Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 24, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Innophos Holdings, Inc. | |
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 | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 19,616,444 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 23,079 | $ 28,782 |
Accounts receivable, net of allowance for doubtful accounts ($592 and $445) | 103,092 | 100,820 |
Inventories | 168,746 | 145,685 |
Other current assets | 34,282 | 24,969 |
Total current assets | 329,199 | 300,256 |
Property, plant and equipment, net | 232,408 | 219,297 |
Assets held for sale | 6,975 | 0 |
Goodwill | 152,767 | 152,700 |
Intangibles and other assets, net | 98,891 | 112,916 |
Total assets | 820,240 | 785,169 |
Current liabilities: | ||
Current portion of capital leases | 4 | 4 |
Accounts payable, trade and other | 64,784 | 70,445 |
Other current liabilities | 53,393 | 43,084 |
Total current liabilities | 118,181 | 113,533 |
Long-term debt and capital leases | 345,003 | 310,005 |
Other long-term liabilities | 16,387 | 28,072 |
Total liabilities | 479,571 | 451,610 |
Commitments and contingencies (note 15) | ||
Common stock, par value $.001 per share; authorized 100,000,000; issued 22,966,747 and 22,884,588; outstanding 19,613,184 and 19,537,872 shares | 20 | 20 |
Paid-in capital | 141,517 | 137,617 |
Common stock held in treasury, at cost (3,353,563 and 3,346,716 shares) | (176,497) | (176,246) |
Retained earnings | 377,391 | 374,366 |
Accumulated other comprehensive loss | (1,762) | (2,198) |
Total stockholders' equity | 340,669 | 333,559 |
Total liabilities and stockholders' equity | $ 820,240 | $ 785,169 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 592 | $ 445 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 22,966,747 | 22,884,588 |
Common stock, shares outstanding | 19,613,184 | 19,537,872 |
Treasury stock, shares held | 3,353,563 | 3,346,716 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 196,934 | $ 183,839 | $ 609,099 | $ 528,923 |
Cost of goods sold | 161,706 | 142,870 | 495,259 | 412,335 |
Gross profit | 35,228 | 40,969 | 113,840 | 116,588 |
Operating expenses: | ||||
Selling, general and administrative | 19,525 | 20,908 | 64,548 | 60,111 |
Research & development expenses | 1,240 | 1,065 | 3,989 | 2,713 |
Total operating expenses | 20,765 | 21,973 | 68,537 | 62,824 |
Operating income | 14,463 | 18,996 | 45,303 | 53,764 |
Interest expense, net | 3,428 | 1,630 | 9,530 | 4,435 |
Foreign exchange (gain) loss | (531) | 100 | 409 | (35) |
Other Income | (14) | (14) | (42) | (42) |
Income before income taxes | 11,580 | 17,280 | 35,406 | 49,406 |
(Benefit) provision for income taxes | (2,510) | 5,698 | 4,155 | 15,678 |
Net income | 14,090 | 11,582 | 31,251 | 33,728 |
Net income attributable to participating common shareholders | $ 14,033 | $ 11,513 | $ 31,139 | $ 33,540 |
Income per participating share: | ||||
Basic (in dollars per share) | $ 0.72 | $ 0.59 | $ 1.60 | $ 1.73 |
Diluted (in dollars per share) | $ 0.71 | $ 0.58 | $ 1.57 | $ 1.70 |
Weighted average participating shares outstanding: | ||||
Basic (in shares) | 19,525,284 | 19,412,474 | 19,511,097 | 19,395,317 |
Diluted (in shares) | 19,838,962 | 19,699,052 | 19,790,570 | 19,695,530 |
Other comprehensive income (loss), net of tax: | ||||
Change in interest rate swaps, (net of tax of $0, $31, $0, and ($22)) | $ 0 | $ (52) | $ 0 | $ 35 |
Change in pension and post-retirement plans, (net of tax of $16, $43, $228, and $111) | (47) | (103) | 436 | (255) |
Other comprehensive income (loss), net of tax | (47) | (155) | 436 | (220) |
Comprehensive income | $ 14,043 | $ 11,427 | $ 31,687 | $ 33,508 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax amounts related to changes in interest rate swaps | $ 0 | $ 31 | $ 0 | $ (22) |
Tax amounts related to changes in pension and post-retirement plans | $ 16 | $ 43 | $ 228 | $ 111 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows provided by operating activities | ||
Net income | $ 31,251 | $ 33,728 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33,317 | 29,009 |
Amortization of deferred financing charges | 322 | 322 |
Deferred Income Tax Expense (Benefit) | 7,006 | (14) |
Gain on sale of building | 0 | (153) |
Share-based compensation | 4,143 | 2,996 |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (2,272) | (13,024) |
(Increase) decrease in inventories | (23,094) | 2,873 |
(Increase) decrease in other current assets | (9,362) | 151 |
Decrease in accounts payable | (5,664) | (7,566) |
Increase in other current liabilities | 10,291 | 1,666 |
Changes in other long-term assets and liabilities | (15,071) | (3,331) |
Net cash provided by operating activities | 30,867 | 46,657 |
Cash flows used for investing activities: | ||
Capital expenditures | (43,303) | (24,650) |
Proceeds from sale of building | 0 | 1,028 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (124,984) |
Net cash used for investing activities | (43,303) | (148,606) |
Cash flows provided by financing activities: | ||
Long-term debt borrowings | 86,000 | 146,000 |
Long-term debt repayments | (51,000) | (36,000) |
Restricted stock forfeitures | (251) | (738) |
Dividends paid | (28,197) | (28,095) |
Net cash provided by financing activities | 6,552 | 81,167 |
Effect of foreign exchange rate changes on cash and cash equivalents | 181 | 27 |
Net change in cash | (5,703) | (20,755) |
Cash and cash equivalents at beginning of period | 28,782 | 53,487 |
Cash and cash equivalents at end of period | $ 23,079 | $ 32,732 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings (Deficit) | Paid-in Capital / Treasury Stock | Accumulated Other Comprehensive Income/(Loss) |
Beginning balance (in shares) at Dec. 31, 2016 | 19,455 | ||||
Beginning balance at Dec. 31, 2016 | $ 347,226 | $ 19 | $ 389,048 | $ (40,357) | $ (1,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 33,728 | ||||
Other comprehensive income, (net of tax $243 for 2018 and $241 for 2017) (a) | (220) | ||||
Ending balance at Sep. 30, 2017 | (1,704) | ||||
Beginning balance (in shares) at Dec. 31, 2016 | 19,455 | ||||
Beginning balance at Dec. 31, 2016 | 347,226 | $ 19 | 389,048 | (40,357) | (1,484) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 22,445 | 22,445 | |||
Other comprehensive income, (net of tax $243 for 2018 and $241 for 2017) (a) | (714) | (714) | |||
Effects of U.S. enacted Tax Cuts and Jobs Act (a) | 293 | 293 | |||
Proceeds from stock award exercises and issuances (in shares) | 108 | ||||
Proceeds from stock award exercises and issuances | (899) | $ 1 | (900) | ||
Share-based compensation | 3,823 | 3,823 | |||
Excess tax deficiency from exercise of stock options | 0 | ||||
Restricted stock forfeitures (in shares) | (25) | ||||
Restricted stock forfeitures | (1,195) | (1,195) | |||
Dividends declared | (37,420) | (37,420) | |||
Ending balance (in shares) at Dec. 31, 2017 | 19,538 | ||||
Ending balance at Dec. 31, 2017 | 333,559 | $ 20 | 374,366 | (38,629) | (2,198) |
Beginning balance at Jun. 30, 2017 | (1,549) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 11,582 | ||||
Other comprehensive income, (net of tax $243 for 2018 and $241 for 2017) (a) | (155) | ||||
Ending balance at Sep. 30, 2017 | (1,704) | ||||
Beginning balance at Dec. 31, 2017 | 333,559 | $ 20 | 374,366 | (38,629) | (2,198) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 31,251 | 31,251 | |||
Other comprehensive income, (net of tax $243 for 2018 and $241 for 2017) (a) | 436 | 436 | |||
Effects of U.S. enacted Tax Cuts and Jobs Act (a) | (293) | (293) | |||
Proceeds from stock award exercises and issuances (in shares) | 82 | ||||
Proceeds from stock award exercises and issuances | (243) | (243) | |||
Share-based compensation | 4,143 | 4,143 | |||
Restricted stock forfeitures (in shares) | (7) | ||||
Restricted stock forfeitures | (251) | (251) | |||
Dividends declared | (28,293) | (28,293) | |||
Ending balance (in shares) at Sep. 30, 2018 | 19,613 | ||||
Ending balance at Sep. 30, 2018 | 340,669 | $ 20 | 377,391 | (34,980) | (1,762) |
Beginning balance at Jun. 30, 2018 | (1,715) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 14,090 | ||||
Other comprehensive income, (net of tax $243 for 2018 and $241 for 2017) (a) | (47) | ||||
Ending balance (in shares) at Sep. 30, 2018 | 19,613 | ||||
Ending balance at Sep. 30, 2018 | 340,669 | $ 20 | 377,391 | $ (34,980) | $ (1,762) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Effects of adoption of ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory | $ 360 | $ 360 |
Statement of Stockholders' Eq_2
Statement of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Document Period End Date | Sep. 30, 2018 | |
Other comprehensive income (loss), tax | $ 228 | $ 241 |
Basis of Statement Presentation
Basis of Statement Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Statement Presentation | 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, or U.S. GAAP, for interim financial reporting and do not include all disclosures required by U.S. 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, 2017 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, 2017 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Recently Issued Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board, or 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. The guidance permits the use of either a retrospective or modified retrospective transition method. The Company adopted the standard using the modified retrospective transition method on January 1, 2018. The Company concluded that revenues remain materially unchanged from the prior revenue recognition model and therefore, the adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. Please see Note 3, "Revenue Recognition", for further 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. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. 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 Company adopted this standard as of January 1, 2018 on a modified retrospective basis in this interim period and recorded an immaterial cumulative adjustment to retained earnings. 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. The Company's adoption of this standard did not have a material impact on its 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. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement 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 (loss), net. This standard update is effective beginning with the first quarter 2018 and must be applied retrospectively. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, Stock Compensation - Scope of Modification Accounting, which requires all modifications to be accounted for as a modification unless the fair value, vesting conditions and classification of the award as equity or liability are the same as the classification of the original award immediately before the original award is modified. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017 and for interim periods therein. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. In March 2018, the FASB issued ASU 2018-05 associated with the accounting and disclosures around the enactment of the Act and the Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which the Company has adopted. See Note 14 for the disclosures related to this amended guidance. Issued but not yet adopted 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. In July 2018, the FASB issued updated guidance which allows an additional transition method to adopt the new leases standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. The Company expects to elect this transition method at the adoption date of January 1, 2019. We are currently finalizing our lease portfolio analysis to determine the impact to the Consolidated Financial Statements. We are implementing processes to assist in our ongoing lease data collection and analysis, and updating our accounting policies and internal controls that would be impacted by the new guidance, to ensure readiness for adoption in the first quarter of 2019. While the Company is continuing to assess the effect of adoption, it currently believes the most significant changes relate to the recognition of new right-of-use assets and lease liabilities on its balance sheet for railcars, tank operating leases and buildings. The Company will continue to evaluate the impact of adoption of the ASU on its financial position, results of operations and related disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and hedging (Topic 815): Targeted improvements to accounting for hedging activities. This standard more closely aligns the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. This standard also addresses specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. Additionally, by aligning the timing of recognition of hedge results with the earnings effect of the hedged item for cash flow and net investment hedges, and by including the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is presented, the results of an entity’s hedging program and the cost of executing that program will be more visible to users of financial statements. The new standard is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company does not anticipate the adoption of this standard will have a material impact on its financial position, results of operations and related disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On August 25, 2017, the Company acquired 100% of the outstanding shares of GenNx Novel Holding, Inc. (together with its direct and indirect wholly-owned subsidiaries, "Novel Ingredients"). Novel Ingredients was a privately-held specialty ingredients supplier of botanicals, proteins, amino acids and other healthy ingredients, as well as branded ingredient and custom formulated solutions, headquartered in East Hanover, NJ. The Company made an initial $125 million cash payment, subsequently adjusted lower by $1.3 million for post-closing working capital adjustments, for total consideration of $123.7 million . The acquisition was funded by borrowings under its existing credit facility. The addition of Novel Ingredients grows Innophos' Food, Health, and Nutrition, or FHN, portfolio, expanding its presence in high-growth nutrition end-markets and positioning the Company to more effectively develop innovative ingredient solutions that better serve its customers. Novel Ingredients serves attractive end-markets driven by health and wellness consumer trends such as immune health, sports nutrition, and cognitive health. On November 3, 2017, the Company acquired 100% of the outstanding equity interests of NutraGenesis LLC, Icon Group LLC, and Tradeworks Group, Inc. (collectively referred to as "NutraGenesis"). NutraGenesis was a privately-held Vermont-based marketer of proprietary, branded and science-backed nutraceutical ingredients. The Company made a $27.4 million cash payment, subsequently adjusted lower by $0.1 million for post-closing working capital adjustments, for total consideration of $27.3 million . The acquisition was funded by borrowings under its existing credit facility. NutraGenesis is highly complementary to the Novel Ingredients acquisition and the Company's branded ingredients portfolio. NutraGenesis serves attractive high-growth end-markets, including stress reduction, weight management, joint health, brain health and metabolic wellness, that are driven by health and wellness consumer trends. During the three months ended September 30, 2017, the Company's results of operations included revenues of $10.2 million and a $0.6 million net loss attributable to Novel Ingredients. Acquisition related costs of $2.4 million (excluding integration costs of $0.6 million ) were expensed as incurred and were included in selling, general and administrative expenses. The excess of purchase price over the fair value amounts assigned to the assets acquired and liabilities assumed represents the goodwill amount resulting from the acquisition and will be included in the Food, Health and Nutrition operating segment. The goodwill of $68.4 million arising from the acquisitions consists of expected revenue and cost synergies, operational know-how, and acquired workforce. Approximately $24.0 million of the goodwill is deductible for U.S. income tax purposes. The following table summarizes the fair value of the assets acquired and liabilities assumed (in thousands): Novel Ingredients NutraGenesis Cash $ 105 $ 82 Accounts receivable, net of allowances of $511 and $0 for Novel Ingredients and NutraGenesis, respectively 11,255 850 Inventory, including fair value adjustment of $4,300 for Novel Ingredients 23,121 — Other current assets 1,655 638 Property, plant and equipment 4,261 — Other non-current assets 187 — Goodwill 54,008 14,387 Intangible assets 52,900 13,699 Accounts payable (14,726 ) (793 ) Accrued expenses (3,910 ) (524 ) Deferred income taxes (5,067 ) (151 ) Customer Deposits — (875 ) Total $ 123,789 $ 27,313 Novel Ingredients has Net Operating Loss, or NOL, carryforwards of $16.4 million that are expected to be utilized in future periods. The intangible assets acquired with Novel Ingredients and NutraGenesis include the following (in thousands): Useful life (years) Novel Ingredients NutraGenesis Customer relationships 15-20 $ 46,200 $ 10,499 Trade names 5-10 6,700 3,200 $ 52,900 $ 13,699 The weighted average useful life (years) of the intangible assets included in the above table is 17.4 years. The weighted average useful life (years) of the trade names included in the above table is 7.9 years. The weighted average useful life (years) of the customer relationships included in the above table is 19.1 years. The following unaudited pro forma information has been prepared as if the acquisitions had occurred on January 1, 2016 (amounts in thousands, excluding EPS figures). The unaudited pro forma results do not reflect any material adjustments, operating efficiencies and other synergies which may result from the consolidation of operations. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 196,873 $ 205,023 $ 588,331 $ 616,489 Net income $ 9,229 $ 12,744 $ 31,165 $ 32,456 Income per common share - Basic $ 0.48 $ 0.66 $ 1.61 $ 1.69 Income per common share - Diluted $ 0.47 $ 0.65 $ 1.58 $ 1.66 These amounts have been calculated after applying the Company's accounting policies and adjusting the results of Novel Ingredients to reflect the additional depreciation and amortization that would have been charged assuming fair value adjustments to property, plant and equipment and intangible assets had been applied on January 1, 2016. Interest expense related to the borrowing for the acquisition was applied on January 1, 2016. Depreciation and amortization of approximately $3.0 million and interest expense of approximately $2.6 million related to the above were included in the nine months ended September 30, 2017 and September 30, 2016. Further, the above pro forma amounts include a fair value adjustment to inventory of $4.3 million and was applied on January 1, 2016. The three and nine months ended September 30, 2017 include non-recurring transaction costs of approximately $2.4 million . |
Revenues (Notes)
Revenues (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Adoption of ASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Based on the results of the analysis performed on the Company's effective contracts as of the initial application, the Company has concluded that revenues are expected to remain substantially unchanged from the previous revenue recognition model, and therefore, the adoption of the new standard did not have a material impact on the Company's financial position, results of operations or related disclosures. Revenue Recognition Revenues are recognized when control of goods is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. Control passes either upon shipment or delivery, depending on the agreed sales terms with customers. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and reduce revenues recognized. The Company believes there will not be significant changes to its estimates of variable consideration. The Company reports its business in three operating segments: Food, Health, and Nutrition; Industrial Specialties; and Other. The Company has three principal product lines within these operating segments: (i) Specialty Ingredients; (ii) Core Ingredients; and (iii) Co-Products and Other. Revenue recognition is measured on the same basis across these segments, products, markets, and geographic countries, with the performance obligation being the transfer of control of goods at a single point in time. Three months ended September 30, 2018 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 105,127 $ 6,726 $ 9,754 $ 17,682 $ 139,289 Core Ingredients 14,431 1,704 21,005 8,152 45,292 Co-Products & Other 10,568 123 1,517 145 12,353 Total $ 130,126 $ 8,553 $ 32,276 $ 25,979 $ 196,934 Three months ended September 30, 2017 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 90,400 $ 5,832 $ 10,558 $ 17,661 $ 124,451 Core Ingredients 13,677 2,252 21,155 7,444 44,528 Co-Products & Other 12,911 91 1,719 139 14,860 Total $ 116,988 $ 8,175 $ 33,432 $ 25,244 $ 183,839 Nine months ended September 30, 2018 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 332,525 $ 19,005 $ 26,472 $ 57,511 $ 435,513 Core Ingredients 43,120 5,947 60,988 27,366 137,421 Co-Products & Other 24,764 256 10,574 571 36,165 Total $ 400,409 $ 25,208 $ 98,034 $ 85,448 $ 609,099 Nine months ended September 30, 2017 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 256,603 $ 16,810 $ 26,366 $ 54,979 $ 354,758 Core Ingredients 43,578 6,273 58,757 20,273 128,881 Co-Products & Other 25,874 240 6,342 12,828 45,284 Total $ 326,055 $ 23,323 $ 91,465 $ 88,080 $ 528,923 Revenues for the geographic information are attributed to geographic areas based on the destination of the sale. The Company's payment terms vary by geography and location of its customer and the products offered. Invoices are generated upon shipment of the goods, with the term between invoicing and when payment is due being insignificant. Food, Health, and Nutrition and Industrial Specialties The Food, Health and Nutrition reporting segment, as well as the Industrial Specialties reporting segment, consists of products in the Specialty Ingredients and Core Ingredients product lines. Specialty Ingredients are the most value adding products in our portfolio. Specialty Ingredients consist of specialty phosphate products, specialty phosphoric acids, including polyphosphoric acid, and a range of other mineral, enzyme and botanical based specialty ingredients. The Company's Specialty Ingredients products have a wide range of applications, including: • flavor enhancers in beverages; • electrolytes in sports drinks; • texture modifiers in cheeses; • leavening agents in baked goods; • calcium and phosphorus fortification in food and beverages; • moisture and color retention in seafood, poultry and meat; • mineral, enzyme and botanical sources for a wide variety of fortified foods, beverages and dietary supplements; • excipients in vitamins, minerals, nutritional supplements and pharmaceuticals; and • abrasives in toothpaste. Each product typically has a number of different applications and end uses. For example, the Company's dicalcium phosphate product can be used as an excipient for pharmaceutical and dietary supplements, a leavening agent in bakery products and as an abrasive in oral care products. The Company often works directly with customers to tailor products to their required specifications for their finished product application. The Company's Core Ingredients product line includes food grade purified phosphoric acid, or PPA, technical grade PPA, sodium tripolyphosphate, or STPP, and detergent grade PPA. Food grade PPA can be used to produce phosphate salts and has a variety of applications in food and beverages. Technical grade PPA has applications in water treatment. The Company also sells technical grade PPA in the merchant market to third-party phosphate derivative producers. STPP is a key ingredient in cleaning products, including industrial and institutional cleaners and automatic dishwashing detergents and consumer laundry detergents outside the United States. In addition to its use in cleaning products, STPP is also used in water treatment, clay processing, and copper ore processing. The end use market for STPP is largely derived from consumer product applications. Detergent Grade PPA is a lower grade form of PPA used primarily in the production of STPP. Other The Other reporting segment consists of products in the Co-Products and Other product line. The Company's Co-Products and Other product line includes granular triple super phosphate, or GTSP, and merchant green phosphoric acid, or MGA. GTSP is generated at the Company's Coatzacoalcos facility in Mexico as a co-product of its purified wet acid manufacturing process. GTSP is a fertilizer product used throughout Latin America for increasing crop yields in a wide range of agricultural sectors. The Company sells MGA in the merchant market to third party manufacturers of fertilizer products. Practical Expedients and Exemptions Management reviewed the practical expedients which a Company may utilize when implementing Topic 606. As such, the Company has applied the practical expedient related to significant financing components and does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Earnings per Share (EPS)
Earnings per Share (EPS) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [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, or EPS, to be disclosed: basic EPS and diluted EPS. Under ASC Subtopic 260-10-45, unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as the Company's 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 Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Net income $ 14,090 $ 11,582 $ 31,251 $ 33,728 Less: earnings attributable to unvested shares (57 ) (69 ) (112 ) (188 ) Net income available to participating common shareholders $ 14,033 $ 11,513 $ 31,139 $ 33,540 Weighted average number of participating common and potential common shares outstanding: Basic number of participating common shares outstanding 19,525,284 19,412,474 19,511,097 19,395,317 Dilutive effect of stock equivalents 313,678 286,578 279,473 300,213 Diluted number of weighted average participating common shares outstanding 19,838,962 19,699,052 19,790,570 19,695,530 Earnings per participating common share: Earnings per participating common share—Basic $ 0.72 $ 0.59 $ 1.60 $ 1.73 Earnings per participating common share—Diluted $ 0.71 $ 0.58 $ 1.57 $ 1.70 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 431,751 395,850 465,956 382,215 |
Dividends
Dividends | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Dividends | Dividends The following is the dividend activity for the three and nine months ended September 30, 2018 and September 30, 2017 : Three Months Ended Nine Months Ended September 30 September 30 2018 2017 2018 2017 Dividends declared – per share $ 0.48 $ 0.48 $ 1.44 $ 1.44 Dividends declared – aggregate 9,415 9,373 28,197 28,095 Dividends paid – per share 0.48 0.48 1.44 1.44 Dividends paid – aggregate 9,415 9,373 28,197 28,095 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 direct parent company of Innophos, Inc., to make dividend payments on its common stock. |
Stockholders' Equity _ Share-Ba
Stockholders' Equity / Share-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity / Share-Based Compensation | Stockholders’ Equity / Stock-Based Compensation Restricted Stock In April 2018, there were a total of 47,609 restricted shares granted to certain employees with an aggregate fair value of $1.8 million . These awards are classified as equity awards and vest annually over three years. The related compensation expense is based on the date of grant share price of $39.28 . The compensation expense is amortized on a straight-line basis over the requisite vesting period and accelerated for those employees that are retirement eligible during the vesting period. In August 2018, there were a total of 2,826 restricted shares granted to certain employees with an aggregate fair value of $0.1 million. These awards are classified as equity awards and vest annually over three years. The related compensation expense is based on the date of grant share price of $44.38 . The compensation expense is amortized on a straight-line basis over the requisite vesting period. Stock Options In April 2018, the Company granted a total of 196,198 non-qualified stock options at exercise price of $39.28 , to certain employees with an aggregate fair value of $1.4 million . The non-qualified stock options vest annually over three years with April 3, 2028 expiration date. The fair values of the options granted in 2018 were determined using the Black-Scholes option-pricing model. The blended assumptions used in the Black-Scholes option-pricing model were as follows for the April 2, 2018 grant: Non-qualified stock options Expected Volatility 29.7 % Dividend Yield 4.6 % Risk-free interest rate 2.61 % Expected term (years) 6.3 Weighted average grant date fair value of stock options $ 7.28 For the 2018 grant, the expected volatility and the expected term are based on the Company's historical data. The dividend yield is the expected annual dividend payments divided by the average stock price since announcement of the latest dividend change up to the date of grant. The risk-free interest rates are derived from the U.S. Treasury securities in effect on the date of grant whose maturity period equals the options expected term. The Company applies an expected forfeiture rate to stock-based compensation expense. The estimate of the forfeiture rate is based primarily upon historical experience of employee turnover. As actual forfeitures become known, stock-based compensation expense is adjusted accordingly. Performance Share Awards In April 2018, the Company granted 35,702 performance shares to certain employees with an aggregate fair value of $1.4 million . The performance shares vest at the end of the three year performance cycle and the number of shares distributable depends on the extent to which the Company attains pre-established performance goals. Amounts equivalent to declared dividends will accrue on the performance shares and will vest over the same period. Stock Grants In May 2018, the six non-employee members of the Board of Directors were granted a combined total of 11,736 shares of the Company's common stock with an aggregated fair value of approximately $0.6 million which immediately vested as part of their director fees. 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 Nine Months Ended September 30, September 30, September 30, September 30, Stock options $ 398 $ 221 $ 1,282 $ 825 Restricted stock 580 378 1,860 1,290 Performance shares 173 112 422 251 Stock grants — — 579 630 Total share-based compensation expense $ 1,151 $ 711 $ 4,143 $ 2,996 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Raw materials $ 51,509 $ 48,445 Finished products 103,244 83,634 Spare parts 13,993 13,606 $ 168,746 $ 145,685 Inventory reserves for excess quantities, obsolescence or shelf-life expiration as of September 30, 2018 and December 31, 2017 were $13,402 and $16,168 , respectively. |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following: September 30, December 31, Creditable taxes (value added taxes) $ 9,763 $ 7,285 Vendor inventory deposits (prepaid) 8,100 7,807 Prepaid income taxes 11,793 3,394 Prepaid insurance 2,130 2,492 Other 2,496 3,991 $ 34,282 $ 24,969 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table provides a reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period (in thousands): Food, Health and Nutrition Industrial Specialties Other Total Balance: January 1, 2018 $ 129,417 $ 23,283 $ — $ 152,700 Add: Goodwill from acquisition 67 — — 67 Balance: September 30, 2018 $ 129,484 $ 23,283 $ — $ 152,767 |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets and Other Noncurrent Assets, Net [Abstract] | |
Intangibles and Other Assets, net | Intangibles and Other Assets, net Intangibles and other assets consist of the following: Useful life (years) September 30, December 31, Developed technology and application patents, net of accumulated amortization of $33,708 for 2018 and $30,716 for 2017 7-20 $ 12,567 $ 15,559 Customer relationships, net of accumulated amortization of $26,589 for 2018 and $22,279 for 2017 5-20 68,922 73,232 Trade names and license agreements, net of accumulated amortization of $13,958 for 2018 and $12,023 for 2017 5-20 13,603 15,538 Non-compete agreements, net of accumulated amortization of $1,313 for 2018 and $1,293 for 2017 3-10 20 40 Total intangibles, net $ 95,112 $ 104,369 Deferred income taxes $ — $ 5,058 Deferred financing costs, net of accumulated amortization of $4,224 for 2018 and $3,902 for 2017 (see note 12) 1,399 1,721 Other assets 2,380 1,768 Total other assets, net $ 3,779 $ 8,547 $ 98,891 $ 112,916 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consist of the following: September 30, December 31, Payroll related $ 15,007 $ 15,684 Taxes other than income taxes 1,864 2,804 Benefits and pensions 5,171 7,730 Freight and rebates 9,888 3,937 Income taxes 8,601 4,933 Restructuring and management transition reserve 217 1,719 Other 12,645 6,277 $ 53,393 $ 43,084 Other Long-Term Liabilities Other long-term liabilities consist of the following: September 30, December 31, Deferred income taxes $ 3,463 $ 2,354 Long term portion of U.S. transition tax — 12,095 Pension and post retirement liabilities 9,501 8,886 Restructuring and management transition reserve — 210 Uncertain tax positions 320 1,974 Environmental liabilities 1,100 1,100 Other liabilities 2,003 1,453 $ 16,387 $ 28,072 |
Short-Term Borrowings, Long-Ter
Short-Term Borrowings, Long-Term Debt, and Interest Expense | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings, Long-Term Debt, and Interest Expense | Short-Term Borrowings, Long-Term Debt, and Interest Expense Short-term borrowings and long-term debt consist of the following: September 30, December 31, Revolver borrowings under the credit facility due 2021 $ 345,000 $ 310,000 Capital leases 7 9 Total borrowings $ 345,007 $ 310,009 Less current portion of capital leases 4 4 Long-term debt $ 345,003 $ 310,005 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, 2021. The credit agreement governing this facility 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 September 30, 2018 , $345.0 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 $104.3 million , taking into account $0.7 million in face amount of letters of credit issued under the sub-facility. The current weighted average interest rate for all debt is 4.3% . 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 September 30, 2018 , the Company was in full compliance with all debt covenant requirements. Based on $345.0 million outstanding borrowings as floating rate debt, an immediate increase of one percentage point would cause an increase to interest expense of approximately $3.5 million per year. Total interest paid by the Company for all indebtedness for the nine months ended September 30, 2018 and September 30, 2017 was $10.4 million and $4.3 million , respectively. Interest expense, net consists of the following: Three months ended Nine months ended September 30, September 30, September 30, September 30, Interest expense $ 3,703 $ 1,667 $ 10,281 $ 4,432 Deferred financing cost 107 107 322 322 Interest income (18 ) (21 ) (50 ) (41 ) Less: amount capitalized for capital projects (364 ) (123 ) (1,023 ) (278 ) Total interest expense, net $ 3,428 $ 1,630 $ 9,530 $ 4,435 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Current Liabilities Other current liabilities consist of the following: September 30, December 31, Payroll related $ 15,007 $ 15,684 Taxes other than income taxes 1,864 2,804 Benefits and pensions 5,171 7,730 Freight and rebates 9,888 3,937 Income taxes 8,601 4,933 Restructuring and management transition reserve 217 1,719 Other 12,645 6,277 $ 53,393 $ 43,084 Other Long-Term Liabilities Other long-term liabilities consist of the following: September 30, December 31, Deferred income taxes $ 3,463 $ 2,354 Long term portion of U.S. transition tax — 12,095 Pension and post retirement liabilities 9,501 8,886 Restructuring and management transition reserve — 210 Uncertain tax positions 320 1,974 Environmental liabilities 1,100 1,100 Other liabilities 2,003 1,453 $ 16,387 $ 28,072 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate on income before taxes was approximately 12% for the nine months ended September 30, 2018 compared to approximately 32% for the comparable period in 2017. The change in the components of the effective tax rate is primarily due to the enactment of the U.S.Tax Cuts and Jobs Act, or Tax Act, specifically the revision of the transition tax estimate for fiscal year ended December 31, 2017, and the remeasurement of NOLs used to offset the transition tax. The revision of the transition tax estimate for fiscal year ended December 31, 2017 resulted in a 9% decrease in the effective tax rate and the remeasurement of NOLs used to offset the transition tax resulted in a 13% decrease in the effective tax rate. In addition, the settlement of state income tax examinations resulted in a 2% decrease in the effective tax rate. The decrease in the effective tax rate was partially offset by a 4% increase due to the accrual of Canadian withholding tax, resulting from the reversal of the company's permanent reinvestment assertion on its Canadian subsidiary. On December 22, 2017, the U.S. enacted the Tax Act. The Tax Act significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017 and transitioning U.S. international taxation from a worldwide tax system to a territorial tax system. Beginning in 2018, the Tax Act includes two new U.S. provisions, namely the GILTI provisions and the base-erosion and anti-abuse tax, or BEAT, provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company has elected to treat any potential GILTI inclusions as a period cost during 2018. The BEAT provisions in the Tax Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company does not expect to have any material tax impacts of BEAT and therefore has not recorded any related tax impacts in its consolidated financial statements for the period ended September 30, 2018. On December 22, 2017, the Securities and Exchange Commission issued SAB 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118 and ASU 2018-05, the Company has recognized the provisional tax impacts related to the re-measurement of our deferred income tax assets and liabilities and the one-time, mandatory transition tax on deemed repatriation during the year ended December 31, 2017. During the quarter ended September 30, 2018, the Company recorded a total provisional benefit of $7.4 million . This provisional benefit included $3.2 million related to adjustments to the transition tax and a $4.2 million benefit related to the remeasurement of certain deferred tax assets and liabilities as a result of the U.S. federal tax return filing, mainly NOLs which were used to offset the transition tax. While the Company does not anticipate any remaining adjustments related to the Tax Act, the measurement period under SAB 118 remains open as there is still anticipated guidance clarifying certain aspects of the Tax Act. Any subsequent adjustment to these amounts will be recorded to tax expense in the fourth quarter of 2018 when the full analysis is complete. As of September 30, 2018, the Company is still in the process of evaluating the impact of the Tax Act on its permanent reinvestment assertion. Specifically, with respect to the accumulated earnings of its Canadian subsidiary, the Company has reversed its permanent reinvestment assertion and has provided $1.2 million of foreign withholding taxes on these unremitted earnings. The Company will complete its evaluation of its permanent reinvestment assertion within the one year measurement period as allowed by SAB 118. Any subsequent adjustments will be recorded to tax expense in the fourth quarter of 2018 when the full analysis is complete. 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 2012 through 2015. Also, certain state income tax assessments are under protest and the Company believes its financial position is sustainable. During the quarter ended June 30, 2018, the Company decreased $1.9 million of liability for unrecognized tax benefits resulting from a $1.1 million settlement of state income tax examinations and released $0.8 million . The Company estimates the liability for unrecognized tax benefits may decrease by approximately $0.5 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 September 30, 2018 , 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 $16.6 million and $14.0 million for the nine months ended September 30, 2018 and September 30, 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 the Company's site in Nashville, Tennessee, 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. The Company has 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 September 30, 2018 . Other Legal Matters In addition, the Company is a party to legal proceedings and contractual disputes that arise in the ordinary course of its 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 the Company's 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 the Company's business, results of operations, financial condition, and/or cash flows. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans and Postretirement Benefits | Pension Plans and Postretirement Benefits Net periodic benefit expense for the United States plans: For the three months ended September 30, 2018 For the three months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ — $ 36 $ 36 $ — $ 34 $ 34 Interest cost 24 29 53 25 31 56 Expected return on assets (38 ) — (38 ) (35 ) — (35 ) Amortization of prior service cost — — — — — — unrecognized (gain) loss — (39 ) (39 ) — (50 ) (50 ) net transition obligation — — — — — — Net periodic cost $ (14 ) $ 26 $ 12 $ (10 ) $ 15 $ 5 For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ — $ 109 $ 109 $ — $ 101 $ 101 Interest cost 71 87 158 76 92 168 Expected return on assets (113 ) — (113 ) (105 ) — (105 ) Amortization of prior service cost — — — — — — unrecognized (gain) loss — (119 ) (119 ) — (149 ) (149 ) net transition obligation — — — — — — Net periodic cost $ (42 ) $ 77 $ 35 $ (29 ) $ 44 $ 15 Innophos has no minimum contribution requirements and does not plan to make cash contributions for its U.S. defined benefit pension plan in 2018. Innophos made its entire cash contribution of $3.1 million for the U.S. defined contribution plan during the first quarter of 2018 for the plan year 2017. Net periodic benefit expense for the Canadian plans: For the three months ended September 30, 2018 For the three months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ 110 $ 15 $ 125 $ 98 $ 13 $ 111 Interest cost 128 14 142 132 14 146 Expected return on assets (199 ) — (199 ) (209 ) — (209 ) Amortization of actuarial loss (gain) 47 1 48 45 — 45 prior service cost 13 — 13 27 — 27 net transition obligation — 6 6 — 6 6 Exchange rate changes (97 ) 32 (65 ) (53 ) 18 (35 ) Net periodic cost $ 2 $ 68 $ 70 $ 40 $ 51 $ 91 For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ 332 $ 47 $ 379 $ 285 $ 38 $ 323 Interest cost 389 43 432 384 41 425 Expected return on assets (602 ) — (602 ) (609 ) — (609 ) Amortization of actuarial loss (gain) 142 3 145 131 — 131 prior service cost 39 — 39 80 — 80 net transition obligation — 18 18 — 17 17 Exchange rate changes 121 (41 ) 80 (199 ) 63 (136 ) Net periodic cost $ 421 $ 70 $ 491 $ 72 $ 159 $ 231 Innophos Canada, Inc. plans to make cash contributions to its Canadian defined benefit plan of approximately $0.5 million in 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) by Component: For the three months ended September 30, 2018 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at June 30, 2018 $ (1,715 ) $ — $ (1,715 ) Other comprehensive income before reclassifications (47 ) — (47 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive income (47 ) — (47 ) Balance at September 30, 2018 $ (1,762 ) $ — $ (1,762 ) For the three months ended September 30, 2017 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at June 30, 2017 $ (1,645 ) $ 96 $ (1,549 ) Other comprehensive loss before reclassifications (103 ) (52 ) (155 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive loss (103 ) (52 ) (155 ) Balance at September 30, 2017 $ (1,748 ) $ 44 $ (1,704 ) For the nine months ended September 30, 2018 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2017 $ (2,198 ) $ — $ (2,198 ) Other comprehensive income before reclassifications 143 — 143 Amounts reclassified from accumulated other comprehensive income 293 — 293 Net current period other comprehensive income 436 — 436 Balance at September 30, 2018 $ (1,762 ) $ — $ (1,762 ) For the nine months ended September 30, 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 (255 ) 35 (220 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive (loss) income (255 ) 35 (220 ) Balance at September 30, 2017 $ (1,748 ) $ 44 $ (1,704 ) |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs During 2015, management evaluated several initiatives to improve the overall operating efficiency of the organization. As a result of this evaluation, the Company launched an initiative to reduce its 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 2018 activities related to these restructuring initiatives for severance and benefits: For the three months ended September 30, 2018 Restructuring Costs Balance at June 30, 2018 $ 217 Expense recorded — Payments made — Balance at September 30, 2018 $ 217 For the nine months ended September 30, 2018 Restructuring Costs Balance at December 31, 2017 $ 1,929 Expense recorded — Payments made (1,712 ) Balance at September 30, 2018 $ 217 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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 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. These reporting segments accurately reflect the underlying business dynamics and align with the strategic direction of the Company. For the three months ended September 30, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 115,132 $ 65,667 $ 16,135 $ 196,934 EBITDA $ 14,563 $ 8,885 $ 2,424 $ 25,872 Depreciation and amortization expense $ 7,142 $ 3,153 $ 569 $ 10,864 For the three months ended September 30, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 98,276 $ 67,682 $ 17,881 $ 183,839 EBITDA $ 16,442 $ 13,491 $ (1,145 ) $ 28,788 Depreciation and amortization expense $ 5,664 $ 3,488 $ 726 $ 9,878 For the nine months ended September 30, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 367,159 $ 195,767 $ 46,173 $ 609,099 EBITDA $ 48,494 $ 26,772 $ 2,987 $ 78,253 Depreciation and amortization expense $ 21,677 $ 10,257 $ 1,383 $ 33,317 For the nine months ended September 30, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 281,558 $ 198,721 $ 48,644 $ 528,923 EBITDA $ 49,098 $ 31,666 $ 2,086 $ 82,850 Depreciation and amortization expense $ 16,884 $ 10,346 $ 1,779 $ 29,009 A reconciliation of net income to EBITDA follows: Three months ended September 30, September 30, Net income $ 14,090 $ 11,582 (Benefit) provision for income taxes (2,510 ) 5,698 Interest expense, net 3,428 1,630 Depreciation and amortization 10,864 9,878 EBITDA $ 25,872 $ 28,788 Nine months ended September 30, September 30, Net income $ 31,251 $ 33,728 Provision for income taxes 4,155 15,678 Interest expense, net 9,530 4,435 Depreciation and amortization 33,317 29,009 EBITDA $ 78,253 $ 82,850 |
Assets Held for Sale (Notes)
Assets Held for Sale (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Assets Held for Sale [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Assets Held for Sale The Company plans to complete a sale leaseback transaction during the fourth quarter of 2018 on a non-core asset for an estimated $20 million in net cash. The assets involved in this transaction, which are allocated among our Food, Health and Nutrition and Industrial Specialties segments, have a net book value of $7.0 million as of September 30, 2018. |
Basis of Statement Presentati_2
Basis of Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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, or U.S. GAAP, for interim financial reporting and do not include all disclosures required by U.S. 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, 2017 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, 2017 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board, or 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. The guidance permits the use of either a retrospective or modified retrospective transition method. The Company adopted the standard using the modified retrospective transition method on January 1, 2018. The Company concluded that revenues remain materially unchanged from the prior revenue recognition model and therefore, the adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. Please see Note 3, "Revenue Recognition", for further 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. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. 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 Company adopted this standard as of January 1, 2018 on a modified retrospective basis in this interim period and recorded an immaterial cumulative adjustment to retained earnings. 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. The Company's adoption of this standard did not have a material impact on its 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. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement 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 (loss), net. This standard update is effective beginning with the first quarter 2018 and must be applied retrospectively. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, Stock Compensation - Scope of Modification Accounting, which requires all modifications to be accounted for as a modification unless the fair value, vesting conditions and classification of the award as equity or liability are the same as the classification of the original award immediately before the original award is modified. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017 and for interim periods therein. The Company's adoption of this standard did not have a material impact on its financial position, results of operations and related disclosures. In March 2018, the FASB issued ASU 2018-05 associated with the accounting and disclosures around the enactment of the Act and the Securities and Exchange Commission’s Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which the Company has adopted. See Note 14 for the disclosures related to this amended guidance. Issued but not yet adopted 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. In July 2018, the FASB issued updated guidance which allows an additional transition method to adopt the new leases standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. The Company expects to elect this transition method at the adoption date of January 1, 2019. We are currently finalizing our lease portfolio analysis to determine the impact to the Consolidated Financial Statements. We are implementing processes to assist in our ongoing lease data collection and analysis, and updating our accounting policies and internal controls that would be impacted by the new guidance, to ensure readiness for adoption in the first quarter of 2019. While the Company is continuing to assess the effect of adoption, it currently believes the most significant changes relate to the recognition of new right-of-use assets and lease liabilities on its balance sheet for railcars, tank operating leases and buildings. The Company will continue to evaluate the impact of adoption of the ASU on its financial position, results of operations and related disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and hedging (Topic 815): Targeted improvements to accounting for hedging activities. This standard more closely aligns the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. This standard also addresses specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. Additionally, by aligning the timing of recognition of hedge results with the earnings effect of the hedged item for cash flow and net investment hedges, and by including the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is presented, the results of an entity’s hedging program and the cost of executing that program will be more visible to users of financial statements. The new standard is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company does not anticipate the adoption of this standard will have a material impact on its financial position, results of operations and related disclosures. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed (in thousands): Novel Ingredients NutraGenesis Cash $ 105 $ 82 Accounts receivable, net of allowances of $511 and $0 for Novel Ingredients and NutraGenesis, respectively 11,255 850 Inventory, including fair value adjustment of $4,300 for Novel Ingredients 23,121 — Other current assets 1,655 638 Property, plant and equipment 4,261 — Other non-current assets 187 — Goodwill 54,008 14,387 Intangible assets 52,900 13,699 Accounts payable (14,726 ) (793 ) Accrued expenses (3,910 ) (524 ) Deferred income taxes (5,067 ) (151 ) Customer Deposits — (875 ) Total $ 123,789 $ 27,313 |
Earnings per Share (EPS) (Table
Earnings per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings per Share | 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 Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Net income $ 14,090 $ 11,582 $ 31,251 $ 33,728 Less: earnings attributable to unvested shares (57 ) (69 ) (112 ) (188 ) Net income available to participating common shareholders $ 14,033 $ 11,513 $ 31,139 $ 33,540 Weighted average number of participating common and potential common shares outstanding: Basic number of participating common shares outstanding 19,525,284 19,412,474 19,511,097 19,395,317 Dilutive effect of stock equivalents 313,678 286,578 279,473 300,213 Diluted number of weighted average participating common shares outstanding 19,838,962 19,699,052 19,790,570 19,695,530 Earnings per participating common share: Earnings per participating common share—Basic $ 0.72 $ 0.59 $ 1.60 $ 1.73 Earnings per participating common share—Diluted $ 0.71 $ 0.58 $ 1.57 $ 1.70 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 431,751 395,850 465,956 382,215 |
Dividends (Tables)
Dividends (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Dividends Activity | The following is the dividend activity for the three and nine months ended September 30, 2018 and September 30, 2017 : Three Months Ended Nine Months Ended September 30 September 30 2018 2017 2018 2017 Dividends declared – per share $ 0.48 $ 0.48 $ 1.44 $ 1.44 Dividends declared – aggregate 9,415 9,373 28,197 28,095 Dividends paid – per share 0.48 0.48 1.44 1.44 Dividends paid – aggregate 9,415 9,373 28,197 28,095 |
Stockholders' Equity _ Share-_2
Stockholders' Equity / Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Components of Stock-Based Compensation Expense | 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 Nine Months Ended September 30, September 30, September 30, September 30, Stock options $ 398 $ 221 $ 1,282 $ 825 Restricted stock 580 378 1,860 1,290 Performance shares 173 112 422 251 Stock grants — — 579 630 Total share-based compensation expense $ 1,151 $ 711 $ 4,143 $ 2,996 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: September 30, December 31, Raw materials $ 51,509 $ 48,445 Finished products 103,244 83,634 Spare parts 13,993 13,606 $ 168,746 $ 145,685 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: September 30, December 31, Creditable taxes (value added taxes) $ 9,763 $ 7,285 Vendor inventory deposits (prepaid) 8,100 7,807 Prepaid income taxes 11,793 3,394 Prepaid insurance 2,130 2,492 Other 2,496 3,991 $ 34,282 $ 24,969 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Reconciliation of the Carrying Amount of Goodwill | The following table provides a reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period (in thousands): Food, Health and Nutrition Industrial Specialties Other Total Balance: January 1, 2018 $ 129,417 $ 23,283 $ — $ 152,700 Add: Goodwill from acquisition 67 — — 67 Balance: September 30, 2018 $ 129,484 $ 23,283 $ — $ 152,767 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets and Other Noncurrent Assets, Net [Abstract] | |
Summary of Intangibles and Other Assets | Intangibles and other assets consist of the following: Useful life (years) September 30, December 31, Developed technology and application patents, net of accumulated amortization of $33,708 for 2018 and $30,716 for 2017 7-20 $ 12,567 $ 15,559 Customer relationships, net of accumulated amortization of $26,589 for 2018 and $22,279 for 2017 5-20 68,922 73,232 Trade names and license agreements, net of accumulated amortization of $13,958 for 2018 and $12,023 for 2017 5-20 13,603 15,538 Non-compete agreements, net of accumulated amortization of $1,313 for 2018 and $1,293 for 2017 3-10 20 40 Total intangibles, net $ 95,112 $ 104,369 Deferred income taxes $ — $ 5,058 Deferred financing costs, net of accumulated amortization of $4,224 for 2018 and $3,902 for 2017 (see note 12) 1,399 1,721 Other assets 2,380 1,768 Total other assets, net $ 3,779 $ 8,547 $ 98,891 $ 112,916 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consist of the following: September 30, December 31, Payroll related $ 15,007 $ 15,684 Taxes other than income taxes 1,864 2,804 Benefits and pensions 5,171 7,730 Freight and rebates 9,888 3,937 Income taxes 8,601 4,933 Restructuring and management transition reserve 217 1,719 Other 12,645 6,277 $ 53,393 $ 43,084 |
Short-Term Borrowings, Long-T_2
Short-Term Borrowings, Long-Term Debt, and Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-term borrowings and long-term debt consist of the following: September 30, December 31, Revolver borrowings under the credit facility due 2021 $ 345,000 $ 310,000 Capital leases 7 9 Total borrowings $ 345,007 $ 310,009 Less current portion of capital leases 4 4 Long-term debt $ 345,003 $ 310,005 |
Components of Interest Expense, Net | Interest expense, net consists of the following: Three months ended Nine months ended September 30, September 30, September 30, September 30, Interest expense $ 3,703 $ 1,667 $ 10,281 $ 4,432 Deferred financing cost 107 107 322 322 Interest income (18 ) (21 ) (50 ) (41 ) Less: amount capitalized for capital projects (364 ) (123 ) (1,023 ) (278 ) Total interest expense, net $ 3,428 $ 1,630 $ 9,530 $ 4,435 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consist of the following: September 30, December 31, Deferred income taxes $ 3,463 $ 2,354 Long term portion of U.S. transition tax — 12,095 Pension and post retirement liabilities 9,501 8,886 Restructuring and management transition reserve — 210 Uncertain tax positions 320 1,974 Environmental liabilities 1,100 1,100 Other liabilities 2,003 1,453 $ 16,387 $ 28,072 |
Pension Plans and Postretirem_2
Pension Plans and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Expense | Net periodic benefit expense for the Canadian plans: For the three months ended September 30, 2018 For the three months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ 110 $ 15 $ 125 $ 98 $ 13 $ 111 Interest cost 128 14 142 132 14 146 Expected return on assets (199 ) — (199 ) (209 ) — (209 ) Amortization of actuarial loss (gain) 47 1 48 45 — 45 prior service cost 13 — 13 27 — 27 net transition obligation — 6 6 — 6 6 Exchange rate changes (97 ) 32 (65 ) (53 ) 18 (35 ) Net periodic cost $ 2 $ 68 $ 70 $ 40 $ 51 $ 91 For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ 332 $ 47 $ 379 $ 285 $ 38 $ 323 Interest cost 389 43 432 384 41 425 Expected return on assets (602 ) — (602 ) (609 ) — (609 ) Amortization of actuarial loss (gain) 142 3 145 131 — 131 prior service cost 39 — 39 80 — 80 net transition obligation — 18 18 — 17 17 Exchange rate changes 121 (41 ) 80 (199 ) 63 (136 ) Net periodic cost $ 421 $ 70 $ 491 $ 72 $ 159 $ 231 Net periodic benefit expense for the United States plans: For the three months ended September 30, 2018 For the three months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ — $ 36 $ 36 $ — $ 34 $ 34 Interest cost 24 29 53 25 31 56 Expected return on assets (38 ) — (38 ) (35 ) — (35 ) Amortization of prior service cost — — — — — — unrecognized (gain) loss — (39 ) (39 ) — (50 ) (50 ) net transition obligation — — — — — — Net periodic cost $ (14 ) $ 26 $ 12 $ (10 ) $ 15 $ 5 For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 Pension benefits Other benefits Total Pension benefits Other benefits Total Service cost $ — $ 109 $ 109 $ — $ 101 $ 101 Interest cost 71 87 158 76 92 168 Expected return on assets (113 ) — (113 ) (105 ) — (105 ) Amortization of prior service cost — — — — — — unrecognized (gain) loss — (119 ) (119 ) — (149 ) (149 ) net transition obligation — — — — — — Net periodic cost $ (42 ) $ 77 $ 35 $ (29 ) $ 44 $ 15 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in accumulated other comprehensive income (loss) by Component: For the three months ended September 30, 2018 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at June 30, 2018 $ (1,715 ) $ — $ (1,715 ) Other comprehensive income before reclassifications (47 ) — (47 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive income (47 ) — (47 ) Balance at September 30, 2018 $ (1,762 ) $ — $ (1,762 ) For the three months ended September 30, 2017 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at June 30, 2017 $ (1,645 ) $ 96 $ (1,549 ) Other comprehensive loss before reclassifications (103 ) (52 ) (155 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive loss (103 ) (52 ) (155 ) Balance at September 30, 2017 $ (1,748 ) $ 44 $ (1,704 ) For the nine months ended September 30, 2018 Pension and Other Postretirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2017 $ (2,198 ) $ — $ (2,198 ) Other comprehensive income before reclassifications 143 — 143 Amounts reclassified from accumulated other comprehensive income 293 — 293 Net current period other comprehensive income 436 — 436 Balance at September 30, 2018 $ (1,762 ) $ — $ (1,762 ) For the nine months ended September 30, 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 (255 ) 35 (220 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive (loss) income (255 ) 35 (220 ) Balance at September 30, 2017 $ (1,748 ) $ 44 $ (1,704 ) |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Initiatives for Severance and Benefits | The following table summarizes the fiscal year 2018 activities related to these restructuring initiatives for severance and benefits: For the three months ended September 30, 2018 Restructuring Costs Balance at June 30, 2018 $ 217 Expense recorded — Payments made — Balance at September 30, 2018 $ 217 For the nine months ended September 30, 2018 Restructuring Costs Balance at December 31, 2017 $ 1,929 Expense recorded — Payments made (1,712 ) Balance at September 30, 2018 $ 217 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | For the three months ended September 30, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 115,132 $ 65,667 $ 16,135 $ 196,934 EBITDA $ 14,563 $ 8,885 $ 2,424 $ 25,872 Depreciation and amortization expense $ 7,142 $ 3,153 $ 569 $ 10,864 For the three months ended September 30, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 98,276 $ 67,682 $ 17,881 $ 183,839 EBITDA $ 16,442 $ 13,491 $ (1,145 ) $ 28,788 Depreciation and amortization expense $ 5,664 $ 3,488 $ 726 $ 9,878 For the nine months ended September 30, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 367,159 $ 195,767 $ 46,173 $ 609,099 EBITDA $ 48,494 $ 26,772 $ 2,987 $ 78,253 Depreciation and amortization expense $ 21,677 $ 10,257 $ 1,383 $ 33,317 For the nine months ended September 30, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 281,558 $ 198,721 $ 48,644 $ 528,923 EBITDA $ 49,098 $ 31,666 $ 2,086 $ 82,850 Depreciation and amortization expense $ 16,884 $ 10,346 $ 1,779 $ 29,009 |
Reconciliation of Net Income to EBITDA | A reconciliation of net income to EBITDA follows: Three months ended September 30, September 30, Net income $ 14,090 $ 11,582 (Benefit) provision for income taxes (2,510 ) 5,698 Interest expense, net 3,428 1,630 Depreciation and amortization 10,864 9,878 EBITDA $ 25,872 $ 28,788 Nine months ended September 30, September 30, Net income $ 31,251 $ 33,728 Provision for income taxes 4,155 15,678 Interest expense, net 9,530 4,435 Depreciation and amortization 33,317 29,009 EBITDA $ 78,253 $ 82,850 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Nov. 03, 2017 | Aug. 25, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 152,767 | $ 152,700 | ||
Novel | ||||
Business Acquisition [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 16,400 | |||
Business Combination, Consideration Transferred | $ 123,700 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Cash payment to acquire business | $ 125,000 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 1,300 | |||
Goodwill | $ 54,008 | |||
Nutragenesis [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 27,300 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Cash payment to acquire business | $ 27,400 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 100 | |||
Goodwill | 14,387 | |||
Novel Ingredients And NutraGenesis [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 68,400 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 24,000 |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Nov. 03, 2017 | Aug. 25, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 152,767 | $ 152,767 | $ 152,700 | ||||
Net income | $ 14,090 | $ 11,582 | $ 31,251 | $ 33,728 | $ 22,445 | ||
Novel | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Cash | $ 105 | ||||||
Accounts receivable, net of allowances of $511 and $0 for Novel Ingredients and NutraGenesis, respectively | 11,255 | ||||||
Inventory, including fair value adjustment of $4,300 for Novel Ingredients | 23,121 | ||||||
Other current assets | 1,655 | ||||||
Property, plant and equipment | 4,261 | ||||||
Other non-current assets | 187 | ||||||
Goodwill | 54,008 | ||||||
Intangible assets | 52,900 | ||||||
Accounts payable | (14,726) | ||||||
Accrued expenses | (3,910) | ||||||
Deferred income taxes | (5,067) | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Customer Deposits | 0 | ||||||
Total | 123,789 | ||||||
Allowances | 511 | ||||||
Cash payment to acquire business | 125,000 | ||||||
Nutragenesis [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Cash | $ 82 | ||||||
Accounts receivable, net of allowances of $511 and $0 for Novel Ingredients and NutraGenesis, respectively | 850 | ||||||
Inventory, including fair value adjustment of $4,300 for Novel Ingredients | 0 | ||||||
Other current assets | 638 | ||||||
Property, plant and equipment | 0 | ||||||
Other non-current assets | 0 | ||||||
Goodwill | 14,387 | ||||||
Intangible assets | 13,699 | ||||||
Accounts payable | (793) | ||||||
Accrued expenses | (524) | ||||||
Deferred income taxes | (151) | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Customer Deposits | (875) | ||||||
Total | 27,313 | ||||||
Cash payment to acquire business | $ 27,400 | ||||||
Fair Value adjustment to inventory | Novel | |||||||
Business Acquisition [Line Items] | |||||||
Net income | $ (4,300) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net sales | $ 196,934 | $ 183,839 | $ 609,099 | $ 528,923 |
United States | ||||
Net sales | 130,126 | 116,988 | 400,409 | 326,055 |
CANADA | ||||
Net sales | 8,553 | 8,175 | 25,208 | 23,323 |
MEXICO | ||||
Net sales | 32,276 | 33,432 | 98,034 | 91,465 |
Other Foreign Countries [Member] | ||||
Net sales | 25,979 | 25,244 | 85,448 | 88,080 |
Specialty Ingredients [Member] | ||||
Net sales | 139,289 | 124,451 | 435,513 | 354,758 |
Specialty Ingredients [Member] | United States | ||||
Net sales | 105,127 | 90,400 | 332,525 | 256,603 |
Specialty Ingredients [Member] | CANADA | ||||
Net sales | 6,726 | 5,832 | 19,005 | 16,810 |
Specialty Ingredients [Member] | MEXICO | ||||
Net sales | 9,754 | 10,558 | 26,472 | 26,366 |
Specialty Ingredients [Member] | Other Foreign Countries [Member] | ||||
Net sales | 17,682 | 17,661 | 57,511 | 54,979 |
Core Ingredients [Member] | ||||
Net sales | 45,292 | 44,528 | 137,421 | 128,881 |
Core Ingredients [Member] | United States | ||||
Net sales | 14,431 | 13,677 | 43,120 | 43,578 |
Core Ingredients [Member] | CANADA | ||||
Net sales | 1,704 | 2,252 | 5,947 | 6,273 |
Core Ingredients [Member] | MEXICO | ||||
Net sales | 21,005 | 21,155 | 60,988 | 58,757 |
Core Ingredients [Member] | Other Foreign Countries [Member] | ||||
Net sales | 8,152 | 7,444 | 27,366 | 20,273 |
Co-Products And Other [Member] | ||||
Net sales | 12,353 | 14,860 | 36,165 | 45,284 |
Co-Products And Other [Member] | United States | ||||
Net sales | 10,568 | 12,911 | 24,764 | 25,874 |
Co-Products And Other [Member] | CANADA | ||||
Net sales | 123 | 91 | 256 | 240 |
Co-Products And Other [Member] | MEXICO | ||||
Net sales | 1,517 | 1,719 | 10,574 | 6,342 |
Co-Products And Other [Member] | Other Foreign Countries [Member] | ||||
Net sales | $ 145 | $ 139 | $ 571 | $ 12,828 |
Revenue Recognition Quarter End
Revenue Recognition Quarter Ended June 30, 2017 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net sales | $ 196,934 | $ 183,839 | $ 609,099 | $ 528,923 |
Specialty Ingredients [Member] | ||||
Net sales | 139,289 | 124,451 | 435,513 | 354,758 |
Core Ingredients [Member] | ||||
Net sales | 45,292 | 44,528 | 137,421 | 128,881 |
Co-Products And Other [Member] | ||||
Net sales | 12,353 | 14,860 | 36,165 | 45,284 |
United States | ||||
Net sales | 130,126 | 116,988 | 400,409 | 326,055 |
United States | Specialty Ingredients [Member] | ||||
Net sales | 105,127 | 90,400 | 332,525 | 256,603 |
United States | Core Ingredients [Member] | ||||
Net sales | 14,431 | 13,677 | 43,120 | 43,578 |
United States | Co-Products And Other [Member] | ||||
Net sales | 10,568 | 12,911 | 24,764 | 25,874 |
CANADA | ||||
Net sales | 8,553 | 8,175 | 25,208 | 23,323 |
CANADA | Specialty Ingredients [Member] | ||||
Net sales | 6,726 | 5,832 | 19,005 | 16,810 |
CANADA | Core Ingredients [Member] | ||||
Net sales | 1,704 | 2,252 | 5,947 | 6,273 |
CANADA | Co-Products And Other [Member] | ||||
Net sales | 123 | 91 | 256 | 240 |
MEXICO | ||||
Net sales | 32,276 | 33,432 | 98,034 | 91,465 |
MEXICO | Specialty Ingredients [Member] | ||||
Net sales | 9,754 | 10,558 | 26,472 | 26,366 |
MEXICO | Core Ingredients [Member] | ||||
Net sales | 21,005 | 21,155 | 60,988 | 58,757 |
MEXICO | Co-Products And Other [Member] | ||||
Net sales | 1,517 | 1,719 | 10,574 | 6,342 |
Other Foreign Countries [Member] | ||||
Net sales | 25,979 | 25,244 | 85,448 | 88,080 |
Other Foreign Countries [Member] | Specialty Ingredients [Member] | ||||
Net sales | 17,682 | 17,661 | 57,511 | 54,979 |
Other Foreign Countries [Member] | Core Ingredients [Member] | ||||
Net sales | 8,152 | 7,444 | 27,366 | 20,273 |
Other Foreign Countries [Member] | Co-Products And Other [Member] | ||||
Net sales | $ 145 | $ 139 | $ 571 | $ 12,828 |
Earnings per Share (EPS) (Detai
Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Net income | $ 14,090 | $ 11,582 | $ 31,251 | $ 33,728 | $ 22,445 |
Less: earnings attributable to unvested shares | (57) | (69) | (112) | (188) | |
Net income available to participating common shareholders | $ 14,033 | $ 11,513 | $ 31,139 | $ 33,540 | |
Weighted average number of participating common and potential common shares outstanding: | |||||
Basic number of participating common shares outstanding (in shares) | 19,525,284 | 19,412,474 | 19,511,097 | 19,395,317 | |
Dilutive effect of stock equivalents (in shares) | 313,678 | 286,578 | 279,473 | 300,213 | |
Diluted number of weighted average participating common shares outstanding (in shares) | 19,838,962 | 19,699,052 | 19,790,570 | 19,695,530 | |
Earnings per participating common share: | |||||
Earnings per participating common share - Basic (in dollars per share) | $ 0.72 | $ 0.59 | $ 1.60 | $ 1.73 | |
Earnings per participating common share - Diluted (in dollars per share) | $ 0.71 | $ 0.58 | $ 1.57 | $ 1.70 | |
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 (in shares) | 431,751 | 395,850 | 465,956 | 382,215 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Dividends declared - per share (in dollars per share) | $ 0.48 | $ 0.48 | $ 1.44 | $ 1.44 |
Dividends declared – aggregate | $ 9,415 | $ 9,373 | $ 28,197 | $ 28,095 |
Dividends paid - per share (in dollars per share) | $ 0.48 | $ 0.48 | $ 1.44 | $ 1.44 |
Dividends paid – aggregate | $ 9,415 | $ 9,373 | $ 28,197 | $ 28,095 |
Stockholders' Equity _ Share-_3
Stockholders' Equity / Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Aug. 02, 2018 | May 01, 2018 | Apr. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 2,826 | 47,609 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 0 | $ 1.8 | ||||
Share Price | $ 44.38 | $ 39.28 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 196,198 | |||||
Stock Granted, Value, Share-based Compensation, Gross | 1.4 | |||||
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | 35,702 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 1.4 | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 11,736 | |||||
Performance shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 0.6 |
Stockholders' Equity _ Share-_4
Stockholders' Equity / Share-Based Compensation - Valuation Assumptions Used in the Black-Scholes Option-Pricing Model (Details) | 3 Months Ended |
Sep. 30, 2018$ / sharesRate | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 3 months |
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ / shares | $ 7.28 |
Stockholders' Equity _ Share-_5
Stockholders' Equity / Share-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense (benefit) | $ 1,151 | $ 711 | $ 4,143 | $ 2,996 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense (benefit) | 398 | 221 | 1,282 | 825 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense (benefit) | 580 | 378 | 1,860 | 1,290 |
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense (benefit) | 173 | 112 | 422 | 251 |
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation expense (benefit) | $ 0 | $ 0 | $ 579 | $ 630 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 51,509 | $ 48,445 |
Finished products | 103,244 | 83,634 |
Spare parts | 13,993 | 13,606 |
Inventories | 168,746 | 145,685 |
Inventory reserves | $ 13,402 | $ 16,168 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Creditable taxes (value added taxes) | $ 9,763 | $ 7,285 |
Vendor inventory deposits (prepaid) | 8,100 | 7,807 |
Prepaid income taxes | 11,793 | 3,394 |
Prepaid insurance | 2,130 | 2,492 |
Other | 2,496 | 3,991 |
Other current assets | $ 34,282 | $ 24,969 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 152,700 |
Add: Goodwill from acquisition | 67 |
Goodwill, ending balance | 152,767 |
Food, Health and Nutrition | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 129,417 |
Add: Goodwill from acquisition | 67 |
Goodwill, ending balance | 129,484 |
Industrial Specialties | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 23,283 |
Add: Goodwill from acquisition | 0 |
Goodwill, ending balance | 23,283 |
Other | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 0 |
Add: Goodwill from acquisition | 0 |
Goodwill, ending balance | $ 0 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles, net | $ 95,112 | $ 104,369 |
Deferred income taxes | 0 | 5,058 |
Deferred financing costs, net of accumulated amortization of $4,224 for 2018 and $3,902 for 2017 (see note 12) | 1,399 | 1,721 |
Other assets | 2,380 | 1,768 |
Total other assets, net | 3,779 | 8,547 |
Intangibles and other assets, net | 98,891 | 112,916 |
Accumulated amortization of debt issuance costs | 4,224 | 3,902 |
Developed technology and application patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles, net | 12,567 | 15,559 |
Accumulated amortization | $ 33,708 | 30,716 |
Developed technology and application patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 7 years | |
Developed technology and application patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles, net | $ 68,922 | 73,232 |
Accumulated amortization | $ 26,589 | 22,279 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Trade names and license agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles, net | $ 13,603 | 15,538 |
Accumulated amortization | $ 13,958 | 12,023 |
Trade names and license agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Trade names and license agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 20 years | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles, net | $ 20 | 40 |
Accumulated amortization | $ 1,313 | $ 1,293 |
Non-compete agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Non-compete agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Payroll related | $ 15,007 | $ 15,684 |
Taxes other than income taxes | 1,864 | 2,804 |
Benefits and pensions | 5,171 | 7,730 |
Freight and rebates | 9,888 | 3,937 |
Income taxes | 8,601 | 4,933 |
Restructuring and management transition reserve | 217 | 1,719 |
Other | 12,645 | 6,277 |
Other current liabilities | $ 53,393 | $ 43,084 |
Short-Term Borrowings, Long-T_3
Short-Term Borrowings, Long-Term Debt, and Interest Expense - Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital leases | $ 7 | $ 9 |
Total borrowings | 345,007 | 310,009 |
Less current portion of capital leases | 4 | 4 |
Long-term debt | 345,003 | 310,005 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Revolver borrowings under the credit facility due 2021 | $ 345,000 | $ 310,000 |
Short-Term Borrowings, Long-T_4
Short-Term Borrowings, Long-Term Debt, and Interest Expense - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 3,703,000 | $ 1,667,000 | $ 10,281,000 | $ 4,432,000 |
Total leverage ratio | 3.50 | 3.50 | ||
Interest coverage ratio | 3 | 3 | ||
Outstanding borrowings as floating rate debt | $ 345,000,000 | $ 345,000,000 | ||
Effect of one percentage point increase to interest expense | 3,500,000 | |||
Interest paid | 10,400,000 | 4,300,000 | ||
Deferred financing cost | 107,000 | 107,000 | 322,000 | 322,000 |
Investment Income, Interest | (18,000) | (21,000) | (50,000) | (41,000) |
Interest Costs Capitalized Adjustment | (364,000) | (123,000) | (1,023,000) | (278,000) |
Interest expense, net | 3,428,000 | $ 1,630,000 | 9,530,000 | $ 4,435,000 |
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | 700,000 | 700,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 450,000,000 | 450,000,000 | ||
Line of credit facility, additional borrowing capacity | 150,000,000 | 150,000,000 | ||
Line of credit facility, maximum borrowing capacity including higher borrowing capacity option | 600,000,000 | 600,000,000 | ||
Amount outstanding under line of credit | 345,000,000 | 345,000,000 | ||
Line of credit facility, remaining borrowing capacity | $ 104,300,000 | $ 104,300,000 | ||
Weighted average interest rate | 4.30% | 4.30% | ||
Letter of Credit | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | ||
Bridge Loan | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 |
Short-Term Borrowings, Long-T_5
Short-Term Borrowings, Long-Term Debt, and Interest Expense - Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 3,703 | $ 1,667 | $ 10,281 | $ 4,432 |
Deferred financing cost | 107 | 107 | 322 | 322 |
Interest income | (18) | (21) | (50) | (41) |
Less: amount capitalized for capital projects | (364) | (123) | (1,023) | (278) |
Total interest expense, net | $ 3,428 | $ 1,630 | $ 9,530 | $ 4,435 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred income taxes | $ 3,463 | $ 2,354 |
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Liability, Noncurrent | 0 | 12,095 |
Pension and post retirement liabilities | 9,501 | 8,886 |
Restructuring and management transition reserve | 0 | 210 |
Uncertain tax positions | 320 | 1,974 |
Environmental liabilities | 1,100 | 1,100 |
Other liabilities | 2,003 | 1,453 |
Other long-term liabilities | $ 16,387 | $ 28,072 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Effective income tax rate | 12.00% | 32.00% | |||
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 9.00% | ||||
Effective Income Tax Rate Reconciliation, Deduction, Other, Percent | 13.00% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||
Current Income Tax Expense (Benefit) | $ 7.4 | ||||
Tax Cuts And Jobs Act of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Liability, Noncurrent | 3.2 | $ 3.2 | |||
Deferred Tax Assets, Other | 4.2 | 4.2 | |||
Undistributed Earnings of Foreign Subsidiaries | 1.2 | $ 1.2 | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 1.9 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 1.1 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | $ 0.8 | ||||
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Percent | 4.00% | ||||
Estimate of decrease in unrecognized tax benefits | $ 0.5 | $ 0.5 | |||
Income taxes paid | $ 16.6 | $ 14 | |||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | (2.00%) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Environmental liabilities | $ 1,100 | $ 1,100 |
Nashville, TN | ||
Loss Contingencies [Line Items] | ||
Environmental liabilities | 1,100 | |
Nashville, TN | Minimum | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | 900 | |
Nashville, TN | Maximum | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 1,300 |
Pension Plans and Postretirem_3
Pension Plans and Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
United States | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 36 | $ 34 | $ 109 | $ 101 |
Interest cost | 53 | 56 | 158 | 168 |
Expected return on assets | (38) | (35) | (113) | (105) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized (gain) loss | (39) | (50) | (119) | (149) |
Amortization of net transition obligation | 0 | 0 | 0 | 0 |
Net periodic cost | 12 | 5 | 35 | 15 |
United States | Pension benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 24 | 25 | 71 | 76 |
Expected return on assets | (38) | (35) | (113) | (105) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized (gain) loss | 0 | 0 | 0 | 0 |
Amortization of net transition obligation | 0 | 0 | 0 | 0 |
Net periodic cost | (14) | (10) | (42) | (29) |
United States | Other benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 36 | 34 | 109 | 101 |
Interest cost | 29 | 31 | 87 | 92 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized (gain) loss | (39) | (50) | (119) | (149) |
Amortization of net transition obligation | 0 | 0 | 0 | 0 |
Net periodic cost | 26 | 15 | 77 | 44 |
CANADA | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 125 | 111 | 379 | 323 |
Interest cost | 142 | 146 | 432 | 425 |
Expected return on assets | (199) | (209) | (602) | (609) |
Amortization of prior service cost | 13 | 27 | 39 | 80 |
Amortization of unrecognized (gain) loss | 48 | 45 | 145 | 131 |
Amortization of net transition obligation | 6 | 6 | 18 | 17 |
Exchange rate changes | (65) | (35) | 80 | (136) |
Net periodic cost | 70 | 91 | 491 | 231 |
CANADA | Pension benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 110 | 98 | 332 | 285 |
Interest cost | 128 | 132 | 389 | 384 |
Expected return on assets | (199) | (209) | (602) | (609) |
Amortization of prior service cost | 13 | 27 | 39 | 80 |
Amortization of unrecognized (gain) loss | 47 | 45 | 142 | 131 |
Amortization of net transition obligation | 0 | 0 | 0 | 0 |
Exchange rate changes | (97) | (53) | 121 | (199) |
Net periodic cost | 2 | 40 | 421 | 72 |
CANADA | Other benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 15 | 13 | 47 | 38 |
Interest cost | 14 | 14 | 43 | 41 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of unrecognized (gain) loss | 1 | 0 | 3 | 0 |
Amortization of net transition obligation | 6 | 6 | 18 | 17 |
Exchange rate changes | 32 | 18 | (41) | 63 |
Net periodic cost | $ 68 | $ 51 | $ 70 | $ 159 |
Pension Plans and Postretirem_4
Pension Plans and Postretirement Benefits - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Pension benefits | United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Minimum contribution requirements | $ 0 |
Pension benefits | CANADA | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Minimum contribution requirements | 500,000 |
Other benefits | United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Employer contribution to contribution plan | $ 3,100,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 333,559 | $ 347,226 | $ 347,226 | ||
Other comprehensive loss before reclassifications | $ (47) | $ (155) | 143 | (220) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 293 | 0 | |
Other comprehensive income (loss), net of tax | (47) | (155) | 436 | (220) | (714) |
Ending balance | 340,669 | 340,669 | 333,559 | ||
Pension and Other Postretirement Adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,715) | (1,645) | (2,198) | (1,493) | (1,493) |
Other comprehensive loss before reclassifications | (47) | (103) | 143 | (255) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 293 | 0 | |
Other comprehensive income (loss), net of tax | (47) | (103) | 436 | (255) | |
Ending balance | (1,762) | (1,748) | (1,762) | (1,748) | (2,198) |
Changes in Fair Value of Effective Cash Flow Hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | 96 | 0 | 9 | 9 |
Other comprehensive loss before reclassifications | 0 | (52) | 0 | 35 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | (52) | 0 | 35 | |
Ending balance | 0 | 44 | 0 | 44 | 0 |
Accumulated Other Comprehensive Income/(Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,715) | (1,549) | (2,198) | (1,484) | (1,484) |
Other comprehensive income (loss), net of tax | 436 | (714) | |||
Ending balance | $ (1,762) | $ (1,704) | $ (1,762) | $ (1,704) | $ (2,198) |
Restructuring Costs (Details)
Restructuring Costs (Details) - Employee Severance and Benefits - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 217 | $ 1,929 |
Expense recorded | 0 | 0 |
Payments made | 0 | (1,712) |
Restructuring reserve, ending balance | $ 217 | $ 217 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 196,934 | $ 183,839 | $ 609,099 | $ 528,923 | |
EBITDA | 25,872 | 28,788 | 78,253 | 82,850 | |
Depreciation and amortization | 10,864 | 9,878 | 33,317 | 29,009 | |
Net income | 14,090 | 11,582 | 31,251 | 33,728 | $ 22,445 |
(Benefit) provision for income taxes | (2,510) | 5,698 | 4,155 | 15,678 | |
Interest expense, net | 3,428 | 1,630 | 9,530 | 4,435 | |
Food, Health and Nutrition | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 115,132 | 98,276 | 367,159 | 281,558 | |
EBITDA | 14,563 | 16,442 | 48,494 | 49,098 | |
Depreciation and amortization | 7,142 | 5,664 | 21,677 | 16,884 | |
Industrial Specialties | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 65,667 | 67,682 | 195,767 | 198,721 | |
EBITDA | 8,885 | 13,491 | 26,772 | 31,666 | |
Depreciation and amortization | 3,153 | 3,488 | 10,257 | 10,346 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 16,135 | 17,881 | 46,173 | 48,644 | |
EBITDA | 2,424 | (1,145) | 2,987 | 2,086 | |
Depreciation and amortization | $ 569 | $ 726 | $ 1,383 | $ 1,779 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Net Income to EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||
Net income | $ 14,090 | $ 11,582 | $ 31,251 | $ 33,728 | $ 22,445 |
(Benefit) provision for income taxes | (2,510) | 5,698 | 4,155 | 15,678 | |
Interest expense, net | 3,428 | 1,630 | 9,530 | 4,435 | |
Depreciation and amortization | 10,864 | 9,878 | 33,317 | 29,009 | |
EBITDA | $ 25,872 | $ 28,788 | $ 78,253 | $ 82,850 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 820,240 | $ 785,169 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Assets Held for Sale [Abstract] | |
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 20 |
Sale Leaseback Transaction, Historical Cost | $ 7 |