Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | KOP | |
Entity Registrant Name | Koppers Holdings Inc. | |
Entity Central Index Key | 0001315257 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 20,647,947 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 434.9 | $ 406.1 |
Cost of sales | 353.8 | 311.4 |
Depreciation and amortization | 14.6 | 11.8 |
Impairment and restructuring charges | 0.3 | 1.5 |
Selling, general and administrative expenses | 37.8 | 38.1 |
Operating profit | 28.4 | 43.3 |
Other income, net | 0.6 | 0.2 |
Interest expense | 16.7 | 10.5 |
Income before income taxes | 12.3 | 33 |
Income tax (benefit) provision | (0.1) | 9.2 |
Income from continuing operations | 12.4 | 23.8 |
Loss from discontinued operations, net of tax benefit of $0.0 | 0 | (0.1) |
Net income | 12.4 | 23.7 |
Net income attributable to noncontrolling interests | 0.9 | 5.9 |
Net income attributable to Koppers | $ 11.5 | $ 17.8 |
Earnings per common share attributable to Koppers common shareholders: | ||
Basic - | $ 0.56 | $ 0.86 |
Diluted - | $ 0.55 | $ 0.81 |
Comprehensive income | $ 20.6 | $ 16.2 |
Comprehensive income attributable to noncontrolling interests | 1.1 | 6.1 |
Comprehensive income attributable to Koppers | $ 19.5 | $ 10.1 |
Weighted average shares outstanding (in thousands): | ||
Basic | 20,575 | 20,894 |
Diluted | 20,881 | 22,158 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income Statement [Abstract] | |
(Loss) income from discontinued operations, tax benefit (expense) | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 38.1 | $ 40.6 | |
Accounts receivable, net of allowance of $2.4 and $2.5 | 188.1 | 186.7 | |
Income tax receivable | 2.5 | 2.8 | |
Inventories, net | 285.5 | 284.7 | |
Other current assets | 29.1 | 25.5 | |
Total current assets | 543.3 | 540.3 | |
Property, plant and equipment, net | 417.3 | 417.9 | |
Operating lease right-of-use assets | 116.3 | 0 | |
Goodwill | 296.4 | 296.5 | |
Intangible assets, net | 183 | 188 | |
Deferred tax assets | 13.2 | 15.5 | |
Other assets | 23.9 | 21.7 | |
Total assets | [1] | 1,593.4 | 1,479.9 |
Liabilities | |||
Accounts payable | 143.1 | 177.2 | |
Accrued liabilities | 99.5 | 109.9 | |
Current operating lease liabilities | 22.2 | 0 | |
Current maturities of long-term debt | 11.6 | 11.6 | |
Total current liabilities | 276.4 | 298.7 | |
Long-term debt | 1,001.1 | 978.8 | |
Accrued postretirement benefits | 48.4 | 48.2 | |
Deferred tax liabilities | 6.8 | 6.8 | |
Operating lease liabilities | 94.9 | 0 | |
Other long-term liabilities | 75.8 | 80.4 | |
Total liabilities | 1,503.4 | 1,412.9 | |
Commitments and contingent liabilities (Note 18) | |||
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; 23,161,309 and 23,028,957 shares issued | 0.2 | 0.2 | |
Additional paid-in capital | 209 | 206 | |
Retained earnings | 38.8 | 27.2 | |
Accumulated other comprehensive loss | (79.2) | (87.2) | |
Treasury stock, at cost, 2,513,362 and 2,480,213 shares | (90.8) | (90) | |
Total Koppers shareholders’ equity | 78 | 56.2 | |
Noncontrolling interests | 12 | 10.8 | |
Total equity | 90 | 67 | |
Total liabilities and equity | $ 1,593.4 | $ 1,479.9 | |
[1] | The increase in total assets as of March 31, 2019 includes $116 million attributable to the implementation of ASU No. 2016-02 “Leases (Topic 842).” |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2.4 | $ 2.5 |
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 | 23,161,309 | 23,028,957 |
Treasury stock, shares | 2,513,362 | 2,480,213 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash provided by (used in) operating activities: | ||
Net income | $ 12.4 | $ 23.7 |
Adjustments to reconcile net cash provided by operating activities: | ||
Depreciation and amortization | 14.6 | 11.8 |
Gain on disposal of assets and investment | 0 | 0.1 |
Insurance proceeds | (1.4) | 0 |
Deferred income taxes | 0.4 | (0.1) |
Change in other liabilities | (3.2) | (1.4) |
Non-cash interest expense | 0.6 | 0.5 |
Stock-based compensation | 2.9 | 2.9 |
Other - net | (3.8) | 3.2 |
Changes in working capital: | ||
Accounts receivable | 1.7 | (41.7) |
Inventories | (0.5) | (10.7) |
Accounts payable | (30.1) | 2.4 |
Accrued liabilities | (4.5) | (20.2) |
Other working capital | (3.5) | 0.5 |
Net cash used in operating activities | (14.4) | (29) |
Cash (used in) provided by investing activities: | ||
Capital expenditures | (11) | (22.5) |
Acquisitions, net of cash acquired | 0 | (62.9) |
Insurance proceeds received | 1.4 | 0 |
Net cash provided by divestitures and asset sales | 0.3 | 0.3 |
Net cash used in investing activities | (9.3) | (85.1) |
Cash provided by (used in) financing activities: | ||
Net increase in credit facility borrowings | 34 | 116.9 |
Borrowings of long-term debt | 0 | 0.3 |
Repayments of long-term debt | (12.6) | (4.1) |
Issuances of Common Stock | 0.3 | 1.3 |
Repurchases of Common Stock | (0.9) | (7.4) |
Payment of debt issuance costs | 0 | (1.1) |
Net cash provided by (used in) financing activities | 20.8 | 105.9 |
Effect of exchange rate changes on cash | 0.4 | 0.1 |
Net increase (decrease) in cash and cash equivalents | (2.5) | (8.1) |
Cash and cash equivalents at beginning of period | 40.6 | 60.3 |
Cash and cash equivalents at end of period | 38.1 | 52.2 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflow from operating leases | 7.6 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 14.3 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 for December 31, 2018 has been summarized from the audited balance sheet contained in the Annual Report on Form 10-K for the year ended December 31, 2018. Certain prior period amounts in the notes to the 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, 2018. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 2. New Accounting Pronouncements In August 2018, the Securities and Exchange Commission (“SEC”) issued SEC Release No. 33-10532, “Disclosure Update and Simplification”, which “Note 6 – Comprehensive Income and Equity” In August 2017, the issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. We adopted this ASU effective January 1, 2018 and we reclassified a $3.9 million unrealized gain, net of tax, from retained earnings to accumulated other comprehensive loss upon adoption. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU 2016-02 requires an entity to recognize a right-of-use asset and lease liability for all leases. The standard is effective January 1, 2019 and measurement and presentation of expenses will depend on classification as a finance or operating lease. We adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach with no restatement of comparative periods presented. We elected a suite of practical expedients, including retaining our current classification of leases, separating lease and non-lease components for certain asset classes and excluding leases expiring within twelve months. As a result, the initial impact of adopting this new standard on our consolidated statement of operations and consolidated statement of cash flows was not material. Approximately $119 million of right-of-use assets and lease liabilities were recognized in the consolidated balance sheet upon adoption. The adoption of Topic 842 did not have a material effect on our Consolidated Condensed Statement of Operations or Condensed Consolidated Statement of Cash Flows. Refer to for more details regarding leases as of March 31, 2019. |
Plant Closures and Divestitures
Plant Closures and Divestitures | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Plant Closures and Divestitures | 3. Plant Closures and Divestitures Over the past five years, we have been restructuring our Carbon Materials and Chemicals (“CMC”) segment in order to concentrate our facilities in regions where we believe we hold key competitive advantages to better serve our global customers. These closure activities include: • The cessation of naphthalene refining activities at our Follansbee, West Virginia coal tar distillation facility in the fourth quarter of 2018 subsequent to the commissioning of a new naphthalene refining plant in Stickney, Illinois. • In September 2018, we sold our UK-based specialty chemicals business. • In November 2016, we sold our 30-percent interest in Tangshan Kailuan Koppers Carbon Chemical Company Limited (“TKK”) located in the Hebei Province in China. • In July 2016, we discontinued coal tar distillation activities at our CMC plant located in Clairton, Pennsylvania. In October 2018, we sold the facility and as part of the transaction, we transferred cash to the buyer and the buyer assumed decommissioning, demolition and site restoration responsibilities. • In March 2016, we discontinued production at our 60-percent owned CMC plant located in Tangshan, China. • In February 2016, we ceased coal tar distillation and specialty pitch operations at both of our United Kingdom CMC facilities. In July 2016, we sold substantially all of our CMC tar distillation properties and assets in the United Kingdom. In exchange, we transferred cash to the buyer and the buyer assumed historical environmental and asset retirement obligations. • In April 2014, we ceased coal tar distillation activities at our CMC facility located in Uithoorn, the Netherlands. Other closure and divestiture activity relates to our Railroad Utility Products and Services (“RUPS”) segment. These actions include: • In August 2015, we closed a crosstie treating plant located in Green Spring, West Virginia. • In July 2015, we sold the assets of our 50-percent interest in KSA Limited Partnership, a concrete crosstie manufacturer. In addition, in 2011, we ceased carbon black production at our CMC facility located in Kurnell, Australia. Costs associated with this closure are included in income from discontinued operations on the consolidated statement of operations and comprehensive income. Details of the restructuring activities and related reserves are as follows: Severance employee Environmental remediation Asset Retirement Other Total (Dollars in millions) Reserve at December 31, 2017 $ 1.7 $ 2.7 $ 10.6 $ 3.3 $ 18.3 Accrual 0.0 0.9 1.8 2.2 4.9 Cost charged against assets 0.0 0.0 0.0 (2.1 ) (2.1 ) Reversal of accrued charges 0.0 0.0 (0.9 ) 0.0 (0.9 ) Cash paid 0.0 (3.4 ) (7.9 ) (0.5 ) (11.8 ) Currency translation 0.0 (0.2 ) 0.0 (0.1 ) (0.3 ) Reserve at December 31, 2018 $ 1.7 $ 0.0 $ 3.6 $ 2.8 $ 8.1 Accrual 0.0 0.0 0.3 0.0 0.3 Cash paid (0.3 ) 0.0 (1.7 ) 0.0 (2.0 ) Reserve at March 31, 2019 $ 1.4 $ 0.0 $ 2.2 $ 2.8 $ 6.4 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 4. Acquisitions On April 10, 2018, Koppers Inc. acquired Cox Industries, Inc. (“Cox”) for net cash consideration of $201.3 million. The transaction was funded by borrowings on Koppers Inc.’s credit facility discussed in “Note 14 - Debt.” Cox was renamed Koppers Utility and Industrial Products Inc. (“UIP”) subsequent to the acquisition. UIP is a manufacturer of treated wood transmission and distribution poles for utility companies and cooperative utility companies. It is also a manufacturer of treated wood pilings used for construction and marine applications. UIP manufactures and sells its treated wood poles and pilings through a network of nine manufacturing facilities and 19 distribution yards located throughout the United States. UIP treats its products with a variety of wood protection chemicals, including chromated copper arsenate and creosote, which are produced by our PC and CMC segments, respectively. On February 28, 2018, Koppers Inc. acquired M.A. Energy Resources, LLC (“MAER”) for net cash consideration of $62.8 million. The purchase price was funded by this recovered material into alternative fuels, such as crosstie-derived fuel or biomass-derived fuel, that is used as a substitute for conventional higher-cost carbon-based fuel. KRR currently operates two processing facilities, each of which is located to serve its Class I railroad customer base. Combined costs related to these two acquisitions were $2.1 The following unaudited pro forma information presents a summary of our revenues and income from continuing operations as if the UIP acquisition occurred on January 1, 2017 (the first day of the most recently completed fiscal year prior to the acquisition). The unaudited pro forma information is not necessarily indicative of operating results that would have been achieved had the acquisition been completed as of January 1, 2017 and is not intended to project our future financial results after the acquisition. The unaudited pro forma information is based on certain assumptions, which management believes are reasonable, and does not reflect the cost of any integration activities or the benefits from the acquisition and synergies that may be derived from any integration activities. Three Months Ended March 31, 2018 (Dollars in millions) Pro forma revenue $ 452.5 Pro forma income from continuing operations attributable to Koppers 17.8 Pro forma income per share - continuing operations: Basic - $ 0.85 Diluted - $ 0.80 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition Effective January 1, 2018 we adopted ASC 606, “Revenue from Contracts with Customers”, using the modified retrospective method. Contract Balances The timing of revenue recognition in accordance with ASC 606 results in both billed accounts receivable and unbilled receivables, both classified as accounts receivable, net of allowance within the consolidated balance sheet. Contract assets of $7.0 million and $5.3 million are recorded within accounts receivable, net of allowance within the consolidated balance sheet as of March 31, 2019 and January 1, 2018, respectively. |
Comprehensive Income and Equity
Comprehensive Income and Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income and Equity | 6. Comprehensive Income and Equity Total comprehensive income for the three months ended March 31, 2019 and 2018 is summarized in the table below: Three Months Ended March 31, 2019 2018 (Dollars in millions) Net income $ 12.4 $ 23.7 Changes in other comprehensive income: Currency translation adjustment 1.8 1.2 Unrealized gain (loss) on cash flow hedges, net of tax (expense) benefit of $(2.7) and $4.9 6.2 (9.3 ) Change in accounting standard 0.0 0.3 Unrecognized pension net loss, net of tax (expense) of $(0.1) 0.2 0.3 Total comprehensive income 20.6 16.2 Comprehensive income attributable to noncontrolling interests 1.1 6.1 Comprehensive income attributable to Koppers $ 19.5 $ 10.1 Amounts reclassified from accumulated other comprehensive (loss) income to net income consist of amounts shown for changes in or amortization of unrecognized pension net loss. This component of accumulated other comprehensive (loss) income is included in the computation of net periodic pension cost as disclosed in “Note 13 – Pensions and Post-Retirement Benefit Plans.” Other amounts reclassified from accumulated other comprehensive (loss) income include (loss) income related to derivative financial instruments, net of tax, of $(0.6) million The following tables present the change in equity for the three months ended March 31, 2019 and 2018, respectively: (Dollars in millions) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2018 $ 0.2 $ 206.0 $ 27.2 $ (87.2 ) $ (90.0 ) $ 10.8 $ 67.0 Net income 0.0 0.0 11.5 0.0 0.0 0.9 12.4 Issuance of common stock 0.0 0.3 0.0 0.0 0.0 0.0 0.3 Employee stock plans 0.0 2.9 0.0 0.0 0.0 0.0 2.9 Other comprehensive income Currency translation adjustment 0.0 0.0 0.0 1.5 0.0 0.3 1.8 Unrealized gain on cash flow hedges 0.0 0.0 0.0 6.2 0.0 0.0 6.2 Unrecognized pension net loss 0.0 0.0 0.0 0.2 0.0 0.0 0.2 Repurchases of common stock 0.0 (0.2 ) 0.1 0.1 (0.8 ) 0.0 (0.8 ) Balance at March 31, 2019 $ 0.2 $ 209.0 $ 38.8 $ (79.2 ) $ (90.8 ) $ 12.0 $ 90.0 (Dollars in millions) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2017 $ 0.2 $ 190.6 $ 7.4 $ (40.1 ) $ (58.2 ) $ 5.9 $ 105.8 Net income 0.0 0.0 17.8 0.0 0.0 5.9 23.7 Issuance of common stock 0.0 1.3 0.0 0.0 0.0 0.0 1.3 Employee stock plans 0.0 2.8 0.0 0.0 0.0 0.0 2.8 Other comprehensive income Currency translation adjustment 0.0 0.0 0.0 1.1 0.0 0.1 1.2 Unrealized loss on cash flow hedges 0.0 0.0 0.0 (9.3 ) 0.0 0.0 (9.3 ) Change in accounting standard 0.0 0.0 (3.6 ) 3.9 0.0 0.0 0.3 Unrecognized pension net loss 0.0 0.0 0.0 0.3 0.0 0.0 0.3 Repurchases of common stock 0.0 0.0 0.0 (0.1 ) (7.4 ) 0.0 (7.5 ) Balance at March 31, 2018 $ 0.2 $ 194.7 $ 21.6 $ (44.2 ) $ (65.6 ) $ 11.9 $ 118.6 |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 7. 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, 2019 2018 (Dollars in millions, except share amounts, in thousands) Net income attributable to Koppers $ 11.5 $ 17.8 Loss from discontinued operations 0.0 (0.1 ) Income from continuing operations attributable to Koppers $ 11.5 $ 17.9 Weighted average common shares outstanding: Basic 20,575 20,894 Effect of dilutive securities 306 1,264 Diluted 20,881 22,158 Income per common share – continuing operations: Basic income per common share $ 0.56 $ 0.86 Diluted income per common share 0.55 0.81 Other data: Antidilutive securities excluded from computation of diluted earnings per common share 534 8 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 8. 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”) and the 2018 Long-Term Incentive Plan (the “2018 LTIP”). Both the 2005 LTIP and the 2018 LTIP are collectively referred to as the “LTIP”. On May 3, 2018, the 2018 LTIP was approved by our shareholders and the 2005 LTIP was frozen. Similar to the 2005 LTIP, the 2018 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 and the fair value of performance stock units is determined using a Monte Carlo valuation model. For grants to most employees, the restricted stock units vest in four equal annual installments. 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 two years or less. Performance stock units have vesting based upon a market condition. These performance stock units have a three-year performance objective and a three-year period for vesting (if the applicable performance objective is achieved). The applicable performance objective is based on our total shareholder return relative to the Standard & Poor’s SmallCap 600 Materials Index. 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. Performance stock units for the 2016-2018 performance period vested at 13 percent of the target share amount in March 2019. We calculated the fair value of the performance stock unit awards on the date of grant using the assumptions listed below: March 2019 Grant May March March Grant date price per share of performance award $ 26.63 $ 39.10 $ 41.60 $ 44.10 Expected dividend yield per share 0.00 % 0.00 % 0.00 % 0.00 % Expected volatility 39.00 % 39.40 % 39.40 % 43.50 % Risk-free interest rate 2.50 % 2.35 % 2.35 % 1.54 % Look-back period in years 2.82 2.84 2.84 2.83 Grant date fair value per share $ 40.30 $ 44.29 $ 47.12 $ 64.02 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, 2019: Performance Period Minimum Shares Target Shares Maximum Shares 2017 – 2019 0 110,262 220,524 2018 – 2020 0 128,093 256,186 2019 – 2021 0 156,287 312,574 The following table shows a summary of the status and activity of non-vested stock units for the three months ended March 31, 2019: Restricted Stock Units Performance Stock Units Total Stock Units Weighted Grant Date Fair Value per Unit Non-vested at December 31, 2018 223,561 271,123 494,684 $ 45.65 Granted 193,229 156,287 349,516 $ 32.74 Vested (79,520 ) (32,768 ) (112,288 ) $ 26.65 Non-vested at March 31, 2019 337,270 394,642 731,912 $ 40.69 Stock Options Stock options to most 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. We calculated the fair value of stock options on the date of grant using the Black-Scholes-Merton model and the assumptions listed below: March 2019 Grant May March March March 2016 Grant Grant date price per share of stock option award $ 26.63 $ 39.10 $ 41.60 $ 44.10 $ 18.11 Expected dividend yield per share 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Expected life in years 6.14 5.73 5.73 5.77 5.96 Expected volatility 39.44 % 37.05 % 37.05 % 39.70 % 40.86 % Risk-free interest rate 2.53 % 2.82 % 2.67 % 2.13 % 1.45 % Grant date fair value per share $ 11.29 $ 15.48 $ 16.38 $ 17.90 $ 7.41 We suspended our dividend in February 2015 and we do not expect to declare any dividends for the foreseeable future. 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 historical volatility of certain other similar public companies. 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, 2019: Options Weighted Exercise Price per Option Weighted Average Remaining Contractual Term (in years) Aggregate Value (in millions) Outstanding at December 31, 2018 981,940 $ 29.63 Granted 145,301 $ 26.63 Outstanding at March 31, 2019 1,127,241 $ 29.24 6.11 $ 3.9 Exercisable at March 31, 2019 805,623 $ 28.25 4.80 $ 3.5 Stock Compensation Expense Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 (Dollars in millions) Stock-based compensation expense recognized: Selling, general and administrative expenses $ 2.9 $ 2.9 Less related income tax benefit 0.9 1.0 Decrease in net income attributable to Koppers $ 2.0 $ 1.9 Intrinsic value of exercised stock options $ 0.0 $ 0.2 Cash received from the exercise of stock options $ 0.0 $ 0.9 As of March 31, 2019, total future compensation expense related to non-vested stock-based compensation arrangements totaled $25.0 million and the weighted-average period over which this expense is expected to be recognized is approximately 32 months |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 9. Segment Information We have three reportable segments: Railroad and Utility Products and Services, Performance Chemicals and Carbon Materials and Chemicals. 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 Railroad and Utility Products and Services 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. The segment also operates a railroad services business that conducts engineering, design, repair and inspection services for railroad bridges and a business related to the recovery of used crossties. In April 2018, we acquired UIP, a manufacturer of treated wood utility transmission and distribution poles for utility companies and cooperative utility companies. It is also a manufacturer of treated wood pilings used for construction and marine applications. In February 2018, we acquired KRR, a vertically-integrated provider of crosstie recovery and disposal services. KRR converts recovered material into alternative fuels, such as crosstie-derived fuel or biomass-derived fuel, that is used as a substitute for conventional higher-cost carbon-based fuel. Our Performance Chemicals 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 Carbon Materials and Chemicals 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 used in the production of aluminum and 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. We evaluate performance and determine resource allocations based on a number of factors, the primary measure being operating profit or loss from operations. Operating profit does not include other loss, interest expense, income taxes or operating costs of Koppers Holdings Inc. 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, 2019 2018 (Dollars in millions) Revenues from external customers: Railroad and Utility Products and Services $ 166.1 $ 108.4 Performance Chemicals 99.0 97.4 Carbon Materials and Chemicals 169.8 200.3 Total $ 434.9 $ 406.1 Intersegment revenues: Railroad and Utility Products and Services $ 0.3 $ 0.0 Performance Chemicals 3.1 1.8 Carbon Materials and Chemicals 17.9 18.2 Total $ 21.3 $ 20.0 Depreciation and amortization expense: Railroad and Utility Products and Services $ 4.8 $ 3.0 Performance Chemicals 4.9 4.4 Carbon Materials and Chemicals 4.9 4.4 Total $ 14.6 $ 11.8 Operating profit (loss): Railroad and Utility Products and Services $ 8.7 $ 1.1 Performance Chemicals 12.8 5.6 Carbon Materials and Chemicals 7.4 37.2 Corporate (a) (0.5 ) (0.6 ) Total $ 28.4 $ 43.3 (a) Operating loss for Corporate includes primarily general and administrative costs for Koppers Holdings Inc., the parent company of Koppers Inc. 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, 2019 2018 (Dollars in millions) Railroad and Utility Products and Services: Railroad treated products $ 84.7 $ 79.4 Utility poles 54.5 11.5 Rail joints 8.3 8.3 Railroad infrastructure services 9.3 7.0 Other products 9.3 2.2 166.1 108.4 Performance Chemicals: Wood preservative products 91.3 89.5 Other products 7.7 7.9 99.0 97.4 Carbon Materials and Chemicals: Pitch and related products 107.0 129.2 Creosote and distillates 18.9 22.9 Phthalic anhydride and other chemicals 21.0 22.2 Naphthalene 12.8 13.1 Other products 10.1 12.9 169.8 200.3 Total $ 434.9 $ 406.1 The following table sets forth tangible and intangible assets allocated to each of our segments as of the dates indicated: March 31, 2019 December 31, 2018 (Dollars in millions) Segment assets: Railroad and Utility Products and Services $ 567.6 $ 538.0 Performance Chemicals 472.6 446.9 Carbon Materials and Chemicals 504.6 457.1 All other 48.6 37.9 Total (a) $ 1,593.4 $ 1,479.9 Goodwill: Railroad and Utility Products and Services $ 120.7 $ 121.1 Performance Chemicals 175.7 175.4 Total $ 296.4 $ 296.5 (a) The increase in total assets as of March 31, 2019 includes $116 million attributable to the implementation of ASU No. 2016-02 “Leases (Topic 842).” |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. 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 to the actual liability determined upon filing 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 discussed above, was 30.4 percent and 34.4 percent for the three months ended March 31, 2019 and 2018, respectively. The estimated annual effective income tax rate differs from the U.S. federal statutory tax rate due to: March 31, March 31, 2019 2018 Federal income tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 0.6 0.9 Foreign earnings taxed at different rates 1.7 3.5 Interest expense deduction limitation 6.9 0.0 Nondeductible expenses 1.2 0.0 Change in tax contingency reserves 0.1 0.1 Valuation allowance adjustments 0.0 (5.7 ) GILTI inclusion, net of foreign tax credits (0.8 ) 13.1 Other (0.3 ) 1.5 Estimated annual effective income tax rate 30.4 % 34.4 % In 2018, the estimated annual effective income tax rate included a benefit related to the release of a valuation allowance adjustment for a subsidiary in China. Management determined that sufficient positive evidence exists to support that this entity’s net operating losses were more likely than not to be realized. Income taxes as a percentage of pretax income were (0.8) percent for the three months ended March 31, 2019. This is lower than the estimated annual effective income tax rate due to discrete items. Discrete items included in income taxes for the three months ended March 31, 2019 were a net benefit of $3.8 million. Discrete items were primarily related to the reversal of various unrecognized tax benefits due to audit closures. Income taxes as a percentage of pretax income were 27.9 percent for the three months ended March 31, 2018. This was lower than the estimated annual effective income tax rate due to discrete items. Discrete items included in income taxes for the three months ended were a net benefit of $2.2 million, which is primarily related to excess tax benefits for stock-based compensation. 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, 2019. Unrecognized Tax Benefits We and our subsidiaries 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 2015. Unrecognized tax benefits totaled $2.3 million and $7.0 million as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019 and December 31, 2018, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate, was approximately $2.3 million and $3.7 million, respectively. We recognize interest expense and any related penalties from unrecognized tax benefits in income tax expense. As of March 31, 2019 and December 31, 2018, we had accrued approximately $0.8 million and $2.2 million for interest and penalties, respectively. 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, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 11. Inventories Net inventories as of March 31, 2019 and December 31, 2018 are summarized in the table below: March 31, 2019 December 31, 2018 (Dollars in millions) Raw materials $ 205.2 $ 199.5 Work in process 12.3 16.0 Finished goods 127.9 128.1 $ 345.4 $ 343.6 Less revaluation to LIFO 59.9 58.9 Net $ 285.5 $ 284.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 12. Property, Plant and Equipment Property, plant and equipment as of March 31, 2019 and December 31, 2018 are summarized in the table below: March 31, 2019 December 31, 2018 (Dollars in millions) Land $ 17.6 $ 17.5 Buildings 65.7 65.1 Machinery and equipment 807.9 800.9 $ 891.2 $ 883.5 Less accumulated depreciation 473.9 465.6 Net $ 417.3 $ 417.9 Impairments – There were no impairment charges incurred for the three months ended March 31, 2019 and 2018. |
Pensions and Post-Retirement Be
Pensions and Post-Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pensions and Post-Retirement Benefit Plans | 13. 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 U.S., as well as employees outside the U.S. These plans are maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”), local statutory law or as determined by the board of directors. 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 U.S., 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. 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 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, 2019 and 2018: Three Months Ended March 31, 2019 2018 (Dollars in millions) Service cost $ 0.4 $ 0.5 Interest cost 2.0 1.8 Expected return on plan assets (2.0 ) (2.1 ) Amortization of net loss 0.4 0.4 Net periodic benefit cost $ 0.8 $ 0.6 Defined contribution plan expense $ 1.6 $ 2.0 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 14. Debt Debt as of March 31, 2019 and December 31, 2018 was as follows: Weighted Average Interest Rate Maturity March 31, 2019 December 31, 2018 (Dollars in millions) Term Loan 5.82 % 2024 $ 90.0 $ 92.5 Revolving Credit Facility 5.82 % 2024 424.0 390.0 Construction and other loans 4.75 % 2020 10.2 20.1 Senior Notes due 2025 6.00 % 2025 500.0 500.0 Debt 1,024.2 1,002.6 Less short-term debt and current maturities of long-term debt 11.6 11.6 Less unamortized debt issuance costs 11.5 12.2 Long-term debt $ 1,001.1 $ 978.8 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. On or after February 15, 2020, we are entitled to redeem all or a portion of the 2025 Senior Notes at a redemption price of 104.5 percent of principal value, declining to a redemption price of 101.5 percent on or after February 15, 2022 until the redemption price is equivalent to the principal value on April 15, 2023. The indenture governing the 2025 Senior 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. Credit Facility On April 10, 2018, we amended our $600 million Revolving Credit Facility to enter into a new Secured Term Loan Facility (the “Credit Facility”). The new Credit Facility includes the $600 million Revolving Credit Facility and a secured term loan of $100 million with a quarterly amortization of $2.5 million and a five-year maturity. In addition, the maturity date of the amended Credit Facility was extended one year to April 2023. The interest rate on the amended Credit Facility is variable and is based on LIBOR. Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the assets of Koppers Inc., Koppers Holdings Inc. and their material domestic subsidiaries. The Credit Facility contains certain covenants for Koppers Inc. and its restricted subsidiaries that limit capital expenditures, additional indebtedness, liens, dividends, investments or acquisitions. 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, 2019, we had $139.2 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, 2019, $18.7 million of commitments were utilized by outstanding letters of credit. Construction Loans Our 75-percent owned subsidiary, Koppers (Jiangsu) Carbon Chemical Company Limited (“KJCC”) entered into a committed loan facility agreement with a third-party bank. Events subsequent to March 31, 2019 On May 1, 2019, we entered into the Third Amendment to our credit agreement (the “Third Amendment”) and amended the Credit Facility to, among other things: (1) reset the Credit Facility termination date to May 1, 2024; and (2) revise certain financial statement covenants and related definitions and other covenants, including revising the definition of Consolidated EBITDA to increase the permitted add back of non-recurring, non-cash charges incurred in connection with the discontinuation or sale of business operations and excluding dividends and distributions made during the fiscal quarter ended September 30, 2018 from the definition of Fixed Charge Coverage Ratio. All other material terms, conditions and covenants with respect to the Credit Facility remain unchanged. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 15. 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 rail cars; 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, 2019 December 31, 2018 (Dollars in millions) Asset retirement obligation at beginning of year $ 27.0 $ 37.1 Accretion expense 0.4 1.7 Revision in estimated cash flows 1.0 0.8 Cash expenditures (2.3 ) (12.5 ) Currency translation 0.0 (0.1 ) Balance at end of period $ 26.1 $ 27.0 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 16. Leases As described more fully in Note 2 – “New Accounting Pronouncements,” on January 1, 2019, we adopted the provisions of ASU 2016-02 and recognized 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 the practical expedient to account for these components as a single lease component. Many of our leases include one or more options to renew. The exercise of the lease renewal option is generally at our sole discretion. 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 $8.0 million and variable lease costs were $0.9 million during the three months ended March 31, 2019. The following table presents information about the amount and timing of cash flows arising from our operating leases as of March 31, 2019: (Dollars in millions) 2019 $ 23.4 2020 28.5 2021 22.0 2022 18.3 2023 12.7 Thereafter 51.8 Total lease payments $ 156.7 Less: Interest (39.6 ) Present value of lease liabilities $ 117.1 Supplemental consolidated balance sheet information related to leases is as follows: March 31, 2019 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 116.3 Current operating lease liabilities $ 22.2 Operating lease liabilities 94.9 Total operating lease liabilities $ 117.1 Weighted average remaining lease term, in years 7.1 Weighted average discount rate 7.7 % |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 17. Derivative Financial Instruments We utilize derivative instruments to manage exposures to risks that have been identified and measured and are capable of being controlled. The primary risks managed by us by using derivative instruments are commodity price risk associated with copper and foreign currency exchange risk associated with a number of currencies, principally the U.S. dollar, the Canadian dollar, the New Zealand dollar, the Euro and British pounds. 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 30 months and we have hedged certain volumes of copper through December 2020. We enter into foreign currency forward contracts to manage foreign currency risk associated with our receivable and payable balances and foreign currency denominated sales. 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. ASC Topic 815-10, “Derivatives and Hedging,” requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. Derivative instruments’ fair value is determined using significant other observable inputs, or Level 2 in the fair value hierarchy. In accordance with ASC Topic 815-10, we designate certain of our commodity swaps as cash flow hedges of forecasted purchases of commodities. 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 either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For those commodity swaps which are not designated as cash flow hedges, the fair value of the commodity swap is recognized as an asset or liability in 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 consolidated statement of operations. As of March 31, 2019 and December 31, 2018, we had outstanding copper swap contracts of the following amounts: Units Outstanding (in Pounds) Net Fair Value - Asset (Liability) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (Amounts in millions) Cash flow hedges 28.4 35.5 $ 1.5 $ (6.8 ) Not designated as hedges 11.0 13.3 0.8 (2.4 ) Total 39.4 48.8 $ 2.3 $ (9.2 ) As of March 31, 2019 and December 31, 2018, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows: March 31, 2019 December 31, 2018 (Dollars in millions) Other current assets $ 2.4 $ 0.0 Other assets 1.2 0.0 Accrued liabilities (1.3 ) (9.0 ) Other long-term liabilities 0.0 (0.2 ) Net asset (liability) on balance sheet $ 2.3 $ (9.2 ) Accumulated other comprehensive gain (loss), net of tax $ 1.1 $ (5.3 ) Based upon contracts outstanding at March 31, 2019, in the next twelve months we estimate that $0.8 million of unrealized gains, net of tax, related to commodity price hedging will be reclassified from other comprehensive income into earnings See “Note 6 – Comprehensive Income and Equity”, for amounts recorded in other comprehensive income and for amounts reclassified from accumulated other comprehensive loss to net income for the periods specified below. For the three months ended March 31, 2019 and 2018, the gain (loss) in earnings related to copper swap contracts was $3.1 million and $(3.5) million, respectively. 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, 2019 and December 31, 2018, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows: March 31, 2019 December 31, 2018 (Dollars in millions) Other current assets $ 0.6 $ 0.9 Accrued liabilities (1.0 ) (1.0 ) Net liability on balance sheet $ (0.4 ) $ (0.1 ) As of March 31, 2019 and December 31, 2018, the net currency units outstanding for these contracts were: March 31, 2019 December 31, 2018 (In millions) British Pounds GBP 5.7 GBP 5.7 New Zealand Dollars NZD 16.0 NZD 16.0 United States Dollars USD 5.5 USD 6.0 Canadian Dollars CAD 8.7 CAD 0.0 Euro EUR 1.2 EUR 1.2 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 18. Commitments and Contingent Liabilities We and our subsidiaries 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 or our subsidiaries fail to prevail in any of these legal matters or should several of these legal matters be resolved against us or our subsidiaries in the same reporting period, these legal matters could, individually or in the aggregate, be material to the 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 65 plaintiffs in 35 cases pending as of March 31, 2019, which is unchanged from December 31, 2018. As of March 31, 2019, there were 34 cases pending in state court in Pennsylvania, and 1 case pending in state court in Tennessee. The plaintiffs in all 35 pending cases seek to recover compensatory damages. Plaintiffs in 30 of those cases also seek to recover punitive damages. The plaintiffs in the 34 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. Pavement Sealer Cases . Koppers Inc. is one of thirteen defendants in separate federal lawsuits recently filed by ten municipalities in the state of Minnesota since December 2018. These lawsuits were filed in federal district court in Minnesota. Each of the complaints allege that contamination caused by coal tar-based pavement sealer products has impacted their stormwater retention ponds resulting in substantially increased disposal costs when the ponds are periodically dredged. The plaintiffs seek to recover compensatory damages and other costs in addition to compelling the defendants to remove the alleged contamination from the plaintiffs’ stormwater retention ponds and other stormwater-management devices. Plaintiffs filed a motion to consolidate nine of the ten cases. The tenth case is currently on a different schedule and is not part of the motion to consolidate. Defendants filed an opposition to the motion to consolidate and a hearing on the motion is currently scheduled for May 28, 2019. We have not provided a reserve for the coal tar pitch or pavement sealer 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 “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 through July 2019. As consideration for the amendment, Koppers Inc. paid Beazer East a total of $7.0 million and agreed to share toxic tort litigation defense costs arising from any sites acquired from Beazer East. The July 2004 amendment 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 asserted after July 2019. 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. If the third-party claims described in sections (i) and (ii) above are not made by July 2019, Beazer East will not be required to pay the costs arising from such claims under the Indemnity. However, with respect to any such claims which are made by July 2019, Beazer East will continue to be responsible for such claims under the Indemnity beyond July 2019. 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. We believe that, for the last three years ended December 31, 2018, amounts paid by Beazer East as a result of its environmental remediation obligations under the Indemnity have averaged, in total, approximately $11 million per year. 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 or our subsidiaries are held liable for or otherwise required to pay all or part of such liabilities without reimbursement, the imposition of such liabilities on us or our subsidiaries 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. On June 4, 2018, Koppers Inc. received a letter from the U.S. Environmental Protection Agency ("EPA") concerning potential violations of the Clean Water Act observed during inspections and review of Spill Prevention, Control and Countermeasure Plans and Facility Response Plans at our facilities in Follansbee, WV; Green Spring, WV; and Clairton, PA. In addition, the EPA reviewed one facility’s compliance with an earlier consent order regarding above ground storage tank integrity testing. We continue to meet and correspond with the EPA to discuss and present relevant information related to the allegations. We currently cannot estimate the potential penalties, fines or other expenditures, if any, that may result from any EPA actions relating to the alleged potential violations and, therefore, we cannot determine if the ultimate outcome of this matter will have a material impact on our financial position, results of operations or cash flows. 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 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. The net present value and undiscounted costs of the selected remedy as estimated in the ROD are approximately $1.1 billion and $1.7 billion, respectively. Responsibility for implementing and funding that work will be decided in the separate private allocation process, which is ongoing. Additionally, Koppers Inc. is involved in two separate natural resource damages assessments at the Portland Harbor site. An assessment is intended to identify damages to natural resources caused by the releases of hazardous substances to the Willamette River and to serve 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. One of the natural resource damage assessments was filed in January 2017 by the Yakama Nation in Oregon federal court. Yakama Nation seeks recovery for future response costs and the costs of assessing injury to natural resources and recovery for past costs of overseeing investigations conducted on the site. Currently, a magistrate judge has recommended the Yakama Nation case be stayed pending completion of the private allocation process for the Portland Harbor CERCLA site. A final ruling on the stay is pending. In September 2009, Koppers Inc. received a general notice letter notifying it 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 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 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, 2019, our estimated environmental remediation liability for these acquired sites totals $5.0 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, 2019, our estimated environmental remediation liability for this acquired site totals $1.4 million. In December 2011, we ceased manufacturing operations at our Continental Carbon facility located in Kurnell, Australia. As of March 31, 2019, we believe we have fully satisfied all site remediation responsibilities resulting from the closure. Environmental Reserves Rollforward. The following table reflects changes in the accrued liability for environmental matters, of which $3.5 million and $3.5 million are classified as current liabilities at March 31, 2019 and December 31, 2018, respectively: Period ended March 31, 2019 December 31, 2018 (Dollars in millions) Balance at beginning of year $ 10.1 $ 13.9 Expense 0.0 0.9 Reversal of reserves 0.0 (2.4 ) Cash expenditures (0.1 ) (3.8 ) Acquisition 0.0 1.9 Currency translation 0.1 (0.4 ) Balance at end of period $ 10.1 $ 10.1 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions At December 31, 2017, KJCC had an outstanding loan from its 25 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 20. Fair Value Measurements Carrying amounts and the related estimated fair values of our financial instruments as of March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value (Dollars in millions) Financial assets: Cash and cash equivalents, including restricted cash $ 38.1 $ 38.1 $ 40.6 $ 40.6 Investments and other assets (a) 1.2 1.2 1.2 1.2 Financial liabilities: Long-term debt (including current portion) $ 1,002.7 $ 1,024.2 $ 945.3 $ 1,002.6 (a) Excludes equity method investments. Cash and cash equivalents – The carrying value approximates fair value because of the short maturity of those instruments. 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 approximates carrying value due to the variable rate nature of this instrument. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | In August 2018, the Securities and Exchange Commission (“SEC”) issued SEC Release No. 33-10532, “Disclosure Update and Simplification”, which “Note 6 – Comprehensive Income and Equity” In August 2017, the issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. We adopted this ASU effective January 1, 2018 and we reclassified a $3.9 million unrealized gain, net of tax, from retained earnings to accumulated other comprehensive loss upon adoption. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. ASU 2016-02 requires an entity to recognize a right-of-use asset and lease liability for all leases. The standard is effective January 1, 2019 and measurement and presentation of expenses will depend on classification as a finance or operating lease. We adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach with no restatement of comparative periods presented. We elected a suite of practical expedients, including retaining our current classification of leases, separating lease and non-lease components for certain asset classes and excluding leases expiring within twelve months. As a result, the initial impact of adopting this new standard on our consolidated statement of operations and consolidated statement of cash flows was not material. Approximately $119 million of right-of-use assets and lease liabilities were recognized in the consolidated balance sheet upon adoption. The adoption of Topic 842 did not have a material effect on our Consolidated Condensed Statement of Operations or Condensed Consolidated Statement of Cash Flows. Refer to for more details regarding leases as of March 31, 2019. |
Plant Closures and Divestitur_2
Plant Closures and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Restructuring Activities and Related Reserves | Details of the restructuring activities and related reserves are as follows: Severance employee Environmental remediation Asset Retirement Other Total (Dollars in millions) Reserve at December 31, 2017 $ 1.7 $ 2.7 $ 10.6 $ 3.3 $ 18.3 Accrual 0.0 0.9 1.8 2.2 4.9 Cost charged against assets 0.0 0.0 0.0 (2.1 ) (2.1 ) Reversal of accrued charges 0.0 0.0 (0.9 ) 0.0 (0.9 ) Cash paid 0.0 (3.4 ) (7.9 ) (0.5 ) (11.8 ) Currency translation 0.0 (0.2 ) 0.0 (0.1 ) (0.3 ) Reserve at December 31, 2018 $ 1.7 $ 0.0 $ 3.6 $ 2.8 $ 8.1 Accrual 0.0 0.0 0.3 0.0 0.3 Cash paid (0.3 ) 0.0 (1.7 ) 0.0 (2.0 ) Reserve at March 31, 2019 $ 1.4 $ 0.0 $ 2.2 $ 2.8 $ 6.4 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Revenue and Income from Continuing Operations | The following unaudited pro forma information presents a summary of our revenues and income from continuing operations as if the UIP acquisition occurred on January 1, 2017 (the first day of the most recently completed fiscal year prior to the acquisition). The unaudited pro forma information is not necessarily indicative of operating results that would have been achieved had the acquisition been completed as of January 1, 2017 and is not intended to project our future financial results after the acquisition. The unaudited pro forma information is based on certain assumptions, which management believes are reasonable, and does not reflect the cost of any integration activities or the benefits from the acquisition and synergies that may be derived from any integration activities. Three Months Ended March 31, 2018 (Dollars in millions) Pro forma revenue $ 452.5 Pro forma income from continuing operations attributable to Koppers 17.8 Pro forma income per share - continuing operations: Basic - $ 0.85 Diluted - $ 0.80 |
Comprehensive Income and Equi_2
Comprehensive Income and Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Comprehensive Income | Total comprehensive income for the three months ended March 31, 2019 and 2018 is summarized in the table below: Three Months Ended March 31, 2019 2018 (Dollars in millions) Net income $ 12.4 $ 23.7 Changes in other comprehensive income: Currency translation adjustment 1.8 1.2 Unrealized gain (loss) on cash flow hedges, net of tax (expense) benefit of $(2.7) and $4.9 6.2 (9.3 ) Change in accounting standard 0.0 0.3 Unrecognized pension net loss, net of tax (expense) of $(0.1) 0.2 0.3 Total comprehensive income 20.6 16.2 Comprehensive income attributable to noncontrolling interests 1.1 6.1 Comprehensive income attributable to Koppers $ 19.5 $ 10.1 |
Schedule of Change in Equity | The following tables present the change in equity for the three months ended March 31, 2019 and 2018, respectively: (Dollars in millions) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2018 $ 0.2 $ 206.0 $ 27.2 $ (87.2 ) $ (90.0 ) $ 10.8 $ 67.0 Net income 0.0 0.0 11.5 0.0 0.0 0.9 12.4 Issuance of common stock 0.0 0.3 0.0 0.0 0.0 0.0 0.3 Employee stock plans 0.0 2.9 0.0 0.0 0.0 0.0 2.9 Other comprehensive income Currency translation adjustment 0.0 0.0 0.0 1.5 0.0 0.3 1.8 Unrealized gain on cash flow hedges 0.0 0.0 0.0 6.2 0.0 0.0 6.2 Unrecognized pension net loss 0.0 0.0 0.0 0.2 0.0 0.0 0.2 Repurchases of common stock 0.0 (0.2 ) 0.1 0.1 (0.8 ) 0.0 (0.8 ) Balance at March 31, 2019 $ 0.2 $ 209.0 $ 38.8 $ (79.2 ) $ (90.8 ) $ 12.0 $ 90.0 (Dollars in millions) Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Treasury Stock Noncontrolling Interests Total Equity Balance at December 31, 2017 $ 0.2 $ 190.6 $ 7.4 $ (40.1 ) $ (58.2 ) $ 5.9 $ 105.8 Net income 0.0 0.0 17.8 0.0 0.0 5.9 23.7 Issuance of common stock 0.0 1.3 0.0 0.0 0.0 0.0 1.3 Employee stock plans 0.0 2.8 0.0 0.0 0.0 0.0 2.8 Other comprehensive income Currency translation adjustment 0.0 0.0 0.0 1.1 0.0 0.1 1.2 Unrealized loss on cash flow hedges 0.0 0.0 0.0 (9.3 ) 0.0 0.0 (9.3 ) Change in accounting standard 0.0 0.0 (3.6 ) 3.9 0.0 0.0 0.3 Unrecognized pension net loss 0.0 0.0 0.0 0.3 0.0 0.0 0.3 Repurchases of common stock 0.0 0.0 0.0 (0.1 ) (7.4 ) 0.0 (7.5 ) Balance at March 31, 2018 $ 0.2 $ 194.7 $ 21.6 $ (44.2 ) $ (65.6 ) $ 11.9 $ 118.6 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 (Dollars in millions, except share amounts, in thousands) Net income attributable to Koppers $ 11.5 $ 17.8 Loss from discontinued operations 0.0 (0.1 ) Income from continuing operations attributable to Koppers $ 11.5 $ 17.9 Weighted average common shares outstanding: Basic 20,575 20,894 Effect of dilutive securities 306 1,264 Diluted 20,881 22,158 Income per common share – continuing operations: Basic income per common share $ 0.56 $ 0.86 Diluted income per common share 0.55 0.81 Other data: Antidilutive securities excluded from computation of diluted earnings per common share 534 8 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 2019 Grant May March March March 2016 Grant Grant date price per share of stock option award $ 26.63 $ 39.10 $ 41.60 $ 44.10 $ 18.11 Expected dividend yield per share 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Expected life in years 6.14 5.73 5.73 5.77 5.96 Expected volatility 39.44 % 37.05 % 37.05 % 39.70 % 40.86 % Risk-free interest rate 2.53 % 2.82 % 2.67 % 2.13 % 1.45 % Grant date fair value per share $ 11.29 $ 15.48 $ 16.38 $ 17.90 $ 7.41 |
Summary of Performance Stock Units | The following table shows a summary of the performance stock units as of March 31, 2019: Performance Period Minimum Shares Target Shares Maximum Shares 2017 – 2019 0 110,262 220,524 2018 – 2020 0 128,093 256,186 2019 – 2021 0 156,287 312,574 |
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, 2019: Restricted Stock Units Performance Stock Units Total Stock Units Weighted Grant Date Fair Value per Unit Non-vested at December 31, 2018 223,561 271,123 494,684 $ 45.65 Granted 193,229 156,287 349,516 $ 32.74 Vested (79,520 ) (32,768 ) (112,288 ) $ 26.65 Non-vested at March 31, 2019 337,270 394,642 731,912 $ 40.69 |
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, 2019: Options Weighted Exercise Price per Option Weighted Average Remaining Contractual Term (in years) Aggregate Value (in millions) Outstanding at December 31, 2018 981,940 $ 29.63 Granted 145,301 $ 26.63 Outstanding at March 31, 2019 1,127,241 $ 29.24 6.11 $ 3.9 Exercisable at March 31, 2019 805,623 $ 28.25 4.80 $ 3.5 |
Schedule of Stock-based Compensation Expense Recognized | Stock Compensation Expense Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 (Dollars in millions) Stock-based compensation expense recognized: Selling, general and administrative expenses $ 2.9 $ 2.9 Less related income tax benefit 0.9 1.0 Decrease in net income attributable to Koppers $ 2.0 $ 1.9 Intrinsic value of exercised stock options $ 0.0 $ 0.2 Cash received from the exercise of stock options $ 0.0 $ 0.9 |
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 on the date of grant using the assumptions listed below: March 2019 Grant May March March Grant date price per share of performance award $ 26.63 $ 39.10 $ 41.60 $ 44.10 Expected dividend yield per share 0.00 % 0.00 % 0.00 % 0.00 % Expected volatility 39.00 % 39.40 % 39.40 % 43.50 % Risk-free interest rate 2.50 % 2.35 % 2.35 % 1.54 % Look-back period in years 2.82 2.84 2.84 2.83 Grant date fair value per share $ 40.30 $ 44.29 $ 47.12 $ 64.02 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 (Dollars in millions) Revenues from external customers: Railroad and Utility Products and Services $ 166.1 $ 108.4 Performance Chemicals 99.0 97.4 Carbon Materials and Chemicals 169.8 200.3 Total $ 434.9 $ 406.1 Intersegment revenues: Railroad and Utility Products and Services $ 0.3 $ 0.0 Performance Chemicals 3.1 1.8 Carbon Materials and Chemicals 17.9 18.2 Total $ 21.3 $ 20.0 Depreciation and amortization expense: Railroad and Utility Products and Services $ 4.8 $ 3.0 Performance Chemicals 4.9 4.4 Carbon Materials and Chemicals 4.9 4.4 Total $ 14.6 $ 11.8 Operating profit (loss): Railroad and Utility Products and Services $ 8.7 $ 1.1 Performance Chemicals 12.8 5.6 Carbon Materials and Chemicals 7.4 37.2 Corporate (a) (0.5 ) (0.6 ) Total $ 28.4 $ 43.3 (a) Operating loss for Corporate includes primarily general and administrative costs for Koppers Holdings Inc., the parent company of Koppers Inc. |
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, 2019 2018 (Dollars in millions) Railroad and Utility Products and Services: Railroad treated products $ 84.7 $ 79.4 Utility poles 54.5 11.5 Rail joints 8.3 8.3 Railroad infrastructure services 9.3 7.0 Other products 9.3 2.2 166.1 108.4 Performance Chemicals: Wood preservative products 91.3 89.5 Other products 7.7 7.9 99.0 97.4 Carbon Materials and Chemicals: Pitch and related products 107.0 129.2 Creosote and distillates 18.9 22.9 Phthalic anhydride and other chemicals 21.0 22.2 Naphthalene 12.8 13.1 Other products 10.1 12.9 169.8 200.3 Total $ 434.9 $ 406.1 |
Summary of Tangible and Intangible Assets by Segments | The following table sets forth tangible and intangible assets allocated to each of our segments as of the dates indicated: March 31, 2019 December 31, 2018 (Dollars in millions) Segment assets: Railroad and Utility Products and Services $ 567.6 $ 538.0 Performance Chemicals 472.6 446.9 Carbon Materials and Chemicals 504.6 457.1 All other 48.6 37.9 Total (a) $ 1,593.4 $ 1,479.9 Goodwill: Railroad and Utility Products and Services $ 120.7 $ 121.1 Performance Chemicals 175.7 175.4 Total $ 296.4 $ 296.5 (a) The increase in total assets as of March 31, 2019 includes $116 million attributable to the implementation of ASU No. 2016-02 “Leases (Topic 842).” |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, March 31, 2019 2018 Federal income tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 0.6 0.9 Foreign earnings taxed at different rates 1.7 3.5 Interest expense deduction limitation 6.9 0.0 Nondeductible expenses 1.2 0.0 Change in tax contingency reserves 0.1 0.1 Valuation allowance adjustments 0.0 (5.7 ) GILTI inclusion, net of foreign tax credits (0.8 ) 13.1 Other (0.3 ) 1.5 Estimated annual effective income tax rate 30.4 % 34.4 % |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Net Inventories | Net inventories as of March 31, 2019 and December 31, 2018 are summarized in the table below: March 31, 2019 December 31, 2018 (Dollars in millions) Raw materials $ 205.2 $ 199.5 Work in process 12.3 16.0 Finished goods 127.9 128.1 $ 345.4 $ 343.6 Less revaluation to LIFO 59.9 58.9 Net $ 285.5 $ 284.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment as of March 31, 2019 and December 31, 2018 are summarized in the table below: March 31, 2019 December 31, 2018 (Dollars in millions) Land $ 17.6 $ 17.5 Buildings 65.7 65.1 Machinery and equipment 807.9 800.9 $ 891.2 $ 883.5 Less accumulated depreciation 473.9 465.6 Net $ 417.3 $ 417.9 |
Pensions and Post-Retirement _2
Pensions and Post-Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018: Three Months Ended March 31, 2019 2018 (Dollars in millions) Service cost $ 0.4 $ 0.5 Interest cost 2.0 1.8 Expected return on plan assets (2.0 ) (2.1 ) Amortization of net loss 0.4 0.4 Net periodic benefit cost $ 0.8 $ 0.6 Defined contribution plan expense $ 1.6 $ 2.0 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Debt as of March 31, 2019 and December 31, 2018 was as follows: Weighted Average Interest Rate Maturity March 31, 2019 December 31, 2018 (Dollars in millions) Term Loan 5.82 % 2024 $ 90.0 $ 92.5 Revolving Credit Facility 5.82 % 2024 424.0 390.0 Construction and other loans 4.75 % 2020 10.2 20.1 Senior Notes due 2025 6.00 % 2025 500.0 500.0 Debt 1,024.2 1,002.6 Less short-term debt and current maturities of long-term debt 11.6 11.6 Less unamortized debt issuance costs 11.5 12.2 Long-term debt $ 1,001.1 $ 978.8 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 December 31, 2018 (Dollars in millions) Asset retirement obligation at beginning of year $ 27.0 $ 37.1 Accretion expense 0.4 1.7 Revision in estimated cash flows 1.0 0.8 Cash expenditures (2.3 ) (12.5 ) Currency translation 0.0 (0.1 ) Balance at end of period $ 26.1 $ 27.0 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019: (Dollars in millions) 2019 $ 23.4 2020 28.5 2021 22.0 2022 18.3 2023 12.7 Thereafter 51.8 Total lease payments $ 156.7 Less: Interest (39.6 ) Present value of lease liabilities $ 117.1 |
Schedule of Supplemental Consolidated Balance Sheet Information Related to Leases | Supplemental consolidated balance sheet information related to leases is as follows: March 31, 2019 (Dollars in millions) Operating leases: Operating lease right-of-use assets $ 116.3 Current operating lease liabilities $ 22.2 Operating lease liabilities 94.9 Total operating lease liabilities $ 117.1 Weighted average remaining lease term, in years 7.1 Weighted average discount rate 7.7 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Copper Swap Contracts | As of March 31, 2019 and December 31, 2018, we had outstanding copper swap contracts of the following amounts: Units Outstanding (in Pounds) Net Fair Value - Asset (Liability) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (Amounts in millions) Cash flow hedges 28.4 35.5 $ 1.5 $ (6.8 ) Not designated as hedges 11.0 13.3 0.8 (2.4 ) Total 39.4 48.8 $ 2.3 $ (9.2 ) |
Schedule of Fair Value of Outstanding Copper Swap Contracts Recorded in Balance Sheet | As of March 31, 2019 and December 31, 2018, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows: March 31, 2019 December 31, 2018 (Dollars in millions) Other current assets $ 2.4 $ 0.0 Other assets 1.2 0.0 Accrued liabilities (1.3 ) (9.0 ) Other long-term liabilities 0.0 (0.2 ) Net asset (liability) on balance sheet $ 2.3 $ (9.2 ) Accumulated other comprehensive gain (loss), net of tax $ 1.1 $ (5.3 ) |
Schedule of Fair Value of Outstanding Foreign Currency Forward Contracts | As of March 31, 2019 and December 31, 2018, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows: March 31, 2019 December 31, 2018 (Dollars in millions) Other current assets $ 0.6 $ 0.9 Accrued liabilities (1.0 ) (1.0 ) Net liability on balance sheet $ (0.4 ) $ (0.1 ) |
Summary of Net Currency Units Outstanding | As of March 31, 2019 and December 31, 2018, the net currency units outstanding for these contracts were: March 31, 2019 December 31, 2018 (In millions) British Pounds GBP 5.7 GBP 5.7 New Zealand Dollars NZD 16.0 NZD 16.0 United States Dollars USD 5.5 USD 6.0 Canadian Dollars CAD 8.7 CAD 0.0 Euro EUR 1.2 EUR 1.2 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in Accrued Liability for Environmental Matters | The following table reflects changes in the accrued liability for environmental matters, of which $3.5 million and $3.5 million are classified as current liabilities at March 31, 2019 and December 31, 2018, respectively: Period ended March 31, 2019 December 31, 2018 (Dollars in millions) Balance at beginning of year $ 10.1 $ 13.9 Expense 0.0 0.9 Reversal of reserves 0.0 (2.4 ) Cash expenditures (0.1 ) (3.8 ) Acquisition 0.0 1.9 Currency translation 0.1 (0.4 ) Balance at end of period $ 10.1 $ 10.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 are as follows: March 31, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value (Dollars in millions) Financial assets: Cash and cash equivalents, including restricted cash $ 38.1 $ 38.1 $ 40.6 $ 40.6 Investments and other assets (a) 1.2 1.2 1.2 1.2 Financial liabilities: Long-term debt (including current portion) $ 1,002.7 $ 1,024.2 $ 945.3 $ 1,002.6 (a) Excludes equity method investments. |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets | $ 116.3 | $ 0 | |
Operating lease liabilities | 117.1 | ||
ASU No. 2017-12 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Reclassification of unrealized gain from retained earnings to accumulated other comprehensive loss | $ 3.9 | ||
Accounting Standards Update 2016-02 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease right-of-use assets | $ 119 | ||
Operating lease liabilities | $ 119 |
Plant Closures and Divestitur_3
Plant Closures and Divestitures - Additional Information (Detail) | Nov. 30, 2016 | Mar. 31, 2016 | Jul. 31, 2015 |
Discontinued Operations Disposed Of By Means Other Than Sale [Member] | China [Member] | Carbon Materials and Chemicals [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Percentage of operations in Tangshan, China owned by the company | 60.00% | ||
Tangshan Koppers Kailuan Carbon Chemical Company Limited [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Ownership percentage | 30.00% | ||
KSA Limited Partnership [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Ownership percentage | 50.00% |
Plant Closures and Divestitur_4
Plant Closures and Divestitures - Summary of Restructuring Activities and Related Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Reserve, Beginning Balance | $ 8.1 | $ 18.3 |
Accrual | 0.3 | 4.9 |
Cost charged against assets | (2.1) | |
Reversal of accrued charges | (0.9) | |
Cash paid | (2) | (11.8) |
Currency translation | (0.3) | |
Reserve, Ending Balance | 6.4 | 8.1 |
Severance and Employee Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve, Beginning Balance | 1.7 | 1.7 |
Accrual | 0 | 0 |
Cost charged against assets | 0 | |
Reversal of accrued charges | 0 | |
Cash paid | (0.3) | 0 |
Currency translation | 0 | |
Reserve, Ending Balance | 1.4 | 1.7 |
Environmental Remediation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve, Beginning Balance | 0 | 2.7 |
Accrual | 0 | 0.9 |
Cost charged against assets | 0 | |
Reversal of accrued charges | 0 | |
Cash paid | 0 | (3.4) |
Currency translation | (0.2) | |
Reserve, Ending Balance | 0 | 0 |
Asset Retirement [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve, Beginning Balance | 3.6 | 10.6 |
Accrual | 0.3 | 1.8 |
Cost charged against assets | 0 | |
Reversal of accrued charges | (0.9) | |
Cash paid | (1.7) | (7.9) |
Currency translation | 0 | |
Reserve, Ending Balance | 2.2 | 3.6 |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reserve, Beginning Balance | 2.8 | 3.3 |
Accrual | 0 | 2.2 |
Cost charged against assets | (2.1) | |
Reversal of accrued charges | 0 | |
Cash paid | 0 | (0.5) |
Currency translation | (0.1) | |
Reserve, Ending Balance | $ 2.8 | $ 2.8 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Apr. 10, 2018USD ($)FacilityYard | Feb. 28, 2018USD ($)Facility | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||
Combined costs related to acquisitions | $ 2.1 | ||
Koppers Utility and Industrial Products Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 201.3 | ||
Number of manufacturing facilities | Facility | 9 | ||
Number of distribution yards | Yard | 19 | ||
Koppers Recovery Resources LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 62.8 | ||
Number of processing facilities | Facility | 2 |
Acquisitions - Summary of Reven
Acquisitions - Summary of Revenue and Income from Continuing Operations (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | |
Business Combinations [Abstract] | |
Pro forma revenue | $ | $ 452.5 |
Pro forma income from continuing operations attributable to Koppers | $ | $ 17.8 |
Pro forma income per share - continuing operations, Basic | $ / shares | $ 0.85 |
Pro forma income per share - continuing operations, Diluted | $ / shares | $ 0.80 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2018 | Dec. 31, 2017 |
Disaggregation Of Revenue [Line Items] | |||
Cumulative increase to opening balance of retained earnings | $ 0.3 | ||
Impact of restatement on revenue not previously recognized | 5.3 | ||
Impact of restatement on cost of goods sold not previously recognized | $ 5 | ||
Accounts Receivable | |||
Disaggregation Of Revenue [Line Items] | |||
Contract assets | $ 7 | $ 5.3 |
Comprehensive Income and Equi_3
Comprehensive Income and Equity - Schedule of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Net income | $ 12.4 | $ 23.7 |
Changes in other comprehensive income: | ||
Currency translation adjustment | 1.8 | 1.2 |
Unrealized gain (loss) on cash flow hedges, net of tax (expense) benefit of $(2.7) and $4.9 | 6.2 | (9.3) |
Change in accounting standard | 0 | 0.3 |
Unrecognized pension net loss, net of tax (expense) of $(0.1) | 0.2 | 0.3 |
Total comprehensive income | 20.6 | 16.2 |
Comprehensive income attributable to noncontrolling interests | 1.1 | 6.1 |
Comprehensive income attributable to Koppers | $ 19.5 | $ 10.1 |
Comprehensive Income and Equi_4
Comprehensive Income and Equity - Schedule of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Tax (expense) benefit, unrealized gain (loss) on cash flow hedges | $ (2.7) | $ 4.9 |
Tax (expense), unrecognized pension net loss | $ (0.1) | $ (0.1) |
Comprehensive Income and Equi_5
Comprehensive Income and Equity - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Equity [Abstract] | ||
Income (loss) related to derivative instrument | $ (0.6) | $ 2.5 |
Comprehensive Income and Equi_6
Comprehensive Income and Equity - Schedule of Change in Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 67 | $ 105.8 |
Net income | 12.4 | 23.7 |
Issuance of common stock | 0.3 | 1.3 |
Employee stock plans | 2.9 | 2.8 |
Other comprehensive income | ||
Currency translation adjustment | 1.8 | 1.2 |
Unrealized gain on cash flow hedges | 6.2 | (9.3) |
Change in accounting standard | 0 | 0.3 |
Unrecognized pension net loss | 0.2 | 0.3 |
Repurchases of common stock | (0.8) | (7.5) |
Balance | 90 | 118.6 |
Common Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 0.2 | 0.2 |
Net income | 0 | 0 |
Issuance of common stock | 0 | 0 |
Employee stock plans | 0 | 0 |
Other comprehensive income | ||
Currency translation adjustment | 0 | 0 |
Unrealized gain on cash flow hedges | 0 | 0 |
Change in accounting standard | 0 | |
Unrecognized pension net loss | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Balance | 0.2 | 0.2 |
Additional Paid-in Capital [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 206 | 190.6 |
Net income | 0 | 0 |
Issuance of common stock | 0.3 | 1.3 |
Employee stock plans | 2.9 | 2.8 |
Other comprehensive income | ||
Currency translation adjustment | 0 | 0 |
Unrealized gain on cash flow hedges | 0 | 0 |
Change in accounting standard | 0 | |
Unrecognized pension net loss | 0 | 0 |
Repurchases of common stock | (0.2) | 0 |
Balance | 209 | 194.7 |
Retained Earnings [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 27.2 | 7.4 |
Net income | 11.5 | 17.8 |
Issuance of common stock | 0 | 0 |
Employee stock plans | 0 | 0 |
Other comprehensive income | ||
Currency translation adjustment | 0 | 0 |
Unrealized gain on cash flow hedges | 0 | 0 |
Change in accounting standard | (3.6) | |
Unrecognized pension net loss | 0 | 0 |
Repurchases of common stock | 0.1 | 0 |
Balance | 38.8 | 21.6 |
Accumulated Other Comprehensive (Loss) Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (87.2) | (40.1) |
Net income | 0 | 0 |
Issuance of common stock | 0 | 0 |
Employee stock plans | 0 | 0 |
Other comprehensive income | ||
Currency translation adjustment | 1.5 | 1.1 |
Unrealized gain on cash flow hedges | 6.2 | (9.3) |
Change in accounting standard | 3.9 | |
Unrecognized pension net loss | 0.2 | 0.3 |
Repurchases of common stock | 0.1 | (0.1) |
Balance | (79.2) | (44.2) |
Treasury Stock [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (90) | (58.2) |
Net income | 0 | 0 |
Issuance of common stock | 0 | 0 |
Employee stock plans | 0 | 0 |
Other comprehensive income | ||
Currency translation adjustment | 0 | 0 |
Unrealized gain on cash flow hedges | 0 | 0 |
Change in accounting standard | 0 | |
Unrecognized pension net loss | 0 | 0 |
Repurchases of common stock | (0.8) | (7.4) |
Balance | (90.8) | (65.6) |
Noncontrolling Interests [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 10.8 | 5.9 |
Net income | 0.9 | 5.9 |
Issuance of common stock | 0 | 0 |
Employee stock plans | 0 | 0 |
Other comprehensive income | ||
Currency translation adjustment | 0.3 | 0.1 |
Unrealized gain on cash flow hedges | 0 | 0 |
Change in accounting standard | 0 | |
Unrecognized pension net loss | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Balance | $ 12 | $ 11.9 |
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, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Koppers | $ 11.5 | $ 17.8 |
Loss from discontinued operations | 0 | (0.1) |
Income from continuing operations attributable to Koppers | $ 11.5 | $ 17.9 |
Weighted average common shares outstanding: | ||
Basic | 20,575 | 20,894 |
Effect of dilutive securities | 306 | 1,264 |
Diluted | 20,881 | 22,158 |
Income per common share – continuing operations: | ||
Basic income per common share | $ 0.56 | $ 0.86 |
Diluted income per common share | $ 0.55 | $ 0.81 |
Other data: | ||
Antidilutive securities excluded from computation of diluted earnings per common share | 534 | 8 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Future compensation expense related to non-vested stock-based compensation arrangements | $ | $ 25 |
Future compensation expense, weighted-average expected period of recognition in months | 32 months |
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] | |
Stock-based awards, vesting period | 3 years |
Vesting performance stock units if minimum performance criteria are not achieved | shares | 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 | 200.00% |
Performance Stock Units [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target award earned by participants | 0.00% |
Performance Stock Units [Member] | Target Shares [Member] | 2016 - 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 13.00% |
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 | 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, 2019$ / shares | |
March 2019 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 26.63 |
Expected dividend yield per share | 0.00% |
Expected volatility | 39.44% |
Risk-free interest rate | 2.53% |
Grant date fair value per share | $ 11.29 |
March 2019 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 | $ 26.63 |
Expected dividend yield per share | 0.00% |
Expected volatility | 39.00% |
Risk-free interest rate | 2.50% |
Look-back period in years | 2 years 9 months 25 days |
Grant date fair value per share | $ 40.30 |
May 2018 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 39.10 |
Expected dividend yield per share | 0.00% |
Expected volatility | 37.05% |
Risk-free interest rate | 2.82% |
Grant date fair value per share | $ 15.48 |
May 2018 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 | $ 39.10 |
Expected dividend yield per share | 0.00% |
Expected volatility | 39.40% |
Risk-free interest rate | 2.35% |
Look-back period in years | 2 years 10 months 2 days |
Grant date fair value per share | $ 44.29 |
March 2018 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 41.60 |
Expected dividend yield per share | 0.00% |
Expected volatility | 37.05% |
Risk-free interest rate | 2.67% |
Grant date fair value per share | $ 16.38 |
March 2018 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 | $ 41.60 |
Expected dividend yield per share | 0.00% |
Expected volatility | 39.40% |
Risk-free interest rate | 2.35% |
Look-back period in years | 2 years 10 months 2 days |
Grant date fair value per share | $ 47.12 |
March 2017 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of performance award | $ 44.10 |
Expected dividend yield per share | 0.00% |
Expected volatility | 39.70% |
Risk-free interest rate | 2.13% |
Grant date fair value per share | $ 17.90 |
March 2017 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 | $ 44.10 |
Expected dividend yield per share | 0.00% |
Expected volatility | 43.50% |
Risk-free interest rate | 1.54% |
Look-back period in years | 2 years 9 months 29 days |
Grant date fair value per share | $ 64.02 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Performance Stock Units (Detail) - shares | Mar. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 731,912 | 494,684 |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 394,642 | 271,123 |
Minimum [Member] | 2017 - 2019 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 0 | |
Minimum [Member] | 2018 - 2020 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 0 | |
Minimum [Member] | 2019 - 2021 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 0 | |
Target Shares [Member] | 2017 - 2019 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 110,262 | |
Target Shares [Member] | 2018 - 2020 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 128,093 | |
Target Shares [Member] | 2019 - 2021 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 156,287 | |
Maximum [Member] | 2017 - 2019 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 220,524 | |
Maximum [Member] | 2018 - 2020 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 256,186 | |
Maximum [Member] | 2019 - 2021 [Member] | Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares outstanding | 312,574 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Status and Activity of Non-Vested Stock Units (Detail) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Beginning Balance | 494,684 |
Granted | 349,516 |
Vested | (112,288) |
Non-vested, Ending Balance | 731,912 |
Beginning Balance, Non-vested, Weighted Average Grant Date Fair Value per Unit | $ / shares | $ 45.65 |
Granted, Weighted Average Grant Date Fair Value per Unit | $ / shares | 32.74 |
Vested, Weighted Average Grant Date Fair Value per Unit | $ / shares | 26.65 |
Ending Balance, Non-vested, Weighted Average Grant Date Fair Value per Unit | $ / shares | $ 40.69 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Beginning Balance | 223,561 |
Granted | 193,229 |
Vested | (79,520) |
Non-vested, Ending Balance | 337,270 |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, Beginning Balance | 271,123 |
Granted | 156,287 |
Vested | (32,768) |
Non-vested, Ending Balance | 394,642 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options Fair Value Assumptions (Detail) | 3 Months Ended |
Mar. 31, 2019$ / shares | |
March 2019 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 26.63 |
Expected dividend yield per share | 0.00% |
Expected life in years | 6 years 1 month 20 days |
Expected volatility | 39.44% |
Risk-free interest rate | 2.53% |
Grant date fair value per share | $ 11.29 |
May 2018 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 39.10 |
Expected dividend yield per share | 0.00% |
Expected life in years | 5 years 8 months 23 days |
Expected volatility | 37.05% |
Risk-free interest rate | 2.82% |
Grant date fair value per share | $ 15.48 |
March 2018 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 41.60 |
Expected dividend yield per share | 0.00% |
Expected life in years | 5 years 8 months 23 days |
Expected volatility | 37.05% |
Risk-free interest rate | 2.67% |
Grant date fair value per share | $ 16.38 |
March 2017 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 44.10 |
Expected dividend yield per share | 0.00% |
Expected life in years | 5 years 9 months 7 days |
Expected volatility | 39.70% |
Risk-free interest rate | 2.13% |
Grant date fair value per share | $ 17.90 |
March 2016 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date price per share of stock option award | $ 18.11 |
Expected dividend yield per share | 0.00% |
Expected life in years | 5 years 11 months 15 days |
Expected volatility | 40.86% |
Risk-free interest rate | 1.45% |
Grant date fair value per share | $ 7.41 |
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, 2019USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options, Outstanding at December 31, 2018 | shares | 981,940 |
Options, Granted | shares | 145,301 |
Options, Outstanding at March 31, 2019 | shares | 1,127,241 |
Options, Exercisable at March 31, 2019 | shares | 805,623 |
Weighted Average Exercise Price per Option, Outstanding at December 31, 2018 | $ / shares | $ 29.63 |
Weighted Average Exercise Price per Option, Granted | $ / shares | 26.63 |
Weighted Average Exercise Price per Option, Outstanding at March 31, 2019 | $ / shares | 29.24 |
Weighted Average Exercise Price per Option, Exercisable at March 31, 2019 | $ / shares | $ 28.25 |
Weighted Average Remaining Contractual Term, Outstanding at March 31, 2019 | 6 years 1 month 9 days |
Weighted Average Remaining Contractual Term, Exercisable at March 31, 2019 | 4 years 9 months 18 days |
Aggregate Intrinsic Value, Outstanding at March 31, 2019 | $ | $ 3.9 |
Aggregate Intrinsic Value, Exercisable at March 31, 2019 | $ | $ 3.5 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-based compensation expense recognized: | ||
Less related income tax benefit | $ 0.9 | $ 1 |
Decrease in net income attributable to Koppers | 2 | 1.9 |
Intrinsic value of exercised stock options | 0 | 0.2 |
Cash received from the exercise of stock options | 0 | 0.9 |
Selling, General and Administrative Expenses [Member] | ||
Stock-based compensation expense recognized: | ||
Stock-based compensation expense | $ 2.9 | $ 2.9 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Results of Segment Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenues from external customers: | |||
Net sales | $ 434.9 | $ 406.1 | |
Depreciation and amortization expense | 14.6 | 11.8 | |
Operating profit (loss) | 28.4 | 43.3 | |
Railroad and Utility Products and Services [Member] | |||
Revenues from external customers: | |||
Net sales | 166.1 | 108.4 | |
Performance Chemicals [Member] | |||
Revenues from external customers: | |||
Net sales | 99 | 97.4 | |
Carbon Materials and Chemicals [Member] | |||
Revenues from external customers: | |||
Net sales | 169.8 | 200.3 | |
Operating Segments [Member] | Railroad and Utility Products and Services [Member] | |||
Revenues from external customers: | |||
Net sales | 166.1 | 108.4 | |
Depreciation and amortization expense | 4.8 | 3 | |
Operating profit (loss) | 8.7 | 1.1 | |
Operating Segments [Member] | Performance Chemicals [Member] | |||
Revenues from external customers: | |||
Net sales | 99 | 97.4 | |
Depreciation and amortization expense | 4.9 | 4.4 | |
Operating profit (loss) | 12.8 | 5.6 | |
Operating Segments [Member] | Carbon Materials and Chemicals [Member] | |||
Revenues from external customers: | |||
Net sales | 169.8 | 200.3 | |
Depreciation and amortization expense | 4.9 | 4.4 | |
Operating profit (loss) | 7.4 | 37.2 | |
Intersegment [Member] | |||
Revenues from external customers: | |||
Net sales | 21.3 | 20 | |
Intersegment [Member] | Railroad and Utility Products and Services [Member] | |||
Revenues from external customers: | |||
Net sales | 0.3 | 0 | |
Intersegment [Member] | Performance Chemicals [Member] | |||
Revenues from external customers: | |||
Net sales | 3.1 | 1.8 | |
Intersegment [Member] | Carbon Materials and Chemicals [Member] | |||
Revenues from external customers: | |||
Net sales | 17.9 | 18.2 | |
Corporate, Non-Segment [Member] | |||
Revenues from external customers: | |||
Operating profit (loss) | [1] | $ (0.5) | $ (0.6) |
[1] | Operating loss for Corporate includes primarily general and administrative costs for Koppers Holdings Inc., the parent company of Koppers Inc. |
Segment Information - Schedule
Segment Information - Schedule of Segment Revenues for Significant Product Lines (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 434.9 | $ 406.1 |
Railroad and Utility Products and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 166.1 | 108.4 |
Railroad and Utility Products and Services [Member] | Railroad Treated Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 84.7 | 79.4 |
Railroad and Utility Products and Services [Member] | Utility Poles [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 54.5 | 11.5 |
Railroad and Utility Products and Services [Member] | Rail Joints [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8.3 | 8.3 |
Railroad and Utility Products and Services [Member] | Railroad Infrastructure Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9.3 | 7 |
Railroad and Utility Products and Services [Member] | Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 9.3 | 2.2 |
Performance Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 99 | 97.4 |
Performance Chemicals [Member] | Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 7.7 | 7.9 |
Performance Chemicals [Member] | Wood Preservative Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 91.3 | 89.5 |
Carbon Materials and Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 169.8 | 200.3 |
Carbon Materials and Chemicals [Member] | Other Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 10.1 | 12.9 |
Carbon Materials and Chemicals [Member] | Pitch and Related Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 107 | 129.2 |
Carbon Materials and Chemicals [Member] | Phthalic Anhydride and Other Chemicals [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 21 | 22.2 |
Carbon Materials and Chemicals [Member] | Creosote and Distillates [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 18.9 | 22.9 |
Carbon Materials and Chemicals [Member] | Naphthalene [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 12.8 | $ 13.1 |
Segment Information - Summary_2
Segment Information - Summary of Tangible and Intangible Assets by Segments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | [1] | $ 1,593.4 | $ 1,479.9 |
Goodwill | 296.4 | 296.5 | |
Railroad and Utility Products and Services [Member] | Operating Segments [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | 567.6 | 538 | |
Goodwill | 120.7 | 121.1 | |
Performance Chemicals [Member] | Operating Segments [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | 472.6 | 446.9 | |
Goodwill | 175.7 | 175.4 | |
Carbon Materials and Chemicals [Member] | Operating Segments [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | 504.6 | 457.1 | |
All Other [Member] | Operating Segments [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | $ 48.6 | $ 37.9 | |
[1] | The increase in total assets as of March 31, 2019 includes $116 million attributable to the implementation of ASU No. 2016-02 “Leases (Topic 842).” |
Segment Information - Summary_3
Segment Information - Summary of Tangible and Intangible Assets by Segments ((Parenthetical)) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting [Abstract] | ||
Lease assets | $ 116.3 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Estimated annual effective income tax rate | 30.40% | 34.40% | |
Income taxes as a percentage of pretax income | (0.80%) | 27.90% | |
Net tax benefit included in income taxes, discrete items | $ 3.8 | $ 2.2 | |
Unrecognized tax benefits | 2.3 | $ 7 | |
Unrecognized tax benefits with impact on the effective tax rate | 2.3 | 3.7 | |
Accrued interest expense and penalties | $ 0.8 | $ 2.2 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes Reconciled with Federal Statutory Rate (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | 0.60% | 0.90% |
Foreign earnings taxed at different rates | 1.70% | 3.50% |
Interest expense deduction limitation | 6.90% | 0.00% |
Nondeductible expenses | 1.20% | 0.00% |
Change in tax contingency reserves | 0.10% | 0.10% |
Valuation allowance adjustments | 0.00% | (5.70%) |
GILTI inclusion, net of foreign tax credits | (0.80%) | 13.10% |
Other | (0.30%) | 1.50% |
Estimated annual effective income tax rate | 30.40% | 34.40% |
Inventories - Components of Net
Inventories - Components of Net Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 205.2 | $ 199.5 |
Work in process | 12.3 | 16 |
Finished goods | 127.9 | 128.1 |
Inventories, gross | 345.4 | 343.6 |
Less revaluation to LIFO | 59.9 | 58.9 |
Net | $ 285.5 | $ 284.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 891.2 | $ 883.5 |
Less accumulated depreciation | 473.9 | 465.6 |
Net | 417.3 | 417.9 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 17.6 | 17.5 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 65.7 | 65.1 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 807.9 | $ 800.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Pensions and Post-Retirement _3
Pensions and Post-Retirement Benefit Plans - Additional Information (Detail) | Mar. 31, 2019Plan |
Defined Benefit Plan Disclosure [Line Items] | |
Number of domestic non-qualified defined benefit plans | 3 |
Salaried and Hourly Employees [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of domestic non-qualified defined benefit plans | 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, 2019 | Mar. 31, 2018 | |
Postemployment Benefits [Abstract] | ||
Service cost | $ 0.4 | $ 0.5 |
Interest cost | 2 | 1.8 |
Expected return on plan assets | (2) | (2.1) |
Amortization of net loss | 0.4 | 0.4 |
Net periodic benefit cost | 0.8 | 0.6 |
Defined contribution plan expense | $ 1.6 | $ 2 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt | $ 1,024.2 | $ 1,002.6 |
Less short-term debt and current maturities of long-term debt | 11.6 | 11.6 |
Less unamortized debt issuance costs | 11.5 | 12.2 |
Long-term debt | $ 1,001.1 | 978.8 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 5.82% | |
Debt, Maturity | 2024 | |
Debt | $ 90 | 92.5 |
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 5.82% | |
Debt, Maturity | 2024 | |
Debt | $ 424 | 390 |
Committed Loan Facility Agreements [Member] | Construction Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 4.75% | |
Debt, Maturity | 2020 | |
Debt | $ 10.2 | 20.1 |
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 6.00% | |
Debt, Maturity | 2025 | |
Debt | $ 500 | $ 500 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Feb. 15, 2022 | Apr. 10, 2018 | Mar. 31, 2019 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturity date | May 1, 2024 | ||
Revolving credit facility | $ 600,000,000 | ||
Revolving credit facility, extended maturity period | 1 year | ||
Revolving credit facility, extended maturity date | 2023-04 | ||
Revolving credit facility, variable interest rate basis | LIBOR | ||
Secured Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Secured term loan | $ 100,000,000 | ||
Quarterly amortization | $ 2,500,000 | ||
Secured term loan maturity period | 5 years | ||
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior notes, 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. | ||
Debt instrument, redemption price percentage | 104.50% | ||
Debt maturity date | Feb. 15, 2025 | ||
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member] | Scenario, Forecast [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price percentage | 101.50% | ||
Senior Secured Credit Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit, amount outstanding | $ 18,700,000 | ||
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, unused borrowing capacity | $ 139,200,000 | ||
Committed Loan Facility Agreements [Member] | Construction Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, frequency of periodic payment | semi-annual | ||
Debt maturity, month and year | 2020-12 | ||
Number of installments for repayment of loans | 6 months | ||
Committed Loan Facility Agreements [Member] | Construction Loans [Member] | Koppers Carbon and Chemical Company Limited [Member] | |||
Debt Instrument [Line Items] | |||
Percentage ownership of subsidiary | 75.00% | ||
Construction loan facility borrowing capacity | $ 10,200,000 |
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, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation at beginning of year | $ 27 | $ 37.1 |
Accretion expense | 0.4 | 1.7 |
Revision in estimated cash flows | 1 | 0.8 |
Cash expenditures | (2.3) | (12.5) |
Currency translation | 0 | (0.1) |
Balance at end of period | $ 26.1 | $ 27 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 8 |
Variable lease costs | $ 0.9 |
Leases - Summary of Amount and
Leases - Summary of Amount and Timing of Cash Flows From Operating Leases (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 23.4 |
2020 | 28.5 |
2021 | 22 |
2022 | 18.3 |
2023 | 12.7 |
Thereafter | 51.8 |
Total lease payments | 156.7 |
Less: Interest | (39.6) |
Operating lease liabilities | $ 117.1 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Consolidated Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Operating leases: | ||
Operating lease right-of-use assets | $ 116.3 | $ 0 |
Current operating lease liabilities | 22.2 | 0 |
Operating lease liabilities | 94.9 | $ 0 |
Total operating lease liabilities | $ 117.1 | |
Weighted average remaining lease term, in years | 7 years 1 month 6 days | |
Weighted average discount rate | 7.70% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||
Maximum period hedged in cash flow hedge | 30 months | |
Unrealized gains, reclassification period | 12 months | |
Unrealized gains, net of tax benefit, expected to be reclassified from other comprehensive income into earnings | $ (0.8) | |
Copper Swap Contracts [Member] | ||
Derivative [Line Items] | ||
Gain (loss) recognized in earnings | $ 3.1 | $ (3.5) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Outstanding Copper Swap Contracts (Detail) - Copper Swap Contracts [Member] £ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) |
Derivatives Fair Value [Line Items] | ||||
Copper Swap Contracts Units Outstanding | £ | £ 39.4 | £ 48.8 | ||
Net Fair Value - Asset (Liability) | $ | $ 2.3 | $ (9.2) | ||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||
Derivatives Fair Value [Line Items] | ||||
Copper Swap Contracts Units Outstanding | £ | 28.4 | 35.5 | ||
Net Fair Value - Asset (Liability) | $ | 1.5 | (6.8) | ||
Not Designated as Hedging Instrument | ||||
Derivatives Fair Value [Line Items] | ||||
Copper Swap Contracts Units Outstanding | £ | £ 11 | £ 13.3 | ||
Net Fair Value - Asset (Liability) | $ | $ 0.8 | $ (2.4) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Fair Value of Outstanding Copper Swap Contracts Recorded in Balance Sheet (Detail) - Copper Swap Contracts [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Net Fair Value - Asset (Liability) | $ 2.3 | $ (9.2) |
Accumulated other comprehensive gain (loss), net of tax | 1.1 | (5.3) |
Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Net Fair Value - Asset (Liability) | 2.4 | 0 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Net Fair Value - Asset (Liability) | 1.2 | 0 |
Accrued Liabilities [Member] | ||
Derivative [Line Items] | ||
Net Fair Value - Asset (Liability) | (1.3) | (9) |
Other Long-term Liabilities [Member] | ||
Derivative [Line Items] | ||
Net Fair Value - Asset (Liability) | $ 0 | $ (0.2) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Fair Value of Outstanding Foreign Currency Forward Contracts (Detail) - Forward Contracts [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Not designated net fair value - net liability | $ (0.4) | $ (0.1) |
Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Not designated gross derivative assets | 0.6 | 0.9 |
Accrued Liabilities [Member] | ||
Derivative [Line Items] | ||
Not designated gross derivative liability | $ (1) | $ (1) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Net Currency Units Outstanding (Detail) | Mar. 31, 2019USD ($) | Mar. 31, 2019GBP (£) | Mar. 31, 2019NZD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018NZD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018EUR (€) |
Offsetting [Abstract] | ||||||||||
Net currency units outstanding | $ 5,500,000 | £ 5,700,000 | $ 16,000,000 | $ 8,700,000 | € 1,200,000 | $ 6,000,000 | £ 5,700,000 | $ 16,000,000 | $ 0 | € 1,200,000 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2004USD ($) | Mar. 31, 2019USD ($)StatePlaintiffCaseClaimsitePartyPlant | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of states with new claims filed | State | 2 | |||
Number of plaintiffs | Plaintiff | 65 | |||
Environmental remediation and regulation liability | $ 10,100,000 | $ 10,100,000 | $ 13,900,000 | |
Accrued liability for environmental matters, current | 3,500,000 | 3,500,000 | ||
Portland Harbor and Newark Bay CERCLA sites [Member] | ||||
Loss Contingencies [Line Items] | ||||
Costs of participating in PRP group | $ 2,200,000 | |||
Beazer East [Member] | ||||
Loss Contingencies [Line Items] | ||||
Environmental legal indemnification expense | $ 7,000,000 | |||
Sites listed on National Priorities List | site | 1 | |||
Compensatory Damages [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | Case | 35 | |||
Punitive Damages [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | Case | 30 | |||
Indemnification Agreement [Member] | Beazer East [Member] | ||||
Loss Contingencies [Line Items] | ||||
Environmental remediation costs paid by others, per year | $ 11,000,000 | |||
Coal Tar Pitch Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | Case | 35 | |||
Reserve for legal proceedings | $ 0 | |||
Pavement Sealer Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of new claims filed | Claim | 10 | |||
Number of new claims filed a motion to consolidate | Claim | 9 | |||
Pennsylvania [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | Case | 34 | |||
Pennsylvania [Member] | Coal Tar Pitch Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | Case | 34 | |||
Tennessee [Member] | Coal Tar Pitch Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of cases | Case | 1 | |||
Compensatory damages | $ 15,000,000 | |||
Oregon [Member] | Portland Harbor CERCLA site [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 | $ 5,000,000 | |||
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 | $ 1,400,000 | |||
Number of plant sites | Plant | 1 |
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, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Balance at beginning of year | $ 10.1 | $ 13.9 |
Expense | 0 | 0.9 |
Reversal of reserves | 0 | (2.4) |
Cash expenditures | (0.1) | (3.8) |
Acquisition | 0 | 1.9 |
Currency translation | 0.1 | (0.4) |
Balance at end of period | $ 10.1 | $ 10.1 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Committed Loan Facility Agreements [Member] - Construction Loans [Member] - Koppers Carbon and Chemical Company Limited [Member] $ in Millions | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | |
Percentage of non-controlling shareholders | 25.00% |
Loan outstanding from 25-percent non-controlling share holder | $ 2.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents, including restricted cash | $ 38.1 | $ 40.6 | |
Investments and other assets | [1] | 1.2 | 1.2 |
Financial liabilities: | |||
Long-term debt (including current portion) | 1,002.7 | 945.3 | |
Carrying Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents, including restricted cash | 38.1 | 40.6 | |
Investments and other assets | [1] | 1.2 | 1.2 |
Financial liabilities: | |||
Long-term debt (including current portion) | $ 1,024.2 | $ 1,002.6 | |
[1] | Excludes equity method investments. |