Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 21, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Innophos Holdings, Inc. | ||
Trading Symbol | IPHS | ||
Entity Central Index Key | 1,364,099 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity common stock, shares outstanding (in shares) | 19,613,085 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 20,197 | $ 28,782 |
Accounts receivable, net of allowance for doubtful accounts ($688 and $445) | 102,564 | 100,820 |
Inventories | 180,203 | 145,685 |
Other current assets | 24,094 | 24,969 |
Total current assets | 327,058 | 300,256 |
Property, plant and equipment, net | 240,235 | 219,297 |
Goodwill | 152,767 | 152,700 |
Intangibles and other assets, net | 95,094 | 112,916 |
Total assets | 815,154 | 785,169 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 4 |
Accounts payable, trade and other | 80,007 | 70,445 |
Other current liabilities | 49,993 | 43,084 |
Total current liabilities | 130,000 | 113,533 |
Long-term debt | 300,000 | 310,005 |
Other long-term liabilities | 49,639 | 28,072 |
Total liabilities | 479,639 | 451,610 |
Commitments and contingencies (note 16) | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, par value $.001 per share; authorized 100,000,000; issued 22,984,608 and 22,884,588; outstanding 19,613,085 and 19,537,872 shares | 20 | 20 |
Paid-in capital | 142,558 | 137,617 |
Common stock held in treasury, at cost (3,371,523 and 3,346,716 shares) | (176,862) | (176,246) |
Retained earnings | 372,815 | 374,366 |
Accumulated other comprehensive loss | (3,016) | (2,198) |
Total stockholders' equity | 335,515 | 333,559 |
Total liabilities and stockholders' equity | $ 815,154 | $ 785,169 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 22,984,608 | 22,884,588 |
Common stock, shares outstanding (in shares) | 19,613,085 | 19,537,872 |
Treasury stock, shares held (in shares) | 3,371,523 | 3,346,716 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Revenues | $ 801,842 | $ 722,024 | $ 725,345 | |
Cost of goods sold | 658,451 | 572,995 | 574,953 | |
Gross profit | 143,391 | 149,029 | 150,392 | |
Operating expenses: | ||||
Selling, general and administrative | 81,101 | 82,301 | 67,413 | |
Research & development expenses | 5,076 | 3,733 | 3,739 | |
Total operating expenses | 86,177 | 86,034 | 71,152 | |
Operating income | 57,214 | 62,995 | 79,240 | |
Interest expense, net | 13,523 | 7,008 | 7,669 | |
Foreign exchange (gains) losses | 528 | (578) | 1,111 | |
Other income, net | (69) | (72) | 142 | |
Income before income taxes | 43,232 | 56,637 | 70,318 | |
Provision for income taxes | 7,161 | 34,192 | 22,347 | |
Net income | 36,071 | 22,445 | 47,971 | |
Net income attributable to common shareholders | $ 35,940 | $ 22,369 | $ 47,683 | |
Income per share: | ||||
Basic (in dollars per share) | $ 1.84 | $ 1.15 | $ 2.47 | |
Diluted (in dollars per share) | $ 1.82 | $ 1.13 | $ 2.44 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 19,518,366 | 19,444,795 | 19,271,448 | |
Diluted (in shares) | 19,760,259 | 19,733,410 | 19,581,476 | |
Other comprehensive (loss) income, net of tax: | ||||
Change in interest rate swaps, (net of tax $256, $5, and $24) | $ (767) | $ (9) | $ (39) | |
Change in pension and post-retirement plans, (net of tax $390, $236, and ($749)) | (51) | (705) | 1,349 | |
Other comprehensive (loss) income, net of tax | (818) | [1] | (714) | 1,310 |
Comprehensive income | $ 35,253 | $ 21,731 | $ 49,281 | |
[1] | Includes the impact of ASU 2018-02, which transferred those amounts from accumulated other comprehensive income (loss) to retained earnings. See Notes 1 and 18 to the Consolidated Financial Statements. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax amounts related to changes in interest rate swaps | $ 256 | $ 5 | $ 24 |
Tax amounts related to changes in pension and post-retirement plans | $ 390 | $ 236 | $ (749) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings (Deficit) | Paid-in Capital/Common Stock Held in Treasury | Accumulated Other Comprehensive Income/(Loss) | |
Equity, beginning balance (in shares) at Dec. 31, 2015 | 19,290,000 | |||||
Equity, beginning balance at Dec. 31, 2015 | $ 333,260 | $ 19 | $ 378,321 | $ (42,286) | $ (2,794) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 47,971 | 47,971 | ||||
Other comprehensive income (loss), net of tax of $646 in 2018, $241 in 2017 and ($725) in 2016 | $ 1,310 | 1,310 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 91,029 | 192,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ (1,428) | (1,428) | ||||
Share-based compensation | 3,732 | 3,732 | ||||
Excess tax benefits from exercise of stock options | (9) | (9) | ||||
Common stock repurchases (in shares) | (27,000) | |||||
Common stock repurchases | (366) | (366) | ||||
Dividends declared ($1.92 per share)(d) | (37,244) | (37,244) | ||||
Equity, ending balance (in shares) at Dec. 31, 2016 | 19,455,000 | |||||
Equity, ending 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 (loss), net of tax of $646 in 2018, $241 in 2017 and ($725) in 2016 | $ (714) | (714) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 49,530 | 108,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ (899) | (900) | ||||
Effect of U.S. enacted Tax Cuts and Jobs Act | [1] | 293 | 293 | |||
Proceeds from stock award exercises and issuances | $ 1 | |||||
Share-based compensation | 3,823 | |||||
Excess tax benefits from exercise of stock options | 3,823 | |||||
Restricted stock forfeitures (in shares) | (25,000) | |||||
Restricted stock forfeitures | (1,195) | (1,195) | ||||
Dividends declared ($1.92 per share)(d) | (37,420) | (37,420) | ||||
Equity, ending balance (in shares) at Dec. 31, 2017 | 19,538,000 | |||||
Equity, ending balance at Dec. 31, 2017 | 333,559 | $ 20 | 374,366 | (38,629) | (2,198) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 36,071 | 36,071 | ||||
Other comprehensive income (loss), net of tax of $646 in 2018, $241 in 2017 and ($725) in 2016 | [1] | $ (818) | (818) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 18,010 | 100,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ (246) | (246) | ||||
Effect of U.S. enacted Tax Cuts and Jobs Act | [1] | (293) | (293) | |||
Share-based compensation | 5,187 | 5,187 | ||||
Restricted stock forfeitures (in shares) | (25,000) | |||||
Restricted stock forfeitures | (616) | (616) | ||||
Dividends declared ($1.92 per share)(d) | (37,689) | (37,689) | ||||
Equity, ending balance (in shares) at Dec. 31, 2018 | 19,613,000 | |||||
Equity, ending balance at Dec. 31, 2018 | 335,515 | $ 20 | 372,815 | $ (34,304) | $ (3,016) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Deferred Tax Liability, Intra-entity Transfer, Asset Other than Inventory | $ 360 | $ 360 | ||||
[1] | Includes the impact of ASU 2018-02, which transferred those amounts from accumulated other comprehensive income (loss) to retained earnings. See Notes 1 and 18 to the Consolidated Financial Statements. |
Statements of Stockholders' E_2
Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Other comprehensive income (loss), tax | $ 646 | $ 241 | $ (725) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 36,071 | $ 22,445 | $ 47,971 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Depreciation and amortization | 44,931 | 40,404 | 37,479 |
Amortization of deferred financing charges | 430 | 429 | 680 |
Deferred income tax provision | 9,628 | 10,411 | 9,534 |
Gain on sale of building | 0 | (153) | 0 |
Share-based compensation | 5,187 | 3,823 | 2,822 |
Changes in assets and liabilities: | |||
Contract termination fee received | 21,250 | 0 | 0 |
Accounts receivable | (1,744) | (11,020) | 2,058 |
Inventories | (34,518) | 5,749 | 44,012 |
Other current assets | 833 | 1,426 | (634) |
Accounts payable | 9,471 | (3,497) | 14,703 |
Other current liabilities | (3,411) | (5,751) | (18,926) |
Other long-term assets and liabilities, net | (14,516) | 9,723 | (590) |
Net cash provided from operating activities | 73,612 | 73,989 | 139,109 |
Cash flows used for investing activities: | |||
Capital expenditures | (56,745) | (34,859) | (36,599) |
Proceeds from sale leaseback | 22,775 | 0 | 0 |
Proceeds from sale of building | 0 | 1,028 | 0 |
Acquisition of businesses, net of cash acquired | 0 | (150,999) | 0 |
Net cash used for investing activities | (33,970) | (184,830) | (36,599) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options | 0 | 205 | 17 |
Long-term debt borrowings | 86,000 | 204,000 | 41,000 |
Long-term debt repayments | (96,000) | (79,000) | (69,002) |
Deferred financing costs | 0 | 0 | (1,495) |
Excess tax benefits from exercise of stock options | 0 | 0 | (9) |
Taxes paid related to net share settlement of equity awards | (616) | (1,195) | (366) |
Dividends paid | (37,611) | (37,468) | (37,217) |
Net cash (used for) provided by financing activities | (48,227) | 86,542 | (67,072) |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | (406) | 144 |
Net change in cash | (8,585) | (24,705) | 35,582 |
Cash and cash equivalents at beginning of period | 28,782 | 53,487 | 17,905 |
Cash and cash equivalents at end of period | 20,197 | 28,782 | 53,487 |
Accrued additions to plant assets | 9,400 | 9,570 | 2,942 |
Assets received as part of the supply agreement termination | $ 3,610 | $ 0 | $ 0 |
Basis of Statement Presentation
Basis of Statement Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Statement Presentation | Basis of Statement Presentation: Summary of Significant Accounting Policies Fiscal Year The Company's fiscal year end is December 31. Description of Business and Principles of Consolidation Innophos is a leading international producer of specialty ingredient solutions that deliver versatile benefits for the food, health, nutrition and industrial markets. The Company leverages its expertise in the science and technology of blending and formulating phosphate, mineral, enzyme and botanical based ingredients to help its customers offer products that are tasty, healthy, nutritious and economical. Headquartered in Cranbury, New Jersey, Innophos has manufacturing operations across the United States, in Canada, Mexico and China. Innophos combines more than a century of experience in specialty phosphate manufacturing with a broad range of other specialty nutritional ingredients. Utilizing its capabilities in consumer insight, research and product development and application expertise, it partners with its customers to provide differentiated product offerings that respond to consumer preferences and megatrends. The Company utilizes this collaborative approach in order to attempt to generate market share gains for its customers. Many of Innophos’ products are application-specific compounds engineered to meet customer performance requirements and are often critical to the taste, texture, performance or nutritional content of foods, beverages, pharmaceuticals, oral care products and other applications. For example, Innophos products act as flavor enhancers in beverages, electrolytes in sports drinks, texture additives in cheeses, leavening agents in baked goods, pharmaceutical excipients and cleaning agents in toothpaste, and they also provide a wide range of nutritional fortification solutions for food, beverage and nutritional supplement manufacturers. Innophos’ product offering includes a wide array of botanical, enzyme and mineral based nutritional ingredients. These products have various applications in the food, beverage and dietary supplement end markets and are manufactured to be readily digestible. Innophos’ 2017 acquisitions of Novel Ingredients and NutraGenesis substantially expanded Innophos’ portfolio of nutritional ingredients, which is a market that Innophos intends to continue to target for future growth. Innophos commenced operations as an independent company in August 2004 after purchasing its North American specialty phosphates business from affiliates of Rhodia, S.A., or Rhodia, which has been a part of Solvay S.A. since 2011. In November 2006, Innophos completed an initial public offering and listed its common stock for trading on the Nasdaq Global Select Market under the symbol “IPHS”. Innophos Holdings, Inc. is the parent of Innophos Investments Holdings, Inc., which owns 100% of Innophos, Inc; all are incorporated under the laws of the State of Delaware. All intercompany transactions are eliminated in consolidation. Certain prior year balances have been restated to conform to current year presentation. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires the use of judgments and estimates made by management. Actual results could differ from those estimates. Some of the more significant estimates pertaining to the Company include accruals for contingencies, distributor incentives and rebates, the valuation of inventories, the allowance for doubtful accounts, income tax valuation allowances, the recoverability of long-lived assets and goodwill impairment testing analysis and cash flows and assumptions used in the recognition and measurement of assets acquired in business combinations. Management routinely reviews its estimates and assumptions utilizing currently available information, changes in facts and circumstances, and historical experience. Error Correction During the fourth quarter, the Company identified an error associated with disclosing accrued capital expenditures and adjusting for them as non-cash investing activities in the consolidated statement of cash flows. The Company has evaluated the materiality of the error and concluded it was not material to the previously issued consolidated financial statements. However, the Company has elected to revise its consolidated cash flow statement for the period ending December 31, 2017 to correct the error. The following table presents the effect of the revision on the selected line items previously reported in the consolidated cash flows statement for the year ended December 31, 2017: December 31, 2017 December 31, 2017 Consolidated Statement of Cash Flows As reported Adjustment As revised Cash flows from operating activities Changes in assets and liabilities: Accounts payable $ 3,131 $ (6,628 ) $ (3,497 ) Net cash provided by operations $ 80,617 $ (6,628 ) $ 73,989 Cash flows used for investing activities Capital expenditures $ (41,487 ) $ 6,628 $ (34,859 ) Net cash provided used for investing activities $ (191,458 ) $ 6,628 $ (184,830 ) Supplemental disclosures of cash flow information: Non-cash investing and financing activities: Accrued additions to plant assets $ 9,570 $ 9,570 These accompanying notes to the consolidated financial statements reflect the impact of this revision. The revision of the Company’s interim consolidated statements of cash flows in the previously issued unaudited condensed consolidated financial statements for the three months ended March 31, 2018, six months ended June 30, 2018 and the nine months ended September 30, 2018 will be effected in connection with the Company’s filing of its Form 10-Q’s for the quarters ended March 31, June 30, and September 30, 2019, respectively. Cash Equivalents All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. Accounts Receivable and Allowances for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and does not bear interest. The collectability of accounts receivable is evaluated based on a combination of factors. Allowances for doubtful accounts is evaluated based on the length of time the receivables are past due, historical experience and financial wherewithal of the customer. In circumstances when it is probable that a specific customer is unable to meet its financial obligations, an allowance is recorded to reduce the receivable to the amount that is reasonably expected to be collected. Inventories Inventories are valued at the lower of cost or market. Cost is determined on the basis of the first-in, first-out method. These costs include raw materials, direct labor, manufacturing overhead and depreciation. Spare parts are included in inventory and are initially recorded at cost. Inventories, including spare parts, are evaluated for excess quantities, obsolescence or shelf-life expiration. This evaluation includes an analysis of historical sales levels by product and projections of future demand. To the extent management determines there are excess, obsolete or expired inventory quantities, valuation reserves are recorded against all or a portion of the value of the related products with the appropriate charge to cost of goods sold. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Major renewals and improvements are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. The cost and related accumulated depreciation of all property, plant and equipment retired or otherwise disposed of are eliminated from the accounts and any resulting gain or loss is reflected in net income. Interest is capitalized in connection with the construction of major renewals and improvements. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Depreciation is calculated on the straight-line basis over the estimated useful lives of the related assets, typically ranging from ten to twenty years for buildings and improvements, five to fifteen years for machinery and equipment, and three to seven years for capitalized software. Leasehold improvements are amortized over the lease term or the estimated useful life of the improvement, whichever is less. External direct costs in developing or obtaining internal use computer software and payroll, and payroll-related costs for employees dedicated solely to the project, to the extent of the time spent directly on the project and which they meet the requirements of ASC 350-40, are capitalized. Long-Lived Assets Under ASC 360,” Property, Plant, and Equipment ,” long-lived assets including property, plant and equipment and amortizable intangible assets are evaluated and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The review of these long-lived assets is performed at the individual asset level, asset group level, or the product group level depending on the lowest level for which identifiable cash flows are largely independent. The Company’s asset groupings or product groupings vary based on the interrelationship of the long-lived assets and the identifiable cash flows. For example, in certain instances, multiple manufacturing units may work with one another to produce the lowest identifiable cash flows or in other instances a stand-alone unit may produce the lowest level of identifiable cash flows. There are other instances where a stand-alone unit may produce multiple products and the lowest level of identifiable cash flows is at the product group level. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the undiscounted future cash flows expected to be generated by the asset, asset group or product group. When this comparison indicates that impairment must be recorded, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. The determination of whether or not assets are impaired and the corresponding useful lives of these long-lived assets requires significant judgment. The development of future cash flow projections requires management estimates related to forecasted sales and expected costs trends. To the extent that changes in business conditions occur or other management decisions are made that result in adjusted management projections or alternative use of the assets, impairment losses or accelerated depreciation may occur in future periods. Goodwill Goodwill represents the excess of the acquisition cost over the fair value of net assets of the businesses acquired. ASC 350, “ Intangibles—Goodwill and Other ,” requires periodic tests of the impairment of goodwill. ASC 350 requires a comparison, at least annually, of the net book value of the assets and liabilities associated with a reporting unit, including goodwill, with the fair value of the reporting unit, which corresponds to the discounted cash flows of the reporting unit, in the absence of an active market. The development of future cash flow projections requires management estimates related to forecasted sales and expected costs trends. To the extent that changes in business conditions occur or other management decisions are made that result in adjusted management projections, impairment losses may occur in future periods. If the entity determines that it's more likely than not that the fair value of a reporting unit exceeds the carrying amount, then determining an impairment charge is unnecessary. When the carrying value of the reporting unit exceeds the fair value amount, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of these assets, not to exceed the carrying value of the goodwill. The annual goodwill impairment review is conducted during the fourth quarter of each year. Other Intangible Assets Other intangible assets, which consist of developed technology, customer relationships, trade names, a non-compete agreement, patents, licenses and software, are amortized on a straight-line basis over their estimated useful lives which can be up to twenty years. Revenue Recognition Revenue from sales of the Company's products to its customers is 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. In the United States and Canada, the Company records estimated reductions to revenue for distributor incentives and customer incentives such as rebates, at the time of the initial sale. Distributor and customer incentives in Mexico are immaterial to the financial statements. The estimated reductions are based on the sales terms, historical experience and trend analysis. Accruals for distributor incentives are reflected as a direct reduction to accounts receivable and accruals for rebates are recorded as accrued expenses. This analysis requires a significant amount of judgment from management. Changes in the assumptions used to calculate these estimates or changes resulting from actual results are recorded against revenue in the period in which the change occurs. Shipping and Handling Fees and Costs and Advertising Expenses Shipping and handling fees and costs invoiced to customers are included in Net sales. Shipping and handling fees and costs incurred by the Company are included in Cost of goods sold. Advertising expenses, which are not significant, are expensed as incurred. Foreign Currency Translation The U.S. dollar is the functional currency of the Canadian and Mexican operations. Accordingly, these operations monetary assets and liabilities are remeasured at current exchange rates, non-monetary assets and liabilities are remeasured at historical exchange rates. Revenue and expenses related to monetary assets and liabilities are remeasured at average exchange rates and at historical exchange rates for the related revenue and expenses of non-monetary assets and liabilities. All translation gains and losses are included in net income. Research and Development Expenses Research and development expenditures, including expenditures relating to the development of new products and processes and significant improvements and refinements to existing products, are expensed as incurred. Employee Termination Benefits The Company does not have a written severance plan for its Mexican operations, nor does it offer similar termination benefits to affected employees in all Mexican restructuring initiatives. However, Mexican law requires payment of certain minimum termination benefits. Accordingly, in situations where minimum statutory termination benefits must be paid to the affected employees, the Company records employee severance costs associated with these activities in accordance with ASC 712, Compensation – Nonretirement Post Employment Benefits . The Company does have a written severance plan which is in accordance with ASC 712 for its U.S. and Canadian operations. The Company has an accrued obligation for post-employment benefits for U.S. and Canadian operations when the amounts are probable and reasonably estimated. In all other situations where the Company pays out termination benefits, including supplemental benefits paid in excess of statutory minimum amounts and benefits offered to affected employees based on management’s discretion, the Company records these termination costs in accordance with ASC 420, Exit or Disposal Cost Obligations . The timing of the recognition of charges for employee severance costs depends on whether the affected employees are required to render service beyond their legal notification period in order to receive the benefits. If affected employees are required to render service beyond their legal notification period, charges are recognized ratably over the future service period. Otherwise, charges are recognized when a specific plan has been confirmed by management and required employee communication requirements have been met. Legal Costs The Company expenses legal costs as incurred, including those legal costs which may be incurred in connection with a loss contingency. Income Taxes The Company’s significant subsidiaries are the Company's United States subsidiaries which file a consolidated U.S. tax return, the Company's Mexican subsidiaries which file separate tax returns since 2016, the Company's Canadian subsidiary which files a separate Canadian tax return and the Netherlands files a fiscal unity return for certain Netherlands subsidiaries. The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases using enacted tax rates applied to those differences. Deferred tax assets are assessed for realizability and a valuation allowance is provided if a portion of the associated tax benefit is not expected to be realized. If any material uncertain tax positions arise, the Company’s policy is to accrue associated penalties in selling, general and administrative expenses and to accrue interest as part of net interest expense. Other than the assessments disclosed in Note 15, Income Taxes, as of December 31, 2018, no significant 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. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (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 with a one-time mandatory transition or toll tax on post-1986 undistributed foreign earnings and profits of U.S. subsidiaries through the year ended December 31, 2017. Starting in 2018, the global intangible low-taxed income, or 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 account for GILTI tax in the period in which it is incurred. Refer to Note 15 for additional information. Environmental Costs Environmental liabilities are recorded undiscounted when it is probable that these liabilities have been incurred and the amounts can be reasonably estimated. These liabilities are estimated based on an assessment of many factors, including the amount of remediation costs, the timing and extent of remediation actions required by the applicable governmental authorities, and the amount of the Company’s liability after considering the liability and financial resources of other potentially responsible parties. Generally, the recording of these accruals coincides with the assertion of a claim or litigation, completion of a feasibility study or a commitment to a formal plan of action. Anticipated recoveries from third parties are recorded as a reduction of expense only when such amounts are realized. Any insurance receivables would be recorded gross of the estimated liability. Comprehensive Income (Loss) Comprehensive income (loss) is composed of net income (loss), adjusted for changes in comprehensive income items such as changes in defined benefit pension plan funded status. Share-based Compensation The Company recognizes compensation expense for its Long-Term Incentive Plans (LTIP). Under applicable accounting standards, the fair value of share-based compensation is determined at the grant date and the recognition of the related expense is recorded over the period in which the share-based compensation vests. Refer to Note 12 for additional information. Business Combinations An acquired business is included in the consolidated financial statements upon obtaining control of the acquired assets. Assets acquired and liabilities assumed are recognized at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recognized as goodwill. 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 statement of cash flows. 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 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 had no impact. 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 adopted this standard on January 1, 2018, and there was no 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 15 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)), and associated ASUs related to 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, or ROU, 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 addition, entities can use an optional transition method to apply the transition requirements in Topic 842 at the Topic’s effective date. The Company will elect the transition method to adopt the new leases standard at the adoption date of the new standard on January 1, 2019. The company has a cross-functional team in place to evaluate and implement the new guidance and has substantially completed its evaluation. All of the leases classified by the Company are Operating leases, and the Company estimates it will record ROU Assets and Lease Liabilities of approximately $45.0 million to $50.0 million at January 1, 2019. These leases primarily cover rail cars, inventory tanks, building, equipment and fleet cars. In addition, the company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, does not require reassessment of prior conclusions related to contracts containing a lease, lease classification, and initial direct lease costs. As an accounting policy election, the company will exclude short-term leases (term of 12 months or less) from the balance sheet and will account for non-lease and lease components in a contract as a single component for most asset classes. The impact to the company's Consolidated Statement of Operations and Consolidated Statement of Cash Flows is expected to not be material. 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. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for postretirement health care benefits. New disclosures include the interest crediting rates for cash balance plans, and an explanation of significant gains and losses related to changes in benefit obligations. The new standard is effective for fiscal years beginning after December 15, 2020, and must be applied retrospectively for all periods presented. Early adoption is permitted. The Company does not |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 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, New Jersey. 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 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 year ended December 31, 2017, the Company's results of operations included revenues of $36.7 million and a $2.3 million net loss attributable to Novel Ingredients and NutraGenesis. Acquisition related costs of $3.1 million (excluding integration costs of $2.1 million) were expensed as incurred and were included in selling, general, and administrative expense. 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 acquisitions 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 estimated 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 ("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. Year Ended December 31, 2017 2016 Revenues $ 792,600 $ 812,447 Net income $ 22,011 $ 41,711 Income per common share - Basic $ 1.13 $ 2.16 Income per common share - Diluted $ 1.12 $ 2.13 These amounts have been calculated after applying the Company's accounting policies and adjusting the results of Novel Ingredients and NutraGenesis to reflect the additional depreciation and amortization expense that would have been charged assuming the 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 acquisitions was applied on January 1, 2016. Depreciation and amortization expense of approximately $5.0 million and interest expense of approximately $4.4 million related to the above were included in the years ended December 31, 2017 and December 31, 2016. Further, the above pro forma amounts include a fair value adjustment to inventory of $4.3 million applied on January 1, 2016. The year ended December 31, 2017 includes non-recurring transaction costs of approximately $3.1 million. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 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. There were no significant changes to its estimates of variable consideration upon adoption. 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. Year ended December 31, 2018 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 429,679 $ 24,386 $ 35,530 $ 77,469 $ 567,064 Core Ingredients 55,780 7,926 84,101 36,065 183,872 Co-Products & Other 32,323 354 17,658 571 50,906 Total $ 517,782 $ 32,666 $ 137,289 $ 114,105 $ 801,842 Year ended December 31, 2017 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 358,816 $ 23,435 $ 37,365 $ 70,640 $ 490,256 Core Ingredients 56,841 8,224 78,757 30,997 174,819 Co-Products & Other 34,514 334 8,994 13,107 56,949 Total $ 450,171 $ 31,993 $ 125,116 $ 114,744 $ 722,024 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 phosphorous fortification in food and beverages; • moisture and color retention in seafood, poultry, and meat; • mineral, enzyme and botanical source 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. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories: Inventories consist of the following: 2018 2017 Raw materials $ 46,147 $ 48,445 Finished products 119,407 83,634 Spare parts 14,649 13,606 $ 180,203 $ 145,685 Inventory reserves for excess quantities, obsolescence or shelf-life expiration as of December 31, 2018 and December 31, 2017 were $14,327 and $16,168 , respectively. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets: Other current assets consist of the following: 2018 2017 Creditable taxes (value added taxes) $ 11,944 $ 7,285 Vendor inventory deposits (prepaid) 454 7,807 Prepaid income taxes 6,658 3,394 Prepaid insurance 2,605 2,492 Other 2,433 3,991 $ 24,094 $ 24,969 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net: Property, plant and equipment, at cost, consist of the following: 2018 2017 Typical Useful life (years) Gross Accumulated Depreciation Net Book Value Gross Accumulated Depreciation Net Book Value Land - $ 18,453 $ — $ 18,453 $ 18,453 $ — $ 18,453 Land improvements 10-20 28,260 10,019 18,241 11,861 9,855 2,006 Buildings and improvements (a) 10-20 99,326 54,795 44,531 104,004 54,571 49,433 Machinery & equipment 5-15 551,226 410,521 140,705 501,908 388,905 113,003 Capitalized software 3-7 28,554 $ 26,427 $ 2,127 $ 28,260 $ 23,511 $ 4,749 Construction-in-progress - 16,178 — 16,178 31,653 — 31,653 $ 741,997 $ 501,762 $ 240,235 $ 696,139 $ 476,842 $ 219,297 Depreciation expense was $30,723 , $32,023 and $30,255 in 2018 , 2017 and 2016 , respectively. (a) In December 2018, the Company sold its Chicago Heights, IL warehouse for $23.0 million . Under the agreement, the Company is leasing back the property from the purchaser over a period of 20 years. The Company is accounting for the leaseback as an operating lease. The gain of $15.9 million realized in this transaction has been deferred. As of December 31, 2018 $0.8 is recorded in Other current liabilities and $15.1 million in Other long-term liabilities. On the transition to ASC 842 effective January 1, 2019, the deferred gain will be credited to Retained Earnings. The annual rent for the initial period of 5 years is approximately $1.5 million plus taxes and subsequently will increase 10% every five years through the end of the lease. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill: Food, Health and Nutrition Industrial Specialties Other Total Balance: December 31, 2016 $ 61,090 $ 23,283 $ — $ 84,373 Add: Goodwill from Novel Ingredients acquisition 54,007 — — 54,007 Add: Goodwill from NutraGenesis acquisition 14,320 — — 14,320 Balance: December 31, 2017 $ 129,417 $ 23,283 $ — $ 152,700 Add: Goodwill from NutraGenesis acquisition 67 67 Balance: December 31, 2018 $ 129,484 $ 23,283 $ — $ 152,767 |
Intangibles and Other Assets, n
Intangibles and Other Assets, net | 12 Months Ended |
Dec. 31, 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) 2018 2017 Developed technology and application patents, net of accumulated amortization of $34,669 for 2018 and $30,716 for 2017 7-20 11,606 15,559 Customer relationships, net of accumulated amortization of $28,032 for 2018 and $22,279 for 2017 5-20 67,479 73,232 Trade names and license agreements, net of accumulated amortization of $14,599 for 2018 and $12,023 for 2017 5-20 12,962 15,538 Non-compete agreement, net of accumulated amortization of $1,319 for 2018 and $1,293 for 2017 3-10 14 40 Total intangibles $ 92,061 $ 104,369 Deferred income taxes $ — $ 5,058 Deferred financing costs, net of accumulated amortization of $4,331 for 2018 and $3,902 for 2017 (see note 11) 1,291 1,721 Other assets 1,742 1,768 Total other assets $ 3,033 $ 8,547 $ 95,094 $ 112,916 Amortization expense for intangibles was $14,208 , $8,381 and $7,222 in 2018 , 2017 and 2016 , respectively. Anticipated amortization expense for the next five years related to intangibles is as follows: 2019 2020 2021 2022 2023 Intangible amortization expense $ 10,639 $ 10,021 $ 9,383 $ 8,910 $ 7,498 The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities: Other current liabilities consist of the following: 2018 2017 Payroll related $ 15,656 $ 15,684 Taxes other than income taxes 3,071 2,804 Benefits and pensions 5,680 7,730 Freight and rebates 6,431 3,937 Income taxes 1,355 4,933 Restructuring reserve 217 1,719 Deferred gain on sale leaseback transaction (a) 790 — Deferred contract termination fee (b) 9,489 — Other 7,304 6,277 $ 49,993 $ 43,084 (a) See Note 6 to the Consolidated Financial Statements for further details. (b) See Note 22 to the Consolidated Financial Statements for further details. Other Long-Term Liabilities: Other long-term liabilities consist of the following: 2018 2017 Deferred income taxes $ 5,113 $ 2,354 Long term portion of U.S. transition tax — 12,095 Pension and post retirement liabilities 9,238 8,886 Restructuring reserve — 210 Uncertain tax positions 320 1,974 Environmental liabilities 1,100 1,100 Deferred gain on sale leaseback transaction (a) 15,073 — Deferred contract termination fee (b) 15,371 — Other liabilities 3,424 1,453 $ 49,639 $ 28,072 (a) See Note 6 to the Consolidated Financial Statements for further details. (b) See Note 22 to the Consolidated Financial Statements for further details. |
Short-Term Borrowings, Long-Ter
Short-Term Borrowings, Long-Term Debt, and Interest Expense | 12 Months Ended |
Dec. 31, 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: 2018 2017 Revolver borrowings under the credit facility due 2021 $ 300,000 $ 310,000 Capital leases — 9 Total borrowings $ 300,000 $ 310,009 Less current portion — 4 Long-term debt $ 300,000 $ 310,005 In December 2016, Innophos Holdings, Inc. and certain of its directly and/or indirectly wholly-owned subsidiaries (referred to in this note as the "Company") entered into a senior secured credit facility, or Credit Agreement, with a group of lenders, or the Lenders, increasing the Company's borrowing capacity. The Credit Agreement replaces the term loan of $100.0 million and revolving line of credit under the prior facility with a $450.0 million revolving line of credit, including a $20.0 million letter of credit sub-facility and a $20.0 million swingline loan facility, all maturing on December 22, 2021. Interest accruing on amounts borrowed under the revolving line is based on an applicable margin over LIBOR (London Interbank Offered Rate) or bank base rate, ranging from 100 to 225 basis points for LIBOR and 0 to 125 basis points for base rate loans, in each case with loan period and interest alternative as chosen by the Company, which margin is adjusted quarterly depending on a total leverage ratio (as computed under the Credit Agreement) for the period in question. Commitment fees on the unused revolving line range from 12.5 to 37.5 basis points, depending on total leverage ratio (as computed under the Credit Agreement) for the period in question. The current applicable margin for LIBOR based loans, base rate loans and the commitment fee are 200 , 100 and 32.5 basis points, respectively. The Credit Agreement also provides for possible additional revolving indebtedness under an incremental facility of up to $150.0 million (for an aggregate of revolving capacity up to $600.0 million ) upon future request by the Company to existing Lenders (and depending on their consent) or from other willing financial institutions invited by the Company and reasonably acceptable to the administrative agent to join in the Credit Agreement. This revolving credit facility increase, if implemented, may provide for higher applicable margins to either the increased portion or possibly the entire revolving credit facility, with limitations, for interest rates than those in effect for the original revolving commitments under the Credit Agreement. The obligations of the Company under the Credit Agreement are secured by first priority liens on substantially all the United States assets of the Company, as well as a pledge of 65% of the voting equity of entities holding the Company's foreign subsidiaries. The Credit Agreement contains representations given to the Lenders about the nature and status of the Company's business that serve as conditions to future borrowings, and affirmative, as well as negative, covenants typical of credit facilities of this kind that prohibit or limit a variety of actions by the Company and its subsidiaries generally without the Lenders’ approval. These include covenants that affect the ability of those entities, among other things, to (a) incur or guarantee indebtedness, (b) create liens, (c) enter into mergers, recapitalizations or assets purchases or sales, (d) change names, (e) make certain changes to their business, (f) make restricted payments that include dividends, purchases and redemptions of equity (g) make advances, investments or loans, (h) effect sales and leasebacks or (i) enter into transactions with affiliates, (j) allow negative pledges or limitations on the repayment abilities of subsidiaries or (k) amend subordinated debt. However, subject to continued compliance with the overall leverage restrictions described in more detail below, the Company retains flexibility under the Credit Agreement to develop its business and achieve strategic goals by, among other things, being permitted to take on additional debt, pay dividends (as long as the Total Leverage Ratio shall be .25 less than the then applicable level described below), re-acquire equity and make domestic acquisitions. Foreign acquisitions and investments are also permitted up to a fixed limit which is set initially at $213.0 million and can increase with ongoing cash generation up to as high as $425.0 million . Among its affirmative covenants, the Credit Agreement 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 December 31, 2018 , the Accessible Borrowing Availability was $149.3 million and the Total Leverage Ratio and Interest Coverage Ratio calculated in accordance with the agreement were 2.40 and 9.55 , respectively. As of December 31, 2018 , the Company was in full compliance with all debt covenant requirements. The Credit Agreement provides for “Events of Default” that, unless waived, can or will lead to acceleration of obligations upon the occurrence, continuation and/or notice, as applicable, of specified events typical of credit facilities of this kind. These include (a) failures to pay interest or principal on loans, (b) misrepresentations, (c) failures to observe covenants, (d) cross defaults of other indebtedness in excess of $20.0 million , (e) uninsured and unsatisfied judgments in excess of $20.0 million or certain orders or injunctions, (f) bankruptcy and insolvency events, (g) events leading to aggregate liability under the Employee Retirement Income Security Act of 1974 (ERISA) in excess of $20.0 million , (h) changes of control, (i) invalidity of credit support /security agreements, and (i) certain disadvantageous changes in Credit Agreement debt compared to subordinated debt. Fees and expenses incurred in 2016 with the Credit Agreement were approximately $1.5 million . This amount was recorded as deferred financing costs and is being amortized over the term of the Credit Agreement using the effective interest method. As of December 31, 2018 , $300.0 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 149.3 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 4.7% . In December 2018, the Company entered into an interest rate swap, swapping the LIBOR exposure of $150.0 million of floating rate debt, which is currently outstanding under our Credit Agreement, to a fixed rate to maturity obligation of 2.677% expiring in November 2021. The fair value of this interest rate swap is a liability of approximately $1.0 million as of December 31, 2018 and is included in other long-term liabilities. The Company manages interest rate risk by balancing the amount of fixed-rate and floating-rate debt to the extent practicable consistent with the credit status. Innophos and its subsidiaries and affiliates may from time to time seek to acquire or otherwise retire outstanding debt through public or privately negotiated transactions, exchanges or otherwise. Debt repurchases or exchanges, if any, will depend on prevailing market conditions, Company liquidity requirements, restrictive financial covenants and other factors applicable at the time. The amounts involved may be material. Total interest paid by the Company for all indebtedness for 2018 , 2017 and 2016 was $14.4 million , $6.8 million and $8.0 million , respectively. Interest expense, net consists of the following: Year Ended December 31, 2018 2017 2016 Interest expense $ 14,250 $ 7,148 $ 7,210 Deferred financing cost 430 429 680 Interest income (75 ) (124 ) (53 ) Less: amount capitalized for capital projects (1,082 ) (445 ) (168 ) Total interest expense, net $ 13,523 $ 7,008 $ 7,669 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Current Liabilities: Other current liabilities consist of the following: 2018 2017 Payroll related $ 15,656 $ 15,684 Taxes other than income taxes 3,071 2,804 Benefits and pensions 5,680 7,730 Freight and rebates 6,431 3,937 Income taxes 1,355 4,933 Restructuring reserve 217 1,719 Deferred gain on sale leaseback transaction (a) 790 — Deferred contract termination fee (b) 9,489 — Other 7,304 6,277 $ 49,993 $ 43,084 (a) See Note 6 to the Consolidated Financial Statements for further details. (b) See Note 22 to the Consolidated Financial Statements for further details. Other Long-Term Liabilities: Other long-term liabilities consist of the following: 2018 2017 Deferred income taxes $ 5,113 $ 2,354 Long term portion of U.S. transition tax — 12,095 Pension and post retirement liabilities 9,238 8,886 Restructuring reserve — 210 Uncertain tax positions 320 1,974 Environmental liabilities 1,100 1,100 Deferred gain on sale leaseback transaction (a) 15,073 — Deferred contract termination fee (b) 15,371 — Other liabilities 3,424 1,453 $ 49,639 $ 28,072 (a) See Note 6 to the Consolidated Financial Statements for further details. (b) See Note 22 to the Consolidated Financial Statements for further details. |
Stockholders' Equity _ Stock-Ba
Stockholders' Equity / Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity / Stock-Based Compensation | Stockholders’ Equity / Stock-Based Compensation: The Company's compensation programs include share-based payments. The primary share-based awards and their general terms and conditions currently in effect are as follows: • Restricted stock grants, which entitle the holder to receive, at the end of each vesting term, a specified number of shares of the Company's common stock, and which also entitle the holder to receive dividends paid on such grants throughout the vesting period. Compensation expense is amortized on a straight-line basis over the requisite vesting period, generally three years, and accelerated for those employees that are retirement eligible during the vesting period. • Stock options, which entitle the holder to purchase, after the end of a vesting term, a specified number of shares of the Company’s common stock at an exercise price per share set equal to the market price of the Company’s common stock on the date of grant. The stock options generally vest annually over three years with a ten year term from date of grant. • Performance share awards which entitle the holder to receive, at the end of a performance cycle, a number of shares of the Company’s common stock, within a range of shares from zero to a specified maximum (generally 200% of initial share award), calculated using a combination of performance indicators as defined by reference to the Company’s own activities. The performance shares generally vest at the end of a 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 dividends will accrue over the performance period and are paid on performance share awards when vested and distributed. • Annual stock retainer grants, which entitle independent members of the Board of Directors to receive a number of shares of the Company’s common stock, which immediately vest, equal to a fixed retainer value. The following table summarizes the components of stock-based compensation expense, all of which has been classified as selling, general and administrative expense: Year Ended December 31, 2018 2017 2016 Stock options $ 1,754 $ 1,068 $ 994 Restricted stock 2,626 1,701 1,490 Performance shares 228 424 (257 ) Stock grants 579 630 595 Total stock-based compensation expense (a) $ 5,187 $ 3,823 $ 2,822 (a) 2016 includes accelerated stock-based compensation expense adjustments of $(254) , due to management transition. A summary of restricted stock activity during the three years ended December 31, 2018 , is presented below: Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2016 125,331 $ 40.85 Granted 88,836 31.47 Released (7,796 ) 53.18 Forfeited / Surrendered (29,920 ) 40.79 Outstanding at December 31, 2016 176,451 $ 35.27 Outstanding at January 1, 2017 176,451 $ 35.27 Granted 30,723 52.41 Released (32,171 ) 34.71 Forfeited / Surrendered (24,424 ) 36.42 Outstanding at December 31, 2017 150,579 $ 38.18 Outstanding at January 1, 2018 150,579 $ 38.18 Granted 56,311 39.20 Released (33,339 ) 36.38 Forfeited / Surrendered (24,936 ) 35.89 Outstanding at December 31, 2018 148,615 $ 39.35 A summary of stock option activity during the three years ended December 31, 2018 , is presented below: Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Per Option Outstanding at January 1, 2016 691,922 $ 34.33 Granted 400,215 31.18 $ 4.62 Forfeited / Expired / Surrendered (260,913 ) 33.17 Exercised (91,029 ) 19.55 Outstanding at December 31, 2016 740,195 $ 34.84 Exercisable at December 31, 2016 368,159 $ 37.06 Outstanding at January 1, 2017 740,195 $ 34.84 Granted 102,607 52.43 $ 11.54 Forfeited / Expired / Surrendered (175,767 ) 37.24 Exercised (49,530 ) 23.40 Outstanding at December 31, 2017 617,505 $ 38.00 Exercisable at December 31, 2017 343,849 $ 38.05 Outstanding at January 1, 2018 617,505 $ 38.00 Granted 196,198 39.28 $ 7.28 Forfeited / Expired / Surrendered (132,684 ) 40.63 Exercised (18,010 ) 25.02 Outstanding at December 31, 2018 663,009 $ 38.21 Exercisable at December 31, 2018 388,686 $ 37.23 The fair value of the options granted during 2018 , 2017 and 2016 was determined using the Black-Scholes option-pricing model. The assumptions used in the Black-Scholes option-pricing model were as follows: Non-qualified stock options Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Expected volatility 29.7 % 31.3 % 33.8 % Dividend yield 4.6 % 3.6 % 6.6 % Risk-free interest rate 2.6 % 2.1 % 1.4 % Expected term in years 6.3 6.6 6.6 Weighted average grant date fair value of stock options $ 7.28 $ 11.54 $ 4.62 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 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. A summary of performance share activity is presented below: Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding at January 1, 2016 32,417 $ 37.58 Granted (at targeted return on invested capital and contribution margin growth) — — Forfeited — — Vested (12,401 ) 54.46 Adjustment to estimate of shares to be earned (20,016 ) 27.12 Outstanding at December 31, 2016 — $ — Outstanding at January 1, 2017 — $ — Granted (at targeted return on invested capital and contribution margin growth) 22,958 52.44 Forfeited (2,083 ) 52.44 Vested (353 ) 49.54 Adjustment to estimate of shares to be earned 401 49.54 Outstanding at December 31, 2017 20,923 $ 52.43 Outstanding at January 1, 2018 20,923 $ 52.43 Granted (at targeted return on invested capital and contribution margin growth) 35,702 39.28 Forfeited (1,023 ) 40.90 Vested — — Adjustment to estimate of shares to be earned (30,984 ) $ 43.19 Outstanding at December 31, 2018 24,618 $ 45.47 The total intrinsic value of options exercised and stock grants during 2018 , 2017 and 2016 was $3.5 million , $4.2 million and $5.9 million , respectively. The aggregate intrinsic value of stock options outstanding and exercisable at December 31, 2018 was $0.0 million and $0.0 million , respectively. The total remaining unrecognized compensation expense related to share-based payments is as follows: Unrecognized Compensation Expense Restricted Stock Stock Options Performance Based Amount $ 3,151 $ 1,404 $ 193 Weighted-average years to be recognized 1.3 1.8 1.7 |
Earnings per share (EPS)
Earnings per share (EPS) | 12 Months Ended |
Dec. 31, 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 and related guidance, which requires two calculations of earnings per share (EPS) to be disclosed: basic EPS and diluted EPS. Under ASC Subtopic 260-10-45, as of January 1, 2009 unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as 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: Year Ended December 31, 2018 2017 2016 Net income 36,071 22,445 47,971 Less: earnings attributable to unvested shares (131 ) (76 ) (288 ) Net income available to common shareholders $ 35,940 $ 22,369 $ 47,683 Weighted average number of common and potential common shares outstanding: Basic number of common shares outstanding 19,518,366 19,444,795 19,271,448 Dilutive effect of stock equivalents 241,893 288,615 310,028 Diluted number of weighted average common shares outstanding 19,760,259 19,733,410 19,581,476 Earnings per common share: Earnings per common share—Basic $ 1.84 $ 1.15 $ 2.47 Earnings per common share—Diluted $ 1.82 $ 1.13 $ 2.44 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 are 488,987 , 377,361 and 445,303 for the years ended 2018 , 2017 and 2016 , respectively. |
Pension Plans and Post-retireme
Pension Plans and Post-retirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans and Post-retirement Benefits | Pension Plans and Post-retirement Benefits: Innophos maintains both defined contribution plans and noncontributory defined benefit pension plans that together cover substantially all U.S. and Canadian employees. In the United States, salaried and hourly employees are covered by a defined contribution plan with a 401(k) feature. The plan provides for employee contributions, company matching contributions, and an age-weighted annual company contribution to eligible employees. Union-represented hourly employees, at the Company's Nashville, Tennessee site, are covered by a traditional defined benefit plan providing benefits based on years of service and final average pay. On April 26, 2007, the Company and the Union for the hourly employees at its Nashville, Tennessee facility agreed that it would freeze its defined benefit pension plan (the “Plan”) as of August 1, 2007. The accrual of additional benefits or increase in the current level of benefits under the Plan ceased as of August 1, 2007, after which the Nashville union employees now participate in the Company’s existing non-contributory defined contribution benefit plan. All plans were established by Innophos in 2004. In Canada, salaried employees are covered by defined contribution plans which provide for company contributions as a percent of pay, employee contributions, and company matching contributions. Union-represented hourly employees are covered by a defined benefit plan providing benefits based on a negotiated benefit level and years of service. The defined contribution plans were established by the Company in 2004; the defined benefit plan for union-represented hourly employees is a continuation of the Rhodia Canada Inc.’s pension plan for its Port Maitland, Ontario Canada union employees, which was included in the acquisition of the Phosphates Business from Rhodia on August 13, 2004. Innophos also has other post-retirement benefit plans covering substantially all of its U.S. and Canadian employees. Certain employee groups covered under the plans do not receive benefits post-age 65. In the United States, the health care plans are contributory with participants’ contributions adjusted annually, and limits on the Company’s share of the costs; the life insurance plans are noncontributory. The effects of the Medicare Prescription Drug, Improvement and Modernization Act of 2003, or the Act, are not significant. In Canada, the plans are non-contributory. Innophos uses a December 31 measurement date for all of its plans. For the purposes of the following schedules, beginning of the year is January 1. The weighted average discount rate at the measurement dates for the Company’s defined benefit pension plans and the post-retirement benefit plans is developed using a spot interest yield curve based upon a broad population of corporate bonds rated AA or higher, adjusted to match the duration of each plan’s projected benefit payment stream. The expected return is based on a specific asset mix, active management, rebalancing among diversified asset classes within the portfolio, and a consistent underlying inflation assumption to calculate the appropriate long-term expected investment return. As a sensitivity measure, the effect of a 25 basis-point decrease in the Company's discount rate assumption would increase its net periodic benefit cost for its pension and post-retirement plans by approximately $51 . A 1% decrease in the Company's expected rate of return on plan assets would increase its pension plan expense by $179 . The amounts in accumulated other comprehensive income (loss), or AOCI, for all plans that are expected to be amortized as components of net periodic benefit cost (benefit) during 2019 are as follows: Pension Other Benefits Total Prior service cost $ 49 $ — $ 49 Net actuarial loss (gain) 197 (140 ) 57 Transition obligation — 12 12 The changes in benefit obligations and fair value of plan assets recognized in other comprehensive loss during 2018 and 2017 are as follows: Pension Benefits Other Benefits Total 2018 2017 2018 2017 2018 2017 Change in accumulated other comprehensive income Amortization of net (gain) loss $ (197 ) $ (177 ) $ 168 $ 212 $ (29 ) $ 35 Amortization of prior service cost / transition obligation (49 ) (108 ) (12 ) (23 ) (61 ) (131 ) Net (gain) loss 514 694 17 343 531 1,037 Total change in accumulated other comprehensive income 268 409 173 532 441 941 Deferred taxes (67 ) (88 ) (323 ) (148 ) (390 ) (236 ) Net amount recognized $ 201 $ 321 $ (150 ) $ 384 $ 51 $ 705 U.S. Plans Obligations and Funded Status—U.S. Plans At December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in benefit obligation Benefit obligation at beginning of year $ 2,662 $ 2,473 $ 3,250 $ 2,974 Service cost — — 144 123 Interest cost 94 100 114 118 Actuarial loss (gain) (219 ) 154 108 151 Benefits paid (76 ) (65 ) (126 ) (116 ) Benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in plan assets Fair value of plan assets at beginning of year $ 2,628 $ 2,263 $ — $ — Actual return on plan assets (164 ) 430 — — Employer contributions — — 126 116 Benefits paid (76 ) (65 ) (126 ) (116 ) Fair value of plan assets at end of year $ 2,388 $ 2,628 $ — $ — Funded status of the plan $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ — $ — $ — $ — Current liabilities — — (248 ) (151 ) Noncurrent liabilities (73 ) (34 ) (3,242 ) (3,099 ) Net amounts recognized $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in accumulated other comprehensive income Prior service (credit) cost $ — $ — $ — $ — Net actuarial (gain) loss 73 (22 ) (1,635 ) (1,911 ) Total amount recognized $ 73 $ (22 ) $ (1,635 ) $ (1,911 ) Deferred taxes (18 ) 5 398 758 Net amount recognized $ 55 $ (17 ) $ (1,237 ) $ (1,153 ) Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ — $ — $ — $ 144 $ 123 $ 172 Interest cost 94 100 114 114 118 165 Expected return on plan assets (150 ) (140 ) (145 ) — — — Amortization of: Actuarial loss (gain) — — — (168 ) (211 ) (100 ) Net periodic benefit cost $ (56 ) $ (40 ) $ (31 ) $ 90 $ 30 $ 237 Weighted average assumptions for benefit obligation Discount rate 4.22 % 3.60 % 4.16 % 4.04 % 3.66 % 4.22 % Expected long-term rate of return on plan assets 6.51 % 6.30 % 6.20 % NA NA NA Rate of compensation increase NA NA NA 4.00 % 4.00 % 3.75 % Weighted average assumptions for net periodic benefit cost Discount rate 3.60 % 4.16 % 4.50 % 3.66 % 4.22 % 4.25 % Expected long-term rate of return on plan assets 6.30 % 6.20 % 6.51 % NA NA NA Rate of compensation increase NA NA NA 4.00 % 3.75 % 3.75 % Estimated Future Benefit Payments Pension Benefits Other Benefits Fiscal 2019 $ 98 $ 248 Fiscal 2020 109 254 Fiscal 2021 116 268 Fiscal 2022 130 284 Fiscal 2023 138 289 Fiscal Years 2024-2028 751 1,290 Innophos expects to make no contributions to its U.S. defined benefit pension plan in 2019. The estimated actuarial gain, prior service cost, and transition obligation (asset) for the post-retirement plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2019 fiscal year are $140 , $0 and $0 , respectively. Assumed health care cost trend rates on the U.S. plans do not have a significant effect on the amounts reported for the health care plans as a result of limits on the Company’s share of the cost. Plan Assets The investment policy for the Company’s U.S. defined benefit pension plan is designed to achieve long-term objectives of return, while mitigating against downside risk and considering expected cash flow. Investment managers appointed by the Plan are directed to achieve a satisfactory return through a diversified portfolio consistent with acceptable risks and prudent management. In accordance with the investment and risk philosophy of the Committee, a target asset mix of 92.3% equities and 7.7% fixed income instruments has been established. Investment weightings and results are tested regularly against appropriate benchmark portfolios. Innophos, Inc.’s defined benefit pension plan invests in mutual funds and commercial paper and the weighted-average asset allocations at December 31, 2018 and 2017 by asset category are as follows: Plan Assets at December 31 2018 2017 Asset Category Equity securities 92.3 % 92.9 % Fixed income securities 7.7 7.1 Total 100.0 % 100.0 % The fair values of Innophos, Inc.’s pension plan assets at December 31, 2018 by asset category are as follows: Total Level 1 Level 2 Level 3 Equity securities $ 2,204 $ 2,204 $ — $ — Fixed income securities 184 184 — — $ 2,388 $ 2,388 $ — $ — Defined Contribution Plan—U.S. Innophos Inc.’s expense for the defined contribution plan was $0.8 million , $3.2 million and $3.0 million for 2018 , 2017 and 2016 , respectively. Canadian Plans Obligations and Funded Status—Canadian Plans at December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in benefit obligation Benefit obligation at beginning of year $ 15,590 $ 13,128 $ 1,722 $ 1,379 Service cost 439 383 63 51 Interest cost 515 517 57 55 Past service cost — 153 — — Actuarial (gain) loss (502 ) 886 (61 ) 181 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,228 ) 1,008 (135 ) 109 Benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in plan assets Fair value of plan assets at beginning of year $ 16,729 $ 14,798 $ — $ — Actual return on plan assets (484 ) 1,308 — — Employer contributions 679 — 100 53 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,306 ) 1,108 — — Fair value of plan assets at end of year $ 14,843 $ 16,729 $ — $ — Funded status of the plan $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ 804 $ 1,139 $ — $ — Current liabilities — — (59 ) (103 ) Noncurrent liabilities — — (1,487 ) (1,619 ) Net amounts recognized $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in accumulated other comprehensive income Net transition obligation $ — $ — $ 12 $ 37 Prior service cost 97 158 — — Net actuarial loss 4,329 4,095 122 200 Total amount recognized $ 4,426 $ 4,253 $ 134 $ 237 Deferred taxes (1,107 ) (1,063 ) (34 ) (59 ) Net amount recognized $ 3,319 $ 3,190 $ 100 $ 178 Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 439 $ 383 $ 362 $ 63 $ 51 $ 49 Interest cost 515 517 489 57 55 51 Expected return on plan assets (796 ) (819 ) (768 ) — — — Amortization of: Actuarial loss 188 177 207 4 — — Prior service cost 51 108 106 — — — Net transition obligation — — — 24 23 23 Net periodic benefit cost $ 397 $ 366 $ 396 $ 148 $ 129 $ 123 Weighted average assumptions for balance sheet liability at end of year Discount rate 3.64 % 3.37 % 3.75 % 3.64 % 3.37 % 3.75 % Rate of compensation increase NA NA NA NA NA NA Weighted average assumptions for net periodic benefit cost at end of year Discount rate 3.37 % 3.75 % 3.75 % 3.37 % 3.75 % 3.75 % Expected long-term rate of return 5.00 % 5.50 % 5.50 % NA NA NA Rate of compensation increase NA NA NA NA NA NA Accrued health care cost trend rates at end of year Health care cost trend rate assumed for next year (initial rate) 7 % 8 % 9 % Rate to which the cost trend rate is assumed to decline (ultimate rate) 5 % 5 % 5 % Year that the rate reaches the ultimate rate 2030 2030 2033 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: Other Benefits 2018 2017 Effect of a change in the assumed rate of increase in health benefit costs Effect of a 1% increase on: Total of service cost and interest cost $ 23 $ 24 Post-retirement benefit obligation $ 211 $ 221 Effect of a 1% decrease on: Total of service cost and interest cost $ (17 ) $ (18 ) Post-retirement benefit obligation $ (169 ) $ (177 ) The estimated net actuarial loss, prior service cost, and transition obligation (asset) for all defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2019 fiscal year are $197 , $49 and $0 , respectively. The estimated actuarial loss, prior service cost, and transition obligation (asset) for the post-retirement plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2019 fiscal year are $0 , $0 and $12 , respectively. Plan Assets Innophos Canada Inc.’s pension plan invests in mutual funds and the weighted-average asset allocations at December 31, 2018 and 2017 by asset category are as follows: 2018 2017 Asset Category Equity securities 49.1 % 51.6 % Fixed income securities 48.9 44.8 Other 2.0 3.6 Total 100.0 % 100.0 % The fair values of Innophos Canada, Inc.’s pension plan assets at December 31, 2018 by asset category are as follows: Total Level 1 Level 2 Level 3 Equity securities $ 7,287 $ 7,287 $ — $ — Fixed income securities 7,257 — 7,257 — Other 299 — 299 — $ 14,843 $ 7,287 $ 7,556 $ — The Pension Committee has promulgated a Statement of Investment Policies and Procedures based on the “prudent person portfolio approach” to ensure investment and administration of the assets of the Plan within the parameters set out in the Ontario Pension Benefits Act and the Regulations hereunder. Investment managers appointed by the Plan are directed to achieve a satisfactory return through a diversified portfolio consistent with acceptable risks and prudent management. In accordance with the investment and risk philosophy of the Committee, a target asset mix of 50% equities and 50% fixed income instruments has been established. Investment weightings and results are tested regularly against appropriate benchmark portfolios. Cash Flows Contributions Innophos Canada, Inc. contributed $0.7 million to its pension plan in 2018 . Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Estimated Future Benefit Payments Pension Benefits Other Benefits Fiscal 2019 $ 541 $ 59 Fiscal 2020 577 72 Fiscal 2021 617 92 Fiscal 2022 670 95 Fiscal 2023 712 100 Fiscal Years 2024-2028 4,034 480 Innophos plans to make $0.3 million in contributions to its Canadian pension plan in 2019 . Defined Contribution Plans—Canada Innophos Canada Inc.’s expense for the defined contribution plans was approximately $0.1 million for 2018 , 2017 and 2016 , respectively. Mexico In accordance with Mexican labor law, a Mexican employee is entitled to certain post-employment payments after reaching fifteen years of service. In addition, Mexican employees also participate in a statutory profit sharing program based on 10% of adjusted taxable income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: A reconciliation of the U.S. statutory rate and income taxes follows: Year Ended December 31, 2018 2017 2016 Income before income taxes Income tax expense Income before income taxes Income tax expense Income before income taxes Income tax expense/ (benefit) U.S. $ 17,940 $ (3,062 ) $ 8,026 $ 20,230 $ 24,727 $ 10,989 Canada/Mexico/Europe/Asia 25,292 10,223 48,611 13,962 45,591 11,358 Total $ 43,232 $ 7,161 $ 56,637 $ 34,192 $ 70,318 $ 22,347 Current income taxes $ (2,467 ) $ 23,781 $ 12,813 Deferred income taxes 9,628 10,411 9,534 Total $ 7,161 $ 34,192 $ 22,347 Year Ended December 31, 2018 2017 2016 Income tax expense at the U.S. statutory rate $ 9,079 $ 19,824 $ 24,611 State income taxes 67 741 862 Foreign tax rate differential 1,885 (1,606 ) (1,549 ) Non-taxable interest expense (income) 3,370 (5,951 ) (5,582 ) Change in valuation allowance (4,498 ) 1,984 (168 ) U.S. Tax Cuts and Jobs Act of 2017 (5,443 ) 17,286 — Global intangible low-taxed income 843 — — Uncertain tax positions (792 ) — 736 Currency related tax adjustments 1,951 870 (629 ) Other non-deductible permanent items 699 1,044 4,066 Provision for income taxes $ 7,161 $ 34,192 $ 22,347 Net deferred tax balances were reflected on the consolidated balance sheets as follows: Year Ended December 31, 2018 2017 Net noncurrent deferred tax assets $ — $ 5,058 Net noncurrent deferred tax liabilities (5,113 ) (2,354 ) Net deferred tax assets $ (5,113 ) $ 2,704 The components of the Company’s deferred tax assets/ (liabilities) were as follows: Year Ended December 31, 2018 2017 Deferred tax assets: Inventories $ 5,483 $ 3,427 Accrued liabilities 15,061 7,472 Tax credits 2,249 3,846 Tax losses 5,664 22,196 Total deferred tax assets 28,457 36,941 Deferred tax liabilities: Gain on bond retirement — (170 ) Intangibles (11,574 ) (11,012 ) Fixed assets (13,799 ) (10,809 ) Accrued liabilities (2,249 ) (1,800 ) Total deferred tax liabilities (27,622 ) (23,791 ) Total valuation allowances (5,948 ) (10,446 ) Net deferred tax assets (liabilities) $ (5,113 ) $ 2,704 A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Year Ended December 31, 2018 2017 2016 Gross unrecognized tax benefits at January 1 $ 2,679 $ 2,679 $ 3,121 Additions for tax positions of prior years — — 973 Reductions for tax positions of prior years (939 ) — — Reductions due to settlements (1,420 ) — (1,415 ) Gross unrecognized tax benefits at December 31 320 2,679 2,679 Net uncertain tax benefits, that if recognized would impact the effective tax rate, at December 31 $ 253 $ 2,116 $ 1,741 The U.S. operations have deferred tax assets for federal tax loss carry forwards of $1.7 million and $13.9 million and state tax loss carry forwards of $0.3 million and $1.6 million as of December 31, 2018 and 2017 , respectively. These tax loss carry forwards will expire in the years 2026 through 2037. The Company realized tax benefits of $0.1 million and $0.8 million from stock options exercised in 2018 and 2017 , respectively. The Company maintains full valuation allowances of $5.9 million and $10.4 million at December 31, 2018 and 2017 , respectively, on its capital loss on note redemptions, foreign withholding tax credits and foreign net operating loss carryforwards as it is more likely than not that these tax benefits will not be realized. The decrease in valuation allowances during 2018 is primarily a result of the true-up of prior year foreign tax withholding credits and foreign net operating losses. These foreign tax withholding credits and foreign net operating losses are not anticipated to be utilized in future years. Certain of these foreign tax attributes, approximately $3.3 million , do not expire, while the remaining tax attributes will expire in the years 2019 through 2038. 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, 100% bonus depreciation for certain capital expenditures, stricter limits on deductions for interest and certain executive compensation and transitioning U.S. international taxation from a worldwide tax system to a territorial tax system. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“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 recognized the provisional tax impacts related to the re-measurement of deferred income tax assets and liabilities and the one-time, mandatory transition tax on deemed repatriation during the year ended December 31, 2017. During 2018, the Company finalized these calculations and recorded a total benefit of $7.4 million . This 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. The Company re-evaluated 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 for $1.2 million of foreign withholding taxes on these unremitted earnings. Apart from the unremitted earnings, the Company has not provided for deferred taxes on the outside basis of its investment in the Canadian subsidiary as this remains permanently reinvested. The Company considers all other foreign subsidiaries to be permanently reinvested. A determination of the unrecognized deferred taxes related to these other components is not practicable. Beginning in 2018, the Tax Act includes two new U.S. tax base erosion provisions, the GILTI provisions and the base-erosion and anti-abuse tax (“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 account for GILTI tax in the period in which it is incurred, and therefore has booked an additional tax income of $0.8 million for the period. 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 December 31, 2018. 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 2014 through 2017. The Company has recorded an immaterial amount for interest and penalties in the statement of operations. Interest and penalties related to uncertain tax positions of $0.1 million and $0.8 million are accrued in other long-term liabilities as of December 31, 2018 and December 31, 2017, respectively. Other than the items mentioned above, as of December 31, 2018, no significant 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 (net of refunds) were $18.4 million , $14.9 million and $27.9 million for 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Leases Under agreements expiring through 2021, the Company leases railcars and other equipment under various operating leases. Rental expense for 2018 , 2017 and 2016 was $7,387 , $7,287 and $6,930 , respectively. Minimum annual rentals for all operating leases are: Year Ending Lease Payments 2019 $ 8,259 2020 7,130 2021 6,490 2022 6,032 2023 5,467 Thereafter 33,957 Purchase Commitments and Supplier Concentration The Company relies on unaffiliated third parties to provide its raw materials, including intermediate products the Company sources to produce its products. The Company’s raw materials are purchased under supply arrangements that vary from long-term multi-year supply agreements to short term agreements. Some of these supply contracts include minimum purchase obligations on the part of the Company. The Company has multiple raw material supply contracts with pricing that is established annually based on a formula. The Company may be unable to renew the annual or other periodic contracts it has in place for its raw materials at all or on similar terms to the current terms. In addition, with respect to those suppliers with whom the Company does have long-term multi-year agreements, such suppliers may nevertheless seek to terminate, modify or disrupt performance under such agreements. The Company also relies on spot suppliers for certain raw materials and may from time to time experience sourcing difficulties in connection therewith. Most of the Company’s raw materials are supplied to the Company by either one or a small number of suppliers. Some of those suppliers rely, in turn, on sole or limited sources of supply for raw materials included in their products. As a result, the Company may from time to time experience difficulties in sourcing raw materials. In addition, from time to time, the Company enters into toll manufacturing agreements or other arrangements to produce minimum quantities of product for a certain duration. If the Company experience delays in delivering contracted production, the Company may be subject to contractual liabilities to the buyers to whom the Company has promised the products. 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, both with respect to the eastern portion which had been used historically as a landfill, as well as 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 December 31, 2018 . Litigation The Company is 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 its 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. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component: Pension and Other Post-retirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2016 $ (1,493 ) $ 9 $ (1,484 ) Other comprehensive income (loss) before reclassifications (412 ) (9 ) (421 ) Amounts reclassified from accumulated other comprehensive income (loss) (293 ) — (293 ) Net current period other comprehensive income (loss) (705 ) (9 ) (714 ) Balance at December 31, 2017 (2,198 ) — (2,198 ) Other comprehensive income (loss) before reclassifications (344 ) (767 ) (1,111 ) Amounts reclassified from accumulated other comprehensive income (loss) 293 — 293 Net current period other comprehensive income (loss) (51 ) (767 ) (818 ) Balance at December 31, 2018 $ (2,249 ) $ (767 ) $ (3,016 ) |
Financial Instruments and Conce
Financial Instruments and Concentration of Credit Risks | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments and Concentration of Credit Risks | Financial Instruments and Concentration of Credit Risks: The Company believes that its concentration of credit risk related to trade accounts receivable is limited since these receivables are spread among a number of customers and are geographically dispersed. The ten largest customers accounted for 24% , 26% and 35% , respectively, of net sales for 2018 , 2017 and 2016 . No customer accounted for more than 10% of the Company's sales in the last three years. |
Valuation Allowances
Valuation Allowances | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation Allowances | Valuation Allowances: Valuation allowances as of December 31, 2018 , 2017 and 2016 , and the changes in the valuation allowances for the year ended December 31, 2018 , 2017 and 2016 are as follows: Balance, January, 1 2018 Charged/ (credited) to costs and expenses Deductions (Bad debts) (Credited) to Goodwill Balance, December 31, 2018 Deferred taxes valuation allowances $ 10,446 $ (4,498 ) $ — $ — $ 5,948 Balance, January, 1 2017 Charged/ (credited) to costs and expenses Deductions (Bad debts) (Credited) to Goodwill Balance, December 31, 2017 Deferred taxes valuation allowances $ 8,462 $ 1,984 $ — $ — $ 10,446 Balance, January, 1 2016 Charged/ (credited) to costs and expenses Deductions (Bad debts) (Credited) to Goodwill Balance, December 31, 2016 Deferred taxes valuation allowances $ 8,630 $ (168 ) $ — $ — $ 8,462 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 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 Annual Report on Form 10-K are recognized when title and risk of loss passes to the customer, which occurs either upon shipment or delivery, depending upon the agreed sales terms with customers. The Company's chief executive officer is the chief operating decision maker and, as of the first quarter of 2017, has determined to assess the Company's performance and allocate the appropriate resources based on the following operating segments: (1) Food, Health and Nutrition; (2) Industrial Specialties; and (3) Other. The new reporting segments accurately reflect the underlying business dynamics and align with the strategic direction of the Company. For the year ended December 31, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 480,166 $ 260,605 $ 61,071 $ 801,842 EBITDA $ 61,791 $ 34,124 $ 5,771 $ 101,686 Depreciation and amortization expense $ 28,695 $ 14,347 $ 1,889 $ 44,931 Other data Capital expenditures $ 37,368 $ 17,886 $ 1,491 $ 56,745 Long-lived assets $ 142,659 $ 88,468 $ 9,108 $ 240,235 Total assets $ 601,030 $ 190,823 $ 23,301 $ 815,154 For the year ended December 31, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 397,298 $ 262,704 $ 62,022 $ 722,024 EBITDA $ 67,156 $ 33,833 $ 3,060 $ 104,049 Depreciation and amortization expense $ 24,212 $ 13,863 $ 2,329 $ 40,404 Other data Capital expenditures $ 23,556 $ 10,820 $ 483 $ 34,859 Long-lived assets $ 130,705 $ 71,925 $ 16,667 $ 219,297 Total assets (b) $ 556,479 $ 190,700 $ 37,990 $ 785,169 For the year ended December 31, 2016 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 376,672 $ 278,284 $ 70,389 $ 725,345 EBITDA (a) $ 78,128 $ 36,029 $ 1,309 $ 115,466 Depreciation and amortization expense $ 20,269 $ 12,645 $ 4,565 $ 37,479 Other data Capital expenditures $ 19,181 $ 15,866 $ 1,552 $ 36,599 Long-lived assets $ 124,664 $ 72,727 $ 8,068 $ 205,459 Total assets $ 397,575 $ 210,680 $ 34,756 $ 643,011 (a) The year ended December 31, 2016 includes a $1.5 million charge to earnings for restructuring reserves in Other. (b) The increase in total assets in the Food, Health and Nutrition segment is largely due to the Novel Ingredients and NutraGenesis acquisitions. A reconciliation of net income to EBITDA follows: 2018 2017 2016 Net income $ 36,071 $ 22,445 $ 47,971 Provision for income taxes 7,161 34,192 22,347 Interest expense, net 13,523 7,008 7,669 Depreciation and amortization 44,931 40,404 37,479 EBITDA $ 101,686 $ 104,049 $ 115,466 Year Ended December 31, Product Revenues 2018 2017 2016 Specialty Ingredients $ 567,064 $ 490,256 $ 456,465 Core Ingredients 183,872 174,819 200,560 Co-Products and Other 50,906 56,949 68,320 Total $ 801,842 $ 722,024 $ 725,345 Year Ended December 31, Geographic Revenues 2018 2017 2016 U.S. $ 517,782 $ 450,171 $ 418,411 Mexico 137,289 125,116 123,885 Canada 32,666 31,993 32,391 Other foreign countries 114,105 114,744 150,658 Total $ 801,842 $ 722,024 $ 725,345 Year Ended December 31, Geographic Long-lived Assets 2018 2017 2016 U.S. $ 127,788 $ 113,795 $ 104,118 Mexico 99,403 91,414 85,698 Canada 11,510 12,293 13,575 Other foreign countries 1,534 1,795 2,068 Total $ 240,235 $ 219,297 $ 205,459 Revenues for the geographic information are attributed to geographic areas based on the destination of the sale. Long-lived assets include property, plant and equipment. |
Quarterly information (unaudite
Quarterly information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information (unaudited) | Quarterly information (unaudited): 2018 Quarters ended March 31 June 30 September 30 December 31 Total Net sales $ 205,440 $ 206,725 $ 196,934 $ 192,743 $ 801,842 Gross profit 42,227 36,385 35,228 29,551 143,391 Net income (loss) 10,915 6,246 14,090 4,820 36,071 Per share data: Income per share: Basic $ 0.56 $ 0.32 $ 0.72 $ 0.25 Diluted $ 0.55 $ 0.31 $ 0.71 $ 0.24 2017 Quarters ended March 31 June 30 September 30 December 31 Total Net sales $ 165,944 $ 179,140 $ 183,839 $ 193,101 $ 722,024 Gross profit 36,543 39,076 40,969 32,441 149,029 Net income (loss) (a) 10,923 11,223 11,582 (11,283 ) 22,445 Per share data: Income per share: Basic $ 0.56 $ 0.58 $ 0.59 $ (0.58 ) Diluted $ 0.55 $ 0.57 $ 0.58 $ (0.58 ) (a) The three months ended December 31, 2017 include a $17.3 million charge to income taxes for the impacts of the Tax Act. |
Supply Agreement Termination Su
Supply Agreement Termination Supply Agreement Termination | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supply Agreement Termination | Supply agreement termination In June 2018, the Company agreed to terminate a previously long-term supply agreement and replaced it with a short-term one. In December 2018, as a result of the termination, the Company received consideration of $24.9 million which included $21.3 million in cash as well as receipt of certain tangible assets with a fair value of $3.6 million . The consideration was recorded as a deferred liability with $9.5 million in Other current liabilities and the remaining $15.4 recorded in Other long-term liabilities. Beginning in January 2019, the deferred liability will be amortized on a straight-line basis through July 2021, which is the end of the new supply agreement, as a reduction of Cost of goods sold. |
Basis of Statement Presentati_2
Basis of Statement Presentation (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year The Company's fiscal year end is December 31. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities | Innophos Holdings, Inc. is the parent of Innophos Investments Holdings, Inc., which owns 100% of Innophos, Inc; all are incorporated under the laws of the State of Delaware. All intercompany transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires the use of judgments and estimates made by management. Actual results could differ from those estimates. Some of the more significant estimates pertaining to the Company include accruals for contingencies, distributor incentives and rebates, the valuation of inventories, the allowance for doubtful accounts, income tax valuation allowances, the recoverability of long-lived assets and goodwill impairment testing analysis and cash flows and assumptions used in the recognition and measurement of assets acquired in business combinations. Management routinely reviews its estimates and assumptions utilizing currently available information, changes in facts and circumstances, and historical experience. |
Cash Equivalents | Cash Equivalents All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. |
Accounts Receivable and Allowances for Doubtful Accounts | Accounts Receivable and Allowances for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and does not bear interest. The collectability of accounts receivable is evaluated based on a combination of factors. Allowances for doubtful accounts is evaluated based on the length of time the receivables are past due, historical experience and financial wherewithal of the customer. In circumstances when it is probable that a specific customer is unable to meet its financial obligations, an allowance is recorded to reduce the receivable to the amount that is reasonably expected to be collected. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Cost is determined on the basis of the first-in, first-out method. These costs include raw materials, direct labor, manufacturing overhead and depreciation. Spare parts are included in inventory and are initially recorded at cost. Inventories, including spare parts, are evaluated for excess quantities, obsolescence or shelf-life expiration. This evaluation includes an analysis of historical sales levels by product and projections of future demand. To the extent management determines there are excess, obsolete or expired inventory quantities, valuation reserves are recorded against all or a portion of the value of the related products with the appropriate charge to cost of goods sold. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Major renewals and improvements are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. The cost and related accumulated depreciation of all property, plant and equipment retired or otherwise disposed of are eliminated from the accounts and any resulting gain or loss is reflected in net income. Interest is capitalized in connection with the construction of major renewals and improvements. Capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset’s estimated useful life. Depreciation is calculated on the straight-line basis over the estimated useful lives of the related assets, typically ranging from ten to twenty years for buildings and improvements, five to fifteen years for machinery and equipment, and three to seven years for capitalized software. Leasehold improvements are amortized over the lease term or the estimated useful life of the improvement, whichever is less. External direct costs in developing or obtaining internal use computer software and payroll, and payroll-related costs for employees dedicated solely to the project, to the extent of the time spent directly on the project and which they meet the requirements of ASC 350-40, are capitalized. |
Long-Lived Assets | Long-Lived Assets Under ASC 360,” Property, Plant, and Equipment ,” long-lived assets including property, plant and equipment and amortizable intangible assets are evaluated and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The review of these long-lived assets is performed at the individual asset level, asset group level, or the product group level depending on the lowest level for which identifiable cash flows are largely independent. The Company’s asset groupings or product groupings vary based on the interrelationship of the long-lived assets and the identifiable cash flows. For example, in certain instances, multiple manufacturing units may work with one another to produce the lowest identifiable cash flows or in other instances a stand-alone unit may produce the lowest level of identifiable cash flows. There are other instances where a stand-alone unit may produce multiple products and the lowest level of identifiable cash flows is at the product group level. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the undiscounted future cash flows expected to be generated by the asset, asset group or product group. When this comparison indicates that impairment must be recorded, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. The determination of whether or not assets are impaired and the corresponding useful lives of these long-lived assets requires significant judgment. The development of future cash flow projections requires management estimates related to forecasted sales and expected costs trends. To the extent that changes in business conditions occur or other management decisions are made that result in adjusted management projections or alternative use of the assets, impairment losses or accelerated depreciation may occur in future periods. |
Goodwill | Goodwill Goodwill represents the excess of the acquisition cost over the fair value of net assets of the businesses acquired. ASC 350, “ Intangibles—Goodwill and Other ,” requires periodic tests of the impairment of goodwill. ASC 350 requires a comparison, at least annually, of the net book value of the assets and liabilities associated with a reporting unit, including goodwill, with the fair value of the reporting unit, which corresponds to the discounted cash flows of the reporting unit, in the absence of an active market. The development of future cash flow projections requires management estimates related to forecasted sales and expected costs trends. To the extent that changes in business conditions occur or other management decisions are made that result in adjusted management projections, impairment losses may occur in future periods. If the entity determines that it's more likely than not that the fair value of a reporting unit exceeds the carrying amount, then determining an impairment charge is unnecessary. When the carrying value of the reporting unit exceeds the fair value amount, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of these assets, not to exceed the carrying value of the goodwill. The annual goodwill impairment review is conducted during the fourth quarter of each year. |
Other Intangible Assets | Other Intangible Assets Other intangible assets, which consist of developed technology, customer relationships, trade names, a non-compete agreement, patents, licenses and software, are amortized on a straight-line basis over their estimated useful lives which can be up to twenty years. |
Revenue Recognition | Revenue Recognition Revenue from sales of the Company's products to its customers is 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. In the United States and Canada, the Company records estimated reductions to revenue for distributor incentives and customer incentives such as rebates, at the time of the initial sale. Distributor and customer incentives in Mexico are immaterial to the financial statements. The estimated reductions are based on the sales terms, historical experience and trend analysis. Accruals for distributor incentives are reflected as a direct reduction to accounts receivable and accruals for rebates are recorded as accrued expenses. This analysis requires a significant amount of judgment from management. Changes in the assumptions used to calculate these estimates or changes resulting from actual results are recorded against revenue in the period in which the change occurs. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs and Advertising Expenses Shipping and handling fees and costs invoiced to customers are included in Net sales. Shipping and handling fees and costs incurred by the Company are included in Cost of goods sold. |
Advertising Expenses | Advertising expenses, which are not significant, are expensed as incurred. |
Foreign Currency Translation | Foreign Currency Translation The U.S. dollar is the functional currency of the Canadian and Mexican operations. Accordingly, these operations monetary assets and liabilities are remeasured at current exchange rates, non-monetary assets and liabilities are remeasured at historical exchange rates. Revenue and expenses related to monetary assets and liabilities are remeasured at average exchange rates and at historical exchange rates for the related revenue and expenses of non-monetary assets and liabilities. All translation gains and losses are included in net income. |
Research and Development Expenses | Research and Development Expenses Research and development expenditures, including expenditures relating to the development of new products and processes and significant improvements and refinements to existing products, are expensed as incurred. |
Employee Termination Benefits | Employee Termination Benefits The Company does not have a written severance plan for its Mexican operations, nor does it offer similar termination benefits to affected employees in all Mexican restructuring initiatives. However, Mexican law requires payment of certain minimum termination benefits. Accordingly, in situations where minimum statutory termination benefits must be paid to the affected employees, the Company records employee severance costs associated with these activities in accordance with ASC 712, Compensation – Nonretirement Post Employment Benefits . The Company does have a written severance plan which is in accordance with ASC 712 for its U.S. and Canadian operations. The Company has an accrued obligation for post-employment benefits for U.S. and Canadian operations when the amounts are probable and reasonably estimated. In all other situations where the Company pays out termination benefits, including supplemental benefits paid in excess of statutory minimum amounts and benefits offered to affected employees based on management’s discretion, the Company records these termination costs in accordance with ASC 420, Exit or Disposal Cost Obligations . The timing of the recognition of charges for employee severance costs depends on whether the affected employees are required to render service beyond their legal notification period in order to receive the benefits. If affected employees are required to render service beyond their legal notification period, charges are recognized ratably over the future service period. Otherwise, charges are recognized when a specific plan has been confirmed by management and required employee communication requirements have been met. |
Legal Costs | Legal Costs The Company expenses legal costs as incurred, including those legal costs which may be incurred in connection with a loss contingency. |
Income Taxes | Income Taxes The Company’s significant subsidiaries are the Company's United States subsidiaries which file a consolidated U.S. tax return, the Company's Mexican subsidiaries which file separate tax returns since 2016, the Company's Canadian subsidiary which files a separate Canadian tax return and the Netherlands files a fiscal unity return for certain Netherlands subsidiaries. The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases using enacted tax rates applied to those differences. Deferred tax assets are assessed for realizability and a valuation allowance is provided if a portion of the associated tax benefit is not expected to be realized. If any material uncertain tax positions arise, the Company’s policy is to accrue associated penalties in selling, general and administrative expenses and to accrue interest as part of net interest expense. Other than the assessments disclosed in Note 15, Income Taxes, as of December 31, 2018, no significant 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. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (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 with a one-time mandatory transition or toll tax on post-1986 undistributed foreign earnings and profits of U.S. subsidiaries through the year ended December 31, 2017. |
Environmental Costs | Environmental Costs Environmental liabilities are recorded undiscounted when it is probable that these liabilities have been incurred and the amounts can be reasonably estimated. These liabilities are estimated based on an assessment of many factors, including the amount of remediation costs, the timing and extent of remediation actions required by the applicable governmental authorities, and the amount of the Company’s liability after considering the liability and financial resources of other potentially responsible parties. Generally, the recording of these accruals coincides with the assertion of a claim or litigation, completion of a feasibility study or a commitment to a formal plan of action. Anticipated recoveries from third parties are recorded as a reduction of expense only when such amounts are realized. Any insurance receivables would be recorded gross of the estimated liability. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is composed of net income (loss), adjusted for changes in comprehensive income items such as changes in defined benefit pension plan funded status. |
Share-based Compensation | Share-based Compensation The Company recognizes compensation expense for its Long-Term Incentive Plans (LTIP). Under applicable accounting standards, the fair value of share-based compensation is determined at the grant date and the recognition of the related expense is recorded over the period in which the share-based compensation vests. |
Business Combinations | Business Combinations An acquired business is included in the consolidated financial statements upon obtaining control of the acquired assets. Assets acquired and liabilities assumed are recognized at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recognized as goodwill. |
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 statement of cash flows. 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 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 had no impact. 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 adopted this standard on January 1, 2018, and there was no 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 15 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)), and associated ASUs related to 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, or ROU, 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 addition, entities can use an optional transition method to apply the transition requirements in Topic 842 at the Topic’s effective date. The Company will elect the transition method to adopt the new leases standard at the adoption date of the new standard on January 1, 2019. The company has a cross-functional team in place to evaluate and implement the new guidance and has substantially completed its evaluation. All of the leases classified by the Company are Operating leases, and the Company estimates it will record ROU Assets and Lease Liabilities of approximately $45.0 million to $50.0 million at January 1, 2019. These leases primarily cover rail cars, inventory tanks, building, equipment and fleet cars. In addition, the company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, does not require reassessment of prior conclusions related to contracts containing a lease, lease classification, and initial direct lease costs. As an accounting policy election, the company will exclude short-term leases (term of 12 months or less) from the balance sheet and will account for non-lease and lease components in a contract as a single component for most asset classes. The impact to the company's Consolidated Statement of Operations and Consolidated Statement of Cash Flows is expected to not be material. 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. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. This amendment modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and the effects of a one-percentage-point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for postretirement health care benefits. New disclosures include the interest crediting rates for cash balance plans, and an explanation of significant gains and losses related to changes in benefit obligations. The new standard is effective for fiscal years beginning after December 15, 2020, and must be applied retrospectively for all periods presented. Early adoption is 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) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated 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 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | 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 |
Business Acquisition, Pro Forma Information | 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. Year Ended December 31, 2017 2016 Revenues $ 792,600 $ 812,447 Net income $ 22,011 $ 41,711 Income per common share - Basic $ 1.13 $ 2.16 Income per common share - Diluted $ 1.12 $ 2.13 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | 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. Year ended December 31, 2018 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 429,679 $ 24,386 $ 35,530 $ 77,469 $ 567,064 Core Ingredients 55,780 7,926 84,101 36,065 183,872 Co-Products & Other 32,323 354 17,658 571 50,906 Total $ 517,782 $ 32,666 $ 137,289 $ 114,105 $ 801,842 Year ended December 31, 2017 U.S. Canada Mexico Other Countries Total Specialty Ingredients $ 358,816 $ 23,435 $ 37,365 $ 70,640 $ 490,256 Core Ingredients 56,841 8,224 78,757 30,997 174,819 Co-Products & Other 34,514 334 8,994 13,107 56,949 Total $ 450,171 $ 31,993 $ 125,116 $ 114,744 $ 722,024 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following: 2018 2017 Raw materials $ 46,147 $ 48,445 Finished products 119,407 83,634 Spare parts 14,649 13,606 $ 180,203 $ 145,685 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: 2018 2017 Creditable taxes (value added taxes) $ 11,944 $ 7,285 Vendor inventory deposits (prepaid) 454 7,807 Prepaid income taxes 6,658 3,394 Prepaid insurance 2,605 2,492 Other 2,433 3,991 $ 24,094 $ 24,969 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, at cost, consist of the following: 2018 2017 Typical Useful life (years) Gross Accumulated Depreciation Net Book Value Gross Accumulated Depreciation Net Book Value Land - $ 18,453 $ — $ 18,453 $ 18,453 $ — $ 18,453 Land improvements 10-20 28,260 10,019 18,241 11,861 9,855 2,006 Buildings and improvements (a) 10-20 99,326 54,795 44,531 104,004 54,571 49,433 Machinery & equipment 5-15 551,226 410,521 140,705 501,908 388,905 113,003 Capitalized software 3-7 28,554 $ 26,427 $ 2,127 $ 28,260 $ 23,511 $ 4,749 Construction-in-progress - 16,178 — 16,178 31,653 — 31,653 $ 741,997 $ 501,762 $ 240,235 $ 696,139 $ 476,842 $ 219,297 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Food, Health and Nutrition Industrial Specialties Other Total Balance: December 31, 2016 $ 61,090 $ 23,283 $ — $ 84,373 Add: Goodwill from Novel Ingredients acquisition 54,007 — — 54,007 Add: Goodwill from NutraGenesis acquisition 14,320 — — 14,320 Balance: December 31, 2017 $ 129,417 $ 23,283 $ — $ 152,700 Add: Goodwill from NutraGenesis acquisition 67 67 Balance: December 31, 2018 $ 129,484 $ 23,283 $ — $ 152,767 |
Intangibles and Other Assets,_2
Intangibles and Other Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets and Other Noncurrent Assets, Net [Abstract] | |
Intangibles and Other Assets | Intangibles and other assets consist of the following: Useful life (years) 2018 2017 Developed technology and application patents, net of accumulated amortization of $34,669 for 2018 and $30,716 for 2017 7-20 11,606 15,559 Customer relationships, net of accumulated amortization of $28,032 for 2018 and $22,279 for 2017 5-20 67,479 73,232 Trade names and license agreements, net of accumulated amortization of $14,599 for 2018 and $12,023 for 2017 5-20 12,962 15,538 Non-compete agreement, net of accumulated amortization of $1,319 for 2018 and $1,293 for 2017 3-10 14 40 Total intangibles $ 92,061 $ 104,369 Deferred income taxes $ — $ 5,058 Deferred financing costs, net of accumulated amortization of $4,331 for 2018 and $3,902 for 2017 (see note 11) 1,291 1,721 Other assets 1,742 1,768 Total other assets $ 3,033 $ 8,547 $ 95,094 $ 112,916 |
Amortization Expense For the Next Five Years Related to Intangibles | Anticipated amortization expense for the next five years related to intangibles is as follows: 2019 2020 2021 2022 2023 Intangible amortization expense $ 10,639 $ 10,021 $ 9,383 $ 8,910 $ 7,498 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of the following: 2018 2017 Payroll related $ 15,656 $ 15,684 Taxes other than income taxes 3,071 2,804 Benefits and pensions 5,680 7,730 Freight and rebates 6,431 3,937 Income taxes 1,355 4,933 Restructuring reserve 217 1,719 Deferred gain on sale leaseback transaction (a) 790 — Deferred contract termination fee (b) 9,489 — Other 7,304 6,277 $ 49,993 $ 43,084 (a) See Note 6 to the Consolidated Financial Statements for further details. (b) See Note 22 to the Consolidated Financial Statements for further details. |
Short-Term Borrowings, Long-T_2
Short-Term Borrowings, Long-Term Debt, and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-term borrowings and long-term debt consist of the following: 2018 2017 Revolver borrowings under the credit facility due 2021 $ 300,000 $ 310,000 Capital leases — 9 Total borrowings $ 300,000 $ 310,009 Less current portion — 4 Long-term debt $ 300,000 $ 310,005 |
Components of Interest Expense, Net | Interest expense, net consists of the following: Year Ended December 31, 2018 2017 2016 Interest expense $ 14,250 $ 7,148 $ 7,210 Deferred financing cost 430 429 680 Interest income (75 ) (124 ) (53 ) Less: amount capitalized for capital projects (1,082 ) (445 ) (168 ) Total interest expense, net $ 13,523 $ 7,008 $ 7,669 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consist of the following: 2018 2017 Deferred income taxes $ 5,113 $ 2,354 Long term portion of U.S. transition tax — 12,095 Pension and post retirement liabilities 9,238 8,886 Restructuring reserve — 210 Uncertain tax positions 320 1,974 Environmental liabilities 1,100 1,100 Deferred gain on sale leaseback transaction (a) 15,073 — Deferred contract termination fee (b) 15,371 — Other liabilities 3,424 1,453 $ 49,639 $ 28,072 (a) See Note 6 to the Consolidated Financial Statements for further details. (b) See Note 22 to the Consolidated Financial Statements for further details. |
Stockholders' Equity _ Stock-_2
Stockholders' Equity / Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2018 2017 2016 Stock options $ 1,754 $ 1,068 $ 994 Restricted stock 2,626 1,701 1,490 Performance shares 228 424 (257 ) Stock grants 579 630 595 Total stock-based compensation expense (a) $ 5,187 $ 3,823 $ 2,822 (a) 2016 includes accelerated stock-based compensation expense adjustments of $(254) , due to management transition. |
Summary of Restricted Stock Activity | A summary of restricted stock activity during the three years ended December 31, 2018 , is presented below: Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2016 125,331 $ 40.85 Granted 88,836 31.47 Released (7,796 ) 53.18 Forfeited / Surrendered (29,920 ) 40.79 Outstanding at December 31, 2016 176,451 $ 35.27 Outstanding at January 1, 2017 176,451 $ 35.27 Granted 30,723 52.41 Released (32,171 ) 34.71 Forfeited / Surrendered (24,424 ) 36.42 Outstanding at December 31, 2017 150,579 $ 38.18 Outstanding at January 1, 2018 150,579 $ 38.18 Granted 56,311 39.20 Released (33,339 ) 36.38 Forfeited / Surrendered (24,936 ) 35.89 Outstanding at December 31, 2018 148,615 $ 39.35 |
Summary of Stock Option Activity | A summary of stock option activity during the three years ended December 31, 2018 , is presented below: Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Per Option Outstanding at January 1, 2016 691,922 $ 34.33 Granted 400,215 31.18 $ 4.62 Forfeited / Expired / Surrendered (260,913 ) 33.17 Exercised (91,029 ) 19.55 Outstanding at December 31, 2016 740,195 $ 34.84 Exercisable at December 31, 2016 368,159 $ 37.06 Outstanding at January 1, 2017 740,195 $ 34.84 Granted 102,607 52.43 $ 11.54 Forfeited / Expired / Surrendered (175,767 ) 37.24 Exercised (49,530 ) 23.40 Outstanding at December 31, 2017 617,505 $ 38.00 Exercisable at December 31, 2017 343,849 $ 38.05 Outstanding at January 1, 2018 617,505 $ 38.00 Granted 196,198 39.28 $ 7.28 Forfeited / Expired / Surrendered (132,684 ) 40.63 Exercised (18,010 ) 25.02 Outstanding at December 31, 2018 663,009 $ 38.21 Exercisable at December 31, 2018 388,686 $ 37.23 |
Summary of Assumptions Used in the Black-Scholes Option-Pricing Model | The assumptions used in the Black-Scholes option-pricing model were as follows: Non-qualified stock options Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 Expected volatility 29.7 % 31.3 % 33.8 % Dividend yield 4.6 % 3.6 % 6.6 % Risk-free interest rate 2.6 % 2.1 % 1.4 % Expected term in years 6.3 6.6 6.6 Weighted average grant date fair value of stock options $ 7.28 $ 11.54 $ 4.62 |
Summary of Performance Share Activity | A summary of performance share activity is presented below: Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding at January 1, 2016 32,417 $ 37.58 Granted (at targeted return on invested capital and contribution margin growth) — — Forfeited — — Vested (12,401 ) 54.46 Adjustment to estimate of shares to be earned (20,016 ) 27.12 Outstanding at December 31, 2016 — $ — Outstanding at January 1, 2017 — $ — Granted (at targeted return on invested capital and contribution margin growth) 22,958 52.44 Forfeited (2,083 ) 52.44 Vested (353 ) 49.54 Adjustment to estimate of shares to be earned 401 49.54 Outstanding at December 31, 2017 20,923 $ 52.43 Outstanding at January 1, 2018 20,923 $ 52.43 Granted (at targeted return on invested capital and contribution margin growth) 35,702 39.28 Forfeited (1,023 ) 40.90 Vested — — Adjustment to estimate of shares to be earned (30,984 ) $ 43.19 Outstanding at December 31, 2018 24,618 $ 45.47 |
Unrecognized Compensation Expense Related to Share-Based Payments | The total remaining unrecognized compensation expense related to share-based payments is as follows: Unrecognized Compensation Expense Restricted Stock Stock Options Performance Based Amount $ 3,151 $ 1,404 $ 193 Weighted-average years to be recognized 1.3 1.8 1.7 |
Earnings per share (EPS) (Table
Earnings per share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of 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: Year Ended December 31, 2018 2017 2016 Net income 36,071 22,445 47,971 Less: earnings attributable to unvested shares (131 ) (76 ) (288 ) Net income available to common shareholders $ 35,940 $ 22,369 $ 47,683 Weighted average number of common and potential common shares outstanding: Basic number of common shares outstanding 19,518,366 19,444,795 19,271,448 Dilutive effect of stock equivalents 241,893 288,615 310,028 Diluted number of weighted average common shares outstanding 19,760,259 19,733,410 19,581,476 Earnings per common share: Earnings per common share—Basic $ 1.84 $ 1.15 $ 2.47 Earnings per common share—Diluted $ 1.82 $ 1.13 $ 2.44 |
Pension Plans and Post-retire_2
Pension Plans and Post-retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts in accumulated other comprehensive income (loss), or AOCI, for all plans that are expected to be amortized as components of net periodic benefit cost (benefit) during 2019 are as follows: Pension Other Benefits Total Prior service cost $ 49 $ — $ 49 Net actuarial loss (gain) 197 (140 ) 57 Transition obligation — 12 12 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The changes in benefit obligations and fair value of plan assets recognized in other comprehensive loss during 2018 and 2017 are as follows: Pension Benefits Other Benefits Total 2018 2017 2018 2017 2018 2017 Change in accumulated other comprehensive income Amortization of net (gain) loss $ (197 ) $ (177 ) $ 168 $ 212 $ (29 ) $ 35 Amortization of prior service cost / transition obligation (49 ) (108 ) (12 ) (23 ) (61 ) (131 ) Net (gain) loss 514 694 17 343 531 1,037 Total change in accumulated other comprehensive income 268 409 173 532 441 941 Deferred taxes (67 ) (88 ) (323 ) (148 ) (390 ) (236 ) Net amount recognized $ 201 $ 321 $ (150 ) $ 384 $ 51 $ 705 U.S. Plans Obligations and Funded Status—U.S. Plans At December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in benefit obligation Benefit obligation at beginning of year $ 2,662 $ 2,473 $ 3,250 $ 2,974 Service cost — — 144 123 Interest cost 94 100 114 118 Actuarial loss (gain) (219 ) 154 108 151 Benefits paid (76 ) (65 ) (126 ) (116 ) Benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in plan assets Fair value of plan assets at beginning of year $ 2,628 $ 2,263 $ — $ — Actual return on plan assets (164 ) 430 — — Employer contributions — — 126 116 Benefits paid (76 ) (65 ) (126 ) (116 ) Fair value of plan assets at end of year $ 2,388 $ 2,628 $ — $ — Funded status of the plan $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ — $ — $ — $ — Current liabilities — — (248 ) (151 ) Noncurrent liabilities (73 ) (34 ) (3,242 ) (3,099 ) Net amounts recognized $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in accumulated other comprehensive income Prior service (credit) cost $ — $ — $ — $ — Net actuarial (gain) loss 73 (22 ) (1,635 ) (1,911 ) Total amount recognized $ 73 $ (22 ) $ (1,635 ) $ (1,911 ) Deferred taxes (18 ) 5 398 758 Net amount recognized $ 55 $ (17 ) $ (1,237 ) $ (1,153 ) Canadian Plans Obligations and Funded Status—Canadian Plans at December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in benefit obligation Benefit obligation at beginning of year $ 15,590 $ 13,128 $ 1,722 $ 1,379 Service cost 439 383 63 51 Interest cost 515 517 57 55 Past service cost — 153 — — Actuarial (gain) loss (502 ) 886 (61 ) 181 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,228 ) 1,008 (135 ) 109 Benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in plan assets Fair value of plan assets at beginning of year $ 16,729 $ 14,798 $ — $ — Actual return on plan assets (484 ) 1,308 — — Employer contributions 679 — 100 53 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,306 ) 1,108 — — Fair value of plan assets at end of year $ 14,843 $ 16,729 $ — $ — Funded status of the plan $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ 804 $ 1,139 $ — $ — Current liabilities — — (59 ) (103 ) Noncurrent liabilities — — (1,487 ) (1,619 ) Net amounts recognized $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in accumulated other comprehensive income Net transition obligation $ — $ — $ 12 $ 37 Prior service cost 97 158 — — Net actuarial loss 4,329 4,095 122 200 Total amount recognized $ 4,426 $ 4,253 $ 134 $ 237 Deferred taxes (1,107 ) (1,063 ) (34 ) (59 ) Net amount recognized $ 3,319 $ 3,190 $ 100 $ 178 |
Schedule of Amounts Recognized in Balance Sheet | U.S. Plans Obligations and Funded Status—U.S. Plans At December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in benefit obligation Benefit obligation at beginning of year $ 2,662 $ 2,473 $ 3,250 $ 2,974 Service cost — — 144 123 Interest cost 94 100 114 118 Actuarial loss (gain) (219 ) 154 108 151 Benefits paid (76 ) (65 ) (126 ) (116 ) Benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in plan assets Fair value of plan assets at beginning of year $ 2,628 $ 2,263 $ — $ — Actual return on plan assets (164 ) 430 — — Employer contributions — — 126 116 Benefits paid (76 ) (65 ) (126 ) (116 ) Fair value of plan assets at end of year $ 2,388 $ 2,628 $ — $ — Funded status of the plan $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ — $ — $ — $ — Current liabilities — — (248 ) (151 ) Noncurrent liabilities (73 ) (34 ) (3,242 ) (3,099 ) Net amounts recognized $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in accumulated other comprehensive income Prior service (credit) cost $ — $ — $ — $ — Net actuarial (gain) loss 73 (22 ) (1,635 ) (1,911 ) Total amount recognized $ 73 $ (22 ) $ (1,635 ) $ (1,911 ) Deferred taxes (18 ) 5 398 758 Net amount recognized $ 55 $ (17 ) $ (1,237 ) $ (1,153 ) Canadian Plans Obligations and Funded Status—Canadian Plans at December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in benefit obligation Benefit obligation at beginning of year $ 15,590 $ 13,128 $ 1,722 $ 1,379 Service cost 439 383 63 51 Interest cost 515 517 57 55 Past service cost — 153 — — Actuarial (gain) loss (502 ) 886 (61 ) 181 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,228 ) 1,008 (135 ) 109 Benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in plan assets Fair value of plan assets at beginning of year $ 16,729 $ 14,798 $ — $ — Actual return on plan assets (484 ) 1,308 — — Employer contributions 679 — 100 53 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,306 ) 1,108 — — Fair value of plan assets at end of year $ 14,843 $ 16,729 $ — $ — Funded status of the plan $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ 804 $ 1,139 $ — $ — Current liabilities — — (59 ) (103 ) Noncurrent liabilities — — (1,487 ) (1,619 ) Net amounts recognized $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in accumulated other comprehensive income Net transition obligation $ — $ — $ 12 $ 37 Prior service cost 97 158 — — Net actuarial loss 4,329 4,095 122 200 Total amount recognized $ 4,426 $ 4,253 $ 134 $ 237 Deferred taxes (1,107 ) (1,063 ) (34 ) (59 ) Net amount recognized $ 3,319 $ 3,190 $ 100 $ 178 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Canadian Plans Obligations and Funded Status—Canadian Plans at December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in benefit obligation Benefit obligation at beginning of year $ 15,590 $ 13,128 $ 1,722 $ 1,379 Service cost 439 383 63 51 Interest cost 515 517 57 55 Past service cost — 153 — — Actuarial (gain) loss (502 ) 886 (61 ) 181 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,228 ) 1,008 (135 ) 109 Benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in plan assets Fair value of plan assets at beginning of year $ 16,729 $ 14,798 $ — $ — Actual return on plan assets (484 ) 1,308 — — Employer contributions 679 — 100 53 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,306 ) 1,108 — — Fair value of plan assets at end of year $ 14,843 $ 16,729 $ — $ — Funded status of the plan $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ 804 $ 1,139 $ — $ — Current liabilities — — (59 ) (103 ) Noncurrent liabilities — — (1,487 ) (1,619 ) Net amounts recognized $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in accumulated other comprehensive income Net transition obligation $ — $ — $ 12 $ 37 Prior service cost 97 158 — — Net actuarial loss 4,329 4,095 122 200 Total amount recognized $ 4,426 $ 4,253 $ 134 $ 237 Deferred taxes (1,107 ) (1,063 ) (34 ) (59 ) Net amount recognized $ 3,319 $ 3,190 $ 100 $ 178 U.S. Plans Obligations and Funded Status—U.S. Plans At December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in benefit obligation Benefit obligation at beginning of year $ 2,662 $ 2,473 $ 3,250 $ 2,974 Service cost — — 144 123 Interest cost 94 100 114 118 Actuarial loss (gain) (219 ) 154 108 151 Benefits paid (76 ) (65 ) (126 ) (116 ) Benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in plan assets Fair value of plan assets at beginning of year $ 2,628 $ 2,263 $ — $ — Actual return on plan assets (164 ) 430 — — Employer contributions — — 126 116 Benefits paid (76 ) (65 ) (126 ) (116 ) Fair value of plan assets at end of year $ 2,388 $ 2,628 $ — $ — Funded status of the plan $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ — $ — $ — $ — Current liabilities — — (248 ) (151 ) Noncurrent liabilities (73 ) (34 ) (3,242 ) (3,099 ) Net amounts recognized $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in accumulated other comprehensive income Prior service (credit) cost $ — $ — $ — $ — Net actuarial (gain) loss 73 (22 ) (1,635 ) (1,911 ) Total amount recognized $ 73 $ (22 ) $ (1,635 ) $ (1,911 ) Deferred taxes (18 ) 5 398 758 Net amount recognized $ 55 $ (17 ) $ (1,237 ) $ (1,153 ) |
Schedule of Accumulated and Projected Benefit Obligations | U.S. Plans Obligations and Funded Status—U.S. Plans At December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in benefit obligation Benefit obligation at beginning of year $ 2,662 $ 2,473 $ 3,250 $ 2,974 Service cost — — 144 123 Interest cost 94 100 114 118 Actuarial loss (gain) (219 ) 154 108 151 Benefits paid (76 ) (65 ) (126 ) (116 ) Benefit obligation at end of year $ 2,461 $ 2,662 $ 3,490 $ 3,250 Change in plan assets Fair value of plan assets at beginning of year $ 2,628 $ 2,263 $ — $ — Actual return on plan assets (164 ) 430 — — Employer contributions — — 126 116 Benefits paid (76 ) (65 ) (126 ) (116 ) Fair value of plan assets at end of year $ 2,388 $ 2,628 $ — $ — Funded status of the plan $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ — $ — $ — $ — Current liabilities — — (248 ) (151 ) Noncurrent liabilities (73 ) (34 ) (3,242 ) (3,099 ) Net amounts recognized $ (73 ) $ (34 ) $ (3,490 ) $ (3,250 ) Amounts recognized in accumulated other comprehensive income Prior service (credit) cost $ — $ — $ — $ — Net actuarial (gain) loss 73 (22 ) (1,635 ) (1,911 ) Total amount recognized $ 73 $ (22 ) $ (1,635 ) $ (1,911 ) Deferred taxes (18 ) 5 398 758 Net amount recognized $ 55 $ (17 ) $ (1,237 ) $ (1,153 ) Canadian Plans Obligations and Funded Status—Canadian Plans at December 31 Pension Benefits Other Benefits 2018 2017 2018 2017 Accumulated benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in benefit obligation Benefit obligation at beginning of year $ 15,590 $ 13,128 $ 1,722 $ 1,379 Service cost 439 383 63 51 Interest cost 515 517 57 55 Past service cost — 153 — — Actuarial (gain) loss (502 ) 886 (61 ) 181 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,228 ) 1,008 (135 ) 109 Benefit obligation at end of year $ 14,039 $ 15,590 $ 1,546 $ 1,722 Change in plan assets Fair value of plan assets at beginning of year $ 16,729 $ 14,798 $ — $ — Actual return on plan assets (484 ) 1,308 — — Employer contributions 679 — 100 53 Benefits paid (775 ) (485 ) (100 ) (53 ) Foreign currency exchange rate changes (1,306 ) 1,108 — — Fair value of plan assets at end of year $ 14,843 $ 16,729 $ — $ — Funded status of the plan $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in the consolidated balance sheets Noncurrent assets $ 804 $ 1,139 $ — $ — Current liabilities — — (59 ) (103 ) Noncurrent liabilities — — (1,487 ) (1,619 ) Net amounts recognized $ 804 $ 1,139 $ (1,546 ) $ (1,722 ) Amounts recognized in accumulated other comprehensive income Net transition obligation $ — $ — $ 12 $ 37 Prior service cost 97 158 — — Net actuarial loss 4,329 4,095 122 200 Total amount recognized $ 4,426 $ 4,253 $ 134 $ 237 Deferred taxes (1,107 ) (1,063 ) (34 ) (59 ) Net amount recognized $ 3,319 $ 3,190 $ 100 $ 178 |
Schedule of Net Benefit Costs | Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ — $ — $ — $ 144 $ 123 $ 172 Interest cost 94 100 114 114 118 165 Expected return on plan assets (150 ) (140 ) (145 ) — — — Amortization of: Actuarial loss (gain) — — — (168 ) (211 ) (100 ) Net periodic benefit cost $ (56 ) $ (40 ) $ (31 ) $ 90 $ 30 $ 237 Weighted average assumptions for benefit obligation Discount rate 4.22 % 3.60 % 4.16 % 4.04 % 3.66 % 4.22 % Expected long-term rate of return on plan assets 6.51 % 6.30 % 6.20 % NA NA NA Rate of compensation increase NA NA NA 4.00 % 4.00 % 3.75 % Weighted average assumptions for net periodic benefit cost Discount rate 3.60 % 4.16 % 4.50 % 3.66 % 4.22 % 4.25 % Expected long-term rate of return on plan assets 6.30 % 6.20 % 6.51 % NA NA NA Rate of compensation increase NA NA NA 4.00 % 3.75 % 3.75 % Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 439 $ 383 $ 362 $ 63 $ 51 $ 49 Interest cost 515 517 489 57 55 51 Expected return on plan assets (796 ) (819 ) (768 ) — — — Amortization of: Actuarial loss 188 177 207 4 — — Prior service cost 51 108 106 — — — Net transition obligation — — — 24 23 23 Net periodic benefit cost $ 397 $ 366 $ 396 $ 148 $ 129 $ 123 Weighted average assumptions for balance sheet liability at end of year Discount rate 3.64 % 3.37 % 3.75 % 3.64 % 3.37 % 3.75 % Rate of compensation increase NA NA NA NA NA NA Weighted average assumptions for net periodic benefit cost at end of year Discount rate 3.37 % 3.75 % 3.75 % 3.37 % 3.75 % 3.75 % Expected long-term rate of return 5.00 % 5.50 % 5.50 % NA NA NA Rate of compensation increase NA NA NA NA NA NA Accrued health care cost trend rates at end of year Health care cost trend rate assumed for next year (initial rate) 7 % 8 % 9 % Rate to which the cost trend rate is assumed to decline (ultimate rate) 5 % 5 % 5 % Year that the rate reaches the ultimate rate 2030 2030 2033 |
Schedule of Assumptions Used | Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ — $ — $ — $ 144 $ 123 $ 172 Interest cost 94 100 114 114 118 165 Expected return on plan assets (150 ) (140 ) (145 ) — — — Amortization of: Actuarial loss (gain) — — — (168 ) (211 ) (100 ) Net periodic benefit cost $ (56 ) $ (40 ) $ (31 ) $ 90 $ 30 $ 237 Weighted average assumptions for benefit obligation Discount rate 4.22 % 3.60 % 4.16 % 4.04 % 3.66 % 4.22 % Expected long-term rate of return on plan assets 6.51 % 6.30 % 6.20 % NA NA NA Rate of compensation increase NA NA NA 4.00 % 4.00 % 3.75 % Weighted average assumptions for net periodic benefit cost Discount rate 3.60 % 4.16 % 4.50 % 3.66 % 4.22 % 4.25 % Expected long-term rate of return on plan assets 6.30 % 6.20 % 6.51 % NA NA NA Rate of compensation increase NA NA NA 4.00 % 3.75 % 3.75 % Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 439 $ 383 $ 362 $ 63 $ 51 $ 49 Interest cost 515 517 489 57 55 51 Expected return on plan assets (796 ) (819 ) (768 ) — — — Amortization of: Actuarial loss 188 177 207 4 — — Prior service cost 51 108 106 — — — Net transition obligation — — — 24 23 23 Net periodic benefit cost $ 397 $ 366 $ 396 $ 148 $ 129 $ 123 Weighted average assumptions for balance sheet liability at end of year Discount rate 3.64 % 3.37 % 3.75 % 3.64 % 3.37 % 3.75 % Rate of compensation increase NA NA NA NA NA NA Weighted average assumptions for net periodic benefit cost at end of year Discount rate 3.37 % 3.75 % 3.75 % 3.37 % 3.75 % 3.75 % Expected long-term rate of return 5.00 % 5.50 % 5.50 % NA NA NA Rate of compensation increase NA NA NA NA NA NA Accrued health care cost trend rates at end of year Health care cost trend rate assumed for next year (initial rate) 7 % 8 % 9 % Rate to which the cost trend rate is assumed to decline (ultimate rate) 5 % 5 % 5 % Year that the rate reaches the ultimate rate 2030 2030 2033 |
Schedule of Expected Benefit Payments | Estimated Future Benefit Payments Pension Benefits Other Benefits Fiscal 2019 $ 98 $ 248 Fiscal 2020 109 254 Fiscal 2021 116 268 Fiscal 2022 130 284 Fiscal 2023 138 289 Fiscal Years 2024-2028 751 1,290 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Estimated Future Benefit Payments Pension Benefits Other Benefits Fiscal 2019 $ 541 $ 59 Fiscal 2020 577 72 Fiscal 2021 617 92 Fiscal 2022 670 95 Fiscal 2023 712 100 Fiscal Years 2024-2028 4,034 480 |
Schedule of Allocation of Plan Assets | Innophos, Inc.’s defined benefit pension plan invests in mutual funds and commercial paper and the weighted-average asset allocations at December 31, 2018 and 2017 by asset category are as follows: Plan Assets at December 31 2018 2017 Asset Category Equity securities 92.3 % 92.9 % Fixed income securities 7.7 7.1 Total 100.0 % 100.0 % The fair values of Innophos, Inc.’s pension plan assets at December 31, 2018 by asset category are as follows: Total Level 1 Level 2 Level 3 Equity securities $ 2,204 $ 2,204 $ — $ — Fixed income securities 184 184 — — $ 2,388 $ 2,388 $ — $ — Innophos Canada Inc.’s pension plan invests in mutual funds and the weighted-average asset allocations at December 31, 2018 and 2017 by asset category are as follows: 2018 2017 Asset Category Equity securities 49.1 % 51.6 % Fixed income securities 48.9 44.8 Other 2.0 3.6 Total 100.0 % 100.0 % The fair values of Innophos Canada, Inc.’s pension plan assets at December 31, 2018 by asset category are as follows: Total Level 1 Level 2 Level 3 Equity securities $ 7,287 $ 7,287 $ — $ — Fixed income securities 7,257 — 7,257 — Other 299 — 299 — $ 14,843 $ 7,287 $ 7,556 $ — |
Schedule of Health Care Cost Trend Rates | Pension Benefits Other Benefits 2018 2017 2016 2018 2017 2016 Components of net periodic benefit cost Service cost $ 439 $ 383 $ 362 $ 63 $ 51 $ 49 Interest cost 515 517 489 57 55 51 Expected return on plan assets (796 ) (819 ) (768 ) — — — Amortization of: Actuarial loss 188 177 207 4 — — Prior service cost 51 108 106 — — — Net transition obligation — — — 24 23 23 Net periodic benefit cost $ 397 $ 366 $ 396 $ 148 $ 129 $ 123 Weighted average assumptions for balance sheet liability at end of year Discount rate 3.64 % 3.37 % 3.75 % 3.64 % 3.37 % 3.75 % Rate of compensation increase NA NA NA NA NA NA Weighted average assumptions for net periodic benefit cost at end of year Discount rate 3.37 % 3.75 % 3.75 % 3.37 % 3.75 % 3.75 % Expected long-term rate of return 5.00 % 5.50 % 5.50 % NA NA NA Rate of compensation increase NA NA NA NA NA NA Accrued health care cost trend rates at end of year Health care cost trend rate assumed for next year (initial rate) 7 % 8 % 9 % Rate to which the cost trend rate is assumed to decline (ultimate rate) 5 % 5 % 5 % Year that the rate reaches the ultimate rate 2030 2030 2033 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: Other Benefits 2018 2017 Effect of a change in the assumed rate of increase in health benefit costs Effect of a 1% increase on: Total of service cost and interest cost $ 23 $ 24 Post-retirement benefit obligation $ 211 $ 221 Effect of a 1% decrease on: Total of service cost and interest cost $ (17 ) $ (18 ) Post-retirement benefit obligation $ (169 ) $ (177 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of the U.S. Statutory Rate and Income Taxes | A reconciliation of the U.S. statutory rate and income taxes follows: Year Ended December 31, 2018 2017 2016 Income before income taxes Income tax expense Income before income taxes Income tax expense Income before income taxes Income tax expense/ (benefit) U.S. $ 17,940 $ (3,062 ) $ 8,026 $ 20,230 $ 24,727 $ 10,989 Canada/Mexico/Europe/Asia 25,292 10,223 48,611 13,962 45,591 11,358 Total $ 43,232 $ 7,161 $ 56,637 $ 34,192 $ 70,318 $ 22,347 Current income taxes $ (2,467 ) $ 23,781 $ 12,813 Deferred income taxes 9,628 10,411 9,534 Total $ 7,161 $ 34,192 $ 22,347 |
Reconciliation of the U.S. Statutory Rate and Income Taxes | A reconciliation of the U.S. statutory rate and income taxes follows: Year Ended December 31, 2018 2017 2016 Income before income taxes Income tax expense Income before income taxes Income tax expense Income before income taxes Income tax expense/ (benefit) U.S. $ 17,940 $ (3,062 ) $ 8,026 $ 20,230 $ 24,727 $ 10,989 Canada/Mexico/Europe/Asia 25,292 10,223 48,611 13,962 45,591 11,358 Total $ 43,232 $ 7,161 $ 56,637 $ 34,192 $ 70,318 $ 22,347 Current income taxes $ (2,467 ) $ 23,781 $ 12,813 Deferred income taxes 9,628 10,411 9,534 Total $ 7,161 $ 34,192 $ 22,347 |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31, 2018 2017 2016 Income tax expense at the U.S. statutory rate $ 9,079 $ 19,824 $ 24,611 State income taxes 67 741 862 Foreign tax rate differential 1,885 (1,606 ) (1,549 ) Non-taxable interest expense (income) 3,370 (5,951 ) (5,582 ) Change in valuation allowance (4,498 ) 1,984 (168 ) U.S. Tax Cuts and Jobs Act of 2017 (5,443 ) 17,286 — Global intangible low-taxed income 843 — — Uncertain tax positions (792 ) — 736 Currency related tax adjustments 1,951 870 (629 ) Other non-deductible permanent items 699 1,044 4,066 Provision for income taxes $ 7,161 $ 34,192 $ 22,347 |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax balances were reflected on the consolidated balance sheets as follows: Year Ended December 31, 2018 2017 Net noncurrent deferred tax assets $ — $ 5,058 Net noncurrent deferred tax liabilities (5,113 ) (2,354 ) Net deferred tax assets $ (5,113 ) $ 2,704 The components of the Company’s deferred tax assets/ (liabilities) were as follows: Year Ended December 31, 2018 2017 Deferred tax assets: Inventories $ 5,483 $ 3,427 Accrued liabilities 15,061 7,472 Tax credits 2,249 3,846 Tax losses 5,664 22,196 Total deferred tax assets 28,457 36,941 Deferred tax liabilities: Gain on bond retirement — (170 ) Intangibles (11,574 ) (11,012 ) Fixed assets (13,799 ) (10,809 ) Accrued liabilities (2,249 ) (1,800 ) Total deferred tax liabilities (27,622 ) (23,791 ) Total valuation allowances (5,948 ) (10,446 ) Net deferred tax assets (liabilities) $ (5,113 ) $ 2,704 |
Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: Year Ended December 31, 2018 2017 2016 Gross unrecognized tax benefits at January 1 $ 2,679 $ 2,679 $ 3,121 Additions for tax positions of prior years — — 973 Reductions for tax positions of prior years (939 ) — — Reductions due to settlements (1,420 ) — (1,415 ) Gross unrecognized tax benefits at December 31 320 2,679 2,679 Net uncertain tax benefits, that if recognized would impact the effective tax rate, at December 31 $ 253 $ 2,116 $ 1,741 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum annual rentals for all operating leases are: Year Ending Lease Payments 2019 $ 8,259 2020 7,130 2021 6,490 2022 6,032 2023 5,467 Thereafter 33,957 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Pension and Other Post-retirement Adjustments Changes in Fair Value of Effective Cash Flow Hedges Total Balance at December 31, 2016 $ (1,493 ) $ 9 $ (1,484 ) Other comprehensive income (loss) before reclassifications (412 ) (9 ) (421 ) Amounts reclassified from accumulated other comprehensive income (loss) (293 ) — (293 ) Net current period other comprehensive income (loss) (705 ) (9 ) (714 ) Balance at December 31, 2017 (2,198 ) — (2,198 ) Other comprehensive income (loss) before reclassifications (344 ) (767 ) (1,111 ) Amounts reclassified from accumulated other comprehensive income (loss) 293 — 293 Net current period other comprehensive income (loss) (51 ) (767 ) (818 ) Balance at December 31, 2018 $ (2,249 ) $ (767 ) $ (3,016 ) |
Valuation Allowances (Tables)
Valuation Allowances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Summary of Valuation Allowance | Valuation allowances as of December 31, 2018 , 2017 and 2016 , and the changes in the valuation allowances for the year ended December 31, 2018 , 2017 and 2016 are as follows: Balance, January, 1 2018 Charged/ (credited) to costs and expenses Deductions (Bad debts) (Credited) to Goodwill Balance, December 31, 2018 Deferred taxes valuation allowances $ 10,446 $ (4,498 ) $ — $ — $ 5,948 Balance, January, 1 2017 Charged/ (credited) to costs and expenses Deductions (Bad debts) (Credited) to Goodwill Balance, December 31, 2017 Deferred taxes valuation allowances $ 8,462 $ 1,984 $ — $ — $ 10,446 Balance, January, 1 2016 Charged/ (credited) to costs and expenses Deductions (Bad debts) (Credited) to Goodwill Balance, December 31, 2016 Deferred taxes valuation allowances $ 8,630 $ (168 ) $ — $ — $ 8,462 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | For the year ended December 31, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 480,166 $ 260,605 $ 61,071 $ 801,842 EBITDA $ 61,791 $ 34,124 $ 5,771 $ 101,686 Depreciation and amortization expense $ 28,695 $ 14,347 $ 1,889 $ 44,931 Other data Capital expenditures $ 37,368 $ 17,886 $ 1,491 $ 56,745 Long-lived assets $ 142,659 $ 88,468 $ 9,108 $ 240,235 Total assets $ 601,030 $ 190,823 $ 23,301 $ 815,154 For the year ended December 31, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 397,298 $ 262,704 $ 62,022 $ 722,024 EBITDA $ 67,156 $ 33,833 $ 3,060 $ 104,049 Depreciation and amortization expense $ 24,212 $ 13,863 $ 2,329 $ 40,404 Other data Capital expenditures $ 23,556 $ 10,820 $ 483 $ 34,859 Long-lived assets $ 130,705 $ 71,925 $ 16,667 $ 219,297 Total assets (b) $ 556,479 $ 190,700 $ 37,990 $ 785,169 For the year ended December 31, 2016 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 376,672 $ 278,284 $ 70,389 $ 725,345 EBITDA (a) $ 78,128 $ 36,029 $ 1,309 $ 115,466 Depreciation and amortization expense $ 20,269 $ 12,645 $ 4,565 $ 37,479 Other data Capital expenditures $ 19,181 $ 15,866 $ 1,552 $ 36,599 Long-lived assets $ 124,664 $ 72,727 $ 8,068 $ 205,459 Total assets $ 397,575 $ 210,680 $ 34,756 $ 643,011 (a) The year ended December 31, 2016 includes a $1.5 million charge to earnings for restructuring reserves in Other. (b) The increase in total assets in the Food, Health and Nutrition segment is largely due to the Novel Ingredients and NutraGenesis acquisitions. |
Reconciliation of Assets from Segment to Consolidated | For the year ended December 31, 2018 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 480,166 $ 260,605 $ 61,071 $ 801,842 EBITDA $ 61,791 $ 34,124 $ 5,771 $ 101,686 Depreciation and amortization expense $ 28,695 $ 14,347 $ 1,889 $ 44,931 Other data Capital expenditures $ 37,368 $ 17,886 $ 1,491 $ 56,745 Long-lived assets $ 142,659 $ 88,468 $ 9,108 $ 240,235 Total assets $ 601,030 $ 190,823 $ 23,301 $ 815,154 For the year ended December 31, 2017 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 397,298 $ 262,704 $ 62,022 $ 722,024 EBITDA $ 67,156 $ 33,833 $ 3,060 $ 104,049 Depreciation and amortization expense $ 24,212 $ 13,863 $ 2,329 $ 40,404 Other data Capital expenditures $ 23,556 $ 10,820 $ 483 $ 34,859 Long-lived assets $ 130,705 $ 71,925 $ 16,667 $ 219,297 Total assets (b) $ 556,479 $ 190,700 $ 37,990 $ 785,169 For the year ended December 31, 2016 Food, Health and Nutrition Industrial Specialties Other Total Sales $ 376,672 $ 278,284 $ 70,389 $ 725,345 EBITDA (a) $ 78,128 $ 36,029 $ 1,309 $ 115,466 Depreciation and amortization expense $ 20,269 $ 12,645 $ 4,565 $ 37,479 Other data Capital expenditures $ 19,181 $ 15,866 $ 1,552 $ 36,599 Long-lived assets $ 124,664 $ 72,727 $ 8,068 $ 205,459 Total assets $ 397,575 $ 210,680 $ 34,756 $ 643,011 (a) The year ended December 31, 2016 includes a $1.5 million charge to earnings for restructuring reserves in Other. (b) The increase in total assets in the Food, Health and Nutrition segment is largely due to the Novel Ingredients and NutraGenesis acquisitions. |
Reconciliation Of Net Income (Loss) To EBITDA | A reconciliation of net income to EBITDA follows: 2018 2017 2016 Net income $ 36,071 $ 22,445 $ 47,971 Provision for income taxes 7,161 34,192 22,347 Interest expense, net 13,523 7,008 7,669 Depreciation and amortization 44,931 40,404 37,479 EBITDA $ 101,686 $ 104,049 $ 115,466 |
Product Revenues | Year Ended December 31, Product Revenues 2018 2017 2016 Specialty Ingredients $ 567,064 $ 490,256 $ 456,465 Core Ingredients 183,872 174,819 200,560 Co-Products and Other 50,906 56,949 68,320 Total $ 801,842 $ 722,024 $ 725,345 Year Ended December 31, Geographic Revenues 2018 2017 2016 U.S. $ 517,782 $ 450,171 $ 418,411 Mexico 137,289 125,116 123,885 Canada 32,666 31,993 32,391 Other foreign countries 114,105 114,744 150,658 Total $ 801,842 $ 722,024 $ 725,345 Year Ended December 31, Geographic Long-lived Assets 2018 2017 2016 U.S. $ 127,788 $ 113,795 $ 104,118 Mexico 99,403 91,414 85,698 Canada 11,510 12,293 13,575 Other foreign countries 1,534 1,795 2,068 Total $ 240,235 $ 219,297 $ 205,459 |
Geographic Revenues | Year Ended December 31, Product Revenues 2018 2017 2016 Specialty Ingredients $ 567,064 $ 490,256 $ 456,465 Core Ingredients 183,872 174,819 200,560 Co-Products and Other 50,906 56,949 68,320 Total $ 801,842 $ 722,024 $ 725,345 Year Ended December 31, Geographic Revenues 2018 2017 2016 U.S. $ 517,782 $ 450,171 $ 418,411 Mexico 137,289 125,116 123,885 Canada 32,666 31,993 32,391 Other foreign countries 114,105 114,744 150,658 Total $ 801,842 $ 722,024 $ 725,345 Year Ended December 31, Geographic Long-lived Assets 2018 2017 2016 U.S. $ 127,788 $ 113,795 $ 104,118 Mexico 99,403 91,414 85,698 Canada 11,510 12,293 13,575 Other foreign countries 1,534 1,795 2,068 Total $ 240,235 $ 219,297 $ 205,459 |
Quarterly information (unaudi_2
Quarterly information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Quarters ended March 31 June 30 September 30 December 31 Total Net sales $ 205,440 $ 206,725 $ 196,934 $ 192,743 $ 801,842 Gross profit 42,227 36,385 35,228 29,551 143,391 Net income (loss) 10,915 6,246 14,090 4,820 36,071 Per share data: Income per share: Basic $ 0.56 $ 0.32 $ 0.72 $ 0.25 Diluted $ 0.55 $ 0.31 $ 0.71 $ 0.24 2017 Quarters ended March 31 June 30 September 30 December 31 Total Net sales $ 165,944 $ 179,140 $ 183,839 $ 193,101 $ 722,024 Gross profit 36,543 39,076 40,969 32,441 149,029 Net income (loss) (a) 10,923 11,223 11,582 (11,283 ) 22,445 Per share data: Income per share: Basic $ 0.56 $ 0.58 $ 0.59 $ (0.58 ) Diluted $ 0.55 $ 0.57 $ 0.58 $ (0.58 ) (a) The three months ended December 31, 2017 include a $17.3 million charge to income taxes for the impacts of the Tax Act. |
Basis of Statement Presentati_3
Basis of Statement Presentation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accounts payable | $ 9,471 | $ (3,497) | $ 14,703 | |
Net Cash Provided by (Used in) Operating Activities | 73,612 | 73,989 | 139,109 | |
Capital expenditures | (56,745) | (34,859) | (36,599) | |
Net Cash Provided by (Used in) Investing Activities | (33,970) | (184,830) | (36,599) | |
Accrued additions to plant assets | $ 9,400 | 9,570 | $ 2,942 | |
Intangible assets, useful life | 20 years | |||
Effect of U.S. enacted Tax Cuts and Jobs Act | [1] | $ (293) | 293 | |
Minimum | Building and Building Improvements | ||||
Property, plant and equipment, useful life | 10 years | |||
Minimum | Machinery and Equipment | ||||
Property, plant and equipment, useful life | 5 years | |||
Minimum | Software | ||||
Property, plant and equipment, useful life | 3 years | |||
Maximum | Building and Building Improvements | ||||
Property, plant and equipment, useful life | 20 years | |||
Maximum | Machinery and Equipment | ||||
Property, plant and equipment, useful life | 15 years | |||
Maximum | Software | ||||
Property, plant and equipment, useful life | 7 years | |||
Innophos, Inc. | Innophos, Inc. | ||||
Ownership percentage | 100.00% | |||
Previously Reported | ||||
Accounts payable | 3,131 | |||
Net Cash Provided by (Used in) Operating Activities | 80,617 | |||
Capital expenditures | (41,487) | |||
Net Cash Provided by (Used in) Investing Activities | (191,458) | |||
Restatement Adjustment | ||||
Accounts payable | (6,628) | |||
Net Cash Provided by (Used in) Operating Activities | (6,628) | |||
Capital expenditures | 6,628 | |||
Net Cash Provided by (Used in) Investing Activities | 6,628 | |||
Accrued additions to plant assets | $ 9,570 | |||
[1] | Includes the impact of ASU 2018-02, which transferred those amounts from accumulated other comprehensive income (loss) to retained earnings. See Notes 1 and 18 to the Consolidated Financial Statements. |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Nov. 03, 2017 | Aug. 25, 2017 | Jan. 01, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||||||||||
Operating loss carryforwards | $ 5,664 | $ 22,196 | $ 5,664 | $ 22,196 | ||||||||||
Goodwill | 152,767 | 152,700 | $ 152,767 | 152,700 | $ 84,373 | |||||||||
Weighted average useful life | 17 years 5 months | |||||||||||||
Net income | 4,820 | $ 14,090 | $ 6,246 | $ 10,915 | $ (11,283) | $ 11,582 | $ 11,223 | $ 10,923 | $ 36,071 | $ 22,445 | $ 47,971 | |||
Novel Ingredients and NutraGenesis | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill expected to be tax deductible | $ 24,000 | |||||||||||||
Goodwill | $ 68,400 | |||||||||||||
Pro forma depreciation and amortization expense | 5,000 | |||||||||||||
Pro forma interest expense | 4,400 | |||||||||||||
Acquisition related costs | 3,100 | |||||||||||||
Integration related costs | 2,100 | |||||||||||||
Novel Ingredients | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Interest acquired | 100.00% | |||||||||||||
Cash payment to acquire business | $ 125,000 | |||||||||||||
Working capital adjustments | 1,300 | |||||||||||||
Consideration transferred | 123,700 | |||||||||||||
Revenue of acquiree since acquisition date | 36,700 | |||||||||||||
Net loss attributable to acquiree since acquisition date | 2,300 | |||||||||||||
Operating loss carryforwards | $ 16,400 | $ 16,400 | ||||||||||||
Goodwill | $ 54,008 | |||||||||||||
NutraGenesis | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash payment to acquire business | $ 27,400 | |||||||||||||
Working capital adjustments | 100 | |||||||||||||
Consideration transferred | 27,300 | |||||||||||||
Goodwill | $ 14,387 | |||||||||||||
Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted average useful life | 19 years 1 month | |||||||||||||
Trade Names | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted average useful life | 7 years 11 months | |||||||||||||
Fair Value Adjustment to Inventory | Novel Ingredients and NutraGenesis | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net income | $ (4,300) |
Acquisitions - Fair Value of As
Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 03, 2017 | Aug. 25, 2017 | |
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 152,767 | $ 152,700 | $ 152,767 | $ 152,700 | $ 84,373 | ||||||||
Net income | $ 4,820 | $ 14,090 | $ 6,246 | $ 10,915 | $ (11,283) | $ 11,582 | $ 11,223 | $ 10,923 | $ 36,071 | $ 22,445 | $ 47,971 | ||
Novel Ingredients | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
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 | ||||||||||||
Goodwill | 54,008 | ||||||||||||
Other current assets | 1,655 | ||||||||||||
Property, plant and equipment | 4,261 | ||||||||||||
Other non-current assets | 187 | ||||||||||||
Intangible assets | 52,900 | ||||||||||||
Accounts payable | 14,726 | ||||||||||||
Accrued expenses | 3,910 | ||||||||||||
Deferred income taxes | (5,067) | ||||||||||||
Customer Deposits | 0 | ||||||||||||
Total | $ 123,789 | ||||||||||||
NutraGenesis | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
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 | ||||||||||||
Goodwill | 14,387 | ||||||||||||
Other current assets | 638 | ||||||||||||
Property, plant and equipment | 0 | ||||||||||||
Other non-current assets | 0 | ||||||||||||
Intangible assets | 13,699 | ||||||||||||
Accounts payable | 793 | ||||||||||||
Accrued expenses | 524 | ||||||||||||
Deferred income taxes | (151) | ||||||||||||
Customer Deposits | (875) | ||||||||||||
Total | $ 27,313 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Nov. 03, 2017 | Aug. 25, 2017 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, useful life | 20 years | ||
Novel Ingredients | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 52,900 | ||
Novel Ingredients | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 46,200 | ||
Novel Ingredients | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 6,700 | ||
NutraGenesis | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 13,699 | ||
NutraGenesis | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | 10,499 | ||
NutraGenesis | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 3,200 | ||
Minimum | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, useful life | 5 years | ||
Maximum | Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, useful life | 20 years |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - Novel Ingredients and NutraGenesis - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 792,600 | $ 812,447 |
Net income | $ 22,011 | $ 41,711 |
Income per common share - Basic (in dollars per share) | $ 1.13 | $ 2.16 |
Income per common share - Diluted (in dollars per share) | $ 1.12 | $ 2.13 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 801,842 | $ 722,024 |
Specialty Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 567,064 | 490,256 |
Core Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 183,872 | 174,819 |
Co-Products & Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 50,906 | 56,949 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 517,782 | 450,171 |
U.S. | Specialty Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 429,679 | 358,816 |
U.S. | Core Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 55,780 | 56,841 |
U.S. | Co-Products & Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32,323 | 34,514 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32,666 | 31,993 |
Canada | Specialty Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 24,386 | 23,435 |
Canada | Core Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,926 | 8,224 |
Canada | Co-Products & Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 354 | 334 |
Mexico | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 137,289 | 125,116 |
Mexico | Specialty Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 35,530 | 37,365 |
Mexico | Core Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 84,101 | 78,757 |
Mexico | Co-Products & Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17,658 | 8,994 |
Other Countries | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 114,105 | 114,744 |
Other Countries | Specialty Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 77,469 | 70,640 |
Other Countries | Core Ingredients | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 36,065 | 30,997 |
Other Countries | Co-Products & Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 571 | $ 13,107 |
Restructuring and Management Tr
Restructuring and Management Transition Costs - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 217 | $ 1,719 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 46,147 | $ 48,445 |
Finished products | 119,407 | 83,634 |
Spare parts | 14,649 | 13,606 |
Inventory, Net | 180,203 | 145,685 |
Inventory valuation reserves | $ 14,327 | $ 16,168 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Creditable taxes (value added taxes) | $ 11,944 | $ 7,285 |
Vendor inventory deposits (prepaid) | 454 | 7,807 |
Prepaid income taxes | 6,658 | 3,394 |
Prepaid insurance | 2,605 | 2,492 |
Other | 2,433 | 3,991 |
Other current assets | $ 24,094 | $ 24,969 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Gross | $ 741,997 | $ 741,997 | $ 696,139 | |
Accumulated Depreciation | 501,762 | 501,762 | 476,842 | |
Net Book Value | 240,235 | 240,235 | 219,297 | $ 205,459 |
Depreciation expense | $ 30,723 | 32,023 | $ 30,255 | |
Proceeds from sale of building in sale leaseback transaction | $ 23,000 | |||
Lessee lease term (in years) | 20 years | 20 years | ||
Deferred gain on sale of property | $ 15,900 | $ 15,900 | ||
Sale leaseback transaction, annual rental payments | 1,500 | |||
Subsequent rent increases every five years, percent | 10.00% | |||
Land | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Gross | $ 18,453 | 18,453 | 18,453 | |
Accumulated Depreciation | 0 | 0 | 0 | |
Net Book Value | 18,453 | 18,453 | 18,453 | |
Land Improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Gross | 28,260 | 28,260 | 11,861 | |
Accumulated Depreciation | 10,019 | 10,019 | 9,855 | |
Net Book Value | 18,241 | 18,241 | 2,006 | |
Building and Building Improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Gross | 99,326 | 99,326 | 104,004 | |
Accumulated Depreciation | 54,795 | 54,795 | 54,571 | |
Net Book Value | 44,531 | 44,531 | 49,433 | |
Machinery and Equipment | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Gross | 551,226 | 551,226 | 501,908 | |
Accumulated Depreciation | 410,521 | 410,521 | 388,905 | |
Net Book Value | 140,705 | 140,705 | 113,003 | |
Software Development | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Capitalized Computer Software, Gross | 28,554 | 28,554 | 28,260 | |
Capitalized software | 2,127 | 2,127 | 4,749 | |
Accumulated Depreciation | 26,427 | 26,427 | 23,511 | |
Construction-in-Progress | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Gross | 16,178 | 16,178 | 31,653 | |
Accumulated Depreciation | 0 | 0 | 0 | |
Net Book Value | 16,178 | $ 16,178 | $ 31,653 | |
Minimum | Land Improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 10 years | |||
Minimum | Building and Building Improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 10 years | |||
Minimum | Machinery and Equipment | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 5 years | |||
Minimum | Software and Software Development Costs [Member] | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 3 years | |||
Maximum | Land Improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 20 years | |||
Maximum | Building and Building Improvements | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 20 years | |||
Maximum | Machinery and Equipment | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 15 years | |||
Maximum | Software and Software Development Costs [Member] | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Property, plant and equipment, useful life | 7 years | |||
Other Current Liabilities | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Deferred gain on sale of property | 0 | $ 0 | ||
Other Noncurrent Liabilities | ||||
Property, Plant and Equipment, Net, by Type [Abstract] | ||||
Deferred gain on sale of property | $ 15,100 | $ 15,100 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 152,700 | $ 84,373 |
Goodwill ending balance | 152,767 | 152,700 |
Food, Health and Nutrition | ||
Goodwill [Roll Forward] | ||
Goodwill beginning balance | 129,417 | 61,090 |
Goodwill ending balance | 129,484 | 129,417 |
Industrial Specialties | ||
Goodwill [Roll Forward] | ||
Goodwill beginning balance | 23,283 | 23,283 |
Goodwill ending balance | 23,283 | 23,283 |
Other | ||
Goodwill [Roll Forward] | ||
Goodwill beginning balance | 0 | 0 |
Goodwill ending balance | 0 | 0 |
Novel Ingredients | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 54,007 | |
Novel Ingredients | Food, Health and Nutrition | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 54,007 | |
Novel Ingredients | Industrial Specialties | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 0 | |
Novel Ingredients | Other | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 0 | |
NutraGenesis | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 67 | 14,320 |
NutraGenesis | Food, Health and Nutrition | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | $ 67 | 14,320 |
NutraGenesis | Industrial Specialties | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | 0 | |
NutraGenesis | Other | ||
Goodwill [Roll Forward] | ||
Goodwill acquired during period | $ 0 |
Intangibles and Other Assets,_3
Intangibles and Other Assets, net Intangibles and Other Assets, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 92,061 | $ 104,369 |
Deferred income taxes | 0 | 5,058 |
Deferred financing costs, net of accumulated amortization of $4,331 for 2018 and $3,902 for 2017 (see note 11) | 1,291 | 1,721 |
Other assets | 1,742 | 1,768 |
Total other assets | 3,033 | 8,547 |
Intangible and other assets, noncurrent | $ 95,094 | 112,916 |
Useful life (years) | 20 years | |
Deferred financing costs, accumulated amortization | $ 4,331 | 3,902 |
Developed technology and application patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | 11,606 | 15,559 |
Intangible assets, accumulated amortization | $ 34,669 | 30,716 |
Developed technology and application patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 7 years | |
Developed technology and application patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 20 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 67,479 | 73,232 |
Intangible assets, accumulated amortization | $ 28,032 | 22,279 |
Customer Relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Customer Relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 20 years | |
Trade names and license agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 12,962 | 15,538 |
Intangible assets, accumulated amortization | $ 14,599 | 12,023 |
Trade names and license agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Trade names and license agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 20 years | |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 14 | 40 |
Intangible assets, accumulated amortization | $ 1,319 | $ 1,293 |
Noncompete agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 3 years | |
Noncompete agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 10 years |
Intangibles and Other Assets,_4
Intangibles and Other Assets, net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Intangible Assets and Other Noncurrent Assets, Net [Abstract] | |||
Amortization expense for intangible assets | $ 14,208 | $ 8,381 | $ 7,222 |
Intangibles and Other Assets,_5
Intangibles and Other Assets, net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,018 | $ 10,639 |
2,019 | 10,021 |
2,020 | 9,383 |
2,021 | 8,910 |
2,022 | $ 7,498 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Payroll related | $ 15,656 | $ 15,684 |
Taxes other than income taxes | 3,071 | 2,804 |
Benefits and pensions | 5,680 | 7,730 |
Freight and rebates | 6,431 | 3,937 |
Income taxes | 1,355 | 4,933 |
Restructuring reserve | 217 | 1,719 |
Deferred gain on sale leaseback transaction | 790 | 0 |
Deferred contract termination fee | 9,489 | 0 |
Other | 7,304 | 6,277 |
Other current liabilities | $ 49,993 | $ 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 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital leases | $ 0 | $ 9 |
Total borrowings | 300,000 | 310,009 |
Less current portion | 0 | 4 |
Long-term debt | 300,000 | 310,005 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 300,000 | $ 310,000 |
Short-Term Borrowings, Long-T_4
Short-Term Borrowings, Long-Term Debt, and Interest Expense - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Voting equity | 0.65 | 0.65 | ||
Debt instrument, covenant terms, minimum difference applicable level must exceed total leverage ratio to pay out dividends | 0.25 | |||
Initial permitted foreign investments | $ 213,000,000 | $ 213,000,000 | ||
Maximum permitted foreign investment | $ 425,000,000 | $ 425,000,000 | ||
Covenant terms, maximum total leverage ratio | 3.5 | 3.5 | ||
Covenant terms, minimum interest coverage ratio | 3 | 3 | ||
Total leverage ratio | 2.40 | |||
Interest coverage ratio | 9.55 | |||
Debt default terms, cross defaults of other indebtedness | $ 20,000,000 | $ 20,000,000 | ||
Debt default terms, uninsured and unsatisfied judgments | 20,000,000 | 20,000,000 | ||
Debt default terms, liability under the retirement income security act of 1974 | 20,000,000 | 20,000,000 | ||
Deferred financing costs | 1,500,000 | 1,500,000 | ||
Interest paid | $ 14,400,000 | 6,800,000 | $ 8,000,000 | |
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Term loan | 100,000,000 | 100,000,000 | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Letters of credit, balance outstanding | 700,000 | |||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Term loan | 310,000,000 | 300,000,000 | 310,000,000 | |
Maximum borrowing capacity | $ 450,000,000 | 450,000,000 | ||
Line of credit facility, commitment fee percentage | 0.325% | |||
Additional borrowing capacity | $ 150,000,000 | 150,000,000 | ||
Line of credit facility, maximum borrowings capacity including higher borrowing capacity option | $ 600,000,000 | 600,000,000 | ||
Accessible borrowing availability | 149,300,000 | |||
Line of credit, balance outstanding | $ 300,000,000 | |||
Weighted average interest rate | 4.70% | |||
Revolving Credit Facility | Minimum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.125% | |||
Revolving Credit Facility | Maximum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.375% | |||
Letter of Credit | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | 20,000,000 | ||
Swingline loan | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | ||
LIBOR | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 2.00% | |||
LIBOR | Revolving Credit Facility | Minimum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
LIBOR | Revolving Credit Facility | Maximum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
Base Rate | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 1.00% | |||
Base Rate | Revolving Credit Facility | Minimum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.00% | |||
Base Rate | Revolving Credit Facility | Maximum | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.25% |
Short-Term Borrowings, Long-T_5
Short-Term Borrowings, Long-Term Debt, and Interest Expense - Interest Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 14,250 | $ 7,148 | $ 7,210 |
Deferred financing cost | 430 | 429 | 680 |
Interest income | (75) | (124) | (53) |
Less: amount capitalized for capital projects | (1,082) | (445) | (168) |
Total interest expense, net | $ 13,523 | $ 7,008 | $ 7,669 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred income taxes | $ 5,113 | $ 2,354 |
Long term portion of U.S. transition tax | 0 | 12,095 |
Pension and post retirement liabilities | 9,238 | 8,886 |
Restructuring reserve | 0 | 210 |
Uncertain tax positions | 320 | 1,974 |
Environmental liabilities | 1,100 | 1,100 |
Deferred gain on sale leaseback transaction | 15,073 | 0 |
Deferred contract termination fee | 15,371 | 0 |
Other liabilities | 3,424 | 1,453 |
Other long-term liabilities | $ 49,639 | $ 28,072 |
Stockholders' Equity _ Stock-_3
Stockholders' Equity / Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised and stock grants | $ 3,500 | $ 4,200 | $ 5,900 |
Stock options outstanding | 0 | ||
Stock options exercisable | $ 0 | ||
Treasury stock acquired value | $ 366 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Award term | 10 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award term | 3 years | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of shares awarded at the end of a performance cycle, percentage | 0.00% | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of shares awarded at the end of a performance cycle, percentage | 200.00% |
Stockholders' Equity _ Stock-_4
Stockholders' Equity / Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 5,187 | $ 3,823 | $ 2,822 |
Stock Options | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 1,754 | 1,068 | 994 |
Restricted Stock | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 2,626 | 1,701 | 1,490 |
Performance Shares | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 228 | 424 | (257) |
Stock grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 579 | 630 | $ 595 |
Restructuring Activities | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 254 |
Stockholders' Equity _ Stock-_5
Stockholders' Equity / Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 150,579 | 176,451 | 125,331 |
Granted (in shares) | 56,311 | 30,723 | 88,836 |
Released (in shares) | (33,339) | (32,171) | (7,796) |
Forfeited / Surrendered (in shares) | (24,936) | (24,424) | (29,920) |
Outstanding, ending balance (in shares) | 148,615 | 150,579 | 176,451 |
Weighted Average Grant Date Fair Value Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 38.18 | $ 35.27 | $ 40.85 |
Granted (in dollars per share) | 39.20 | 52.41 | 31.47 |
Released (in dollars per share) | 36.38 | 34.71 | 53.18 |
Forfeited / Surrendered (in dollars per share) | 35.89 | 36.42 | 40.79 |
Outstanding, ending balance (in dollars per share) | $ 39.35 | $ 38.18 | $ 35.27 |
Stockholders' Equity _ Stock-_6
Stockholders' Equity / Stock-Based Compensation - Roll Forward of Outstanding Share-Based Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | |||
Outstanding, beginning balance (in shares) | 617,505 | 740,195 | 691,922 |
Granted (in shares) | 196,198 | 102,607 | 400,215 |
Forfeited / Expired / Surrendered (in shares) | (132,684) | (175,767) | (260,913) |
Exercised (in shares) | (18,010) | (49,530) | (91,029) |
Outstanding, ending balance (in shares) | 663,009 | 617,505 | 740,195 |
Exercisable end of year (in shares) | 388,686 | 343,849 | 368,159 |
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 38 | $ 34.84 | $ 34.33 |
Granted (in dollars per share) | 39.28 | 52.43 | 31.18 |
Forfeited / Expired / Surrendered (in dollars per share) | 40.63 | 37.24 | 33.17 |
Exercised (in dollars per share) | 25.02 | 23.40 | 19.55 |
Outstanding, ending balance (in dollars per share) | 38.21 | 38 | 34.84 |
Exercisable (in dollars per share) | 37.23 | 38.05 | 37.06 |
Weighted Average Grant Date Fair Value (in dollars per share) | $ 7.28 | $ 11.54 | $ 4.62 |
Stockholders' Equity _ Stock-_7
Stockholders' Equity / Stock-Based Compensation - Summary of Assumptions Used in the Option-Pricing Model (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of stock options (in dollars per share) | $ 7.28 | $ 11.54 | $ 4.62 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 29.70% | 31.30% | 33.80% |
Dividend yield | 4.60% | 3.60% | 6.60% |
Risk-free interest rate | 2.60% | 2.10% | 1.40% |
Expected term in years | 6 years 3 months 18 days | 6 years 7 months | 6 years 7 months |
Weighted average grant date fair value of stock options (in dollars per share) | $ 7.28 | $ 11.54 | $ 4.62 |
Stockholders' Equity _ Stock-_8
Stockholders' Equity / Stock-Based Compensation - Summary of Performance Share Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Outstanding, beginning balance (in shares) | 20,923 | 0 | 32,417 |
Granted (at targeted return on invested capital and contribution margin growth) (in shares) | 35,702 | 22,958 | 0 |
Forfeited (in shares) | (1,023) | (2,083) | 0 |
Vested (in shares) | 0 | (353) | (12,401) |
Adjustment to estimate of shares to be earned (in shares) | (30,984) | 401 | (20,016) |
Outstanding, ending balance (in shares) | 24,618 | 20,923 | 0 |
Weighted Average Grant Date Fair Value Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ 52.43 | $ 0 | $ 37.58 |
Granted (at targeted return on invested capital and contribution margin growth) (in dollars per share) | 39.28 | 52.44 | 0 |
Forfeited (in dollars per share) | 40.90 | 52.44 | 0 |
Vested (in dollars per share) | 0 | 49.54 | 54.46 |
Adjustment to estimate of shares to be earned (in dollars per share) | 43.19 | 49.54 | 27.12 |
Outstanding, ending balance (in dollars per share) | $ 45.47 | $ 52.43 | $ 0 |
Stockholders' Equity _ Stock-_9
Stockholders' Equity / Stock-Based Compensation - Unrecognized Compensation Expense Related to Share-Based Payments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount | $ 3,151 |
Weighted-average years to be recognized | 1 year 3 months 18 days |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount | $ 1,404 |
Weighted-average years to be recognized | 1 year 9 months 18 days |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount | $ 193 |
Weighted-average years to be recognized | 1 year 8 months 12 days |
Earnings per share (EPS) (Detai
Earnings per share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 4,820 | $ 14,090 | $ 6,246 | $ 10,915 | $ (11,283) | $ 11,582 | $ 11,223 | $ 10,923 | $ 36,071 | $ 22,445 | $ 47,971 |
Less: earnings attributable to unvested shares | (131) | (76) | (288) | ||||||||
Net income available to common shareholders | $ 35,940 | $ 22,369 | $ 47,683 | ||||||||
Weighted average number of common and potential common shares outstanding: | |||||||||||
Basic number of common shares outstanding (in shares) | 19,518,366 | 19,444,795 | 19,271,448 | ||||||||
Dilutive effect of stock equivalents (in shares) | 241,893 | 288,615 | 310,028 | ||||||||
Diluted number of weighted average common shares outstanding (in shares) | 19,760,259 | 19,733,410 | 19,581,476 | ||||||||
Earnings per common share: | |||||||||||
Earnings per common share—Basic (in dollars per share) | $ 0.25 | $ 0.72 | $ 0.32 | $ 0.56 | $ (0.58) | $ 0.59 | $ 0.58 | $ 0.56 | $ 1.84 | $ 1.15 | $ 2.47 |
Earnings per common share—Diluted (in dollars per share) | $ 0.24 | $ 0.71 | $ 0.31 | $ 0.55 | $ (0.58) | $ 0.58 | $ 0.57 | $ 0.55 | $ 1.82 | $ 1.13 | $ 2.44 |
Antidilutive securities excluded from calculation of EPS (in shares) | 488,987 | 377,361 | 445,303 |
Dividends (Details)
Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Dividends paid – aggregate | $ 37,611 | $ 37,468 | $ 37,217 |
Pension Plans and Post-retire_3
Pension Plans and Post-retirement Benefits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure | |||
Increase in periodic benefit cost | $ 51 | ||
Effect of one percentage point increase on postretirement benefit obligation | 179 | ||
Net actuarial loss (gain) | 57 | ||
Prior service cost | 49 | ||
Transition obligation | $ 12 | ||
Mexico | |||
Defined Benefit Plan Disclosure | |||
Required years of service, Mexico postretirement benefit plan | 15 years | ||
Statutory profit sharing program | 10.00% | ||
Pension | |||
Defined Benefit Plan Disclosure | |||
Net actuarial loss (gain) | $ 197 | ||
Prior service cost | 49 | ||
Transition obligation | 0 | ||
Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Net actuarial loss (gain) | (140) | ||
Prior service cost | 0 | ||
Transition obligation | 12 | ||
U.S. | |||
Defined Benefit Plan Disclosure | |||
Defined contribution plan, cost | $ 800 | $ 3,200 | $ 3,000 |
U.S. | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Target allocation percentage of assets | 92.30% | ||
U.S. | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Target allocation percentage of assets | 7.70% | ||
U.S. | Pension | |||
Defined Benefit Plan Disclosure | |||
Employer contributions | $ 0 | 0 | |
U.S. | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Net actuarial loss (gain) | 140 | ||
Prior service cost | 0 | ||
Transition obligation | 0 | ||
Employer contributions | 126 | 116 | |
Canada | |||
Defined Benefit Plan Disclosure | |||
Defined contribution plan, cost | 100 | 100 | $ 100 |
Canada | Pension | |||
Defined Benefit Plan Disclosure | |||
Expected future employer contributions for next fiscal year | 300 | ||
Net actuarial loss (gain) | 197 | ||
Prior service cost | 49 | ||
Transition obligation | 0 | ||
Employer contributions | $ 679 | 0 | |
Canada | Pension | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Target allocation percentage of assets | 50.00% | ||
Canada | Pension | Debt Securities | |||
Defined Benefit Plan Disclosure | |||
Target allocation percentage of assets | 50.00% | ||
Canada | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Net actuarial loss (gain) | $ 0 | ||
Prior service cost | 0 | ||
Transition obligation | 12 | ||
Employer contributions | $ 100 | $ 53 |
Pension Plans and Post-retire_4
Pension Plans and Post-retirement Benefits - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure | |
Prior service cost | $ 49 |
Net actuarial loss (gain) | 57 |
Transition obligation | 12 |
Pension | |
Defined Benefit Plan Disclosure | |
Prior service cost | 49 |
Net actuarial loss (gain) | 197 |
Transition obligation | 0 |
Other Benefits | |
Defined Benefit Plan Disclosure | |
Prior service cost | 0 |
Net actuarial loss (gain) | (140) |
Transition obligation | $ 12 |
Pension Plans and Post-retire_5
Pension Plans and Post-retirement Benefits - Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in accumulated other comprehensive income | |||
Amortization of net (gain) loss | $ (29) | $ 35 | |
Amortization of prior service cost / transition obligation | (61) | (131) | |
Net (gain) loss | 531 | 1,037 | |
Total change in accumulated other comprehensive income | 441 | 941 | |
Deferred taxes | (390) | (236) | $ 749 |
Net amount recognized | 51 | 705 | $ (1,349) |
Pension | |||
Change in accumulated other comprehensive income | |||
Amortization of net (gain) loss | (197) | (177) | |
Amortization of prior service cost / transition obligation | (49) | (108) | |
Net (gain) loss | 514 | 694 | |
Total change in accumulated other comprehensive income | 268 | 409 | |
Deferred taxes | (67) | (88) | |
Net amount recognized | 201 | 321 | |
Other Benefits | |||
Change in accumulated other comprehensive income | |||
Amortization of net (gain) loss | 168 | 212 | |
Amortization of prior service cost / transition obligation | (12) | (23) | |
Net (gain) loss | 17 | 343 | |
Total change in accumulated other comprehensive income | 173 | 532 | |
Deferred taxes | (323) | (148) | |
Net amount recognized | $ (150) | $ 384 |
Pension Plans and Post-retire_6
Pension Plans and Post-retirement Benefits - Schedule of Accumulated and Projected Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | Pension | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation | $ 2,461 | $ 2,662 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | 2,662 | 2,473 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 94 | 100 | 114 |
Actuarial loss (gain) | (219) | 154 | |
Benefits paid | (76) | (65) | |
Benefit obligation at end of year | 2,461 | 2,662 | 2,473 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 2,628 | 2,263 | |
Actual return on plan assets | (164) | 430 | |
Employer contributions | 0 | 0 | |
Benefits paid | (76) | (65) | |
Fair value of plan assets at end of year | 2,388 | 2,628 | 2,263 |
Funded status of the plan | (73) | (34) | |
Amounts recognized in the consolidated balance sheets | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | (73) | (34) | |
Net amounts recognized | (73) | (34) | |
Amounts recognized in other comprehensive income | |||
Prior service cost | 0 | 0 | |
Net actuarial loss | 73 | (22) | |
Total amount recognized | 73 | (22) | |
Deferred taxes | (18) | 5 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 55 | (17) | |
U.S. | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation | 3,490 | 3,250 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | 3,250 | 2,974 | |
Service cost | 144 | 123 | 172 |
Interest cost | 114 | 118 | 165 |
Actuarial loss (gain) | 108 | 151 | |
Benefits paid | (126) | (116) | |
Benefit obligation at end of year | 3,490 | 3,250 | 2,974 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 126 | 116 | |
Benefits paid | (126) | (116) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status of the plan | (3,490) | (3,250) | |
Amounts recognized in the consolidated balance sheets | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (248) | (151) | |
Noncurrent liabilities | (3,242) | (3,099) | |
Net amounts recognized | (3,490) | (3,250) | |
Amounts recognized in other comprehensive income | |||
Prior service cost | 0 | 0 | |
Net actuarial loss | (1,635) | (1,911) | |
Total amount recognized | (1,635) | (1,911) | |
Deferred taxes | 398 | 758 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (1,237) | (1,153) | |
Canada | Pension | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation | 14,039 | 15,590 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | 15,590 | 13,128 | |
Service cost | 439 | 383 | 362 |
Interest cost | 515 | 517 | 489 |
Past service cost | 0 | 153 | |
Actuarial loss (gain) | (502) | 886 | |
Benefits paid | (775) | (485) | |
Foreign currency exchange rate changes | (1,228) | 1,008 | |
Benefit obligation at end of year | 14,039 | 15,590 | 13,128 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 16,729 | 14,798 | |
Actual return on plan assets | (484) | 1,308 | |
Employer contributions | 679 | 0 | |
Benefits paid | (775) | (485) | |
Foreign currency exchange rate changes | (1,306) | 1,108 | |
Fair value of plan assets at end of year | 14,843 | 16,729 | 14,798 |
Funded status of the plan | 804 | 1,139 | |
Amounts recognized in the consolidated balance sheets | |||
Noncurrent assets | 804 | 1,139 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | 0 | |
Net amounts recognized | 804 | 1,139 | |
Amounts recognized in other comprehensive income | |||
Net transition obligation | 0 | 0 | |
Prior service cost | 97 | 158 | |
Net actuarial loss | 4,329 | 4,095 | |
Total amount recognized | 4,426 | 4,253 | |
Deferred taxes | (1,107) | (1,063) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 3,319 | 3,190 | |
Canada | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation | 1,546 | 1,722 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | 1,722 | 1,379 | |
Service cost | 63 | 51 | 49 |
Interest cost | 57 | 55 | 51 |
Past service cost | 0 | 0 | |
Actuarial loss (gain) | (61) | 181 | |
Benefits paid | (100) | (53) | |
Foreign currency exchange rate changes | (135) | 109 | |
Benefit obligation at end of year | 1,546 | 1,722 | 1,379 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 100 | 53 | |
Benefits paid | (100) | (53) | |
Foreign currency exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status of the plan | (1,546) | (1,722) | |
Amounts recognized in the consolidated balance sheets | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (59) | (103) | |
Noncurrent liabilities | (1,487) | (1,619) | |
Net amounts recognized | (1,546) | (1,722) | |
Amounts recognized in other comprehensive income | |||
Net transition obligation | 12 | 37 | |
Prior service cost | 0 | 0 | |
Net actuarial loss | 122 | 200 | |
Total amount recognized | 134 | 237 | |
Deferred taxes | (34) | (59) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ 100 | $ 178 |
Pension Plans and Post-retire_7
Pension Plans and Post-retirement Benefits - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | |||
Weighted average assumptions for benefit obligation | |||
Expected long-term rate of return on plan assets | 6.51% | 6.30% | 6.20% |
Rate of compensation increase | 4.00% | 4.00% | 3.75% |
Weighted average assumptions | |||
Expected long-term rate of return | 6.30% | 6.20% | 6.51% |
Rate of compensation increase | 4.00% | 3.75% | 3.75% |
U.S. | Pension | |||
Components of net periodic benefit | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 94 | 100 | 114 |
Expected return on plan assets | (150) | (140) | (145) |
Amortization of: | |||
Actuarial loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | $ (56) | $ (40) | $ (31) |
Weighted average assumptions for benefit obligation | |||
Discount rate | 4.22% | 3.60% | 4.16% |
Weighted average assumptions | |||
Discount rate | 3.60% | 4.16% | 4.50% |
U.S. | Other Benefits | |||
Components of net periodic benefit | |||
Service cost | $ 144 | $ 123 | $ 172 |
Interest cost | 114 | 118 | 165 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: | |||
Actuarial loss (gain) | (168) | (211) | (100) |
Net periodic benefit cost | $ 90 | $ 30 | $ 237 |
Weighted average assumptions for benefit obligation | |||
Discount rate | 4.04% | 3.66% | 4.22% |
Weighted average assumptions | |||
Discount rate | 3.66% | 4.22% | 4.25% |
Canada | |||
Weighted average assumptions | |||
Expected long-term rate of return | 5.00% | 5.50% | 5.50% |
Accrued health care cost trend rates at end of year | |||
Health care cost trend rate assumed for next year (initial rate) | 7.30% | 7.50% | 8.50% |
Rate to which the cost trend rate is assumed to decline (ultimate rate) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate rate | 2,030 | 2,030 | 2,033 |
Canada | Pension | |||
Components of net periodic benefit | |||
Service cost | $ 439 | $ 383 | $ 362 |
Interest cost | 515 | 517 | 489 |
Expected return on plan assets | (796) | (819) | (768) |
Amortization of: | |||
Prior service cost | 51 | 108 | 106 |
Actuarial loss (gain) | 188 | 177 | 207 |
Net transition obligation | 0 | 0 | 0 |
Net periodic benefit cost | $ 397 | $ 366 | $ 396 |
Weighted average assumptions for benefit obligation | |||
Discount rate | 3.64% | 3.37% | 3.75% |
Weighted average assumptions | |||
Discount rate | 3.37% | 3.75% | 3.75% |
Canada | Other Benefits | |||
Components of net periodic benefit | |||
Service cost | $ 63 | $ 51 | $ 49 |
Interest cost | 57 | 55 | 51 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: | |||
Prior service cost | 0 | 0 | 0 |
Actuarial loss (gain) | 4 | 0 | 0 |
Net transition obligation | 24 | 23 | 23 |
Net periodic benefit cost | $ 148 | $ 129 | $ 123 |
Weighted average assumptions for benefit obligation | |||
Discount rate | 3.64% | 3.37% | 3.75% |
Weighted average assumptions | |||
Discount rate | 3.37% | 3.75% | 3.75% |
Pension Plans and Post-retire_8
Pension Plans and Post-retirement Benefits - Schedule of Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
U.S. | Pension | |
Defined Benefit Plan Disclosure | |
Fiscal 2,019 | $ 98 |
Fiscal 2,020 | 109 |
Fiscal 2,021 | 116 |
Fiscal 2,022 | 130 |
Fiscal 2,023 | 138 |
Fiscal Years 2024-2028 | 751 |
U.S. | Other Benefits | |
Defined Benefit Plan Disclosure | |
Fiscal 2,019 | 248 |
Fiscal 2,020 | 254 |
Fiscal 2,021 | 268 |
Fiscal 2,022 | 284 |
Fiscal 2,023 | 289 |
Fiscal Years 2024-2028 | 1,290 |
Canada | Pension | |
Defined Benefit Plan Disclosure | |
Fiscal 2,019 | 541 |
Fiscal 2,020 | 577 |
Fiscal 2,021 | 617 |
Fiscal 2,022 | 670 |
Fiscal 2,023 | 712 |
Fiscal Years 2024-2028 | 4,034 |
Canada | Other Benefits | |
Defined Benefit Plan Disclosure | |
Fiscal 2,019 | 59 |
Fiscal 2,020 | 72 |
Fiscal 2,021 | 92 |
Fiscal 2,022 | 95 |
Fiscal 2,023 | 100 |
Fiscal Years 2024-2028 | $ 480 |
Pension Plans and Post-retire_9
Pension Plans and Post-retirement Benefits - Schedule of Allocation of Plan Assets (Details) - Pension - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 100.00% | 100.00% | |
Fair value of plan assets at end of year | $ 2,388 | $ 2,628 | $ 2,263 |
U.S. | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 2,388 | ||
U.S. | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 0 | ||
U.S. | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 | ||
U.S. | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 92.30% | 92.90% | |
Fair value of plan assets at end of year | $ 2,204 | ||
U.S. | Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 2,204 | ||
U.S. | Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 0 | ||
U.S. | Equity Securities | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 | ||
U.S. | Fixed Income Securities | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 7.70% | 7.10% | |
Fair value of plan assets at end of year | $ 184 | ||
U.S. | Fixed Income Securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 184 | ||
U.S. | Fixed Income Securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 0 | ||
U.S. | Fixed Income Securities | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 | ||
Canada | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 100.00% | 100.00% | |
Fair value of plan assets at end of year | $ 14,843 | $ 16,729 | $ 14,798 |
Canada | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 7,287 | ||
Canada | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 7,556 | ||
Canada | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 | ||
Canada | Equity Securities | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 49.10% | 51.60% | |
Fair value of plan assets at end of year | $ 7,287 | ||
Canada | Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 7,287 | ||
Canada | Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 0 | ||
Canada | Equity Securities | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 | ||
Canada | Fixed Income Securities | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 48.90% | 44.80% | |
Fair value of plan assets at end of year | $ 7,257 | ||
Canada | Fixed Income Securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 0 | ||
Canada | Fixed Income Securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 7,257 | ||
Canada | Fixed Income Securities | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 | ||
Canada | Other | |||
Defined Benefit Plan Disclosure | |||
Actual plan asset allocations | 2.00% | 3.60% | |
Fair value of plan assets at end of year | $ 299 | ||
Canada | Other | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 0 | ||
Canada | Other | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | 299 | ||
Canada | Other | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets at end of year | $ 0 |
Pension Plans and Post-retir_10
Pension Plans and Post-retirement Benefits - Schedule of Health Care Cost Trend Rates (Details) - Canada - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure | ||
Total of service cost and interest cost | $ 23 | $ 24 |
Post-retirement benefit obligation | 211 | 221 |
Total of service cost and interest cost | (17) | (18) |
Post-retirement benefit obligation | $ (169) | $ (177) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax and Income Tax Expense / (Benefit), Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
US, Income before income taxes | $ 17,940 | $ 8,026 | $ 24,727 |
Canada/Mexico/Europe/Asia, Income before income taxes | 25,292 | 48,611 | 45,591 |
Income before income taxes | 43,232 | 56,637 | 70,318 |
US, Income tax expense | (3,062) | 20,230 | 10,989 |
Canada/Mexico/Europe/Asia, Income tax expense | 10,223 | 13,962 | 11,358 |
Provision for income taxes | 7,161 | 34,192 | 22,347 |
Current income taxes | (2,467) | 23,781 | 12,813 |
Deferred income taxes | $ 9,628 | $ 10,411 | $ 9,534 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at the U.S. statutory rate | $ 9,079 | $ 19,824 | $ 24,611 |
State income taxes | 67 | 741 | 862 |
Foreign tax rate differential | 1,885 | (1,606) | (1,549) |
Non-taxable interest income | 3,370 | (5,951) | (5,582) |
Change in valuation allowance | (4,498) | 1,984 | (168) |
U.S. Tax Cuts and Jobs Act of 2017 | (5,443) | 17,286 | 0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 843 | 0 | 0 |
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | (792) | 0 | 736 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | 1,951 | 870 | (629) |
Other non-deductible permanent items | 699 | 1,044 | 4,066 |
Provision for income taxes | $ 7,161 | $ 34,192 | $ 22,347 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Balances Reflected On The Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net noncurrent deferred tax assets | $ 0 | $ 5,058 |
Net noncurrent deferred tax liabilities | (5,113) | (2,354) |
Deferred Tax Liabilities, Net | $ 5,113 | |
Net deferred tax assets | $ 2,704 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Inventories | $ 5,483 | $ 3,427 |
Accrued liabilities | 15,061 | 7,472 |
Tax credits | 2,249 | 3,846 |
Tax losses | 5,664 | 22,196 |
Total deferred tax assets | 28,457 | 36,941 |
Deferred tax liabilities: | ||
Gain on bond retirement | 0 | (170) |
Intangibles | (11,574) | (11,012) |
Fixed assets | (13,799) | (10,809) |
Accrued liabilities | (2,249) | (1,800) |
Total deferred tax liabilities | (27,622) | (23,791) |
Total valuation allowances | (5,948) | (10,446) |
Net deferred tax assets | $ 2,704 | |
Deferred Tax Liabilities, Net | $ (5,113) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at January 1 | $ 2,679 | $ 2,679 | $ 3,121 |
Additions for tax positions of prior years | 0 | 0 | 973 |
Reductions for tax positions of prior years | (939) | 0 | 0 |
Reductions due to settlements | (1,420) | 0 | (1,415) |
Gross unrecognized tax benefits at December 31 | 320 | 2,679 | 2,679 |
Net uncertain tax benefits, that if recognized would impact the effective tax rate, at December 31 | $ 253 | $ 2,116 | $ 1,741 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Examination [Line Items] | |||
Tax benefit from stock options exercised | $ 100 | $ 800 | |
Valuation allowances | 5,948 | 10,446 | |
Deferred tax assets, tax credit carryforwards, foreign | 3,300 | ||
U.S. Tax Cuts and Jobs Act of 2017 | (5,443) | 17,286 | $ 0 |
Tax Cuts And Jobs Act of 2017, Accounting Complete, Income Tax Benefit (Expense) | 7,400 | ||
Tax Cuts and Jobs Act of 2017, Accounting Complete, Transition Tax for Accumulated Foreign Earnings, Income Tax Expense (Benefit) | 3,200 | ||
Tax Cuts and Jobs Act of 2017, Accounting Complete, Deferred Tax Assets and Liabilities, Income Tax Expense (Benefit) | 4,200 | ||
Undistributed earnings of foreign subsidiaries, considered permanently reinvested | 1,200 | ||
Tax Cuts and Jobs Act of 2017, Accounting Complete, Additional Taxable Income Accrual for GILTI | 800 | ||
Additional tax expense as the result of tax reform | 17,300 | ||
Charge related to one-time transition tax on mandatory deemed repatriation of foreign earnings | 13,900 | ||
Charge related to remeasurement of certain U.S. deferred tax assets and liabilities | 3,400 | ||
Interest and penalties | 0 | 0 | 0 |
Unrecognized tax benefits, income tax penalties and interest accrued | 100 | 800 | |
Income taxes paid | 18,400 | 14,900 | $ 27,900 |
United States | |||
Income Tax Examination [Line Items] | |||
Operating loss carryforwards | 1,700 | 13,900 | |
State and Local Jurisdiction | |||
Income Tax Examination [Line Items] | |||
Operating loss carryforwards | $ 300 | $ 1,600 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Rental expense under operating leases | $ 7,387 | $ 7,287 | $ 6,930 |
Environmental liabilities | 1,100 | $ 1,100 | |
Nashville, TN | |||
Loss Contingencies [Line Items] | |||
Environmental liabilities | 1,100 | ||
Nashville, TN | Minimum | |||
Loss Contingencies [Line Items] | |||
Estimated environmental liabilities range | 900 | ||
Nashville, TN | Maximum | |||
Loss Contingencies [Line Items] | |||
Estimated environmental liabilities range | $ 1,300 |
Commitments and Contingencies_2
Commitments and Contingencies - Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 8,259 |
2,019 | 7,130 |
2,020 | 6,490 |
2,021 | 6,032 |
2,022 | 5,467 |
Thereafter | $ 33,957 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity, beginning balance | $ 333,559 | $ 347,226 | $ 333,260 | |
Other comprehensive income (loss) before reclassifications | (1,111) | (421) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 293 | (293) | ||
Other comprehensive (loss) income, net of tax | (818) | [1] | (714) | 1,310 |
Equity, ending balance | 335,515 | 333,559 | 347,226 | |
Pension and Other Postretirement Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity, beginning balance | (2,198) | (1,493) | ||
Other comprehensive income (loss) before reclassifications | (344) | (412) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 293 | (293) | ||
Other comprehensive (loss) income, net of tax | (51) | (705) | ||
Equity, ending balance | (2,249) | (2,198) | (1,493) | |
Changes in Fair Value of Effective Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity, beginning balance | 0 | 9 | ||
Other comprehensive income (loss) before reclassifications | (767) | (9) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Other comprehensive (loss) income, net of tax | (767) | (9) | ||
Equity, ending balance | (767) | 0 | 9 | |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Equity, beginning balance | (2,198) | (1,484) | (2,794) | |
Other comprehensive (loss) income, net of tax | (818) | [1] | (714) | 1,310 |
Equity, ending balance | $ (3,016) | $ (2,198) | $ (1,484) | |
[1] | Includes the impact of ASU 2018-02, which transferred those amounts from accumulated other comprehensive income (loss) to retained earnings. See Notes 1 and 18 to the Consolidated Financial Statements. |
Financial Instruments and Con_2
Financial Instruments and Concentration of Credit Risks Financial Instruments and Concentration of Credit Risks (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales | Top 10 Customers | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 24.00% | 26.00% | 35.00% |
Valuation Allowances (Details)
Valuation Allowances (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deferred taxes valuation allowances, beginning balance | $ 10,446 | $ 8,462 | $ 8,630 |
Charged/ (credited) to costs and expenses | (4,498) | (1,984) | (168) |
Deductions (Bad debts) | 0 | 0 | 0 |
(Credited) to Goodwill | 0 | 0 | 0 |
Deferred taxes valuation allowances, ending balance | $ 5,948 | $ 10,446 | $ 8,462 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 192,743 | $ 196,934 | $ 206,725 | $ 205,440 | $ 193,101 | $ 183,839 | $ 179,140 | $ 165,944 | $ 801,842 | $ 722,024 | $ 725,345 |
EBITDA | 101,686 | 104,049 | 115,466 | ||||||||
Depreciation and amortization expense | 44,931 | 40,404 | 37,479 | ||||||||
Capital expenditures | 56,745 | 34,859 | 36,599 | ||||||||
Long-lived assets | 240,235 | 219,297 | 240,235 | 219,297 | 205,459 | ||||||
Assets | 815,154 | 785,169 | 815,154 | 785,169 | 643,011 | ||||||
Food, Health and Nutrition [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBITDA | 61,791 | 67,156 | 78,128 | ||||||||
Depreciation and amortization expense | 28,695 | 24,212 | 20,269 | ||||||||
Capital expenditures | 37,368 | 23,556 | 19,181 | ||||||||
Long-lived assets | 142,659 | 130,705 | 142,659 | 130,705 | 124,664 | ||||||
Assets | 601,030 | 556,479 | 601,030 | 556,479 | 397,575 | ||||||
Industrial Specialties [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBITDA | 34,124 | 33,833 | 36,029 | ||||||||
Depreciation and amortization expense | 14,347 | 13,863 | 12,645 | ||||||||
Capital expenditures | 17,886 | 10,820 | 15,866 | ||||||||
Long-lived assets | 88,468 | 71,925 | 88,468 | 71,925 | 72,727 | ||||||
Assets | 190,823 | 190,700 | 190,823 | 190,700 | 210,680 | ||||||
Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
EBITDA | 5,771 | 3,060 | 1,309 | ||||||||
Depreciation and amortization expense | 1,889 | 2,329 | 4,565 | ||||||||
Capital expenditures | 1,491 | 483 | 1,552 | ||||||||
Long-lived assets | 9,108 | 16,667 | 9,108 | 16,667 | 8,068 | ||||||
Assets | 23,301 | 37,990 | 23,301 | 37,990 | 34,756 | ||||||
Restructuring costs | 1,500 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 801,842 | 722,024 | 725,345 | ||||||||
Operating Segments | Food, Health and Nutrition [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 480,166 | 397,298 | 376,672 | ||||||||
Operating Segments | Industrial Specialties [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 260,605 | 262,704 | 278,284 | ||||||||
Operating Segments | Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 61,071 | 62,022 | 70,389 | ||||||||
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 517,782 | 450,171 | 418,411 | ||||||||
Long-lived assets | 127,788 | 113,795 | 127,788 | 113,795 | 104,118 | ||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 137,289 | 125,116 | 123,885 | ||||||||
Long-lived assets | 99,403 | 91,414 | 99,403 | 91,414 | 85,698 | ||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 32,666 | 31,993 | 32,391 | ||||||||
Long-lived assets | 11,510 | 12,293 | 11,510 | 12,293 | 13,575 | ||||||
Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 114,105 | 114,744 | 150,658 | ||||||||
Long-lived assets | $ 1,534 | $ 1,795 | 1,534 | 1,795 | 2,068 | ||||||
Specialty Ingredients | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 567,064 | 490,256 | 456,465 | ||||||||
Core Ingredients | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 183,872 | 174,819 | 200,560 | ||||||||
Co-Products & Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 50,906 | $ 56,949 | $ 68,320 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Net Income to EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||||||||||
Net income | $ 4,820 | $ 14,090 | $ 6,246 | $ 10,915 | $ (11,283) | $ 11,582 | $ 11,223 | $ 10,923 | $ 36,071 | $ 22,445 | $ 47,971 |
Provision for income taxes | 7,161 | 34,192 | 22,347 | ||||||||
Interest expense, net | 13,523 | 7,008 | 7,669 | ||||||||
Depreciation and amortization | 44,931 | 40,404 | 37,479 | ||||||||
EBITDA | $ 101,686 | $ 104,049 | $ 115,466 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenue from External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 192,743 | $ 196,934 | $ 206,725 | $ 205,440 | $ 193,101 | $ 183,839 | $ 179,140 | $ 165,944 | $ 801,842 | $ 722,024 | $ 725,345 |
U.S. | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 517,782 | 450,171 | 418,411 | ||||||||
Mexico | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 137,289 | 125,116 | 123,885 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 32,666 | 31,993 | 32,391 | ||||||||
Other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 114,105 | 114,744 | 150,658 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 801,842 | $ 722,024 | $ 725,345 |
Quarterly information (unaudi_3
Quarterly information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Gross profit | $ 29,551 | $ 35,228 | $ 36,385 | $ 42,227 | $ 32,441 | $ 40,969 | $ 39,076 | $ 36,543 | $ 143,391 | $ 149,029 | $ 150,392 |
Net income | $ 4,820 | $ 14,090 | $ 6,246 | $ 10,915 | $ (11,283) | $ 11,582 | $ 11,223 | $ 10,923 | $ 36,071 | $ 22,445 | $ 47,971 |
Income per share: | |||||||||||
Basic (in dollars per share) | $ 0.25 | $ 0.72 | $ 0.32 | $ 0.56 | $ (0.58) | $ 0.59 | $ 0.58 | $ 0.56 | $ 1.84 | $ 1.15 | $ 2.47 |
Diluted (in dollars per share) | $ 0.24 | $ 0.71 | $ 0.31 | $ 0.55 | $ (0.58) | $ 0.58 | $ 0.57 | $ 0.55 | $ 1.82 | $ 1.13 | $ 2.44 |
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Revenues | $ 192,743 | $ 196,934 | $ 206,725 | $ 205,440 | $ 193,101 | $ 183,839 | $ 179,140 | $ 165,944 | $ 801,842 | $ 722,024 | $ 725,345 |
Additional tax expense as the result of tax reform | $ 17,300 |
Supply Agreement Termination (D
Supply Agreement Termination (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Supply Commitment, Contract Termination Agreement, Consideration | $ 24,900 | |||
Supply Commitment, Contract Termination Agreement, Cash Proceeds | 21,300 | |||
Assets received as part of the supply agreement termination | 3,600 | $ 3,610 | $ 0 | $ 0 |
Deferred contract termination fee, current | 9,489 | 9,489 | 0 | |
Deferred contract termination fee, noncurrent | $ 15,371 | $ 15,371 | $ 0 |