Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37443 | |
Entity Registrant Name | Univar Solutions Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-1251958 | |
Entity Address, Address Line One | 3075 Highland Parkway, Suite 200 | |
Entity Address, City or Town | Downers Grove, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60515 | |
City Area Code | 331 | |
Local Phone Number | 777-6000 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | UNVR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 168,616,579 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001494319 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 2,387.3 | $ 2,130.7 | $ 7,131.9 | $ 6,661.3 |
Cost of goods sold (exclusive of depreciation) | 1,842.4 | 1,662 | 5,513.3 | 5,205.5 |
Operating expenses: | ||||
Warehousing, selling and administrative | 269.2 | 229 | 803.4 | 710.9 |
Other operating expenses, net | 30.2 | 12.4 | 258.8 | 37 |
Depreciation | 41.6 | 31.5 | 114.5 | 93.8 |
Amortization | 12.1 | 13.5 | 45.1 | 40.7 |
Impairment charges | 7 | 0 | 7 | 0 |
Total operating expenses | 456.9 | 369.1 | 1,503.9 | 1,130.9 |
Operating income | 88 | 99.6 | 114.7 | 324.9 |
Other (expense) income: | ||||
Interest income | 0.6 | 0.6 | 2.3 | 2.7 |
Interest expense | (37.4) | (32.8) | (111.2) | (101.8) |
Loss on extinguishment of debt | 0 | 0 | (0.7) | 0 |
Other (expense) income, net | (5.5) | 2.5 | (17.2) | 3 |
Total other expense | (42.3) | (29.7) | (126.8) | (96.1) |
Income (loss) before income taxes | 45.7 | 69.9 | (12.1) | 228.8 |
Income tax expense from continuing operations | 43.2 | 20.3 | 38.4 | 57.7 |
Net income (loss) from continuing operations | 2.5 | 49.6 | (50.5) | 171.1 |
Net income from discontinued operations | 0 | 0 | 5.4 | 0 |
Net income (loss) | $ 2.5 | $ 49.6 | $ (45.1) | $ 171.1 |
Income (loss) per common share: | ||||
Basic from continuing operations (in dollars per share) | $ 0.01 | $ 0.35 | $ (0.31) | $ 1.21 |
Basic from discontinued operations (in dollars per share) | 0 | 0 | 0.03 | 0 |
Basic income (loss) per common share (in dollars per share) | 0.01 | 0.35 | (0.28) | 1.21 |
Diluted from continuing operations (in dollars per share) | 0.01 | 0.35 | (0.31) | 1.20 |
Diluted from discontinued operations (in dollars per share) | 0 | 0 | 0.03 | 0 |
Diluted income (loss) per common share (in dollars per share) | $ 0.01 | $ 0.35 | $ (0.28) | $ 1.20 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 168.6 | 141.2 | 162.6 | 141.1 |
Diluted (in shares) | 169.5 | 142.3 | 162.6 | 142.1 |
Outbound freight and handling | ||||
Operating expenses: | ||||
Outbound freight and handling | $ 96.8 | $ 82.7 | $ 275.1 | $ 248.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Condensed Statement of Income Captions [Line Items] | |||||
Net income (loss) | $ 2.5 | $ 49.6 | $ (45.1) | $ 171.1 | |
Other comprehensive (loss) income, net of tax: | |||||
Foreign currency translation | (31.9) | 2 | (12.1) | (61) | |
Pension and postretirement benefit adjustment | 0 | 0 | 0.1 | 0.1 | |
Derivative financial instruments | (4.4) | (0.1) | (28.6) | 9.3 | |
Total other comprehensive (loss) income, net of tax | (36.3) | 1.9 | (43.8) | (51.1) | |
Comprehensive (loss) income | (33.8) | 51.5 | (88.9) | 120 | |
Impact due to adoption of ASU 2018-02 | |||||
Other comprehensive (loss) income, net of tax: | |||||
Impact due to adoption of ASUs | [1] | 0 | 0 | (3.2) | 0 |
Impact due to adoption of ASU 2017-12 | |||||
Other comprehensive (loss) income, net of tax: | |||||
Impact due to adoption of ASUs | [2] | $ 0 | $ 0 | $ 0 | $ 0.5 |
[1] | Adjusted due to the adoption of Accounting Standards Update (“ASU”) 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “ Note 2: Significant accounting policies ” for more information. | ||||
[2] | Adjusted due to the adoption of ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 134.6 | $ 121.6 | |
Trade accounts receivable, net | 1,375.7 | 1,094.7 | |
Inventories | 872.9 | 803.3 | |
Prepaid expenses and other current assets | 193.1 | 169.1 | |
Total current assets | 2,576.3 | 2,188.7 | |
Property, plant and equipment, net | 1,161.1 | 955.8 | |
Goodwill | 2,409.5 | 1,780.7 | |
Intangible assets, net | 348.2 | 238.1 | |
Deferred tax assets | 22 | 24.8 | |
Other assets | [1] | 267.6 | 84.3 |
Total assets | 6,784.7 | 5,272.4 | |
Current liabilities: | |||
Short-term financing | 2.9 | 8.1 | |
Trade accounts payable | 973.3 | 925.4 | |
Current portion of long-term debt | 19 | 21.7 | |
Accrued compensation | 100.7 | 93.6 | |
Other accrued expenses | 349.8 | 285.8 | |
Total current liabilities | 1,445.7 | 1,334.6 | |
Long-term debt | 2,977.1 | 2,350.4 | |
Pension and other postretirement benefit liabilities | 244.6 | 254.4 | |
Deferred tax liabilities | 111.1 | 42.9 | |
Other long-term liabilities | [1] | 261.2 | 98.4 |
Total liabilities | 5,039.7 | 4,080.7 | |
Stockholders’ equity: | |||
Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of September 30, 2019 and December 31, 2018 | 0 | 0 | |
Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 1.7 | 1.4 | |
Additional paid-in capital | 2,963.7 | 2,325 | |
Accumulated deficit | (803.4) | (761.5) | |
Accumulated other comprehensive loss | (417) | (373.2) | |
Total stockholders’ equity | 1,745 | 1,191.7 | |
Total liabilities and stockholders’ equity | $ 6,784.7 | $ 5,272.4 | |
[1] | Operating lease assets and operating lease liabilities are included in other assets and other long-term liabilities. Refer to “ Note 18: Leasing ” for more information. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, share issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 168,600,000 | 141,700,000 |
Common stock, shares outstanding (in shares) | 168,600,000 | 141,700,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||
Net income (loss) | $ (45.1) | $ 171.1 |
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 159.6 | 134.5 |
Impairment charges | 7 | 0 |
Amortization of deferred financing fees and debt discount | 7 | 5.8 |
Amortization of pension credit from accumulated other comprehensive loss | 0.1 | 0.1 |
Loss on extinguishment of debt | 0.7 | 0 |
Deferred income taxes | 4.4 | 8.9 |
Stock-based compensation expense | 21.7 | 17.7 |
Charge for inventory step-up of acquired inventory | 5.3 | 0 |
Other | 3.8 | (0.8) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | 3.7 | (216.3) |
Inventories | 72.1 | (11.9) |
Prepaid expenses and other current assets | 20 | (13.3) |
Trade accounts payable | (85.2) | (7.3) |
Pensions and other postretirement benefit liabilities | (22.6) | (32.6) |
Other, net | (118.3) | (58.5) |
Net cash provided (used) by operating activities | 34.2 | (2.6) |
Investing activities: | ||
Purchases of property, plant and equipment | (72.1) | (59.9) |
Purchases of businesses, net of cash acquired | (1,201) | (20) |
Proceeds from sale of property, plant and equipment | 3.6 | 8.7 |
Proceeds from sale of business | 664.3 | 0 |
Other | (1.3) | (0.1) |
Net cash used by investing activities | (606.5) | (71.3) |
Financing activities: | ||
Proceeds from issuance of long-term debt | 1,077.6 | 267.7 |
Payments on long-term debt and finance lease obligations | (465.4) | (558.1) |
Short-term financing, net | (4.4) | (2.3) |
Taxes paid related to net share settlements of stock-based compensation awards | (2.8) | (3.7) |
Stock option exercises | 5.7 | 5.7 |
Other | 0.6 | 0.6 |
Net cash provided (used) by financing activities | 611.3 | (290.1) |
Effect of exchange rate changes on cash and cash equivalents | (26) | (17.1) |
Net increase (decrease) in cash and cash equivalents | 13 | (381.1) |
Cash and cash equivalents at beginning of period | 121.6 | 467 |
Cash and cash equivalents at end of period | 134.6 | 85.9 |
Non-cash activities: | ||
Fair value of common stock issued for acquisition of business | 613.8 | 0 |
Additions of property, plant and equipment included in trade accounts payable and other accrued expenses | 7.5 | 11.5 |
Additions of property, plant and equipment under a finance lease obligation | 8.5 | 19.2 |
Additions of assets under an operating lease obligation | $ 9.8 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | |
Beginning balance (in shares) at Dec. 31, 2017 | 141.1 | |||||
Beginning balance at Dec. 31, 2017 | $ 1,090.1 | $ 1.4 | $ 2,301.3 | $ (934.1) | $ (278.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 171.1 | 171.1 | ||||
Foreign currency translation adjustment | (61) | (61) | ||||
Pension and postretirement benefit adjustment | 0.1 | 0.1 | ||||
Derivative financial instruments, net of tax | 9.3 | 9.3 | ||||
Restricted stock units vested (in shares) | 0.3 | |||||
Restricted stock units vested | 0 | |||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (0.1) | |||||
Tax withholdings related to net share settlements of stock-based compensation awards | (3.7) | (3.7) | ||||
Stock option exercises (in shares) | 0.3 | |||||
Stock option exercises | 5.7 | 5.7 | ||||
Employee stock purchase plan | 0.6 | 0.6 | ||||
Stock-based compensation | 17.7 | 17.7 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 141.6 | |||||
Ending balance at Sep. 30, 2018 | 1,230.7 | $ 1.4 | 2,321.6 | (762.7) | (329.6) | |
Beginning balance (in shares) at Jun. 30, 2018 | 141.4 | |||||
Beginning balance at Jun. 30, 2018 | 1,171 | $ 1.4 | 2,313.4 | (812.3) | (331.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 49.6 | 49.6 | ||||
Foreign currency translation adjustment | 2 | 2 | ||||
Pension and postretirement benefit adjustment | 0 | |||||
Derivative financial instruments, net of tax | (0.1) | (0.1) | ||||
Tax withholdings related to net share settlements of stock-based compensation awards | (0.5) | (0.5) | ||||
Stock option exercises (in shares) | 0.2 | |||||
Stock option exercises | 4.6 | 4.6 | ||||
Employee stock purchase plan | 0.1 | 0.1 | ||||
Stock-based compensation | 4 | 4 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 141.6 | |||||
Ending balance at Sep. 30, 2018 | $ 1,230.7 | $ 1.4 | 2,321.6 | (762.7) | (329.6) | |
Beginning balance (in shares) at Dec. 31, 2018 | 141.7 | 141.7 | ||||
Beginning balance at Dec. 31, 2018 | $ 1,191.7 | $ 1.4 | 2,325 | (761.5) | (373.2) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (45.1) | (45.1) | ||||
Foreign currency translation adjustment | (12.1) | (12.1) | ||||
Pension and postretirement benefit adjustment | 0.1 | 0.1 | ||||
Derivative financial instruments, net of tax | (28.6) | (28.6) | ||||
Common stock issued for the Nexeo acquisition (in shares) | [1] | 27.9 | ||||
Common stock issued for the Nexeo acquisition | [1] | $ 649.3 | $ 0.3 | 649 | ||
Shares canceled (in shares) | [1] | (1.5) | ||||
Shares canceled | [1] | $ (35.5) | (35.5) | |||
Restricted stock units vested (in shares) | 0.4 | |||||
Restricted stock units vested | 0 | |||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (0.2) | |||||
Tax withholdings related to net share settlements of stock-based compensation awards | (2.8) | (2.8) | ||||
Stock option exercises (in shares) | 0.3 | |||||
Stock option exercises | 5.7 | 5.7 | ||||
Employee stock purchase plan | 0.6 | 0.6 | ||||
Stock-based compensation | $ 21.7 | 21.7 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 168.6 | 168.6 | ||||
Ending balance at Sep. 30, 2019 | $ 1,745 | $ 1.7 | 2,963.7 | (803.4) | (417) | |
Beginning balance (in shares) at Jun. 30, 2019 | 168.6 | |||||
Beginning balance at Jun. 30, 2019 | 1,774.5 | $ 1.7 | 2,959.4 | (805.9) | (380.7) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2.5 | 2.5 | ||||
Foreign currency translation adjustment | (31.9) | (31.9) | ||||
Pension and postretirement benefit adjustment | 0 | |||||
Derivative financial instruments, net of tax | (4.4) | (4.4) | ||||
Restricted stock units vested (in shares) | 0.1 | |||||
Restricted stock units vested | 0 | |||||
Tax withholdings related to net share settlements of stock-based compensation awards (in shares) | (0.1) | |||||
Tax withholdings related to net share settlements of stock-based compensation awards | 0 | |||||
Stock-based compensation | 4.4 | 4.4 | ||||
Other | $ (0.1) | (0.1) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 168.6 | 168.6 | ||||
Ending balance at Sep. 30, 2019 | $ 1,745 | $ 1.7 | $ 2,963.7 | $ (803.4) | $ (417) | |
[1] | Refer to “ Note 3: Business combinations ” for more information. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0.2 | $ 0.2 | $ (0.1) | ||
Derivative financial instruments, net of tax | $ 1.5 | $ (0.3) | $ 9.6 | $ (3.1) | |
Accounting Standards Update 2017-12 | |||||
Impact due to adoption of ASU's, net of tax | $ (0.3) |
Nature of operations
Nature of operations | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | 1. Nature of operations Headquartered in Downers Grove, Illinois, Univar Solutions Inc. (“the Company” or “Univar Solutions”) is a leading global chemicals and ingredients distributor and provider of specialty chemicals. The Company’s operations are structured into four operating segments that represent the geographic areas under which the Company manages its business: • Univar Solutions USA (“USA”) • Univar Solutions Canada (“Canada”) • Univar Solutions Europe, the Middle East and Africa (“EMEA”) • Univar Solutions Latin America (“LATAM”) In 2019, the Company renamed its “Rest of World” segment “Latin America” which includes certain developing businesses in Latin America (including Brazil and Mexico) and the Asia-Pacific region. |
Significant accounting policies
Significant accounting policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies Basis of presentation The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) as applicable to interim financial reporting. These condensed consolidated financial statements, in the Company’s opinion, include all adjustments consisting of normal recurring accruals necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, comprehensive income, cash flows and changes in stockholders’ equity. The results of operations for the periods presented are not necessarily indicative of the operating results that may be expected for the full year. The accompanying condensed consolidated financial statements of Univar Solutions includes the combined results of all directly and indirectly controlled companies, which have been adjusted to account for the elimination of intercompany balances and transactions. The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ materially from these estimates. These condensed consolidated financial statements and related footnotes are unaudited and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases” (Topic 842), which supersedes the lease recognition requirements in ASC Topic 840, “Leases.” On January 1, 2019, the Company adopted the new Accounting Standards Codification (“ASC”) Topic 842 (“new lease standard”) using the modified retrospective method. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the historical lease classification to carry forward. The Company also made an accounting policy election to not recognize leases with an initial term of 12 months or less on the balance sheet. The Company will recognize short-term lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. The Company recognized the cumulative effect of initially applying the new lease standard as an adjustment to the 2019 opening balance sheet. The cumulative effect of the standard’s adoption also includes adjustments related to previously unrecognized finance leases. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to the January 1, 2019 condensed consolidated balance sheet for the adoption of ASU 2016-02 “Leases” (Topic 842) is as follows: (in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets Property, plant and equipment, net $ 955.8 $ 5.4 $ 961.2 Other assets 84.3 166.8 251.1 Liabilities Current portion of long-term debt $ 21.7 $ (4.5 ) $ 17.2 Other accrued expenses 285.8 43.8 329.6 Long-term debt 2,350.4 9.9 2,360.3 Other long-term liabilities 98.4 123.0 221.4 In February 2018, the FASB issued ASU 2018-02 “Income Statement - Reporting Comprehensive Income” (Topic 220) “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“AOCI”) which gave entities the option to reclassify certain tax effects the FASB refers to as having been stranded, resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. The Company adopted the ASU as of January 1, 2019 and elected to reclassify $3.2 million of the stranded tax effects from accumulated other comprehensive loss to accumulated deficit. The Company also adopted the following standard during 2019, which did not have a material impact to the financial statements or financial statement disclosures: Standard Effective date 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 Accounting pronouncements issued and not yet adopted In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses” (Topic 326) - “Measurement of Credit Losses on Financial Instruments.” The ASU requires entities to use a Current Expected Credit Loss model, which is a new impairment model based on expected losses rather than incurred losses. The model requires entities to recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. Components included in the computation of the estimated contractual cash flows include relevant information about past events, current conditions and reasonable and supportable forecasts, which will result in the recognition of lifetime expected credit losses upon the initial recognition of the related assets. The guidance in this ASU will be included in financial statement and footnote disclosures subsequent to the January 1, 2020 adoption date. The Company is currently determining the impacts that will be reflected in the financial statements and financial statement disclosures subsequent to the ASU adoption date. In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement” (Topic 820) - “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU amends the requirements related to fair value disclosures to include new disclosure requirements and eliminates or modifies certain historic disclosures. The guidance in this ASU will be included in disclosures subsequent to the January 1, 2020 adoption date. The Company is currently determining the impacts that will be reflected in financial statement disclosures subsequent to the ASU adoption date. In August 2018, the FASB issued ASU 2018-14 “Compensation - Retirement Benefits - Defined Benefit Plans - General” (Subtopic 715-20) - “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU amends the requirements related to defined benefit pension and other postretirement plan disclosures to include new disclosure requirements and eliminates or clarifies certain historic disclosures. The guidance in this ASU will be included in disclosures subsequent to the January 1, 2021 adoption date. The Company is currently determining the impacts that will be reflected in financial statement disclosures subsequent to the ASU adoption date. The Company has not yet adopted the following standards, none of which is expected to have a material impact to the financial statements or financial statement disclosures: ASU Expected adoption date 2018-18 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 January 1, 2020 2018-17 Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) January 1, 2020 |
Business combinations
Business combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business combinations | 3. Business combinations 2019 Acquisitions Acquisition of Nexeo Solutions On February 28, 2019, the Company completed its previously announced acquisition of 100% of the equity interest of Nexeo Solutions, Inc. (“Nexeo”), a leading global chemicals and plastics distributor. The acquisition expands and strengthens Univar Solutions’ presence in North America and provides expanded opportunities to create the largest North American sales force in chemical and ingredients distribution and the broadest product offering. The total purchase price of the acquisition was $1,814.8 million , composed of $1,201.0 million of cash paid (net of cash acquired of $46.8 million ) and $613.8 million of newly issued shares of Univar Solutions common stock, which represented approximately 26.4 million shares, based on Univar Solutions’ closing stock price of $23.29 on February 27, 2019. The final 26.4 million shares issued include the cancellation of 1.5 million shares in connection with the appraisal litigation settlement, see “ Note 17: Commitments and contingencies ” for more information. The cash portion of the purchase price, acquisition related costs and repayment of approximately $936.3 million of Nexeo’s debt and other long-term liabilities were funded using the proceeds from the $781.5 million of incremental Term B Loans, $309.3 million borrowings under the New Senior ABL Facility and $175.0 million borrowings under the ABL Term Loan issued on February 28, 2019. Refer to “ Note 13: Debt ” for more information. As of September 30, 2019 , the Company updated the purchase price allocation to reflect adjustments from the third-party valuation firm's preliminary report valuing Nexeo’s tangible and intangible assets which included changes in working capital, assets and liabilities held for sale, property, plant and equipment, net, other assets and other liabilities. The adjustments to these balances resulted in a $65.0 million decrease to goodwill. The initial accounting for this acquisition is considered preliminary, and is subject to adjustments on receipt of additional information relevant to the acquisition to complete the opening balances for deferred income taxes. This valuation is in process and the preliminary values below are based on initial information that continues to be subject to the completion of the valuation and allocation of the assets acquired. The preliminary purchase price allocation at February 28, 2019 is as follows: (in millions) Trade accounts receivable, net $ 296.3 Inventories 150.2 Prepaid expenses and other current assets 55.6 Assets held for sale 888.2 Property, plant and equipment, net 262.3 Goodwill 617.2 Intangible assets, net 155.7 Other assets 37.4 Trade accounts payable (137.7 ) Other accrued expenses (139.4 ) Liabilities held for sale (221.5 ) Deferred tax liabilities (78.5 ) Other long-term liabilities (71.0 ) Purchase consideration, net of cash $ 1,814.8 Assets and liabilities held for sale are related to the Nexeo plastics distribution business (“Nexeo Plastics”). Nexeo Plastics was not aligned with the Company’s strategic objectives and, on March 29, 2019, the business was sold to an affiliate of One Rock Capital Partners, LLC for total proceeds of $664.3 million , net of cash disposed. Refer to “ Note 4: Discontinued operations ” for further information. The Company recorded $617.2 million of goodwill, consisting of $600.7 million in the USA segment, $6.2 million in Canada and $10.3 million in LATAM. The goodwill is primarily attributable to expected synergies from combining operations. The Company is in process of determining the amount of goodwill that is deductible for income tax purposes. The Company assumed 50.0 million warrants, equivalent to 25.0 million Nexeo shares, with an estimated aggregate fair value of $26.0 million at the February 28, 2019 closing date. The warrants were converted into the right to receive, upon exercise, the merger consideration consisting of approximately 7.6 million shares of Univar Solutions common stock plus cash. The warrants have an exercise price of $27.80 . These warrants will expire on June 9, 2021. The Company recorded the warrants as other long-term liabilities within the condensed consolidated balance sheet. Refer to “ Note 15: Fair value measurements ” for more information. The amounts of net sales and net loss from continuing operations related to the Nexeo chemical distribution business, included in the Company’s condensed consolidated statements of operations from March 1, 2019 to September 30, 2019 are as follows: (in millions) Net sales $ 1,061.1 Net loss from continuing operations (2.4 ) The following unaudited pro forma financial information combines the unaudited results of operations as if the acquisition of Nexeo had occurred at the beginning of the periods presented below. The unaudited pro forma results for all periods presented below exclude the results of operations related to Nexeo Plastics, as this divestiture was reflected as discontinued operations. Refer to “ Note 4: Discontinued operations ” for additional information. The unaudited pro forma financial information is as follows: Three months ended September 30, Nine months ended September 30, (in millions) 2019 2018 2019 2018 Net sales $ 2,387.3 $ 2,659.6 $ 7,457.9 $ 8,248.1 Net income (loss) from continuing operations 1.1 70.4 (39.5 ) 227.7 The pro forma financial information is for comparative purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2018. The unaudited pro forma information is based upon accounting estimates and judgments the Company believes are reasonable. The unaudited pro forma information reflects adjustments directly attributed to the business combination including amortization on acquired intangible assets, interest expense, transaction and acquisition related costs, depreciation related to purchase accounting fair value adjustments and the related tax effects. |
Discontinued operations
Discontinued operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | 4. Discontinued operations On March 29, 2019, the Company completed the sale of the plastics distribution business of Nexeo to an affiliate of One Rock Capital Partners, LLC for total proceeds of $664.3 million (net of cash disposed of $2.4 million ), including $26.7 million for excess working capital. The Nexeo preliminary purchase price allocation is inclusive of these working capital adjustments. Refer to “ Note 3: Business combinations ” for more information. In connection with the transaction, the Company entered into a Transition Services Agreement (TSA), a Warehouse Service Agreement (WSA) and Real Property Agreements with One Rock Capital Partners, LLC which are designed to ensure and facilitate an orderly transfer of business operations. The services provided under the transitional arrangements will terminate at various times, between six and twenty-four months and can be renewed with a maximum of two twelve-month periods. The income and expense for the services will be reported as other operating expenses, net in the condensed consolidated statements of operations. The Real Property Agreements will have a maximum tenure of 3 years . These arrangements do not constitute significant continuing involvement in the plastics distribution business. The following table summarizes the operating results of the Company’s discontinued operations related to the sale described above for the nine months ended September 30, 2019 , as presented in “Net income from discontinued operations” on the condensed consolidated statements of operations. (in millions) Nine months ended September 30, 2019 External sales $ 156.9 Cost of goods sold (exclusive of depreciation) 136.7 Outbound freight and handling 3.5 Warehousing, selling and administrative 7.9 Other expenses 1.4 Income from discontinued operations before income taxes $ 7.4 Income tax expense from discontinued operations (1) 2.0 Net income from discontinued operations $ 5.4 (1) The provision for income taxes for the nine months ended September 30, 2019 includes an adjustment to the tax expense related to the one month operations reported as of March 31, 2019. There were no significant non-cash operating activities from the Company’s discontinued operations related to the plastics distribution business. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 5. Revenue The Company disaggregates revenues from contracts with customers by both geographic segments and revenue contract types. Geographic reportable segmentation is pertinent to understanding Univar Solutions’ revenues, as it aligns to how the Company reviews the financial performance of its operations. Revenue contract types are differentiated by the type of good or service Univar Solutions offers customers, since the contractual terms necessary for revenue recognition are unique to each of the identified revenue contract types. The following table disaggregates external customer net sales by major stream: (in millions) USA Canada EMEA LATAM Consolidated Three months ended September 30, 2019 Chemical Distribution $ 1,477.0 $ 207.3 $ 424.7 $ 114.0 $ 2,223.0 Crop Sciences — 64.3 — — 64.3 Services 85.1 11.4 0.3 3.2 100.0 Total external customer net sales $ 1,562.1 $ 283.0 $ 425.0 $ 117.2 $ 2,387.3 (in millions) USA Canada EMEA LATAM Consolidated Nine months ended September 30, 2019 Chemical Distribution $ 4,240.1 $ 644.1 $ 1,365.6 $ 321.2 $ 6,571.0 Crop Sciences — 281.9 — — 281.9 Services 234.5 35.6 1.0 7.9 279.0 Total external customer net sales $ 4,474.6 $ 961.6 $ 1,366.6 $ 329.1 $ 7,131.9 Deferred revenue Deferred revenues are recognized as a contract liability when customers provide Univar Solutions with consideration prior to the Company satisfying a performance obligation. The following table provides information pertaining to the deferred revenue balance and account activity: (in millions) Deferred revenue as of January 1, 2019 $ 45.6 Deferred revenue as of September 30, 2019 5.7 Revenue recognized that was included in the deferred revenue balance at the beginning of the period 44.4 The deferred revenue balances are all expected to have a duration of one year or less and are recorded within the other accrued expenses line item of the condensed consolidated balance sheets. |
Other operating expenses, net
Other operating expenses, net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other operating expenses, net | 6. Other operating expenses, net Other operating expenses, net consisted of the following: Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Acquisition and integration related expenses $ 18.6 $ 5.5 $ 128.3 $ 6.9 Stock-based compensation expense 4.4 4.0 21.7 17.7 Restructuring charges 0.6 2.9 1.2 3.4 Other employee termination costs 4.2 2.7 23.3 9.5 Other facility exit costs (1) 5.6 — 5.6 — Saccharin legal settlement — — 62.5 — Other (3.2 ) (2.7 ) 16.2 (0.5 ) Total other operating expenses, net $ 30.2 $ 12.4 $ 258.8 $ 37.0 (1) Other facility exit costs includes $3.6 million recorded as an estimated withdrawal liability associated with a multiemployer pension plan related to a facility closure. |
Restructuring charges
Restructuring charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | 7. Restructuring charges Restructuring charges recorded relate to large, strategic initiatives aimed at streamlining the Company’s cost structure and improving its operations. These actions primarily result in workforce reductions, lease termination costs and other facility rationalization costs. Restructuring charges are recorded in other operating expenses, net in the condensed consolidated statement of operations. 2018 Restructuring In 2018, the Company recorded restructuring charges of $3.2 million in USA, consisting of $3.1 million in employee termination costs and $0.1 million in other exit costs for employees impacted by a decision to consolidate departments. Additionally, the Company recorded restructuring charges of $0.9 million in Other, relating to employee termination costs. The Company recorded restructuring charges of $0.5 million and $1.3 million in USA, consisting of $0.7 million and $1.3 million in employee termination costs during the three and nine months ended September 30, 2019 as well as reduced its estimate by $0.1 million in both facility and other exist costs during the three months ended September 30, 2019 . The Company expects to incur approximately $1.3 million of additional employee termination and other exit costs over the next year and expects this program to be substantially completed by 2020. Also during the year ended December 31, 2018, the Company recorded restructuring charges of $0.9 million in EMEA relating to employee termination costs. The Company recorded restructuring charges of $0.1 million in facility exit costs during the three and nine months ended September 30, 2019 and reduced its estimate by $0.2 million within employee termination costs for this program during the nine months ended September 30, 2019 . The Company does not expect to incur material costs in the future related to this restructuring program. The actions associated with this program are expected to be completed by the end of 2019. The following table summarizes activity related to accrued liabilities associated with restructuring: (in millions) January 1, 2019 Charge to earnings Cash paid Non-cash and other September 30, 2019 Employee termination costs $ 4.2 $ 1.1 $ (4.6 ) $ — $ 0.7 Facility exit costs 5.0 0.1 (0.1 ) — 5.0 Other exit costs 0.2 — — — 0.2 Total $ 9.4 $ 1.2 $ (4.7 ) $ — $ 5.9 (in millions) January 1, 2018 Charge to earnings Cash paid Non-cash and other December 31, 2018 Employee termination costs $ 3.0 $ 5.3 $ (3.4 ) $ (0.7 ) $ 4.2 Facility exit costs 10.2 (0.7 ) (4.4 ) (0.1 ) 5.0 Other exit costs (0.5 ) 0.2 (0.1 ) 0.6 0.2 Total $ 12.7 $ 4.8 $ (7.9 ) $ (0.2 ) $ 9.4 Restructuring liabilities of $5.5 million and $5.9 million were classified as current in other accrued expenses in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively. The long-term portion of restructuring liabilities of $0.4 million and $3.5 million were recorded in other long-term liabilities in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively, and primarily consists of facility exit costs that are expected to be paid within the next five years . |
Other (expense) income, net
Other (expense) income, net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other (expense) income, net | 8. Other (expense) income, net Other (expense) income, net consisted of the following gains (losses): Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Foreign currency transactions $ (0.9 ) $ (3.7 ) $ (3.7 ) $ (8.0 ) Foreign currency denominated loans revaluation 16.8 0.8 17.3 (0.6 ) Undesignated foreign currency derivative instruments (1) (20.6 ) 2.7 (26.2 ) 3.6 Undesignated interest rate swap contracts (1) (1.0 ) — (3.8 ) — Non-operating retirement benefits (2) 0.5 3.3 1.7 10.2 Other (0.3 ) (0.6 ) (2.5 ) (2.2 ) Total other (expense) income, net $ (5.5 ) $ 2.5 $ (17.2 ) $ 3.0 (1) Refer to “ Note 16: Derivatives ” for more information. (2) Refer to “ Note 9: Employee benefit plans ” for more information. |
Employee benefit plans
Employee benefit plans | 9 Months Ended |
Sep. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Employee benefit plans | 9. Employee benefit plans The following table summarizes the components of net periodic cost (benefit) recognized in the condensed consolidated statements of operations: Domestic - Defined Benefit Pension Plans Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Interest cost (1) $ 6.8 $ 6.8 $ 20.4 $ 20.4 Expected return on plan assets (1) (6.3 ) (7.8 ) (18.9 ) (23.4 ) Net periodic cost (benefit) $ 0.5 $ (1.0 ) $ 1.5 $ (3.0 ) Foreign - Defined Benefit Pension Plans Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Service cost (2) $ 0.6 $ 0.7 $ 1.8 $ 2.1 Interest cost (1) 3.9 3.8 11.7 11.7 Expected return on plan assets (1) (4.9 ) (6.2 ) (15.0 ) (19.1 ) Prior service cost (1) — — 0.1 0.1 Net periodic benefit $ (0.4 ) $ (1.7 ) $ (1.4 ) $ (5.2 ) (1) These amounts are included in other (expense) income, net . (2) Service cost is included in warehouse, selling and administrative expenses. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income taxes The Company’s tax provision for interim periods is determined using an estimate of the annual effective income tax rate, adjusted for discrete items, if any, that occur in the relevant period. Each quarter, an estimate of the annual effective income tax rate is updated should management revise its forecast of earnings based upon the Company’s operating results. If there is a change in the estimated effective annual income tax rate, a cumulative adjustment is made. The quarterly income tax provision and forecast estimate of the annual effective income tax rate may be subject to volatility due to several factors, including the complexity in forecasting jurisdictional earnings before income tax, the rate of realization of forecasting earnings or losses by quarter, acquisitions, divestitures, foreign currency gains and losses, pension gains and losses, and other factors. The income tax expense of $43.2 million and $38.4 million for the three and nine months ended September 30, 2019 resulted in an effective income tax rate of 94.5% and (317.4)% , respectively. Discrete tax expense (benefit) of $9.1 million and $(4.9) million are included in the $43.2 million and the $38.4 million income tax expense for the three and nine month period ended September 30, 2019 . The Company’s effective income tax rate without discrete items was 68.4% , higher than the US federal statutory rate of 21.0% primarily due to the impact of non-deductible Nexeo related acquisition and integration costs, along with state taxes, foreign rate differential, non-deductible compensation and other expenses, and an increase in the valuation allowance on certain income tax attributes. The nine months ended September 30, 2019 discrete tax benefit of $4.9 million is attributable to the indirect effects of the Nexeo Plastics sale offset by the US return to provision adjustment, an increase in valuation allowance on tax attributes and various other items. The income tax expense of $20.3 million and $57.7 million for the three and nine months ended September 30, 2018 , resulted in an effective income tax rate of 29.0% and 25.2% , respectively. The Company’s effective income tax rate for the three and nine month period ended September 30, 2018 was higher than the US federal statutory rate of 21.0% primarily due to the addition of state taxes, and the higher tax rates incurred on the Company’s earnings outside the US, including the overall net impact of the 2017 US Tax Cuts and Jobs Act on foreign net earnings. The increases in the effective income tax rate were partially offset by the release of valuation allowances on certain tax attributes. The Company’s effective income tax rate for the nine month period ended September 30, 2018 was lower than its three month period effective income tax rate ended September 30, 2018 mainly due to the impact of the discrete tax benefits recorded in previous quarters. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | 11. Earnings per share The following table presents the basic and diluted earnings per share computations: Three months ended September 30, Nine months ended September 30, (in millions, except per share data) 2019 2018 2019 2018 Basic: Net income (loss) from continuing operations $ 2.5 $ 49.6 $ (50.5 ) $ 171.1 Net income from discontinued operations — — 5.4 — Net income (loss) $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Less: earnings allocated to participating securities — 0.1 — 0.3 Earnings allocated to common shares outstanding $ 2.5 $ 49.5 $ (45.1 ) $ 170.8 Weighted average common shares outstanding 168.6 141.2 162.6 141.1 Basic income (loss) per common share from continuing operations $ 0.01 $ 0.35 $ (0.31 ) $ 1.21 Basic income per common share from discontinued operations — — 0.03 — Basic income (loss) per common share (2) $ 0.01 $ 0.35 $ (0.28 ) $ 1.21 Diluted: Net income (loss) from continuing operations $ 2.5 $ 49.6 $ (50.5 ) $ 171.1 Net income from discontinued operations — — 5.4 — Net income (loss) $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Less: earnings allocated to participating securities — — — — Earnings allocated to common shares outstanding $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Weighted average common shares outstanding 168.6 141.2 162.6 141.1 Effect of dilutive securities: stock compensation plans (1) 0.9 1.1 — 1.0 Weighted average common shares outstanding – diluted 169.5 142.3 162.6 142.1 Diluted income (loss) per common share from continuing operations $ 0.01 $ 0.35 $ (0.31 ) $ 1.20 Diluted income per common share from discontinued operations — — 0.03 — Diluted income (loss) per common share (2) $ 0.01 $ 0.35 $ (0.28 ) $ 1.20 (1) Stock options to purchase 3.1 million and 1.5 million shares of common stock and restricted stock of nil were outstanding during the three months ended September 30, 2019 and 2018 , respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Stock options to purchase 3.0 million and 1.6 million shares of common stock and restricted stock of 0.8 million and nil were outstanding during the nine months ended September 30, 2019 and 2018 , respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Diluted shares outstanding also did not include 7.6 million and 6.0 million shares of common stock issuable on the exercise of warrants because the warrants were out-of-the-money for the three and nine months ended September 30, 2019 . (2) As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters’ earnings per share may not equal the earnings per share for any year-to-date period. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated other comprehensive loss | 12. Accumulated other comprehensive loss The following tables present the changes in accumulated other comprehensive loss by component, net of tax: (in millions) Cash flow hedges Defined benefit pension items Currency translation items Total Balance as of December 31, 2018 $ 8.9 $ (1.1 ) $ (381.0 ) $ (373.2 ) Impact due to adoption of ASU 2018-02 (1) 1.5 (4.7 ) (3.2 ) Other comprehensive (loss) income before reclassifications (22.1 ) — (12.1 ) (34.2 ) Amounts reclassified from accumulated other comprehensive loss (6.5 ) 0.1 — (6.4 ) Net current period other comprehensive (loss) income $ (27.1 ) $ 0.1 $ (16.8 ) $ (43.8 ) Balance as of September 30, 2019 $ (18.2 ) $ (1.0 ) $ (397.8 ) $ (417.0 ) Balance as of December 31, 2017 $ 6.7 $ (1.2 ) $ (284.0 ) $ (278.5 ) Impact due to adoption of ASU 2017-12 (2) 0.5 — — 0.5 Other comprehensive income (loss) before reclassifications 13.3 — (61.0 ) (47.7 ) Amounts reclassified from accumulated other comprehensive loss $ (4.0 ) $ 0.1 $ — $ (3.9 ) Net current period other comprehensive income (loss) $ 9.8 $ 0.1 $ (61.0 ) $ (51.1 ) Balance as of September 30, 2018 $ 16.5 $ (1.1 ) $ (345.0 ) $ (329.6 ) (1) Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “ Note 2: Significant accounting policies ” for more information. (2) Adjusted due to the adoption of ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018. The following is a summary of the amounts reclassified from accumulated other comprehensive loss to net income (loss): Three months ended September 30, Nine months ended September 30, (in millions) 2019 (1) 2018 (1) 2019 (1) 2018 (1) Location of impact on Amortization of defined benefit pension items: Prior service cost $ — $ — $ 0.1 $ 0.1 Other (expense) income, net Tax expense — — — — Income tax expense Net of tax $ — $ — $ 0.1 $ 0.1 Cash flow hedges: Interest rate swap contracts $ (1.2 ) $ (2.4 ) $ (8.7 ) $ (5.4 ) Interest expense Tax expense 0.3 0.6 2.2 1.4 Income tax expense Net of tax $ (0.9 ) $ (1.8 ) $ (6.5 ) $ (4.0 ) Total reclassifications for the period $ (0.9 ) $ (1.8 ) $ (6.4 ) $ (3.9 ) (1) Amounts in parentheses indicate credits to net income (loss) in the condensed consolidated statement of operations. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 13. Debt Short-term financing Short-term financing consisted of the following: (in millions) September 30, 2019 December 31, 2018 Amounts drawn under credit facilities $ 2.1 $ 4.7 Bank overdrafts 0.8 3.4 Total short-term financing $ 2.9 $ 8.1 As of September 30, 2019 and December 31, 2018 , the Company had $140.2 million and $139.4 million in outstanding letters of credit, respectively. Long-term debt Long-term debt consisted of the following: (in millions) September 30, 2019 December 31, 2018 Senior Term Loan Facilities: Term B Loan due 2024, variable interest rate of 4.29% and 4.77% at September 30, 2019 and December 31, 2018, respectively $ 1,438.0 $ 1,747.8 Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at September 30, 2019 381.7 — Term B-4 Loan due 2024, variable interest rate of 4.54% at September 30, 2019 245.0 — Asset Backed Loan (ABL) Facilities: North American ABL Facility due 2024, variable interest rate of 3.74% at September 30, 2019 284.3 — Canadian ABL Term Loan due 2022, variable interest rate of 4.20% at September 30, 2019 173.7 — Euro ABL Facility due 2023, variable interest rate of 1.75% at September 30, 2019 and December 31, 2018 38.1 58.5 North American ABL Facility due 2020, variable interest rate of 4.19% at December 31, 2018 (amended February 2019) — 134.7 Senior Unsecured Notes: Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at September 30, 2019 and December 31, 2018 399.5 399.5 Finance lease obligations 64.9 54.8 Total long-term debt before discount $ 3,025.2 $ 2,395.3 Less: unamortized debt issuance costs and discount on debt (29.1 ) (23.2 ) Total long-term debt $ 2,996.1 $ 2,372.1 Less: current maturities (19.0 ) (21.7 ) Total long-term debt, excluding current maturities $ 2,977.1 $ 2,350.4 The weighted average interest rate on long-term debt was 4.39% and 4.29% as of September 30, 2019 and December 31, 2018 , respectively. On April 3, 2019, using the proceeds from the sale of Nexeo Plastics, the Company repaid $448.8 million of its outstanding Euro and USD Term Loans due 2024. As a result of the prepayment of $309.8 million of the Term B Loan, €74.8 million of the Euro Term B-2 Loan and $55.0 million of the Term B-4 Loan, there are no mandatory principal payments required under the Senior Term Facilities until 2024. On February 28, 2019 , the Company and certain of its subsidiaries entered into the Fourth Amendment (the “ Fourth Amendment ”) to that certain credit agreement, dated July 1, 2015 (as amended prior to the Fourth Amendment, the “ Credit Agreement ” and as amended by the Fourth Amendment, the “ Amended Credit Agreement ”). Pursuant to the Fourth Amendment, Goldman Sachs Bank USA and the other lenders agreed to provide a new Term B-4 loan facility in an aggregate principal amount of $300.0 million and a new Euro Term B-2 loan facility in an aggregate principal amount of €425.0 million (collectively, the “Incremental Term Loans”, and together with the Amended Credit Agreement, the “Senior Term Facilities”). The interest rates applicable to the term loans under the Senior Term Facilities are based on, at the borrower’s option, (i) in the case of dollar denominated Term B-4 loan facility, a fluctuating rate of interest determined by reference to a base rate plus an applicable margin equal to 1.75% or a Eurocurrency rate plus an applicable margin equal to 2.75% (in each case with one 0.25% step down based on achievement of a specific leverage level) and (ii) in the case of Euro denominated Euro Term B-2 loan facility, a fluctuating rate of interest determined by reference to a EURIBOR rate plus an applicable margin equal to 2.75% . The Term B-4 loan and the Euro Term B-2 loan remaining balances are due on the maturity date of July 1, 2024 . The Company can repay either loan in whole or part without penalty. On February 28, 2019, the Company and certain of its US and Canadian subsidiaries entered into an Amended and Restated ABL Credit Agreement pursuant to which Bank of America N.A. and the other lenders party thereto agreed to provide for a five year senior secured ABL credit facility in an aggregate amount of $1.2 billion US dollars and $325.0 million Canadian dollars and a three year secured Canadian dollar ABL term loan facility (“ABL Term Loan”) in an aggregate principal amount of the Canadian dollar equivalent of $175.0 million (collectively, the “New Senior ABL Facility”). The New Senior ABL Facility amends and restates in full the ABL facility entered into by the Company on July 28, 2015. Under the two revolving tranches, the borrowers may request loan advances and make loan repayments until the maturity date of February 28, 2024. The maximum amount available to be borrowed under the New Senior ABL Facility will be determined by a borrowing base consisting of eligible inventory, eligible accounts receivable and cash of Univar Solutions and certain of its subsidiaries. The interest rates applicable to the loans under the New Senior ABL Facility are based on, at the borrower’s option, (i) with respect to initial term loan facility under the New Senior ABL Facility, a fluctuating rate of interest determined by reference to either a prime rate plus an applicable margin ranging from 1.00% to 1.25% or a BA rate plus an applicable margin ranging from 2.00% to 2.25% and (ii) with respect to the US and Canadian revolving loans under the New Senior ABL Facility, a fluctuating rate of interest determined by reference to a base rate plus an applicable margin ranging from 0.25% to 0.50% or a Eurocurrency rate plus an applicable margin ranging from 1.25% to 1.50% . The applicable margin will be adjusted after the completion of each full fiscal quarter based upon the pricing grid in the New Senior ABL Facility. The ABL Term Loan is payable in quarterly installments of 25.0% of the aggregate initial principal amount commencing June 30, 2021 with a final amortization payment on February 28, 2022. Assets pledged under the New Senior ABL Facility, Senior Term Facilities and the Euro ABL include $52.7 million of cash, $1,175.7 million of trade accounts receivable, net, $735.5 million of inventories, $136.0 million of prepaid expenses and other current assets and $975.0 million of property, plant and equipment, net. As a result of the February 2019 amendment related to the New Senior ABL Facility, the Company recognized a loss on extinguishment of debt of $0.7 million during the nine months ended September 30, 2019 . |
Supplemental balance sheet info
Supplemental balance sheet information | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental balance sheet information | 14. Supplemental balance sheet information Property, plant and equipment, net (in millions) September 30, 2019 December 31, 2018 Property, plant and equipment, at cost $ 2,228.7 $ 1,925.9 Less: accumulated depreciation (1,067.6 ) (970.1 ) Property, plant and equipment, net $ 1,161.1 $ 955.8 Finance lease assets, net Included within property, plant and equipment, net are assets related to finance leases where the Company is the lessee. The below table summarizes the cost and accumulated depreciation related to these assets: (in millions) September 30, 2019 December 31, 2018 Finance lease assets, at cost $ 115.4 $ 89.4 Less: accumulated depreciation (52.0 ) (37.4 ) Finance lease assets, net $ 63.4 $ 52.0 Intangible assets, net The gross carrying amounts and accumulated amortization of the Company’s intangible assets were as follows: September 30, 2019 December 31, 2018 (in millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets: Customer relationships $ 1,001.9 $ (663.0 ) $ 338.9 $ 846.1 $ (620.3 ) $ 225.8 Other 174.1 (164.8 ) 9.3 175.1 (162.8 ) 12.3 Total intangible assets $ 1,176.0 $ (827.8 ) $ 348.2 $ 1,021.2 $ (783.1 ) $ 238.1 Other intangible assets consist of intellectual property trademarks, trade names, supplier relationships, non-compete agreements and exclusive distribution rights. Impairment charges The Company has announced closure of certain production facilities in USA during the third quarter of 2019. The Company determined that these decisions indicated a triggering event, requiring the assessment of recoverability of these long-lived assets. Testing the assets for recoverability involves developing estimates of future cash flows directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the assets. As the inputs for testing recoverability are largely based on management’s judgments and are not generally observable in active markets, the Company considers such measurements to be Level 3 measurements in the fair value hierarchy. The Company tested the recoverability of its long-lived assets and determined the carrying amount of the assets exceeded the sum of the expected undiscounted future cash flows. As a result, the Company recorded a non-cash, pretax impairment charge of $7.0 million related to property, plant and equipment within its condensed consolidated statements of operations during the three months ended September 30, 2019 . |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 15. Fair value measurements Items measured at fair value on a recurring basis The following table presents the Company’s gross assets and liabilities measured on a recurring basis: Level 2 Level 3 (in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Financial current assets: Forward currency contracts $ 0.3 $ 0.3 $ — $ — Interest rate swap contracts — 12.4 — — Financial non-current assets: Interest rate swap contracts — 1.5 — — Financial current liabilities: Forward currency contracts 20.0 0.2 — — Interest rate swap contracts 5.6 — — — Financial non-current liabilities: Interest rate swap contracts 22.7 — — — Warrant liability — — 19.2 — The net amounts by legal entity related to forward currency contracts included in prepaid and other current assets were $0.3 million and $0.3 million as of September 30, 2019 and December 31, 2018 , respectively. The net amounts related to forward currency contracts included in other accrued expenses were $20.0 million and $0.2 million as of September 30, 2019 and December 31, 2018 , respectively. The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. The fair value of interest rate swaps is determined by estimating the net present value of amounts to be paid under the agreement offset by the net present value of the expected cash inflows based on market rates and associated yield curves. Based on these valuation methodologies, these derivative contracts are classified as Level 2 in the fair value hierarchy. The warrant liability in the table above consisted of the fair value of warrants assumed in connection with the Nexeo acquisition. Refer to “ Note 3: Business combinations ” for more information. The fair value of the warrant liability is calculated using the Black-Scholes-Merton option valuation model. The fair value of the warrants was computed using the following assumptions: expected option life two years , volatility 26.07% , and risk-free interest rate of 1.63% . As the Company does not have sufficient historical volatility data, the expected volatility is based on the average historical data of a peer group of public companies over a period equal to the expected term of the stock options. The risk-free interest rate assumption was based on the US Treasury rates. Based on the valuation methodology, the warrant liability is classified as Level 3 in the fair value hierarchy. The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consists of the warrant liability related to the Nexeo acquisition. (in millions) Warrant Liability Fair value as of December 31, 2018 $ — Additions 26.0 Fair value adjustments (6.8 ) Fair value as of September 30, 2019 $ 19.2 Fair value adjustments are recorded within other operating expenses, net in the condensed consolidated statement of operations. Financial instruments not carried at fair value The estimated fair value of financial instruments not carried at fair value in the condensed consolidated balance sheets were as follows: September 30, 2019 December 31, 2018 (in millions) Carrying Amount Fair Value Carrying Amount Fair Financial liabilities: Long-term debt including current portion (Level 2) $ 2,996.1 $ 3,043.8 $ 2,372.1 $ 2,314.3 The fair values of the long-term debt, including the current portions, were based on current market quotes for similar borrowings and credit risk adjusted for liquidity, margins and amortization, as necessary. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 16. Derivatives Interest rate swaps The objective of the designated interest rate swap contracts is to offset the variability of cash flows in LIBOR indexed debt interest payments attributable to changes in the aforementioned benchmark interest rate related to the USD Term B Loans and USA ABL Facility due 2024. As of September 30, 2019 and December 31, 2018 , the Company had designated interest rate swap contracts with a total notional amount of $1.8 billion and $2.0 billion , respectively. In March 2019 and December 2018, the Company entered into interest rate swap contracts with a total notional amount of $300.0 million and $500.0 million effective March 2019 and June 2019, respectively whereby a fixed rate of interest (weighted average of 2.27% and 2.73% , respectively) is paid and a variable rate of interest (three-month LIBOR) is received as calculated on the notional amount. In 2017, the Company entered into interest rate swap contracts with a remaining notional amount of $1.0 billion whereby a fixed rate of interest (weighted average of 1.70% ) is paid and a variable rate of interest (three-month LIBOR) is received as calculated on the notional amount. As of September 30, 2019 , the designated interest rate swaps held by the Company continue to qualify for hedge accounting. The Company recognizes the changes in fair value of the interest rate swap contracts, whether it is due to effectiveness or ineffectiveness, in other comprehensive income and subsequently is reclassified to the income statement when the hedged item impacts earnings. During the three and nine months ended September 30, 2019 , there were $1.2 million and $8.7 million in gains on our interest rate swap contracts that were reclassified to interest expense in the condensed consolidated statement of operations, respectively. As of September 30, 2019 , the Company estimates that $4.6 million of derivative losses included in accumulated other comprehensive loss will be reclassified into the condensed consolidated statement of operations within the next 12 months. The activity related to our cash flow hedges is included in “ Note 12: Accumulated other comprehensive loss .” In March 2019, the Company entered into an interest rate swap contract with a total notional amount of $200.0 million effective March 2019 which is not designated against long-term debt. The interest rate swap is used to manage interest rate risk. The Company does not apply hedge accounting for this interest rate swap contract. Changes in fair value of the interest rate swap contract is recognized directly in other (expense) income, net in the condensed consolidated statement of operations. Refer to “ Note 8: Other (expense) income, net ” for additional information. The fair value of interest rate swaps is recorded either in prepaid expenses and other current assets, other assets, other accrued expenses or other long-term liabilities in the condensed consolidated balance sheets. As of September 30, 2019 and December 31, 2018 a current liability of $5.6 million was included in other accrued expenses and a current asset of $12.4 million was included in other current assets, respectively. As of September 30, 2019 a non-current liability of $22.7 million was included in other long-term liabilities. As of December 31, 2018 , a non-current asset of $1.5 million was included in other assets. Foreign currency derivatives The Company uses forward currency contracts to hedge earnings from the effects of foreign exchange relating to certain of the Company’s monetary assets and liabilities denominated in a foreign currency. These derivative instruments are not formally designated as hedges by the Company and the terms of these instruments range from one to three months. Forward currency contracts are recorded at fair value in either prepaid expenses and other current assets or other accrued expenses in the condensed consolidated balance sheet, reflecting their short-term nature. The fair value adjustments and gains and losses are included in other (expense) income, net within the condensed consolidated statements of operations. Refer to “ Note 8: Other (expense) income, net ” for more information. On June 28, 2019, the Company entered into a €350.0 million forward currency contract to hedge foreign exchange risk related to the Euro Term B loan. On September 30, 2019, the Company entered into a new forward currency contract with a total notional amount of €350.0 million with a termination date of November 1, 2019 to replace its existing forward currency contract which has a termination date of October 1, 2019. The total notional amount of undesignated forward currency contracts were $894.2 million and $108.1 million as of September 30, 2019 and December 31, 2018 , respectively. Cash flows associated with derivative financial instruments are recognized in the operating section of the condensed consolidated statement of cash flows. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 17. Commitments and contingencies Litigation In the ordinary course of business, the Company is subject to pending or threatened claims, lawsuits, regulatory matters and administrative proceedings from time to time. Where appropriate the Company has recorded provisions in the condensed consolidated financial statements for these matters. The liabilities for injuries to persons or property are in some instances covered by liability insurance, subject to various deductibles and self-insured retentions. The Company is subject to liabilities from claims alleging personal injury from exposure to asbestos. The claims result primarily from an indemnification obligation related to Univar USA Inc.’s (“Univar”) 1986 purchase of McKesson Chemical Company from McKesson Corporation (“McKesson”). Univar is also a defendant in a small number of asbestos claims. As of September 30, 2019 , there were fewer than 77 asbestos-related claims for which the Company has liability for defense and indemnity pursuant to the indemnification obligation. The volume of such cases has decreased in recent quarters. Historically, the vast majority of the claims against both McKesson and Univar have been dismissed without payment. The Company does incur costs in defending these claims. While the Company is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any of these matters will have a material effect on its overall financial position, results of operations or cash flows. However, the Company cannot predict the outcome of any present or future claims or litigation and adverse developments could negatively impact earnings or cash flows in a particular future period. Merger-related Appraisal Litigation In connection with the previously disclosed acquisition of Nexeo Solutions, Inc., on June 26, 2019, the Company reached an agreement with BCIM to resolve a dispute regarding the fair value of 5.0 million shares of Nexeo common stock, for which BCIM sought appraisal in a petition filed in the Delaware Court of Chancery, captioned BCIM Strategic Value Master Fund, LP v. Nexeo Solutions, Inc., No. 2019-0363-KSJM. The terms of the agreement, among other matters, provide that, in exchange for a release and dismissal of all asserted claims, the Company will make a cash payment of $63.5 million to BCIM and, as a result, BCIM will relinquish any and all rights to approximately $15.1 million in cash and 1.5 million shares of Univar Solutions common stock valued at $35.5 million in the custody of Equiniti, the transfer agent. With this resolution, the cash and shares were returned to the Company. During the third quarter of 2019, the Company paid the $63.5 million due to BCIM. The period during which former holders of Nexeo common stock were eligible to seek appraisal has expired, and no other such claims are pending. Environmental The Company is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively “environmental remediation work”) and from time to time becomes aware of compliance matters regarding possible or alleged violations of these laws or regulations. For example, over the years, the Company has been identified as one of numerous “potentially responsible parties” (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act and/or similar state laws that impose liability for costs relating to environmental remediation work. As a PRP, the Company may be required to pay a share of the costs of investigation and clean up of certain sites. The Company is currently engaged in environmental remediation work at approximately 130 locations, some that are now or were previously Company-owned/occupied and some that were never Company-owned/occupied (“non-owned sites”). The Company’s environmental remediation work at some sites is being conducted pursuant to governmental proceedings or investigations. At other sites, the Company, with appropriate state or federal agency oversight and approval, is conducting the environmental remediation work voluntarily. The Company is currently undergoing remediation efforts or is in the process of active review of the need for potential remediation efforts at approximately 108 current or formerly Company-owned/occupied sites. In addition, the Company may be liable as a PRP for a share of the clean-up of approximately 22 non-owned sites. These non-owned sites are typically (a) locations of independent waste disposal or recycling operations with alleged or confirmed contaminated soil and/or groundwater to which the Company may have shipped waste products or drums for re-conditioning, or (b) contaminated non-owned sites near historical sites owned or operated by the Company or its predecessors from which contamination is alleged to have arisen. In determining the appropriate level of environmental reserves, the Company considers several factors such as information obtained from investigatory studies; changes in the scope of remediation; the interpretation, application and enforcement of laws and regulations; changes in the costs of remediation programs; the development of alternative cleanup technologies and methods; and the relative level of the Company’s involvement at various sites for which the Company is allegedly associated. It is the Company’s policy to record appropriate liabilities on a case by case basis when remedial efforts or claims are probable, and the costs are reasonable to estimate. The Company continually monitors its own sites and work with other PRPs to deploy feasible remediation techniques. The recorded liabilities are adjusted periodically as remediation progresses or other relevant information becomes available. The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as components of planned remediation activities are completed and the scope, timing and costs of remediation are changed. Given the uncertainties regarding laws, regulations, technology, information related to sites and potentially responsible parties, the Company does not believe it is possible to develop an estimate of the range of reasonably possible losses in excess of the recorded liabilities. Project lives vary, depending on the specific site and type of remediation project. Associated cash payments are expected to be paid from operating activities. Changes in total environmental liabilities are as follows: Nine months ended September 30, (in millions) 2019 2018 Environmental liabilities at beginning of period $ 83.5 $ 89.2 Revised obligation estimates 11.8 10.3 Environmental payments (12.3 ) (12.2 ) Foreign exchange (0.2 ) (0.2 ) Environmental liabilities at end of period $ 82.8 $ 87.1 Environmental liabilities of $24.6 million and $32.1 million were classified as current in other accrued expenses in the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively. The long-term portion of environmental liabilities is recorded in other long-term liabilities in the condensed consolidated balance sheets. Customs and International Trade Laws On April 3, 2019, the Company reached a settlement in a previously disclosed case with the Department of Justice (the “DOJ”) regarding saccharin that allegedly transshipped from the Peoples Republic of China (“China”) through the Republic of China (“Taiwan”) and entered into commerce of the United States between 2007 and 2012. Under the settlement, the Company agreed to pay $62.5 million |
Leasing
Leasing | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leasing | 18. Leasing The Company engages in leasing transactions to meet the needs of the business. The determination to lease, rather than purchase, an asset is primarily contingent upon capital requirements, duration of the forecasted business investment, and asset availability. The Company determines if an arrangement is a lease at inception and all arrangements deemed to be leases are subject to an assessment to determine the classification between finance and operating leases. Operating leases are included in other assets, other accrued expenses, and other long-term liabilities on the condensed consolidated balance sheet for the period ended September 30, 2019 . Finance leases are included in property, plant and equipment, net, current portion of long-term debt, and long-term debt on the condensed consolidated balance sheets. Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term as of the commencement date. The Company’s lease agreements have terms that include both lease and non-lease components. Lease component fees are included in the present value of future minimum lease payments. Conversely, non-lease components are not subject to capitalization and are expensed as incurred. Certain lease agreements include rental payments based on the usage of the equipment or adjustments subject to a change in an index. To the extent the variability in the lease payments is known or subject to a minimum floor, the fees would be included in the present value of the future minimum lease payments. Conversely, variable fees that are not known or subject to a minimum floor are expensed as incurred. The contractual interest rate is used to calculate the present value of the future minimum lease payments. In the event an arrangement excludes a stated interest rate, the Company uses an incremental borrowing rate based on Company and contract specific information available as of the commencement date to determine the present value of future minimum lease payments. The valuation of the ROU asset also includes lease payments made in advance of the lease commencement date and initial direct costs incurred to secure the lease and is reduced for lease incentives. The Company leases certain warehouses and distribution centers, office space, transportation equipment, and other machinery and equipment. Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the condensed consolidated balance sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term. To the extent the Company is reasonably certain to exercise, the lease term related to outstanding leases include renewal or termination options that are at the Company’s sole discretion. Certain leases also include options to purchase the leased property, which are deemed to be finance leases to the extent the Company is reasonably certain to exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term; unless there is either a transfer of title or purchase option the Company is reasonably certain to exercise, which would necessitate the asset or leasehold improvement to be depreciated over the standard property, plant and equipment estimated useful lives. The Company has certain leasing agreements, related to leased vehicles available to our sales personnel, that contain guaranteed residual value terms, which are not expected to be triggered. The Company’s leasing portfolio does not contain any material restrictive covenants. The Company has rental or sublease income that is primarily derived from operating leases with third parties for the usage of idled real estate assets. Leases (in millions) Condensed Consolidated Balance Sheet Classifications September 30, 2019 Assets Operating lease assets Other assets $ 162.9 Finance lease assets Property, plant and equipment, net (1) 63.4 Total lease assets $ 226.3 Liabilities Current liabilities: Current portion of operating lease liabilities Other accrued expenses $ 49.7 Current portion of finance lease liabilities Current portion of long-term debt 19.0 Noncurrent liabilities: Operating lease liabilities Other long-term liabilities 118.1 Finance lease liabilities Long-term debt 45.9 Total lease liabilities $ 232.7 (1) Finance lease right-of-use assets are recorded net of accumulated amortization of $52.0 million as of September 30, 2019 . Lease cost (in millions) Three months ended September 30, 2019 Nine months ended September 30, 2019 Condensed Consolidated Statement of Operations Classification Operating Leases Finance Leases Total Operating Leases Finance Leases Total Cost of goods sold (exclusive of depreciation) $ 3.6 $ — $ 3.6 $ 11.3 $ — $ 11.3 Outbound freight and handling 1.9 — 1.9 5.6 — 5.6 Warehousing, selling and administrative 7.1 — 7.1 21.0 — 21.0 Depreciation — 4.8 4.8 — 14.2 14.2 Interest expense — 0.7 0.7 — 2.0 2.0 Total gross lease component cost $ 12.6 $ 5.5 $ 18.1 $ 37.9 $ 16.2 $ 54.1 Variable lease costs (0.2 ) 0.7 Short-term lease costs 11.3 22.9 Total gross lease costs $ 29.2 $ 77.7 Sublease income 1.3 2.9 Total net lease cost $ 27.9 $ 74.8 Maturity of lease liabilities (in millions) Operating Leases Finance Leases Total 2019 $ 17.3 $ 5.2 $ 22.5 2020 50.4 19.0 69.4 2021 40.2 15.6 55.8 2022 30.8 12.4 43.2 2023 19.7 3.6 23.3 2024 and After 30.7 1.9 32.6 Total lease payments $ 189.1 $ 57.7 $ 246.8 Less: interest 21.6 4.2 Present value of lease liabilities, excluding guaranteed residual values (1) $ 167.5 $ 53.5 Plus: present value of guaranteed residual values (1) 0.3 11.4 Present value of lease liabilities $ 167.8 $ 64.9 (1) The Company is not expected to have cash outflows related to the present value of guaranteed residual values. The Company’s current present value of lease liabilities includes guaranteed residual values related to leases in effect prior to ASC 842 due to the Company’s practical expedient elections denoted within “ Note 2: Significant accounting policies .” The gross value of the guaranteed residual values for operating and finance leases is $0.4 million and $12.5 million as of September 30, 2019 , respectively. Lease term and discount rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 4.9 Finance leases 3.2 Weighted-average discount rate Operating leases 4.97 % Finance leases 4.35 % Other information (in millions) Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 43.3 Operating cash flows from finance leases 2.0 Financing cash flows from finance leases 14.5 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | 19. Related party transactions |
Segments
Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments | 20. Segments Management monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Management evaluates performance on the basis of Adjusted EBITDA. Adjusted EBITDA is defined as consolidated net income (loss), plus the sum of: net income from discontinued operations, interest expense, net of interest income; income tax expense; depreciation; amortization; impairment charges; loss on extinguishment of debt; other operating expenses, net (see “ Note 6: Other operating expenses, net ” for more information); and other (expense) income, net (see “ Note 8: Other (expense) income, net ” for more information). For 2019, Adjusted EBITDA also includes an adjustment to remove the charge of the inventory fair value step-up recorded in connection with the Nexeo purchase price allocation. Transfer prices between operating segments are set on an arms-length basis in a similar manner to transactions with third parties. Corporate operating expenses that directly benefit segments have been allocated to the operating segments. Allocable operating expenses are identified through a review process by management. These costs are allocated to the operating segments on a basis that reasonably approximates the use of services. This is typically measured on a weighted distribution of margin, asset, headcount or time spent. Financial information for the Company’s segments is as follows: (in millions) USA Canada EMEA LATAM Other/ Eliminations (1) Consolidated Three months ended September 30, 2019 External customers $ 1,562.1 $ 283.0 $ 425.0 $ 117.2 $ — $ 2,387.3 Inter-segment 29.5 1.7 0.6 — (31.8 ) — Total net sales $ 1,591.6 $ 284.7 $ 425.6 $ 117.2 $ (31.8 ) $ 2,387.3 Adjusted EBITDA $ 127.6 $ 22.2 $ 31.9 $ 10.2 $ (7.7 ) $ 184.2 Total assets $ 6,215.9 $ 1,580.4 $ 991.9 $ 310.9 $ (2,314.4 ) $ 6,784.7 (in millions) USA Canada EMEA LATAM Other/ Eliminations (1) Consolidated Three months ended September 30, 2018 External customers $ 1,285.3 $ 273.5 $ 472.4 $ 99.5 $ — $ 2,130.7 Inter-segment 28.6 3.0 0.9 0.1 (32.6 ) — Total net sales $ 1,313.9 $ 276.5 $ 473.3 $ 99.6 $ (32.6 ) $ 2,130.7 Adjusted EBITDA $ 99.4 $ 19.2 $ 35.6 $ 9.1 $ (6.3 ) $ 157.0 Total assets $ 3,263.9 $ 1,640.4 $ 994.2 $ 209.6 $ (611.0 ) $ 5,497.1 (in millions) USA Canada EMEA LATAM Other/ (1) Consolidated Nine months ended September 30, 2019 External customers $ 4,474.6 $ 961.6 $ 1,366.6 $ 329.1 $ — $ 7,131.9 Inter-segment 77.8 4.5 2.6 — (84.9 ) — Total net sales $ 4,552.4 $ 966.1 $ 1,369.2 $ 329.1 $ (84.9 ) $ 7,131.9 Adjusted EBITDA $ 352.3 $ 77.7 $ 112.2 $ 25.3 $ (22.1 ) $ 545.4 Total assets $ 6,215.9 $ 1,580.4 $ 991.9 $ 310.9 $ (2,314.4 ) $ 6,784.7 (in millions) USA Canada EMEA LATAM Other/ (1) Consolidated Nine months ended September 30, 2018 External customers $ 3,799.5 $ 1,037.8 $ 1,522.9 $ 301.1 $ — $ 6,661.3 Inter-segment 101.6 7.2 3.5 0.2 (112.5 ) — Total net sales $ 3,901.1 $ 1,045.0 $ 1,526.4 $ 301.3 $ (112.5 ) $ 6,661.3 Adjusted EBITDA $ 287.8 $ 83.3 $ 120.4 $ 26.0 $ (21.1 ) $ 496.4 Total assets $ 3,263.9 $ 1,640.4 $ 994.2 $ 209.6 $ (611.0 ) $ 5,497.1 (1) Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively. The following is a reconciliation of net income (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018 , respectively: Three months ended September 30, Nine months ended September 30, (in millions) 2019 2018 2019 2018 Net income (loss) $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Net income from discontinued operations — — (5.4 ) — Inventory step-up adjustment 5.3 — 5.3 — Other operating expenses, net 30.2 12.4 258.8 37.0 Depreciation 41.6 31.5 114.5 93.8 Amortization 12.1 13.5 45.1 40.7 Impairment charges 7.0 — 7.0 — Interest expense, net 36.8 32.2 108.9 99.1 Loss on extinguishment of debt — — 0.7 — Other expense (income), net 5.5 (2.5 ) 17.2 (3.0 ) Income tax expense 43.2 20.3 38.4 57.7 Adjusted EBITDA $ 184.2 $ 157.0 $ 545.4 $ 496.4 |
Significant accounting polici_2
Significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) as applicable to interim financial reporting. These condensed consolidated financial statements, in the Company’s opinion, include all adjustments consisting of normal recurring accruals necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, comprehensive income, cash flows and changes in stockholders’ equity. The results of operations for the periods presented are not necessarily indicative of the operating results that may be expected for the full year. The accompanying condensed consolidated financial statements of Univar Solutions includes the combined results of all directly and indirectly controlled companies, which have been adjusted to account for the elimination of intercompany balances and transactions. The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ materially from these estimates. These condensed consolidated financial statements and related footnotes are unaudited and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Recently issued and adopted accounting pronouncements and Accounting pronouncements issued but not yet adopted | Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases” (Topic 842), which supersedes the lease recognition requirements in ASC Topic 840, “Leases.” On January 1, 2019, the Company adopted the new Accounting Standards Codification (“ASC”) Topic 842 (“new lease standard”) using the modified retrospective method. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the historical lease classification to carry forward. The Company also made an accounting policy election to not recognize leases with an initial term of 12 months or less on the balance sheet. The Company will recognize short-term lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. The Company recognized the cumulative effect of initially applying the new lease standard as an adjustment to the 2019 opening balance sheet. The cumulative effect of the standard’s adoption also includes adjustments related to previously unrecognized finance leases. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to the January 1, 2019 condensed consolidated balance sheet for the adoption of ASU 2016-02 “Leases” (Topic 842) is as follows: (in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets Property, plant and equipment, net $ 955.8 $ 5.4 $ 961.2 Other assets 84.3 166.8 251.1 Liabilities Current portion of long-term debt $ 21.7 $ (4.5 ) $ 17.2 Other accrued expenses 285.8 43.8 329.6 Long-term debt 2,350.4 9.9 2,360.3 Other long-term liabilities 98.4 123.0 221.4 In February 2018, the FASB issued ASU 2018-02 “Income Statement - Reporting Comprehensive Income” (Topic 220) “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“AOCI”) which gave entities the option to reclassify certain tax effects the FASB refers to as having been stranded, resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. The Company adopted the ASU as of January 1, 2019 and elected to reclassify $3.2 million of the stranded tax effects from accumulated other comprehensive loss to accumulated deficit. The Company also adopted the following standard during 2019, which did not have a material impact to the financial statements or financial statement disclosures: Standard Effective date 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 Accounting pronouncements issued and not yet adopted In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses” (Topic 326) - “Measurement of Credit Losses on Financial Instruments.” The ASU requires entities to use a Current Expected Credit Loss model, which is a new impairment model based on expected losses rather than incurred losses. The model requires entities to recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. Components included in the computation of the estimated contractual cash flows include relevant information about past events, current conditions and reasonable and supportable forecasts, which will result in the recognition of lifetime expected credit losses upon the initial recognition of the related assets. The guidance in this ASU will be included in financial statement and footnote disclosures subsequent to the January 1, 2020 adoption date. The Company is currently determining the impacts that will be reflected in the financial statements and financial statement disclosures subsequent to the ASU adoption date. In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement” (Topic 820) - “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU amends the requirements related to fair value disclosures to include new disclosure requirements and eliminates or modifies certain historic disclosures. The guidance in this ASU will be included in disclosures subsequent to the January 1, 2020 adoption date. The Company is currently determining the impacts that will be reflected in financial statement disclosures subsequent to the ASU adoption date. In August 2018, the FASB issued ASU 2018-14 “Compensation - Retirement Benefits - Defined Benefit Plans - General” (Subtopic 715-20) - “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU amends the requirements related to defined benefit pension and other postretirement plan disclosures to include new disclosure requirements and eliminates or clarifies certain historic disclosures. The guidance in this ASU will be included in disclosures subsequent to the January 1, 2021 adoption date. The Company is currently determining the impacts that will be reflected in financial statement disclosures subsequent to the ASU adoption date. The Company has not yet adopted the following standards, none of which is expected to have a material impact to the financial statements or financial statement disclosures: ASU Expected adoption date 2018-18 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 January 1, 2020 2018-17 Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) January 1, 2020 |
Significant accounting polici_3
Significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effect of the changes made to the January 1, 2019 condensed consolidated balance sheet for the adoption of ASU 2016-02 “Leases” (Topic 842) is as follows: (in millions) Balance at December 31, 2018 Adjustments due to ASU 2016-02 Balance at January 1, 2019 Assets Property, plant and equipment, net $ 955.8 $ 5.4 $ 961.2 Other assets 84.3 166.8 251.1 Liabilities Current portion of long-term debt $ 21.7 $ (4.5 ) $ 17.2 Other accrued expenses 285.8 43.8 329.6 Long-term debt 2,350.4 9.9 2,360.3 Other long-term liabilities 98.4 123.0 221.4 The Company also adopted the following standard during 2019, which did not have a material impact to the financial statements or financial statement disclosures: Standard Effective date 2018-16 Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes January 1, 2019 |
Schedule of Prospective Adoption of New Accounting Pronouncements | The Company has not yet adopted the following standards, none of which is expected to have a material impact to the financial statements or financial statement disclosures: ASU Expected adoption date 2018-18 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 January 1, 2020 2018-17 Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 2018-15 Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) January 1, 2020 |
Business combinations (Tables)
Business combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Preliminary Purchase Price Acquisition | The preliminary purchase price allocation at February 28, 2019 is as follows: (in millions) Trade accounts receivable, net $ 296.3 Inventories 150.2 Prepaid expenses and other current assets 55.6 Assets held for sale 888.2 Property, plant and equipment, net 262.3 Goodwill 617.2 Intangible assets, net 155.7 Other assets 37.4 Trade accounts payable (137.7 ) Other accrued expenses (139.4 ) Liabilities held for sale (221.5 ) Deferred tax liabilities (78.5 ) Other long-term liabilities (71.0 ) Purchase consideration, net of cash $ 1,814.8 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information is as follows: Three months ended September 30, Nine months ended September 30, (in millions) 2019 2018 2019 2018 Net sales $ 2,387.3 $ 2,659.6 $ 7,457.9 $ 8,248.1 Net income (loss) from continuing operations 1.1 70.4 (39.5 ) 227.7 The amounts of net sales and net loss from continuing operations related to the Nexeo chemical distribution business, included in the Company’s condensed consolidated statements of operations from March 1, 2019 to September 30, 2019 are as follows: (in millions) Net sales $ 1,061.1 Net loss from continuing operations (2.4 ) |
Discontinued operations (Tables
Discontinued operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Operating results of discontinued operations | The following table summarizes the operating results of the Company’s discontinued operations related to the sale described above for the nine months ended September 30, 2019 , as presented in “Net income from discontinued operations” on the condensed consolidated statements of operations. (in millions) Nine months ended September 30, 2019 External sales $ 156.9 Cost of goods sold (exclusive of depreciation) 136.7 Outbound freight and handling 3.5 Warehousing, selling and administrative 7.9 Other expenses 1.4 Income from discontinued operations before income taxes $ 7.4 Income tax expense from discontinued operations (1) 2.0 Net income from discontinued operations $ 5.4 (1) The provision for income taxes for the nine months ended September 30, 2019 includes an adjustment to the tax expense related to the one month operations reported as of March 31, 2019. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates external customer net sales by major stream: (in millions) USA Canada EMEA LATAM Consolidated Three months ended September 30, 2019 Chemical Distribution $ 1,477.0 $ 207.3 $ 424.7 $ 114.0 $ 2,223.0 Crop Sciences — 64.3 — — 64.3 Services 85.1 11.4 0.3 3.2 100.0 Total external customer net sales $ 1,562.1 $ 283.0 $ 425.0 $ 117.2 $ 2,387.3 (in millions) USA Canada EMEA LATAM Consolidated Nine months ended September 30, 2019 Chemical Distribution $ 4,240.1 $ 644.1 $ 1,365.6 $ 321.2 $ 6,571.0 Crop Sciences — 281.9 — — 281.9 Services 234.5 35.6 1.0 7.9 279.0 Total external customer net sales $ 4,474.6 $ 961.6 $ 1,366.6 $ 329.1 $ 7,131.9 |
Schedule of Deferred Revenue | The following table provides information pertaining to the deferred revenue balance and account activity: (in millions) Deferred revenue as of January 1, 2019 $ 45.6 Deferred revenue as of September 30, 2019 5.7 Revenue recognized that was included in the deferred revenue balance at the beginning of the period 44.4 |
Other operating expenses, net (
Other operating expenses, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expenses | Other operating expenses, net consisted of the following: Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Acquisition and integration related expenses $ 18.6 $ 5.5 $ 128.3 $ 6.9 Stock-based compensation expense 4.4 4.0 21.7 17.7 Restructuring charges 0.6 2.9 1.2 3.4 Other employee termination costs 4.2 2.7 23.3 9.5 Other facility exit costs (1) 5.6 — 5.6 — Saccharin legal settlement — — 62.5 — Other (3.2 ) (2.7 ) 16.2 (0.5 ) Total other operating expenses, net $ 30.2 $ 12.4 $ 258.8 $ 37.0 (1) Other facility exit costs includes $3.6 million recorded as an estimated withdrawal liability associated with a multiemployer pension plan related to a facility closure. |
Restructuring charges (Tables)
Restructuring charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes activity related to accrued liabilities associated with restructuring: (in millions) January 1, 2019 Charge to earnings Cash paid Non-cash and other September 30, 2019 Employee termination costs $ 4.2 $ 1.1 $ (4.6 ) $ — $ 0.7 Facility exit costs 5.0 0.1 (0.1 ) — 5.0 Other exit costs 0.2 — — — 0.2 Total $ 9.4 $ 1.2 $ (4.7 ) $ — $ 5.9 (in millions) January 1, 2018 Charge to earnings Cash paid Non-cash and other December 31, 2018 Employee termination costs $ 3.0 $ 5.3 $ (3.4 ) $ (0.7 ) $ 4.2 Facility exit costs 10.2 (0.7 ) (4.4 ) (0.1 ) 5.0 Other exit costs (0.5 ) 0.2 (0.1 ) 0.6 0.2 Total $ 12.7 $ 4.8 $ (7.9 ) $ (0.2 ) $ 9.4 |
Other (expense) income, net (Ta
Other (expense) income, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other income (expense), net | Other (expense) income, net consisted of the following gains (losses): Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Foreign currency transactions $ (0.9 ) $ (3.7 ) $ (3.7 ) $ (8.0 ) Foreign currency denominated loans revaluation 16.8 0.8 17.3 (0.6 ) Undesignated foreign currency derivative instruments (1) (20.6 ) 2.7 (26.2 ) 3.6 Undesignated interest rate swap contracts (1) (1.0 ) — (3.8 ) — Non-operating retirement benefits (2) 0.5 3.3 1.7 10.2 Other (0.3 ) (0.6 ) (2.5 ) (2.2 ) Total other (expense) income, net $ (5.5 ) $ 2.5 $ (17.2 ) $ 3.0 (1) Refer to “ Note 16: Derivatives ” for more information. (2) Refer to “ Note 9: Employee benefit plans ” for more information. |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | The following table summarizes the components of net periodic cost (benefit) recognized in the condensed consolidated statements of operations: Domestic - Defined Benefit Pension Plans Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Interest cost (1) $ 6.8 $ 6.8 $ 20.4 $ 20.4 Expected return on plan assets (1) (6.3 ) (7.8 ) (18.9 ) (23.4 ) Net periodic cost (benefit) $ 0.5 $ (1.0 ) $ 1.5 $ (3.0 ) Foreign - Defined Benefit Pension Plans Three months ended Nine months ended (in millions) 2019 2018 2019 2018 Service cost (2) $ 0.6 $ 0.7 $ 1.8 $ 2.1 Interest cost (1) 3.9 3.8 11.7 11.7 Expected return on plan assets (1) (4.9 ) (6.2 ) (15.0 ) (19.1 ) Prior service cost (1) — — 0.1 0.1 Net periodic benefit $ (0.4 ) $ (1.7 ) $ (1.4 ) $ (5.2 ) (1) These amounts are included in other (expense) income, net . (2) Service cost is included in warehouse, selling and administrative expenses. |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Computations of Basic and Diluted Earnings Per Share | The following table presents the basic and diluted earnings per share computations: Three months ended September 30, Nine months ended September 30, (in millions, except per share data) 2019 2018 2019 2018 Basic: Net income (loss) from continuing operations $ 2.5 $ 49.6 $ (50.5 ) $ 171.1 Net income from discontinued operations — — 5.4 — Net income (loss) $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Less: earnings allocated to participating securities — 0.1 — 0.3 Earnings allocated to common shares outstanding $ 2.5 $ 49.5 $ (45.1 ) $ 170.8 Weighted average common shares outstanding 168.6 141.2 162.6 141.1 Basic income (loss) per common share from continuing operations $ 0.01 $ 0.35 $ (0.31 ) $ 1.21 Basic income per common share from discontinued operations — — 0.03 — Basic income (loss) per common share (2) $ 0.01 $ 0.35 $ (0.28 ) $ 1.21 Diluted: Net income (loss) from continuing operations $ 2.5 $ 49.6 $ (50.5 ) $ 171.1 Net income from discontinued operations — — 5.4 — Net income (loss) $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Less: earnings allocated to participating securities — — — — Earnings allocated to common shares outstanding $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Weighted average common shares outstanding 168.6 141.2 162.6 141.1 Effect of dilutive securities: stock compensation plans (1) 0.9 1.1 — 1.0 Weighted average common shares outstanding – diluted 169.5 142.3 162.6 142.1 Diluted income (loss) per common share from continuing operations $ 0.01 $ 0.35 $ (0.31 ) $ 1.20 Diluted income per common share from discontinued operations — — 0.03 — Diluted income (loss) per common share (2) $ 0.01 $ 0.35 $ (0.28 ) $ 1.20 (1) Stock options to purchase 3.1 million and 1.5 million shares of common stock and restricted stock of nil were outstanding during the three months ended September 30, 2019 and 2018 , respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Stock options to purchase 3.0 million and 1.6 million shares of common stock and restricted stock of 0.8 million and nil were outstanding during the nine months ended September 30, 2019 and 2018 , respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Diluted shares outstanding also did not include 7.6 million and 6.0 million shares of common stock issuable on the exercise of warrants because the warrants were out-of-the-money for the three and nine months ended September 30, 2019 . (2) As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters’ earnings per share may not equal the earnings per share for any year-to-date period. |
Accumulated other comprehensi_2
Accumulated other comprehensive loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component Net of Tax | The following tables present the changes in accumulated other comprehensive loss by component, net of tax: (in millions) Cash flow hedges Defined benefit pension items Currency translation items Total Balance as of December 31, 2018 $ 8.9 $ (1.1 ) $ (381.0 ) $ (373.2 ) Impact due to adoption of ASU 2018-02 (1) 1.5 (4.7 ) (3.2 ) Other comprehensive (loss) income before reclassifications (22.1 ) — (12.1 ) (34.2 ) Amounts reclassified from accumulated other comprehensive loss (6.5 ) 0.1 — (6.4 ) Net current period other comprehensive (loss) income $ (27.1 ) $ 0.1 $ (16.8 ) $ (43.8 ) Balance as of September 30, 2019 $ (18.2 ) $ (1.0 ) $ (397.8 ) $ (417.0 ) Balance as of December 31, 2017 $ 6.7 $ (1.2 ) $ (284.0 ) $ (278.5 ) Impact due to adoption of ASU 2017-12 (2) 0.5 — — 0.5 Other comprehensive income (loss) before reclassifications 13.3 — (61.0 ) (47.7 ) Amounts reclassified from accumulated other comprehensive loss $ (4.0 ) $ 0.1 $ — $ (3.9 ) Net current period other comprehensive income (loss) $ 9.8 $ 0.1 $ (61.0 ) $ (51.1 ) Balance as of September 30, 2018 $ 16.5 $ (1.1 ) $ (345.0 ) $ (329.6 ) (1) Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “ Note 2: Significant accounting policies ” for more information. (2) Adjusted due to the adoption of ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018. |
Summary of Amounts Reclassified From Accumulated Other Comprehensive Loss | The following is a summary of the amounts reclassified from accumulated other comprehensive loss to net income (loss): Three months ended September 30, Nine months ended September 30, (in millions) 2019 (1) 2018 (1) 2019 (1) 2018 (1) Location of impact on Amortization of defined benefit pension items: Prior service cost $ — $ — $ 0.1 $ 0.1 Other (expense) income, net Tax expense — — — — Income tax expense Net of tax $ — $ — $ 0.1 $ 0.1 Cash flow hedges: Interest rate swap contracts $ (1.2 ) $ (2.4 ) $ (8.7 ) $ (5.4 ) Interest expense Tax expense 0.3 0.6 2.2 1.4 Income tax expense Net of tax $ (0.9 ) $ (1.8 ) $ (6.5 ) $ (4.0 ) Total reclassifications for the period $ (0.9 ) $ (1.8 ) $ (6.4 ) $ (3.9 ) (1) Amounts in parentheses indicate credits to net income (loss) in the condensed consolidated statement of operations. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Short Term Financing | Short-term financing consisted of the following: (in millions) September 30, 2019 December 31, 2018 Amounts drawn under credit facilities $ 2.1 $ 4.7 Bank overdrafts 0.8 3.4 Total short-term financing $ 2.9 $ 8.1 |
Schedule of Long Term Debt | Long-term debt consisted of the following: (in millions) September 30, 2019 December 31, 2018 Senior Term Loan Facilities: Term B Loan due 2024, variable interest rate of 4.29% and 4.77% at September 30, 2019 and December 31, 2018, respectively $ 1,438.0 $ 1,747.8 Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at September 30, 2019 381.7 — Term B-4 Loan due 2024, variable interest rate of 4.54% at September 30, 2019 245.0 — Asset Backed Loan (ABL) Facilities: North American ABL Facility due 2024, variable interest rate of 3.74% at September 30, 2019 284.3 — Canadian ABL Term Loan due 2022, variable interest rate of 4.20% at September 30, 2019 173.7 — Euro ABL Facility due 2023, variable interest rate of 1.75% at September 30, 2019 and December 31, 2018 38.1 58.5 North American ABL Facility due 2020, variable interest rate of 4.19% at December 31, 2018 (amended February 2019) — 134.7 Senior Unsecured Notes: Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at September 30, 2019 and December 31, 2018 399.5 399.5 Finance lease obligations 64.9 54.8 Total long-term debt before discount $ 3,025.2 $ 2,395.3 Less: unamortized debt issuance costs and discount on debt (29.1 ) (23.2 ) Total long-term debt $ 2,996.1 $ 2,372.1 Less: current maturities (19.0 ) (21.7 ) Total long-term debt, excluding current maturities $ 2,977.1 $ 2,350.4 |
Supplemental balance sheet in_2
Supplemental balance sheet information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net (in millions) September 30, 2019 December 31, 2018 Property, plant and equipment, at cost $ 2,228.7 $ 1,925.9 Less: accumulated depreciation (1,067.6 ) (970.1 ) Property, plant and equipment, net $ 1,161.1 $ 955.8 |
Summary of Cost and Accumulated Depreciation Related to Capital Lease Assets | Finance lease assets, net Included within property, plant and equipment, net are assets related to finance leases where the Company is the lessee. The below table summarizes the cost and accumulated depreciation related to these assets: (in millions) September 30, 2019 December 31, 2018 Finance lease assets, at cost $ 115.4 $ 89.4 Less: accumulated depreciation (52.0 ) (37.4 ) Finance lease assets, net $ 63.4 $ 52.0 Lease cost (in millions) Three months ended September 30, 2019 Nine months ended September 30, 2019 Condensed Consolidated Statement of Operations Classification Operating Leases Finance Leases Total Operating Leases Finance Leases Total Cost of goods sold (exclusive of depreciation) $ 3.6 $ — $ 3.6 $ 11.3 $ — $ 11.3 Outbound freight and handling 1.9 — 1.9 5.6 — 5.6 Warehousing, selling and administrative 7.1 — 7.1 21.0 — 21.0 Depreciation — 4.8 4.8 — 14.2 14.2 Interest expense — 0.7 0.7 — 2.0 2.0 Total gross lease component cost $ 12.6 $ 5.5 $ 18.1 $ 37.9 $ 16.2 $ 54.1 Variable lease costs (0.2 ) 0.7 Short-term lease costs 11.3 22.9 Total gross lease costs $ 29.2 $ 77.7 Sublease income 1.3 2.9 Total net lease cost $ 27.9 $ 74.8 Lease term and discount rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 4.9 Finance leases 3.2 Weighted-average discount rate Operating leases 4.97 % Finance leases 4.35 % Other information (in millions) Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 43.3 Operating cash flows from finance leases 2.0 Financing cash flows from finance leases 14.5 |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets | Intangible assets, net The gross carrying amounts and accumulated amortization of the Company’s intangible assets were as follows: September 30, 2019 December 31, 2018 (in millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets: Customer relationships $ 1,001.9 $ (663.0 ) $ 338.9 $ 846.1 $ (620.3 ) $ 225.8 Other 174.1 (164.8 ) 9.3 175.1 (162.8 ) 12.3 Total intangible assets $ 1,176.0 $ (827.8 ) $ 348.2 $ 1,021.2 $ (783.1 ) $ 238.1 |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s gross assets and liabilities measured on a recurring basis: Level 2 Level 3 (in millions) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Financial current assets: Forward currency contracts $ 0.3 $ 0.3 $ — $ — Interest rate swap contracts — 12.4 — — Financial non-current assets: Interest rate swap contracts — 1.5 — — Financial current liabilities: Forward currency contracts 20.0 0.2 — — Interest rate swap contracts 5.6 — — — Financial non-current liabilities: Interest rate swap contracts 22.7 — — — Warrant liability — — 19.2 — |
Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs (Level 3) | The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consists of the warrant liability related to the Nexeo acquisition. (in millions) Warrant Liability Fair value as of December 31, 2018 $ — Additions 26.0 Fair value adjustments (6.8 ) Fair value as of September 30, 2019 $ 19.2 |
Estimated Fair Value of Financial Instruments Not Carried at Fair Value | The estimated fair value of financial instruments not carried at fair value in the condensed consolidated balance sheets were as follows: September 30, 2019 December 31, 2018 (in millions) Carrying Amount Fair Value Carrying Amount Fair Financial liabilities: Long-term debt including current portion (Level 2) $ 2,996.1 $ 3,043.8 $ 2,372.1 $ 2,314.3 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Total Environmental Liabilities | Changes in total environmental liabilities are as follows: Nine months ended September 30, (in millions) 2019 2018 Environmental liabilities at beginning of period $ 83.5 $ 89.2 Revised obligation estimates 11.8 10.3 Environmental payments (12.3 ) (12.2 ) Foreign exchange (0.2 ) (0.2 ) Environmental liabilities at end of period $ 82.8 $ 87.1 |
Leasing (Tables)
Leasing (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases (in millions) Condensed Consolidated Balance Sheet Classifications September 30, 2019 Assets Operating lease assets Other assets $ 162.9 Finance lease assets Property, plant and equipment, net (1) 63.4 Total lease assets $ 226.3 Liabilities Current liabilities: Current portion of operating lease liabilities Other accrued expenses $ 49.7 Current portion of finance lease liabilities Current portion of long-term debt 19.0 Noncurrent liabilities: Operating lease liabilities Other long-term liabilities 118.1 Finance lease liabilities Long-term debt 45.9 Total lease liabilities $ 232.7 (1) Finance lease right-of-use assets are recorded net of accumulated amortization of $52.0 million as of September 30, 2019 . |
Lease term and discount rate | Finance lease assets, net Included within property, plant and equipment, net are assets related to finance leases where the Company is the lessee. The below table summarizes the cost and accumulated depreciation related to these assets: (in millions) September 30, 2019 December 31, 2018 Finance lease assets, at cost $ 115.4 $ 89.4 Less: accumulated depreciation (52.0 ) (37.4 ) Finance lease assets, net $ 63.4 $ 52.0 Lease cost (in millions) Three months ended September 30, 2019 Nine months ended September 30, 2019 Condensed Consolidated Statement of Operations Classification Operating Leases Finance Leases Total Operating Leases Finance Leases Total Cost of goods sold (exclusive of depreciation) $ 3.6 $ — $ 3.6 $ 11.3 $ — $ 11.3 Outbound freight and handling 1.9 — 1.9 5.6 — 5.6 Warehousing, selling and administrative 7.1 — 7.1 21.0 — 21.0 Depreciation — 4.8 4.8 — 14.2 14.2 Interest expense — 0.7 0.7 — 2.0 2.0 Total gross lease component cost $ 12.6 $ 5.5 $ 18.1 $ 37.9 $ 16.2 $ 54.1 Variable lease costs (0.2 ) 0.7 Short-term lease costs 11.3 22.9 Total gross lease costs $ 29.2 $ 77.7 Sublease income 1.3 2.9 Total net lease cost $ 27.9 $ 74.8 Lease term and discount rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 4.9 Finance leases 3.2 Weighted-average discount rate Operating leases 4.97 % Finance leases 4.35 % Other information (in millions) Nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 43.3 Operating cash flows from finance leases 2.0 Financing cash flows from finance leases 14.5 |
Finance lease maturity schedule | Maturity of lease liabilities (in millions) Operating Leases Finance Leases Total 2019 $ 17.3 $ 5.2 $ 22.5 2020 50.4 19.0 69.4 2021 40.2 15.6 55.8 2022 30.8 12.4 43.2 2023 19.7 3.6 23.3 2024 and After 30.7 1.9 32.6 Total lease payments $ 189.1 $ 57.7 $ 246.8 Less: interest 21.6 4.2 Present value of lease liabilities, excluding guaranteed residual values (1) $ 167.5 $ 53.5 Plus: present value of guaranteed residual values (1) 0.3 11.4 Present value of lease liabilities $ 167.8 $ 64.9 (1) The Company is not expected to have cash outflows related to the present value of guaranteed residual values. The Company’s current present value of lease liabilities includes guaranteed residual values related to leases in effect prior to ASC 842 due to the Company’s practical expedient elections denoted within “ Note 2: Significant accounting policies .” The gross value of the guaranteed residual values for operating and finance leases is $0.4 million and $12.5 million as of September 30, 2019 , respectively. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information for the Company's Segments | Financial information for the Company’s segments is as follows: (in millions) USA Canada EMEA LATAM Other/ Eliminations (1) Consolidated Three months ended September 30, 2019 External customers $ 1,562.1 $ 283.0 $ 425.0 $ 117.2 $ — $ 2,387.3 Inter-segment 29.5 1.7 0.6 — (31.8 ) — Total net sales $ 1,591.6 $ 284.7 $ 425.6 $ 117.2 $ (31.8 ) $ 2,387.3 Adjusted EBITDA $ 127.6 $ 22.2 $ 31.9 $ 10.2 $ (7.7 ) $ 184.2 Total assets $ 6,215.9 $ 1,580.4 $ 991.9 $ 310.9 $ (2,314.4 ) $ 6,784.7 (in millions) USA Canada EMEA LATAM Other/ Eliminations (1) Consolidated Three months ended September 30, 2018 External customers $ 1,285.3 $ 273.5 $ 472.4 $ 99.5 $ — $ 2,130.7 Inter-segment 28.6 3.0 0.9 0.1 (32.6 ) — Total net sales $ 1,313.9 $ 276.5 $ 473.3 $ 99.6 $ (32.6 ) $ 2,130.7 Adjusted EBITDA $ 99.4 $ 19.2 $ 35.6 $ 9.1 $ (6.3 ) $ 157.0 Total assets $ 3,263.9 $ 1,640.4 $ 994.2 $ 209.6 $ (611.0 ) $ 5,497.1 (in millions) USA Canada EMEA LATAM Other/ (1) Consolidated Nine months ended September 30, 2019 External customers $ 4,474.6 $ 961.6 $ 1,366.6 $ 329.1 $ — $ 7,131.9 Inter-segment 77.8 4.5 2.6 — (84.9 ) — Total net sales $ 4,552.4 $ 966.1 $ 1,369.2 $ 329.1 $ (84.9 ) $ 7,131.9 Adjusted EBITDA $ 352.3 $ 77.7 $ 112.2 $ 25.3 $ (22.1 ) $ 545.4 Total assets $ 6,215.9 $ 1,580.4 $ 991.9 $ 310.9 $ (2,314.4 ) $ 6,784.7 (in millions) USA Canada EMEA LATAM Other/ (1) Consolidated Nine months ended September 30, 2018 External customers $ 3,799.5 $ 1,037.8 $ 1,522.9 $ 301.1 $ — $ 6,661.3 Inter-segment 101.6 7.2 3.5 0.2 (112.5 ) — Total net sales $ 3,901.1 $ 1,045.0 $ 1,526.4 $ 301.3 $ (112.5 ) $ 6,661.3 Adjusted EBITDA $ 287.8 $ 83.3 $ 120.4 $ 26.0 $ (21.1 ) $ 496.4 Total assets $ 3,263.9 $ 1,640.4 $ 994.2 $ 209.6 $ (611.0 ) $ 5,497.1 (1) Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively. |
Reconciliation of Net Income (loss) to Adjusted EBITDA | The following is a reconciliation of net income (loss) to Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018 , respectively: Three months ended September 30, Nine months ended September 30, (in millions) 2019 2018 2019 2018 Net income (loss) $ 2.5 $ 49.6 $ (45.1 ) $ 171.1 Net income from discontinued operations — — (5.4 ) — Inventory step-up adjustment 5.3 — 5.3 — Other operating expenses, net 30.2 12.4 258.8 37.0 Depreciation 41.6 31.5 114.5 93.8 Amortization 12.1 13.5 45.1 40.7 Impairment charges 7.0 — 7.0 — Interest expense, net 36.8 32.2 108.9 99.1 Loss on extinguishment of debt — — 0.7 — Other expense (income), net 5.5 (2.5 ) 17.2 (3.0 ) Income tax expense 43.2 20.3 38.4 57.7 Adjusted EBITDA $ 184.2 $ 157.0 $ 545.4 $ 496.4 |
Nature of operations - Addition
Nature of operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 4 |
Significant accounting polici_4
Significant accounting policies - Condensed consolidated balance sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |||||
Assets | |||||||||
Property, plant and equipment, net | $ 1,161.1 | $ 961.2 | $ 955.8 | ||||||
Other assets | 267.6 | [1] | 251.1 | 84.3 | [1] | ||||
Liabilities | |||||||||
Current portion of long-term debt | 19 | 17.2 | 21.7 | ||||||
Other accrued expenses | 349.8 | 329.6 | 285.8 | ||||||
Long-term debt | 2,977.1 | 2,360.3 | 2,350.4 | ||||||
Other long-term liabilities | $ 261.2 | [1] | 221.4 | $ 98.4 | [1] | ||||
Impact due to adoption of ASU, net of tax | [2] | 0 | $ 0.8 | ||||||
Accumulated deficit | |||||||||
Liabilities | |||||||||
Impact due to adoption of ASU, net of tax | 3.2 | [3] | 0.3 | [2] | |||||
AOCI | |||||||||
Liabilities | |||||||||
Impact due to adoption of ASU, net of tax | (3.2) | [3] | $ 0.5 | [2] | |||||
Adjustments due to ASU 2016-02 | |||||||||
Assets | |||||||||
Property, plant and equipment, net | 5.4 | ||||||||
Other assets | 166.8 | ||||||||
Liabilities | |||||||||
Current portion of long-term debt | (4.5) | ||||||||
Other accrued expenses | 43.8 | ||||||||
Long-term debt | 9.9 | ||||||||
Other long-term liabilities | $ 123 | ||||||||
[1] | Operating lease assets and operating lease liabilities are included in other assets and other long-term liabilities. Refer to “ Note 18: Leasing ” for more information. | ||||||||
[2] | Adjusted due to the adoption of ASU 2014-09 “Revenue from Contracts with Customers” and ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018. | ||||||||
[3] | Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “ Note 2: Significant accounting policies ” for more information. |
Business combinations (Detail)
Business combinations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 29, 2019 | Feb. 27, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Cash payment for acquisition | $ 1,201 | $ 20 | |||||
Proceeds from long term debt used to fund acquisition | 1,077.6 | $ 267.7 | |||||
Goodwill acquired | $ 2,409.5 | $ 2,409.5 | $ 1,780.7 | ||||
Nexeo Solutions, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of equity interest acquired | 100.00% | ||||||
Purchase price of acquisition | $ 1,814.8 | ||||||
Cash payment for acquisition | 1,201 | ||||||
Cash acquired from acquisition | 46.8 | ||||||
Value of common stock | $ 613.8 | ||||||
Common stock issued (in shares) | 26.4 | ||||||
Closing price on date of issue (in usd per share) | $ 23.29 | ||||||
Number of Univar shares canceled (in shares) | 1.5 | ||||||
Debt repaid with proceeds of from issuance of debt | 936.3 | ||||||
Adjustment to increase goodwill | $ 65 | ||||||
Goodwill acquired | $ 617.2 | ||||||
Warrants assumed (in shares) | 50 | ||||||
Assumption of warrants acquired (in shares) | 25 | ||||||
Aggregate fair value of unexercised warrants | $ 26 | ||||||
Conversion of warrants to rights to receive merger consideration (in shares) | 7.6 | 7.6 | |||||
Exercise price of warrants (in usd per share) | $ 27.80 | $ 27.80 | |||||
Nexeo Solutions, Inc. | USA | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 600.7 | ||||||
Nexeo Solutions, Inc. | Canada | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 6.2 | ||||||
Nexeo Solutions, Inc. | LATAM | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | 10.3 | ||||||
Nexeo Plastics | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of plastics distribution business | $ 664.3 | ||||||
Incremental Term B-4 loan facility | Nexeo Solutions, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from long term debt used to fund acquisition | 781.5 | ||||||
North American ABL Facility | Nexeo Solutions, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from long term debt used to fund acquisition | 309.3 | ||||||
North American ABL Term Loan | Nexeo Solutions, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from long term debt used to fund acquisition | $ 175 |
Business combinations - Prelimi
Business combinations - Preliminary purchase price allocation (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,409.5 | $ 1,780.7 | |
Nexeo Solutions, Inc. | |||
Business Acquisition [Line Items] | |||
Trade accounts receivable, net | $ 296.3 | ||
Inventories | 150.2 | ||
Prepaid expenses and other current assets | 55.6 | ||
Assets held for sale | 888.2 | ||
Property, plant and equipment, net | 262.3 | ||
Goodwill | 617.2 | ||
Intangible assets, net | 155.7 | ||
Other assets | 37.4 | ||
Trade accounts payable | (137.7) | ||
Other accrued expenses | (139.4) | ||
Liabilities held for sale | (221.5) | ||
Deferred tax liabilities | (78.5) | ||
Other long-term liabilities | (71) | ||
Purchase consideration, net of cash | $ 1,814.8 |
Business combinations - Continu
Business combinations - Continuing net sales and net income (Details) - Nexeo Solutions, Inc. - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | |||||
Net sales | $ 1,061.1 | ||||
Net loss from continuing operations | $ (2.4) | ||||
Business Acquisition, Pro Forma Information [Abstract] | |||||
Net sales | $ 2,387.3 | $ 2,659.6 | $ 7,457.9 | $ 8,248.1 | |
Net income (loss) from continuing operations | $ 1.1 | $ 70.4 | $ (39.5) | $ 227.7 |
Discontinued operations (Detail
Discontinued operations (Details) $ in Millions | Mar. 29, 2019USD ($)Renewal | Sep. 30, 2019USD ($) |
Revenues [Abstract] | ||
External sales | $ 156.9 | |
Operating Costs and Expenses [Abstract] | ||
Cost of goods sold (exclusive of depreciation) | 136.7 | |
Outbound freight and handling | 3.5 | |
Warehousing, selling and administrative | 7.9 | |
Other expenses | 1.4 | |
Income from discontinued operations before income taxes | 7.4 | |
Income tax expense from discontinued operations | 2 | |
Net income from discontinued operations | $ 5.4 | |
Nexeo Plastics | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale of plastics distribution business | $ 664.3 | |
Net of cash disposed | 2.4 | |
Total excess working capital | $ 26.7 | |
Transition services agreement, term of renewals | 12 months | |
Minimum | Nexeo Plastics | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Transition services agreement, contract term | 6 months | |
Maximum | Nexeo Plastics | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Transition services agreement, contract term | 24 months | |
Transition services agreement, number of renewals | Renewal | 2 | |
Real property agreement, contract term | 3 years |
Revenue - Schedule of External
Revenue - Schedule of External Net Sales Disaggregated by Major Stream Type (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,387.3 | $ 2,130.7 | $ 7,131.9 | $ 6,661.3 |
USA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,562.1 | 1,285.3 | 4,474.6 | 3,799.5 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 283 | 273.5 | 961.6 | 1,037.8 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 425 | 472.4 | 1,366.6 | 1,522.9 |
LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 117.2 | $ 99.5 | 329.1 | $ 301.1 |
Chemical Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,223 | 6,571 | ||
Chemical Distribution | USA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,477 | 4,240.1 | ||
Chemical Distribution | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 207.3 | 644.1 | ||
Chemical Distribution | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 424.7 | 1,365.6 | ||
Chemical Distribution | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 114 | 321.2 | ||
Crop Sciences | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64.3 | 281.9 | ||
Crop Sciences | USA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | ||
Crop Sciences | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64.3 | 281.9 | ||
Crop Sciences | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | ||
Crop Sciences | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | ||
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100 | 279 | ||
Services | USA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 85.1 | 234.5 | ||
Services | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11.4 | 35.6 | ||
Services | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0.3 | 1 | ||
Services | LATAM | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3.2 | $ 7.9 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 5.7 | $ 45.6 |
Revenue recognized that was included in the deferred revenue balance at the beginning of the period | $ 44.4 |
Other operating expenses, net_2
Other operating expenses, net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Acquisition and integration related expenses | $ 18.6 | $ 5.5 | $ 128.3 | $ 6.9 |
Stock-based compensation expense | 4.4 | 4 | 21.7 | 17.7 |
Restructuring charges | 0.6 | 2.9 | 1.2 | 3.4 |
Other employee termination costs | 4.2 | 2.7 | 23.3 | 9.5 |
Other facility exit costs | 5.6 | 0 | 5.6 | 0 |
Gain (Loss) Related to Litigation Settlement | 0 | 0 | 62.5 | 0 |
Other | (3.2) | (2.7) | 16.2 | (0.5) |
Total other operating expenses, net | 30.2 | $ 12.4 | 258.8 | $ 37 |
Disposal Group, Including Discontinued Operation, Pension Plan Benefit Obligation | $ 3.6 | $ 3.6 |
Restructuring charges - Additio
Restructuring charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | $ 1.2 | $ 4.8 | |
Restructuring liabilities, current | $ 5.5 | 5.5 | 5.9 |
Restructuring liabilities, non-current | 0.4 | $ 0.4 | 3.5 |
Facility exit costs payment period | 5 years | ||
Employee termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | $ 1.1 | 5.3 | |
Other exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | 0 | 0.2 | |
Facility exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | 0.1 | (0.7) | |
Operating Segments | USA | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | 0.5 | 1.3 | 3.2 |
Operating Segments | Employee termination costs | USA | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | 0.7 | 1.3 | 3.1 |
Operating Segments | Employee termination costs | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | (0.2) | 0.9 | |
Operating Segments | Other exit costs | USA | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | 0.1 | ||
Operating Segments | Facility exit costs | USA | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | (0.1) | 0.1 | |
Other | USA | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected exit costs yet to be incurred | $ 1.3 | $ 1.3 | |
Other | Other exit costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charge to earnings | $ 0.9 |
Restructuring charges - Summary
Restructuring charges - Summary of Activity Related to Accrued Liabilities Associated with Redundancy and Restructuring (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 9.4 | $ 12.7 |
Charge to earnings | 1.2 | 4.8 |
Cash paid | (4.7) | (7.9) |
Non-cash and other | 0 | (0.2) |
Ending balance | 5.9 | 9.4 |
Employee termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 4.2 | 3 |
Charge to earnings | 1.1 | 5.3 |
Cash paid | (4.6) | (3.4) |
Non-cash and other | 0 | (0.7) |
Ending balance | 0.7 | 4.2 |
Facility exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 5 | 10.2 |
Charge to earnings | 0.1 | (0.7) |
Cash paid | (0.1) | (4.4) |
Non-cash and other | 0 | (0.1) |
Ending balance | 5 | 5 |
Other exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0.2 | (0.5) |
Charge to earnings | 0 | 0.2 |
Cash paid | 0 | (0.1) |
Non-cash and other | 0 | 0.6 |
Ending balance | $ 0.2 | $ 0.2 |
Other (expense) income, net (De
Other (expense) income, net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transactions | $ (0.9) | $ (3.7) | $ (3.7) | $ (8) |
Foreign currency denominated loans revaluation | 16.8 | 0.8 | 17.3 | (0.6) |
Undesignated foreign currency derivative instruments | (20.6) | 2.7 | (26.2) | 3.6 |
Undesignated interest rate swap contracts | (1) | 0 | (3.8) | 0 |
Non-operating retirement benefits | 0.5 | 3.3 | 1.7 | 10.2 |
Other | (0.3) | (0.6) | (2.5) | (2.2) |
Total other (expense) income, net | $ (5.5) | $ 2.5 | $ (17.2) | $ 3 |
Employee benefit plans (Detail)
Employee benefit plans (Detail) - Defined Benefit Pension Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
USA | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 6.8 | $ 6.8 | $ 20.4 | $ 20.4 |
Expected return on plan assets | (6.3) | (7.8) | (18.9) | (23.4) |
Net periodic cost (benefit) | 0.5 | (1) | 1.5 | (3) |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.6 | 0.7 | 1.8 | 2.1 |
Interest cost | 3.9 | 3.8 | 11.7 | 11.7 |
Expected return on plan assets | (4.9) | (6.2) | (15) | (19.1) |
Prior service cost | 0 | 0 | 0.1 | 0.1 |
Net periodic cost (benefit) | $ (0.4) | $ (1.7) | $ (1.4) | $ (5.2) |
Income taxes (Detail)
Income taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense from continuing operations | $ 43.2 | $ 20.3 | $ 38.4 | $ 57.7 |
Effective tax rate | 94.50% | 29.00% | (317.40%) | 25.20% |
One time discreet tax benefit | $ 9.1 | $ (4.9) | ||
Estimated effective tax rate | 68.40% | |||
US federal statutory rate | 21.00% | 21.00% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Income (Loss) | ||||
Net income (loss) from continuing operations | $ 2.5 | $ 49.6 | $ (50.5) | $ 171.1 |
Net income from discontinued operations | 0 | 0 | 5.4 | 0 |
Net income (loss) | 2.5 | 49.6 | (45.1) | 171.1 |
Basic: | ||||
Less: earnings allocated to participating securities | 0 | 0.1 | 0 | 0.3 |
Earnings allocated to common shares outstanding | $ 2.5 | $ 49.5 | $ (45.1) | $ 170.8 |
Weighted average common shares outstanding (in shares) | 168.6 | 141.2 | 162.6 | 141.1 |
Basic income (loss) per common share from continuing operations (in dollars per share) | $ 0.01 | $ 0.35 | $ (0.31) | $ 1.21 |
Basic income per common share from discontinued operations (in dollars per share) | 0 | 0 | 0.03 | 0 |
Basic income (loss) per common share (in dollars per share) | $ 0.01 | $ 0.35 | $ (0.28) | $ 1.21 |
Diluted: | ||||
Less: earnings allocated to participating securities | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings allocated to common shares outstanding | $ 2.5 | $ 49.6 | $ (45.1) | $ 171.1 |
Weighted average common shares outstanding (in shares) | 168.6 | 141.2 | 162.6 | 141.1 |
Effect of dilutive securities: stock compensation plans (in shares) | 0.9 | 1.1 | 0 | 1 |
Weighted average common shares outstanding - diluted (in shares) | 169.5 | 142.3 | 162.6 | 142.1 |
Diluted income (loss) per common share from continuing operations (in dollars per share) | $ 0.01 | $ 0.35 | $ (0.31) | $ 1.20 |
Diluted income per common share from discontinued operations (in dollars per share) | 0 | 0 | 0.03 | 0 |
Diluted income (loss) per common share (in dollars per share) | $ 0.01 | $ 0.35 | $ (0.28) | $ 1.20 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Computations of Basic and Diluted Earnings Per Share Footnote (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Shares of stock issuable on the exercise of warrants (in shares) | 7,600,000 | 6,000,000 | ||
Employee Stock Option | Common stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Share-based compensation awards purchased not included in calculation of diluted earnings per share (in shares) | 3,100,000 | 1,500,000 | 3,000,000 | 1,600,000 |
Employee Stock Option | Restricted Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Share-based compensation awards purchased not included in calculation of diluted earnings per share (in shares) | 0 | 0 | 800,000 | 0 |
Accumulated other comprehensi_3
Accumulated other comprehensive loss - Schedule of Changes in Accumulated Other Comprehensive Loss by Component Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning balance | $ 1,774.5 | $ 1,171 | $ 1,191.7 | $ 1,090.1 | |||||
Impact due to adoption of ASU | [1] | $ 0 | $ 0.8 | ||||||
Other comprehensive (loss) income before reclassifications | (34.2) | (47.7) | |||||||
Amounts reclassified from accumulated other comprehensive loss | (6.4) | (3.9) | |||||||
Total other comprehensive (loss) income, net of tax | (36.3) | 1.9 | (43.8) | (51.1) | |||||
Ending balance | 1,745 | 1,230.7 | 1,745 | 1,230.7 | |||||
Cash flow hedges | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning balance | 8.9 | 6.7 | |||||||
Other comprehensive (loss) income before reclassifications | (22.1) | 13.3 | |||||||
Amounts reclassified from accumulated other comprehensive loss | (6.5) | (4) | |||||||
Total other comprehensive (loss) income, net of tax | (27.1) | 9.8 | |||||||
Ending balance | (18.2) | 16.5 | (18.2) | 16.5 | |||||
Defined benefit pension items | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (1.1) | (1.2) | |||||||
Other comprehensive (loss) income before reclassifications | 0 | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0.1 | 0.1 | |||||||
Total other comprehensive (loss) income, net of tax | 0.1 | 0.1 | |||||||
Ending balance | (1) | (1.1) | (1) | (1.1) | |||||
Currency translation items | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (381) | (284) | |||||||
Other comprehensive (loss) income before reclassifications | (12.1) | (61) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||||||
Total other comprehensive (loss) income, net of tax | (16.8) | (61) | |||||||
Ending balance | (397.8) | (345) | (397.8) | (345) | |||||
Accumulated other comprehensive loss | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning balance | (380.7) | (331.5) | (373.2) | (278.5) | |||||
Impact due to adoption of ASU | (3.2) | [2] | 0.5 | [1] | |||||
Ending balance | $ (417) | $ (329.6) | $ (417) | $ (329.6) | |||||
Accounting Standards Update 2018-02 | Cash flow hedges | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | 1.5 | ||||||||
Accounting Standards Update 2018-02 | Defined benefit pension items | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | |||||||||
Accounting Standards Update 2018-02 | Currency translation items | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | (4.7) | ||||||||
Accounting Standards Update 2018-02 | Accumulated other comprehensive loss | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | $ (3.2) | ||||||||
Accounting Standards Update 2017-12 | Cash flow hedges | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | 0.5 | ||||||||
Accounting Standards Update 2017-12 | Defined benefit pension items | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | 0 | ||||||||
Accounting Standards Update 2017-12 | Currency translation items | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | 0 | ||||||||
Accounting Standards Update 2017-12 | Accumulated other comprehensive loss | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Impact due to adoption of ASU | $ 0.5 | ||||||||
[1] | Adjusted due to the adoption of ASU 2014-09 “Revenue from Contracts with Customers” and ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018. | ||||||||
[2] | Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “ Note 2: Significant accounting policies ” for more information. |
Accumulated other comprehensi_4
Accumulated other comprehensive loss - Summary of amounts reclassified from accumulated other comprehensive loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other (expense) income, net | $ (5.5) | $ 2.5 | $ (17.2) | $ 3 |
Interest expense | 37.4 | 32.8 | 111.2 | 101.8 |
Income tax expense (benefit) | (43.2) | (20.3) | (38.4) | (57.7) |
Net of tax | 2.5 | 49.6 | (45.1) | 171.1 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net of tax | (0.9) | (1.8) | (6.4) | (3.9) |
Amortization of defined benefit pension items | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other (expense) income, net | 0 | 0 | 0.1 | 0.1 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net of tax | 0 | 0 | 0.1 | 0.1 |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | (1.2) | (8.7) | ||
Income tax expense (benefit) | 0.3 | 2.2 | ||
Net of tax | $ (0.9) | $ (6.5) | ||
Cash flow hedges, before adoption of ASU | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest expense | (2.4) | (5.4) | ||
Income tax expense (benefit) | 0.6 | 1.4 | ||
Net of tax | $ (1.8) | $ (4) |
Debt - Summary of Short Term Fi
Debt - Summary of Short Term Financing (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Amounts drawn under credit facilities | $ 2.1 | $ 4.7 |
Bank overdrafts | 0.8 | 3.4 |
Total short-term financing | $ 2.9 | $ 8.1 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, $ in Millions | Apr. 03, 2019USD ($) | Apr. 03, 2019EUR (€) | Feb. 28, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Feb. 28, 2019EUR (€) | Feb. 28, 2019CAD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||
Letters of credit outstanding | $ 140,200,000 | $ 140,200,000 | $ 139,400,000 | |||||||
Weighted average interest rate on long-term debt | 4.39% | 4.39% | 4.29% | |||||||
Early repayment of debt | $ 448,800,000 | |||||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 700,000 | $ 0 | ||||||
Cash | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Assets pledged under New Senior ABL Facility | $ 52,700,000 | |||||||||
Trade Accounts Receivable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Assets pledged under New Senior ABL Facility | 1,175,700,000 | |||||||||
Inventories | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Assets pledged under New Senior ABL Facility | 735,500,000 | |||||||||
Prepaid Expenses and Other Current Assets | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Assets pledged under New Senior ABL Facility | 136,000,000 | |||||||||
Property, Plant and Equipment | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Assets pledged under New Senior ABL Facility | $ 975,000,000 | |||||||||
Term B Loan due 2024, variable interest rate of 4.29% and 4.77% at September 30, 2019 and December 31, 2018, respectively | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early repayment of debt | 309,800,000 | |||||||||
Aggregate principal amount | 1,438,000,000 | 1,438,000,000 | $ 1,747,800,000 | |||||||
Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at September 30, 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early repayment of debt | € | € 74.8 | |||||||||
Aggregate principal amount | 381,700,000 | 381,700,000 | € 425 | 0 | ||||||
Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at September 30, 2019 | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 2.75% | |||||||||
Term B-4 Loan due 2024, variable interest rate of 4.54% at September 30, 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early repayment of debt | $ 55,000,000 | |||||||||
Aggregate principal amount | $ 300,000,000 | 245,000,000 | 245,000,000 | 0 | ||||||
Margin step down based on leverage level | 0.25% | |||||||||
Term B-4 Loan due 2024, variable interest rate of 4.54% at September 30, 2019 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 1.75% | |||||||||
Term B-4 Loan due 2024, variable interest rate of 4.54% at September 30, 2019 | Eurocurrency Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 2.75% | |||||||||
Canadian ABL Term Loan due 2022, variable interest rate of 4.20% at September 30, 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 173,700,000 | 173,700,000 | $ 0 | |||||||
New Senior ABL Facility, Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | $ 700,000 | |||||||||
New Senior ABL Facility, Term Loan | Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 1.00% | |||||||||
New Senior ABL Facility, Term Loan | Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 1.25% | |||||||||
New Senior ABL Facility, Term Loan | Prime Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 2.00% | |||||||||
New Senior ABL Facility, Term Loan | Prime Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 2.25% | |||||||||
New Senior ABL Facility | Eurocurrency Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 1.25% | |||||||||
New Senior ABL Facility | Eurocurrency Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 1.50% | |||||||||
New Senior ABL Facility | Prime Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 0.25% | |||||||||
New Senior ABL Facility | Prime Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit rate spread | 0.50% | |||||||||
New Senior ABL Facility | Canadian ABL Term Loan due 2022, variable interest rate of 4.20% at September 30, 2019 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, term | 3 years | |||||||||
Line of credit facility | $ 175,000,000 | |||||||||
New North American ABL Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Quarterly principal payment | 25.00% | |||||||||
Revolving Loan Tranche | New Senior ABL Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, term | 5 years | |||||||||
United States Subsidiaries | Revolving Loan Tranche | New Senior ABL Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility | $ 1,200,000,000 | |||||||||
Canadian Subsidiaries | Revolving Loan Tranche | New Senior ABL Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility | $ 325 |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Detail) € in Millions, $ in Millions | Sep. 30, 2019USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2019EUR (€) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Present value of lease liabilities | $ 64.9 | ||||
Finance lease obligations | $ 54.8 | ||||
Total long-term debt before discount | 3,025.2 | 2,395.3 | |||
Less: unamortized debt issuance costs and discount on debt | (29.1) | (23.2) | |||
Total long-term debt | 2,996.1 | 2,372.1 | |||
Less: current maturities | (19) | $ (17.2) | (21.7) | ||
Total long-term debt, excluding current maturities | 2,977.1 | $ 2,360.3 | 2,350.4 | ||
Term B Loan due 2024, variable interest rate of 4.29% and 4.77% at September 30, 2019 and December 31, 2018, respectively | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 1,438 | $ 1,747.8 | |||
Variable interest rate | 4.29% | 4.77% | |||
Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at September 30, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 381.7 | € 425 | $ 0 | ||
Variable interest rate | 2.75% | ||||
Term B-4 Loan due 2024, variable interest rate of 4.54% at September 30, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 245 | $ 300 | 0 | ||
Variable interest rate | 4.54% | ||||
North American ABL Facility due 2024, variable interest rate of 3.74% at September 30, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 284.3 | 0 | |||
Variable interest rate | 3.74% | ||||
Canadian ABL Term Loan due 2022, variable interest rate of 4.20% at September 30, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 173.7 | 0 | |||
Variable interest rate | 4.20% | ||||
Euro ABL Facility due 2023, variable interest rate of 1.75% at September 30, 2019 and December 31, 2018 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 38.1 | $ 58.5 | |||
Variable interest rate | 1.75% | 1.75% | |||
North American ABL Facility due 2020, variable interest rate of 4.19% at December 31, 2018 (amended February 2019) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 0 | $ 134.7 | |||
Variable interest rate | 4.19% | ||||
Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at September 30, 2019 and December 31, 2018 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt excluding capital lease obligation | $ 399.5 | $ 399.5 | |||
Fixed interest rate | 6.75% | 6.75% |
Supplemental balance sheet in_3
Supplemental balance sheet information - Summary of Property, Plant and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Property, plant and equipment, at cost | $ 2,228.7 | $ 1,925.9 | |
Less: accumulated depreciation | (1,067.6) | (970.1) | |
Property, plant and equipment, net | $ 1,161.1 | $ 961.2 | $ 955.8 |
Supplemental balance sheet in_4
Supplemental balance sheet information - Summary of Cost and Accumulated Depreciation Related to Capital Lease Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finance lease assets, at cost | $ 115.4 | |
Financing lease assets, at cost, before adoption of ASU 2016-02 | $ 89.4 | |
Less: accumulated depreciation | (52) | |
Less: accumulated depreciation, before adoption of ASU 2016-02 | (37.4) | |
Finance lease assets, net | $ 63.4 | |
Financing lease assets, net, before adoption of ASU 2016-02 | $ 52 |
Supplemental balance sheet in_5
Supplemental balance sheet information - Schedule of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,176 | $ 1,021.2 |
Accumulated Amortization | (827.8) | (783.1) |
Net | 348.2 | 238.1 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 1,001.9 | 846.1 |
Accumulated Amortization | (663) | (620.3) |
Net | 338.9 | 225.8 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 174.1 | 175.1 |
Accumulated Amortization | (164.8) | (162.8) |
Net | $ 9.3 | $ 12.3 |
Supplemental balance sheet in_6
Supplemental balance sheet information Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Impairment charges | $ 7 | $ 7 | $ 0 |
Fair value measurements - Sched
Fair value measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Level 2 | Forward currency contracts | Financial current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0.3 | $ 0.3 |
Level 2 | Forward currency contracts | Financial current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 20 | 0.2 |
Level 2 | Interest rate swap contracts | Financial current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 12.4 |
Level 2 | Interest rate swap contracts | Financial non-current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 1.5 |
Level 2 | Interest rate swap contracts | Financial current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 5.6 | 0 |
Level 2 | Interest rate swap contracts | Financial non-current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 22.7 | 0 |
Level 2 | Warrant liability | Financial non-current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Forward currency contracts | Financial current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Forward currency contracts | Financial current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Interest rate swap contracts | Financial current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Interest rate swap contracts | Financial non-current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Interest rate swap contracts | Financial current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Interest rate swap contracts | Financial non-current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Level 3 | Warrant liability | Financial non-current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 19.2 | $ 0 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Measurement Input, Expected Term | Warrant liability | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Expected option life | 2 years | |
Measurement Input, Price Volatility | Warrant liability | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Expected volatility rate | 0.2607 | |
Measurement Input, Risk Free Interest Rate | Warrant liability | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Expected volatility rate | 0.0163 | |
Prepaid Expenses and Other Current Assets | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Forward currency contract asset fair value | $ 0.3 | $ 0.3 |
Other accrued expenses | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Forward currency contract liability fair value | $ 20 | $ 0.2 |
Fair value measurements - Recon
Fair value measurements - Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs (Level 3) (Detail) - Warrant Liability $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair value beginning balance | $ 0 |
Additions | 26 |
Fair value adjustments | (6.8) |
Fair value ending balance | $ 19.2 |
Fair value measurements - Estim
Fair value measurements - Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt including current portion, carrying amount | $ 2,996.1 | $ 2,372.1 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt including current portion, carrying amount | 2,996.1 | 2,372.1 |
Long-term debt including current portion, fair value | $ 3,043.8 | $ 2,314.3 |
Derivatives (Detail)
Derivatives (Detail) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 28, 2019EUR (€) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Other accrued expenses | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Liabilities | $ 5,600,000 | $ 5,600,000 | $ 0 | |||
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Financial current assets | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Assets | 0 | 0 | 12,400,000 | |||
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Financial non-current liabilities | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Liabilities | 22,700,000 | 22,700,000 | 0 | |||
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Financial non-current assets | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Assets | 0 | $ 0 | 1,500,000 | |||
Undesignated Forward Currency Contracts | Minimum | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative instruments term | 1 month | |||||
Undesignated Forward Currency Contracts | Maximum | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative instruments term | 3 months | |||||
Interest rate swap contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Net unrealized gain (loss) reclassified to earnings | 1,200,000 | $ 8,700,000 | ||||
Estimated losses included in AOCI to be reclassified with the next 12 months | 4,600,000 | 4,600,000 | ||||
Interest rate swap contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount | $ 300,000,000 | $ 500,000,000 | $ 1,000,000,000 | |||
Fixed interest rate (weighted average) | 2.73% | 1.70% | ||||
Interest rate swap contracts | Undesignated Forward Currency Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount | $ 200,000,000 | |||||
Interest rate swap contracts | Undesignated Forward Currency Contracts | Cash Flow Hedging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fixed interest rate (weighted average) | 2.27% | |||||
Forward currency contracts | Undesignated Forward Currency Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount | 894,200,000 | 894,200,000 | € 350,000,000 | $ 108,100,000 | ||
Term B Loan Due 2022 | Interest rate swap contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount | $ 1,800,000,000 | $ 1,800,000,000 | $ 2,000,000,000 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Detail) shares in Millions, $ in Millions | Jun. 26, 2019USD ($)shares | Sep. 30, 2019USD ($)claimshares | Sep. 30, 2019USD ($)siteclaimlocation | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | ||||
Number of locations impacted by environmental laws and regulations | location | 130 | |||
Number of company owned/occupied sites requiring environmental remediation work | site | 108 | |||
Number of non owned sites liable for a share of clean-up | site | 22 | |||
Accrued environmental loss contingencies, current | $ 24.6 | $ 24.6 | $ 32.1 | |
Payments for legal settlements | $ 62.5 | |||
Maximum | ||||
Other Commitments [Line Items] | ||||
Number of asbestos-related claims (fewer than) | claim | 77 | 77 | ||
Nexeo Solutions, Inc. | ||||
Other Commitments [Line Items] | ||||
Number of Univar shares canceled (in shares) | shares | 1.5 | |||
BCIM Strategic Value Master Fund, LP | Nexeo Solutions, Inc. | ||||
Other Commitments [Line Items] | ||||
Number of shares of Nexeo Solutions, Inc. common stock | shares | 5 | |||
Amount paid to BCIM | $ 63.5 | |||
Amount received from exchange agent | 15.1 | |||
Value of Univar shares canceled | $ 35.5 |
Commitments and contingencies_2
Commitments and contingencies - Changes in Total Environmental Liabilities (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Environmental liabilities at beginning of period | $ 83.5 | $ 89.2 |
Revised obligation estimates | 11.8 | 10.3 |
Environmental payments | (12.3) | (12.2) |
Foreign exchange | (0.2) | (0.2) |
Environmental liabilities at end of period | $ 82.8 | $ 87.1 |
Leasing - Assets and liabilitie
Leasing - Assets and liabilities, lessee (Details) $ in Millions | Sep. 30, 2019USD ($) |
Assets | |
Operating lease assets | $ 162.9 |
Finance lease assets | 63.4 |
Total lease assets | 226.3 |
Current liabilities: | |
Current portion of operating lease liabilities | 49.7 |
Current portion of finance lease liabilities | 19 |
Liabilities, Noncurrent [Abstract] | |
Operating lease liabilities | 118.1 |
Finance lease liabilities | 45.9 |
Total lease liabilities | 232.7 |
Finance lease right-of-use assets accumulated amortization | $ 52 |
Leasing - Lease cost in income
Leasing - Lease cost in income statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating Leases | $ 12.6 | $ 37.9 |
Finance Leases | 5.5 | 16.2 |
Total | 18.1 | 54.1 |
Depreciation | 4.8 | 14.2 |
Interest expense | 0.7 | 2 |
Variable lease costs | (0.2) | 0.7 |
Short-term lease costs | 11.3 | 22.9 |
Total gross lease costs | 29.2 | 77.7 |
Sublease income | 1.3 | 2.9 |
Total net lease cost | 27.9 | 74.8 |
Cost of goods sold (exclusive of depreciation) | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases | 3.6 | 11.3 |
Finance Leases | 0 | 0 |
Total | 3.6 | 11.3 |
Outbound freight and handling | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases | 1.9 | 5.6 |
Finance Leases | 0 | 0 |
Total | 1.9 | 5.6 |
Warehousing, selling and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Operating Leases | 7.1 | 21 |
Finance Leases | 0 | 0 |
Total | $ 7.1 | $ 21 |
Leasing - Maturity of lease obl
Leasing - Maturity of lease obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 17.3 |
2020 | 50.4 |
2021 | 40.2 |
2022 | 30.8 |
2023 | 19.7 |
2024 and After | 30.7 |
Total lease payments | 189.1 |
Less: Interest | 21.6 |
Present value of lease liabilities, excluding guaranteed residual values | 167.5 |
Plus: Present value of guaranteed residual values | 0.3 |
Present value of lease liabilities | 167.8 |
Gross value of guaranteed residual value | 0.4 |
Finance Leases | |
2019 | 5.2 |
2020 | 19 |
2021 | 15.6 |
2022 | 12.4 |
2023 | 3.6 |
2024 and After | 1.9 |
Total lease payments | 57.7 |
Less: Interest | 4.2 |
Present value of lease liabilities, excluding guaranteed residual values | 53.5 |
Plus: Present value of guaranteed residual values | 11.4 |
Present value of lease liabilities | 64.9 |
Gross value of guaranteed residual value | 12.5 |
Total | |
2019 | 22.5 |
2020 | 69.4 |
2021 | 55.8 |
2022 | 43.2 |
2023 | 23.3 |
2024 and After | 32.6 |
Total lease payments | $ 246.8 |
Leasing - Lease term and disco
Leasing - Lease term and discount rate (Details) | Sep. 30, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 4 years 10 months 24 days |
Finance leases | 3 years 2 months 12 days |
Weighted-average discount rate | |
Operating leases | 4.97% |
Finance leases | 4.35% |
Leasing - Other information (De
Leasing - Other information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 43.3 |
Operating cash flows from finance leases | 2 |
Financing cash flows from finance leases | $ 14.5 |
Segments (Detail)
Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 2,387.3 | $ 2,130.7 | $ 7,131.9 | $ 6,661.3 | |
Adjusted EBITDA | 184.2 | 157 | 545.4 | 496.4 | |
Total assets | 6,784.7 | 5,497.1 | 6,784.7 | 5,497.1 | $ 5,272.4 |
USA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,562.1 | 1,285.3 | 4,474.6 | 3,799.5 | |
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 283 | 273.5 | 961.6 | 1,037.8 | |
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 425 | 472.4 | 1,366.6 | 1,522.9 | |
LATAM | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 117.2 | 99.5 | 329.1 | 301.1 | |
Inter-segment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (31.8) | (32.6) | (84.9) | (112.5) | |
Inter-segment | USA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (29.5) | (28.6) | (77.8) | (101.6) | |
Inter-segment | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (1.7) | (3) | (4.5) | (7.2) | |
Inter-segment | EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (0.6) | (0.9) | (2.6) | (3.5) | |
Inter-segment | LATAM | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | (0.1) | 0 | (0.2) | |
Operating Segments | USA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,591.6 | 1,313.9 | 4,552.4 | 3,901.1 | |
Adjusted EBITDA | 127.6 | 99.4 | 352.3 | 287.8 | |
Total assets | 6,215.9 | 3,263.9 | 6,215.9 | 3,263.9 | |
Operating Segments | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 284.7 | 276.5 | 966.1 | 1,045 | |
Adjusted EBITDA | 22.2 | 19.2 | 77.7 | 83.3 | |
Total assets | 1,580.4 | 1,640.4 | 1,580.4 | 1,640.4 | |
Operating Segments | EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 425.6 | 473.3 | 1,369.2 | 1,526.4 | |
Adjusted EBITDA | 31.9 | 35.6 | 112.2 | 120.4 | |
Total assets | 991.9 | 994.2 | 991.9 | 994.2 | |
Operating Segments | LATAM | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 117.2 | 99.6 | 329.1 | 301.3 | |
Adjusted EBITDA | 10.2 | 9.1 | 25.3 | 26 | |
Total assets | 310.9 | 209.6 | 310.9 | 209.6 | |
Other/ Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | (7.7) | (6.3) | (22.1) | (21.1) | |
Total assets | $ (2,314.4) | $ (611) | $ (2,314.4) | $ (611) |
Segments Segment income stateme
Segments Segment income statement information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Net income (loss) | $ 2.5 | $ 49.6 | $ (45.1) | $ 171.1 |
Net income from discontinued operations | 0 | 0 | (5.4) | 0 |
Inventory step-up adjustment | 5.3 | 0 | 5.3 | 0 |
Other operating expenses, net | 30.2 | 12.4 | 258.8 | 37 |
Depreciation | 41.6 | 31.5 | 114.5 | 93.8 |
Amortization | 12.1 | 13.5 | 45.1 | 40.7 |
Impairment charges | 7 | 0 | 7 | 0 |
Interest expense, net | 36.8 | 32.2 | 108.9 | 99.1 |
Loss on extinguishment of debt | 0 | 0 | 0.7 | 0 |
Other expense (income), net | 5.5 | (2.5) | 17.2 | (3) |
Income tax expense | 43.2 | 20.3 | 38.4 | 57.7 |
Adjusted EBITDA | $ 184.2 | $ 157 | $ 545.4 | $ 496.4 |