uncertain tax positions, if recognized | 7.8 | ||
Accrued for interest and penalties related to uncertain income tax positions | 0.1 | 0.1 | |
Deferred Tax Asset | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | 7.9 | 2.3 | |
Balance at December 31, | 7.3 | 7.9 | 2.3 |
Deferred Tax Liability | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | 2.2 | 5.3 | |
Balance at December 31, | 2.2 | 5.3 | |
Other Noncurrent Liabilities | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Balance at January 1, | 2.4 | ||
Balance at December 31, | 0.5 | $ 2.4 | |
Foreign Tax Authority | |||
Reconciliation of the total amounts of uncertain tax positions | |||
Foreign tax credits set to expire | $ 5.2 | $ 2.2 |
Debt - Summary of Long Term Deb
Debt - Summary of Long Term Debt (Details) € in Millions, $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Sep. 30, 2018 | May 31, 2013 |
Debt Instrument [Line Items] | |||||
Total debt | $ 200.8 | $ 239.1 | |||
Deferred financing costs | (3) | (3.5) | |||
Less: Debt payable within one year | 2.6 | 2.3 | |||
Long-term debt | $ 198.2 | 236.8 | |||
Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | |||||
Debt Instrument [Line Items] | |||||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | 5.25% | ||
Total debt | $ 175 | 175 | |||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2023 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 21.6 | 57.9 | |||
Secured debt | Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 | |||||
Debt Instrument [Line Items] | |||||
Fixed rate of interest (as a percent) | 2.45% | 2.45% | |||
Total debt | $ 3.5 | € 3.1 | 4.8 | ||
Secured debt | Third German Loan Agreement (1.45% fixed rate) | |||||
Debt Instrument [Line Items] | |||||
Fixed rate of interest (as a percent) | 1.45% | 1.45% | 1.45% | ||
Total debt | $ 3.7 | € 3.3 | $ 4.9 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May 31, 2013USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)installment | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€)installment | Sep. 30, 2018 | May 31, 2018EUR (€) | Jan. 31, 2013EUR (€) | |
Amended and Restated Secured Revolving Credit Facility | ||||||||
Total debt | $ 239,100,000 | $ 200,800,000 | ||||||
U.S Revolving Credit Facility | Letter of Credit | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Maximum borrowing capacity | 20,000,000 | |||||||
German Revolving Credit Facility | Letter of Credit | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Maximum borrowing capacity | $ 5,000,000 | |||||||
Global Revolving Credit Facilities (variable rates) due December 2023 | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Proceeds from borrowings | $ 293,000,000 | |||||||
Global Revolving Credit Facilities (variable rates) due December 2023 | W.A. Sanders Coldenhove Holding B.V. | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Proceeds from borrowings | $ 31,000,000 | |||||||
Senior notes | 2021 Senior Notes (5.25% fixed rate) due May 2021 | ||||||||
2021 Senior Notes | ||||||||
Total term of notes | 8 years | |||||||
Face amount | $ 175,000,000 | |||||||
Fixed rate of interest (as a percent) | 5.25% | 5.25% | 5.25% | |||||
Maximum cash dividends allowed to be paid | $ 25,000,000 | |||||||
Net leverage ratio, threshold in which dividends can be issued and shares may be repurchased without limitation | 2.5 | |||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Total debt | $ 175,000,000 | $ 175,000,000 | ||||||
Senior notes | 2014 Senior Notes (7.375% fixed rate) retired June 2013 | ||||||||
2021 Senior Notes | ||||||||
Total term of notes | 10 years | |||||||
Fixed rate of interest (as a percent) | 7.375% | |||||||
Amount of debt redeemed or repaid | $ 70,000,000 | |||||||
Secured debt | Letter of Credit | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Total debt outstanding | 500,000 | |||||||
Secured debt | Revolving bank credit facility (variable rates) due November 2017 | ||||||||
2021 Senior Notes | ||||||||
Amount of debt redeemed or repaid | $ 56,000,000 | |||||||
Secured debt | U.S Revolving Credit Facility | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Maximum borrowing capacity | 150,000,000 | |||||||
Secured debt | German Revolving Credit Facility | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Maximum borrowing capacity | 75,000,000 | |||||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2023 | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Maximum borrowing capacity | 350,000,000 | |||||||
Maximum borrowing capacity that may be increased | $ 125,000,000 | |||||||
Facility fee on unused amount of Revolver commitment (as a percent) | 0.25% | |||||||
Fixed charge coverage ratio required | 1.1 | |||||||
Period to be maintained for stock repurchase or dividend payment | 60 days | |||||||
Period to be maintained for available borrowing capacity | 60 days | |||||||
Borrowing availability to determine stock repurchases and dividend payments | $ 25,000,000 | |||||||
Percentage of aggregate commitments to determine the stock repurchases and dividend payments | 12.50% | |||||||
Total debt outstanding | $ 21,600,000 | |||||||
Available credit | $ 173,500,000 | |||||||
Weighted-average interest rate (as a percent) | 2.90% | 1.30% | 1.30% | |||||
Total debt | $ 57,900,000 | $ 21,600,000 | ||||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2023 | Minimum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Reference rate | 0.00% | |||||||
Borrowing availability for not achieving the fixed charge coverage ratio | $ 35,000,000 | |||||||
Percentage of aggregate commitments for not maintaining fixed charge coverage ratio | 17.50% | |||||||
Secured debt | Global Revolving Credit Facilities (variable rates) due December 2023 | Maximum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Borrowing availability for not achieving the fixed charge coverage ratio | $ 20,000,000 | |||||||
Percentage of aggregate commitments for not maintaining fixed charge coverage ratio | 10.00% | |||||||
Secured debt | Fourth Amended and Restated Credit Agreement | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Borrowing availability to determine stock repurchases and dividend payments | $ 28,000,000 | |||||||
Percentage of aggregate commitments to determine the stock repurchases and dividend payments | 12.50% | |||||||
Secured debt | Fourth Amended and Restated Credit Agreement | Minimum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Borrowing availability to determine stock repurchases and dividend payments | $ 25,000,000 | |||||||
Secured debt | Second German Loan Agreement (2.45% fixed rate) due in quarterly installments ending September 2022 | ||||||||
2021 Senior Notes | ||||||||
Fixed rate of interest (as a percent) | 2.45% | 2.45% | ||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Maximum borrowing capacity | € | € 9,000,000 | |||||||
Interest rate on amounts outstanding (as a percent) | 2.45% | 2.45% | ||||||
Total debt | 4,800,000 | $ 3,500,000 | € 3,100,000 | |||||
Secured debt | Third German Loan Agreement (1.45% fixed rate) | ||||||||
2021 Senior Notes | ||||||||
Face amount | € | € 5,000,000 | |||||||
Fixed rate of interest (as a percent) | 1.45% | 1.45% | 1.45% | |||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Total debt | 4,900,000 | $ 3,700,000 | € 3,300,000 | |||||
Number of quarterly installments | installment | 13 | 13 | ||||||
Proceeds from German government subsidy | $ 900,000 | |||||||
LIBOR | U.S Revolving Credit Facility | Minimum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Debt instrument basis spread on variable rate (as a percent) | 0.00% | |||||||
LIBOR | U.S Revolving Credit Facility | Maximum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Debt instrument basis spread on variable rate (as a percent) | 0.25% | |||||||
LIBOR | German Revolving Credit Facility | Minimum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.25% | |||||||
LIBOR | German Revolving Credit Facility | Maximum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.75% | |||||||
LIBOR | Secured debt | German Revolving Credit Facility | Minimum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.25% | |||||||
LIBOR | Secured debt | German Revolving Credit Facility | Maximum | ||||||||
Amended and Restated Secured Revolving Credit Facility | ||||||||
Debt instrument basis spread on variable rate (as a percent) | 1.75% |
Debt - Summary of Variable Rate
Debt - Summary of Variable Rates (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Prime rate | U.S Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.00% |
Prime rate | U.S Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.25% |
Federal funds rate | U.S Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.00% |
Federal funds rate | U.S Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.25% |
LIBOR | U.S Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.00% |
LIBOR | U.S Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 0.25% |
LIBOR | German Revolving Credit Facility | Minimum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 1.25% |
LIBOR | German Revolving Credit Facility | Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument basis spread on variable rate (as a percent) | 1.75% |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt payments | |
2020 | $ 2.6 |
2021 | 177.8 |
2022 | 1.8 |
2023 | 21.6 |
2024 | 0 |
Thereafter | 0 |
Total | $ 203.8 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2019employee | Dec. 31, 2018USD ($)employee | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)person | Dec. 31, 2019USD ($)person | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($) | Oct. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Curtailment gain | $ 1,600,000 | |||||||
Number of hourly employees | employee | 30 | 375 | 375 | |||||
Number of regular full-time employees | 115 | 690 | 2,324 | 2,324 | 690 | |||
Threshold period of service for participation in new pension plan | 25 years | 25 years | ||||||
Aggregate contributions to qualified and non-qualified pension trusts and payments of pension benefits for unfunded pension plans | $ 9,000,000 | $ 9,000,000 | ||||||
Supplemental Employee Retirement Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Pension curtailment (gain)/settlement charge, net of plan payments (Note 8) | 100,000 | $ 800,000 | $ 600,000 | |||||
Payment for pension and other postretirement benefits | 500,000 | 2,200,000 | 1,300,000 | |||||
Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Pension curtailment (gain)/settlement charge, net of plan payments (Note 8) | 600,000 | |||||||
Assets for plan benefits, defined benefit plan | 2,000,000 | 2,000,000 | ||||||
Curtailment gain | 1,600,000 | $ 0 | $ 0 | |||||
Estimated net actuarial loss | 5,300,000 | 5,300,000 | ||||||
Estimated prior service cost (credit) | 300,000 | $ 300,000 | ||||||
Expected long-term return on plan assets (as a percent) | 5.91% | 5.78% | 6.31% | |||||
Amount of plan assets invested in the entity's securities | $ 0 | 0 | $ 0 | $ 0 | $ 0 | |||
Pension Benefits | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 6.00% | |||||||
Pension Benefits | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 5.00% | |||||||
Postretirement Benefits Other than Pensions | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Pension curtailment (gain)/settlement charge, net of plan payments (Note 8) | $ 0 | 0 | 0 | |||||
Curtailment gain | 0 | $ 0 | $ 0 | |||||
Estimated net actuarial loss | 600,000 | 600,000 | ||||||
Estimated prior service cost (credit) | 0 | $ 0 | ||||||
Expected long-term return on plan assets (as a percent) | 0.00% | 0.00% | 0.00% | |||||
Defined contribution retirement plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined contribution plan, cost | $ 2,000,000 | $ 2,300,000 | $ 2,500,000 | |||||
Supplemental retirement contribution plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined contribution plan, cost | 400,000 | 0 | 400,000 | |||||
Unfunded obligation | $ 1,700,000 | $ 1,700,000 | 1,700,000 | 1,700,000 | ||||
Voluntary contribution investment plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined contribution plan, cost | $ 4,700,000 | 4,000,000 | $ 3,700,000 | |||||
Equity securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 33.00% | 33.00% | ||||||
Equity securities | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 10.00% | |||||||
Equity securities | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 8.00% | |||||||
Equity securities | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 33.00% | 33.00% | ||||||
Equity securities | Pension Benefits | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 38.00% | 38.00% | ||||||
Equity securities | Pension Benefits | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 28.00% | 28.00% | ||||||
Hedge Funds | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 8.00% | 8.00% | ||||||
Hedge Funds | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 7.00% | |||||||
Hedge Funds | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 5.00% | |||||||
Hedge Funds | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 8.00% | 8.00% | ||||||
Hedge Funds | Pension Benefits | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 13.00% | 13.00% | ||||||
Hedge Funds | Pension Benefits | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 3.00% | 3.00% | ||||||
U.S. and Non-U.S. Fixed Income Securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 59.00% | 59.00% | ||||||
U.S. and Non-U.S. Fixed Income Securities | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 5.00% | |||||||
U.S. and Non-U.S. Fixed Income Securities | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected long-term return on plan assets (as a percent) | 3.00% | |||||||
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 59.00% | 59.00% | ||||||
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 64.00% | 64.00% | ||||||
U.S. and Non-U.S. Fixed Income Securities | Pension Benefits | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Asset allocation (as a percent) | 54.00% | 54.00% | ||||||
Prepaid Expenses and Other Current Assets | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Assets for plan benefits, defined benefit plan | $ 1,400,000 | $ 1,400,000 | ||||||
Other assets | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Assets for plan benefits, defined benefit plan | 600,000 | 600,000 | ||||||
Level 1 | Other assets | Fair Value | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Fair value of marketable securities | 4,000,000 | 4,000,000 | ||||||
Pace Industry Union-Management Pension Fund | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer plans withdrawal obligation | $ 1,000,000 | $ 1,000,000 | ||||||
Multiemployer plans minimum contribution | $ 100,000 | |||||||
Multiemployer plans minimum contribution period | 20 years | |||||||
Multiemployer plans accumulated funding deficiency demand | $ 1,300,000 | |||||||
Multiemployer pension plan expense | $ 100,000 | |||||||
Pace Industry Union-Management Pension Fund | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Matching contribution (as a percent) | 5.00% | |||||||
Measurement Input, Risk Free Interest Rate | Pace Industry Union-Management Pension Fund | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer plans withdrawal obligation measurement input | 0.057 | |||||||
Netherlands | Dutch Defined Benefit Plan | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Curtailment gain | $ 1,600,000 | $ 1,600,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Benefit Plan Obligations, Plan Assets, Funded Status, and Net Liability Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Benefit Obligation: | ||||||
Plan curtailment | $ (0.1) | |||||
Amounts recognized in statement of financial position consist of: | ||||||
Noncurrent liabilities | $ (93.1) | $ (92.9) | ||||
Curtailment gain | 1.6 | |||||
Pension Benefits | ||||||
Change in Benefit Obligation: | ||||||
Benefit obligation at beginning of year | $ 430.7 | $ 463.9 | ||||
Service cost | 5 | 6.7 | $ 5.5 | |||
Interest cost | 16.2 | 15.8 | 15 | |||
Currency | (1.2) | (4.6) | ||||
Actuarial (gain) loss | 55 | (29.3) | ||||
Benefit payments from plans | (21.1) | (20.3) | ||||
Plan curtailment | (2.8) | 0 | ||||
Settlement payments | (0.5) | (2.2) | ||||
Other | 1.1 | 0.7 | ||||
Benefit obligation at end of year | 482.4 | 482.4 | 430.7 | 463.9 | ||
Change in Plan Assets: | ||||||
Fair value of plan assets at beginning of year | 375.2 | 400.4 | ||||
Actual gain (loss) on plan assets | 62.1 | (18.9) | ||||
Employer contributions | 8.3 | 18.2 | ||||
Currency | (0.5) | (2.7) | ||||
Benefit payments | (21.1) | (20.3) | ||||
Settlement payments | (0.5) | (2.2) | ||||
Other | 0.6 | 0.7 | ||||
Fair value of plan assets at end of year | 424.1 | 424.1 | 375.2 | 400.4 | ||
Reconciliation of Funded Status | ||||||
Fair value of plan assets | 424.1 | 424.1 | 400.4 | 400.4 | 424.1 | 375.2 |
Projected benefit obligation | 482.4 | 430.7 | 430.7 | 463.9 | 482.4 | 430.7 |
Net liability recognized in statement of financial position | (58.3) | (55.5) | ||||
Amounts recognized in statement of financial position consist of: | ||||||
Current liabilities | (1.2) | (1.7) | ||||
Noncurrent liabilities | (57.1) | (53.8) | ||||
Net amount recognized | (58.3) | (55.5) | ||||
Curtailment gain | 1.6 | 0 | 0 | |||
Postretirement Benefits Other than Pensions | ||||||
Change in Benefit Obligation: | ||||||
Benefit obligation at beginning of year | 42.4 | 44 | ||||
Service cost | 1.2 | 1.1 | 1.2 | |||
Interest cost | 1.5 | 1.4 | 1.4 | |||
Currency | 0.1 | (0.3) | ||||
Actuarial (gain) loss | (0.7) | 1.1 | ||||
Benefit payments from plans | (4.8) | (4.9) | ||||
Plan curtailment | 0 | 0 | ||||
Settlement payments | 0 | 0 | ||||
Other | 0 | 0 | ||||
Benefit obligation at end of year | 39.7 | 39.7 | 42.4 | 44 | ||
Change in Plan Assets: | ||||||
Fair value of plan assets at beginning of year | 0 | 0 | ||||
Actual gain (loss) on plan assets | 0 | 0 | ||||
Employer contributions | 0 | 0 | ||||
Currency | 0 | 0 | ||||
Benefit payments | 0 | 0 | ||||
Settlement payments | 0 | 0 | ||||
Other | 0 | 0 | ||||
Fair value of plan assets at end of year | 0 | 0 | 0 | 0 | ||
Reconciliation of Funded Status | ||||||
Fair value of plan assets | 0 | 0 | 0 | 0 | 0 | 0 |
Projected benefit obligation | 39.7 | 42.4 | 42.4 | 44 | 39.7 | 42.4 |
Net liability recognized in statement of financial position | (39.7) | (42.4) | ||||
Amounts recognized in statement of financial position consist of: | ||||||
Current liabilities | (5.6) | (5.2) | ||||
Noncurrent liabilities | (34.1) | (37.2) | ||||
Net amount recognized | $ (39.7) | $ (42.4) | ||||
Curtailment gain | 0 | $ 0 | 0 | |||
Level 3 | Insurance Contracts Acquired in Business Combination | W.A. Sanders Coldenhove Holding B.V. | ||||||
Amounts recognized in statement of financial position consist of: | ||||||
Net Purchases/ (Settlements) | $ 46.8 | |||||
Netherlands | Dutch Defined Benefit Plan | Pension Benefits | ||||||
Amounts recognized in statement of financial position consist of: | ||||||
Curtailment gain | $ 1.6 | $ 1.6 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Amounts Recognized in AOCI and Disaggregated Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total recognized in AOCI | $ 94.3 | $ 89.6 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated actuarial loss | 117.8 | 110.1 | |
Prior service cost | 0.9 | 0.7 | |
Total recognized in AOCI | 118.7 | 110.8 | |
Assets Exceed ABO | |||
Projected benefit obligation | 0 | 130.3 | |
Accumulated benefit obligation | 0 | 125.4 | |
Fair value of plan assets | 0 | 128.8 | |
ABO Exceed Assets | |||
Projected benefit obligation | 482.4 | 300.4 | |
Accumulated benefit obligation | 478.3 | 298.5 | |
Fair value of plan assets | 424.1 | 246.4 | |
Total | |||
Projected benefit obligation | 482.4 | 430.7 | $ 463.9 |
Accumulated benefit obligation | 478.3 | 423.9 | |
Fair value of plan assets | 424.1 | 375.2 | 400.4 |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated actuarial loss | 7.2 | 8.7 | |
Prior service cost | 0 | 0 | |
Total recognized in AOCI | 7.2 | 8.7 | |
Total | |||
Projected benefit obligation | 39.7 | 42.4 | 44 |
Fair value of plan assets | $ 0 | $ 0 | $ 0 |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment gain | $ (1.6) | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5 | $ 6.7 | $ 5.5 | |
Interest cost | 16.2 | 15.8 | 15 | |
Expected return on plan assets | (21.1) | (21) | (19.9) | |
Recognized net actuarial loss | 4.9 | 5.2 | 5.6 | |
Amortization of prior service cost (credit) | 0.2 | 0.2 | 0.2 | |
Curtailment gain | (1.6) | 0 | 0 | |
Amount of settlement loss recognized | 0.6 | |||
Net periodic benefit cost | 3.7 | 7.7 | 7 | |
Postretirement Benefits Other than Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1.2 | 1.1 | 1.2 | |
Interest cost | 1.5 | 1.4 | 1.4 | |
Expected return on plan assets | 0 | 0 | 0 | |
Recognized net actuarial loss | 0.9 | 0.8 | 0.3 | |
Amortization of prior service cost (credit) | 0 | (0.2) | (0.2) | |
Curtailment gain | 0 | 0 | 0 | |
Amount of settlement loss recognized | 0 | 0 | 0 | |
Net periodic benefit cost | $ 3.6 | $ 3.1 | $ 2.7 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Other Changes in Plan Assets and Benefit Obligations Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit expense | $ 3.7 | $ 7.7 | $ 7 |
Accumulated actuarial gain (loss) | 7.7 | 4.2 | 10.1 |
Prior service cost (credit) | 0.2 | (0.1) | (0.1) |
Total recognized in other comprehensive income (loss) | 7.9 | 4.1 | 10 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 11.6 | 11.8 | 17 |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit expense | 3.6 | 3.1 | 2.7 |
Accumulated actuarial gain (loss) | (1.5) | 0.1 | 3.7 |
Prior service cost (credit) | 0 | 0.2 | 0.2 |
Total recognized in other comprehensive income (loss) | (1.5) | 0.3 | 3.9 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 2.1 | $ 3.4 | $ 6.6 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Weighted-Average Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.98% | 3.94% | |
Rate of compensation increase | 2.05% | 2.34% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.78% | 3.65% | 4.18% |
Expected long-term return on plan assets | 5.91% | 5.78% | 6.31% |
Rate of compensation increase | 2.33% | 2.44% | 2.49% |
Postretirement Benefits Other than Pensions | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.68% | 3.84% | |
Rate of compensation increase | 0.00% | 0.00% | |
Initial healthcare cost trend rate | 6.10% | 6.80% | |
Ultimate healthcare cost trend rate | 4.50% | 4.50% | 4.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.84% | 3.42% | 3.89% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 2.50% | 2.50% | 0.00% |
Initial healthcare cost trend rate | 6.50% | 6.80% | 7.00% |
Ultimate healthcare cost trend rate | 4.50% | 4.50% | 4.50% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Pension Plan Assets Allocation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Equity securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 33.00% | |
Hedge Funds | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 8.00% | |
Debt securities / Fixed Income | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 59.00% | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Pension Benefits | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 33.00% | 33.00% |
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 33.00% | |
Pension Benefits | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 8.00% | 8.00% |
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 8.00% | |
Pension Benefits | Debt securities / Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 59.00% | 58.00% |
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 59.00% | |
Pension Benefits | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 0.00% | 1.00% |
Minimum | Pension Benefits | Equity securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 28.00% | |
Minimum | Pension Benefits | Hedge Funds | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 3.00% | |
Minimum | Pension Benefits | Debt securities / Fixed Income | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 54.00% | |
Maximum | Pension Benefits | Equity securities | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 38.00% | |
Maximum | Pension Benefits | Hedge Funds | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 13.00% | |
Maximum | Pension Benefits | Debt securities / Fixed Income | ||
Target investment allocation and permissible allocation range for plan assets | ||
Strategic Target | 64.00% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Future service benefit payments | |
2020 | $ 22.3 |
2021 | 27.1 |
2022 | 23.3 |
2023 | 24.2 |
2024 | 25 |
Years 2025-2029 | 129.3 |
Postretirement Benefits Other than Pensions | |
Future service benefit payments | |
2020 | 5.6 |
2021 | 5 |
2022 | 4.6 |
2023 | 4.2 |
2024 | 3.9 |
Years 2025-2029 | $ 13.7 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits- Health Care Cost Trends (Details) - Postretirement Benefits Other than Pensions $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on total of service and interest cost components, increase | $ 0 |
Effect on total of service and interest cost components, decrease | 0 |
Effect on post-retirement benefit other than pension obligation, increase | 0.2 |
Effect on post-retirement benefit other than pension obligation, decrease | $ (0.2) |
Stock Compensation Plans - Omni
Stock Compensation Plans - Omnibus Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2004 | |
Stock Compensation Plans | ||||
Par value of shares of common stock (in dollars per share) | $ 0.01 | $ 0.01 | ||
Stock-based compensation expense and related income tax benefits | ||||
Stock-based compensation expense | $ 5.6 | $ 4 | $ 6.4 | |
Income tax benefit | (1.4) | (1) | (2.5) | |
Stock-based compensation, net of income tax benefit | 4.2 | 3 | 3.9 | |
Compensation costs related to equity awards and amounts recognized | ||||
Compensation expense recognized | $ (5.6) | (4) | $ (6.4) | |
Stock options awarded | ||||
Nonqualified stock options granted (in shares) | 1,272 | |||
Per share weighted-average grant date fair value (in dollars per share) | $ 10.32 | |||
Number of Stock Options | ||||
Add: Options granted (in shares) | 1,272 | |||
Stock Options | ||||
Stock Compensation Plans | ||||
Expiration period | 10 years | |||
Vesting period | 3 years | |||
Stock-based compensation expense and related income tax benefits | ||||
Stock-based compensation expense | $ 0.4 | |||
Compensation costs related to equity awards and amounts recognized | ||||
Unrecognized compensation cost at the beginning of the period | 0.6 | |||
Grant date fair value current year grants | 0 | |||
Compensation expense recognized | (0.4) | |||
Unrecognized compensation cost at the end of the period | $ 0.2 | 0.6 | ||
Expected amortization period | 1 year 1 month 6 days | |||
Performance Shares and RSUs | ||||
Stock-based compensation expense and related income tax benefits | ||||
Stock-based compensation expense | $ 5.2 | |||
Compensation costs related to equity awards and amounts recognized | ||||
Unrecognized compensation cost at the beginning of the period | 2.1 | |||
Grant date fair value current year grants | 5.5 | |||
Compensation expense recognized | (5.2) | |||
Unrecognized compensation cost at the end of the period | $ 2.4 | $ 2.1 | ||
Expected amortization period | 1 year 7 months 6 days | |||
Options | ||||
Fair value assumptions | ||||
Expected term in years | 5 years | 5 years 8 months 12 days | 5 years 9 months 18 days | |
Risk free interest rate (as a percent) | 1.80% | 2.50% | 2.10% | |
Volatility (as a percent) | 23.10% | 21.50% | 22.90% | |
Dividend yield (as a percent) | 3.00% | 3.00% | 3.00% | |
Nonqualified stock options | ||||
Stock options awarded | ||||
Nonqualified stock options granted (in shares) | 1,272 | 108,420 | 144,089 | |
Per share weighted-average exercise price (in dollars per share) | $ 66.59 | $ 93.22 | $ 82.11 | |
Per share weighted-average grant date fair value (in dollars per share) | $ 10.32 | $ 15 | $ 13.54 | |
Number of Stock Options | ||||
Add: Options granted (in shares) | 1,272 | 108,420 | 144,089 | |
Weighted-Average Exercise Price | ||||
Add: Options granted (in dollars per share) | $ 66.59 | $ 93.22 | $ 82.11 | |
RSUs | Non-employee members of the board of directors | ||||
Stock Compensation Plans | ||||
Vesting period | 1 year | |||
Omnibus Plan | ||||
Stock Compensation Plans | ||||
Shares of common stock reserved for future issuance | 3,500,000 | |||
Par value of shares of common stock (in dollars per share) | $ 0.01 | |||
Stock options awarded | ||||
Nonqualified stock options granted (in shares) | 1,272 | |||
Per share weighted-average exercise price (in dollars per share) | $ 66.59 | |||
Number of Stock Options | ||||
Options outstanding at the beginning of the period (in shares) | 451,081 | |||
Add: Options granted (in shares) | 1,272 | |||
Less: Options exercised (in shares) | 34,073 | |||
Less: Options forfeited/cancelled (in shares) | 1,732 | |||
Options outstanding at the end of the period (in shares) | 416,548 | 451,081 | ||
Weighted-Average Exercise Price | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ 67.46 | |||
Add: Options granted (in dollars per share) | 66.59 | |||
Less: Options exercised (in dollars per share) | 35.26 | |||
Less: Options forfeited/cancelled (in dollars per share) | 71.89 | |||
Options outstanding at the end of the period (in dollars per share) | $ 70.08 | $ 67.46 | ||
Omnibus Plan 2018 | ||||
Stock Compensation Plans | ||||
Shares of common stock reserved for future issuance | 1,091,000 | |||
Additional common stock reserved for issuance subject to shareholders approval (in shares) | 800,000 | |||
Reduction in number of shares available for future issuance (in shares) | 177,000 |
Stock Compensation Plans - Outs
Stock Compensation Plans - Outstanding and Exercisable Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options Exercisable | |||
Closing market price for common stock (in dollars per share) | $ 70.43 | ||
Intrinsic value, exercises in the period | $ 1.2 | $ 5.2 | $ 11.5 |
Stock Options | |||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 416,548 | ||
Weighted- Average Remaining Contractual Life (Years) | 6 years 3 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 70.08 | ||
Aggregate Intrinsic Value | $ 3.9 | ||
Options Exercisable | |||
Number of Options (in shares) | 318,029 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 64.36 | ||
Aggregate Intrinsic Value | $ 3.9 | ||
$13.38 — $22.44 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 13.38 | ||
Exercise price, high end of range (in dollars per share) | $ 22.44 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 8,745 | ||
Weighted- Average Remaining Contractual Life (Years) | 9 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 18.72 | ||
Aggregate Intrinsic Value | $ 0.4 | ||
Options Exercisable | |||
Number of Options (in shares) | 8,745 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 18.72 | ||
Aggregate Intrinsic Value | $ 0.4 | ||
$24.09 — $42.82 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 24.09 | ||
Exercise price, high end of range (in dollars per share) | $ 42.82 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 56,380 | ||
Weighted- Average Remaining Contractual Life (Years) | 3 years 3 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 34.28 | ||
Aggregate Intrinsic Value | $ 2 | ||
Options Exercisable | |||
Number of Options (in shares) | 56,380 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 34.28 | ||
Aggregate Intrinsic Value | $ 2 | ||
$48.19 — $74.20 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 48.19 | ||
Exercise price, high end of range (in dollars per share) | $ 74.20 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 121,703 | ||
Weighted- Average Remaining Contractual Life (Years) | 5 years 9 months 18 days | ||
Weighted-Average Exercise Price (in dollars per share) | $ 58.45 | ||
Aggregate Intrinsic Value | $ 1.5 | ||
Options Exercisable | |||
Number of Options (in shares) | 120,347 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 58.35 | ||
Aggregate Intrinsic Value | $ 1.5 | ||
$74.70 — $93.35 | Stock Options | |||
Exercise Price | |||
Exercise price, low end of range (in dollars per share) | $ 74.70 | ||
Exercise price, high end of range (in dollars per share) | $ 93.35 | ||
Options Vested or Expected to Vest | |||
Number of Options (in shares) | 229,720 | ||
Weighted- Average Remaining Contractual Life (Years) | 7 years 6 months | ||
Weighted-Average Exercise Price (in dollars per share) | $ 86.93 | ||
Aggregate Intrinsic Value | $ 0 | ||
Options Exercisable | |||
Number of Options (in shares) | 132,557 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 85.35 | ||
Aggregate Intrinsic Value | $ 0 |
Stock Compensation Plans - Unve
Stock Compensation Plans - Unvested Stock Options and Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Stock Options | |
Outstanding at the beginning of the period (in shares) | 210,178 |
Add: Options granted (in shares) | 1,272 |
Less: Options vested (in shares) | 111,615 |
Less: Options forfeited/cancelled (in shares) | 1,316 |
Outstanding at the end of the period (in shares) | 98,519 |
Weighted-Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 14.21 |
Add: Options granted (in dollars per share) | $ / shares | 10.32 |
Less: Options vested (in dollars per share) | $ / shares | 14.04 |
Less: options forfeited (in dollars per share) | $ / shares | 13.73 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 14.41 |
Stock options. | |
Additional disclosures | |
Shares outstanding that vested and would have been exercisable had the participants reached retirement age (in shares) | 61,000 |
Aggregate grant date fair value of options subject to accelerated vesting | $ | $ 0.9 |
Aggregate grant date fair value of options vested, including options subject to accelerated vesting | $ | 1.6 |
Maximum | Stock options. | |
Additional disclosures | |
Accelerated compensation expense (in dollars) | $ | $ 0.1 |
Stock Compensation Plans - Perf
Stock Compensation Plans - Performance Units/RSU (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted-Average Grant Date Fair Value | |||
Excess tax benefits from stock-based compensation recorded to APIC | $ 0.1 | $ 1.2 | $ 4.5 |
Performance units | |||
Stock Compensation Plans | |||
Granted (in shares) | 49,730 | 40,747 | 41,883 |
Percentage of target to be awarded, high end of range | 200.00% | ||
Common stock earned as a percentage of the performance unit target | 67.00% | ||
Market price at grant date of performance units(in USD per share) | $ 69.05 | ||
Unvested stock-based awards (other than stock options) | |||
Outstanding at the beginning of the period (in shares) | 47,221 | 41,377 | 53,506 |
Shares granted (in shares) | 49,730 | 40,747 | 41,883 |
Shares vested (in shares) | 0 | 0 | 0 |
Performance Shares vested (in shares) | 25,833 | 31,421 | 53,506 |
Shares expired or cancelled (in shares) | (4,927) | (3,482) | (506) |
Outstanding at the end of the period (in shares) | 66,191 | 47,221 | 41,377 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 93.21 | $ 81.85 | $ 73.79 |
Shares granted (in dollars per share) | 69.05 | 93.21 | 81.85 |
Shares vested (in dollars per share) | 0 | 0 | 0 |
Performance shares vested (in dollars per share) | 93.21 | 81.85 | 73.79 |
Shares expired or cancelled (in dollars per share) | 85.67 | 84.45 | 81.85 |
Outstanding at the end of the period (in dollars per share) | $ 75.62 | $ 93.21 | $ 81.85 |
RSUs | |||
Stock Compensation Plans | |||
Granted (in shares) | 46,556 | 10,618 | 10,318 |
Unvested stock-based awards (other than stock options) | |||
Outstanding at the beginning of the period (in shares) | 53,460 | 88,799 | 80,719 |
Shares granted (in shares) | 46,556 | 10,618 | 10,318 |
Shares vested (in shares) | (63,595) | (72,190) | (72,451) |
Performance Shares vested (in shares) | 10,354 | 33,928 | 73,838 |
Shares expired or cancelled (in shares) | (2,113) | (7,695) | (3,625) |
Outstanding at the end of the period (in shares) | 44,662 | 53,460 | 88,799 |
Weighted-Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 67.53 | $ 53.33 | $ 54.91 |
Shares granted (in dollars per share) | 67.04 | 82.29 | 76.84 |
Shares vested (in dollars per share) | 72.91 | 60.24 | 55.26 |
Performance shares vested (in dollars per share) | 93.21 | 88.40 | 52.11 |
Shares expired or cancelled (in dollars per share) | 69.35 | 84.45 | 50.48 |
Outstanding at the end of the period (in dollars per share) | $ 65.23 | $ 67.53 | $ 53.33 |
Units issued in lieu of dividends (in shares) | 43 | 132 | 226 |
Aggregate pre-tax intrinsic value of outstanding RSUs | $ 3.1 | ||
Aggregate pre-tax intrinsic value of restricted stock and RSUs that vested during the period | $ 4.2 | $ 4.4 | $ 6.3 |
RSUs | Non-employee members of the board of directors | |||
Stock Compensation Plans | |||
Granted (in shares) | 10,056 | ||
Market price at grant date of performance units(in USD per share) | $ 67.04 | ||
Vesting period | 1 year | ||
Unvested stock-based awards (other than stock options) | |||
Shares granted (in shares) | 10,056 | ||
RSUs | Employees | |||
Stock Compensation Plans | |||
Granted (in shares) | 36,457 | ||
Unvested stock-based awards (other than stock options) | |||
Shares granted (in shares) | 36,457 |
Stockholders' Equity - (Details
Stockholders' Equity - (Details) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($)voteseries$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized shares of common stock (in shares) | shares | 100,000,000 | 100,000,000 | ||
Voting rights per common share | vote | 1 | |||
Shares acquired by the entity (in shares) | shares | 17,774 | 25,890 | 28,000 | |
Cost of shares acquired by the entity | $ | $ 1,300,000 | $ 1,500,000 | $ 2,500,000 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized shares of preferred stock | shares | 20,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Minimum number of series of preferred stock to be issued | series | 1 | |||
Number of preferred shares issued (in shares) | shares | 0 | |||
2020 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Stock repurchase program, period in force | 12 months | |||
2019 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25,000,000 | |||
Common stock purchased under the stock purchase plan (in shares) | shares | 79,676 | |||
Cost of shares of common stock acquired | $ | $ 4,900,000 | |||
2018 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25,000,000 | |||
Common stock purchased under the stock purchase plan (in shares) | shares | 124,434 | |||
Cost of shares of common stock acquired | $ | $ 9,300,000 | |||
2017 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Common stock purchased under the stock purchase plan (in shares) | shares | 0 | |||
Cost of shares of common stock acquired | $ | $ 0 | |||
2016 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Common stock purchased under the stock purchase plan (in shares) | shares | 85,354 | |||
Cost of shares of common stock acquired | $ | $ 6,800,000 | |||
Maximum | 2020 Stock Purchase Plan | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Authorized amount of repurchase under the stock purchase plan | $ | $ 25,000,000 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Net loss from pension and other postretirement benefit liabilities, net of income tax benefits of $31.6 million and $29.9 million, respectively | $ (94.3) | $ (89.6) |
Unrealized foreign currency translation losses, net of income tax benefits of $0.3 and $0.3, respectively | (19) | (15.5) |
AOCI | (113.3) | (105.1) |
Foreign currency translation losses, tax benefit | 0.3 | 0.3 |
Net loss from pension and other postretirement benefit liabilities, tax benefit | $ 31.6 | $ 29.9 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | $ (9.9) | $ (12.3) | $ 5.8 | ||
Other comprehensive income (loss), tax effect | 1.7 | 1 | 3 | ||
Other comprehensive income (loss) | (8.2) | (11.3) | 8.8 | ||
Cumulative effect of new accounting principle in period of adoption | $ 0.3 | ||||
Available-for-sale securities adjustment tax effect | $ 0.1 | ||||
Provision for income taxes | (11.1) | (3.9) | (11.4) | ||
Unrealized foreign currency translation gains (losses) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (3.5) | (7.9) | 20 | ||
Other comprehensive income (loss), tax effect | 0 | (0.1) | 0 | ||
Other comprehensive income (loss) | (3.5) | (8) | 20 | ||
Adjustment to pension and other benefit liabilities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | (6.4) | (4.4) | (13.8) | ||
Other comprehensive income (loss), tax effect | 1.7 | 1.1 | 2.9 | ||
Other comprehensive income (loss) | (4.7) | (3.3) | (10.9) | ||
Unrealized loss on available-for-sale securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other comprehensive income (loss), before tax | 0 | 0 | (0.4) | ||
Other comprehensive income (loss), tax effect | 0 | 0 | 0.1 | ||
Other comprehensive income (loss) | 0 | 0 | (0.3) | ||
Accounting Standards Update 2016-01 | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification of the stranded tax effects related to the Tax Act | $ 10.9 | ||||
Cost of Sales and Selling General and Administrative Expenses | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of products sold and selling, general, and admin expense | 6 | 6 | 5.9 | ||
Provision for income taxes | 1.5 | 1.5 | 2.3 | ||
Pension Plan Settlement Charge | Adjustment to pension and other benefit liabilities | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification from AOCI, before tax | 1.3 | 0.8 | 0.6 | ||
Reclassification from AOCI, tax | $ 0.3 | $ 0.2 | $ 0.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Lease right-of-use assets | $ 13.9 | |||
Operating lease liability | $ 14.9 | |||
Lease remaining term of contract | 11 years | |||
Operating cash flows from operating leases | $ 3.1 | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ 0.4 | |||
Weighted average remaining lease term | 8 years 1 month 6 days | |||
Weighted average discount rate | 4.90% | |||
Rent expense under operating leases | $ 7.2 | $ 6.8 | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease extension term | 5 years | |||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease right-of-use assets | $ 16 | |||
Operating lease liability | $ 17 |
Leases - Lease Costs and Assump
Leases - Lease Costs and Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 3.1 |
Short-term lease cost | 1.5 |
Variable lease cost | $ 2.1 |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity Schedule (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2.8 |
2021 | 2.6 |
2022 | 2.3 |
2023 | 2 |
2024 | 1.7 |
Thereafter | 7.4 |
Total lease payments | 18.8 |
Less: Imputed interest | 3.9 |
Total lease liabilities | $ 14.9 |
Commitments, Contingencies, a_3
Commitments, Contingencies, and Legal Matters (Details) $ in Millions | Dec. 31, 2019USD ($)employeeperson | Nov. 30, 2019employee | Dec. 31, 2018employee |
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | 2,324 | 115 | 690 |
Number of hourly employees | employee | 30 | 375 | |
2020 | $ | $ 7.2 | ||
2021 | $ | 0.8 | ||
2022 | $ | 0.2 | ||
2023 | $ | $ 0.2 | ||
United States | |||
Loss Contingencies [Line Items] | |||
Number of hourly employees | 995 | ||
Number of salaried employees | 513 | ||
Europe | |||
Loss Contingencies [Line Items] | |||
Number of hourly employees | 385 | ||
Number of salaried employees | 431 | ||
Whiting, WI | January 2021 | |||
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | 203 | ||
Neenah, WI | June 2021 | |||
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | 244 | ||
Munising, MI | July 2021 | |||
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | 177 | ||
Appleton, WI | May 2022 | |||
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | 89 | ||
Lowville, NY | November 2021 | |||
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | 98 | ||
Workforce Subject to Collective Bargaining Arrangements Expiring within One Year | |||
Loss Contingencies [Line Items] | |||
Number of regular full-time employees | employee | 0 |
Sale of Battleboro Mill and I_2
Sale of Battleboro Mill and Impairment Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disposal Groups | ||||||
Impairment loss | $ (2.9) | $ 2 | $ 32 | $ 0 | $ 31.1 | $ 0 |
Brattleboro Mill and Associated Research and Office Facilities | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Disposal Groups | ||||||
Impairment loss | 31.1 | |||||
Cash proceeds from sale of mill | $ 5 | 5 | ||||
Fine Paper and Packaging | Brattleboro Mill and Associated Research and Office Facilities | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Disposal Groups | ||||||
Impairment loss | 24.4 | |||||
Technical Products | Brattleboro Mill and Associated Research and Office Facilities | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Disposal Groups | ||||||
Impairment loss | 1.1 | |||||
Other | Brattleboro Mill and Associated Research and Office Facilities | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Disposal Groups | ||||||
Impairment loss | $ 5.6 |
Business Segment and Geograph_3
Business Segment and Geographic Information - Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business segment | ||||||||||||
Net sales | $ 938.5 | $ 1,034.9 | $ 979.9 | |||||||||
Total Assets | $ 827.8 | $ 861.2 | 827.8 | 861.2 | ||||||||
Depreciation and amortization | 38.9 | 36.1 | 33.3 | |||||||||
Capital expenditures | 21.4 | 38.1 | 42.7 | |||||||||
Operating income (loss) | 22.1 | $ 19 | $ 19.8 | $ 17.4 | 17.8 | $ 16.5 | $ (4.3) | $ 24.1 | 78.3 | 54.1 | 104.3 | |
Curtailment gain | 1.6 | |||||||||||
Acquisition related adjustments | 0.8 | (3.1) | 0 | (3.9) | 0 | |||||||
Insurance recoveries | 0.4 | 0 | 0.4 | 3.2 | ||||||||
Pension plan settlement charge | 0.1 | 1 | 0.6 | |||||||||
Long-Lived Assets | 575.1 | 583.3 | 575.1 | 583.3 | ||||||||
United States | ||||||||||||
Business segment | ||||||||||||
Long-Lived Assets | 364.2 | 366.3 | 364.2 | 366.3 | ||||||||
Germany | ||||||||||||
Business segment | ||||||||||||
Long-Lived Assets | 153.3 | 157.9 | 153.3 | 157.9 | ||||||||
Rest of Europe | ||||||||||||
Business segment | ||||||||||||
Long-Lived Assets | 57.6 | 59.1 | 57.6 | 59.1 | ||||||||
Pension Benefits | ||||||||||||
Business segment | ||||||||||||
Curtailment gain | 1.6 | 0 | 0 | |||||||||
Unallocated corporate costs | ||||||||||||
Business segment | ||||||||||||
Total Assets | 36.3 | 27.2 | 36.3 | 27.2 | ||||||||
Depreciation and amortization | 1.6 | 1.6 | 1.7 | |||||||||
Capital expenditures | 0.6 | 1.4 | 0.5 | |||||||||
Operating income (loss) | (19.5) | (19.8) | (20.1) | |||||||||
Pre-operating costs related to conversion of fine paper machine to filtration | $ 2.7 | |||||||||||
Unallocated corporate costs | Supplemental Employee Retirement Plan | ||||||||||||
Business segment | ||||||||||||
Integration costs | 1.3 | |||||||||||
Restructuring costs and pension settlement charges | 0.3 | 1.9 | ||||||||||
Product | ||||||||||||
Business segment | ||||||||||||
Net sales | 213.6 | $ 231.8 | $ 253.4 | $ 239.7 | 240.9 | $ 256.2 | $ 271.3 | $ 266.5 | 938.5 | 1,034.9 | 979.9 | |
Product | United States | ||||||||||||
Business segment | ||||||||||||
Net sales | 673 | 744.4 | 748.9 | |||||||||
Product | Germany | ||||||||||||
Business segment | ||||||||||||
Net sales | 196.3 | 216.5 | 210.3 | |||||||||
Product | Rest of Europe | ||||||||||||
Business segment | ||||||||||||
Net sales | 69.2 | 74 | 20.7 | |||||||||
Technical Products | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Total Assets | 573.8 | 599.3 | 573.8 | 599.3 | ||||||||
Depreciation and amortization | 24.1 | 24.4 | 20.3 | |||||||||
Capital expenditures | 13.1 | 28 | 29.7 | |||||||||
Operating income (loss) | 44.6 | 50.9 | 55.3 | |||||||||
Non-routine costs | 0.3 | |||||||||||
Non-cash impairment loss, restructuring, integration and pension settlement charges | 2.5 | |||||||||||
Acquisition related adjustments | 3.9 | |||||||||||
Technical Products | Product | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Net sales | $ 541.6 | $ 583.2 | $ 518.6 | |||||||||
Technical Products | Product Concentration Risk | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | |||||||||
Technical Products | Product Concentration Risk | Filtration | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 42.00% | 40.00% | 42.00% | |||||||||
Technical Products | Product Concentration Risk | Backings | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 24.00% | 28.00% | 31.00% | |||||||||
Technical Products | Product Concentration Risk | Specialty | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 34.00% | 32.00% | 27.00% | |||||||||
Fine Paper and Packaging | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Total Assets | $ 217.7 | 234.7 | $ 217.7 | $ 234.7 | ||||||||
Depreciation and amortization | 13.2 | 9.9 | $ 11 | |||||||||
Capital expenditures | 7.7 | 8.7 | 12.5 | |||||||||
Operating income (loss) | 53.2 | 29.4 | 69.5 | |||||||||
Non-routine costs | 5.7 | |||||||||||
Non-cash impairment loss, restructuring costs, and pension settlement charges | 24.6 | |||||||||||
Insurance recoveries | 0.3 | 2.9 | ||||||||||
Integration costs | 1.8 | |||||||||||
Fine Paper and Packaging | Product | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Net sales | $ 396.9 | $ 445.8 | $ 455.3 | |||||||||
Fine Paper and Packaging | Product Concentration Risk | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 100.00% | 100.00% | 100.00% | |||||||||
Fine Paper and Packaging | Product Concentration Risk | Graphic Imaging | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 79.00% | 78.00% | 80.00% | |||||||||
Fine Paper and Packaging | Product Concentration Risk | Packaging | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 21.00% | 18.00% | 16.00% | |||||||||
Fine Paper and Packaging | Product Concentration Risk | Filing/Office | Sales | ||||||||||||
Business segment | ||||||||||||
Percentage of concentration risk | 0.00% | 4.00% | 4.00% | |||||||||
Other | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Depreciation and amortization | $ 0 | $ 0.2 | $ 0.3 | |||||||||
Operating income (loss) | 0 | (6.4) | (0.4) | |||||||||
Insurance recoveries | 0.1 | 0.3 | ||||||||||
Integration costs | 1.1 | |||||||||||
Pension plan settlement charge | 6 | $ 0.8 | ||||||||||
Other | Product | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Net sales | 0 | 5.9 | 6 | |||||||||
Restatement Adjustment | Other | Operating Segments | ||||||||||||
Business segment | ||||||||||||
Net sales | (15.6) | (16.5) | ||||||||||
Total Assets | $ (12.9) | (12.9) | ||||||||||
Depreciation and amortization | (0.7) | (0.9) | ||||||||||
Capital expenditures | $ 0 | $ (1.1) | ||||||||||
Dutch Defined Benefit Plan | Technical Products | Pension Benefits | ||||||||||||
Business segment | ||||||||||||
Curtailment gain | $ 1.6 |
Business Segment and Geograph_4
Business Segment and Geographic Information - Concentrations (Details) - Sales - Customer concentration risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Technical Products Business' Customer Number One | |||
Concentrations | |||
Percentage of concentration risk | 8.00% | ||
Technical Products Business' Customer Number One | Technical Products | |||
Concentrations | |||
Percentage of concentration risk | 14.00% | ||
Fine Paper And Packaging Business' Customer Number One | |||
Concentrations | |||
Percentage of concentration risk | 8.00% | 7.00% | 7.00% |
Fine Paper And Packaging Business' Customer Number One | Fine Paper and Packaging | |||
Concentrations | |||
Percentage of concentration risk | 18.00% | 16.00% | 15.00% |
Fine Paper And Packaging Business' Customer Number Two | |||
Concentrations | |||
Percentage of concentration risk | 5.00% | 7.00% | |
Fine Paper And Packaging Business' Customer Number Two | Fine Paper and Packaging | |||
Concentrations | |||
Percentage of concentration risk | 12.00% | 15.00% |
Supplemental Data - Advertising
Supplemental Data - Advertising and Research and Development, Accounts Receivable, Inventory, Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Advertising and Research Development Expenses | |||
Advertising expense | $ 4.9 | $ 4.7 | $ 6 |
Research and development expense | 8.7 | 9.2 | $ 8.9 |
Accounts Receivable - net | |||
From customers | 104.1 | 116.1 | |
Less allowance for doubtful accounts and sales discounts | (1.5) | (1.3) | |
Total | 102.6 | 114.8 | |
Inventories by Major Class: | |||
Raw materials | 32.8 | 35.6 | |
Work in progress | 26.4 | 30.1 | |
Finished goods | 67.3 | 78.3 | |
Supplies and other | 5.2 | 3 | |
Inventories, gross | 131.7 | 147 | |
Excess of FIFO over LIFO cost | (8.9) | (15.4) | |
Total | 122.8 | 131.6 | |
FIFO values of inventories valued on the LIFO method | 102.2 | 109.1 | |
Decrease in LIFO inventory quantities | 0.1 | 0.6 | |
Prepaid and Other Current Assets | |||
Prepaid and other current assets | 9.9 | 12.2 | |
Spare parts | 6.4 | 6.6 | |
Receivable for income taxes | 2 | 2.8 | |
Total | $ 18.3 | $ 21.6 |
Supplemental Data - Property, P
Supplemental Data - Property, Plant, and Equipment, Accrued Expense, Noncurrent Liabilities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | $ 850,600,000 | $ 840,200,000 | |
Less accumulated depreciation | 470,000,000 | 444,000,000 | |
Net Property, Plant and Equipment | 380,600,000 | 396,200,000 | |
Depreciation expense | 33,900,000 | 32,600,000 | $ 28,300,000 |
Interest expense capitalized | 200,000 | 200,000 | $ 0 |
Accrued Expenses | |||
Accrued salaries and employee benefits | 26,200,000 | 23,900,000 | |
Amounts due to customers | 8,900,000 | 9,600,000 | |
Accrued income taxes | 500,000 | 5,300,000 | |
Accrued utilities | 3,000,000 | 3,900,000 | |
Accrued interest | 1,200,000 | 1,200,000 | |
Other | 7,200,000 | 11,300,000 | |
Total | 47,000,000 | 55,200,000 | |
Noncurrent Employee Benefits | |||
Pension benefits | 57,100,000 | 54,000,000 | |
Post-employment benefits other than pensions | 36,000,000 | 38,900,000 | |
Total | 93,100,000 | 92,900,000 | |
Long-term disability benefits due to Terrace Bay retirees | 1,700,000 | 1,700,000 | |
Other long term benefits | 200,000 | ||
Land and land improvements | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 19,400,000 | 19,000,000 | |
Buildings | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 165,400,000 | 156,000,000 | |
Machinery and equipment | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 651,000,000 | 650,300,000 | |
Construction in progress | |||
Property, Plant and Equipment - Net | |||
Gross property, plant and equipment | 14,800,000 | 14,900,000 | |
Canada | |||
Noncurrent Employee Benefits | |||
Long-term disability benefits due to Terrace Bay retirees | $ 700,000 | $ 800,000 |
Supplemental Data - Supplementa
Supplemental Data - Supplemental Cash Flow Data (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the year for interest, net of interest expense capitalized | $ 10.9 | $ 11.9 | $ 11.3 |
Cash paid during the year for income taxes, net of refunds | 13.3 | 7.6 | 7.6 |
Non-cash investing activities: | |||
Liability for equipment acquired | 3.2 | 3.4 | 5.4 |
Net cash provided by (used in) changes in working capital | |||
Accounts receivable | 11.6 | (0.9) | (10.2) |
Inventories | 8.2 | 3.8 | (11.7) |
Income taxes receivable/payable | (5.4) | (1.8) | 4.5 |
Prepaid and other current assets | 2.4 | (1.8) | (0.4) |
Accounts payable | (14) | 0.3 | 10.6 |
Accrued expenses | (3.4) | (0.6) | (4.2) |
Other | 0 | 0 | (0.4) |
Total | $ (0.6) | $ (1) | $ (11.8) |
Unaudited Quarterly Data (Detai
Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net sales | $ 938.5 | $ 1,034.9 | $ 979.9 | ||||||||
Gross Profit | $ 44.3 | $ 44.7 | $ 50.7 | $ 43.7 | $ 34.6 | $ 41.3 | $ 55.1 | $ 52.4 | 183.4 | 183.4 | 200.2 |
Operating Income (Loss) | 22.1 | 19 | 19.8 | 17.4 | 17.8 | 16.5 | (4.3) | 24.1 | 78.3 | 54.1 | 104.3 |
Income from continuing operations | $ 15.6 | $ 14.4 | $ 13.6 | $ 11.8 | $ 12.9 | $ 12.9 | $ (4.8) | $ 16.2 | $ 55.4 | $ 37.2 | $ 80.3 |
Earnings (Loss) Per Common Share | |||||||||||
Basic (in dollar per share) | $ 0.92 | $ 0.85 | $ 0.80 | $ 0.70 | $ 0.77 | $ 0.76 | $ (0.29) | $ 0.96 | $ 3.27 | $ 2.20 | $ 4.74 |
Diluted (in dollars per share) | $ 0.92 | $ 0.84 | $ 0.80 | $ 0.69 | $ 0.76 | $ 0.75 | $ (0.29) | $ 0.95 | $ 3.26 | $ 2.17 | $ 4.68 |
Idled paper machine costs | $ 0.3 | $ 2.4 | $ 2 | ||||||||
Indirect tax audit costs | 0.1 | 0.6 | |||||||||
Restructuring, integration and other costs | 0.2 | 0.9 | $ (0.4) | $ 2.2 | $ 0.3 | $ 6.2 | $ 2.1 | $ 1.3 | |||
Curtailment gain | 1.6 | ||||||||||
Curtailment charge | 0.1 | ||||||||||
Tax adjustments, settlements, and unusual provisions | $ 0.9 | ||||||||||
After-tax SERP settlement charge | 0.6 | ||||||||||
Impairment loss (Note 13) | (2.9) | 2 | 32 | 0 | 31.1 | 0 | |||||
Pension plan settlement charge | 0.1 | 1 | 0.6 | ||||||||
Acquisition related adjustments | (0.8) | 3.1 | 0 | 3.9 | 0 | ||||||
Insurance recoveries | 0.4 | 0 | 0.4 | 3.2 | |||||||
Change in statutory tax rate, amount | 0 | 1.6 | 9.7 | ||||||||
Product | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net sales | $ 213.6 | $ 231.8 | $ 253.4 | $ 239.7 | 240.9 | $ 256.2 | $ 271.3 | $ 266.5 | $ 938.5 | 1,034.9 | $ 979.9 |
Netherlands | |||||||||||
Earnings (Loss) Per Common Share | |||||||||||
Change in statutory tax rate, amount | $ 0.7 | $ 0.7 |
SCHEDULE II SCHEDULE OF VALUA_2
SCHEDULE II SCHEDULE OF VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in valuation and qualifying accounts | |||
Write-offs and Reclassifications | $ 0 | ||
Allowance for doubtful accounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 0.8 | $ 0.8 | 1 |
Charged to Costs and Expenses | 0.5 | 0.1 | 0.2 |
Charged to Other Accounts | 0 | 0 | 0 |
Write-offs and Reclassifications | (0.3) | (0.1) | (0.4) |
Balance at End of Period | 1 | 0.8 | 0.8 |
Allowance for sales discounts | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | 0.5 | 0.5 | 0.5 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Charged to Other Accounts | (0.1) | 0 | 0 |
Write-offs and Reclassifications | 0 | 0 | |
Balance at End of Period | 0.4 | 0.5 | 0.5 |
Valuation allowance – deferred income taxes | |||
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Period | 2.7 | 0.4 | 3.5 |
Charged to Costs and Expenses | 0 | 0.1 | 0 |
Charged to Other Accounts | 3.1 | 2.2 | 0 |
Write-offs and Reclassifications | 0 | 0 | (3.1) |
Balance at End of Period | $ 5.8 | $ 2.7 | $ 0.4 |
Uncategorized Items - np2019123
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (800,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (300,000) |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 300,000 |