Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Trinseo S.A. | |
Entity Central Index Key | 1,519,061 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,772,953 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 399,928 | $ 465,114 |
Accounts receivable, net of allowance for doubtful accounts (June 30, 2017 -- $3,670; December 31, 2016 -- $3,138) | 723,264 | 564,428 |
Inventories | 473,936 | 385,345 |
Other current assets | 14,366 | 17,999 |
Total current assets | 1,611,494 | 1,432,886 |
Investments in unconsolidated affiliates | 153,077 | 191,418 |
Property, plant and equipment, net of accumulated depreciation (June 30, 2017 -- $479,983; December 31, 2016 -- $420,343) | 556,481 | 513,757 |
Other assets | ||
Goodwill | 31,990 | 29,485 |
Other intangible assets, net | 178,270 | 177,345 |
Deferred income tax assets-noncurrent | 37,095 | 40,187 |
Deferred charges and other assets | 32,847 | 24,412 |
Total other assets | 280,202 | 271,429 |
Total assets | 2,601,254 | 2,409,490 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 5,000 | 5,000 |
Accounts payable | 394,033 | 378,029 |
Income taxes payable | 34,066 | 23,784 |
Accrued expenses and other current liabilities | 127,322 | 135,357 |
Total current liabilities | 560,421 | 542,170 |
Noncurrent liabilities | ||
Long-term debt, net of unamortized deferred financing fees | 1,192,844 | 1,160,369 |
Deferred income tax liabilities - noncurrent | 30,325 | 24,844 |
Other noncurrent obligations | 257,391 | 237,054 |
Total noncurrent liabilities | 1,480,560 | 1,422,267 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity | ||
Ordinary shares, $0.01 nominal value, 50,000,000 shares authorized (June 30, 2017: 48,778 shares issued and 43,733 shares outstanding; December 31, 2016, 48,778 shares issued and 44,301 shares outstanding) | 488 | 488 |
Additional paid-in-capital | 575,011 | 573,662 |
Treasury shares, at cost (June 30, 2017: 5,045 shares; December 31, 2016: 4,477 shares) | (258,913) | (217,483) |
Retained earnings | 406,270 | 258,540 |
Accumulated other comprehensive loss | (162,583) | (170,154) |
Total shareholders' equity | 560,273 | 445,053 |
Total liabilities and shareholders' equity | $ 2,601,254 | $ 2,409,490 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets | ||
Allowance for doubtful accounts | $ 3,670 | $ 3,138 |
Accumulated depreciation | $ 479,983 | $ 420,343 |
Ordinary shares, nominal value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 50,000,000,000 | 50,000,000,000 |
Ordinary shares, shares issued | 48,778,000 | 48,778,000 |
Ordinary shares, shares outstanding | 43,733,000 | 44,301,000 |
Treasury stock, shares | 5,045,000 | 4,477,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Operations | ||||
Net sales | $ 1,145,199 | $ 969,694 | $ 2,249,689 | $ 1,863,778 |
Cost of sales | 1,019,992 | 799,954 | 1,926,680 | 1,554,366 |
Gross profit | 125,207 | 169,740 | 323,009 | 309,412 |
Selling, general and administrative expenses | 55,384 | 52,249 | 115,820 | 106,735 |
Equity in earnings of unconsolidated affiliates | 29,927 | 38,602 | 49,222 | 73,628 |
Operating income | 99,750 | 156,093 | 256,411 | 276,305 |
Interest expense, net | 18,719 | 18,814 | 36,919 | 37,710 |
Other expense (income), net | 2,072 | 12,875 | (6,061) | 15,544 |
Income before income taxes | 78,959 | 124,404 | 225,553 | 223,051 |
Provision for income taxes | 18,800 | 28,600 | 48,100 | 50,500 |
Net income (loss) | $ 60,159 | $ 95,804 | $ 177,453 | $ 172,551 |
Weighted average shares- basic | 43,902 | 46,952 | 43,979 | 47,803 |
Net income per share- basic | $ 1.37 | $ 2.04 | $ 4.03 | $ 3.61 |
Weighted average shares- diluted | 44,995 | 47,857 | 45,165 | 48,554 |
Net income per share- diluted | $ 1.34 | $ 2 | $ 3.93 | $ 3.55 |
Dividends per share | $ 0.36 | $ 0.30 | $ 0.66 | $ 0.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income | $ 60,159 | $ 95,804 | $ 177,453 | $ 172,551 |
Other comprehensive income (loss), net of tax (tax amounts shown in millions below for the three and six months ended June 30, 2017 and 2016, respectively): | ||||
Cumulative translation adjustments | 18,974 | (11,005) | 23,175 | 2,418 |
Net gain (loss) on foreign exchange cash flow hedges | (12,966) | 6,029 | (17,776) | (1,396) |
Pension and other postretirement benefit plans: | ||||
Net loss arising during period (net of tax of: 2017 -- $0 and $0; 2016 -- $0 and ($0.5)) | (800) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 796 | 539 | 2,172 | 1,079 |
Total other comprehensive income, net of tax | 6,804 | (4,437) | 7,571 | 1,301 |
Comprehensive income | $ 66,963 | $ 91,367 | $ 185,024 | $ 173,852 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net loss arising during period, tax (benefit) expense | $ 0 | $ 0 | $ 0 | $ (0.5) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Ordinary Shares | Additional Paid-In Capital [Member] | Treasury Shares | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit). | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of new accounting standard | $ 915 | $ (915) | ||||
Balance at Dec. 31, 2015 | $ 488 | 556,532 | $ (149,717) | (18,289) | $ 389,014 | |
Balance, shares at Dec. 31, 2015 | 48,778 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 172,551 | 172,551 | ||||
Other comprehensive income | 1,301 | 1,301 | ||||
Stock-based compensation | 8,143 | $ 686 | 8,829 | |||
Stock-based compensation, shares from treasury stock | 16 | (16) | ||||
Purchase of treasury shares | $ (94,362) | (94,362) | ||||
Purchase of treasury shares, shares | (2,391) | 2,391 | ||||
Dividends on ordinary shares | (13,920) | (13,920) | ||||
Balance at Jun. 30, 2016 | $ 488 | 565,590 | $ (93,676) | (148,416) | 139,427 | 463,413 |
Balance, shares at Jun. 30, 2016 | 46,403 | 2,375 | ||||
Balance at Mar. 31, 2016 | (143,979) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 95,804 | |||||
Other comprehensive income | (4,437) | |||||
Balance at Jun. 30, 2016 | $ 488 | 565,590 | $ (93,676) | (148,416) | 139,427 | 463,413 |
Balance, shares at Jun. 30, 2016 | 46,403 | 2,375 | ||||
Balance at Dec. 31, 2016 | $ 488 | 573,662 | $ (217,483) | (170,154) | 258,540 | $ 445,053 |
Balance, shares at Dec. 31, 2016 | 44,301 | 4,477 | 44,301 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 177,453 | $ 177,453 | ||||
Other comprehensive income | 7,571 | 7,571 | ||||
Stock-based compensation | 1,349 | $ 11,624 | 12,973 | |||
Stock-based compensation, shares from treasury stock | 327 | (327) | ||||
Purchase of treasury shares | $ (53,054) | (53,054) | ||||
Purchase of treasury shares, shares | (895) | 895 | ||||
Dividends on ordinary shares | (29,723) | (29,723) | ||||
Balance at Jun. 30, 2017 | $ 488 | 575,011 | $ (258,913) | (162,583) | 406,270 | $ 560,273 |
Balance, shares at Jun. 30, 2017 | 43,733 | 5,045 | 43,733 | |||
Balance at Mar. 31, 2017 | (169,387) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 60,159 | |||||
Other comprehensive income | 6,804 | |||||
Balance at Jun. 30, 2017 | $ 488 | $ 575,011 | $ (258,913) | $ (162,583) | $ 406,270 | $ 560,273 |
Balance, shares at Jun. 30, 2017 | 43,733 | 5,045 | 43,733 |
Consolidate Statements of Share
Consolidate Statements of Shareholders' Equity (Parenthetical)) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statement of Stockholders' Equity | ||||
Dividends per share | $ 0.36 | $ 0.30 | $ 0.66 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 177,453 | $ 172,551 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 51,044 | 47,973 |
Amortization of deferred financing fees and issuance discount | 2,719 | 3,134 |
Deferred income tax | 8,862 | 10,684 |
Stock-based compensation expense | 7,687 | 8,816 |
Earnings of unconsolidated affiliates, net of dividends | 4,709 | (12,287) |
Unrealized net losses on foreign exchange forward contracts | 5,011 | 3,965 |
Loss (gain) on sale of businesses and other assets | (10,275) | 12,915 |
Changes in assets and liabilities | ||
Accounts receivable | (137,696) | (52,954) |
Inventories | (66,802) | (16,685) |
Accounts payable and other current liabilities | (9,779) | (1,098) |
Income taxes payable | 9,089 | (1,005) |
Other assets, net | (6,215) | (7,060) |
Other liabilities, net | 781 | 10,758 |
Cash provided by (used in) operating activities | 36,588 | 179,707 |
Cash flows from investing activities | ||
Capital expenditures | (74,286) | (53,153) |
Proceeds from the sale of businesses and other assets | 43,680 | 129 |
Distributions from unconsolidated affiliates | 857 | 4,809 |
Cash provided by (used in) investing activities | (29,749) | (48,215) |
Cash flows from financing activities | ||
Short term borrowings, net | (126) | (126) |
Repayments of term loans | (2,500) | (2,500) |
Purchase of treasury shares | (56,415) | (94,362) |
Dividends paid | (26,473) | |
Proceeds from exercise of option awards | 5,984 | 87 |
Withholding taxes paid on restricted share units | (288) | (74) |
Cash used in financing activities | (79,818) | (96,975) |
Effect of exchange rates on cash | 7,793 | (565) |
Net change in cash and cash equivalents | (65,186) | 33,952 |
Cash and cash equivalents-beginning of period | 465,114 | 431,261 |
Cash and cash equivalents-end of period | $ 399,928 | $ 465,213 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation. | |
Basis of Presentation | NOTE 1—BASIS OF PRESENTATION The unaudited interim condensed consolidated financial statements of Trinseo S.A. and its subsidiaries (the “Company”) as of and for the periods ended June 30, 2017 and 2016 were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect all adjustments, consisting only of normal recurring adjustments, which, in the opinion of management, are considered necessary for the fair statement of the results for the periods presented. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures normally provided in annual financial statements and, therefore, these statements should be read in conjunction with the 2016 audited consolidated financial statements included within the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (“SEC”) on March 1, 2017. The December 31, 2016 condensed consolidated balance sheet data presented herein was derived from the Company’s December 31, 2016 audited consolidated financial statements, but does not include all disclosures required by GAAP for annual periods. Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications did not have a material impact on the Company’s financial position or results. Refer to Note 12 for further information. |
Recent Accounting Guidance
Recent Accounting Guidance | 6 Months Ended |
Jun. 30, 2017 | |
Recent Accounting Guidance | |
Recent Accounting Guidance | NOTE 2—RECENT ACCOUNTING GUIDANCE In May 2014, the Financial Accounting Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) jointly issued guidance which clarifies the principles for recognizing revenue and develops a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the FASB has issued certain clarifying updates to this guidance, which the Company will consider as part of our adoption, which will be effective as of January 1, 2018. The Company has completed its scoping assessment for the adoption of this guidance by conducting surveys with relevant stakeholders in the business, including commercial and finance leadership, reviewing a representative sample of revenue arrangements across all businesses, and identifying a set of applicable qualitative revenue recognition changes related to the new standard update. In completing this phase, the Company has concluded that it will adopt this new guidance applying the modified retrospective approach. The Company remains in the process of establishing and documenting key accounting policies, assessing new disclosure requirements, and evaluating impacts on business process, information technology, and controls, and determining the quantitative impact resulting from the adoption of this new standard. In July 2015, the FASB issued guidance which simplifies the subsequent measurement of inventory by replacing the lower of cost or market test with a lower of cost or net realizable value (“NRV”) test. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal and transportation. The Company adopted this guidance effective January 1, 2017, and the adoption did not have a material impact to the Company’s financial position or results of operations. In February 2016, the FASB issued guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize on the consolidated balance sheets lease liabilities and corresponding right-of-use assets for all leases with terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. This new guidance is effective for public companies for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance must be adopted using a modified retrospective transition, and provides for certain practical expedients. The Company is in the process of assessing the impact on its consolidated financial statements from the adoption of the new guidance. However, as we are the lessee under various real estate, railcar, and other equipment leases, which we currently account for as operating leases, we anticipate an increase in the recognition of right-of-use assets and lease liabilities as a result of this adoption . In August 2016, the FASB issued guidance that aims to eliminate diversity in practice for how certain cash receipts and payments are presented and classified in the consolidated statements of cash flows. This guidance is effective for public companies for annual and interim periods beginning after December 15, 2017, with early adoption permitted. This guidance must be adopted using a retrospective approach, and provides for certain practical expedients. Additionally, the FASB has issued further guidance related to the presentation of restricted cash on the consolidated statements of cash flows. While the Company continues to assess the timing and related impact of adopting this guidance on its consolidated statement of cash flows, the most significant expected impact on the Company’s financial statements will be the requirement to classify debt prepayment or extinguishment costs as financing cash outflows, as opposed to the Company’s prior classification of these types of costs within operating activities. In January 2017, the FASB issued guidance that revises the definition of a business in order to assist in determining whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the new guidance, fewer transactions are expected to be accounted for as business combinations. The Company adopted this guidance effective January 1, 2017. We expect this adoption could affect conclusions reached for future transactions in several areas, including acquisitions and disposals. In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment by removing Step 2 of the test, which requires a hypothetical purchase price allocation. As a result, a goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The Company adopted this guidance effective January 1, 2017, which did not have a material impact to the Company’s financial position or results of operations. In March 2017, the FASB issued guidance that requires employers to present the service cost component of net periodic benefit cost in the same statement of operations line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost are to be presented outside of any subtotal of operating income. This presentation amendment is relevant to the Company and will be applied on a retrospective basis. This guidance is effective for fiscal years and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently assessing the impact of adopting this guidance on its results of operations. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2017 | |
Investments in Unconsolidated Affiliates | |
Investments in Unconsolidated Affiliates | NOTE 3—INVESTMENTS IN UNCONSOLIDATED AFFILIATES During the six months ended June 30, 2017, the Company had two joint ventures : Americas Styrenics LLC (“Americas Styrenics”, a styrene and polystyrene joint venture with Chevron Phillips Chemical Company LP) and Sumika Styron Polycarbonate Limited (“Sumika Styron Polycarbonate”, a polycarbonate joint venture with Sumitomo Chemical Company Limited). Investments held in the unconsolidated affiliates are accounted for by the equity method. The results of Americas Styrenics are included within its own reporting segment, and the results of Sumika Styron Polycarbonate were included within the Basic Plastics reporting segment until the Company sold its 50% share of the entity in January 2017. Refer to the discussion below for further information about the sale of the Company’s share in Sumika Styron Polycarbonate during the first quarter of 2017. Both of the unconsolidated affiliates are privately held companies; therefore, quoted market prices for their stock are not available. The summarized financial information of the Company’s unconsolidated affiliates is shown below. This table includes summarized financial information for Sumika Styron Polycarbonate through the date of sale in January 2017. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Sales $ 476,882 $ 405,351 $ 910,828 $ 781,603 Gross profit $ 65,170 $ 87,867 $ 85,758 $ 156,271 Net income $ 54,121 $ 71,015 $ 60,449 $ 123,812 Americas Styrenics As of June 30, 2017 and December 31, 2016, respectively, the Company’s investment in Americas Styrenics was $153.1 million and $149.7 million, which was $52.3 million and $71.2 million less than the Company’s 50% share of the underlying net assets of Americas Styrenics . This amount represents the difference between the book value of assets contributed to the joint venture at the time of formation (May 1, 2008) and the Company’s 50% share of the total recorded value of the joint venture’s assets and certain adjustments to conform with the Company’s accounting policies. This difference is being amortized over a weighted average remaining useful life of the contributed assets of approximately 3.3 years as of June 30, 2017. The Company received dividends from Americas Styrenics of $37.5 million and $45.0 million during the three and six months ended June 30, 2017, respectively, compared to $30.0 million and $60.0 million during the three and six months ended June 30, 2016, respectively. Sumika Styron Polycarbonate On January 31, 2017, the Company completed the sale of its 50% share in Sumika Styron Polycarbonate to Sumitomo Chemical Company Limited for total sales proceeds of approximately $42.1 million. As a result, the Company recorded a gain on sale of $9.3 million during the six months ended June 30, 2017, which was included within “Other expense (income), net” in the condensed consolidated statement of operations and was allocated entirely to the Basic Plastics segment. In addition, the parties have entered into a long-term agreement to continue sourcing polycarbonate resin from Sumika Styron Polycarbonate to the Company’s Performance Plastics segment. As of December 31, 2016, the Company’s investment in Sumika Styron Polycarbonate was $41.8 million. Due to the sale in January 2017, the Company no longer has an investment in Sumika Styron Polycarbonate as of June 30, 2017. The Company received dividends from Sumika Styron Polycarbonate of zero and $9.8 million during the three and six months ended June 30, 2017, respectively, compared to zero and $6.2 million during the three and six months ended June 30, 2016, respectively. The dividend received during the six months ended June 30, 2017 from Sumika Styron Polycarbonate related to the Company’s proportionate share of earnings for the year ended December 31, 2016. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventories | |
Inventories | NOTE 4—INVENTORIES Inventories consisted of the following: June 30, December 31, 2017 2016 Finished goods $ 242,824 $ 187,577 Raw materials and semi-finished goods 199,324 168,804 Supplies 31,788 28,964 Total $ 473,936 $ 385,345 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt | |
Debt | NOTE 5—DEBT Refer to the Annual Report for definitions of capitalized terms not included herein and further background on the Company’s debt structure discussed below. The Company was in compliance with all debt related covenants as of June 30, 2017 and December 31, 2016. As of June 30, 2017 and December 31, 2016, debt consisted of the following: June 30, 2017 December 31, 2016 Interest Rate as of June 30, 2017 Maturity Carrying Unamortized (1) Total Debt, Carrying Unamortized (1) Total Debt, Senior Credit Facility 2020 Revolving Facility (2) Various May 2020 $ — $ — $ — $ — $ — $ — 2021 Term Loan B (3) 4.476% November 2021 489,136 (8,292) 480,844 491,545 (9,159) 482,386 2022 Senior Notes USD Notes 6.750% May 2022 300,000 (5,277) 294,723 300,000 (5,726) 294,274 Euro Notes 6.375% May 2022 427,301 (6,590) 420,711 394,275 (7,157) 387,118 Accounts Receivable Securitization Facility (4) Various May 2019 — — — — — — Other indebtedness Various Various 1,566 — 1,566 1,591 — 1,591 Total debt $ 1,218,003 $ (20,159) $ 1,197,844 $ 1,187,411 $ (22,042) $ 1,165,369 Less: current portion (5,000) (5,000) Total long-term debt, net of unamortized deferred financing fees $ 1,192,844 $ 1,160,369 (1) This caption does not include deferred financing fees related to the Company’s revolving facilities, which are included within “Deferred charges and other assets” on the condensed consolidated balance sheets. (2) The Company had $308.1 million (net of $16.9 million outstanding letters of credit) of funds available for borrowing under this facility as of June 30, 2017. Additionally, the Borrowers were required to pay a quarterly commitment fee in respect of any unused commitments under this facility equal to 0.375% per annum. (3) Carrying amounts presented above are net of an original issue discount, which was 0.25% of the original $500.0 million facility. This facility bears an interest rate of LIBOR plus 3.25%, subject to a 1.00% LIBOR floor. As of June 30, 2017, $5.0 million of the scheduled future payments related to this facility were classified as current debt on the Company’s condensed consolidated balance sheet. (4) This facility has a borrowing capacity of $200.0 million. As of June 30, 2017, the Company had approximately $151.3 million of accounts receivable available to support this facility, based on the pool of eligible accounts receivable. In regards to outstanding borrowings, fixed interest charges are 2.6% plus variable commercial paper rates, while for available, but undrawn commitments, fixed interest charges are 1.4%. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | NOTE 6—DERIVATIVE INSTRUMENTS The Company’s ongoing business operations expose it to various risks, including fluctuating foreign exchange rates. To manage these risks, the Company periodically enters into derivative financial instruments such as foreign exchange forward contracts. The Company does not hold or enter into financial instruments for trading or speculative purposes. All derivatives are recorded on the condensed consolidated balance sheets at fair value. Foreign Exchange Forward Contracts Certain subsidiaries have assets and liabilities denominated in currencies other than their respective functional currencies, which creates foreign exchange risk. The Company’s principal strategy in managing its exposure to changes in foreign currency exchange rates is to naturally hedge the foreign currency-denominated liabilities on our balance sheet against corresponding assets of the same currency such that any changes in liabilities due to fluctuations in exchange rates are offset by changes in their corresponding foreign currency assets. In order to further reduce its exposure, the Company also uses foreign exchange forward contracts to economically hedge the impact of the variability in exchange rates on our assets and liabilities denominated in certain foreign currencies. These derivative contracts are not designated for hedge accounting treatment. As of June 30, 2017, the Company had open foreign exchange forward contracts with a notional U.S. dollar equivalent absolute value of $302.1 million. The following table displays the notional amounts of the most significant net foreign exchange hedge positions outstanding as of June 30, 2017. June 30, Buy / (Sell) 2017 Euro $ (146,217) Chinese Yuan $ (74,647) Indonesian Rupiah $ (33,617) Swiss Franc $ 18,686 Japanese Yen $ (7,706) Foreign Exchange Cash Flow Hedges The Company also enters into forward contracts with the objective of managing the currency risk associated with forecasted U.S. dollar-denominated raw materials purchases by one of its subsidiaries whose functional currency is the euro. By entering into these forward contracts, which are designated as cash flow hedges, the Company buys a designated amount of U.S. dollars and sells euros at the prevailing market rate to mitigate the risk associated with the fluctuations in the euro-to-U.S. dollar foreign currency exchange rates. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income/loss (“AOCI”) to the extent effective, and reclassified to cost of sales in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur. Open foreign exchange cash flow hedges as of June 30, 2017 have maturities occurring over a period of 18 months, and have a net notional U.S. dollar equivalent of $255.0 million. Net Investment Hedge The Company’s outstanding debt includes €375.0 million of Euro Notes (refer to Note 5 for details) . As of June 30, 2017, the Company has designated a portion ( €280 million) of the principal amount of these Euro Notes as a hedge of the foreign currency exposure of the Issuers’ net investment in certain European subsidiaries. As this debt was deemed to be a highly effective hedge, changes in the Euro Notes’ carrying value resulting from fluctuations in the euro exchange rate were recorded as cumulative foreign currency translation loss of $10.2 million within AOCI as of June 30, 2017. Summary of Derivative Instruments Information regarding changes in the fair value of the Company’s derivative instruments, net of tax, including those not designated for hedge accounting treatment, is as follows: Gain (Loss) Recognized in Gain (Loss) Recognized in AOCI on Balance Sheet Statement of Operations Three Months Ended June 30, Statement of Operations 2017 2016 2017 2016 Classification Designated as Cash Flow Hedges Foreign exchange cash flow hedges $ (12,966) $ 6,029 $ 1,009 $ (735) Cost of sales Total $ (12,966) $ 6,029 $ 1,009 $ (735) Net Investment Hedges Euro Notes $ (19,670) $ 3,798 $ — $ — Other expense (income), net Total $ (19,670) $ 3,798 $ — $ — Not Designated as Cash Flow Hedges Foreign exchange forward contracts $ — $ — $ (8,835) $ (2,138) Other expense (income), net Total $ — $ — $ (8,835) $ (2,138) Gain (Loss) Recognized in Gain (Loss) Recognized in AOCI on Balance Sheet Statement of Operations Six Months Ended June 30, Statement of Operations 2017 2016 2017 2016 Classification Designated as Cash Flow Hedges Foreign exchange cash flow hedges $ (17,776) $ (1,396) $ 3,460 $ 370 Cost of sales Total $ (17,776) $ (1,396) $ 3,460 $ 370 Net Investment Hedges Euro Notes $ (24,660) $ (2,487) $ — $ — Other expense (income), net Total $ (24,660) $ (2,487) $ — $ — Not Designated as Cash Flow Hedges Foreign exchange forward contracts $ — $ — $ (10,510) $ 995 Other expense (income), net Total $ — $ — $ (10,510) $ 995 The Company recorded losses of $8.8 million and $10.5 million during the three and six months ended June 30, 2017, respectively, and losses of $2.1 million and gains of $1.0 million during the three and six months ended June 30, 2016, respectively, from settlements and changes in the fair value of outstanding forward contracts (not designated as hedges) . The gains and losses from these forward contracts offset net foreign exchange transaction gains of $7.3 million and $7.9 million during the three and six months ended June 30, 2017, respectively, and gains of $2.3 million and losses of $2.6 million during the three and six months ended June 30, 2016, respectively, which resulted from the remeasurement of the Company’s foreign currency denominated assets and liabilities. The cash settlements of these foreign exchange forward contracts are included within operating activities in the condensed consolidated statement of cash flows. As of June 30, 2017, the Company has no ineffectiveness related to its foreign exchange cash flow hedges. Further, the Company expects to reclassify in the next twelve months an approximate $4.7 million net loss from AOCI into earnings related to the Company’s outstanding cash flow hedges as of June 30, 2017 based on current foreign exchange rates. The following table summarizes the net unrealized gains and losses and balance sheet classification of outstanding derivatives recorded in the condensed consolidated balance sheets: June 30, 2017 December 31, 2016 Foreign Foreign Foreign Foreign Forward Cash Flow Forward Cash Flow Balance Sheet Classification Contracts Hedges Total Contracts Hedges Total Asset Derivatives: Accounts receivable, net of allowance $ 514 $ — $ 514 $ 1,664 $ 11,018 $ 12,682 Deferred charges and other assets — — — — — — Total asset derivatives $ 514 $ — $ 514 $ 1,664 $ 11,018 $ 12,682 Liability Derivatives: Accounts payable $ 4,830 $ 4,745 $ 9,575 $ 511 $ — $ 511 Other noncurrent obligations — 2,069 2,069 — — — Total liability derivatives $ 4,830 $ 6,814 $ 11,644 $ 511 $ — $ 511 Forward contracts are entered into with a limited number of counterparties, each of which allows for net settlement of all contracts through a single payment in a single currency in the event of a default on or termination of any one contract. As such, in accordance with the Company’s accounting policy, we record these foreign exchange forward contracts on a net basis by counterparty within the condensed consolidated balance sheet. Information regarding the gross amounts of the Company’s derivative instruments and the amounts offset in the condensed consolidated balance sheets is as follows: Gross Amounts Gross Amounts Net Amounts Recognized in the Offset in the Presented in the Balance Sheet Balance Sheet Balance Sheet Balance at June 30, 2017 Derivative assets $ 1,289 $ (775) $ 514 Derivative liabilities 12,419 (775) 11,644 Balance at December 31, 2016 Derivative assets $ 23,401 $ (10,719) $ 12,682 Derivative liabilities 11,230 (10,719) 511 Refer to Notes 7 and 14 of the condensed consolidated financial statements for further information regarding the fair value of the Company’s derivative instruments and the related changes in AOCI . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 7—FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date. Level 1—Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The following table summarizes the basis used to measure certain assets and liabilities at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016. June 30, 2017 Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Assets (Liabilities) at Fair Value (Level 1) (Level 2) (Level 3) Total Foreign exchange forward contracts—Assets $ — $ 514 $ — $ 514 Foreign exchange forward contracts—(Liabilities) — (4,830) — (4,830) Foreign exchange cash flow hedges—(Liabilities) — (6,814) — (6,814) Total fair value $ — $ (11,130) $ — $ (11,130) December 31, 2016 Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Assets (Liabilities) at Fair Value (Level 1) (Level 2) (Level 3) Total Foreign exchange forward contracts—Assets $ — $ 1,664 $ — $ 1,664 Foreign exchange forward contracts—(Liabilities) — (511) — (511) Foreign exchange cash flow hedges—Assets — 11,018 — 11,018 Total fair value $ — $ 12,171 $ — $ 12,171 The Company uses an income approach to value its derivative instruments, utilizing discounted cash flow techniques, considering the terms of the contract and observable market information available as of the reporting date. Significant inputs to the valuation for foreign exchange forward contracts and foreign exchange cash flow hedges are obtained from broker quotations or from listed or over-the-counter market data, and are classified as Level 2 in the fair value hierarchy. Fair Value of Debt Instruments The following table presents the estimated fair value of the Company’s outstanding debt not carried at fair value as of June 30, 2017 and December 31, 2016, respectively: As of As of June 30, 2017 December 31, 2016 2022 Senior Notes USD Notes $ 318,750 $ 315,000 Euro Notes 456,187 424,437 2021 Term Loan B 494,596 498,041 Total fair value $ 1,269,533 $ 1,237,478 The fair value of the Company’s Term Loan B, USD Notes, and Euro Notes (each Level 2 securities) is determined using over-the-counter market quotes and benchmark yields received from independent vendors. There were no other significant financial instruments outstanding as of June 30, 2017 and December 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | NOTE 8—COMMITMENTS AND CONTINGENCIES Environmental Matters Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law, existing technologies and other information. Pursuant to the terms of the agreement associated with the Company’s formation, the pre-closing environmental conditions were retained by Dow and Dow has agreed to indemnify the Company from and against all environmental liabilities incurred or relating to the predecessor periods. No environmental claims have been asserted or threatened against the Company, and the Company is not a potentially responsible party at any Superfund Sites. As of June 30, 2017 and December 31, 2016, the Company had no accrued obligations for environmental remediation and restoration costs. Inherent uncertainties exist in the Company’s potential environmental liabilities primarily due to unknown conditions, whether future claims may fall outside the scope of the indemnity, changing governmental regulations and legal standards regarding liability, and evolving technologies for handling site remediation and restoration. In connection with the Company’s existing indemnification, the possibility is considered remote that environmental remediation costs will have a material adverse impact on the condensed consolidated financial statements. Purchase Commitments In the normal course of business, the Company has certain raw material purchase contracts where it is required to purchase certain minimum volumes at current market prices. These commitments range from 1 to 5 years. In certain raw material purchase contracts, the Company has the right to purchase less than the required minimums and pay a liquidated damages fee, or, in case of a permanent plant shutdown, to terminate the contracts. In such cases, these obligations would be less than the annual commitment as disclosed in the consolidated financial statements included in the Annual Report. Litigation Matters From time to time, the Company may be subject to various legal claims and proceedings incidental to the normal conduct of business, relating to such matters as product liability, antitrust/competition, past waste disposal practices and release of chemicals into the environment. While it is impossible at this time to determine with certainty the ultimate outcome of these routine claims, the Company does not believe that the ultimate resolution of these claims will have a material adverse effect on the Company’s results of operations, financial condition or cash flow. Legal costs, including those legal costs expected to be incurred in connection with a loss contingency, are expensed as incurred. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Pension Plans and Other Postretirement Benefits | |
Pension Plans and Other Postretirement Benefits | NOTE 9—PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS The components of net periodic benefit costs for all significant plans were as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Defined Benefit Pension Plans Service cost $ 4,707 $ 4,211 $ 9,291 $ 8,282 Interest cost 1,111 1,408 2,192 2,768 Expected return on plan assets (423) (499) (835) (982) Amortization of prior service credit (482) (493) (953) (971) Amortization of net loss 1,395 1,073 2,753 2,111 Net settlement and curtailment loss (1) — — 129 — Net periodic benefit cost $ 6,308 $ 5,700 $ 12,577 $ 11,208 (1) Represents a settlement loss of approximately $0.5 million triggered by benefit payments exceeding the sum of service and interest cost for one of the Company’s pension plans in Switzerland, partially offset by a curtailment gain of approximately $0.4 million related to a reduction in the number of participants in the Company’s pension plan in Japan. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Other Postretirement Plans Service cost $ 54 $ 65 $ 108 $ 128 Interest cost 63 129 126 250 Amortization of prior service cost 25 26 51 52 Amortization of net gain (10) (43) (21) (86) Net periodic benefit cost $ 132 $ 177 $ 264 $ 344 As of June 30, 2017 and December 31, 2016, the Company’s benefit obligations included primarily in “Other noncurrent obligations” in the condensed consolidated balance sheets were $211.7 million and $195.8 million, respectively. The net periodic benefit costs are recognized in the condensed consolidated statement of operations as “Cost of sales” and “Selling, general and administrative expenses.” The Company made cash contributions and benefit payments to unfunded plans of approximately $5.0 million and $10.2 million during the three and six months ended June 30, 2017, respectively. The Company expects to make additional cash contributions, including benefit payments to unfunded plans, of approximately $5.5 million to its defined benefit plans for the remainder of 2017. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation | |
Stock-Based Compensation | NOTE 10—STOCK-BASED COMPENSATION Refer to the Annual Report for definitions of capitalized terms not included herein and further background on the Company’s stock-based compensation programs included in the tables below. The following table summarizes the Company’s stock-based compensation expense for the three and six months ended June 30, 2017 and 2016 as well as unrecognized compensation cost as of June 30, 2017: As of Three Months Ended Six Months Ended June 30, 2017 June 30, June 30, Unrecognized Weighted 2017 2016 2017 2016 Compensation Cost Average Years RSUs $ 2,135 $ 1,355 $ 4,008 $ 2,349 $ 12,854 2.0 Options 502 763 3,207 4,135 2,094 1.5 PSUs 321 — 472 — 3,386 2.6 Restricted Stock Awards issued by Former Parent — 1,104 — 2,332 — — Total Stock-based Compensation Expense $ 2,958 $ 3,222 $ 7,687 $ 8,816 The following table summarizes awards granted and the respective weighted-average grant date fair value for the six months ended June 30, 2017: Six Months Ended June 30, 2017 Awards Granted Weighted Average Grant Date Fair Value per Award RSUs 110,117 $ 70.87 Options 191,565 20.61 PSUs 50,937 75.74 Option Awards The following are the weighted-average assumptions used within the Black-Scholes pricing model for the Company’s option awards granted during the six months ended June 30, 2017: Six Months Ended June 30, 2017 Expected term (in years) 5.50 Expected volatility 35.00 % Risk-free interest rate 2.19 % Dividend yield 2.00 % Since the Company’s equity interests were privately held prior to its initial public offering (“IPO”) in June 2014, there is limited publicly available trading history of the Company’s ordinary shares. Until such time that the Company can determine expected volatility based solely on the publicly traded history of its ordinary shares, expected volatility used in the Black-Scholes model for option awards granted is based on a combination of the Company’s historical volatility and similar companies’ stock that are publicly traded. The expected term of option awards represents the period of time that option awards granted are expected to be outstanding. For the option awards granted during the six months ended June 30, 2017, the simplified method was used to calculate the expected term, given the Company’s limited historical exercise data. The risk-free interest rate for the periods within the expected term of option awards is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is estimated based on historical and expected dividend activity. Performance Share Units (PSUs) The Company granted PSUs for the first time during the six months ended June 30, 2017. The PSUs, which are granted to executives, cliff vest on the third anniversary of the date of grant, generally subject to the executive remaining continuously employed by the Company through the vesting date and achieving certain performance conditions. The number of the PSUs that vest upon completion of the service period can range from 0 to 200 percent of the original grant, subject to certain limitations, contingent upon the Company’s total shareholder return (“TSR”) during the performance period relative to a pre-defined set of industry peer companies. Upon a termination of employment due to the executive’s death or retirement, or termination in connection with a change in control or other factors prior to the vesting date, the PSUs will vest in full or in part, depending on the type of termination and the achievement of the performance conditions. Dividend equivalents will accumulate on PSUs during the vesting period, will be paid in cash upon vesting, and do not accrue interest. When PSUs vest, shares will be issued from the existing pool of treasury shares. The fair value for PSU awards is computed using a Monte Carlo valuation model. |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2017 | |
Divestitures | |
Divestitures | NOTE 11—DIVESTITURES During the second quarter of 2016, the Company signed a definitive agreement to sell Trinseo do Brasil Comercio de Produtos Quimicos Ltda. (“Trinseo Brazil”), its primary operating entity in Brazil, including both a latex binders and automotive business. The sale closed on October 1, 2016. As a result of this agreement, during the three and six months ended June 30, 2016, the Company recorded impairment charges for the estimated loss on sale of approximately $12.9 million within “Other expense (income), net” in the condensed consolidated statement of operations. These charges, which are subject to certain post-closing settlement activities, were allocated as $8.6 million, $4.0 million, and $0.3 million to the Performance Plastics segment, Latex Binders segment, and Corporate, respectively. During the year ended December 31, 2016, the Company received $1.8 million in proceeds from the sale of these businesses, with an additional $1.5 million received during the six months ended June 30, 2017. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segments | |
Segments | NOTE 12—SEGMENTS Effective October 1, 2016, the Company realigned its reporting segments to reflect the new model under which the business is now managed and results are reviewed by the chief executive officer, who is the Company’s chief operating decision maker. This change in segments was made to provide increased clarity and understanding around the indicators of profitability and cash flow of the Company. The previous Basic Plastics & Feedstocks segment was split into three new segments: Basic Plastics, which includes polystyrene, copolymers, and polycarbonate; Feedstocks, which represents the Company’s styrene monomer business; and Americas Styrenics, which reflects the equity earnings from its 50%-owned styrenics joint venture. In addition, certain highly differentiated acrylonitrile-butadiene-styrene, or ABS, supplied into Performance Plastics markets, which was previously included in the results of Basic Plastics & Feedstocks, is now included in Performance Plastics. Finally, the Latex segment was renamed to Latex Binders. In conjunction with the segment realignment, the Company also changed its primary measure of segment operating performance from EBITDA to Adjusted EBITDA. Refer to the discussion below for further information about Adjusted EBITDA. The information in the tables below has been retroactively adjusted to reflect the changes in reporting segments and segment operating performance. The Latex Binders segment produces styrene-butadiene latex, or SB latex, and other latex polymers and binders, primarily for coated paper and packaging board, carpet and artificial turf backings, as well as a number of performance latex binders applications, such as adhesive, building and construction and the technical textile paper market. The Synthetic Rubber segment produces synthetic rubber products used predominantly in high-performance tires, impact modifiers and technical rubber products, such as conveyer belts, hoses, seals and gaskets. The Performance Plastics segment produces highly engineered compounds and blends and some specialized ABS grades for automotive end markets, as well as consumer electronics, medical, electrical and lighting, collectively consumer essential markets, or CEM. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile, or SAN, products, as well as polycarbonate, or PC, all of which are used as inputs in a variety of end use markets. The Basic Plastics segment also included the results of our previously 50%-owned joint venture, Sumika Styron Polycarbonate, until the Company sold its share in the entity in January 2017 (refer to Note 3 for further information). The Feedstocks segment includes the Company’s production and procurement of styrene monomer outside of North America, which is used as a key raw material in many of the Company’s products, including polystyrene, SB latex, ABS resins, solution styrene-butadiene rubber, or SSBR, etc. Lastly, the Americas Styrenics segment consists solely of the operations of our 50%-owned joint venture, Americas Styrenics, a producer of both styrene monomer and polystyrene in North America. Asset, capital expenditure, and intersegment sales information is not reviewed or included with the Company’s reporting to the chief operating decision maker. Therefore, the Company has not disclosed this information for each reportable segment. Performance Materials Basic Plastics & Feedstocks Latex Synthetic Performance Basic Americas Corporate Three Months Ended Binders Rubber Plastics Plastics Feedstocks Styrenics Unallocated Total June 30, 2017 Sales to external customers $ 291,530 $ 174,009 $ 190,173 $ 382,460 $ 107,027 $ — $ — $ 1,145,199 Equity in earnings of unconsolidated affiliates — — — — — 29,927 — 29,927 Adjusted EBITDA (1) 36,070 27,689 23,489 31,768 (1,151) 29,927 Investment in unconsolidated affiliates — — — — — 153,077 — 153,077 Depreciation and amortization 5,761 8,688 2,466 4,130 3,092 — 2,187 26,324 June 30, 2016 Sales to external customers $ 232,471 $ 111,391 $ 183,891 $ 363,325 $ 78,616 $ — $ — $ 969,694 Equity in earnings of unconsolidated affiliates — — — 926 — 37,676 — 38,602 Adjusted EBITDA (1) 21,461 30,216 38,472 43,150 32,548 37,676 Investment in unconsolidated affiliates — — — 35,842 — 154,472 — 190,314 Depreciation and amortization 5,881 8,892 1,589 3,941 2,760 — 1,790 24,853 Performance Materials Basic Plastics & Feedstocks Latex Synthetic Performance Basic Americas Corporate Six Months Ended Binders Rubber Plastics Plastics Feedstocks Styrenics Unallocated Total June 30, 2017 Sales to external customers $ 580,461 $ 337,371 $ 374,724 $ 763,210 $ 193,923 $ — $ — $ 2,249,689 Equity in earnings (losses) of unconsolidated affiliates — — — 810 — 48,412 — 49,222 Adjusted EBITDA (1) 72,885 73,959 50,364 70,629 40,745 48,412 Investment in unconsolidated affiliates — — — — — 153,077 — 153,077 Depreciation and amortization 11,424 17,067 4,844 7,820 5,568 — 4,321 51,044 June 30, 2016 Sales to external customers $ 441,952 $ 213,588 $ 352,520 $ 705,954 $ 149,764 $ — $ — $ 1,863,778 Equity in earnings (losses) of unconsolidated affiliates — — — 3,019 — 70,609 — 73,628 Adjusted EBITDA (1) 40,228 53,295 73,558 80,917 53,358 70,609 Investment in unconsolidated affiliates — — — 35,842 — 154,472 — 190,314 Depreciation and amortization 12,161 16,935 3,133 7,525 5,626 — 2,593 47,973 (1) The reconciliation of income before income taxes to Segment Adjusted EBITDA is as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Income before income taxes $ 78,959 $ 124,404 $ 225,553 $ 223,051 Interest expense, net 18,719 18,814 36,919 37,710 Depreciation and amortization 26,324 24,853 51,044 47,973 Corporate Unallocated (2) 21,559 21,153 49,024 46,370 Adjusted EBITDA Addbacks (3) 2,231 14,299 (5,546) 16,861 Segment Adjusted EBITDA $ 147,792 $ 203,523 $ 356,994 $ 371,965 (2) (3) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Net (gain) loss on disposition of businesses and assets (Notes 3 and 11) $ — $ 12.9 $ (9.9) $ 12.9 Restructuring and other charges (Note 13) 1.1 1.1 3.3 1.8 Acquisition transaction and integration costs (a) 1.1 — 1.1 — Other items (b) — 0.3 — 2.2 Total Adjusted EBITDA Addbacks $ 2.2 $ 14.3 $ (5.5) $ 16.9 (a) Acquisition transaction and integration costs for the three and six months ended June 30, 2017 relate to advisory and professional fees incurred in conjunction with the Company’s acquisition of API Applicazioni Plastiche Industriali S.p.A (“API Plastics”), which closed on July 10, 2017. Refer to Note 16 for further information. (b) Other items for the three and six months ended June 30, 2016 relate to fees incurred in conjunction with the Company’s secondary offerings completed during these periods. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring | |
Restructuring | NOTE 13—RESTRUCTURING Refer to the Annual Report for details regarding the Company’s previously announced restructuring activities included in the tables below. New restructuring activities are discussed in greater detail below. Restructuring charges are included within “Selling, general and administrative expenses” in the condensed consolidated statement of operations. The following table provides detail of the Company’s restructuring charges for the three and six months ended June 30, 2017 and 2016: Three Months Ended Six Months Ended Cumulative June 30, June 30, Life-to-date 2017 2016 2017 2016 Charges Segment Terneuzen Compounding Restructuring (1) Asset impairment/accelerated depreciation $ 574 $ — $ 1,131 $ — $ 1,131 Employee termination benefits 156 — 156 — 156 Contract terminations — — 590 — 590 Decommissioning and other — — — — 626 Terneuzen Subtotal $ 730 $ — $ 1,877 $ — $ 2,503 Performance Plastics Livorno Plant Restructuring (2) Asset impairment/accelerated depreciation $ — $ — $ — $ — $ 14,345 Employee termination benefits 206 — 358 — 4,990 Contract terminations — — — — 269 Decommissioning and other 479 — 1,063 — 1,740 Livorno Subtotal $ 685 $ — $ 1,421 $ — $ 21,344 Latex Binders Other Restructurings 349 1,101 1,164 2,233 Various Total Restructuring Charges $ 1,764 $ 1,101 $ 4,462 $ 2,233 (1) In March 2017, the Company announced plans to upgrade its production capability for compounded resins with the construction of a new state-of-the art compounding facility to replace its existing compounding facility in Terneuzen, The Netherlands. The Company expects to incur incremental accelerated depreciation charges of $2.4 million and estimated decommissioning and other charges of approximately $1.3 million throughout 2017 and 2018, the majority of which are expected to be paid in 2018. (2) In August 2016, the Company announced its plan to cease manufacturing activities at its latex binders manufacturing facility in Livorno, Italy. The Company expects to incur incremental employee termination benefit charges of $0.4 million throughout 2017, which are expected to be paid in early 2018. The Company also expects to incur additional decommissioning costs associated with this plant shutdown in 2017, the cost of which will be expensed as incurred. The following table provides a rollforward of the liability balances associated with the Company’s restructuring activities as of June 30, 2017. Employee termination benefit and contract termination charges are recorded within “Accrued expenses and other current liabilities” in the condensed consolidated balance sheet. Balance at Balance at December 31, 2016 Expenses Deductions (1) June 30, 2017 Employee termination benefits $ 5,021 $ 2,102 $ (5,563) $ 1,560 Contract terminations 269 590 (127) 732 Decommissioning and other — 1,360 (1,360) — Total $ 5,290 $ 4,052 $ (7,050) $ 2,292 (1) Includes primarily payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Shareholders' Equity. | |
Accumulated Other Comprehensive Income (Loss) | NOTE 14—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of AOCI, net of income taxes, consisted of: Cumulative Pension & Other Foreign Exchange Translation Postretirement Benefit Cash Flow Three Months Ended June 30, 2017 and 2016 Adjustments Plans, Net Hedges, Net Total Balance as of March 31, 2017 $ (114,721) $ (62,128) $ 7,462 $ (169,387) Other comprehensive income (loss) 18,974 — (11,957) 7,017 Amounts reclassified from AOCI to net income (1) — 796 (1,009) (213) Balance as of June 30, 2017 $ (95,747) $ (61,332) $ (5,504) $ (162,583) Balance as of March 31, 2016 $ (95,697) $ (46,426) $ (1,856) $ (143,979) Other comprehensive income (loss) (11,005) — 5,294 (5,711) Amounts reclassified from AOCI to net income (1) — 539 735 1,274 Balance as of June 30, 2016 $ (106,702) $ (45,887) $ 4,173 $ (148,416) Cumulative Pension & Other Foreign Exchange Translation Postretirement Benefit Cash Flow Six Months Ended June 30, 2017 and 2016 Adjustments Plans, Net Hedges, Net Total Balance as of December 31, 2016 $ (118,922) $ (63,504) $ 12,272 $ (170,154) Other comprehensive income (loss) 23,175 — (14,316) 8,859 Amounts reclassified from AOCI to net income (1) — 2,172 (3,460) (1,288) Balance as of June 30, 2017 $ (95,747) $ (61,332) $ (5,504) $ (162,583) Balance as of December 31, 2015 $ (109,120) $ (46,166) $ 5,569 $ (149,717) Other comprehensive income (loss) 2,418 (800) (1,026) 592 Amounts reclassified from AOCI to net income (1) — 1,079 (370) 709 Balance as of June 30, 2016 $ (106,702) $ (45,887) $ 4,173 $ (148,416) (1) The following is a summary of amounts reclassified from AOCI to net income for the three and six months ended June 30, 2017 and 2016, respectively: Amount Reclassified from AOCI Amount Reclassified from AOCI AOCI Components Three Months Ended June 30, Six Months Ended June 30, Statement of Operations 2017 2016 2017 2016 Classification Cash flow hedging items Foreign exchange cash flow hedges $ (1,009) $ 735 $ (3,460) $ (370) Cost of sales Total before tax (1,009) 735 (3,460) (370) Tax effect — — — — Provision for income taxes Total, net of tax $ (1,009) $ 735 $ (3,460) $ (370) Amortization of pension and other postretirement benefit plan items Prior service credit $ (456) $ (467) $ (902) $ (920) (a) Net actuarial loss 1,613 1,265 3,189 2,519 (a) Net settlement and curtailment loss — — 648 — (a) Total before tax 1,157 798 2,935 1,599 Tax effect (361) (259) (763) (520) Provision for income taxes Total, net of tax $ 796 $ 539 $ 2,172 $ 1,079 (a) These AOCI components are included in the computation of net periodic benefit costs (see Note 9). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Earnings Per Share | NOTE 15—EARNINGS PER SHARE Basic earnings per ordinary share (“basic EPS”) is computed by dividing net income available to ordinary shareholders by the weighted average number of the Company’s ordinary shares outstanding for the applicable period. Diluted earnings per ordinary share (“diluted EPS”) is calculated using net income available to ordinary shareholders divided by diluted weighted-average ordinary shares outstanding during each period, which includes unvested RSUs, option awards, and PSUs. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential ordinary shares would have an anti-dilutive effect. The following table presents basic EPS and diluted EPS for the three and six months ended June 30, 2017 and 2016, respectively. Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2017 2016 2017 2016 Earnings: Net income $ 60,159 $ 95,804 $ 177,453 $ 172,551 Shares: Weighted-average ordinary shares outstanding 43,902 46,952 43,979 47,803 Dilutive effect of RSUs, option awards, and PSUs 1,093 905 1,186 751 Diluted weighted-average ordinary shares outstanding 44,995 47,857 45,165 48,554 Income per share: Income per share—basic $ 1.37 $ 2.04 $ 4.03 $ 3.61 Income per share—diluted $ 1.34 $ 2.00 $ 3.93 $ 3.55 * Refer to Note 10 for discussion of RSUs, option awards, and PSUs granted to certain Company directors and employees. The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share were 0.3 million and 0.2 million for the three and six months ended June 30, 2017, respectively, and zero million and zero million for the three and six months ended June 30, 2016, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events | |
Subsequent Events | NOTE 16—SUBSEQUENT EVENTS On July 10, 2017, the Company completed the acquisition of API Applicazioni Plastiche Industriali S.p.A, or API Plastics, for a purchase price of $83.8 million, net of cash acquired, subject to certain customary post-closing adjustments. API Plastics, based in Mussolente, Italy, is a manufacturer of soft-touch polymers and bioplastics, such as thermoplastic elastomers (“TPEs”). TPEs are often molded over rigid plastics such as ABS and PC/ABS, which presents opportunities for complementary technology product offerings within our Performance Plastics segment. The acquisition was funded through existing cash on hand. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation. | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements of Trinseo S.A. and its subsidiaries (the “Company”) as of and for the periods ended June 30, 2017 and 2016 were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect all adjustments, consisting only of normal recurring adjustments, which, in the opinion of management, are considered necessary for the fair statement of the results for the periods presented. Because they cover interim periods, the statements and related notes to the financial statements do not include all disclosures normally provided in annual financial statements and, therefore, these statements should be read in conjunction with the 2016 audited consolidated financial statements included within the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (“SEC”) on March 1, 2017. The December 31, 2016 condensed consolidated balance sheet data presented herein was derived from the Company’s December 31, 2016 audited consolidated financial statements, but does not include all disclosures required by GAAP for annual periods. Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications did not have a material impact on the Company’s financial position or results. Refer to Note 12 for further information. |
Investments in Unconsolidated27
Investments in Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments in Unconsolidated Affiliates | |
Summarized Financial Information of Unconsolidated Affiliates | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Sales $ 476,882 $ 405,351 $ 910,828 $ 781,603 Gross profit $ 65,170 $ 87,867 $ 85,758 $ 156,271 Net income $ 54,121 $ 71,015 $ 60,449 $ 123,812 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventories | |
Schedule of Inventories | June 30, December 31, 2017 2016 Finished goods $ 242,824 $ 187,577 Raw materials and semi-finished goods 199,324 168,804 Supplies 31,788 28,964 Total $ 473,936 $ 385,345 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt | |
Schedule of Debt | June 30, 2017 December 31, 2016 Interest Rate as of June 30, 2017 Maturity Carrying Unamortized (1) Total Debt, Carrying Unamortized (1) Total Debt, Senior Credit Facility 2020 Revolving Facility (2) Various May 2020 $ — $ — $ — $ — $ — $ — 2021 Term Loan B (3) 4.476% November 2021 489,136 (8,292) 480,844 491,545 (9,159) 482,386 2022 Senior Notes USD Notes 6.750% May 2022 300,000 (5,277) 294,723 300,000 (5,726) 294,274 Euro Notes 6.375% May 2022 427,301 (6,590) 420,711 394,275 (7,157) 387,118 Accounts Receivable Securitization Facility (4) Various May 2019 — — — — — — Other indebtedness Various Various 1,566 — 1,566 1,591 — 1,591 Total debt $ 1,218,003 $ (20,159) $ 1,197,844 $ 1,187,411 $ (22,042) $ 1,165,369 Less: current portion (5,000) (5,000) Total long-term debt, net of unamortized deferred financing fees $ 1,192,844 $ 1,160,369 (1) This caption does not include deferred financing fees related to the Company’s revolving facilities, which are included within “Deferred charges and other assets” on the condensed consolidated balance sheets. (2) The Company had $308.1 million (net of $16.9 million outstanding letters of credit) of funds available for borrowing under this facility as of June 30, 2017. Additionally, the Borrowers were required to pay a quarterly commitment fee in respect of any unused commitments under this facility equal to 0.375% per annum. (3) Carrying amounts presented above are net of an original issue discount, which was 0.25% of the original $500.0 million facility. This facility bears an interest rate of LIBOR plus 3.25%, subject to a 1.00% LIBOR floor. As of June 30, 2017, $5.0 million of the scheduled future payments related to this facility were classified as current debt on the Company’s condensed consolidated balance sheet. (4) This facility has a borrowing capacity of $200.0 million. As of June 30, 2017, the Company had approximately $151.3 million of accounts receivable available to support this facility, based on the pool of eligible accounts receivable. In regards to outstanding borrowings, fixed interest charges are 2.6% plus variable commercial paper rates, while for available, but undrawn commitments, fixed interest charges are 1.4%. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments [Abstract] | |
Notional Amounts of Most Significant Net Foreign Exchange Hedge Positions Outstanding | June 30, Buy / (Sell) 2017 Euro $ (146,217) Chinese Yuan $ (74,647) Indonesian Rupiah $ (33,617) Swiss Franc $ 18,686 Japanese Yen $ (7,706) |
Schedule of Changes in Fair Value of Company's Derivatives Instruments | Gain (Loss) Recognized in Gain (Loss) Recognized in AOCI on Balance Sheet Statement of Operations Three Months Ended June 30, Statement of Operations 2017 2016 2017 2016 Classification Designated as Cash Flow Hedges Foreign exchange cash flow hedges $ (12,966) $ 6,029 $ 1,009 $ (735) Cost of sales Total $ (12,966) $ 6,029 $ 1,009 $ (735) Net Investment Hedges Euro Notes $ (19,670) $ 3,798 $ — $ — Other expense (income), net Total $ (19,670) $ 3,798 $ — $ — Not Designated as Cash Flow Hedges Foreign exchange forward contracts $ — $ — $ (8,835) $ (2,138) Other expense (income), net Total $ — $ — $ (8,835) $ (2,138) Gain (Loss) Recognized in Gain (Loss) Recognized in AOCI on Balance Sheet Statement of Operations Six Months Ended June 30, Statement of Operations 2017 2016 2017 2016 Classification Designated as Cash Flow Hedges Foreign exchange cash flow hedges $ (17,776) $ (1,396) $ 3,460 $ 370 Cost of sales Total $ (17,776) $ (1,396) $ 3,460 $ 370 Net Investment Hedges Euro Notes $ (24,660) $ (2,487) $ — $ — Other expense (income), net Total $ (24,660) $ (2,487) $ — $ — Not Designated as Cash Flow Hedges Foreign exchange forward contracts $ — $ — $ (10,510) $ 995 Other expense (income), net Total $ — $ — $ (10,510) $ 995 |
Net Unrealized Gains and Losses Recorded in Consolidated Balance Sheets | June 30, 2017 December 31, 2016 Foreign Foreign Foreign Foreign Forward Cash Flow Forward Cash Flow Balance Sheet Classification Contracts Hedges Total Contracts Hedges Total Asset Derivatives: Accounts receivable, net of allowance $ 514 $ — $ 514 $ 1,664 $ 11,018 $ 12,682 Deferred charges and other assets — — — — — — Total asset derivatives $ 514 $ — $ 514 $ 1,664 $ 11,018 $ 12,682 Liability Derivatives: Accounts payable $ 4,830 $ 4,745 $ 9,575 $ 511 $ — $ 511 Other noncurrent obligations — 2,069 2,069 — — — Total liability derivatives $ 4,830 $ 6,814 $ 11,644 $ 511 $ — $ 511 |
Gross Amounts of Derivative Instruments and Amounts Offset | Gross Amounts Gross Amounts Net Amounts Recognized in the Offset in the Presented in the Balance Sheet Balance Sheet Balance Sheet Balance at June 30, 2017 Derivative assets $ 1,289 $ (775) $ 514 Derivative liabilities 12,419 (775) 11,644 Balance at December 31, 2016 Derivative assets $ 23,401 $ (10,719) $ 12,682 Derivative liabilities 11,230 (10,719) 511 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Schedule of Assets and Liabilities at Fair Value on Recurring Basis | June 30, 2017 Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Assets (Liabilities) at Fair Value (Level 1) (Level 2) (Level 3) Total Foreign exchange forward contracts—Assets $ — $ 514 $ — $ 514 Foreign exchange forward contracts—(Liabilities) — (4,830) — (4,830) Foreign exchange cash flow hedges—(Liabilities) — (6,814) — (6,814) Total fair value $ — $ (11,130) $ — $ (11,130) December 31, 2016 Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Assets (Liabilities) at Fair Value (Level 1) (Level 2) (Level 3) Total Foreign exchange forward contracts—Assets $ — $ 1,664 $ — $ 1,664 Foreign exchange forward contracts—(Liabilities) — (511) — (511) Foreign exchange cash flow hedges—Assets — 11,018 — 11,018 Total fair value $ — $ 12,171 $ — $ 12,171 |
Estimated Fair Value of Outstanding Debt Not Carried at Fair Value | As of As of June 30, 2017 December 31, 2016 2022 Senior Notes USD Notes $ 318,750 $ 315,000 Euro Notes 456,187 424,437 2021 Term Loan B 494,596 498,041 Total fair value $ 1,269,533 $ 1,237,478 |
Pension Plans and Other Postr32
Pension Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Defined Benefit Pension Plans Service cost $ 4,707 $ 4,211 $ 9,291 $ 8,282 Interest cost 1,111 1,408 2,192 2,768 Expected return on plan assets (423) (499) (835) (982) Amortization of prior service credit (482) (493) (953) (971) Amortization of net loss 1,395 1,073 2,753 2,111 Net settlement and curtailment loss (1) — — 129 — Net periodic benefit cost $ 6,308 $ 5,700 $ 12,577 $ 11,208 (1) Represents a settlement loss of approximately $0.5 million triggered by benefit payments exceeding the sum of service and interest cost for one of the Company’s pension plans in Switzerland, partially offset by a curtailment gain of approximately $0.4 million related to a reduction in the number of participants in the Company’s pension plan in Japan. |
Other Postretirement Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Other Postretirement Plans Service cost $ 54 $ 65 $ 108 $ 128 Interest cost 63 129 126 250 Amortization of prior service cost 25 26 51 52 Amortization of net gain (10) (43) (21) (86) Net periodic benefit cost $ 132 $ 177 $ 264 $ 344 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation | |
Summary of Stock-Based Compensation Expense and Unrecognized Compensation Cost | As of Three Months Ended Six Months Ended June 30, 2017 June 30, June 30, Unrecognized Weighted 2017 2016 2017 2016 Compensation Cost Average Years RSUs $ 2,135 $ 1,355 $ 4,008 $ 2,349 $ 12,854 2.0 Options 502 763 3,207 4,135 2,094 1.5 PSUs 321 — 472 — 3,386 2.6 Restricted Stock Awards issued by Former Parent — 1,104 — 2,332 — — Total Stock-based Compensation Expense $ 2,958 $ 3,222 $ 7,687 $ 8,816 |
Summary of Awards Granted and Weighted Average Grant-Date Fair Value | Six Months Ended June 30, 2017 Awards Granted Weighted Average Grant Date Fair Value per Award RSUs 110,117 $ 70.87 Options 191,565 20.61 PSUs 50,937 75.74 |
Summary of Weighted-average Assumptions | Six Months Ended June 30, 2017 Expected term (in years) 5.50 Expected volatility 35.00 % Risk-free interest rate 2.19 % Dividend yield 2.00 % |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segments | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Performance Materials Basic Plastics & Feedstocks Latex Synthetic Performance Basic Americas Corporate Three Months Ended Binders Rubber Plastics Plastics Feedstocks Styrenics Unallocated Total June 30, 2017 Sales to external customers $ 291,530 $ 174,009 $ 190,173 $ 382,460 $ 107,027 $ — $ — $ 1,145,199 Equity in earnings of unconsolidated affiliates — — — — — 29,927 — 29,927 Adjusted EBITDA (1) 36,070 27,689 23,489 31,768 (1,151) 29,927 Investment in unconsolidated affiliates — — — — — 153,077 — 153,077 Depreciation and amortization 5,761 8,688 2,466 4,130 3,092 — 2,187 26,324 June 30, 2016 Sales to external customers $ 232,471 $ 111,391 $ 183,891 $ 363,325 $ 78,616 $ — $ — $ 969,694 Equity in earnings of unconsolidated affiliates — — — 926 — 37,676 — 38,602 Adjusted EBITDA (1) 21,461 30,216 38,472 43,150 32,548 37,676 Investment in unconsolidated affiliates — — — 35,842 — 154,472 — 190,314 Depreciation and amortization 5,881 8,892 1,589 3,941 2,760 — 1,790 24,853 Performance Materials Basic Plastics & Feedstocks Latex Synthetic Performance Basic Americas Corporate Six Months Ended Binders Rubber Plastics Plastics Feedstocks Styrenics Unallocated Total June 30, 2017 Sales to external customers $ 580,461 $ 337,371 $ 374,724 $ 763,210 $ 193,923 $ — $ — $ 2,249,689 Equity in earnings (losses) of unconsolidated affiliates — — — 810 — 48,412 — 49,222 Adjusted EBITDA (1) 72,885 73,959 50,364 70,629 40,745 48,412 Investment in unconsolidated affiliates — — — — — 153,077 — 153,077 Depreciation and amortization 11,424 17,067 4,844 7,820 5,568 — 4,321 51,044 June 30, 2016 Sales to external customers $ 441,952 $ 213,588 $ 352,520 $ 705,954 $ 149,764 $ — $ — $ 1,863,778 Equity in earnings (losses) of unconsolidated affiliates — — — 3,019 — 70,609 — 73,628 Adjusted EBITDA (1) 40,228 53,295 73,558 80,917 53,358 70,609 Investment in unconsolidated affiliates — — — 35,842 — 154,472 — 190,314 Depreciation and amortization 12,161 16,935 3,133 7,525 5,626 — 2,593 47,973 (1) |
Reconciliation of IBT to Adjusted EBITDA | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Income before income taxes $ 78,959 $ 124,404 $ 225,553 $ 223,051 Interest expense, net 18,719 18,814 36,919 37,710 Depreciation and amortization 26,324 24,853 51,044 47,973 Corporate Unallocated (2) 21,559 21,153 49,024 46,370 Adjusted EBITDA Addbacks (3) 2,231 14,299 (5,546) 16,861 Segment Adjusted EBITDA $ 147,792 $ 203,523 $ 356,994 $ 371,965 (2) (3) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2017 2016 2017 2016 Net (gain) loss on disposition of businesses and assets (Notes 3 and 11) $ — $ 12.9 $ (9.9) $ 12.9 Restructuring and other charges (Note 13) 1.1 1.1 3.3 1.8 Acquisition transaction and integration costs (a) 1.1 — 1.1 — Other items (b) — 0.3 — 2.2 Total Adjusted EBITDA Addbacks $ 2.2 $ 14.3 $ (5.5) $ 16.9 (a) Acquisition transaction and integration costs for the three and six months ended June 30, 2017 relate to advisory and professional fees incurred in conjunction with the Company’s acquisition of API Applicazioni Plastiche Industriali S.p.A (“API Plastics”), which closed on July 10, 2017. Refer to Note 16 for further information. (b) Other items for the three and six months ended June 30, 2016 relate to fees incurred in conjunction with the Company’s secondary offerings completed during these periods. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring | |
Detail of Restructuring Charges | Three Months Ended Six Months Ended Cumulative June 30, June 30, Life-to-date 2017 2016 2017 2016 Charges Segment Terneuzen Compounding Restructuring (1) Asset impairment/accelerated depreciation $ 574 $ — $ 1,131 $ — $ 1,131 Employee termination benefits 156 — 156 — 156 Contract terminations — — 590 — 590 Decommissioning and other — — — — 626 Terneuzen Subtotal $ 730 $ — $ 1,877 $ — $ 2,503 Performance Plastics Livorno Plant Restructuring (2) Asset impairment/accelerated depreciation $ — $ — $ — $ — $ 14,345 Employee termination benefits 206 — 358 — 4,990 Contract terminations — — — — 269 Decommissioning and other 479 — 1,063 — 1,740 Livorno Subtotal $ 685 $ — $ 1,421 $ — $ 21,344 Latex Binders Other Restructurings 349 1,101 1,164 2,233 Various Total Restructuring Charges $ 1,764 $ 1,101 $ 4,462 $ 2,233 (1) In March 2017, the Company announced plans to upgrade its production capability for compounded resins with the construction of a new state-of-the art compounding facility to replace its existing compounding facility in Terneuzen, The Netherlands. The Company expects to incur incremental accelerated depreciation charges of $2.4 million and estimated decommissioning and other charges of approximately $1.3 million throughout 2017 and 2018, the majority of which are expected to be paid in 2018. (2) In August 2016, the Company announced its plan to cease manufacturing activities at its latex binders manufacturing facility in Livorno, Italy. The Company expects to incur incremental employee termination benefit charges of $0.4 million throughout 2017, which are expected to be paid in early 2018. The Company also expects to incur additional decommissioning costs associated with this plant shutdown in 2017, the cost of which will be expensed as incurred. |
Rollforward of Liability Balances | Balance at Balance at December 31, 2016 Expenses Deductions (1) June 30, 2017 Employee termination benefits $ 5,021 $ 2,102 $ (5,563) $ 1,560 Contract terminations 269 590 (127) 732 Decommissioning and other — 1,360 (1,360) — Total $ 5,290 $ 4,052 $ (7,050) $ 2,292 (1) Includes primarily payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement. |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Shareholders' Equity. | |
Components of AOCI, Net of Income Taxes | Cumulative Pension & Other Foreign Exchange Translation Postretirement Benefit Cash Flow Three Months Ended June 30, 2017 and 2016 Adjustments Plans, Net Hedges, Net Total Balance as of March 31, 2017 $ (114,721) $ (62,128) $ 7,462 $ (169,387) Other comprehensive income (loss) 18,974 — (11,957) 7,017 Amounts reclassified from AOCI to net income (1) — 796 (1,009) (213) Balance as of June 30, 2017 $ (95,747) $ (61,332) $ (5,504) $ (162,583) Balance as of March 31, 2016 $ (95,697) $ (46,426) $ (1,856) $ (143,979) Other comprehensive income (loss) (11,005) — 5,294 (5,711) Amounts reclassified from AOCI to net income (1) — 539 735 1,274 Balance as of June 30, 2016 $ (106,702) $ (45,887) $ 4,173 $ (148,416) Cumulative Pension & Other Foreign Exchange Translation Postretirement Benefit Cash Flow Six Months Ended June 30, 2017 and 2016 Adjustments Plans, Net Hedges, Net Total Balance as of December 31, 2016 $ (118,922) $ (63,504) $ 12,272 $ (170,154) Other comprehensive income (loss) 23,175 — (14,316) 8,859 Amounts reclassified from AOCI to net income (1) — 2,172 (3,460) (1,288) Balance as of June 30, 2017 $ (95,747) $ (61,332) $ (5,504) $ (162,583) Balance as of December 31, 2015 $ (109,120) $ (46,166) $ 5,569 $ (149,717) Other comprehensive income (loss) 2,418 (800) (1,026) 592 Amounts reclassified from AOCI to net income (1) — 1,079 (370) 709 Balance as of June 30, 2016 $ (106,702) $ (45,887) $ 4,173 $ (148,416) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified from AOCI Amount Reclassified from AOCI AOCI Components Three Months Ended June 30, Six Months Ended June 30, Statement of Operations 2017 2016 2017 2016 Classification Cash flow hedging items Foreign exchange cash flow hedges $ (1,009) $ 735 $ (3,460) $ (370) Cost of sales Total before tax (1,009) 735 (3,460) (370) Tax effect — — — — Provision for income taxes Total, net of tax $ (1,009) $ 735 $ (3,460) $ (370) Amortization of pension and other postretirement benefit plan items Prior service credit $ (456) $ (467) $ (902) $ (920) (a) Net actuarial loss 1,613 1,265 3,189 2,519 (a) Net settlement and curtailment loss — — 648 — (a) Total before tax 1,157 798 2,935 1,599 Tax effect (361) (259) (763) (520) Provision for income taxes Total, net of tax $ 796 $ 539 $ 2,172 $ 1,079 (a) These AOCI components are included in the computation of net periodic benefit costs (see Note 9). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Schedule of Earnings per Share Basic and Diluted | Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2017 2016 2017 2016 Earnings: Net income $ 60,159 $ 95,804 $ 177,453 $ 172,551 Shares: Weighted-average ordinary shares outstanding 43,902 46,952 43,979 47,803 Dilutive effect of RSUs, option awards, and PSUs 1,093 905 1,186 751 Diluted weighted-average ordinary shares outstanding 44,995 47,857 45,165 48,554 Income per share: Income per share—basic $ 1.37 $ 2.04 $ 4.03 $ 3.61 Income per share—diluted $ 1.34 $ 2.00 $ 3.93 $ 3.55 * Refer to Note 10 for discussion of RSUs, option awards, and PSUs granted to certain Company directors and employees. The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per share were 0.3 million and 0.2 million for the three and six months ended June 30, 2017, respectively, and zero million and zero million for the three and six months ended June 30, 2016, respectively. |
Investments in Unconsolidated38
Investments in Unconsolidated Affiliates (Details) $ in Thousands | Jan. 31, 2017USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Investments in Unconsolidated Affiliates | ||||||
Number of joint ventures | item | 2 | 2 | ||||
Investments in unconsolidated affiliates | $ 153,077 | $ 190,314 | $ 153,077 | $ 190,314 | $ 191,418 | |
Basic Plastics Segment [Member] | ||||||
Investments in Unconsolidated Affiliates | ||||||
Investments in unconsolidated affiliates | 35,842 | 35,842 | ||||
Americas Styrenics | ||||||
Investments in Unconsolidated Affiliates | ||||||
Investments in unconsolidated affiliates | 153,100 | 153,100 | 149,700 | |||
Investment in unconsolidated affiliates-difference between carrying amount and underlying equity | $ 52,300 | $ 52,300 | $ 71,200 | |||
Percentage of ownership underlying net assets | 50.00% | 50.00% | 50.00% | |||
Amortized weighted average remaining useful life | P3Y3M18D | |||||
Dividends received from operating activities | $ 37,500 | 30,000 | $ 45,000 | 60,000 | ||
Sumika Styron Polycarbonate | ||||||
Investments in Unconsolidated Affiliates | ||||||
Investments in unconsolidated affiliates | 0 | 0 | $ 41,800 | |||
Percentage of ownership underlying net assets | 50.00% | |||||
Sales proceeds | $ 42,100 | |||||
Dividends received from operating and investing activities | $ 0 | $ 0 | 9,800 | $ 6,200 | ||
Sumika Styron Polycarbonate | Basic Plastics Segment [Member] | ||||||
Investments in Unconsolidated Affiliates | ||||||
Percentage of ownership underlying net assets | 50.00% | |||||
Sumika Styron Polycarbonate | Other Expense (Income), Net | Basic Plastics Segment [Member] | ||||||
Investments in Unconsolidated Affiliates | ||||||
Gain on sale | $ 9,300 |
Investments in Unconsolidated39
Investments in Unconsolidated Affiliates - Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summarized Financial Information, Net Income | ||||
Sales | $ 476,882 | $ 405,351 | $ 910,828 | $ 781,603 |
Gross profit | 65,170 | 87,867 | 85,758 | 156,271 |
Net income | $ 54,121 | $ 71,015 | $ 60,449 | $ 123,812 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventories | ||
Finished goods | $ 242,824 | $ 187,577 |
Raw materials and semi-finished goods | 199,324 | 168,804 |
Supplies | 31,788 | 28,964 |
Total | $ 473,936 | $ 385,345 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) $ in Thousands, € in Millions | Jun. 30, 2017EUR (€) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instruments | |||
Carrying amount | $ 1,218,003 | $ 1,187,411 | |
Unamortized deferred financing fees | (20,159) | (22,042) | |
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 1,197,844 | 1,165,369 | |
Less: current portion | (5,000) | (5,000) | |
Total long-term debt, net of unamortized deferred financing fees | 1,192,844 | 1,160,369 | |
2021 Term Loan B [Member] | |||
Debt Instruments | |||
Carrying amount | 489,136 | 491,545 | |
Unamortized deferred financing fees | (8,292) | (9,159) | |
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 480,844 | 482,386 | |
Less: current portion | $ (5,000) | ||
Interest and Debt Expense [Abstract] | |||
Interest rate | 4.476% | 4.476% | |
USD Notes | |||
Debt Instruments | |||
Carrying amount | $ 300,000 | 300,000 | |
Unamortized deferred financing fees | (5,277) | (5,726) | |
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | $ 294,723 | 294,274 | |
Interest and Debt Expense [Abstract] | |||
Interest rate | 6.75% | 6.75% | |
Euro Notes | |||
Debt Instruments | |||
Carrying amount | $ 427,301 | 394,275 | |
Unamortized deferred financing fees | (6,590) | (7,157) | |
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | € 375 | $ 420,711 | 387,118 |
Interest and Debt Expense [Abstract] | |||
Interest rate | 6.375% | 6.375% | |
Accounts Receivable Securitization Facility [Member] | |||
Debt Instruments | |||
Carrying amount | $ 0 | 0 | |
Unamortized deferred financing fees | 0 | 0 | |
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 0 | 0 | |
Other Indebtedness [Member] | |||
Debt Instruments | |||
Carrying amount | 1,566 | 1,591 | |
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | $ 1,566 | $ 1,591 |
Debt - Senior Credit Facility (
Debt - Senior Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instruments | ||
Current portion | $ 5,000 | $ 5,000 |
2020 Revolving Facility [Member] | ||
Debt Instruments | ||
Funds available for borrowings | 308,100 | |
Letters of credit, amount outstanding | $ 16,900 | |
Commitment fee (as a percent) | 0.375% | |
2021 Term Loan B [Member] | ||
Debt Instruments | ||
Discount rate, as a percent | 0.25% | |
Maximum borrowing capacity | $ 500,000 | |
Current portion | $ 5,000 | |
LIBOR [Member] | 2021 Term Loan B [Member] | ||
Debt Instruments | ||
Debt instrument, margin rate | 3.25% | |
Variable rate floor (as a percent) | 1.00% |
Debt - Accounts Receivable Secu
Debt - Accounts Receivable Securitization Facility and Other (Details) - Accounts Receivable Securitization Facility [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instruments | |
Maximum borrowing capacity | $ 200 |
Accounts receivable available to support facility | $ 151.3 |
Fixed interest charges on available, but undrawn borrowings | 1.40% |
Base Rate [Member] | |
Debt Instruments | |
Interest rate | 2.60% |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017EUR (€) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Derivative Instruments | |||||||
Total debt | $ 1,197,844 | $ 1,165,369 | |||||
Information regarding changes in fair value of derivatives | |||||||
Foreign exchange transaction gains (losses) | $ 7,300 | $ 2,300 | $ 7,900 | $ (2,600) | |||
Ineffectiveness on cash flow hedges | $ 0 | ||||||
Foreign Exchange Cash Flow Hedges | |||||||
Derivative Instruments | |||||||
Original maturity period | 18 months | ||||||
Information regarding changes in fair value of derivatives | |||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | (4,700) | ||||||
Net Investment Hedge | |||||||
Derivative Instruments | |||||||
Cumulative translation adjustment, net of tax | 10,200 | ||||||
Information regarding changes in fair value of derivatives | |||||||
Gain (Loss) Recognized in AOCI on Balance Sheet | (19,670) | 3,798 | $ (24,660) | (2,487) | |||
Not Designated as Hedging Instruments [Member] | |||||||
Information regarding changes in fair value of derivatives | |||||||
Gain (Loss) Recognized in Statement of Operations | (8,835) | (2,138) | (10,510) | 995 | |||
Designated as Hedging Instrument [Member] | |||||||
Information regarding changes in fair value of derivatives | |||||||
Gain (Loss) Recognized in AOCI on Balance Sheet | (12,966) | 6,029 | (17,776) | (1,396) | |||
Gain (Loss) Recognized in Statement of Operations | 1,009 | (735) | 3,460 | 370 | |||
Designated as Hedging Instrument [Member] | Foreign Exchange Cash Flow Hedges | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | 255,000 | ||||||
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments [Member] | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | 302,100 | ||||||
Cost of Sales | Designated as Hedging Instrument [Member] | Foreign Exchange Cash Flow Hedges | |||||||
Information regarding changes in fair value of derivatives | |||||||
Gain (Loss) Recognized in AOCI on Balance Sheet | (12,966) | 6,029 | (17,776) | (1,396) | |||
Gain (Loss) Recognized in Statement of Operations | 1,009 | (735) | 3,460 | 370 | |||
Other Expense (Income), Net | Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments [Member] | |||||||
Information regarding changes in fair value of derivatives | |||||||
Gain (Loss) Recognized in Statement of Operations | (8,835) | (2,138) | (10,510) | 995 | |||
Other Expense (Income), Net | Euro Notes | Net Investment Hedge | |||||||
Information regarding changes in fair value of derivatives | |||||||
Gain (Loss) Recognized in AOCI on Balance Sheet | $ (19,670) | $ 3,798 | $ (24,660) | $ (2,487) | |||
Euro Notes | |||||||
Derivative Instruments | |||||||
Total debt | € 375 | 420,711 | $ 387,118 | ||||
Euro Notes | Net Investment Hedge | |||||||
Derivative Instruments | |||||||
Total debt | € | € 280 | ||||||
Euro [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments [Member] | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | 146,217 | ||||||
Chinese Yuan [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments [Member] | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | 74,647 | ||||||
Indonesian Rupiah [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments [Member] | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | 33,617 | ||||||
Swiss Franc [Member] | Foreign Exchange Forward Contracts | Buy | Not Designated as Hedging Instruments [Member] | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | 18,686 | ||||||
Japanese Yen [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments [Member] | |||||||
Derivative Instruments | |||||||
Derivative contracts, notional amount | $ 7,706 |
Derivative Instruments - Financ
Derivative Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 514 | $ 12,682 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 11,644 | 511 |
Accounts Receivable | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 514 | 12,682 |
Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 9,575 | 511 |
Other Noncurrent Obligations | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 2,069 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Cash Flow Hedges | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 11,018 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 6,814 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Cash Flow Hedges | Accounts Receivable | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 11,018 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Cash Flow Hedges | Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 4,745 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Cash Flow Hedges | Other Noncurrent Obligations | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 2,069 | |
Foreign Exchange Forward Contracts | ||
Derivatives, Financial Assets and Liabilities | ||
Gross Amounts of Recognized Assets | 1,289 | 23,401 |
Gross Amounts of Offset in the Consolidated Balance Sheet | (775) | (10,719) |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 514 | 12,682 |
Gross Amounts of Recognized Liabilities | 12,419 | 11,230 |
Gross Amounts of Offset in the Consolidated Balance Sheet | (775) | (10,719) |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 11,644 | 511 |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 514 | 1,664 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 4,830 | 511 |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments [Member] | Accounts Receivable | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 514 | 1,664 |
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments [Member] | Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 4,830 | $ 511 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities at Fair Value, Recurring (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements | ||
Assets at fair value | $ 514 | $ 12,682 |
Liabilities at fair value | (11,644) | (511) |
Recurring | ||
Fair Value Measurements | ||
Total fair value | (11,130) | 12,171 |
Recurring | Foreign Exchange Forward Contracts | ||
Fair Value Measurements | ||
Assets at fair value | 514 | 1,664 |
Liabilities at fair value | (4,830) | (511) |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total fair value | (11,130) | 12,171 |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign Exchange Forward Contracts | ||
Fair Value Measurements | ||
Assets at fair value | 514 | 1,664 |
Liabilities at fair value | (4,830) | (511) |
Recurring | Foreign Exchange Cash Flow Hedges | ||
Fair Value Measurements | ||
Assets at fair value | 11,018 | |
Liabilities at fair value | (6,814) | |
Recurring | Foreign Exchange Cash Flow Hedges | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Assets at fair value | $ 11,018 | |
Liabilities at fair value | $ (6,814) |
Fair Value Measurements - Items
Fair Value Measurements - Items not at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value of Debt Instruments | ||
Total fair value of long term debt | $ 1,269,533 | $ 1,237,478 |
USD Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | 318,750 | 315,000 |
Euro Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | 456,187 | 424,437 |
2021 Term Loan B [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | $ 494,596 | $ 498,041 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases, Environmental Matters (Details) | Jun. 30, 2017USD ($)item | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure | ||
Environmental claims asserted | item | 0 | |
Accrued obligations for environmental remediation and restoration costs | $ | $ 0 | $ 0 |
Commitments and Contingencies49
Commitments and Contingencies - Purchase Commitments (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Maximum | |
Purchase commitment period | 5 years |
Minimum | |
Purchase commitment period | 1 year |
Pension Plans and Other Postr50
Pension Plans and Other Postretirement Benefits - Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net periodic benefit cost | ||||
Net settlement and curtailment loss | $ 129 | |||
Defined Benefit Pension Plans | ||||
Net periodic benefit cost | ||||
Service cost | $ 4,707 | $ 4,211 | 9,291 | $ 8,282 |
Interest cost | 1,111 | 1,408 | 2,192 | 2,768 |
Expected return on plan assets | (423) | (499) | (835) | (982) |
Amortization of prior service cost (credit) | (482) | (493) | (953) | (971) |
Amortization of net (gain) loss | 1,395 | 1,073 | 2,753 | 2,111 |
Settlement loss | 500 | |||
Defined benefit curtailment gain | 400 | |||
Defined Benefit Pension Plans | Cost of Sales and Selling, General and Administrative Expenses | ||||
Net periodic benefit cost | ||||
Net periodic benefit cost (income) | 6,308 | 5,700 | 12,577 | 11,208 |
Amounts recognized in other comprehensive income (loss) | ||||
Net periodic benefit cost (income) | 6,308 | 5,700 | 12,577 | 11,208 |
Other Postretirement Plans | ||||
Net periodic benefit cost | ||||
Service cost | 54 | 65 | 108 | 128 |
Interest cost | 63 | 129 | 126 | 250 |
Amortization of prior service cost (credit) | 25 | 26 | 51 | 52 |
Amortization of net (gain) loss | (10) | (43) | (21) | (86) |
Other Postretirement Plans | Cost of Sales and Selling, General and Administrative Expenses | ||||
Net periodic benefit cost | ||||
Net periodic benefit cost (income) | 132 | 177 | 264 | 344 |
Amounts recognized in other comprehensive income (loss) | ||||
Net periodic benefit cost (income) | $ 132 | $ 177 | $ 264 | $ 344 |
Pension Plans and Other Postr51
Pension Plans and Other Postretirement Benefits - Net Amounts Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Net amounts recognized in the balance sheets at December 31 | |||
Employer contributions | $ 5 | $ 10.2 | |
Additional cash contributions, including benefit payments to unfunded plans | 5.5 | ||
Other Noncurrent Obligations | |||
Net amounts recognized in the balance sheets at December 31 | |||
Benefit obligations | $ 211.7 | $ 211.7 | $ 195.8 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2015 | |
Other-than-Options, FV Activity | |||||
Compensation expense | $ 2,958 | $ 3,222 | $ 7,687 | $ 8,816 | |
Options, Additional Disclosures | |||||
Proceeds from exercise of option awards | $ 5,984 | 87 | |||
Additional Paid-In Capital [Member] | |||||
Adoption of Accounting Standards Update | |||||
Adoption of new accounting standard | $ 915 | ||||
Retained Earnings (Accumulated Deficit). | |||||
Adoption of Accounting Standards Update | |||||
Adoption of new accounting standard | $ (915) | ||||
Incentive Plan Under Former Parent [Member] | |||||
Other-than-Options, FV Activity | |||||
Compensation expense | 1,104 | 2,332 | |||
Restricted Stock Units | |||||
Other-than-Options, Shares Activity | |||||
Granted, Shares | 110,117 | ||||
Other-than-Options, FV Activity | |||||
Granted, Weighted-Average Grant Date Fair Value per Share | $ 70.87 | ||||
Compensation expense | 2,135 | 1,355 | $ 4,008 | 2,349 | |
Unrecognized compensation cost | 12,854 | $ 12,854 | |||
Weighted-average period of recognition | 2 years | ||||
Option Awards | |||||
Other-than-Options, FV Activity | |||||
Compensation expense | 502 | $ 763 | $ 3,207 | $ 4,135 | |
Unrecognized compensation cost | 2,094 | $ 2,094 | |||
Weighted-average period of recognition | 1 year 6 months | ||||
Options Outstanding Roll Forward | |||||
Granted, Options | 191,565 | ||||
Options, Additional Disclosures | |||||
Options granted, Weighted average grant date fair value | $ 20.61 | ||||
Fair Value Assumptions | |||||
Expected term (in years) | 5 years 6 months | ||||
Expected volatility | 35.00% | ||||
Risk-free interest rate | 2.19% | ||||
Dividend yield | 2.00% | ||||
Performance Share Units | |||||
Other-than-Options, Shares Activity | |||||
Granted, Shares | 50,937 | ||||
Other-than-Options, FV Activity | |||||
Granted, Weighted-Average Grant Date Fair Value per Share | $ 75.74 | ||||
Compensation expense | 321 | $ 472 | |||
Unrecognized compensation cost | $ 3,386 | $ 3,386 | |||
Weighted-average period of recognition | 2 years 7 months 6 days | ||||
Performance Share Units | Minimum | |||||
Other-than-Options, FV Activity | |||||
Vesting percentage | 0.00% | ||||
Performance Share Units | Maximum | |||||
Other-than-Options, FV Activity | |||||
Vesting percentage | 200.00% |
Divestitures (Details)
Divestitures (Details) - Brazil Latex and Automotive Businesses [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Disclosures by disposal group | ||||
Sales proceeds | $ 1.5 | $ 1.8 | ||
Other Expense (Income), Net | ||||
Disclosures by disposal group | ||||
Loss related to impairment | $ 12.9 | $ 12.9 | ||
Latex Binders Segment | Other Expense (Income), Net | ||||
Disclosures by disposal group | ||||
Loss related to impairment | 4 | 4 | ||
Performance Plastics Segment [Member] | Other Expense (Income), Net | ||||
Disclosures by disposal group | ||||
Loss related to impairment | 8.6 | 8.6 | ||
Corporate Unallocated [Member] | Other Expense (Income), Net | ||||
Disclosures by disposal group | ||||
Loss related to impairment | $ 0.3 | $ 0.3 |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Reporting to Consolidated (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Jan. 31, 2017 | Dec. 31, 2016USD ($) | Oct. 01, 2016segment | |
Segment Reporting Information [Line Items] | |||||||
Number of new segments from split | segment | 3 | ||||||
Number of joint ventures | item | 2 | 2 | |||||
Sales to external customers | $ 1,145,199 | $ 969,694 | $ 2,249,689 | $ 1,863,778 | |||
Equity in earnings (losses) of unconsolidated affiliates | 29,927 | 38,602 | 49,222 | 73,628 | |||
Adjusted EBITDA | 147,792 | 203,523 | 356,994 | 371,965 | |||
Investment in unconsolidated affiliates | 153,077 | 190,314 | 153,077 | 190,314 | $ 191,418 | ||
Depreciation and amortization | $ 26,324 | 24,853 | $ 51,044 | 47,973 | |||
Americas Styrenics | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership underlying net assets | 50.00% | 50.00% | 50.00% | ||||
Investment in unconsolidated affiliates | $ 153,100 | $ 153,100 | $ 149,700 | ||||
Sumika Styron Polycarbonate | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership underlying net assets | 50.00% | ||||||
Investment in unconsolidated affiliates | 0 | 0 | $ 41,800 | ||||
Corporate Unallocated [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation and amortization | 2,187 | 1,790 | 4,321 | 2,593 | |||
Latex Binders Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 291,530 | 232,471 | 580,461 | 441,952 | |||
Adjusted EBITDA | 36,070 | 21,461 | 72,885 | 40,228 | |||
Depreciation and amortization | 5,761 | 5,881 | 11,424 | 12,161 | |||
Synthetic Rubber Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 174,009 | 111,391 | 337,371 | 213,588 | |||
Adjusted EBITDA | 27,689 | 30,216 | 73,959 | 53,295 | |||
Depreciation and amortization | 8,688 | 8,892 | 17,067 | 16,935 | |||
Performance Plastics Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 190,173 | 183,891 | 374,724 | 352,520 | |||
Adjusted EBITDA | 23,489 | 38,472 | 50,364 | 73,558 | |||
Depreciation and amortization | 2,466 | 1,589 | 4,844 | 3,133 | |||
Basic Plastics Segment [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 382,460 | 363,325 | 763,210 | 705,954 | |||
Equity in earnings (losses) of unconsolidated affiliates | 926 | 810 | 3,019 | ||||
Adjusted EBITDA | 31,768 | 43,150 | 70,629 | 80,917 | |||
Investment in unconsolidated affiliates | 35,842 | 35,842 | |||||
Depreciation and amortization | 4,130 | 3,941 | 7,820 | 7,525 | |||
Basic Plastics Segment [Member] | Sumika Styron Polycarbonate | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership underlying net assets | 50.00% | ||||||
Feedstocks [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales to external customers | 107,027 | 78,616 | 193,923 | 149,764 | |||
Adjusted EBITDA | (1,151) | 32,548 | 40,745 | 53,358 | |||
Depreciation and amortization | 3,092 | 2,760 | 5,568 | 5,626 | |||
Americas Styrenics [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity in earnings (losses) of unconsolidated affiliates | 29,927 | 37,676 | 48,412 | 70,609 | |||
Adjusted EBITDA | 29,927 | 37,676 | 48,412 | 70,609 | |||
Investment in unconsolidated affiliates | $ 153,077 | $ 154,472 | $ 153,077 | $ 154,472 | |||
Americas Styrenics [Member] | Americas Styrenics | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of ownership underlying net assets | 50.00% | 50.00% |
Segments - Recon. of Net Income
Segments - Recon. of Net Income to Segment Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income before income taxes | $ 78,959 | $ 124,404 | $ 225,553 | $ 223,051 |
Interest expense, net | (18,719) | (18,814) | (36,919) | (37,710) |
Depreciation and amortization | 26,324 | 24,853 | 51,044 | 47,973 |
Corporate Unallocated | 21,559 | 21,153 | 49,024 | 46,370 |
Adjusted EBITDA addbacks | 2,231 | 14,299 | (5,546) | 16,861 |
Adjusted EBITDA | 147,792 | 203,523 | 356,994 | 371,965 |
Net (gain) loss on disposition of businesses and assets | 12,900 | (9,900) | 12,900 | |
Restructuring and other charges | 1,100 | 1,100 | 3,300 | 1,800 |
Acquisition transactions and integration costs | 1,100 | 1,100 | ||
Other items | 300 | 2,200 | ||
Operating Segments [Member] | ||||
Income before income taxes | 78,959 | 124,404 | 225,553 | 223,051 |
Corporate Unallocated [Member] | ||||
Interest expense, net | (18,719) | (18,814) | (36,919) | (37,710) |
Depreciation and amortization | $ 2,187 | $ 1,790 | $ 4,321 | $ 2,593 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Payments/Deductions | $ (7,050) | |||
Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | $ 2,503 | 2,503 | ||
Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 21,344 | 21,344 | ||
Asset Impairment And Accelerated Depreciation [Member] | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 1,131 | 1,131 | ||
Asset Impairment And Accelerated Depreciation [Member] | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 14,345 | 14,345 | ||
Accelerated Depreciation On Related Assets [Member] | Terneuzen Plant Modernization | ||||
Restructuring Reserve [Roll Forward] | ||||
Expected restructuring charges | 2,400 | 2,400 | ||
Employee Termination Benefit Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Payments/Deductions | (5,563) | |||
Employee Termination Benefit Charges | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 156 | 156 | ||
Employee Termination Benefit Charges | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 4,990 | 4,990 | ||
Restructuring Reserve [Roll Forward] | ||||
Expected restructuring charges | 400 | 400 | ||
Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Payments/Deductions | (127) | |||
Contract Termination | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 590 | 590 | ||
Contract Termination | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 269 | 269 | ||
Decomissioning and Other Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Payments/Deductions | (1,360) | |||
Decomissioning and Other Charges | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 626 | 626 | ||
Restructuring Reserve [Roll Forward] | ||||
Expected restructuring charges | 1,300 | 1,300 | ||
Decomissioning and Other Charges | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative life-to-date charges | 1,740 | 1,740 | ||
Accrued Expenses And Other Current Liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued charges/Balance at beginning of period | 5,290 | |||
Accrued charges/Balance at end of period | 2,292 | 2,292 | ||
Accrued Expenses And Other Current Liabilities | Employee Termination Benefit Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued charges/Balance at beginning of period | 5,021 | |||
Accrued charges/Balance at end of period | 1,560 | 1,560 | ||
Accrued Expenses And Other Current Liabilities | Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued charges/Balance at beginning of period | 269 | |||
Accrued charges/Balance at end of period | 732 | 732 | ||
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,764 | $ 1,101 | 4,462 | $ 2,233 |
Restructuring Reserve [Roll Forward] | ||||
Expenses | 4,052 | |||
Selling, General and Administrative Expenses | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 730 | 1,877 | ||
Selling, General and Administrative Expenses | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 685 | 1,421 | ||
Selling, General and Administrative Expenses | Other Restructurings | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 349 | $ 1,101 | 1,164 | $ 2,233 |
Selling, General and Administrative Expenses | Asset Impairment And Accelerated Depreciation [Member] | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 574 | 1,131 | ||
Selling, General and Administrative Expenses | Employee Termination Benefit Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Expenses | 2,102 | |||
Selling, General and Administrative Expenses | Employee Termination Benefit Charges | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 156 | 156 | ||
Selling, General and Administrative Expenses | Employee Termination Benefit Charges | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 206 | 358 | ||
Selling, General and Administrative Expenses | Contract Termination | ||||
Restructuring Reserve [Roll Forward] | ||||
Expenses | 590 | |||
Selling, General and Administrative Expenses | Contract Termination | Terneuzen Plant Modernization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 590 | |||
Selling, General and Administrative Expenses | Decomissioning and Other Charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Expenses | 1,360 | |||
Selling, General and Administrative Expenses | Decomissioning and Other Charges | Livorno Plant Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 479 | $ 1,063 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Loss) - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance | $ 445,053 | $ 389,014 | ||
Balance | $ 560,273 | $ 463,413 | 560,273 | 463,413 |
Cumulative Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance | (114,721) | (95,697) | (118,922) | (109,120) |
Other comprehensive income (loss) | 18,974 | (11,005) | 23,175 | 2,418 |
Balance | (95,747) | (106,702) | (95,747) | (106,702) |
Pension & Other Postretirement Benefit Plans, Net | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance | (62,128) | (46,426) | (63,504) | (46,166) |
Other comprehensive income (loss) | (800) | |||
Amounts reclassified from AOCI to net income | 796 | 539 | 2,172 | 1,079 |
Balance | (61,332) | (45,887) | (61,332) | (45,887) |
Foreign Exchange Cash Flow Hedges, Net | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance | 7,462 | (1,856) | 12,272 | 5,569 |
Other comprehensive income (loss) | (11,957) | 5,294 | (14,316) | (1,026) |
Amounts reclassified from AOCI to net income | (1,009) | 735 | (3,460) | (370) |
Balance | (5,504) | 4,173 | (5,504) | 4,173 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance | (169,387) | (143,979) | (170,154) | (149,717) |
Other comprehensive income (loss) | 7,017 | (5,711) | 8,859 | 592 |
Amounts reclassified from AOCI to net income | (213) | 1,274 | (1,288) | 709 |
Balance | $ (162,583) | $ (148,416) | $ (162,583) | $ (148,416) |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Loss) - Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net settlement and curtailment loss | $ 129 | |||
Income before income taxes | $ 78,959 | $ 124,404 | 225,553 | $ 223,051 |
Tax effect | (18,800) | (28,600) | (48,100) | (50,500) |
Net income (loss) | 60,159 | 95,804 | 177,453 | 172,551 |
Cumulative Translation Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | (1,009) | 735 | ||
Cumulative Translation Adjustment | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | (3,460) | (370) | ||
Pension & Other Postretirement Benefit Plans, Net | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | 1,157 | 798 | ||
Tax effect | (361) | (259) | ||
Net income (loss) | 796 | 539 | ||
Pension & Other Postretirement Benefit Plans, Net | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net settlement and curtailment loss | 648 | |||
Income before income taxes | 2,935 | 1,599 | ||
Tax effect | (763) | (520) | ||
Net income (loss) | 2,172 | 1,079 | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior service credit | (456) | (467) | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior service credit | (902) | (920) | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net actuarial loss | 1,613 | 1,265 | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net actuarial loss | 3,189 | 2,519 | ||
Foreign Exchange Cash Flow Hedges, Net | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (1,009) | 735 | ||
Net income (loss) | $ (1,009) | $ 735 | ||
Foreign Exchange Cash Flow Hedges, Net | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before income taxes | (3,460) | (370) | ||
Net income (loss) | $ (3,460) | $ (370) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings: | ||||
Net income (loss) | $ 60,159 | $ 95,804 | $ 177,453 | $ 172,551 |
Shares: | ||||
Weighted average ordinary shares outstanding | 43,902 | 46,952 | 43,979 | 47,803 |
Dilutive effect of RSUs and option awards | 1,093 | 905 | 1,186 | 751 |
Diluted weighted average ordinary shares outstanding | 44,995 | 47,857 | 45,165 | 48,554 |
Income (loss) per share: | ||||
Income per share- basic | $ 1.37 | $ 2.04 | $ 4.03 | $ 3.61 |
Income per share- diluted | $ 1.34 | $ 2 | $ 3.93 | $ 3.55 |
Anti-dilutive shares excluded | 300 | 0 | 200 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 10, 2017USD ($) |
Subsequent Event [Member] | API Applicazioni Plastiche Industriali S.p.A. [Member] | |
Subsequent Event | |
Purchase price, net of cash acquired | $ 83.8 |