Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | KOP | |
Entity Registrant Name | KOPPERS HOLDINGS INC. | |
Entity Central Index Key | 0001315257 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 20,827,742 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-32737 | |
Entity Tax Identification Number | 20-1878963 | |
Entity Address, Address Line One | 436 Seventh Avenue | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15219 | |
City Area Code | 412 | |
Local Phone Number | 227-2001 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | PA |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 513.4 | $ 459.3 |
Cost of sales | 409.3 | 370.3 |
Depreciation and amortization | 14 | 14.2 |
(Gain) on sale of assets | (1.8) | (2.5) |
Selling, general and administrative expenses | 41.6 | 39.1 |
Operating profit | 50.3 | 38.2 |
Other (loss) income, net | (0.2) | 0.6 |
Interest expense | 14 | 9.8 |
Income from continuing operations before income taxes | 36.1 | 29 |
Income tax provision | 9.9 | 9.7 |
Income from continuing operations | 26.2 | 19.3 |
Loss on sale of discontinued operations | 0 | (0.5) |
Net income | 26.2 | 18.8 |
Net income attributable to noncontrolling interests | 0.7 | 0 |
Net income attributable to Koppers | $ 25.5 | $ 18.8 |
Basic - | ||
Continuing operations | $ 1.22 | $ 0.91 |
Discontinued operations | 0 | (0.02) |
Earnings per basic common share | 1.22 | 0.89 |
Diluted - | ||
Continuing operations | 1.19 | 0.89 |
Discontinued operations | 0 | (0.02) |
Earnings per diluted common share | $ 1.19 | $ 0.87 |
Comprehensive income | $ 33.9 | $ 20.5 |
Comprehensive income attributable to noncontrolling interests | 0.7 | 0 |
Comprehensive income attributable to Koppers | $ 33.2 | $ 20.5 |
Weighted average shares outstanding (in thousands): | ||
Basic | 20,842 | 21,151 |
Diluted | 21,385 | 21,692 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 46.4 | $ 33.3 |
Accounts receivable, net of allowance of $3.7 and $3.5 | 241.6 | 215.7 |
Inventories, net | 379.2 | 355.7 |
Derivative contracts | 9.7 | 3.1 |
Other current assets | 33.7 | 29 |
Total current assets | 710.6 | 636.8 |
Property, plant and equipment, net | 576 | 557.3 |
Operating lease right-of-use assets | 85.9 | 86.3 |
Goodwill | 294 | 294 |
Intangible assets, net | 112.4 | 116.1 |
Deferred tax assets | 11.7 | 11.7 |
Other assets | 10 | 9.2 |
Total assets | 1,800.6 | 1,711.4 |
Liabilities | ||
Accounts payable | 219.2 | 207.4 |
Accrued liabilities | 75.9 | 96.1 |
Current operating lease liabilities | 20.9 | 20.5 |
Total current liabilities | 316 | 324 |
Long-term debt | 881 | 817.7 |
Accrued postretirement benefits | 35.1 | 34.7 |
Deferred tax liabilities | 23.2 | 21.5 |
Operating lease liabilities | 65.4 | 66.3 |
Other long-term liabilities | 45 | 44.2 |
Total liabilities | 1,365.7 | 1,308.4 |
Commitments and contingent liabilities (Note 16) | ||
Equity | ||
Senior Convertible Preferred Stock, $0.01 par value per share; 10,000,000 shares authorized; no shares issued | 0 | 0 |
Common Stock, $0.01 par value per share; 80,000,000 shares authorized; 24,785,028 and 24,547,000 shares issued | 0.2 | 0.2 |
Additional paid-in capital | 269.2 | 263.9 |
Retained earnings | 384.2 | 360.2 |
Accumulated other comprehensive loss | (89.6) | (97.3) |
Treasury stock, at cost, 3,961,817 and 3,783,901 shares | (133.4) | (127.6) |
Total Koppers shareholders’ equity | 430.6 | 399.4 |
Noncontrolling interests | 4.3 | 3.6 |
Total equity | 434.9 | 403 |
Total liabilities and equity | $ 1,800.6 | $ 1,711.4 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3.7 | $ 3.5 |
Senior Convertible Preferred Stock, par value | $ 0.01 | $ 0.01 |
Senior Convertible Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Senior Convertible Preferred Stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 80,000,000 | 80,000,000 |
Common Stock, shares issued | 24,785,028 | 24,547,000 |
Treasury stock, shares | 3,961,817 | 3,783,901 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash provided by (used in) operating activities: | ||
Net income | $ 26.2 | $ 18.8 |
Adjustments to reconcile net cash used in operating activities: | ||
Depreciation and amortization | 14 | 14.2 |
Stock-based compensation | 4 | 3.5 |
Change in derivative contracts | (1.1) | 0.3 |
Non-cash interest expense | 0.6 | 0.7 |
(Gain) on sale of assets | (1.8) | (2.5) |
Insurance proceeds | 0 | (0.4) |
Deferred income taxes | (0.1) | 0.3 |
Change in other liabilities | 0.4 | 1 |
Other - net | 0.4 | 2.4 |
Changes in working capital: | ||
Accounts receivable | (25.1) | (40) |
Inventories | (22.4) | (13.5) |
Accounts payable | 14.1 | 13 |
Accrued liabilities | (18.5) | (4.5) |
Other working capital | (6) | (1.3) |
Net cash used in operating activities | (15.3) | (8) |
Cash (used in) provided by investing activities: | ||
Capital expenditures | (30.4) | (26.2) |
Insurance proceeds received | 0 | 0.4 |
Cash provided by sale of assets | 1.9 | 3.8 |
Net cash used in investing activities | (28.5) | (22) |
Cash provided by (used in) financing activities: | ||
Net increase in credit facility borrowings | 63.5 | 47.4 |
Repayments of long-term debt | 0 | (2) |
Issuances of Common Stock | 1.2 | 0.3 |
Repurchases of Common Stock | (5.8) | (11.1) |
Payment of debt issuance costs | (0.8) | (0.1) |
Dividends paid | (1.3) | (1.1) |
Net cash provided by financing activities | 56.8 | 33.4 |
Effect of exchange rate changes on cash | 0.1 | 0.3 |
Net increase in cash and cash equivalents | 13.1 | 3.7 |
Cash and cash equivalents at beginning of period | 33.3 | 45.5 |
Cash and cash equivalents at end of period | 46.4 | 49.2 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflow from operating leases | 7 | 7.4 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 5.9 | 1.5 |
Accrued capital expenditures | $ 8.4 | $ 11.5 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of Koppers Holdings Inc.’s and its subsidiaries’ (“Koppers”, “Koppers Holdings”, the “Company”, “we” or “us”) financial position and interim results as of and for the periods presented have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Because our business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The Condensed Consolidated Balance Sheet as of December 31, 2022 has been summarized from the audited balance sheet contained in the Annual Report on Form 10-K as of and for the year ended December 31, 2022. Certain prior period amounts in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. The financial information included herein should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 . |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method.” This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in financial statements. ASU No. 2022-01 is effective for periods beginning after December 15, 2022. The adoption of this ASU did not have a material impact on our financial statements as we principally utilize cash flow hedges. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Carrying amounts and the related estimated fair values of our financial instruments as of March 31, 2023 and December 31, 2022 are as follows: March 31, 2023 December 31, 2022 Fair Value Carrying Fair Value Carrying (Dollars in millions) Financial assets: Investments and other assets $ 1.3 $ 1.3 $ 1.3 $ 1.3 Financial liabilities: Long-term debt $ 884.1 $ 888.8 $ 801.1 $ 825.3 Investments and other assets – Represents the broker-quoted cash surrender value on universal life insurance policies. This asset is classified as Level 2 in the valuation hierarchy and is measured from values received from financial institutions. Debt – The fair value of our long-term debt is estimated based on the market prices for the same or similar issuances or on the current rates offered to us for debt of the same remaining maturities (Level 2). The fair value of our Credit Facility (as defined in Note 12 – "Debt") approximates carrying value due to the variable rate nature of this instrument. |
Comprehensive Income and Equity
Comprehensive Income and Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Comprehensive Income and Equity | . Comprehensive Income and Equity Total comprehensive income for the three months ended March 31, 2023 and 2022 is summarized in the table below: Three Months Ended March 31, 2023 2022 (Dollars in millions) Net income $ 26.2 $ 18.8 Changes in other comprehensive income: Currency translation adjustment 2.7 5.8 Unrealized gain (loss) on cash flow hedges, net of tax 1.9 ) and $ 2.1 4.7 ( 4.3 ) Unrecognized pension net loss, net of tax expense of $( 0.1 ) and $( 0.1 ) 0.3 0.2 Comprehensive income 33.9 20.5 Comprehensive income attributable to noncontrolling interests 0.7 0.0 Comprehensive income attributable to Koppers $ 33.2 $ 20.5 Amounts reclassified from accumulated other comprehensive loss to net income consist of amounts shown for changes in or amortization of unrecognized pension net loss. This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost as disclosed in Note 11 – “Pensions and Post-Retirement Benefit Plans.” Other amounts reclassified from accumulated other comprehensive loss related to derivative financial instruments of $ 1.7 million for the three months ended March 31, 2023 , and $ 10.1 million for the three months ended March 31, 2022. The amounts in the preceding sentence are net of tax. The following tables present the change in equity for the three months ended March 31, 2023 and 2022, respectively: (Dollars in millions) Common Additional Retained Earnings Accumulated Other Comprehensive Loss Treasury Noncontrolling Total Balance at December 31, $ 0.2 $ 263.9 $ 360.2 $ ( 97.3 ) $ ( 127.6 ) $ 3.6 $ 403.0 Net income 0.0 0.0 25.5 0.0 0.0 0.7 26.2 Dividends 0.0 0.0 ( 1.5 ) 0.0 0.0 0.0 ( 1.5 ) Issuance of common stock 0.0 1.3 0.0 0.0 0.0 0.0 1.3 Repurchases of common 0.0 0.0 0.0 0.0 ( 5.8 ) 0.0 ( 5.8 ) Employee stock plans 0.0 4.0 0.0 0.0 0.0 0.0 4.0 Other comprehensive Currency translation 0.0 0.0 0.0 2.7 0.0 0.0 2.7 Unrealized gain on 0.0 0.0 0.0 4.7 0.0 0.0 4.7 Unrecognized pension 0.0 0.0 0.0 0.3 0.0 0.0 0.3 Balance at March 31, $ 0.2 $ 269.2 $ 384.2 $ ( 89.6 ) $ ( 133.4 ) $ 4.3 $ 434.9 (Dollars in millions) Common Additional Retained Earnings Accumulated Other Comprehensive Loss Treasury Noncontrolling Total Balance at December 31, $ 0.2 $ 249.5 $ 300.9 $ ( 40.0 ) $ ( 104.0 ) $ 4.2 $ 410.8 Net income 0.0 0.0 18.8 0.0 0.0 0.0 18.8 Dividends 0.0 0.0 ( 1.0 ) 0.0 0.0 0.0 ( 1.0 ) Issuance of common stock 0.0 0.3 0.0 0.0 0.0 0.0 0.3 Repurchases of common 0.0 0.0 0.0 0.0 ( 11.1 ) 0.0 ( 11.1 ) Employee stock plans 0.0 3.6 0.0 0.0 0.0 0.0 3.6 Other comprehensive Currency translation 0.0 0.0 0.0 5.9 0.0 ( 0.1 ) 5.8 Unrealized loss on 0.0 0.0 0.0 ( 4.3 ) 0.0 0.0 ( 4.3 ) Unrecognized pension 0.0 0.0 0.0 0.2 0.0 0.0 0.2 Balance at March 31, $ 0.2 $ 253.4 $ 318.7 $ ( 38.3 ) $ ( 115.1 ) $ 4.1 $ 423.0 On May 4, 2023 , we declared a quarterly dividend of $ 0.06 per common share, payable on June 12, 2023 to shareholders of record as of May 26, 2023 . |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 5. Earnings per Common Share The computation of basic earnings per common share for the periods presented is based upon the weighted average number of common shares outstanding during the periods. The computation of diluted earnings per common share includes the effect of non-vested nonqualified stock options and restricted stock units assuming such options and stock units were outstanding common shares at the beginning of the period. The effect of antidilutive securities is excluded from the computation of diluted loss per common share, if any. The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended March 31, 2023 2022 (Dollars in millions, except share amounts, in thousands) Net income attributable to Koppers $ 25.5 $ 18.8 Less: Loss on sale of discontinued operations 0.0 ( 0.5 ) Income from continuing operations attributable to Koppers $ 25.5 $ 19.3 Weighted average common shares outstanding: Basic 20,842 21,151 Effect of dilutive securities 543 541 Diluted 21,385 21,692 Earnings per common share – continuing operations: Basic earnings per common share $ 1.22 $ 0.91 Diluted earnings per common share 1.19 0.89 Other data: Antidilutive securities excluded from computation of diluted earnings 629 965 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 6. Stock-based Compensation We have outstanding stock-based compensation awards that were granted under the amended and restated 2005 Long-Term Incentive Plan (the “2005 LTIP”), the 2018 Long-Term Incentive Plan (the “2018 LTIP”) and the 2020 Long-Term Incentive Plan, as amended (the “2020 LTIP”). The 2005 LTIP, the 2018 LTIP and the 2020 LTIP are collectively referred to as the “LTIP”. The LTIP provides for the grant to eligible persons of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance awards, dividend equivalents and other stock-based awards, which are collectively referred to as the “awards.” Restricted Stock Units and Performance Stock Units Under the LTIP, the board of directors grants restricted stock units and performance stock units to certain employee participants (collectively, the “stock units”). Compensation expense for non-vested stock units is recorded over the vesting period based on the fair value at the date of grant. The fair value of restricted stock units is the market price of the underlying common stock on the date of grant. The fair value of performance stock units is determined using the market price of the underlying common stock on the date of grant for units with a performance condition and a Monte Carlo valuation model for units with a market condition. For grants to most employees prior to 2023, the restricted stock units vest in four equal annual installments. Starting in 2023, most grants of restricted stock units vest in three years . Restricted stock units that have one-year vesting periods are also issued under the LTIP to members of the board of directors in connection with annual director compensation and, from time to time, are issued to employees in connection with employee compensation with vesting periods of typically two years or less. Performance stock units have vesting based upon either a performance condition or a market condition. Performance stock units granted with a performance condition have a cumulative three-year performance objective based on adjusted EBITDA (see Note 7 - Segment Information). For performance stock units granted with a market condition, which applies to all performance stock unit grants prior to 2023, the applicable objective is based on our total shareholder return relative to the Standard & Poor’s SmallCap 600 Materials Index and has multi-year performance objectives. Both types of performance stock units have a three-year period for vesting (if the applicable performance objectives are achieved). The number of performance stock units granted represents the target award and participants have the ability to earn between zero and 200 percent of the target award based upon actual performance. If minimum performance criteria are not achieved, no performance stock units will vest. We have the discretion to settle the award in cash rather than shares, although we currently expect that all awards will be settled by the issuance of shares. We calculated the fair value of the performance stock unit awards with a market condition on the date of grant using the assumptions listed below: January 2023 Grant January 2022 Grant January 2021 Grant Grant date price per share of performance $ 29.01 $ 32.19 $ 29.84 Expected volatility 66.30 % 66.90 % 68.70 % Risk-free interest rate 4.11 % 1.10 % 0.16 % Look-back period in years 3.00 3.00 3.00 Grant date fair value per share $ 39.51 $ 45.19 $ 41.50 Dividends declared, if any, on our common stock during the period prior to vesting of the stock units are credited at equivalent value as additional stock units and become payable as additional common shares upon vesting. In the event of termination of employment, other than retirement, death or disability, any non-vested stock units are forfeited, including additional stock units credited from dividends. In the event of termination of employment due to retirement, death or disability, pro-rata vesting of the stock units over the service period will result. There are special vesting provisions for the stock units related to a change in control. The following table shows a summary of the performance stock units as of March 31, 2023: Performance Period Minimum Target Maximum Market Condition Units 2021 – 2023 66,968 115,036 163,104 2022 – 2024 17,788 117,937 218,086 2023 – 2025 0 78,411 156,822 Performance Condition Units 2023 – 2025 0 188,238 376,476 The following table shows a summary of the status and activity of non-vested stock units for the three months ended March 31, 2023: Restricted Performance Total Weighted Average Non-vested at December 31, 2022 524,612 237,032 761,644 $ 32.40 Granted 201,640 267,073 468,713 $ 30.71 Credited from dividends 3,193 1,594 4,787 $ 26.80 Vested ( 176,248 ) 0 ( 176,248 ) $ 26.44 Forfeited ( 13,609 ) ( 6,077 ) ( 19,686 ) $ 32.50 Non-vested at March 31, 2023 539,588 499,622 1,039,210 $ 32.62 Stock Options Stock options to executive officers vest and become exercisable in four equal annual installments. The stock options have a term of ten years . In the event of termination of employment, other than retirement, death or disability, any non-vested options are forfeited. In the event of termination of employment due to retirement, death or disability, pro-rata vesting of the options over the service period will result. There are special vesting provisions for the stock options related to a change in control. Compensation expense for non-vested stock options is recorded over the vesting period based on the fair value at the date of grant. No stock options have been issued in 2023. We calculated the fair value of stock options on the date of grant using the Black-Scholes-Merton model and the assumptions listed below: January 2022 Grant January 2021 Grant March 2020 Grant Grant date price per share of stock $ 32.19 $ 29.84 $ 19.63 Expected dividend yield per share 0.00 % 0.00 % 0.00 % Expected life in years 6.76 6.64 6.40 Expected volatility 54.50 % 54.80 % 42.85 % Risk-free interest rate 1.52 % 0.59 % 0.87 % Grant date fair value per share of option $ 17.58 $ 15.79 $ 8.42 Prior to February 2022, we had not declared a dividend since 2014. The dividend yield is based on the Company’s current and prospective dividend rate which calculates a continuous dividend yield based upon the market price of the underlying common stock. The expected life in years is based on historical exercise data of options previously granted by us. Expected volatility is based on the historical volatility of our common stock and the risk-free interest rate is based on U.S. Treasury bill rates for the expected life of the option. The following table shows a summary of the status and activity of stock options for the three months ended March 31, 2023: Options Weighted Average Weighted Average Aggregate Intrinsic Outstanding at December 31, 2022 1,122,136 $ 27.05 Exercised ( 48,709 ) $ 19.01 Expired ( 36,397 ) $ 42.76 Outstanding at March 31, 2023 1,037,030 $ 26.88 4.71 $ 10.0 Exercisable at March 31, 2023 875,554 $ 26.63 4.10 $ 8.9 Stock Compensation Expense Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2023 and 2022 is as follows: Three Months Ended March 31, 2023 2022 (Dollars in millions) Stock-based compensation expense recognized: Selling, general and administrative expenses $ 4.0 $ 3.5 Less related income tax benefit 1.1 1.2 Decrease in net income attributable to Koppers $ 2.9 $ 2.3 Intrinsic value of exercised stock options $ 0.7 $ 0.0 Cash received from the exercise of stock options $ 0.9 $ 0.0 As of March 31, 2023 , total future compensation expense related to non-vested stock-based compensation arrangements is expected to total $ 28.2 million and the weighted-average period over which this expense is expected to be recognized is approximately 28 months . |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 7. Segment Information We have three reportable segments: Railroad and Utility Products and Services ("RUPS"), Performance Chemicals (“PC”) and Carbon Materials and Chemicals ("CMC"). Our reportable segments contain multiple aggregated business units since management believes the long-term financial performance of these business units is affected by similar economic conditions. The reportable segments are each managed separately because they manufacture and distribute distinct products with different production processes. Our RUPS segment sells treated and untreated wood products, manufactured products and services primarily to the railroad and public utility markets. Railroad products and services include procuring and treating items such as crossties, switch ties and various types of lumber used for railroad bridges and crossings and the manufacture of rail joint bars. Utility products include transmission and distribution poles and pilings. The segment also operates a railroad services business that conducts engineering, design, repair and inspection services for railroad bridges, a business related to the recovery of used crossties and utility poles and a business related to the inspection of utility poles. Our PC segment develops, manufactures, and markets wood preservation chemicals and wood treatment technologies and services a diverse range of end-markets including infrastructure, residential and commercial construction, and agriculture. Our CMC segment is primarily a manufacturer of creosote, carbon pitch, naphthalene, phthalic anhydride and carbon black feedstock. Creosote is used in the treatment of wood and carbon black feedstock is used in the production of carbon black. Carbon pitch is a critical raw material used in the production of aluminum and for the production of steel in electric arc furnaces. Naphthalene is used for the production of phthalic anhydride and as a surfactant in the production of concrete. Phthalic anhydride is used in the production of plasticizers, polyester resins and alkyd paints. Our primary measure of segment profitability is adjusted earnings before interest, income taxes, depreciation, amortization and certain non-cash and/or non-recurring items that do not contribute directly to management’s evaluation of our operating results (as defined by us, “adjusted EBITDA"). These items include impairment, restructuring and plant closure costs, mark-to-market commodity hedging, gain or loss on sale of assets and LIFO inventory effects. This presentation is consistent with how our chief operating decision maker evaluates the results of operations and makes strategic decisions about the business. In addition, adjusted EBITDA is the primary measure used to determine the level of achievement of management’s short-term incentive goals and related payout. For these reasons, we believe that adjusted EBITDA represents the most relevant measure of segment profit and loss. Adjusted EBITDA is reconciled to net income on a consolidated basis, the most directly comparable financial measure determined and reported in accordance with U.S. GAAP. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment transactions are eliminated in consolidation. Contract Balances The timing of revenue recognition results in both billed accounts receivable and unbilled receivables, both classified as accounts receivable, net of allowance within the condensed consolidated balance sheet. Contract assets of $ 9.2 million and $ 8.3 million are recorded within accounts receivable, net of allowance within the condensed consolidated balance sheet as of March 31, 2023 and December 31, 2022, respectively. The following table sets forth certain sales and operating data, net of all intersegment transactions, for our segments for the periods indicated: Three Months Ended March 31, 2023 2022 (Dollars in millions) Revenues from external customers: Railroad and Utility Products and Services $ 213.1 $ 183.4 Performance Chemicals 146.9 136.4 Carbon Materials and Chemicals 153.4 139.5 Total $ 513.4 $ 459.3 Intersegment revenues: Performance Chemicals $ 5.6 $ 4.0 Carbon Materials and Chemicals 19.0 18.6 Total $ 24.6 $ 22.6 Depreciation and amortization expense: Railroad and Utility Products and Services $ 5.9 $ 5.4 Performance Chemicals 3.5 3.9 Carbon Materials and Chemicals 4.6 4.9 Total $ 14.0 $ 14.2 Adjusted EBITDA: Railroad and Utility Products and Services $ 15.8 $ 11.6 Performance Chemicals 26.3 20.9 Carbon Materials and Chemicals 19.4 20.1 Items excluded from the determination of segment profit: Impairment, restructuring and plant closure costs 0.0 ( 0.1 ) Gain on sale of assets 1.8 2.5 LIFO expense (1) ( 0.3 ) ( 1.7 ) Mark-to-market commodity hedging gains (losses) 1.1 ( 0.3 ) Interest expense ( 14.0 ) ( 9.8 ) Depreciation and amortization ( 14.0 ) ( 14.2 ) Income tax provision ( 9.9 ) ( 9.7 ) Discontinued operations 0.0 ( 0.5 ) Net income $ 26.2 $ 18.8 (1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis . The following table sets forth revenues for significant product lines, net of all intersegment transactions, for our segments for the periods indicated: Three Months Ended March 31, 2023 2022 (Dollars in millions) Railroad and Utility Products and Services: Railroad treated products $ 127.5 $ 105.3 Utility poles 63.3 56.2 Railroad infrastructure services 9.6 9.3 Rail joints 6.3 6.8 Other products 6.4 5.8 Total 213.1 183.4 Performance Chemicals: Wood preservative products 136.9 130.4 Other products 10.0 6.0 Total 146.9 136.4 Carbon Materials and Chemicals: Pitch and related products 100.7 77.8 Phthalic anhydride and other chemicals 19.0 25.3 Carbon black feedstock and distillates 17.7 19.0 Naphthalene 8.6 8.6 Other products 7.4 8.8 Total 153.4 139.5 Total $ 513.4 $ 459.3 The following table sets forth assets and goodwill allocated to each of our segments as of the dates indicated: March 31, December 31, (Dollars in millions) Segment assets: Railroad and Utility Products and Services $ 698.7 $ 660.8 Performance Chemicals 551.6 516.9 Carbon Materials and Chemicals 518.6 500.5 All other 31.7 33.2 Total $ 1,800.6 $ 1,711.4 Goodwill: Railroad and Utility Products and Services $ 120.6 $ 120.6 Performance Chemicals 173.4 173.4 Total $ 294.0 $ 294.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Effective Tax Rate The income tax provision for interim periods is comprised of an estimated annual effective income tax rate applied to current year ordinary income and tax associated with discrete items. These discrete items generally relate to excess stock compensation deductions, changes in tax laws, adjustments to unrecognized tax benefits and changes of estimated tax liability to the actual liability determined upon filing income tax returns. To determine the annual effective tax rate, management is required to make estimates of annual pretax income in each domestic and foreign jurisdiction in which we conduct business. Entities that have historical pre-tax losses and current year estimated pre-tax losses that are not projected to generate a future benefit are excluded from the estimated annual effective income tax rate. The estimated annual effective income tax rate, excluding discrete items, was 28.4 percent and 32.9 percent for the three months ended March 31, 2023 and 2022 , respectively. The estimated annual effective income tax rate differs from the U.S. federal statutory tax rate due to: March 31, 2023 2022 Federal income tax rate 21.0 % 21.0 % Foreign earnings taxed at different rates 4.3 5.2 Nondeductible expenses 1.4 1.3 State income taxes, net of federal tax benefit 1.3 0.6 GILTI inclusion, net of foreign tax credits 0.4 0.7 Change in tax contingency reserves 0.0 0.4 Interest expense deduction limitation 0.0 3.7 Estimated annual effective income tax rate 28.4 % 32.9 % Income taxes as a percentage of pretax income were 27.4 percent for the three months ended March 31, 2023 and 33.4 percent for the three months ended March 31, 2022 . Both periods were slightly different than the estimated annual effective income tax rate of 28.4 percent and 32.9 percent, respectively, due to various discrete items, which were not material in the aggregate or individually. During the year, management regularly updates estimates of pre-tax income and income tax expense based on changes in pre-tax income projections by taxable jurisdiction, repatriation of foreign earnings, unrecognized tax benefits and other tax matters. To the extent that actual results vary from these estimates, the actual annual effective income tax rate at the end of the year could be materially different from the estimated annual effective income tax rate for the three months ended March 31, 2023. Unrecognized Tax Benefits We file income tax returns in the U.S. federal jurisdiction, individual U.S. state jurisdictions and non-U.S. jurisdictions. With few exceptions, we are no longer subject to U.S. federal, U.S. state, or non-U.S. income tax examinations by tax authorities for years prior to 2017. Unrecognized tax benefits totaled $ 1.4 million as of March 31, 2023 and December 31, 2022 . The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate, was approximately $ 1.4 million as of March 31, 2023 and December 31, 2022. We recognize interest expense and any related penalties from unrecognized tax benefits in income tax expense. For the three months ended March 31, 2023 we recognized $ 0.1 million in interest and penalties. For the year ended December 31, 2022 , we recognized income of $( 0.1 ) million in interest and penalties. We do not anticipate material changes to the amount of unrecognized tax benefits within the next twelve months. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 9. Inventories Net inventories as of March 31, 2023 and December 31, 2022 are summarized in the table below: March 31, December 31, (Dollars in millions) Raw materials $ 345.0 $ 318.5 Work in process 11.8 10.2 Finished goods 126.1 130.4 $ 482.9 $ 459.1 Less revaluation to LIFO 103.7 103.4 Net $ 379.2 $ 355.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 10. Property, Plant and Equipment Property, plant and equipment as of March 31, 2023 and December 31, 2022 are summarized in the table below: March 31, December 31, (Dollars in millions) Land $ 15.0 $ 15.0 Buildings 80.4 80.3 Machinery and equipment 929.5 924.1 $ 1,024.9 $ 1,019.4 Less accumulated depreciation 448.9 462.1 Net $ 576.0 $ 557.3 |
Pensions and Post-Retirement Be
Pensions and Post-Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2023 | |
Compensation And Retirement Disclosure [Abstract] | |
Pensions and Post-Retirement Benefit Plans | 11. Pensions and Post-Retirement Benefit Plans We maintain a number of defined benefit and defined contribution plans to provide retirement benefits for employees in the United States, as well as employees outside the United States. These plans are maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”) or local law, as applicable. The defined benefit pension plans generally provide benefits based upon years of service and compensation. Pension plans are funded except for three domestic non-qualified defined benefit pension plans for certain key executives. In the United States, all qualified and two of the non-qualified defined benefit pension plans for salaried and hourly employees have been closed to new participants and have been frozen. Accordingly, these pension plans no longer accrue additional years of service or recognize future increases in compensation for benefit purposes. In connection with our defined benefit pension plan in the United Kingdom, in 2021, we entered into a buy-in bulk annuity insurance policy in exchange for a premium payment of $ 67.8 million, which is subject to adjustment as a result of subsequent data cleansing activities. Under the terms of this buy-in insurance policy, the insurer is liable to pay the benefits of the plan, but the plan still retains full legal responsibility to pay the benefits to members using the insurance payments. The buy-in policy will be treated as a plan asset going forward until such time as the buy-in policy is converted to a buy-out policy, which is when individual insurance policies will be assigned to each member of the plan and the plan will no longer have legal responsibility to pay the benefits to the members. The data cleansing effort was substantially completed in late 2022 and by late 2023, the pension obligation is expected to be irrevocably settled. Upon that event, we will recognize a pre-tax pension settlement loss of approximately $ 20 million. The defined contribution plans generally provide retirement assets to employee participants based upon employer and employee contributions to the participant’s individual investment account. We also provide retiree medical insurance coverage to certain U.S. employees and a life insurance benefit to most U.S. employees. For salaried employees, the retiree medical and retiree life insurance plans have been closed to new participants. The following table provides the components of net periodic benefit cost for the pension plans for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (Dollars in millions) Service cost $ 0.4 $ 0.3 Interest cost 2.1 1.4 Expected return on plan assets ( 1.7 ) ( 2.0 ) Amortization of net loss 0.5 0.5 Net periodic benefit cost $ 1.3 $ 0.2 Defined contribution plan expense $ 2.5 $ 2.5 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 12. Debt Debt as of March 31, 2023 and December 31, 2022 was as follows: Weighted Maturity March 31, December 31, (Dollars in millions) Revolving Credit Facility 7.08 % 2027 388.8 325.3 Senior Notes due 2025 6.00 % 2025 500.0 500.0 Debt 888.8 825.3 Less unamortized debt issuance costs 7.8 7.6 Long-term debt $ 881.0 $ 817.7 Revolving Credit Facility In June 2022, we entered into an $ 800.0 million revolving credit agreement (the “Credit Facility”) with a consortium of banks. The Credit Facility also provides for a $ 50.0 million swingline facility and provides for the ability to incur one or more uncommitted incremental revolving or term loan facilities in an aggregate amount of at least $ 730.0 million, subject to applicable financial covenants. The interest rate on the Credit Facility is variable and may be based on the Secured Overnight Financing Rate (“SOFR”), which is the applicable benchmark for current borrowings, or an alternative benchmark depending on the borrowing type. Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the assets (excluding real property and other customary assets) of Koppers Inc., Koppers Holdings Inc. and their material domestic subsidiaries. The Credit Facility contains certain covenants that limit Koppers Inc. and its restricted subsidiaries, including, without limitation, limitations on additional indebtedness, liens, dividends, investments, acquisitions, subsidiary and certain other distributions, asset sales, transactions with affiliates and modifications to material documents, including organizational documents. In addition, such covenants give rise to events of default upon the failure by Koppers Inc. and its restricted subsidiaries to meet certain financial ratios. As of March 31, 2023 , we had approximately $ 400 million of unused revolving credit availability for working capital purposes after restrictions from certain letter of credit commitments and other covenants. As of March 31, 2023 , approximately $ 18 million of commitments were utilized by outstanding letters of credit. Senior Notes due 2025 Koppers Inc.’s $ 500 million Senior Notes due 2025 (the “2025 Notes”) are senior obligations of Koppers Inc., are unsecured and are guaranteed by Koppers Holdings Inc. and certain of Koppers Inc.’s domestic subsidiaries. The 2025 Notes pay interest semi-annually in arrears on February 15 and August 15 and will mature on February 15, 2025 unless earlier redeemed or repurchased. We are entitled to redeem all or a portion of the 2025 Senior Notes at a redemption price of 101.5 percent of principal value as of February 15, 2022 until April 15, 2023 when the 2025 Notes are redeemable at principal value. The indenture governing the 2025 Notes includes customary covenants that restrict, among other things, the ability of Koppers Inc. and its restricted subsidiaries to incur additional debt, pay dividends or make certain other restricted payments, incur liens, merge or sell all or substantially all of the assets of Koppers Inc. or its subsidiaries or enter into various transactions with affiliates. Subsequent Events On April 10, 2023, we entered into Amendment No. 1 to the Credit Facility ("Amendment No. 1") which added a new class of senior secured term loans under the Credit Facility in an aggregate principal amount of $ 400.0 million (the "Term Loan B"), among other modifications. The Term Loan B was issued at 97 percent of face value, resulting in $ 388.0 million of net proceeds, before debt financing costs. The interest rate on the Term Loan B is variable and is based on, at our option, adjusted Term SOFR Rate or adjusted Daily Simple SOFR, in each case plus 4.00 percent with a floor of 0.50 percent. The principal balance of the Term Loan B will be repayable in quarterly installments of $ 1.0 million each quarter beginning with the third quarter of 2023, with the balance due at maturity on April 10, 2030 . On April 11, 2023, we used the proceeds from the Term Loan B, cash on hand and available borrowing capacity under our existing Credit Facility to redeem all of the outstanding 2025 Notes and to pay any fees and expenses incurred in connection with the issuance of the Term Loan B and the redemption of the 2025 Notes. During the first quarter of 2023, we entered into an interest rate swap agreement with an aggregate notional value of $ 100.0 million in anticipation of the issuance of the Term Loan B in April 2023. The interest rate swap effectively converts the variable rate to a fixed rate of 7.478 percent for that portion of the loan. The swap agreement expires in April 2027 . |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 13. Asset Retirement Obligations We recognize asset retirement obligations for the removal and disposal of residues; dismantling of certain tanks required by governmental authorities; cleaning and dismantling costs for owned railcars; cleaning costs for leased rail-cars and barges; and site demolition, when required by governmental authorities or by contract. The following table reflects changes in the carrying values of asset retirement obligations: March 31, December 31, (Dollars in millions) Balance at beginning of year $ 15.5 $ 13.2 Accretion expense 0.2 1.1 Revision in estimated cash flows ( 0.5 ) 2.2 Cash expenditures 0.0 ( 1.0 ) Balance at end of year $ 15.2 $ 15.5 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 14. Leases We recognize lease obligations and associated right-of-use assets for existing non-cancelable leases. We have non-cancelable operating leases primarily associated with railcars, office and manufacturing facilities, storage tanks, ships, production equipment and vehicles. Many of our leases include both lease (e.g., fixed rent) and non-lease components (e.g., maintenance and services). For certain asset classes such as railcars, storage tanks and ships, we have separated the lease and non-lease components based on the estimated stand-alone price for each component. For the remaining asset classes, we have elected to account for these components as a single lease component. In addition, we exclude leases expiring within twelve months from balance sheet recognition. Many of our leases include one or more options to renew. We evaluate renewal options at the lease commencement date and regularly thereafter to determine if we are reasonably certain to exercise the option, in which case we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available to determine the present value of the lease payments. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Operating lease costs were $ 6.7 million and $ 7.5 million during the three months ended March 31, 2023 and 2022 , respectively. Variable lease costs were $ 0.9 million and $ 0.8 million during the three months ended March 31, 2023 and 2022, respectively. The following table presents information about the amount and timing of cash flows arising from our operating leases as of March 31, 2023: (Dollars in millions) 2023 $ 20.3 2024 22.7 2025 17.5 2026 12.8 2027 10.4 Thereafter 20.8 Total lease payments $ 104.5 Less: Interest ( 18.2 ) Present value of lease liabilities $ 86.3 Supplemental condensed consolidated balance sheet information related to leases is as follows: March 31, December 31, 2023 2022 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 85.9 $ 86.3 Current operating lease liabilities $ 20.9 $ 20.5 Operating lease liabilities 65.4 66.3 Total operating lease liabilities $ 86.3 $ 86.8 Weighted average remaining lease term, in years 5.5 5.6 Weighted average discount rate 6.8 % 7.2 % |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 15. Derivative Financial Instruments We utilize derivative instruments to manage exposures to risks that have been identified, measured and are capable of being mitigated. The primary risks that we manage by using derivative instruments are commodity price risk associated with copper, foreign currency exchange risk associated with a number of currencies, principally the U.S. dollar and New Zealand dollar and interest rate risk associated with variable rate borrowings. Swap contracts on copper are used to manage the price risk associated with forecasted purchases of materials used in our manufacturing processes. Generally, we will not hedge cash flow exposures for durations longer than 36 months and we have hedged certain volumes of copper through the end of 2024. We enter into foreign currency forward contracts to manage foreign currency risk associated with our receivable and payable balances in addition to foreign-denominated sales. We also enter into interest rate swaps to effectively convert portions of our variable interest debt into fixed rate debt. Our objective in using interest rate swaps is to add stability to interest expense and to manage our exposure to interest rate movements . Generally, we enter into master netting arrangements with the counterparties and offset net derivative positions with the same counterparties. Currently, our agreements do not require cash collateral. The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet. The derivative instruments are classified as current or noncurrent based upon the expected timing of cash flows and are subject to offset under our master netting arrangements. A derivative instrument's fair value is determined using significant other observable inputs, a Level 2 fair value measurement. We designate certain of our commodity swaps as cash flow hedges of forecasted purchases of commodities. We also designate our interest rate swaps as cash flow hedges on interest payments. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing hedge ineffectiveness are recognized in current earnings. For those commodity swaps where hedge accounting is not elected, the fair value of the commodity swap is recognized as an asset or liability on the consolidated balance sheet and the related gain or loss on the derivative is reported in current earnings. These amounts are classified in cost of sales in the condensed consolidated statement of operations. As of March 31, 2023 and December 31, 2022, we had outstanding copper swap contracts of the following amounts: Units Outstanding (in Pounds) Net Fair Value - Asset (in Dollars) March 31, December 31, March 31, December 31, (Amounts in millions) Cash flow hedges 28.4 21.3 $ 8.5 $ 2.5 Contracts where hedge accounting was not 4.5 6.0 1.6 0.6 Total 32.9 27.3 $ 10.1 $ 3.1 As of March 31, 2023 and December 31, 2022, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows: March 31, December 31, (Dollars in millions) Derivative contracts $ 8.5 $ 2.9 Other assets 1.6 0.5 Accrued liabilities 0.0 ( 0.3 ) Net asset on balance sheet $ 10.1 $ 3.1 Accumulated other comprehensive gain, net of tax $ 6.4 $ 1.8 We estimate that $ 5.3 million of unrealized gains, net of tax, related to commodity price hedging will be reclassified from other comprehensive income into earnings over the next twelve months . See Note 4 – “Comprehensive Income and Equity”, for amounts recorded in other comprehensive income and for amounts reclassified from accumulated other comprehensive loss into net income. For the three months ended March 31, 2023 and 2022, the unrealized (loss) gain from contracts where hedge accounting was not elected is as follows: Three Months Ended March 31, 2023 2022 (Dollars in millions) Gain (loss) from contracts where hedge accounting was not elected 1.1 ( 0.3 ) The fair value associated with forward contracts related to foreign currency that are not designated as hedges are immediately charged to earnings. These amounts are classified in cost of sales in the condensed consolidated statement of operations and comprehensive income. As of March 31, 2023 and December 31, 2022, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows: March 31, December 31, (Dollars in millions) Derivative contracts $ 0.1 $ 0.1 Accrued liabilities ( 0.2 ) ( 0.1 ) Net liability on balance sheet $ ( 0.1 ) $ 0.0 As of March 31, 2023 and December 31, 2022, the net currency units outstanding for these contracts were: March 31, December 31, (In millions) New Zealand Dollars NZD 3.3 NZD 3.3 United States Dollars USD 6.3 USD 9.3 During the first quarter of 2023, we entered into an interest rate swap agreement with an aggregate notional value of $ 100 million in anticipation of the issuance of our Term Loan B in April 2023 (see Note 12 – "Debt"), which effectively converts the variable rate to a fixed rate for that portion of the loan. The swap agreement expires in April 2027 . The interest rate swap has been designated as a cash flow hedge and involves the receipt of variable amounts from a counterparty in exchange for us making fixed rate payments over the life of the agreements without exchange of the underlying notional amount. As of March 31, 2023, the fair value of the outstanding interest rate swap is recorded in the balance sheet as follows: March 31, (Dollars in millions) Derivative contracts $ 1.1 Other long-term liabilities ( 0.9 ) Net asset on balance sheet $ 0.2 Accumulated other comprehensive gain, net of tax $ 0.1 We estimate that $ 0.8 million of unrealized gains, net of tax, related to interest rate swaps will be reclassified from other comprehensive income into earnings over the next twelve months . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 16. Commitments and Contingent Liabilities We are involved in litigation and various proceedings relating to environmental laws and regulations, product liability and other matters. Certain of these matters are discussed below. The ultimate resolution of these contingencies is subject to significant uncertainty and should we fail to prevail in any of these legal matters or should several of these legal matters be resolved against us in the same reporting period, these legal matters could, individually or in the aggregate, be material to the condensed consolidated financial statements. Legal Proceedings Coal Tar Pitch Cases . Koppers Inc. is one of several defendants in lawsuits filed in two states in which the plaintiffs claim they suffered a variety of illnesses (including cancer) as a result of exposure to coal tar pitch sold by the defendants. There were 51 plaintiffs in 27 cases pending as of March 31, 2023 and as of December 31, 2022. As of March 31, 2023 , there were 26 cases pending in the Court of Common Pleas of Allegheny County, Pennsylvania, and one case pending in the Circuit Court of Knox County, Tennessee. The plaintiffs in all 27 pending cases seek to recover compensatory damages. Plaintiffs in 24 of those cases also seek to recover punitive damages. The plaintiffs in the 26 cases filed in Pennsylvania seek unspecified damages in excess of the court’s minimum jurisdictional limit. The plaintiff in the Tennessee state court case seeks damages of $ 15.0 million. The other defendants in these lawsuits vary from case to case and include companies such as Beazer East, Inc. (“Beazer East”), Honeywell International Inc., Graftech International Holdings, Dow Chemical Company, UCAR Carbon Company, Inc., and SGL Carbon Corporation. Discovery is proceeding in these cases. No trial dates have been set in any of these cases. We have no t provided a reserve for the coal tar pitch lawsuits because, at this time, we cannot reasonably determine the probability of a loss, and the amount of loss, if any, cannot be reasonably estimated. The timing of resolution of these cases cannot be reasonably determined. Although Koppers Inc. is vigorously defending these cases, an unfavorable resolution of these matters may have a material adverse effect on our business, financial condition, cash flows and results of operations. Environmental and Other Litigation Matters We are subject to federal, state, local and foreign laws and regulations and potential liabilities relating to the protection of the environment and human health and safety including, among other things, the cleanup of contaminated sites, the treatment, storage and disposal of wastes, the discharge of effluent into waterways, the emission of substances into the air and various health and safety matters. We expect to incur substantial costs for ongoing compliance with such laws and regulations. We may also face governmental or third-party claims, or otherwise incur costs, relating to cleanup of, or for injuries resulting from, contamination at sites associated with past and present operations. We accrue for environmental liabilities when a determination can be made that a liability is probable and reasonably estimable. Environmental and Other Liabilities Retained or Assumed by Others. We have agreements with former owners of certain of our operating locations under which the former owners retained, assumed and/or agreed to indemnify us against certain environmental and other liabilities. The most significant of these agreements was entered into at Koppers Inc.’s formation on December 29, 1988 (the “Acquisition”). Under the related asset purchase agreement between Koppers Inc. and Beazer East, subject to certain limitations, Beazer East retained the responsibility for and agreed to indemnify Koppers Inc. against certain liabilities, damages, losses and costs, including, with certain limited exceptions, liabilities under and costs to comply with environmental laws to the extent attributable to acts or omissions occurring prior to the Acquisition and liabilities related to products sold by Beazer East prior to the Acquisition (the “Indemnity”). Beazer Limited, the parent company of Beazer East, unconditionally guaranteed Beazer East’s performance of the Indemnity pursuant to a guarantee. The Indemnity provides different mechanisms, subject to certain limitations, by which Beazer East is obligated to indemnify Koppers Inc. with regard to certain environmental, product and other liabilities and imposes certain conditions on Koppers Inc. before receiving such indemnification, including, in some cases, certain limitations regarding the time period as to which claims for indemnification can be brought. In July 2004, Koppers Inc. and Beazer East agreed to amend the environmental indemnification provisions of the December 29, 1988 asset purchase agreement to extend the indemnification period for pre-closing environmental liabilities, subject to the following paragraph, and agreed to share toxic tort litigation defense arising from any sites acquired from Beazer East. Qualified expenditures under the Indemnity are not subject to a monetary limit. Qualified expenditures under the Indemnity include (i) environmental cleanup liabilities required by third parties, such as investigation, remediation and closure costs, relating to pre-December 29, 1988 (“Pre-Closing”) acts or omissions of Beazer East or its predecessors; (ii) environmental claims by third parties for personal injuries, property damages and natural resources damages relating to Pre-Closing acts or omissions of Beazer East or its predecessors; (iii) punitive damages for the acts or omissions of Beazer East and its predecessors without regard to the date of the alleged conduct and (iv) product liability claims for products sold by Beazer East or its predecessors without regard to the date of the alleged conduct. The indemnification period ended July 14, 2019 (the “Claim Deadline”) and Beazer East may now tender certain third-party claims described in sections (i) and (ii) above to Koppers Inc. However, to the extent the third-party claims described in sections (i) and (ii) above were tendered to Beazer East by the Claim Deadline, Beazer East will continue to be required to pay the costs arising from such claims under the Indemnity. Furthermore, the Claim Deadline did not change the provisions of the Indemnity with respect to indemnification for non-environmental claims, such as product liability claims, which claims may continue to be tendered by Koppers Inc. to Beazer East. The Indemnity provides for the resolution of issues between Koppers Inc. and Beazer East by an arbitrator on an expedited basis upon the request of either party. The arbitrator could be asked, among other things, to make a determination regarding the allocation of environmental responsibilities between Koppers Inc. and Beazer East. Arbitration decisions under the Indemnity are final and binding on the parties. Contamination has been identified at most manufacturing and other sites of our subsidiaries. One site currently owned and operated by Koppers Inc. in the United States is listed on the National Priorities List promulgated under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”). Currently, at the properties acquired from Beazer East (which includes the National Priorities List site and all but one of the sites permitted under the Resource Conservation and Recovery Act (“RCRA”)), a significant portion of all investigative, cleanup and closure activities are being conducted and paid for by Beazer East pursuant to the terms of the Indemnity. In addition, other of Koppers Inc.’s sites are or have been operated under RCRA and various other environmental permits, and remedial and closure activities are being conducted at some of these sites. To date, the parties that retained, assumed and/or agreed to indemnify us against the liabilities referred to above, including Beazer East, have performed their obligations in all material respects. Periodically, issues have arisen between Koppers Inc. and Beazer East and/or other indemnitors that have been resolved without arbitration. Koppers Inc. and Beazer East engage in discussions from time to time that involve, among other things, the allocation of environmental costs related to certain operating and closed facilities. If for any reason (including disputed coverage or financial incapability) one or more of such parties fail to perform their obligations and we are held liable for or otherwise required to pay all or part of such liabilities without reimbursement, the imposition of such liabilities on us could have a material adverse effect on our business, financial condition, cash flows and results of operations. Furthermore, we could be required to record a contingent liability on our balance sheet with respect to such matters, which could result in a negative impact to our business, financial condition, cash flows and results of operations. Domestic Environmental Matters. Koppers Inc. has been named as one of the potentially responsible parties (“PRPs”) at the Portland Harbor CERCLA site located on the Willamette River in Oregon. Koppers Inc. operated a coal tar pitch terminal near the site. Koppers Inc. has responded to an EPA information request and has executed a PRP agreement which outlines a private process to develop an allocation of past and future costs among more than 80 parties to the site. Koppers Inc. believes it is a de minimis contributor at the site. The EPA issued its Record of Decision (“ROD”) in January 2017 for the Portland Harbor CERCLA site. The selected remedy includes a combination of sediment removal, capping, enhanced and monitored natural recovery and riverbank improvements. The ROD does not determine who is responsible for remediation costs. At that time, the net present value and undiscounted costs of the selected remedy as estimated in the ROD were approximately $ 1.1 billion and $ 1.7 billion, respectively. These costs are likely to increase given recent submissions to EPA regarding remedy design and because the remedy will not be implemented for several years. Responsibility for implementing and funding that work is yet to be determined. The funding of that work amongst the PRPs is the subject of a separate private allocation process which is ongoing. Additionally, Koppers Inc. is involved in two separate matters involving natural resource damages at the Portland Harbor site. One matter involves claims by the trustees to recover damages based upon an assessment of damages to natural resources caused by the releases of hazardous substances to the Willamette River. The assessment serves as the foundation to estimate liabilities for settlements of natural resource damages claims or litigation to recover from those who do not settle with the trustee groups. Koppers Inc. has been engaged in a process to resolve its natural resource damage liabilities for the assessment area. A second matter involves a lawsuit filed in January 2017 by the Yakama Nation in Oregon federal court. Yakama Nation seeks recovery for response costs and the costs of assessing injury to natural resources in waterways beyond the current assessment area. Following the most recent court rulings, the Yakama Nation case has been stayed pending completion of the private allocation process for the Portland Harbor CERCLA site. In September 2009, Koppers Inc. received a general notice letter stating that it may be a PRP at the Newark Bay CERCLA site. In January 2010, Koppers Inc. submitted a response to the general notice letter asserting that Koppers Inc. is a de minimis party at this site. We have accrued the estimated costs of participating in the PRP group at the Portland Harbor and Newark Bay CERCLA sites and estimated de minimis contributor settlement amounts at the sites totaling $ 4.0 million as of March 31, 2023. The actual cost could be materially higher as there has not been a determination of how those costs will be allocated among the PRPs at the sites. Accordingly, an unfavorable resolution of these matters may have a material adverse effect on our business, financial condition, cash flows and results of operations. There are two plant sites related to the Performance Chemicals business and one plant site related to the Utility and Industrial Products business in the United States where we have recorded environmental remediation liabilities for soil and groundwater contamination which occurred prior to our acquisition of the businesses. As of March 31, 2023 , our estimated environmental remediation liability for these acquired sites totals $ 3.9 million. Foreign Environmental Matters . There is one plant site related to the Performance Chemicals business located in Australia where we have recorded an environmental remediation liability for soil and groundwater contamination which occurred prior to the acquisition of the business. As of March 31, 2023 , our estimated environmental remediation liability for the acquired site totals $ 1.3 million. Environmental Reserves Rollforward. The following table reflects changes in the accrual for environmental remediation. A total of $ 2.5 million and $ 2.5 million are classified as current liabilities as of March 31, 2023 and December 31, 2022: Period ended March 31, December 31, (Dollars in millions) Balance at beginning of year $ 10.9 $ 10.7 Expense 0.0 1.6 Cash expenditures ( 0.1 ) ( 1.1 ) Currency translation 0.0 ( 0.3 ) Balance at end of year $ 10.8 $ 10.9 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | In March 2022, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method.” This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in financial statements. ASU No. 2022-01 is effective for periods beginning after December 15, 2022. The adoption of this ASU did not have a material impact on our financial statements as we principally utilize cash flow hedges. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Financial Instruments | Carrying amounts and the related estimated fair values of our financial instruments as of March 31, 2023 and December 31, 2022 are as follows: March 31, 2023 December 31, 2022 Fair Value Carrying Fair Value Carrying (Dollars in millions) Financial assets: Investments and other assets $ 1.3 $ 1.3 $ 1.3 $ 1.3 Financial liabilities: Long-term debt $ 884.1 $ 888.8 $ 801.1 $ 825.3 |
Comprehensive Income and Equi_2
Comprehensive Income and Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Comprehensive Income | Total comprehensive income for the three months ended March 31, 2023 and 2022 is summarized in the table below: Three Months Ended March 31, 2023 2022 (Dollars in millions) Net income $ 26.2 $ 18.8 Changes in other comprehensive income: Currency translation adjustment 2.7 5.8 Unrealized gain (loss) on cash flow hedges, net of tax 1.9 ) and $ 2.1 4.7 ( 4.3 ) Unrecognized pension net loss, net of tax expense of $( 0.1 ) and $( 0.1 ) 0.3 0.2 Comprehensive income 33.9 20.5 Comprehensive income attributable to noncontrolling interests 0.7 0.0 Comprehensive income attributable to Koppers $ 33.2 $ 20.5 |
Schedule of Change in Equity | The following tables present the change in equity for the three months ended March 31, 2023 and 2022, respectively: (Dollars in millions) Common Additional Retained Earnings Accumulated Other Comprehensive Loss Treasury Noncontrolling Total Balance at December 31, $ 0.2 $ 263.9 $ 360.2 $ ( 97.3 ) $ ( 127.6 ) $ 3.6 $ 403.0 Net income 0.0 0.0 25.5 0.0 0.0 0.7 26.2 Dividends 0.0 0.0 ( 1.5 ) 0.0 0.0 0.0 ( 1.5 ) Issuance of common stock 0.0 1.3 0.0 0.0 0.0 0.0 1.3 Repurchases of common 0.0 0.0 0.0 0.0 ( 5.8 ) 0.0 ( 5.8 ) Employee stock plans 0.0 4.0 0.0 0.0 0.0 0.0 4.0 Other comprehensive Currency translation 0.0 0.0 0.0 2.7 0.0 0.0 2.7 Unrealized gain on 0.0 0.0 0.0 4.7 0.0 0.0 4.7 Unrecognized pension 0.0 0.0 0.0 0.3 0.0 0.0 0.3 Balance at March 31, $ 0.2 $ 269.2 $ 384.2 $ ( 89.6 ) $ ( 133.4 ) $ 4.3 $ 434.9 (Dollars in millions) Common Additional Retained Earnings Accumulated Other Comprehensive Loss Treasury Noncontrolling Total Balance at December 31, $ 0.2 $ 249.5 $ 300.9 $ ( 40.0 ) $ ( 104.0 ) $ 4.2 $ 410.8 Net income 0.0 0.0 18.8 0.0 0.0 0.0 18.8 Dividends 0.0 0.0 ( 1.0 ) 0.0 0.0 0.0 ( 1.0 ) Issuance of common stock 0.0 0.3 0.0 0.0 0.0 0.0 0.3 Repurchases of common 0.0 0.0 0.0 0.0 ( 11.1 ) 0.0 ( 11.1 ) Employee stock plans 0.0 3.6 0.0 0.0 0.0 0.0 3.6 Other comprehensive Currency translation 0.0 0.0 0.0 5.9 0.0 ( 0.1 ) 5.8 Unrealized loss on 0.0 0.0 0.0 ( 4.3 ) 0.0 0.0 ( 4.3 ) Unrecognized pension 0.0 0.0 0.0 0.2 0.0 0.0 0.2 Balance at March 31, $ 0.2 $ 253.4 $ 318.7 $ ( 38.3 ) $ ( 115.1 ) $ 4.1 $ 423.0 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share: Three Months Ended March 31, 2023 2022 (Dollars in millions, except share amounts, in thousands) Net income attributable to Koppers $ 25.5 $ 18.8 Less: Loss on sale of discontinued operations 0.0 ( 0.5 ) Income from continuing operations attributable to Koppers $ 25.5 $ 19.3 Weighted average common shares outstanding: Basic 20,842 21,151 Effect of dilutive securities 543 541 Diluted 21,385 21,692 Earnings per common share – continuing operations: Basic earnings per common share $ 1.22 $ 0.91 Diluted earnings per common share 1.19 0.89 Other data: Antidilutive securities excluded from computation of diluted earnings 629 965 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options And Performance Award Fair Value Assumptions | We calculated the fair value of stock options on the date of grant using the Black-Scholes-Merton model and the assumptions listed below: January 2022 Grant January 2021 Grant March 2020 Grant Grant date price per share of stock $ 32.19 $ 29.84 $ 19.63 Expected dividend yield per share 0.00 % 0.00 % 0.00 % Expected life in years 6.76 6.64 6.40 Expected volatility 54.50 % 54.80 % 42.85 % Risk-free interest rate 1.52 % 0.59 % 0.87 % Grant date fair value per share of option $ 17.58 $ 15.79 $ 8.42 |
Summary of Performance Stock Units | The following table shows a summary of the performance stock units as of March 31, 2023: Performance Period Minimum Target Maximum Market Condition Units 2021 – 2023 66,968 115,036 163,104 2022 – 2024 17,788 117,937 218,086 2023 – 2025 0 78,411 156,822 Performance Condition Units 2023 – 2025 0 188,238 376,476 |
Summary of Status and Activity of Non-Vested Stock Units | The following table shows a summary of the status and activity of non-vested stock units for the three months ended March 31, 2023: Restricted Performance Total Weighted Average Non-vested at December 31, 2022 524,612 237,032 761,644 $ 32.40 Granted 201,640 267,073 468,713 $ 30.71 Credited from dividends 3,193 1,594 4,787 $ 26.80 Vested ( 176,248 ) 0 ( 176,248 ) $ 26.44 Forfeited ( 13,609 ) ( 6,077 ) ( 19,686 ) $ 32.50 Non-vested at March 31, 2023 539,588 499,622 1,039,210 $ 32.62 |
Summary of Status and Activity of Stock Options | The following table shows a summary of the status and activity of stock options for the three months ended March 31, 2023: Options Weighted Average Weighted Average Aggregate Intrinsic Outstanding at December 31, 2022 1,122,136 $ 27.05 Exercised ( 48,709 ) $ 19.01 Expired ( 36,397 ) $ 42.76 Outstanding at March 31, 2023 1,037,030 $ 26.88 4.71 $ 10.0 Exercisable at March 31, 2023 875,554 $ 26.63 4.10 $ 8.9 |
Schedule of Stock-based Compensation Expense Recognized | Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2023 and 2022 is as follows: Three Months Ended March 31, 2023 2022 (Dollars in millions) Stock-based compensation expense recognized: Selling, general and administrative expenses $ 4.0 $ 3.5 Less related income tax benefit 1.1 1.2 Decrease in net income attributable to Koppers $ 2.9 $ 2.3 Intrinsic value of exercised stock options $ 0.7 $ 0.0 Cash received from the exercise of stock options $ 0.9 $ 0.0 |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options And Performance Award Fair Value Assumptions | We calculated the fair value of the performance stock unit awards with a market condition on the date of grant using the assumptions listed below: January 2023 Grant January 2022 Grant January 2021 Grant Grant date price per share of performance $ 29.01 $ 32.19 $ 29.84 Expected volatility 66.30 % 66.90 % 68.70 % Risk-free interest rate 4.11 % 1.10 % 0.16 % Look-back period in years 3.00 3.00 3.00 Grant date fair value per share $ 39.51 $ 45.19 $ 41.50 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Results of Segment Operations | The following table sets forth certain sales and operating data, net of all intersegment transactions, for our segments for the periods indicated: Three Months Ended March 31, 2023 2022 (Dollars in millions) Revenues from external customers: Railroad and Utility Products and Services $ 213.1 $ 183.4 Performance Chemicals 146.9 136.4 Carbon Materials and Chemicals 153.4 139.5 Total $ 513.4 $ 459.3 Intersegment revenues: Performance Chemicals $ 5.6 $ 4.0 Carbon Materials and Chemicals 19.0 18.6 Total $ 24.6 $ 22.6 Depreciation and amortization expense: Railroad and Utility Products and Services $ 5.9 $ 5.4 Performance Chemicals 3.5 3.9 Carbon Materials and Chemicals 4.6 4.9 Total $ 14.0 $ 14.2 Adjusted EBITDA: Railroad and Utility Products and Services $ 15.8 $ 11.6 Performance Chemicals 26.3 20.9 Carbon Materials and Chemicals 19.4 20.1 Items excluded from the determination of segment profit: Impairment, restructuring and plant closure costs 0.0 ( 0.1 ) Gain on sale of assets 1.8 2.5 LIFO expense (1) ( 0.3 ) ( 1.7 ) Mark-to-market commodity hedging gains (losses) 1.1 ( 0.3 ) Interest expense ( 14.0 ) ( 9.8 ) Depreciation and amortization ( 14.0 ) ( 14.2 ) Income tax provision ( 9.9 ) ( 9.7 ) Discontinued operations 0.0 ( 0.5 ) Net income $ 26.2 $ 18.8 (1) The LIFO expense adjustment removes the entire impact of LIFO and effectively reflects the results as if we were on a FIFO inventory basis . |
Schedule of Segment Revenues for Significant Product Lines | The following table sets forth revenues for significant product lines, net of all intersegment transactions, for our segments for the periods indicated: Three Months Ended March 31, 2023 2022 (Dollars in millions) Railroad and Utility Products and Services: Railroad treated products $ 127.5 $ 105.3 Utility poles 63.3 56.2 Railroad infrastructure services 9.6 9.3 Rail joints 6.3 6.8 Other products 6.4 5.8 Total 213.1 183.4 Performance Chemicals: Wood preservative products 136.9 130.4 Other products 10.0 6.0 Total 146.9 136.4 Carbon Materials and Chemicals: Pitch and related products 100.7 77.8 Phthalic anhydride and other chemicals 19.0 25.3 Carbon black feedstock and distillates 17.7 19.0 Naphthalene 8.6 8.6 Other products 7.4 8.8 Total 153.4 139.5 Total $ 513.4 $ 459.3 |
Summary of Assets and Goodwill by Segments | The following table sets forth assets and goodwill allocated to each of our segments as of the dates indicated: March 31, December 31, (Dollars in millions) Segment assets: Railroad and Utility Products and Services $ 698.7 $ 660.8 Performance Chemicals 551.6 516.9 Carbon Materials and Chemicals 518.6 500.5 All other 31.7 33.2 Total $ 1,800.6 $ 1,711.4 Goodwill: Railroad and Utility Products and Services $ 120.6 $ 120.6 Performance Chemicals 173.4 173.4 Total $ 294.0 $ 294.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Taxes Reconciled with Federal Statutory Rate | The estimated annual effective income tax rate differs from the U.S. federal statutory tax rate due to: March 31, 2023 2022 Federal income tax rate 21.0 % 21.0 % Foreign earnings taxed at different rates 4.3 5.2 Nondeductible expenses 1.4 1.3 State income taxes, net of federal tax benefit 1.3 0.6 GILTI inclusion, net of foreign tax credits 0.4 0.7 Change in tax contingency reserves 0.0 0.4 Interest expense deduction limitation 0.0 3.7 Estimated annual effective income tax rate 28.4 % 32.9 % |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Components of Net Inventories | Net inventories as of March 31, 2023 and December 31, 2022 are summarized in the table below: March 31, December 31, (Dollars in millions) Raw materials $ 345.0 $ 318.5 Work in process 11.8 10.2 Finished goods 126.1 130.4 $ 482.9 $ 459.1 Less revaluation to LIFO 103.7 103.4 Net $ 379.2 $ 355.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment as of March 31, 2023 and December 31, 2022 are summarized in the table below: March 31, December 31, (Dollars in millions) Land $ 15.0 $ 15.0 Buildings 80.4 80.3 Machinery and equipment 929.5 924.1 $ 1,024.9 $ 1,019.4 Less accumulated depreciation 448.9 462.1 Net $ 576.0 $ 557.3 |
Pensions and Post-Retirement _2
Pensions and Post-Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost for Pension Plans | The following table provides the components of net periodic benefit cost for the pension plans for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (Dollars in millions) Service cost $ 0.4 $ 0.3 Interest cost 2.1 1.4 Expected return on plan assets ( 1.7 ) ( 2.0 ) Amortization of net loss 0.5 0.5 Net periodic benefit cost $ 1.3 $ 0.2 Defined contribution plan expense $ 2.5 $ 2.5 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Debt as of March 31, 2023 and December 31, 2022 was as follows: Weighted Maturity March 31, December 31, (Dollars in millions) Revolving Credit Facility 7.08 % 2027 388.8 325.3 Senior Notes due 2025 6.00 % 2025 500.0 500.0 Debt 888.8 825.3 Less unamortized debt issuance costs 7.8 7.6 Long-term debt $ 881.0 $ 817.7 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Carrying Values of Asset Retirement Obligations | The following table reflects changes in the carrying values of asset retirement obligations: March 31, December 31, (Dollars in millions) Balance at beginning of year $ 15.5 $ 13.2 Accretion expense 0.2 1.1 Revision in estimated cash flows ( 0.5 ) 2.2 Cash expenditures 0.0 ( 1.0 ) Balance at end of year $ 15.2 $ 15.5 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Amount and Timing of Cash Flows From Operating Leases | The following table presents information about the amount and timing of cash flows arising from our operating leases as of March 31, 2023: (Dollars in millions) 2023 $ 20.3 2024 22.7 2025 17.5 2026 12.8 2027 10.4 Thereafter 20.8 Total lease payments $ 104.5 Less: Interest ( 18.2 ) Present value of lease liabilities $ 86.3 |
Schedule of Supplemental Condensed Consolidated Balance Sheet Information Related to Leases | Supplemental condensed consolidated balance sheet information related to leases is as follows: March 31, December 31, 2023 2022 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 85.9 $ 86.3 Current operating lease liabilities $ 20.9 $ 20.5 Operating lease liabilities 65.4 66.3 Total operating lease liabilities $ 86.3 $ 86.8 Weighted average remaining lease term, in years 5.5 5.6 Weighted average discount rate 6.8 % 7.2 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Copper Swap Contracts | As of March 31, 2023 and December 31, 2022, we had outstanding copper swap contracts of the following amounts: Units Outstanding (in Pounds) Net Fair Value - Asset (in Dollars) March 31, December 31, March 31, December 31, (Amounts in millions) Cash flow hedges 28.4 21.3 $ 8.5 $ 2.5 Contracts where hedge accounting was not 4.5 6.0 1.6 0.6 Total 32.9 27.3 $ 10.1 $ 3.1 |
Schedule of Fair Value of Outstanding Copper Swap Contracts Recorded in Balance Sheet | As of March 31, 2023 and December 31, 2022, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows: March 31, December 31, (Dollars in millions) Derivative contracts $ 8.5 $ 2.9 Other assets 1.6 0.5 Accrued liabilities 0.0 ( 0.3 ) Net asset on balance sheet $ 10.1 $ 3.1 Accumulated other comprehensive gain, net of tax $ 6.4 $ 1.8 |
Schedule of Unrealized Gain (Loss) from Contract Where Hedge Accounting Was Not Elected | For the three months ended March 31, 2023 and 2022, the unrealized (loss) gain from contracts where hedge accounting was not elected is as follows: Three Months Ended March 31, 2023 2022 (Dollars in millions) Gain (loss) from contracts where hedge accounting was not elected 1.1 ( 0.3 ) |
Schedule of Fair Value of Outstanding Foreign Currency Forward Contracts | As of March 31, 2023 and December 31, 2022, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows: March 31, December 31, (Dollars in millions) Derivative contracts $ 0.1 $ 0.1 Accrued liabilities ( 0.2 ) ( 0.1 ) Net liability on balance sheet $ ( 0.1 ) $ 0.0 |
Summary of Net Currency Units Outstanding | As of March 31, 2023 and December 31, 2022, the net currency units outstanding for these contracts were: March 31, December 31, (In millions) New Zealand Dollars NZD 3.3 NZD 3.3 United States Dollars USD 6.3 USD 9.3 |
Schedule of Fair Value of Outstanding Interest Rate Swaps Recorded in Balance Sheet | March 31, (Dollars in millions) Derivative contracts $ 1.1 Other long-term liabilities ( 0.9 ) Net asset on balance sheet $ 0.2 Accumulated other comprehensive gain, net of tax $ 0.1 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Accrued Liability for Environmental Matters | The following table reflects changes in the accrual for environmental remediation. A total of $ 2.5 million and $ 2.5 million are classified as current liabilities as of March 31, 2023 and December 31, 2022: Period ended March 31, December 31, (Dollars in millions) Balance at beginning of year $ 10.9 $ 10.7 Expense 0.0 1.6 Cash expenditures ( 0.1 ) ( 1.1 ) Currency translation 0.0 ( 0.3 ) Balance at end of year $ 10.8 $ 10.9 |
Plant Closure and Divestitures
Plant Closure and Divestitures - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Gain on sale | $ 1.8 | $ 2.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value [Member] | ||
Financial assets: | ||
Investments and other assets | $ 1.3 | $ 1.3 |
Financial liabilities: | ||
Long-term debt | 884.1 | 801.1 |
Carrying Value [Member] | ||
Financial assets: | ||
Investments and other assets | 1.3 | 1.3 |
Financial liabilities: | ||
Long-term debt | $ 888.8 | $ 825.3 |
Comprehensive Income and Equi_3
Comprehensive Income and Equity - Schedule of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Net income | $ 26.2 | $ 18.8 |
Changes in other comprehensive income: | ||
Currency translation adjustment | 2.7 | 5.8 |
Unrealized gain (loss) on cash flow hedges, net of tax (expense) benefit of $(1.9) and $2.1 | 4.7 | (4.3) |
Unrecognized pension net loss, net of tax expense of $(0.1) and $(0.1) | 0.3 | 0.2 |
comprehensive income | 33.9 | 20.5 |
Comprehensive income attributable to noncontrolling interests | 0.7 | 0 |
Comprehensive income attributable to Koppers | $ 33.2 | $ 20.5 |
Comprehensive Income and Equi_4
Comprehensive Income and Equity - Schedule of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Tax (expense) benefit, unrealized gain (loss) on cash flow hedges | $ (1.9) | $ 2.1 |
Tax expense, unrecognized pension net loss | $ (0.1) | $ (0.1) |
Comprehensive Income and Equi_5
Comprehensive Income and Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
May 04, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Loss related to derivative instrument | $ 1.7 | $ 10.1 | |
Subsequent Event [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Quarterly dividend declared per common share | $ 0.06 | ||
Quarterly dividend, declared date | May 04, 2023 | ||
Quarterly dividend, payable date | Jun. 12, 2023 | ||
Quarterly dividend, payable date of record | May 26, 2023 |
Comprehensive Income and Equi_6
Comprehensive Income and Equity - Schedule of Change in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 403 | $ 410.8 | $ 410.8 |
Net income | 26.2 | 18.8 | |
Dividends | (1.5) | (1) | |
Issuance of common stock | 1.3 | 0.3 | |
Repurchases of common stock | (5.8) | (11.1) | |
Employee stock plans | 4 | 3.6 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 2.7 | 5.8 | |
Unrealized gain (loss) on cash flow hedges | 4.7 | (4.3) | |
Unrecognized pension net loss | 0.3 | 0.2 | |
Balance | 434.9 | 423 | 403 |
Common Stock [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | 0.2 | 0.2 | 0.2 |
Net income | 0 | 0 | |
Dividends | 0 | 0 | |
Issuance of common stock | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Employee stock plans | 0 | 0 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 0 | 0 | |
Unrealized gain (loss) on cash flow hedges | 0 | 0 | |
Unrecognized pension net loss | 0 | 0 | |
Balance | 0.2 | 0.2 | 0.2 |
Additional Paid-In Capital [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | 263.9 | 249.5 | 249.5 |
Net income | 0 | 0 | |
Dividends | 0 | 0 | |
Issuance of common stock | 1.3 | 0.3 | |
Repurchases of common stock | 0 | 0 | |
Employee stock plans | 4 | 3.6 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 0 | 0 | |
Unrealized gain (loss) on cash flow hedges | 0 | 0 | |
Unrecognized pension net loss | 0 | 0 | |
Balance | 269.2 | 253.4 | 263.9 |
Retained Earnings [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | 360.2 | 300.9 | 300.9 |
Net income | 25.5 | 18.8 | |
Dividends | (1.5) | (1) | |
Issuance of common stock | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Employee stock plans | 0 | 0 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 0 | 0 | |
Unrealized gain (loss) on cash flow hedges | 0 | 0 | |
Unrecognized pension net loss | 0 | 0 | |
Balance | 384.2 | 318.7 | 360.2 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (97.3) | (40) | (40) |
Net income | 0 | 0 | |
Dividends | 0 | 0 | |
Issuance of common stock | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Employee stock plans | 0 | 0 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 2.7 | 5.9 | |
Unrealized gain (loss) on cash flow hedges | 4.7 | (4.3) | |
Unrecognized pension net loss | 0.3 | 0.2 | |
Balance | (89.6) | (38.3) | (97.3) |
Treasury Stock [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (127.6) | (104) | (104) |
Net income | 0 | 0 | |
Dividends | 0 | 0 | |
Issuance of common stock | 0 | 0 | |
Repurchases of common stock | (5.8) | (11.1) | |
Employee stock plans | 0 | 0 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 0 | 0 | |
Unrealized gain (loss) on cash flow hedges | 0 | 0 | |
Unrecognized pension net loss | 0 | 0 | |
Balance | (133.4) | (115.1) | (127.6) |
Noncontrolling Interests [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | 3.6 | 4.2 | 4.2 |
Net income | 0.7 | 0 | |
Dividends | 0 | 0 | |
Issuance of common stock | 0 | 0 | |
Repurchases of common stock | 0 | 0 | |
Employee stock plans | 0 | 0 | |
Other comprehensive (loss) income | |||
Currency translation adjustment | 0 | (0.1) | |
Unrealized gain (loss) on cash flow hedges | 0 | 0 | |
Unrecognized pension net loss | 0 | 0 | |
Balance | $ 4.3 | $ 4.1 | $ 3.6 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Computation of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Koppers | $ 25.5 | $ 18.8 |
Less: Loss on sale of discontinued operations | 0 | (0.5) |
Income from continuing operations attributable to Koppers | $ 25.5 | $ 19.3 |
Weighted average common shares outstanding: | ||
Basic | 20,842 | 21,151 |
Effect of dilutive securities | 543 | 541 |
Diluted | 21,385 | 21,692 |
Earnings per common share – continuing operations: | ||
Basic earnings per common share | $ 1.22 | $ 0.91 |
Diluted earnings per common share | $ 1.19 | $ 0.89 |
Other data: | ||
Antidilutive securities excluded from computation of diluted earnings per common share | 629 | 965 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options issued | 0 |
Future compensation expense related to non-vested stock-based compensation arrangements | $ | $ 28.2 |
Future compensation expense, weighted-average expected period of recognition in months | 28 months |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based awards, vesting period | 3 years |
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based awards, vesting period | 1 year |
Restricted Stock Units (RSUs) [Member] | Employee [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based awards, vesting period | 4 years |
Restricted Stock Units (RSUs) [Member] | Employee [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based awards, vesting period | 2 years |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting performance stock units if minimum performance criteria are not achieved | 0 |
Stock options, term in years | 3 years |
Performance Stock Units [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award earned by participants | 200% |
Performance Stock Units [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award earned by participants | 0% |
Employee Stock Option [Member] | Grants in March 2015 and Thereafter [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options, term in years | 10 years |
Employee Stock Option [Member] | Executive Officer [Member] | Grants in March 2015 and Thereafter [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based awards, vesting period | 4 years |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Award Fair Value Assumptions (Detail) | 3 Months Ended |
Mar. 31, 2023 $ / shares | |
January 2023 Grant [Member] | Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 29.01 |
Expected volatility | 66.30% |
Risk-free interest rate | 4.11% |
Look-back period in years | 3 years |
Grant date fair value per share | $ 39.51 |
January 2022 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 32.19 |
Expected volatility | 54.50% |
Risk-free interest rate | 1.52% |
Grant date fair value per share | $ 17.58 |
January 2022 Grant [Member] | Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 32.19 |
Expected volatility | 66.90% |
Risk-free interest rate | 1.10% |
Look-back period in years | 3 years |
Grant date fair value per share | $ 45.19 |
January 2021 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 29.84 |
Expected volatility | 54.80% |
Risk-free interest rate | 0.59% |
Grant date fair value per share | $ 15.79 |
January 2021 Grant [Member] | Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 29.84 |
Expected volatility | 68.70% |
Risk-free interest rate | 0.16% |
Look-back period in years | 3 years |
Grant date fair value per share | $ 41.50 |
March 2020 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 19.63 |
Expected volatility | 42.85% |
Risk-free interest rate | 0.87% |
Grant date fair value per share | $ 8.42 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Performance Stock Units (Detail) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 1,039,210 | 761,644 |
Performance Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 499,622 | 237,032 |
2021 - 2023 [Member] | Minimum [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 66,968 | |
2021 - 2023 [Member] | Target Shares [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 115,036 | |
2021 - 2023 [Member] | Maximum [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 163,104 | |
2022 - 2024 [Member] | Minimum [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 17,788 | |
2022 - 2024 [Member] | Target Shares [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 117,937 | |
2022 - 2024 [Member] | Maximum [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 218,086 | |
2023 - 2025 [Member] | Minimum [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 0 | |
2023 - 2025 [Member] | Minimum [Member] | Performance Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 0 | |
2023 - 2025 [Member] | Target Shares [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 78,411 | |
2023 - 2025 [Member] | Target Shares [Member] | Performance Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 188,238 | |
2023 - 2025 [Member] | Maximum [Member] | Market Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 156,822 | |
2023 - 2025 [Member] | Maximum [Member] | Performance Condition Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 376,476 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Status and Activity of Non-Vested Stock Units (Detail) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Beginning Balance | 761,644 |
Granted | 468,713 |
Credited from dividends | 4,787 |
Vested | (176,248) |
Forfeited | (19,686) |
Non-vested, Ending Balance | 1,039,210 |
Beginning Balance, Non-vested, Weighted Average Grant Date Fair Value per Unit | $ / shares | $ 32.40 |
Granted, Weighted Average Grant Date Fair Value per Unit | $ / shares | 30.71 |
Credited from dividends, Weighted Average Grant Date Fair Value per Unit | $ / shares | 26.80 |
Vested, Weighted Average Grant Date Fair Value per Unit | $ / shares | 26.44 |
Forfeited, Weighted Average Grant Date Fair Value per Unit | $ / shares | 32.50 |
Ending Balance, Non-vested, Weighted Average Grant Date Fair Value per Unit | $ / shares | $ 32.62 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Beginning Balance | 524,612 |
Granted | 201,640 |
Credited from dividends | 3,193 |
Vested | (176,248) |
Forfeited | (13,609) |
Non-vested, Ending Balance | 539,588 |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Beginning Balance | 237,032 |
Granted | 267,073 |
Credited from dividends | 1,594 |
Vested | 0 |
Forfeited | (6,077) |
Non-vested, Ending Balance | 499,622 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options Fair Value Assumptions (Detail) | 3 Months Ended |
Mar. 31, 2023 $ / shares | |
January 2022 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 32.19 |
Expected dividend yield per share | 0% |
Expected life in years | 6 years 9 months 3 days |
Expected volatility | 54.50% |
Risk-free interest rate | 1.52% |
Grant date fair value per share of option awards | $ 17.58 |
January 2021 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 29.84 |
Expected dividend yield per share | 0% |
Expected life in years | 6 years 7 months 20 days |
Expected volatility | 54.80% |
Risk-free interest rate | 0.59% |
Grant date fair value per share of option awards | $ 15.79 |
March 2020 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 19.63 |
Expected dividend yield per share | 0% |
Expected life in years | 6 years 4 months 24 days |
Expected volatility | 42.85% |
Risk-free interest rate | 0.87% |
Grant date fair value per share of option awards | $ 8.42 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Status and Activity of Stock Options (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Options, Outstanding at December 31, 2022 | shares | 1,122,136 |
Option, Exercised | shares | (48,709) |
Options, Expired | shares | (36,397) |
Options, Outstanding at March 31, 2023 | shares | 1,037,030 |
Options, Exercisable at March 31, 2023 | shares | 875,554 |
Weighted Average Exercise Price per Option, Outstanding at December 31, 2022 | $ / shares | $ 27.05 |
Weighted Average Exercise Price per Option, Exercised | $ / shares | 19.01 |
Weighted Average Exercise Price per Option, Expired | $ / shares | 42.76 |
Weighted Average Exercise Price per Option, Outstanding at March 31, 2023 | $ / shares | 26.88 |
Weighted Average Exercise Price per Option, Exercisable at March 31, 2023 | $ / shares | $ 26.63 |
Weighted Average Remaining Contractual Term, Outstanding at March 31, 2023 | 4 years 8 months 15 days |
Weighted Average Remaining Contractual Term, Exercisable at March 31, 2023 | 4 years 1 month 6 days |
Aggregate Intrinsic Value, Outstanding at March 31, 2023 | $ | $ 10 |
Aggregate Intrinsic Value, Exercisable at March 31, 2023 | $ | $ 8.9 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-based compensation expense recognized: | ||
Less related income tax benefit | $ 1.1 | $ 1.2 |
Decrease in net income attributable to Koppers | 2.9 | 2.3 |
Intrinsic value of exercised stock options | 0.7 | 0 |
Cash received from the exercise of stock options | 0.9 | 0 |
Selling, General and Administrative Expenses [Member] | ||
Stock-based compensation expense recognized: | ||
Stock-based compensation expense | $ 4 | $ 3.5 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Contract with customer, asset, net, current | $ | $ 9.2 | $ 8.3 |
Segment Information - Summary o
Segment Information - Summary of Results of Segment Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from external customers: | ||
Net sales | $ 513.4 | $ 459.3 |
Depreciation and amortization expense | 14 | 14.2 |
Items excluded from the determination of segment profit: | ||
Impairment, restructuring and plant closure costs | 0 | (0.1) |
Gain on sale of assets | 1.8 | 2.5 |
LIFO expense | (0.3) | (1.7) |
Mark-to-market commodity hedging gains (losses) | 1.1 | (0.3) |
Interest expense | (14) | (9.8) |
Depreciation and amortization | (14) | (14.2) |
Income tax provision | (9.9) | (9.7) |
Discontinued operations | 0 | (0.5) |
Net income | 26.2 | 18.8 |
Railroad and Utility Products and Services [Member] | ||
Revenues from external customers: | ||
Net sales | 213.1 | 183.4 |
Performance Chemicals [Member] | ||
Revenues from external customers: | ||
Net sales | 146.9 | 136.4 |
Carbon Materials and Chemicals [Member] | ||
Revenues from external customers: | ||
Net sales | 153.4 | 139.5 |
Operating Segments [Member] | Railroad and Utility Products and Services [Member] | ||
Revenues from external customers: | ||
Net sales | 213.1 | 183.4 |
Depreciation and amortization expense | 5.9 | 5.4 |
Adjusted EBITDA: | ||
Adjusted EBITDA | 15.8 | 11.6 |
Operating Segments [Member] | Performance Chemicals [Member] | ||
Revenues from external customers: | ||
Net sales | 146.9 | 136.4 |
Depreciation and amortization expense | 3.5 | 3.9 |
Adjusted EBITDA: | ||
Adjusted EBITDA | 26.3 | 20.9 |
Operating Segments [Member] | Carbon Materials and Chemicals [Member] | ||
Revenues from external customers: | ||
Net sales | 153.4 | 139.5 |
Depreciation and amortization expense | 4.6 | 4.9 |
Adjusted EBITDA: | ||
Adjusted EBITDA | 19.4 | 20.1 |
Intersegment [Member] | ||
Revenues from external customers: | ||
Net sales | 24.6 | 22.6 |
Intersegment [Member] | Performance Chemicals [Member] | ||
Revenues from external customers: | ||
Net sales | 5.6 | 4 |
Intersegment [Member] | Carbon Materials and Chemicals [Member] | ||
Revenues from external customers: | ||
Net sales | $ 19 | $ 18.6 |
Segment Information - Schedule
Segment Information - Schedule of Segment Revenues for Significant Product Lines (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 513.4 | $ 459.3 |
Railroad and Utility Products and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 213.1 | 183.4 |
Railroad and Utility Products and Services [Member] | Railroad Treated Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 127.5 | 105.3 |
Railroad and Utility Products and Services [Member] | Utility Poles [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 63.3 | 56.2 |
Railroad and Utility Products and Services [Member] | Railroad Infrastructure Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9.6 | 9.3 |
Railroad and Utility Products and Services [Member] | Rail Joints [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6.3 | 6.8 |
Railroad and Utility Products and Services [Member] | Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 6.4 | 5.8 |
Performance Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 146.9 | 136.4 |
Performance Chemicals [Member] | Wood Preservative Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 136.9 | 130.4 |
Performance Chemicals [Member] | Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 10 | 6 |
Carbon Materials and Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 153.4 | 139.5 |
Carbon Materials and Chemicals [Member] | Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7.4 | 8.8 |
Carbon Materials and Chemicals [Member] | Pitch and Related Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 100.7 | 77.8 |
Carbon Materials and Chemicals [Member] | Phthalic Anhydride and Other Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 19 | 25.3 |
Carbon Materials and Chemicals [Member] | Carbon Black Feedstock and Distillates [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 17.7 | 19 |
Carbon Materials and Chemicals [Member] | Naphthalene [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 8.6 | $ 8.6 |
Segment Information - Summary_2
Segment Information - Summary of Assets and Goodwill by Segments (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | $ 1,800.6 | $ 1,711.4 |
Goodwill | 294 | 294 |
Railroad and Utility Products and Services [Member] | Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 698.7 | 660.8 |
Goodwill | 120.6 | 120.6 |
Performance Chemicals [Member] | Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 551.6 | 516.9 |
Goodwill | 173.4 | 173.4 |
Carbon Materials and Chemicals [Member] | Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | 518.6 | 500.5 |
All Other [Member] | Operating Segments [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Assets | $ 31.7 | $ 33.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Estimated annual effective income tax rate | 28.40% | 32.90% | |
Income taxes as a percentage of pretax income | 27.40% | 33.40% | |
Interest expense (income) and related penalties | $ 0.1 | $ (0.1) | |
Unrecognized tax benefits | 1.4 | 1.4 | |
Unrecognized tax benefits with impact on the effective tax rate | $ 1.4 | $ 1.4 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes Reconciled with Federal Statutory Rate (Detail) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21% | 21% |
Foreign earnings taxed at different rates | 4.30% | 5.20% |
Nondeductible expenses | 1.40% | 1.30% |
State income taxes, net of federal tax benefit | 1.30% | 0.60% |
GILTI inclusion, net of foreign tax credits | 0.40% | 0.70% |
Change in tax contingency reserves | 0% | 0.40% |
Interest expense deduction limitation | 0% | 3.70% |
Estimated annual effective income tax rate | 28.40% | 32.90% |
Inventories - Components of Net
Inventories - Components of Net Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 345 | $ 318.5 |
Work in process | 11.8 | 10.2 |
Finished goods | 126.1 | 130.4 |
Inventories, gross | 482.9 | 459.1 |
Less revaluation to LIFO | 103.7 | 103.4 |
Net | $ 379.2 | $ 355.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,024.9 | $ 1,019.4 |
Less accumulated depreciation | 448.9 | 462.1 |
Net | 576 | 557.3 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 15 | 15 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 80.4 | 80.3 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 929.5 | $ 924.1 |
Pensions and Post-Retirement _3
Pensions and Post-Retirement Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 USD ($) | Mar. 31, 2023 Plan | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of domestic non-qualified defined benefit plans | Plan | 3 | |
Premium payment | $ | $ 67.8 | |
Pension settlement loss | $ | $ 20 | |
Salaried and Hourly Employees [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of domestic non-qualified defined benefit plans | Plan | 2 |
Pensions and Post-Retirement _4
Pensions and Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Postemployment Benefits [Abstract] | ||
Service cost | $ 0.4 | $ 0.3 |
Interest cost | 2.1 | 1.4 |
Expected return on plan assets | (1.7) | (2) |
Amortization of net loss | 0.5 | 0.5 |
Net periodic benefit cost | 1.3 | 0.2 |
Defined contribution plan expense | $ 2.5 | $ 2.5 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debt | $ 888.8 | $ 825.3 |
Less unamortized debt issuance costs | 7.8 | 7.6 |
Long-term debt | $ 881 | 817.7 |
7.08 Percent Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 7.08% | |
Debt, Maturity | 2027 | |
Debt | $ 388.8 | 325.3 |
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 6% | |
Debt, Maturity | 2025 | |
Debt | $ 500 | $ 500 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Apr. 10, 2023 | Feb. 15, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 730,000,000 | ||||
Long term debt | $ 888,800,000 | $ 825,300,000 | |||
Interest Rate Swap [Member] | Term Loan B [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, notional value | $ 100,000,000 | ||||
Fixed interest rate of loan portion | 7.478% | ||||
Derivative, maturity date | Apr. 30, 2027 | ||||
Senior Secured Credit Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit, amount outstanding | $ 18,000,000 | ||||
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, payment terms | The 2025 Notes pay interest semi-annually in arrears on February 15 and August 15 and will mature on February 15, 2025 unless earlier redeemed or repurchased. | ||||
Long term debt | $ 500,000,000 | $ 500,000,000 | |||
Debt instrument, redemption price percentage | 101.50% | ||||
Debt maturity date | Feb. 15, 2025 | ||||
Revolving Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | 800,000,000 | ||||
Swingline Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility | $ 50,000,000 | ||||
Revolving Credit Facility [Member] | Senior Secured Credit Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, unused borrowing capacity | $ 400,000,000 | ||||
Subsequent Event [Member] | Amendment No. 1 to Credit Facility [Member] | Term Loan B [Member] | |||||
Debt Instrument [Line Items] | |||||
Secured term loan | $ 400,000,000 | ||||
Debt instrument, payment terms | The principal balance of the Term Loan B will be repayable in quarterly installments of $1.0 million each quarter beginning with the third quarter of 2023, with the balance due at maturity on April 10, 2030. | ||||
Percentage of face value of issued debt | 97% | ||||
Net proceeds from secured debt, before debt financing costs | $ 388,000,000 | ||||
Debt instrument, basis spread on variable rate | 4% | ||||
Debt instrument, floor interest rate | 0.50% | ||||
Debt instrument, periodic principal payment amount | $ 1,000,000 | ||||
Debt instrument, frequency of periodic payment | quarterly | ||||
Debt maturity date | Apr. 10, 2030 |
Asset Retirement Obligations -
Asset Retirement Obligations - Schedule of Changes in Carrying Values of Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 15.5 | $ 13.2 |
Accretion expense | 0.2 | 1.1 |
Revision in estimated cash flows | (0.5) | 2.2 |
Cash expenditures | 0 | (1) |
Balance at end of year | $ 15.2 | $ 15.5 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 6.7 | $ 7.5 |
Variable lease costs | $ 0.9 | $ 0.8 |
Leases - Summary of Amount and
Leases - Summary of Amount and Timing of Cash Flows From Operating Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 20.3 | |
2024 | 22.7 | |
2025 | 17.5 | |
2026 | 12.8 | |
2027 | 10.4 | |
Thereafter | 20.8 | |
Total lease payments | 104.5 | |
Less: Interest | (18.2) | |
Present value of lease liabilities | $ 86.3 | $ 86.8 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Condensed Consolidated Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Operating leases: | ||
Operating lease right-of-use assets | $ 85.9 | $ 86.3 |
Current operating lease liabilities | 20.9 | 20.5 |
Operating lease liabilities | 65.4 | 66.3 |
Total operating lease liabilities | $ 86.3 | $ 86.8 |
Weighted average remaining lease term, in years | 5 years 6 months | 5 years 7 months 6 days |
Weighted average discount rate | 6.80% | 7.20% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Derivative [Line Items] | |
Maximum period hedged in cash flow hedge | 36 months |
Unrealized gains, reclassification period | 12 months |
Unrealized gains, net of tax, expected to be reclassified from other comprehensive income into earnings | $ 5,300,000 |
Interest Rate Swaps [Member] | |
Derivative [Line Items] | |
Unrealized gains, reclassification period | 12 months |
Unrealized gains, net of tax, expected to be reclassified from other comprehensive income into earnings | $ 800,000 |
Interest Rate Swaps [Member] | Term Loan B [Member] | |
Derivative [Line Items] | |
Derivative, notional value | $ 100,000,000 |
Derivative, maturity date | Apr. 30, 2027 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Copper Swap Contracts (Detail) - Copper Swap Contracts [Member] £ in Millions, $ in Millions | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) |
Derivatives Fair Value [Line Items] | ||||
Copper Swap Contracts Units Outstanding | £ | £ 32.9 | £ 27.3 | ||
Net Fair Value - Asset | $ | $ 10.1 | $ 3.1 | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivatives Fair Value [Line Items] | ||||
Copper Swap Contracts Units Outstanding | £ | 28.4 | 21.3 | ||
Net Fair Value - Asset | $ | 8.5 | 2.5 | ||
Contracts Where Hedge Accounting Was not Elected [Member] | ||||
Derivatives Fair Value [Line Items] | ||||
Copper Swap Contracts Units Outstanding | £ | £ 4.5 | £ 6 | ||
Net Fair Value - Asset | $ | $ 1.6 | $ 0.6 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Fair Value of Outstanding Copper Swap Contracts Recorded in Balance Sheet (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Accumulated other comprehensive gain, net of tax | $ 4.7 | $ (4.3) | |
Copper Swap Contracts [Member] | |||
Derivative [Line Items] | |||
Net Fair Value - Asset (Liability) | 10.1 | $ 3.1 | |
Accumulated other comprehensive gain, net of tax | 6.4 | 1.8 | |
Copper Swap Contracts [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Net Fair Value - Asset (Liability) | 1.6 | 0.5 | |
Copper Swap Contracts [Member] | Accrued Liabilities [Member] | |||
Derivative [Line Items] | |||
Net Fair Value - Asset (Liability) | 0 | (0.3) | |
Copper Swap Contracts [Member] | Derivative Contracts [Member] | |||
Derivative [Line Items] | |||
Net Fair Value - Asset (Liability) | $ 8.5 | $ 2.9 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Unrealized Gain (Loss) from Contract Where Hedge Accounting Was Not Elected (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Hedges [Member] | Contracts Where Hedge Accounting Was not Elected [Member] | ||
Derivative [Line Items] | ||
Gain (loss) from contracts where hedge accounting was not elected | $ 1.1 | $ (0.3) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Fair Value of Outstanding Foreign Currency Forward Contracts (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Not designated gross derivative liability | $ (0.1) | $ 0 |
Forward Contracts [Member] | Accrued Liabilities [Member] | ||
Derivative [Line Items] | ||
Not designated gross derivative liability | (0.2) | (0.1) |
Forward Contracts [Member] | Derivative Contracts [Member] | ||
Derivative [Line Items] | ||
Not designated gross derivative liability | $ 0.1 | $ 0.1 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Summary of Net Currency Units Outstanding (Detail) | Mar. 31, 2023 NZD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 NZD ($) | Dec. 31, 2022 USD ($) |
Offsetting [Abstract] | ||||
Net currency units outstanding | $ 3,300,000 | $ 6,300,000 | $ 3,300,000 | $ 9,300,000 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Schedule of Fair Value of Outstanding Interest Rate Swaps Recorded in Balance Sheet (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Accumulated other comprehensive gain, net of tax | $ 4.7 | $ (4.3) |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Net asset on balance sheet | 0.2 | |
Accumulated other comprehensive gain, net of tax | 0.1 | |
Derivative Contracts [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Net asset on balance sheet | 1.1 | |
Other Long-Term Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Net asset on balance sheet | $ (0.9) |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) Plant Case Plaintiff State Party Site | Dec. 31, 2022 USD ($) Plaintiff Case | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||
Number of states with new claims filed | State | 2 | ||
Number of plaintiffs | Plaintiff | 51 | 51 | |
Environmental remediation and regulation liability | $ 10,800,000 | $ 10,900,000 | $ 10,700,000 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Liabilities Current | ||
Accrued liability for environmental matters, current | $ 2,500,000 | $ 2,500,000 | |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities Current | Liabilities Current | |
Portland Harbor and Newark Bay CERCLA sites [Member] | |||
Loss Contingencies [Line Items] | |||
Costs of participating in PRP group | $ 4,000,000 | ||
Beazer East [Member] | |||
Loss Contingencies [Line Items] | |||
Sites listed on National Priorities List | Site | 1 | ||
Compensatory Damages [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases | Case | 27 | ||
Punitive Damages [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases | Case | 24 | ||
Coal Tar Pitch Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases | Case | 27 | 27 | |
Reserve for legal proceedings | $ 0 | ||
Pennsylvania [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases | Case | 26 | ||
Pennsylvania [Member] | Coal Tar Pitch Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases | Case | 26 | ||
Sweetwater, Tennessee [Member] | Coal Tar Pitch Cases [Member] | |||
Loss Contingencies [Line Items] | |||
Number of cases | Case | 1 | ||
Compensatory damages | $ 15,000,000 | ||
Oregon [Member] | |||
Loss Contingencies [Line Items] | |||
Number of potential responsible parties | Party | 80 | ||
Net present value of selected remedy estimation | $ 1,100,000,000 | ||
Undiscounted cost of selected remedy estimation | 1,700,000,000 | ||
United States [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation and regulation liability | $ 3,900,000 | ||
United States [Member] | Performance Chemicals [Member] | |||
Loss Contingencies [Line Items] | |||
Number of plant sites | Plant | 2 | ||
United States [Member] | Utility and Industrial Products [Member] | |||
Loss Contingencies [Line Items] | |||
Number of plant sites | Plant | 1 | ||
Australia [Member] | Performance Chemicals [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental remediation and regulation liability | $ 1,300,000 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Changes in Accrued Liability for Environmental Matters (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of year | $ 10.9 | $ 10.7 |
Expense | 0 | 1.6 |
Cash expenditures | (0.1) | (1.1) |
Currency translation | 0 | (0.3) |
Balance at end of period | $ 10.8 | $ 10.9 |