Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2017shares | |
Document Information [Line Items] | |
Entity Registrant Name | Innophos Holdings, Inc. |
Trading Symbol | IPHS |
Entity Central Index Key | 1,364,099 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 19,475,127 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 29,800 | $ 53,487 |
Accounts receivable, net | 84,442 | 77,692 |
Inventories | 137,372 | 128,295 |
Other current assets | 28,276 | 23,894 |
Total current assets | 279,890 | 283,368 |
Property, plant and equipment, net | 206,333 | 205,459 |
Goodwill | 84,373 | 84,373 |
Intangibles and other assets, net | 66,990 | 69,811 |
Total assets | 637,586 | 643,011 |
Current liabilities: | ||
Accounts payable, trade and other | 45,698 | 51,611 |
Other current liabilities | 39,907 | 43,605 |
Total current liabilities | 85,605 | 95,216 |
Long-term debt | 189,000 | 185,000 |
Other long-term liabilities | 14,659 | 15,569 |
Total liabilities | 289,264 | 295,785 |
Commitments and contingencies (note 12) | ||
Stockholders’ equity: | ||
Common stock, par value $.001 per share; authorized 100,000,000 shares; issued 22,805,686 and 22,777,690; outstanding 19,475,127 and 19,455,011 shares | 19 | 19 |
Paid-in capital | 134,509 | 134,694 |
Common stock held in treasury, at cost (3,330,559 and 3,322,679 shares) | (175,411) | (175,051) |
Retained earnings | 390,602 | 389,048 |
Accumulated other comprehensive loss | (1,397) | (1,484) |
Total stockholders’ equity | 348,322 | 347,226 |
Total liabilities and stockholders’ equity | $ 637,586 | $ 643,011 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Common Stock, Shares, Issued | 22,805,686 | 22,777,690 |
Common Stock, Shares, Outstanding | 194,750,127 | 19,455,011 |
Treasury Stock, Shares | 3,330,559 | 3,322,679 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 165,944 | $ 189,630 |
Cost of goods sold | 129,401 | 148,914 |
Gross profit | 36,543 | 40,716 |
Operating expenses: | ||
Selling, general and administrative | 19,308 | 18,235 |
Research & development expenses | 830 | 996 |
Total operating expenses | 20,138 | 19,231 |
Operating income | 16,405 | 21,485 |
Interest expense, net | 1,353 | 1,799 |
Foreign exchange loss | (57) | (39) |
Income before income taxes | 15,109 | 19,725 |
Provision for income taxes | 4,186 | 6,883 |
Net income | 10,923 | 12,842 |
Net income attributable to participating common shareholders | $ 10,873 | $ 12,793 |
Income per participating share: | ||
Basic | $ 0.56 | $ 0.67 |
Diluted | $ 0.55 | $ 0.66 |
Weighted average participating shares outstanding: | ||
Basic | 19,376,258 | 19,229,501 |
Diluted | 19,694,751 | 19,430,029 |
Other comprehensive income (loss), net of tax: | ||
Change in interest rate swaps, (net of tax of ($56) and $219) | $ 92 | $ (358) |
Change in pension and post-retirement plans, (net of tax of ($10) and $50) | (5) | (142) |
Other comprehensive income (loss), net of tax | 87 | (500) |
Comprehensive income | $ 11,010 | $ 12,342 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ (56) | $ 219 |
Other Comprehensive Income (Loss) Pension and Post-Retirement Plans Tax Effect Period Increase Decrease | $ 10 | $ 50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows provided from operating activities | ||
Net income | $ 10,923,000 | $ 12,842,000 |
Adjustments to reconcile net income to net cash provided from operating activities: | ||
Depreciation and amortization | 9,581,000 | 9,282,000 |
Amortization of deferred financing charges | 107,000 | 168,000 |
Gain on sale of building | (153,000) | 0 |
Share-based compensation | 717,000 | 9,000 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (6,748,000) | (12,170,000) |
(Increase) decrease in inventories | (9,228,000) | 6,072,000 |
Increase in other current assets | (4,194,000) | (7,119,000) |
(Decrease) increase in accounts payable | (5,973,000) | 6,310,000 |
Decrease in other current liabilities | (3,827,000) | (16,886,000) |
Changes in other long-term assets and liabilities | (1,884,000) | (1,582,000) |
Net cash provided from operating activities | (10,679,000) | (3,074,000) |
Cash flows used for investing activities: | ||
Capital expenditures | (8,553,000) | (8,024,000) |
Proceeds from sale of building | 1,028,000 | 0 |
Net cash used for investing activities | (7,525,000) | (8,024,000) |
Cash flows (used for) provided by financing activities: | ||
Proceeds from exercise of stock options | 0 | 9,000 |
Long-term debt borrowings | 14,000,000 | 23,000,000 |
Long-term debt repayments | (10,000,000) | (5,001,000) |
Excess tax (deficiency) benefit from exercise of stock options | 0 | (331,000) |
Restricted stock forfeitures | (360,000) | 0 |
Dividends paid | (9,349,000) | (9,256,000) |
Net cash (used for) provided by financing activities | (5,709,000) | 8,421,000 |
Effect of foreign exchange rate changes on cash and cash equivalents | 226,000 | 206,000 |
Net change in cash | (23,687,000) | (2,471,000) |
Cash and cash equivalents at beginning of period | 53,487,000 | 17,905,000 |
Cash and cash equivalents at end of period | $ 29,800,000 | $ 15,434,000 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Number of Common Shares | Common Stock | Retained Earnings | Paid-in Capital | Accumulated Other Comprehensive Income(Loss) |
Balance, shares at Dec. 31, 2015 | 19,290,000 | |||||
Balance at Dec. 31, 2015 | $ 333,260 | $ 19 | $ 378,321 | $ (42,286) | $ (2,794) | |
Net income | 47,971 | 47,971 | ||||
Other comprehensive income (loss), net of tax | 1,310 | 1,310 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | (1,428) | (1,428) | ||||
Proceeds from stock award exercises and issuances | 192,000 | |||||
Share-based compensation | 3,732 | 3,732 | ||||
Excess tax benefits from exercise of stock options | (9) | (9) | ||||
Common stock repurchases | (27,000) | |||||
Restricted stock forfeitures | (366) | (366) | ||||
Dividends declared | $ (37,244) | (37,244) | ||||
Balance, shares at Dec. 31, 2016 | 19,455,011 | 19,455,000 | ||||
Balance at Dec. 31, 2016 | $ 347,226 | 19 | 389,048 | (40,357) | (1,484) | |
Net income | 10,923 | 10,923 | ||||
Other comprehensive income (loss), net of tax | 87 | 87 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | (902) | (902) | ||||
Proceeds from stock award exercises and issuances | 28,000 | |||||
Share-based compensation | 717 | 717 | ||||
Common stock repurchases | (8,000) | |||||
Restricted stock forfeitures | (360) | (360) | ||||
Dividends declared | $ (9,369) | (9,369) | ||||
Balance, shares at Mar. 31, 2017 | 194,750,127 | 19,475,000 | ||||
Balance at Mar. 31, 2017 | $ 348,322 | $ 19 | $ 390,602 | $ (40,902) | $ (1,397) |
Statements of Stockholders' Eq8
Statements of Stockholders' Equity (Unaudited) Statements of Stockholders' Equity Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Other Comprehensive Income (Loss), Tax | $ (46) | $ (725) |
Basis of Statement Presentation
Basis of Statement Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Statement Presentation Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Innophos have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP) for interim financial reporting and do not include all disclosures required by US GAAP for annual financial reporting, and should be read in conjunction with the audited consolidated and combined financial statements of the Company at December 31, 2016 and for the three years then ended. The accompanying unaudited condensed consolidated financial statements of the Company reflect all adjustments which management considers necessary for a fair statement of the results of operations for the interim periods and is subject to year-end adjustments. The results of operations for the interim periods are not necessarily indicative of the results for the full year. The December 31, 2016 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP. Recently Issued Accounting Standards Adopted In July 2015, the FASB issued guidance which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”),” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. Under the new guidance, inventory is “measured at the lower of cost and net realizable value,” which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The adoption of this standard did not have a material impact on our financial position, results of operations and related disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends Accounting Standards Codification ("ASC") Topic 718, Compensation - Stock Compensation. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The adoption of this standard did not have a material impact on our financial position, results of operations and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. We have elected to early adopt for testing dates after January 1, 2017 and the adoption of this standard did not have a material impact on our financial position, results of operations and related disclosures. Issued but not yet adopted In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In July 2015, the FASB approved the deferral of the effective date of this guidance by one year (with an option to early adopt at the original effective date), making it effective for the interim and annual periods beginning on or after December 15, 2017. As a result, this guidance will be effective for the Company beginning in fiscal year 2018, with an option to early adopt in fiscal year 2017. The guidance permits the use of either a retrospective or modified retrospective transition method. We will adopt the standard using the modified retrospective transition method on January 1, 2018 and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. Our ongoing evaluation of the impact of the guidance includes the revenue recognition of certain free on board destination point sales across all of our businesses. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. We are currently in the process of evaluating the impact of adoption of the ASU on our financial position, results of operations and related disclosures. In March 2016, the FASB issued ASU 2016-15, Clarification on Classification of Certain Cash Receipts and Cash Payments on the Statement of Cash Flows. ASU 2016-15 clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which reduces the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. This amendment should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. There are no new disclosure requirements. This ASU is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted in the first interim period of 2017. The adoption of this guidance is not expected to have a significant effect on our financial position, results of operations and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Under the ASU, changes in restricted cash and restricted cash equivalents would be included along with those of cash and cash equivalents in the statement of cash flows. As a result, entities would no longer present transfers between cash/equivalents and restricted cash/equivalents in the statement of cash flows. In addition, a reconciliation between the balance sheet and the statement of cash flows would be disclosed when the balance sheet includes more than one line item for cash/equivalents and restricted cash/equivalents. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We do not anticipate the adoption of the new accounting rules will have a material impact on our financial position, results of operations and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We would apply this guidance to applicable transactions after the adoption date. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that only the service cost component of net periodic benefit costs be recorded as compensation cost in the operating expense section of the income statement. All other components of net periodic benefit cost (interest cost, expected return on plan assets and amortization of net loss) will be presented in other income - net. This standard update is effective beginning with the first quarter 2018 and must be applied retrospectively. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share (EPS) | Earnings per Share (EPS) The Company accounts for earnings per share in accordance with ASC 260, which requires two calculations of earnings per share (EPS) to be disclosed: basic EPS and diluted EPS. Under ASC Subtopic 260-10-45, as of January 1, 2009 unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock, are considered participating securities for purposes of calculating EPS. Under the two-class method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below. The numerator for basic and diluted earnings per share is net earnings attributable to shareholders reduced by dividends attributable to unvested shares. The denominator for basic earnings per share is the weighted average number of common stock outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive outstanding stock options, performance share awards and restricted stock awards. The following is a reconciliation of the weighted average basic number of common shares outstanding to the diluted number of common and common stock equivalent shares outstanding and the calculation of earnings per share using the two-class method: Three Months Ended March 31, 2017 March 31, 2016 Net income $ 10,923 $ 12,842 Less: earnings attributable to unvested shares (50 ) (49 ) Net income available to participating common shareholders $ 10,873 $ 12,793 Weighted average number of participating common and potential common shares outstanding: Basic number of participating common shares outstanding 19,376,258 19,229,501 Dilutive effect of stock equivalents 318,493 200,528 Diluted number of weighted average participating common shares outstanding 19,694,751 19,430,029 Earnings per participating common share: Earnings per participating common share—Basic $ 0.56 $ 0.67 Earnings per participating common share—Diluted $ 0.55 $ 0.66 Total outstanding options, performance share awards and unvested restricted stock not included in the calculation of diluted earnings per share as the effect would be anti-dilutive 347,354 437,241 |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2017 | |
Dividends [Abstract] | |
Dividends [Text Block] | Dividends The following is the dividend activity for the three months ended March 31, 2017 and March 31, 2016 : Three Months Ended March 31 2017 2016 Dividends declared – per share $ 0.48 $ 0.48 Dividends declared – aggregate 9,349 9,256 Dividends paid – per share 0.48 0.48 Dividends paid – aggregate 9,349 9,256 Innophos Holdings, Inc. is a holding company that does not conduct any business operations of its own. As a result, it is dependent upon cash dividends, distributions and other transfers from its subsidiaries, most directly Innophos, Inc., its primary operating subsidiary, and Innophos Investments Holdings, Inc., a direct, wholly-owned subsidiary of Innophos Holdings, Inc. and the parent of Innophos, Inc., to make dividend payments on its common stock. |
Stockholders' Equity _ Share-Ba
Stockholders' Equity / Share-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | Stockholders’ Equity / Stock-Based Compensation The following table summarizes the components of stock-based compensation expense, all of which has been classified as selling, general and administrative expense: Three Months Ended March 31, March 31, Stock options $ 305 $ (226 ) Restricted stock 440 (170 ) Performance shares (28 ) 405 Total share-based compensation expense (a) $ 717 $ 9 (a) The three months ended March 31, 2016 includes a benefit of $524 for a change in estimate due to restructuring activities. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories [Text Block] | Inventories Inventories consist of the following: March 31, December 31, Raw materials $ 35,225 $ 33,185 Finished products 88,178 81,369 Spare parts 13,969 13,741 $ 137,372 $ 128,295 Inventory reserves for excess quantities, obsolescence or shelf-life expiration as of March 31, 2017 and December 31, 2016 were $12,574 and $13,422 , respectively. |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2017 | |
Other Current Assets: [Abstract] | |
Other Current Assets [Text Block] | Other Current Assets Other current assets consist of the following: March 31, December 31, Creditable taxes (value added taxes) $ 8,809 $ 9,722 Vendor inventory deposits (prepaid) 10,000 3,750 Prepaid income taxes 4,867 4,659 Prepaid insurance 1,480 2,248 Other 3,120 3,515 $ 28,276 $ 23,894 |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 3 Months Ended |
Mar. 31, 2017 | |
Intangibles and Other Assets, net: [Abstract] | |
Intangibles and Other Assets, net [Text Block] | Intangibles and Other Assets, net Intangibles and other assets consist of the following: Useful life (years) March 31, December 31, Developed technology and application patents, net of accumulated amortization of $28,513 for 2017 and $27,778 for 2016 7-20 $ 17,762 $ 18,497 Customer relationships, net of accumulated amortization of $19,259 for 2017 and $18,569 for 2016 5-15 19,553 20,243 Trade names and license agreements, net of accumulated amortization of $10,657 for 2017 and $10,315 for 2016 5-20 7,004 7,346 Non-compete agreements, net of accumulated amortization of $1,274 for 2017 and $1,268 for 2016 3-10 59 65 Total intangibles $ 44,378 $ 46,151 Deferred income taxes $ 18,432 $ 18,432 Deferred financing costs, net of accumulated amortization of $3,580 for 2017 and $3,473 for 2016 (see note 9) 2,043 2,150 Other tax assets — 997 Other assets 2,137 2,081 Total other assets $ 22,612 $ 23,660 $ 66,990 $ 69,811 |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Other Current Liabilities Other current liabilities consist of the following: March 31, December 31, Payroll related $ 8,941 $ 11,852 Taxes other than income taxes 2,408 2,624 Benefits and pensions 3,262 5,419 Freight and rebates 4,077 3,579 Income taxes 8,677 9,278 Restructuring and management transition reserve 3,729 4,737 Other 8,813 6,116 $ 39,907 $ 43,605 |
Debt and Interest
Debt and Interest | 3 Months Ended |
Mar. 31, 2017 | |
Short-term Borrowings, Long-Term Debt, and Interest Expense: [Abstract] | |
Debt and Interest | Short-Term Borrowings, Long-Term Debt, and Interest Expense Short-term borrowings and long-term debt consist of the following: March 31, December 31, Revolver borrowings under the credit facility due 2022 $ 189,000 $ 185,000 Total borrowings $ 189,000 $ 185,000 Less current portion — — Long-term debt $ 189,000 $ 185,000 The Company's credit facility includes a revolving line of credit from the lenders of up to $450.0 million , including a $20.0 million letter of credit sub-facility and a $20.0 million swingline loan facility, all maturing on December 22, 2022. The Credit Agreement also provides for possible additional revolving indebtedness under an incremental facility of up to $150.0 million (for an aggregate of revolving capacity up to $600.0 million ) upon future request by the Company to existing Lenders (and depending on their consent) or from other willing financial institutions invited by the Company and reasonably acceptable to the administrative agent to join in the Credit Agreement. This revolving credit facility increase, if implemented, may provide for higher applicable margins to either the increased portion or possibly the entire revolving credit facility, with limitations, than those in effect for the original revolving commitments under the Credit Agreement. As of March 31, 2017 , $189.0 million was outstanding under the revolving line of credit, which approximates fair value (determined using level 2 inputs within the fair value hierarchy) with total availability at $260.0 million , taking into account $1.0 million in face amount of letters of credit issued under the sub-facility. The current weighted average interest rate for all debt is 2.3% . Among its affirmative covenants, the credit agreement governing this credit facility requires the Company to maintain the following consolidated ratios (as defined and calculated according to the credit agreement) as of the end of each fiscal quarter: (a) “Total Leverage Ratio” less than or equal to 3.50 to 1.00 . (b) “Interest Coverage Ratio” greater than or equal to 3.00 to 1.00 . As of March 31, 2017 , the Company was in full compliance with all debt covenant requirements. In December 2012, Innophos entered into an interest rate swap, swapping the LIBOR exposure on $100.0 million floating rate debt, which is currently outstanding under the Credit Agreement, to a fixed rate to maturity obligation of 0.9475% expiring in December 2017. This interest rate swap has been designated as a cashflow hedge (Level 2) with the changes in value recorded through other comprehensive income. The fair value of this interest rate swap of approximately $0.2 million is recorded in other long-term assets as of March 31, 2017 . Based on $89.0 million outstanding borrowings as floating rate debt (amount not covered by the swap), an immediate increase of one percentage point would cause an increase to interest expense of approximately $0.9 million per year. We manage our interest rate risk by balancing the amount of fixed-rate and floating-rate debt to the extent practicable consistent with our credit status. Total interest paid by the Company for all indebtedness for the three months ended March 31, 2017 and March 31, 2016 was $1.3 million and $1.7 million , respectively. Interest expense, net consists of the following: Three months ended March 31, March 31, Interest expense $ 1,315 $ 1,711 Deferred financing cost 107 168 Interest income (9 ) (14 ) Less: amount capitalized for capital projects (60 ) (66 ) Total interest expense, net $ 1,353 $ 1,799 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Long-Term Liabilities Other long-term liabilities consist of the following: March 31, December 31, Deferred income taxes $ 1,420 $ 1,282 Pension and post retirement liabilities 8,150 7,689 Restructuring and management transition reserve 210 1,618 Uncertain tax positions 1,974 1,974 Environmental liabilities 1,100 1,100 Other liabilities 1,805 1,906 $ 14,659 $ 15,569 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The effective income tax rate on income before taxes was approximately 28% for the three months ended March 31, 2017 compared to approximately 35% for the comparable period in 2016. The change in the components of the effective tax rate are primarily due to the adoption of a new accounting pronouncement changing the accounting for tax benefits from stock option exercises and vesting of restricted stock and performance awards, which decreased the effective tax rate by 5% , a permanent adjustment attributable to an inventory obsolescence reserve in Mexico, which increased the effective tax rate by 1% in the prior year and increased income in lower tax rate jurisdictions, which decreased the effective tax rate by 1% in the current year. Business is conducted in various countries throughout the world and is subject to tax in numerous jurisdictions. A significant number of tax returns are filed and subject to examination by various federal, state and local tax authorities. Tax examinations are often complex, as tax authorities may disagree with the treatment of items reported requiring several years to resolve. As such, the Company maintains liabilities for possible assessments by tax authorities resulting from known tax exposures for uncertain income tax positions. The Company’s policy is to accrue associated penalties in selling, general and administrative expenses and to accrue interest in net interest expense. Currently, the Company is under examination, or has been contacted for examination on income tax returns, for the years 2009 through 2013. Also, certain state income tax assessments are under protest and the Company believes its financial position is sustainable. The Company estimates the liability for unrecognized tax benefits may decrease by approximately $0.7 million during the next twelve months as a result of possible settlements of income tax authority examinations. Other than the items mentioned above, as of March 31, 2017 , no material adjustments have been proposed to the Company's tax positions and the Company currently does not anticipate any adjustments that would result in a material change to its financial position during the next twelve months. Income taxes paid were $5.4 million and $20.0 million for the three months ended March 31, 2017 and March 31, 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies Disclosure [Text Block] | Commitments and Contingencies Environmental The Company's operations are subject to extensive and changing federal, state, local and international environmental laws, rules and regulations. The Company's manufacturing sites have an extended history of industrial use, and soil and groundwater contamination have or may have occurred in the past and might occur or be discovered in the future. Environmental efforts are difficult to assess for numerous reasons, including the discovery of new remedial sites, discovery of new information and scarcity of reliable information pertaining to certain sites, improvements in technology, changes in environmental laws and regulations, numerous possible remedial techniques and solutions, difficulty in assessing the involvement of and the financial capability of other potentially responsible parties and the extended time periods over which remediation occurs. Other than the items listed below, the Company is not aware of material environmental liabilities which are probable and estimable. As the Company's environmental contingencies are more clearly determined, it is reasonably possible that amounts may need to be accrued. However, management does not believe, based on current information, that environmental remediation requirements will have a material impact on the Company's results of operations, financial position or cash flows. Future environmental spending is probable at our site in Nashville, TN, the eastern portion of which had been used historically as a landfill, and a western parcel therein, previously acquired from a third party, which reportedly had housed, but no longer does, a fertilizer and pesticide manufacturing facility. We have an estimated liability with a range of $0.9 million - $1.3 million . The remedial action plan for that site has yet to be finalized, and as such, the Company has recorded a liability, which represents the Company's best estimate, of $1.1 million as of March 31, 2017 . Litigation 2008 RCRA Civil Enforcement - Geismar, Louisiana plant On January 12, 2017, the Company entered into a settlement with the United States Environmental Protection Agency, or EPA, and the Louisiana Department of Environmental Quality, or LDEQ, with respect to certain manufacturing processes at the Company’s Geismar, Louisiana plant, including the Company’s handling of (i) filter material from an enclosed intermediate filtration step to further process merchant green phosphoric acid, or MGA, that the Company receives as raw material via pipeline from the adjacent site operated by PCS and (ii) the Company’s raffinate co-product that is separated in connection with its PPA production at the plant. The EPA and LDEQ, collectively with the United States Department of Justice, or DOJ, are collectively referred to as the Government Parties. This settlement resulted from years of negotiations between the Company and the Government Parties following several inspections of the plant by the Government Parties in which they raised certain violations of the federal Resource, Conservation and Recovery Act. Prior to this settlement, in the course of discussions with the Government Parties, the EPA and the DOJ required that the Company undertake, as an interim measure, the construction of a new filter unit to replace the enclosed system and allow the removal and separate handling of the filter material. The Company built that unit, which has been operating since 2012. As part of the settlement, Innophos is implementing a deep well injection system, a solution approved by the EPA and LDEQ to handle the raffinate separated at the plant. Such system is expected to be completed by early 2018. The Company previously returned the raffinate to PCS under a long-term contract it has with PCS and can continue to do so until there is a resolution of the deep well system. In connection with this settlement, the Company will pay a $1.4 million civil penalty, which is accrued in other current liabilities. The settlement is currently pending in the United States District Court for the Middle District of Louisiana. Other Legal Matters In July 2013, Innophos, Inc. was assessed approximately $1.2 million of sales/use taxes by the State of Louisiana and Ascension Parish. This tax assessment covers certain raw materials used in the production of Phosphoric Acid. The Company contested both tax assessments. This assessment covers periods 2004 to 2010 for the Parish and 2007 to 2010 for the State. The Company and the respective governmental jurisdictions have reached a settlement in the amount of $0.1 million during the first quarter of 2017. In addition, we are party to legal proceedings and contractual disputes that arise in the ordinary course of our business. Except as to the matters specifically discussed, management believes the likelihood that the ultimate disposition of these matters will have a material adverse effect on our business, results of operations, financial condition and/or cash flows is remote. However, these matters cannot be predicted with certainty and an unfavorable resolution of one or more of them could have a material adverse effect on our business, results of operations, financial condition, and/or cash flows. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension Plans and Postretirement Benefits Net periodic benefit expense for the United States plans: For the three months ended March 31, 2017 For the three months ended March 31, 2016 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ — $ 34 $ 34 $ — $ 46 $ 46 Interest cost 25 31 56 29 44 73 Expected return on assets (35 ) — (35 ) (36 ) — (36 ) Amortization of prior service cost — — — — — — unrecognized (gain) loss — (50 ) (50 ) 2 (13 ) (11 ) net transition obligation — — — — Net periodic cost $ (10 ) $ 15 $ 5 $ (5 ) $ 77 $ 72 Innophos has no minimum contribution requirements and does not plan to make cash contributions for its US defined benefit pension plan in 2017. Innophos made its entire cash contribution of $2.9 million for the US defined contribution plan during the first quarter of 2017 for the plan year 2016. Net periodic benefit expense for the Canadian plans: For the three months ended March 31, 2017 For the three months ended March 31, 2016 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ 94 $ 13 $ 107 $ 87 $ 12 $ 99 Interest cost 127 13 140 118 12 130 Expected return on assets (201 ) — (201 ) (185 ) — (185 ) Amortization of actuarial loss (gain) 43 — 43 50 — 50 prior service cost 27 — 27 25 — 25 net transition obligation — 6 6 — 6 6 Exchange rate changes (48 ) 14 (34 ) (288 ) 78 (210 ) Net periodic cost $ 42 $ 46 $ 88 $ (193 ) $ 108 $ (85 ) Innophos Canada, Inc. plans to make cash contributions to its Canadian defined benefit plan of approximately $0.5 million in 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by Component: For the three months ended March 31, 2017 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2016 $ (1,493 ) $ 9 $ (1,484 ) Other comprehensive (loss) income before reclassifications (5 ) 92 87 Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive (loss) income (5 ) 92 87 Balance at March 31, 2017 $ (1,498 ) $ 101 $ (1,397 ) For the three months ended March 31, 2016 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2015 $ (2,842 ) $ 48 $ (2,794 ) Other comprehensive loss before reclassifications (142 ) (358 ) (500 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive loss (142 ) (358 ) (500 ) Balance at March 31, 2016 $ (2,984 ) $ (310 ) $ (3,294 ) |
Restructuring Costs (Notes)
Restructuring Costs (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Costs During 2015 management evaluated several initiatives to improve the overall operating efficiency of the organization. As a result of this evaluation we launched an initiative to reduce our cost structure by implementing various staff reduction actions during the third quarter of 2015. In addition, during the fourth quarter of 2015, the Company experienced a management transition of certain high-level positions, most notably the Chief Executive Officer and the Chief Financial Officer. The following table summarizes the fiscal year 2017 activities related to these restructuring initiatives for severance and benefits: For the three months ended March 31, 2017 Restructuring Costs Balance at December 31, 2016 $ 6,356 Expense recorded — Payments made (2,417 ) Balance at March 31, 2017 $ 3,939 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting [Text Block] | Segment Reporting The Company discloses certain financial and supplementary information about its reportable segments, revenue by products and revenues by geographic area. Operating segments are defined as components of an enterprise about which separate discrete financial information is evaluated regularly by the chief operating decision maker, in order to decide how to allocate resources and assess performance. The primary performance indicators for the chief operating decision maker are sales and EBITDA (defined as net income (loss) before interest, income taxes, depreciation and amortization). All references to sales in this Quarterly Report on Form 10-Q are recognized when title and risk of loss passes to the customer, which occurs either upon shipment or delivery, depending upon the agreed sales terms with customers. The Company's chief executive officer is the chief operating decision maker and, as of the first quarter of 2017, has determined to assess the Company's performance and allocate the appropriate resources based on the following operating segments: (1) Food, Health and Nutrition, (2) Industrial Specialties and (3) Other. The new reporting segments accurately reflect the underlying business dynamics and align with the strategic direction of the Company. Prior to the first quarter of 2017, the reporting segments were (1) Specialty Phosphates US & Canada, (2) Specialty Phosphates Mexico and (3) GTSP & Other, versus the current market driven view. For the three months ended March 31, 2017 Food, Health & Nutrition Industrial Specialties Other Total Sales $ 91,083 $ 63,672 $ 11,189 $ 165,944 EBITDA $ 15,624 $ 9,521 $ 898 $ 26,043 Depreciation and amortization expense $ 5,722 $ 3,372 $ 487 $ 9,581 For the three months ended March 31, 2016 Food, Health & Nutrition Industrial Specialties Other Total Sales $ 98,412 $ 74,555 $ 16,663 $ 189,630 EBITDA $ 19,933 $ 9,561 $ 1,312 $ 30,806 Depreciation and amortization expense $ 4,791 $ 3,059 $ 1,432 $ 9,282 A reconciliation of net income to EBITDA follows: Three months ended March 31, March 31, Net income $ 10,923 $ 12,842 Provision for income taxes 4,186 6,883 Interest expense, net 1,353 1,799 Depreciation and amortization 9,581 9,282 EBITDA $ 26,043 $ 30,806 |
Basis of Statement Presentati25
Basis of Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards Adopted In July 2015, the FASB issued guidance which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”),” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. Under the new guidance, inventory is “measured at the lower of cost and net realizable value,” which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The adoption of this standard did not have a material impact on our financial position, results of operations and related disclosures. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends Accounting Standards Codification ("ASC") Topic 718, Compensation - Stock Compensation. ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. The adoption of this standard did not have a material impact on our financial position, results of operations and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. We have elected to early adopt for testing dates after January 1, 2017 and the adoption of this standard did not have a material impact on our financial position, results of operations and related disclosures. Issued but not yet adopted In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In July 2015, the FASB approved the deferral of the effective date of this guidance by one year (with an option to early adopt at the original effective date), making it effective for the interim and annual periods beginning on or after December 15, 2017. As a result, this guidance will be effective for the Company beginning in fiscal year 2018, with an option to early adopt in fiscal year 2017. The guidance permits the use of either a retrospective or modified retrospective transition method. We will adopt the standard using the modified retrospective transition method on January 1, 2018 and are currently evaluating the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. Our ongoing evaluation of the impact of the guidance includes the revenue recognition of certain free on board destination point sales across all of our businesses. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. We are currently in the process of evaluating the impact of adoption of the ASU on our financial position, results of operations and related disclosures. In March 2016, the FASB issued ASU 2016-15, Clarification on Classification of Certain Cash Receipts and Cash Payments on the Statement of Cash Flows. ASU 2016-15 clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which reduces the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. This amendment should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. There are no new disclosure requirements. This ASU is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted in the first interim period of 2017. The adoption of this guidance is not expected to have a significant effect on our financial position, results of operations and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash, which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Under the ASU, changes in restricted cash and restricted cash equivalents would be included along with those of cash and cash equivalents in the statement of cash flows. As a result, entities would no longer present transfers between cash/equivalents and restricted cash/equivalents in the statement of cash flows. In addition, a reconciliation between the balance sheet and the statement of cash flows would be disclosed when the balance sheet includes more than one line item for cash/equivalents and restricted cash/equivalents. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We do not anticipate the adoption of the new accounting rules will have a material impact on our financial position, results of operations and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We would apply this guidance to applicable transactions after the adoption date. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that only the service cost component of net periodic benefit costs be recorded as compensation cost in the operating expense section of the income statement. All other components of net periodic benefit cost (interest cost, expected return on plan assets and amortization of net loss) will be presented in other income - net. This standard update is effective beginning with the first quarter 2018 and must be applied retrospectively. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. |
Description of Business and Principles of Consolidation [Policy Text Block] | 1. Basis of Statement Presentation Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Innophos have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP) for interim financial reporting and do not include all disclosures required by US GAAP for annual financial reporting, and should be read in conjunction with the audited consolidated and combined financial statements of the Company at December 31, 2016 and for the three years then ended. The accompanying unaudited condensed consolidated financial statements of the Company reflect all adjustments which management considers necessary for a fair statement of the results of operations for the interim periods and is subject to year-end adjustments. The results of operations for the interim periods are not necessarily indicative of the results for the full year. The December 31, 2016 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by US GAAP. |
Earnings Per Share (EPS) Earnin
Earnings Per Share (EPS) Earnings Per Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the weighted average basic number of common shares outstanding to the diluted number of common and common stock equivalent shares outstanding and the calculation of earnings per share using the two-class method: Three Months Ended March 31, 2017 March 31, 2016 Net income $ 10,923 $ 12,842 Less: earnings attributable to unvested shares (50 ) (49 ) Net income available to participating common shareholders $ 10,873 $ 12,793 Weighted average number of participating common and potential common shares outstanding: Basic number of participating common shares outstanding 19,376,258 19,229,501 Dilutive effect of stock equivalents 318,493 200,528 Diluted number of weighted average participating common shares outstanding 19,694,751 19,430,029 Earnings per participating common share: Earnings per participating common share—Basic $ 0.56 $ 0.67 Earnings per participating common share—Diluted $ 0.55 $ 0.66 Total outstanding options, performance share awards and unvested restricted stock not included in the calculation of diluted earnings per share as the effect would be anti-dilutive 347,354 437,241 |
Dividends (Tables)
Dividends (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Dividends [Abstract] | |
Schedule of Dividends Payable [Table Text Block] | The following is the dividend activity for the three months ended March 31, 2017 and March 31, 2016 : Three Months Ended March 31 2017 2016 Dividends declared – per share $ 0.48 $ 0.48 Dividends declared – aggregate 9,349 9,256 Dividends paid – per share 0.48 0.48 Dividends paid – aggregate 9,349 9,256 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table summarizes the components of stock-based compensation expense, all of which has been classified as selling, general and administrative expense: Three Months Ended March 31, March 31, Stock options $ 305 $ (226 ) Restricted stock 440 (170 ) Performance shares (28 ) 405 Total share-based compensation expense (a) $ 717 $ 9 (a) The three months ended March 31, 2016 includes a benefit of $524 for a change in estimate due to restructuring activities. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: March 31, December 31, Raw materials $ 35,225 $ 33,185 Finished products 88,178 81,369 Spare parts 13,969 13,741 $ 137,372 $ 128,295 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Current Assets: [Abstract] | |
Schedule of Other Assets [Table Text Block] | Other current assets consist of the following: March 31, December 31, Creditable taxes (value added taxes) $ 8,809 $ 9,722 Vendor inventory deposits (prepaid) 10,000 3,750 Prepaid income taxes 4,867 4,659 Prepaid insurance 1,480 2,248 Other 3,120 3,515 $ 28,276 $ 23,894 |
Intangibles and Other Assets,31
Intangibles and Other Assets, net Intangibles and Other Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Intangibles and Other Assets, net: [Abstract] | |
Intangibles and Other Assets [Table Text Block] | Intangibles and other assets consist of the following: Useful life (years) March 31, December 31, Developed technology and application patents, net of accumulated amortization of $28,513 for 2017 and $27,778 for 2016 7-20 $ 17,762 $ 18,497 Customer relationships, net of accumulated amortization of $19,259 for 2017 and $18,569 for 2016 5-15 19,553 20,243 Trade names and license agreements, net of accumulated amortization of $10,657 for 2017 and $10,315 for 2016 5-20 7,004 7,346 Non-compete agreements, net of accumulated amortization of $1,274 for 2017 and $1,268 for 2016 3-10 59 65 Total intangibles $ 44,378 $ 46,151 Deferred income taxes $ 18,432 $ 18,432 Deferred financing costs, net of accumulated amortization of $3,580 for 2017 and $3,473 for 2016 (see note 9) 2,043 2,150 Other tax assets — 997 Other assets 2,137 2,081 Total other assets $ 22,612 $ 23,660 $ 66,990 $ 69,811 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities [Table Text Block] | Other current liabilities consist of the following: March 31, December 31, Payroll related $ 8,941 $ 11,852 Taxes other than income taxes 2,408 2,624 Benefits and pensions 3,262 5,419 Freight and rebates 4,077 3,579 Income taxes 8,677 9,278 Restructuring and management transition reserve 3,729 4,737 Other 8,813 6,116 $ 39,907 $ 43,605 |
Debt and Interest (Tables)
Debt and Interest (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Short-term Borrowings, Long-Term Debt, and Interest Expense: [Abstract] | |
Short-Term Borrowings and Long-Term Debt [Table Text Block] | Short-term borrowings and long-term debt consist of the following: March 31, December 31, Revolver borrowings under the credit facility due 2022 $ 189,000 $ 185,000 Total borrowings $ 189,000 $ 185,000 Less current portion — — Long-term debt $ 189,000 $ 185,000 |
Components of Interest Expense, Net [Table Text Block] | Interest expense, net consists of the following: Three months ended March 31, March 31, Interest expense $ 1,315 $ 1,711 Deferred financing cost 107 168 Interest income (9 ) (14 ) Less: amount capitalized for capital projects (60 ) (66 ) Total interest expense, net $ 1,353 $ 1,799 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consist of the following: March 31, December 31, Deferred income taxes $ 1,420 $ 1,282 Pension and post retirement liabilities 8,150 7,689 Restructuring and management transition reserve 210 1,618 Uncertain tax positions 1,974 1,974 Environmental liabilities 1,100 1,100 Other liabilities 1,805 1,906 $ 14,659 $ 15,569 |
Pension Plans and Postretirem35
Pension Plans and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
UNITED STATES | |
Pension Plans and Postretirement Benefits [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit expense for the United States plans: For the three months ended March 31, 2017 For the three months ended March 31, 2016 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ — $ 34 $ 34 $ — $ 46 $ 46 Interest cost 25 31 56 29 44 73 Expected return on assets (35 ) — (35 ) (36 ) — (36 ) Amortization of prior service cost — — — — — — unrecognized (gain) loss — (50 ) (50 ) 2 (13 ) (11 ) net transition obligation — — — — Net periodic cost $ (10 ) $ 15 $ 5 $ (5 ) $ 77 $ 72 |
CANADA | |
Pension Plans and Postretirement Benefits [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit expense for the Canadian plans: For the three months ended March 31, 2017 For the three months ended March 31, 2016 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ 94 $ 13 $ 107 $ 87 $ 12 $ 99 Interest cost 127 13 140 118 12 130 Expected return on assets (201 ) — (201 ) (185 ) — (185 ) Amortization of actuarial loss (gain) 43 — 43 50 — 50 prior service cost 27 — 27 25 — 25 net transition obligation — 6 6 — 6 6 Exchange rate changes (48 ) 14 (34 ) (288 ) 78 (210 ) Net periodic cost $ 42 $ 46 $ 88 $ (193 ) $ 108 $ (85 ) |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Changes in accumulated other comprehensive income (loss) by Component: For the three months ended March 31, 2017 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2016 $ (1,493 ) $ 9 $ (1,484 ) Other comprehensive (loss) income before reclassifications (5 ) 92 87 Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive (loss) income (5 ) 92 87 Balance at March 31, 2017 $ (1,498 ) $ 101 $ (1,397 ) For the three months ended March 31, 2016 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2015 $ (2,842 ) $ 48 $ (2,794 ) Other comprehensive loss before reclassifications (142 ) (358 ) (500 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive loss (142 ) (358 ) (500 ) Balance at March 31, 2016 $ (2,984 ) $ (310 ) $ (3,294 ) |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the fiscal year 2017 activities related to these restructuring initiatives for severance and benefits: For the three months ended March 31, 2017 Restructuring Costs Balance at December 31, 2016 $ 6,356 Expense recorded — Payments made (2,417 ) Balance at March 31, 2017 $ 3,939 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | A reconciliation of net income to EBITDA follows: Three months ended March 31, March 31, Net income $ 10,923 $ 12,842 Provision for income taxes 4,186 6,883 Interest expense, net 1,353 1,799 Depreciation and amortization 9,581 9,282 EBITDA $ 26,043 $ 30,806 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the three months ended March 31, 2017 Food, Health & Nutrition Industrial Specialties Other Total Sales $ 91,083 $ 63,672 $ 11,189 $ 165,944 EBITDA $ 15,624 $ 9,521 $ 898 $ 26,043 Depreciation and amortization expense $ 5,722 $ 3,372 $ 487 $ 9,581 For the three months ended March 31, 2016 Food, Health & Nutrition Industrial Specialties Other Total Sales $ 98,412 $ 74,555 $ 16,663 $ 189,630 EBITDA $ 19,933 $ 9,561 $ 1,312 $ 30,806 Depreciation and amortization expense $ 4,791 $ 3,059 $ 1,432 $ 9,282 |
Earnings Per Share (EPS) (Detai
Earnings Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 10,923 | $ 12,842 | $ 47,971 |
Less: earnings attributable to unvested shares | (50) | (49) | |
Net income available to participating common shareholders | $ 10,873 | $ 12,793 | |
Basic number of common shares, outstanding | 19,376,258 | 19,229,501 | |
Dilutive effect of stock equivalents | 318,493 | 200,528 | |
Dilutived number of weighted average common shares outstanding | 19,694,751 | 19,430,029 | |
Earnings per common share - Basic | $ 0.56 | $ 0.67 | |
Earnings per common share - Diluted | $ 0.55 | $ 0.66 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 347,354 | 437,241 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Dividends Payable [Line Items] | ||
Dividends declared - per share | $ 0.48 | $ 0.48 |
Dividends declared - aggregate | $ 9,349 | $ 9,256 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.48 | $ 0.48 |
Dividends paid - aggregate | $ 9,349 | $ 9,256 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options | $ 305 | $ (226) |
Restricted stock | 440 | (170) |
Performance Shares Expense | (28) | 405 |
Total stock-based compensation expense | 717 | $ 9 |
Management [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Shares Expense | $ 524 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 35,225 | $ 33,185 |
Finished goods | 88,178 | 81,369 |
Spare parts | 13,969 | 13,741 |
Inventory, Net | 137,372 | 128,295 |
Inventory Valuation Reserves | $ 12,574 | $ 13,422 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Current Assets: [Abstract] | ||
Creditable taxes (value added taxes) | $ 8,809 | $ 9,722 |
Vendor inventory deposits (prepaid) | 10,000 | 3,750 |
Prepaid income taxes | 4,867 | 4,659 |
Prepaid Insurance | 1,480 | 2,248 |
Other | 3,120 | 3,515 |
Other Assets, Current | $ 28,276 | $ 23,894 |
Intangibles and Other Assets,44
Intangibles and Other Assets, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization, Debt Issuance Costs | $ 3,580 | $ 3,473 |
Intangible Assets, Net (Excluding Goodwill) | 44,378 | 46,151 |
Deferred Tax Assets, Net, Noncurrent | 18,432 | 18,432 |
Debt Issuance Costs, Net | 2,043 | 2,150 |
Long-term Investments and Receivables, Net | 0 | 997 |
Other Assets, Miscellaneous | 2,137 | 2,081 |
Other Assets | 22,612 | 23,660 |
Other Assets, Noncurrent | 66,990 | 69,811 |
Developed Technology and Application Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 28,513 | 27,778 |
Intangible Assets, Net (Excluding Goodwill) | 17,762 | 18,497 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 19,259 | 18,569 |
Intangible Assets, Net (Excluding Goodwill) | $ 19,553 | 20,243 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 7 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 20 years | |
Trade Names and License Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 10,657 | 10,315 |
Intangible Assets, Net (Excluding Goodwill) | 7,004 | 7,346 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 1,274 | 1,268 |
Intangible Assets, Net (Excluding Goodwill) | $ 59 | $ 65 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 3 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 10 years | |
Developed Technology Rights [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 5 years | |
Developed Technology Rights [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 15 years | |
Trade Names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Useful Life | 20 years |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Current [Abstract] | ||
Payroll related | $ 8,941 | $ 11,852 |
Freight and rebates | 2,408 | 2,624 |
Benefits and pensions | 3,262 | 5,419 |
Accrual for Taxes Other than Income Taxes, Current | 4,077 | 3,579 |
Accrued Income Taxes | 8,677 | 9,278 |
Equity repurchases | 3,729 | 4,737 |
Other | 8,813 | 6,116 |
Other Liabilities, Current | $ 39,907 | $ 43,605 |
Debt and Interest (Details)
Debt and Interest (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017USD ($)Rate | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 22, 2016USD ($) | Dec. 31, 2013USD ($) | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 1,315 | $ 1,711 | |||
Revolver borrowings under the credit facility | 189,000 | $ 185,000 | |||
Debt and Capital Lease Obligations | 189,000 | 185,000 | |||
Long-term Debt and Capital Lease Obligations, Current | 0 | 0 | |||
Long-term Debt and Capital Lease Obligations | $ 189,000 | $ 185,000 | |||
Line of Credit Facility, Current Borrowing Capacity | $ 450,000 | ||||
Document Period End Date | Mar. 31, 2017 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 260,000 | ||||
Debt, Weighted Average Interest Rate | Rate | 2.30% | ||||
Amortization of Debt Issuance Costs | $ 107 | 168 | |||
Notional Amount of Interest Rate Derivatives | $ 100,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 0.9475% | ||||
Interest Rate Derivative Assets, at Fair Value | $ 200 | ||||
Long-term Debt, Percentage Bearing Variable Interest, Amount | 89,000 | ||||
Interest Paid | 1,305 | 1,710 | |||
Interest Expense [Abstract] | |||||
Deferred financing cost | 107 | 168 | |||
Interest income | (9) | (14) | |||
Less: amount capitalized for capital projects | (60) | (66) | |||
Total interest expense, net | 1,353 | $ 1,799 | |||
Letter of Credit, Sub-Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolver borrowings under the credit facility | 1,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | 20,000 | ||||
Swingline, Sub-Facility [Domain] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | 20,000 | ||||
Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 600,000 | ||||
Line of Credit Facility, Additional Borrowing Capacity | $ 150,000 | ||||
Variable Rate [Domain] | |||||
Debt Instrument [Line Items] | |||||
Effect on Future Earnings, Amount | $ 900 | ||||
High Range Ratio [Member] | |||||
Interest Expense [Abstract] | |||||
Debt Instrument, Covenant, Total Leverage Ratio | 3.50 | ||||
Debt Instrument Covenant, Interest coverage Ratio | 3 | ||||
Low Range Ratio [Member] | |||||
Interest Expense [Abstract] | |||||
Debt Instrument, Covenant, Total Leverage Ratio | 1 | ||||
Debt Instrument Covenant, Interest coverage Ratio | 1 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Deferred income taxes | $ 1,420 | $ 1,282 |
Pension and post retirement liabilities | 8,150 | 7,689 |
Restructuring Reserve, Noncurrent | 210 | 1,618 |
Liability for Uncertain Tax Positions, Noncurrent | 1,974 | 1,974 |
Environmental liabilities | 1,100 | 1,100 |
Other liabilities | 1,805 | 1,906 |
Other Liabilities, Noncurrent | $ 14,659 | $ 15,569 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Examination [Line Items] | ||
Effective Income Tax Rate, Continuing Operations | 28.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 5.00% | |
Effective Income Tax Rate Reconciliation, Tax Contingencies | 1.00% | |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 1.00% | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 0.7 | |
Income Tax Examination, Likelihood of Unfavorable Settlement | twelve | |
Income Taxes Paid, Net | $ 5.4 | $ 20 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2014 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 1,100 | $ 1,100 | |
Document Period End Date | Mar. 31, 2017 | ||
Environmental [Member] | |||
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies | $ 1,100 | ||
Civil Penalty [Domain] | |||
Loss Contingencies [Line Items] | |||
Estimated Litigation Liability | 1,400 | ||
Louisiana sales and use tax [Member] | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 1,200 | ||
Litigation Settlement, Expense | 100 | ||
Minimum [Member] | Environmental [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental Exit Costs, Anticipated Cost | 900 | ||
Maximum [Member] | Environmental [Member] | |||
Loss Contingencies [Line Items] | |||
Environmental Exit Costs, Anticipated Cost | $ 1,300 |
Pension Plans and Postretirem50
Pension Plans and Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Contributions by Employer | $ 500 | |
CANADA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | 107 | $ 99 |
Defined Benefit Plan, Interest Cost | 140 | 130 |
Defined Benefit Plan, Expected Return on Plan Assets | (201) | (185) |
Defined Benefit Plan, Amortization of Gains (Losses) | 43 | 50 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 27 | 25 |
Defined Benefit Plan, Other Costs | 6 | 6 |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (34) | (210) |
Defined Benefit Plan, Net Periodic Benefit Cost | 88 | (85) |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | 34 | 46 |
Defined Benefit Plan, Interest Cost | 56 | 73 |
Defined Benefit Plan, Expected Return on Plan Assets | (35) | (36) |
Defined Benefit Plan, Amortization of Gains (Losses) | (50) | (11) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 5 | 72 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | 2,900 | |
Pension Benefits [Member] | CANADA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | 94 | 87 |
Defined Benefit Plan, Interest Cost | 127 | 118 |
Defined Benefit Plan, Expected Return on Plan Assets | (201) | (185) |
Defined Benefit Plan, Amortization of Gains (Losses) | 43 | 50 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 27 | 25 |
Defined Benefit Plan, Other Costs | 0 | 0 |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (48) | (288) |
Defined Benefit Plan, Net Periodic Benefit Cost | 42 | (193) |
Pension Benefits [Member] | UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | 0 | 0 |
Defined Benefit Plan, Interest Cost | 25 | 29 |
Defined Benefit Plan, Expected Return on Plan Assets | (35) | (36) |
Defined Benefit Plan, Amortization of Gains (Losses) | 0 | 2 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | (10) | (5) |
Other Benefits [Member] | CANADA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | 13 | 12 |
Defined Benefit Plan, Interest Cost | 13 | 12 |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 |
Defined Benefit Plan, Amortization of Gains (Losses) | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 |
Defined Benefit Plan, Other Costs | 6 | 6 |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | 14 | 78 |
Defined Benefit Plan, Net Periodic Benefit Cost | 46 | 108 |
Other Benefits [Member] | UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Service Cost | 34 | 46 |
Defined Benefit Plan, Interest Cost | 31 | 44 |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 |
Defined Benefit Plan, Amortization of Gains (Losses) | (50) | (13) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 15 | $ 77 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,397) | $ (3,294) | $ (1,484) | $ (2,794) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 87 | (500) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other comprehensive income (loss), net of Tax | 87 | (500) | 1,310 | |
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), net of Tax | 87 | 1,310 | ||
Pension and Other Postretirement Plans Costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,498) | (2,984) | (1,493) | (2,842) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (5) | (142) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other comprehensive income (loss), net of Tax | (5) | (142) | ||
Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 101 | (310) | $ 9 | $ 48 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 92 | (358) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||
Other comprehensive income (loss), net of Tax | $ 92 | $ (358) |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Payments for Restructuring | $ (2,417) | |
Restructuring Reserve | 3,939 | $ 6,356 |
Increase (Decrease) in Restructuring Reserve | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net income | $ 10,923 | $ 12,842 | $ 47,971 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the three months ended March 31, 2017 Food, Health & Nutrition Industrial Specialties Other Total Sales $ 91,083 $ 63,672 $ 11,189 $ 165,944 EBITDA $ 15,624 $ 9,521 $ 898 $ 26,043 Depreciation and amortization expense $ 5,722 $ 3,372 $ 487 $ 9,581 For the three months ended March 31, 2016 Food, Health & Nutrition Industrial Specialties Other Total Sales $ 98,412 $ 74,555 $ 16,663 $ 189,630 EBITDA $ 19,933 $ 9,561 $ 1,312 $ 30,806 Depreciation and amortization expense $ 4,791 $ 3,059 $ 1,432 $ 9,282 | ||
Sales | $ 165,944 | 189,630 | |
Earnings before interest, taxes, depreciation and amortization | 26,043 | 30,806 | |
Depreciation and amortization expense | 9,581 | 9,282 | |
Provision for income taxes | 4,186 | 6,883 | |
Interest expense, net | 1,353 | 1,799 | |
Food, Health and Nutrition [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 91,083 | 98,412 | |
Earnings before interest, taxes, depreciation and amortization | 15,624 | 19,933 | |
Depreciation and amortization expense | 5,722 | 4,791 | |
Industrial Specialties [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 63,672 | 74,555 | |
Earnings before interest, taxes, depreciation and amortization | 9,521 | 9,561 | |
Depreciation and amortization expense | 3,372 | 3,059 | |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 11,189 | 16,663 | |
Earnings before interest, taxes, depreciation and amortization | 898 | 1,312 | |
Depreciation and amortization expense | $ 487 | $ 1,432 |