Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 15, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36473 | ||
Entity Registrant Name | Trinseo PLC | ||
Entity Incorporation, State or Country Code | N4 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 1000 Chesterbrook Boulevard, Suite 300 | ||
Entity Address, Address Line Two | Berwyn, PA 19312 | ||
Entity Address, City or Town | Berwyn | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19312 | ||
City Area Code | 610 | ||
Local Phone Number | 240-3200 | ||
Title of 12(b) Security | Ordinary Shares, par value $0.01 per share | ||
Trading Symbol | TSE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,311,189,130 | ||
Entity Common Stock, Shares Outstanding | 37,046,528 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001519061 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Philadelphia, Pennsylvania |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 573 | $ 588.7 |
Accounts receivable, net of allowance | 740.2 | 529.2 |
Inventories | 621 | 324.1 |
Other current assets | 44.3 | 15.1 |
Current assets held for sale | 60 | |
Total current assets | 1,978.5 | 1,517.1 |
Investments in unconsolidated affiliates | 247.8 | 240.1 |
Property, plant and equipment, net | 719 | 431.1 |
Other assets | ||
Goodwill | 710.1 | 62.1 |
Other intangible assets, net | 823.8 | 162.6 |
Right of use assets - operating, net | 85.3 | 77.8 |
Deferred income tax assets | 77.6 | 90.2 |
Deferred charges and other assets | 70.1 | 36 |
Noncurrent assets held for sale | 228.2 | |
Total other assets | 1,766.9 | 656.9 |
Total assets | 4,712.2 | 2,845.2 |
Current liabilities | ||
Short-term borrowings and current portion of long-term debt | 18.5 | 12.2 |
Accounts payable | 590.3 | 355.4 |
Current lease liabilities - operating | 18.4 | 15.5 |
Income taxes payable | 52.1 | 10 |
Accrued expenses and other current liabilities | 235.1 | 139.8 |
Current liabilities held for sale | 0.4 | |
Total current liabilities | 914.4 | 533.3 |
Noncurrent liabilities | ||
Long-term debt, net of unamortized deferred financing fees | 2,305.6 | 1,158.1 |
Noncurrent lease liabilities - operating | 69.2 | 65.5 |
Deferred income tax liabilities | 103.2 | 60.7 |
Other noncurrent obligations | 306.7 | 395 |
Noncurrent liabilities held for sale | 42.3 | |
Total noncurrent liabilities | 2,784.7 | 1,721.6 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity | ||
Ordinary shares value | 0.4 | 0.5 |
Additional paid-in-capital | 468.1 | 579.6 |
Treasury shares, at cost (December 31, 2021: 1.0 shares; December 31, 2020: 10.4 shares) | (50) | (542.9) |
Retained earnings | 741.8 | 739.2 |
Accumulated other comprehensive loss | (147.2) | (186.1) |
Total shareholders' equity | 1,013.1 | 590.3 |
Total liabilities and shareholders' equity | $ 4,712.2 | $ 2,845.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) shares in Thousands | Dec. 31, 2021$ / sharesshares | Dec. 31, 2021€ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2020€ / sharesshares |
Ordinary shares, nominal value | $ / shares | $ 0.01 | $ 0.01 | ||
Ordinary shares, shares authorized | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |
Ordinary shares, shares issued | 38,900 | 38,900 | 48,800 | 48,800 |
Ordinary shares, shares outstanding | 37,900 | 37,900 | 38,400 | 38,400 |
Treasury stock, shares | 1,000 | 1,000 | 10,400 | 10,400 |
Preferred stock, par value | € / shares | € 0.01 | € 0.01 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 | 0 |
Deferred Ordinary Shares | ||||
Ordinary shares, nominal value | € / shares | € 1 | € 1 | ||
Ordinary shares, shares authorized | 25 | 25 | 25 | 25 |
Ordinary shares, shares issued | 25 | 25 | 0 | 0 |
Ordinary shares, shares outstanding | 25 | 25 | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Consolidated Statements of Operations | |||
Net sales | $ 4,827.5 | $ 2,744.6 | $ 3,373.9 |
Cost of sales | 4,128.6 | 2,423.5 | 3,073.5 |
Gross profit | 698.9 | 321.1 | 300.4 |
Selling, general and administrative expenses | 323.4 | 227.5 | 276.9 |
Equity in earnings of unconsolidated affiliates | 92.7 | 67 | 119 |
Impairment charges | 6.8 | 11 | |
Operating income | 461.4 | 149.6 | 142.5 |
Interest expense, net | 79.4 | 43.6 | 39.3 |
Acquisition purchase price hedge loss (gain) | 22 | (7.3) | |
Other expense, net | 9.5 | 7.9 | 3.4 |
Income from continuing operations before income taxes | 350.5 | 105.4 | 99.8 |
Provision for income taxes | 70.9 | 42.7 | 12.7 |
Net income from continuing operations | 279.6 | 62.7 | 87.1 |
Net income (loss) from discontinued operations | 160.4 | (54.8) | 4.9 |
Net income | $ 440 | $ 7.9 | $ 92 |
Earnings Per Share | |||
Weighted average shares- basic | 38.7 | 38.3 | 40.3 |
Net income (loss) per share- basic, continuing operations | $ 7.22 | $ 1.63 | $ 2.16 |
Net income (loss) per share- basic, discontinued operations | 4.15 | (1.43) | 0.12 |
Net income per share- basic | $ 11.37 | $ 0.20 | $ 2.28 |
Weighted average shares- diluted | 39.6 | 38.6 | 40.7 |
Net income (loss) per share- diluted, continuing operations | $ 7.07 | $ 1.62 | $ 2.14 |
Net income (loss) per share- diluted, discontinued operations | 4.05 | (1.42) | 0.12 |
Net income per share- diluted | $ 11.12 | $ 0.20 | $ 2.26 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | |||
Net income | $ 440 | $ 7.9 | $ 92 |
Other comprehensive income (loss), net of tax | |||
Cumulative translation adjustments | (5.3) | (2.3) | 5.1 |
Net gain (loss) on cash flow hedges | 5.9 | (5.8) | (8.3) |
Pension and other postretirement benefit plans: | |||
Prior service credit arising during period (net of tax of $0.3, $0.0, and $0.0) | 2.2 | ||
Net gain (loss) arising during period (net of tax (benefit) of $8.9, $(7.3), and $(8.9)) | 26.2 | (18.3) | (19) |
Amounts reclassified from accumulated other comprehensive income | 9.9 | 2.7 | 2.1 |
Total other comprehensive income (loss), net of tax | 38.9 | (23.7) | (20.1) |
Comprehensive income (loss) | $ 478.9 | $ (15.8) | $ 71.9 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | |||
Prior service credit arising during period, tax | $ 0.3 | $ 0 | $ 0 |
Net gain (loss) during period, tax (benefit) expense | $ 8.9 | $ (7.3) | $ (8.9) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Ordinary Shares | Treasury Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total |
Balance at beginning of period at Dec. 31, 2018 | $ 0.5 | $ (418.1) | $ 575.4 | $ (142.3) | $ 753.2 | $ 768.7 |
Balance at beginning of period, shares at Dec. 31, 2018 | 41.6 | 7.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 92 | 92 | ||||
Other comprehensive income (loss) | (20.1) | (20.1) | ||||
Share-based compensation | $ 9.6 | (0.7) | 8.9 | |||
Share-based compensation, shares | 0.2 | (0.2) | ||||
Purchase of treasury shares | $ (116.4) | (116.4) | ||||
Purchase of treasury shares, shares | (2.8) | 2.8 | ||||
Dividends on ordinary shares | (64.2) | (64.2) | ||||
Balance at end of period at Dec. 31, 2019 | $ 0.5 | $ (524.9) | 574.7 | (162.4) | 781 | 668.9 |
Balance at end of period, shares at Dec. 31, 2019 | 39 | 9.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7.9 | 7.9 | ||||
Other comprehensive income (loss) | (23.7) | (23.7) | ||||
Share-based compensation | $ 7 | 4.9 | 11.9 | |||
Share-based compensation, shares | 0.2 | (0.2) | ||||
Purchase of treasury shares | $ (25) | (25) | ||||
Purchase of treasury shares, shares | (0.8) | 0.8 | ||||
Dividends on ordinary shares | (49.7) | (49.7) | ||||
Balance at end of period at Dec. 31, 2020 | $ 0.5 | $ (542.9) | 579.6 | (186.1) | 739.2 | $ 590.3 |
Balance at end of period, shares at Dec. 31, 2020 | 38.4 | 10.4 | 38.4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 440 | $ 440 | ||||
Other comprehensive income (loss) | 38.9 | 38.9 | ||||
Cancellation of treasury shares | $ (0.1) | $ 524.8 | (118.7) | (406) | ||
Cancellation of treasury shares, shares | (9.9) | |||||
Share-based compensation | $ 18.1 | 7.2 | 25.3 | |||
Share-based compensation, shares | 0.5 | (0.5) | ||||
Purchase of treasury shares | $ (50) | (50) | ||||
Purchase of treasury shares, shares | (1) | 1 | ||||
Dividends on ordinary shares | (31.4) | (31.4) | ||||
Balance at end of period at Dec. 31, 2021 | $ 0.4 | $ (50) | $ 468.1 | $ (147.2) | $ 741.8 | $ 1,013.1 |
Balance at end of period, shares at Dec. 31, 2021 | 37.9 | 1 | 37.9 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical)) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Consolidated Statement of Stockholders' Equity | |||
Dividends on ordinary shares | $ 0.80 | $ 1.28 | $ 1.60 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 440 | $ 7.9 | $ 92 |
Less: Net income (loss) from discontinued operations | 160.4 | (54.8) | 4.9 |
Net income from continuing operations | 279.6 | 62.7 | 87.1 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities - continuing operations | |||
Depreciation and amortization | 167.5 | 92.6 | 91.5 |
Amortization of deferred financing fees, issuance discount, and excluded component of hedging instruments | 7.7 | 4 | (0.5) |
Deferred income tax | (2.1) | 7.9 | (37.4) |
Share-based compensation expense | 15.2 | 11.1 | 13 |
Earnings of unconsolidated affiliates, net of dividends | (7.7) | (52) | (9) |
Unrealized net (gain) loss on foreign exchange forward contracts | (8.4) | 2.9 | 3 |
Acquisition purchase price hedge (gain) loss | 22 | (7.3) | |
Pension curtailment and settlement (gain) loss | (1.2) | 0.7 | 0.8 |
Gain on sale of businesses and other assets | (0.4) | (0.4) | (0.7) |
Asset impairment charges or write-offs | 6.8 | 11 | 0.2 |
Gain on bargain purchase | (4.7) | ||
Changes in assets and liabilities | |||
Accounts receivable | (214.6) | 57.4 | 66.6 |
Inventories | (214.1) | 47.7 | 43.1 |
Accounts payable and other current liabilities | 313.1 | (3.1) | (2.8) |
Income taxes payable | 42.4 | 6 | (10.9) |
Other assets, net | (22.1) | (0.1) | 6.8 |
Other liabilities, net | 72.3 | (24.3) | (4.2) |
Cash provided by operating activities, continuing operations | 456 | 216.8 | 241.9 |
Cash provided by (used in) operating activities, discontinued operations | (3.3) | 38.6 | 80.6 |
Cash provided by operating activities | 452.7 | 255.4 | 322.5 |
Cash flows from investing activities | |||
Capital expenditures | (117.7) | (66.6) | (84) |
Cash received (paid) for asset or business acquisitions, net of cash acquired ($12.1, $0.0, and $0.0) | (1,804) | 0.1 | 0.1 |
Proceeds from the sale of businesses and other assets | 0.2 | 11.9 | 0.7 |
Proceeds from (payments for) the settlement of hedging instruments | (14.7) | 51.6 | |
Cash used in investing activities - continuing operations | (1,936.2) | (3) | (83.2) |
Cash provided by (used in) investing activities - discontinued operations | 396.5 | (21.2) | (26.1) |
Cash used in investing activities | (1,539.7) | (24.2) | (109.3) |
Cash flows from financing activities | |||
Deferred financing fees | (35.4) | ||
Short-term borrowings, net | (14.6) | (12.6) | (10.6) |
Purchase of treasury shares | (48.1) | (25) | (119.7) |
Dividends paid | (21.9) | (61.8) | (65.7) |
Proceeds from exercise of option awards | 11 | 2.6 | 0.9 |
Withholding taxes paid on restricted share units | (0.9) | (0.6) | (4.6) |
Net proceeds from issuance of Term Loan B | 746.3 | ||
Repayments of Term Loans | (10.7) | (6.9) | (7) |
Net proceeds from issuance of Senior Notes | 450 | ||
Proceeds from draw on 2022 Revolving Facility | 100 | ||
Repayments of Revolving Facility | (100) | ||
Proceeds from draw on Accounts Receivable Securitization Facility | 150 | ||
Repayments of Accounts Receivable Securitization Facility | (150) | ||
Cash provided by (used in) financing activities | 1,075.7 | (104.3) | (206.7) |
Effect of exchange rates on cash | (4.4) | 4.4 | (1.4) |
Net change in cash, cash equivalents and restricted cash | (15.7) | 131.3 | 5.1 |
Cash, cash equivalents and restricted cash, beginning of period | 588.7 | 457.4 | 452.3 |
Cash, cash equivalents and restricted cash, end of period | 573 | 588.7 | 457.4 |
Less: Restricted cash | $ 0 | $ 0 | $ (1.2) |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | Other Assets, Current | Other Assets, Current | Other Assets, Current |
Cash and cash equivalents, end of period | $ 573 | $ 588.7 | $ 456.2 |
Supplemental disclosure of cash flow information | |||
Net cash received | 12.1 | 0 | 0 |
Cash paid for income taxes, net of refunds | 37.2 | 10.3 | 66.3 |
Cash paid for interest, net of amounts capitalized | 62.4 | 39.5 | 39.7 |
Accrual for property, plant and equipment | $ 14.3 | $ 6.6 | $ 11.9 |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Business Activities | |
Organization and Business Activities | NOTE 1—ORGANIZATION AND BUSINESS ACTIVITIES Organization Trinseo PLC (“Trinseo,” and together with its subsidiaries, the “Company”) is a public limited company existing under the laws of Ireland. On October 8, 2021, the Company’s former publicly-traded parent entity, Trinseo S.A., was merged with and into Trinseo PLC, with Trinseo PLC as the surviving entity (the “Redomiciliation”). The Redomiciliation was completed pursuant to the Common Draft Terms of Merger dated as of April 23, 2021 and was approved by shareholders at Trinseo S.A.’s 2021 annual general meeting held on June 10, 2021. As a result of the Redomiciliation, all of Trinseo S.A.’s outstanding ordinary shares, excluding treasury shares, were exchanged on a one-for-one basis for newly issued ordinary shares, par value $0.01 per share, of Trinseo PLC. Prior to the formation of Trinseo S.A., the Company’s business was wholly owned by the Dow Chemical Company (together with its affiliates, “Dow”). In 2010, the Styron business was sold by Dow to investment funds advised or managed by affiliates of Bain Capital Partners, LP (the “Dow Separation”). In 2016, Bain Capital fully divested its ownership in the Company. Business Activities The Company is a leading global materials company and manufacturer of plastics and latex binders, with a focus on delivering innovative, sustainable, and value-creating products that are intrinsic to daily life. The Company has leading market positions in many of the markets in which it competes. The Company’s products are incorporated into a wide range of its customers’ products throughout the world, including products for automotive applications, consumer electronics, appliances, medical devices, packaging, footwear, carpet, paper and board, and building and construction applications, among others. The Company’s operations are located in Europe, North America, and Asia Pacific, supplemented by Americas Styrenics, a styrenics joint venture with Chevron Phillips Chemical Company LP. Refer to Note 6 for further information regarding the Company’s investment in Americas Styrenics. The Company has significant manufacturing and production operations around the world, which allow service to its global customer base. As of December 31, 2021, the Company’s production facilities included 40 manufacturing plants (which included a total of 81 production units) at 33 sites across 15 countries, including its joint venture. Additionally, as of December 31, 2021, the Company operated 11 research and development (“R&D”) facilities globally, including mini plants, development centers, and pilot coaters. The Company’s Chief Executive Officer, who is the chief operating decision maker, manages the Company’s operations under six segments, Engineered Materials, Latex Binders, Base Plastics, Polystyrene, Feedstocks, and Americas Styrenics, as described in Note 20. Beginning in the second quarter of 2021, the Company reported the results of its Synthetic Rubber business as discontinued operations in the consolidated statements of operations for all periods presented, and therefore it is no longer presented as a separate reportable segment. The sale of the Synthetic Rubber business was completed on December 1, 2021. Refer to Note 5 for further information. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Business Activities | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements as of December 31, 2021 and 2020 and for each of the three years in the period ended December 31, 2021 are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements of the Company contain the accounts of all entities that are controlled and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. A VIE is defined as a legal entity that has equity investors that do not have sufficient equity at risk for the entity to support its activities without additional subordinated financial support or, as a group, the holders of the equity at risk lack (i) the power to direct the entity’s activities or (ii) the obligation to absorb the expected losses or the right to receive the expected residual returns of the entity. A VIE is required to be consolidated by a company if that company is the primary beneficiary. Refer to Note 12 for further discussion of the Company’s Accounts Receivable Securitization Facility, which qualifies as a VIE and is consolidated within the Company’s financial statements. All intercompany balances and transactions are eliminated. Joint ventures over which the Company has the ability to exercise significant influence that are not consolidated are accounted for by the equity method. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications pertain primarily to the Company’s entry into an agreement during the second quarter of 2021 to sell its Synthetic Rubber business, as a result of which the Company reclassified its Synthetic Rubber assets and liabilities as held-for-sale and reclassified the operating results of its Synthetic Rubber business, net of taxes, as discontinued operations for all periods presented. Throughout this Annual Report, unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Refer to Note 5 for further information. Additionally, the results herein reflect the impacts of the equity transactions completed in connection with the Redomiciliation on October 8, 2021, described in Note 1 above, including the exchange of Trinseo S.A.’s outstanding ordinary shares on a one-for-one basis for newly issued ordinary shares of Trinseo PLC and the cancellation of Trinseo S.A.’s treasury shares. Use of Estimates in Financial Statement Preparation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual amounts could differ from these estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company uses major financial institutions with high credit ratings to engage in transactions involving cash equivalents. The Company minimizes credit risk in its receivables by selling products to a diversified portfolio of customers in a variety of markets located throughout the world. The Company performs ongoing evaluations of its customers’ credit and generally does not require collateral. The Company maintains an allowance for doubtful accounts for losses resulting from the inability of specific customers to meet their financial obligations, representing its best estimate of probable credit losses in existing trade accounts receivable. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on historical experience. Financial Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued and other current liabilities, approximate fair value due to their generally short maturities. The estimated fair values of the Company’s 2028 Term Loan B, 2024 Term Loan B, 2029 Senior Notes, and 2025 Senior Notes and, when outstanding, borrowings under its 2026 Revolving Facility and Accounts Receivable Securitization Facility (all of which are defined in Note 12) are determined using Level 2 inputs within the fair value hierarchy. The carrying amounts of borrowings under the 2026 Revolving Facility and Accounts Receivable Securitization Facility approximate fair value as these borrowings bear interest based on prevailing variable market rates. At times, the Company manages its exposure to changes in foreign currency exchange rates, where possible, by entering into foreign exchange forward contracts. Additionally, the Company manages its exposure to variability in interest payments associated with its variable rate debt by entering into interest rate swap agreements. When outstanding, all derivatives, whether designated in hedging relationships or not, are required to be recorded on the consolidated balance sheets at fair value. The fair value of the derivatives is determined from sources independent of the Company, including the financial institutions which are party to the derivative instruments. The fair value of derivatives also considers the credit default risk of the parties involved. If the derivative is not designated for hedge accounting treatment, changes in the fair value of the underlying instrument and settlements are recognized in earnings. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative and the hedged item are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative will be recorded in accumulated other comprehensive income or loss (“AOCI”) and will be recognized in the consolidated statements of operations when the hedged item affects earnings or it becomes probable that the forecasted transaction will not occur. If the derivative is designated as a net investment hedge, to the extent it is deemed to be effective, the change in the fair value of the derivative will be recorded within the cumulative translation adjustment account as a component of AOCI and the resulting gains or losses will be recognized in the consolidated statements of operations when the hedged net investment is either sold or substantially liquidated. As of December 31, 2021 and 2020, the Company had certain foreign exchange forward contracts outstanding that were not designated for hedge accounting treatment and certain foreign exchange forward contracts and interest rate swap agreements that were designated as cash flow hedges. As of December 31, 2021 and 2020, the Company also had certain fixed-for-fixed cross currency swaps (“CCS”) outstanding, which swap U.S. dollar principal and interest payments on the Company’s 2025 Senior Notes for euro-denominated payments. The Company’s CCS have been designated as a hedge of its net investment in certain European subsidiaries. Forward contracts, interest rate swaps, and cross currency swaps 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. The Company records these derivative instruments on a net basis, by counterparty within the consolidated balance sheets. The Company presents the cash receipts and payments from hedging activities in the same category as the cash flows from the items subject to hedging relationships. As the items subject to economic hedging relationships are the Company’s operating assets and liabilities, the related cash flows are classified within operating activities in the consolidated statements of cash flows. Refer to Notes 13 and 14 for further information on the Company’s derivative instruments and their fair value measurements. Foreign Currency Translation For the majority of the Company’s subsidiaries, the local currency has been identified as the functional currency. For remaining subsidiaries, the U.S. dollar has been identified as the functional currency due to the significant influence of the U.S. dollar on their operations. Gains and losses resulting from the translation of various functional currencies into U.S. dollars are recorded within the cumulative translation adjustment account as a component of AOCI in the consolidated balance sheets. The Company translates asset and liability balances at exchange rates in effect at the end of the period and income and expense transactions at the average exchange rates in effect during the period. Gains and losses resulting from foreign currency transactions are recorded within “Other expense, net” in the consolidated statements of operations. For the years ended December 31, 2021, 2020, and 2019, the Company recognized net foreign exchange transaction gains (losses) of $(61.9) million, $24.4 million, and $(6.4) million, respectively. These amounts exclude the impacts of foreign exchange forward contracts discussed above. Environmental Matters Accruals for environmental matters are recorded when it is considered probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress, or as additional technical or legal information become available. Accruals for environmental liabilities are recorded within “Other noncurrent obligations” in the consolidated balance sheets at undiscounted amounts. As of December 31, 2021, there was $4.4 Environmental costs are capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction or normal operation of a long-lived asset. Any costs related to environmental contamination treatment and clean-ups are charged to expense. Cash and Cash Equivalents Cash and cash equivalents generally include time deposits or highly liquid investments with original maturities of three months or less and no material liquidity fee or redemption gate restrictions. Inventories Inventories are stated at the lower of cost or net realizable value (“NRV”), with cost being determined on the first-in, first-out (“FIFO”) method. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal, and transportation. The Company periodically reviews its inventory for excess or obsolete inventory and will write-down the excess or obsolete inventory value to its NRV, if applicable. Property, Plant and Equipment Property, plant and equipment are carried at cost less accumulated depreciation and impairment, if applicable, and are depreciated over their estimated useful lives using the straight-line method. Expenditures for maintenance and repairs are recorded in the consolidated statements of operations as incurred. Expenditures that significantly increase asset value, extend useful asset lives or adapt property to a new or different use are capitalized. These expenditures include planned major maintenance activities, or turnaround activities, that increase the output of manufacturing facilities or improve production efficiency as compared to pre-turnaround operations. As of December 31, 2021 and 2020, $28.0 million and $29.1 million, respectively, of the Company’s net costs related to turnaround activities were capitalized within “Deferred charges and other assets” in the consolidated balance sheets, and are being amortized over the period until the next scheduled turnaround. The Company periodically evaluates actual experience to determine whether events and circumstances have occurred that may warrant revision of the estimated useful lives of property, plant and equipment. Engineering and other costs directly related to the construction of property, plant and equipment are capitalized as construction in progress until construction is complete and such property, plant and equipment is ready and available to perform its specifically assigned function. The Company also capitalizes interest as a component of the cost of capital assets constructed for its own use. Upon retirement or other disposal, the asset cost and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds, is charged or credited to income. Impairment and Disposal of Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on a discounted cash flow analysis utilizing market participant assumptions. Refer to Note 14 for further information on the Company’s impairment charges recorded for the years ended December 31, 2021 and 2020. Long-lived assets to be disposed of by sale are classified as held-for-sale and are reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of in a manner other than by sale are classified as held-and-used until they are disposed. As discussed above in Note 2 – Basis of Presentation and Principles of Consolidation, Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. The Company utilizes a market approach and an income approach (under the discounted cash flow method) to calculate the fair value of its reporting units. When supportable, the Company employs the qualitative assessment of goodwill impairment prescribed by Accounting Standards Codification (“ASC”) 350. The annual impairment assessment is completed using a measurement date of October 1. No goodwill impairment losses were recorded in the years ended December 31, 2021, 2020, and 2019. Finite-lived intangible assets, such as developed technology, customer relationships, tradenames, and computer software for internal use are amortized on a straight-line basis over their estimated useful life and are reviewed for impairment or obsolescence if events or changes in circumstances indicate that their carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. No intangible asset impairment losses were recorded in the years ended December 31, 2021, 2020, and 2019. Acquired developed technology, customer relationships, and tradenames are recorded at fair value upon acquisition and are amortized using the straight-line method over the estimated useful life. The Company determines amortization periods for these assets based on its assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. This includes estimates of expected period of future economic benefit, customer retention rates, and competitive advantage related to existing processes and procedures at the date of acquisition. Significant changes to any of these factors may result in a reduction in the useful life of these assets. Leases The Company accounts for its lease arrangements in accordance with ASC 842, which it adopted effective January 1, 2019 using the modified retrospective approach. The Company has leases for certain of its plant and warehouse sites, office spaces, rail cars, storage facilities, and equipment. The Company determines if an arrangement includes a lease at inception of the contract. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The lease term represents the non-cancelable period of the lease, including any lessee options to renew, extend, or terminate which are considered to be reasonably certain of exercise. As the interest rate implicit in the Company’s lease contract is typically not readily available, the Company uses its incremental borrowing rate based on relevant information available at the lease commencement date to determine the weighted average discount rate used to calculate the net present value of lease payments. The Company recognizes lease expense for fixed lease payments on operating leases on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. For leases across all asset classes in which the Company is a lessee, the Company does not separate non-lease components from lease components. Refer to Note 24 for further information on the Company’s leases. Investments in Unconsolidated Affiliates Investments in unconsolidated affiliates in which the Company has the ability to exercise significant influence (generally, 20% to 50%-owned companies) are accounted for using the equity method. Investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recorded whenever a decline in fair value of an investment in an unconsolidated affiliate below its carrying amount is determined to be other-than-temporary. The Company uses the cumulative earnings approach for presenting distributions received from equity method investees in the consolidated statements of cash flows. Deferred Financing Fees Capitalized fees and costs incurred in connection with the Company’s recognized debt liabilities are presented in the consolidated balance sheets as a direct reduction from the carrying value of those debt liabilities, consistent with debt discounts. Deferred financing fees related to the Company’s revolving debt facilities are included within “Deferred charges and other assets” in the consolidated balance sheets. Deferred financing fees on the Company’s term loan and senior note financing arrangements are amortized using the effective interest method over the term of the respective agreement. Deferred financing fees on the Company’s revolving facilities and the Accounts Receivable Securitization Facility are amortized using the straight-line method over the term of the respective facility. Amortization of deferred financing fees is recorded in “Interest expense, net” within the consolidated statements of operations. Restricted Cash and Cash Equivalents Restrictions on the Company’s cash and cash equivalents are primarily related to customs requirements, and are included within “Other current assets” in the consolidated balance sheets. As of December 31, 2021 and 2020, the Company had no amounts recorded as restricted cash and cash equivalents. Sales For all material contracts with customers, sales are recognized and control is transferred at a point in time when the Company satisfies the performance obligations according to the terms of the contract, and when title and the risk of loss is passed to the customer. Title and risk of loss varies by region and customer and is determined based upon the purchase order received from the customer and the applicable contractual terms or jurisdictional standards. The Company receives cash equal to the invoice price for most product sales, subject to cash sales incentives with certain customers, with payment terms generally ranging from 10 to 90 days (with an approximate weighted average of 55 days as of December 31, 2021), also varying by segment and region. Certain of the Company’s contracts with customers contain multiple performance obligations, most commonly due to the sale of multiple distinct products. The transaction price within these contracts is allocated between these separate and distinct products based on their stand-alone selling prices, as defined within the contract. The Company’s products are typically sold at observable stand-alone sales values, which are used to determine the estimated stand-alone selling price. The stand-alone selling prices of the Company’s products are generally based, in part, on the current or forecasted costs of key raw materials, but are often subject to a predetermined lag period for the pass through of these costs. As such, contracts with customers typically include provisions that allow for the changes in stand-alone selling prices to reflect the pass through of changes in raw material costs, often using pricing formulas that utilize commodity indices. In cases where the Company’s transaction price is considered variable at the point of revenue recognition, the ‘most likely amount’ method is used to estimate the effect of any related uncertainty. In formulating this estimate, the Company considers all historical, current, and forecasted information that is reasonably available to identify a reasonable number of possible consideration amounts. Once the transaction price, including impacts of variable consideration, is estimated, revenue is recognized only to the extent that it is probable that a subsequent change in the estimate would not result in a significant revenue reversal. Furthermore, if the Company is not able to rely on observable stand-alone selling prices, the ‘expected cost plus a margin approach’ is utilized to estimate the stand-alone selling price of each performance obligation, primarily utilizing historical experience. During the year ended December 31, 2021, the impact of recognizing changes in selling prices related to prior periods was immaterial. Standard terms of delivery are included in contracts of sale, order confirmation documents, and invoices. Sales and other taxes that the Company collects concurrent with sales-producing activities are excluded from “Net sales” and included as a component of “Cost of sales” in the consolidated statements of operations. Additionally, freight and any directly related costs of transporting finished products to customers are accounted for as fulfillment costs and are also included within “Cost of sales.” The amount of net sales recognized varies with changes in returns, rebates, cash sales incentives, and other allowances offered to customers based on the Company's experience. For arrangements where the period between customer payment and transfer of goods/services is determined to be one year or less at contract inception, the Company applies the practical expedient exception available under ASC 606 and does not adjust the promised amount of consideration under the contract for the effects of a significant financing component. Additionally, the Company’s incremental costs of obtaining contracts are expensed as incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less, and are included within “Selling, general and administrative expenses” in the consolidated statements of operations, pursuant to the practical expedient in ASC 606. Cost of Sales The Company classifies the costs of manufacturing and distributing its products as cost of sales. Manufacturing costs include raw materials, utilities, packaging, employee salary and benefits, and fixed manufacturing costs associated with production. Fixed manufacturing costs include such items as plant site operating costs and overhead, production planning, depreciation and amortization, repairs and maintenance, environmental, and engineering costs. Distribution costs include shipping and handling costs. Freight and any directly related costs of transporting finished products to customers are also included within cost of sales. As discussed above, inventory costs are recorded within cost of sales utilizing the FIFO method. Selling, General and Administrative Expenses Selling, general and administrative (“SG&A”) expenses are generally charged to expense as incurred. SG&A expenses are the cost of services performed by the marketing and sales functions (including sales managers, field sellers, marketing research, marketing communications and promotion and advertising materials) and by administrative functions (including product management, R&D, business management, customer invoicing, human resources, information technology, legal and finance services, such as accounting and tax). Salary and benefit costs, including share-based compensation, for these sales personnel and administrative staff are included within SG&A expenses. R&D expenses include the cost of services performed by the R&D function, including technical service and development, process research including pilot plant operations, and product development. The Company also includes restructuring charges within SG&A expenses. Total R&D costs included in SG&A expenses were $63.9 million, $42.6 million, and $38.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. The Company expenses promotional and advertising costs as incurred to SG&A expenses. Total promotional and advertising expenses were $1.1 million, $1.3 million, and $1.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. Restructuring charges included within SG&A expenses were $8.6 million, $7.4 million, and $17.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. Refer to Note 21 for further information. Pension and Postretirement Benefits Plans The Company has various defined benefit plans, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company also provides certain health care and life insurance benefits to retired employees in the United States. The U.S.-based plans provide health care benefits, including hospital, physicians’ services, drug and major medical expense coverage, and life insurance benefits. Accounting for defined benefit pension plans and other postretirement benefit plans, and any curtailments and settlements thereof, requires various assumptions, including, but not limited to, discount rates, expected rates of return on plan assets, and future compensation growth rates. The Company evaluates these assumptions at least once each year, or as facts and circumstances dictate, and makes changes as conditions warrant. A settlement is a transaction that is an irrevocable action that relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and that eliminates significant risks related to the obligation and the assets used to effect the settlement. When a settlement occurs, the Company does not record settlement gains or losses during interim periods when the cost of all settlements in a year is less than or equal to the sum of the service cost and interest cost components of net periodic benefit cost for the plan in that year. Income Taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The Company is, or has been, subject to income taxes in Ireland, Luxembourg, the United States and numerous other foreign jurisdictions, and is subject to audit within these jurisdictions. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision is made for income taxes on unremitted earnings of subsidiaries and affiliates, unless such earnings are deemed to be indefinitely invested. The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The current portion of uncertain income taxes positions is recorded in “Income taxes payable,” while the long-term portion is recorded in “Other noncurrent obligations” in the consolidated balance sheets. Share-based Compensation Refer to Note 18 for detailed discussion regarding the Company’s share-based compensation award programs. In connection with the Company’s initial public offering (“IPO”), the Company’s board of directors approved the 2014 Omnibus Plan. Since that time, certain equity grants have been awarded, comprised of restricted share units (“RSUs”), options to purchase shares (“option awards”), and performance share units (“PSUs”). Share-based compensation expense recognized in the consolidated financial statements is based on awards that are expected to vest as of their date of grant. The Company’s policy election is to recognize forfeitures as incurred. Compensation costs for the RSUs are measured at the grant date based on the fair value of the award and are recognized ratably as expense over the applicable vesting term. The fair value of RSUs is equal to the fair market value of the Company’s ordinary shares based on the closing price on the date of grant. Dividend equivalents accumulate on RSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated RSUs vest. Compensation costs for the option awards are measured at the grant date based on the fair value of the award and are recognized as expense over the appropriate service period utilizing graded vesting. The fair value for option awards is computed using the Black-Scholes pricing model, which uses inputs and assumptions determined as of the date of grant. Compensation costs for the PSUs are measured at the grant date based on the fair value of the award, which is computed using a Monte Carlo valuation model, and are recognized ratably as expense over the applicable vesting term. Dividend equivalents accumulate on PSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated PSUs vest. Treasury Shares The Company may, from time to time, repurchase its ordinary shares at prevailing market rates. Share repurchases are recorded at cost in “Treasury shares” within shareholders’ equity in the consolidated balance sheets. It is the Company’s policy that, to the extent authorized by shareholders, as RSUs, PSUs, and option awards vest or are exercised, ordinary shares will be issued from the existing pool of treasury shares on a first-in-first-out basis. Refer to Note 18 for details of vesting for RSUs and PSUs as well as the exercises of option awards. Deferred Ordinary Shares The Company has 0.025 million deferred ordinary shares of €1.00 each at par, which are issued and outstanding as of December 31, 2021 Recent Accounting Guidance In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The amended guidance includes removal of certain exceptions to the general principles of Accounting Standards Codification 740, Income Taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The Company adopted the guidance effective January 1, 2021, noting that adoption did not have a material impact on its consolidated financial statements. |
Net Sales
Net Sales | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | NOTE 3—NET SALES The following table provides disclosure of net sales to external customers by primary geographical market (based on the location where the sales originated), by segment for the years ended December 31, 2021, 2020, and 2019. Prior period amounts in this table have been recast in conjunction with updates for the classification of the Company’s former Synthetic Rubber segment as discontinued operations. Refer to Note 5 for further information. Engineered Latex Base Year Ended Materials Binders Plastics Polystyrene Feedstocks Total December 31, 2021 United States $ 302.1 $ 314.1 $ 298.2 $ — $ 14.3 $ 928.7 Europe 294.9 573.6 942.8 688.7 255.8 2,755.8 Asia-Pacific 151.2 286.6 178.6 430.1 2.3 1,048.8 Rest of World 6.8 9.1 78.3 — — 94.2 Total $ 755.0 $ 1,183.4 $ 1,497.9 $ 1,118.8 $ 272.4 $ 4,827.5 December 31, 2020 United States $ 35.8 $ 219.2 $ 203.3 $ — $ 8.3 $ 466.6 Europe 55.4 340.9 513.7 408.0 135.0 1,453.0 Asia-Pacific 103.3 200.1 136.9 290.9 22.2 753.4 Rest of World 0.4 6.9 64.3 — — 71.6 Total $ 194.9 $ 767.1 $ 918.2 $ 698.9 $ 165.5 $ 2,744.6 December 31, 2019 United States $ 38.2 $ 263.7 $ 267.7 $ — $ 10.7 $ 580.3 Europe 60.3 388.5 675.6 448.8 188.3 1,761.5 Asia-Pacific 111.3 239.3 126.9 360.6 96.5 934.6 Rest of World 0.1 11.3 86.1 — — 97.5 Total $ 209.9 $ 902.8 $ 1,156.3 $ 809.4 $ 295.5 $ 3,373.9 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions | |
Acquisitions | NOTE 4—ACQUISITIONS Acquisition of Aristech Surfaces On September 1, 2021, the Company completed its acquisition of Aristech Surfaces LLC (“Aristech Surfaces”) from SK AA Holdings LLC (“SK AA Holdings”), the sole member of Aristech Surfaces, through purchase of 100% membership interest and intellectual property (the “Aristech Surfaces Acquisition”). Aristech Surfaces is a leading North America manufacturer and global provider of PMMA continuous cast and solid surface sheets, serving the wellness, architectural, transportation and industrial markets, which the Company believes will pair well with its existing Engineered Materials business, inclusive of the PMMA Acquisition completed earlier in 2021, discussed further below. Aristech Surfaces’ products are used for a variety of applications, including the construction of hot tubs, swim spas, counter-tops, signage, bath products and recreational vehicles. The purchase price consideration for the Aristech Surfaces Acquisition amounted to $449.5 million, and was funded using the Company’s available cash and existing credit facilities. Refer to Note 12 for further information on the existing credit facilities used to fund the Aristech Surfaces Acquisition. The Company accounted for the Aristech Surfaces Acquisition as a business combination pursuant to ASC 805. In accordance with ASC 805, fair values are assigned to tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date based on the information that was available as of the acquisition date. The Company believes that the information available provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed for the acquisition, however, preliminary measurements of fair value, including, but not limited to, intangible assets, property, plant and equipment, contingent liabilities, and such changes could be material. The Company expects to finalize the valuation and accounting for the Aristech Surfaces Acquisition as soon as practicable, but no later than one year after the acquisition date. During the measurement period, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date we will revise the preliminary purchase price allocation. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments had been completed on the acquisition date. The impact of all changes that do not qualify as measurement period adjustments will be included in current period earnings. The Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. The Company calculated the fair value of the assets acquired using the income and cost approaches (or a combination thereof). Specifically, the fair value of the customer relationships was estimated using a discounted cash flow valuation method, and the fair value of developed technology was developed using a relief from royalty valuation method. Fair values were determined based on various inputs including estimated future cash flows, discount rates, royalty rates, growth rates, sales projections, customer retention rates, terminal values, replacement costs, anticipated useful lives and depreciation curves. The various inputs used in the valuation require significant management judgment. The table below summarizes the purchase price allocation for the assets acquired and liabilities assumed, based on their relative fair values. During the year ended December 31, 2021, the Company recorded certain measurement period adjustments to reflect facts and circumstances in existence as of the September 1, 2021 acquisition date. These adjustments primarily included a $7.6 million increase to property, plant and equipment, a $5.0 million decrease to other intangible assets, and a resulting $3.2 million decrease to goodwill. September 1, 2021 Cash and cash equivalents $ 1.7 Accounts receivable 26.9 Inventories (1) 30.3 Other current assets 1.6 Property, plant and equipment 82.9 Other intangible assets (2) Customer relationships 140.0 Developed technology 52.5 Trade names 10.0 Other amortizable intangible assets 0.3 Right-of-use assets - operating 2.0 Deferred income tax assets 1.5 Total fair value of assets acquired 349.7 Accounts payable (13.8) Current lease liabilities - operating (0.4) Accrued expenses and other current liabilities (3.1) Noncurrent lease liabilities - operating (1.6) Other noncurrent obligations (1.4) Total fair value of liabilities assumed (20.3) Net identifiable assets acquired 329.4 Purchase price consideration 449.5 Goodwill (3) $ 120.1 (1) Fair value of work-in-process and finished goods inventory acquired included a step-up in the value of approximately $6.9 million, which was fully amortized during the year ended December 31, 2021 within "Cost of sales" on the consolidated statements of operations as the related inventory was sold to customers. (2) The expected weighted average useful life of the acquired intangible assets are 13 years for customer relationships, 11 years for developed technology, and 10 years for trade names and 1 year for other amortizable intangible assets. (3) Goodwill largely consists of strategic and synergistic opportunities resulting from combining Aristech Surfaces with the Company’s existing businesses and is allocated entirely to the Engineered Materials segment. All of the goodwill related to this acquisition will be deductible for income tax purposes. Net sales and net loss of Aristech Surfaces between the September 1, 2021 acquisition date and December 31, 2021 were $55.2 million and $12.7 million, respectively, and are recognized within the Company's consolidated statements of operations for the year ended December 31, 2021. Transaction-related costs Pursuant to GAAP, costs incurred to complete the Aristech Surfaces Acquisition as well as costs incurred to integrate into our operations are expensed as incurred. The Company incurred $7.0 million of transaction-related costs for the year ended December 31, 2021. The amounts were recorded within “Selling, general and administrative expenses” in the Company’s consolidated statements of operations, and are reflected in the year ended December 31, 2020 in the supplemental pro forma information below. Acquisition of the PMMA Business On May 3, 2021, the Company completed its acquisition of the polymethyl methacrylates (“PMMA”) and activated methyl methacrylates (“MMA”) business (together, the “PMMA business”) from Arkema S.A., (“Arkema”) through the purchase of 100% of the shares of certain subsidiaries of Arkema (the “PMMA Acquisition”). The PMMA Acquisition was completed pursuant to the Share Purchase Agreement, dated March 19, 2021 (the “SPA”), by and between the Company and Arkema. PMMA is a transparent and rigid plastic with a wide range of end uses, and is an attractive adjacent chemistry which complements Trinseo’s existing offerings across several end markets including automotive, building & construction, medical and consumer electronics. The following table illustrates each component of the purchase price consideration related to the PMMA Acquisition: Initial cash purchase price paid (1) $ 1,369.0 Post-closing purchase price adjustments (2) (4.1) Total purchase price consideration $ 1,364.9 (1) Represents initial cash purchase price paid on May 3, 2021. (2) Post-closing purchase price adjustments relate primarily to consideration for final working capital adjustments and certain assets at the Porto Marghera, Italy manufacturing site which were legally transferred to Trinseo subsequent to the closing date due to local transfer restrictions. These post-closing purchase price adjustments were paid in the fourth quarter of 2021. The PMMA Acquisition was funded using the net proceeds from the Company’s new financing arrangements, including $450.0 million from its 2029 Senior Notes issued on March 24, 2021 and $750.0 million of incremental borrowings under the 2028 Term Loan B entered into in conjunction with closing of the transaction, as well as available cash. Refer to Note 12 for further information on the financing arrangements used to fund the PMMA Acquisition. The Company accounted for the PMMA Acquisition as a business combination pursuant to ASC 805. In accordance with ASC 805, fair values are assigned to tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date based on the information that was available as of that date. The Company believes that the information available provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed for the PMMA Acquisition; however, preliminary measurements of fair value, including, but not limited to, intangible assets, property, plant and equipment, contingent liabilities, including environmental remediation obligations, and deferred tax assets and liabilities are subject to change during the measurement period, and such changes could be material. The Company expects to finalize the valuation and accounting for the PMMA Acquisition as soon as practicable, but no later than one year after the acquisition date. During the measurement period, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date, the Company will revise the preliminary purchase price allocation. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments had been completed on the acquisition date. The impact of all changes that do not qualify as measurement period adjustments will be included in current period earnings. The Company allocated the purchase price of the PMMA Acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the aggregate fair values was recorded as goodwill. The Company calculated the fair value of the assets acquired using the income and cost approaches (or a combination thereof). Specifically, the fair value of the customer relationships was estimated using a discounted cash flow valuation method, and the fair value of developed technology was developed using a relief from royalty valuation method. Fair values were determined based on various inputs including estimated future cash flows, discount rates, royalty rates, growth rates, sales projections, customer retention rates, terminal values, replacement costs, anticipated useful lives and depreciation curves. The fair value of pension liabilities assumed was determined in accordance with ASC 715 using key inputs including, but not limited to, discount rates, expected rates of return on plan assets, and future compensation growth rates. The various inputs used in the asset and pension valuations require significant management judgment. The table below summarizes the preliminary purchase price allocation for the assets acquired and liabilities assumed, based on their relative fair values. During the year ended December 31, 2021, the Company recorded certain measurement period adjustments to reflect facts and circumstances in existence as of the May 3, 2021 acquisition date. These adjustments included a $19.4 million increase to property, plant and equipment, a $6.7 million increase to deferred income tax liabilities, a $5.8 million decrease to purchase price consideration, and a resulting $19.8 million decrease to goodwill. May 3, 2021 Cash and cash equivalents $ 10.4 Accounts receivable 19.1 Inventories (1) 78.9 Other current assets 8.7 Property, plant and equipment 255.4 Other intangible assets (2) Customer relationships 326.6 Developed technology 133.0 Trade names 46.0 Other amortizable intangible assets 0.4 Right-of-use assets - operating 4.1 Deferred charges and other assets 27.9 Total fair value of assets acquired 910.5 Accounts payable (14.5) Current lease liabilities - operating (1.7) Income taxes payable (0.3) Accrued expenses and other current liabilities (10.3) Noncurrent lease liabilities - operating (2.5) Deferred income tax liabilities (41.0) Other noncurrent obligations (3) (23.2) Total fair value of liabilities assumed (93.5) Net identifiable assets acquired 817.0 Purchase price consideration 1,364.9 Goodwill (4) $ 547.9 (1) Fair value of finished goods inventory acquired included a step-up in the value of approximately $10.1 million, which was fully amortized during the year ended December 31, 2021 within "Cost of sales" on the consolidated statements of operations as the related inventory was sold to customers. (2) The expected weighted average useful life of the acquired intangible assets are 13 years for customer relationships, 10 years for developed technology, 16 years for trade names, and 1 - 5 years for other amortizable intangible assets. (3) Includes $18.3 million of net pension and other employee benefits assumed as part of the PMMA Acquisition. (4) Goodwill largely consists of strategic and synergistic opportunities resulting from combining the PMMA business with the Company’s existing businesses and is allocated entirely to the Engineered Materials segment. Approximately $301.0 million of goodwill related to this acquisition will be deductible for income tax purposes based on the preliminary purchase price. The results of the PMMA business are recognized within the Company's consolidated statements of operations since the closing of the acquisition on May 3, 2021. The PMMA business contributed net sales and net loss of $413.2 million and $10.7 million, respectively, to the Company’s results for the year ended December 31, 2021. Transaction-related costs Pursuant to GAAP, costs incurred to complete the PMMA Acquisition as well as costs incurred to integrate into our operations are expensed as incurred. The Company incurred $20.0 million and $4.7 million of transaction-related costs for the years ended December 31, 2021 and 2020, respectively. The amounts were recorded within “Selling, general and administrative expenses” in the Company’s consolidated statements of operations, and are reflected in the year ended December 31, 2020 in the supplemental pro forma information below. In connection with the PMMA Acquisition, the Company entered into certain customary transitional services agreements with Arkema to provide for the orderly separation and transition of various functions and processes. These services will be provided by Arkema to the Company for up to 18 months after closing, with certain extension options available. These services include information technology, accounting and finance, procurement, supply chain, and other services, while we assume the operations of the PMMA business. Additionally, the Company paid Arkema $10.6 million for certain information technology separation costs in order to support the transition services agreements entered into at the time of close. These payments have not been included as a component of consideration transferred, and instead have been capitalized as prepaid assets within “Other current assets” on the consolidated balance sheets. The cost will be recognized as expense over the period in which the services are expected to be rendered under the transition services agreements. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information presents the consolidated results of operations of the Company with the PMMA business and Aristech Surfaces for the years ended December 31, 2021 and 2020, respectively, as if these acquisitions had occurred on January l, 2020. The proforma results were calculated by combining the results of Trinseo with the PMMA business and Aristech Surfaces but do not include adjustments related to cost savings or other synergies that are anticipated as a result of these acquisitions. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations would have been if the acquisitions had occurred as of January 1, 2020, nor are they indicative of future results of operations. Year Ended December 31, 2021 2020 Net sales $ 5,162.3 $ 3,443.7 Net income (loss) $ 498.5 $ (61.4) Income (loss) from continuing operations $ 338.1 $ (6.6) Acquisition of Latex Binders Assets in Germany On October 1, 2019, the Company completed the acquisition from Dow of its latex binder production facilities and related infrastructure in Rheinmünster, Germany. The transaction did not require any upfront cash outlay from the Company, instead Trinseo assumed net liabilities of $2.0 million as well as employees transferred in connection with the acquisition in exchange for which, Trinseo received net cash of $6.7 million during the year ended December 31, 2019, and an additional $0.2 million during the year ended December 31, 2020. The acquisition was accounted for as a business combination and the Company allocated the purchase price, represented by the value of the pension liabilities assumed net of cash and net assets received, among identifiable assets acquired and liabilities assumed based on their estimated fair values. There was an excess in the aggregate fair value of the identifiable net assets acquired over the purchase price, which was recorded as a bargain purchase gain of $4.7 million included within “Other expense, net” in the consolidated statements of operations for the year ended December 31, 2019. During the year ended December 31, 2020, there were no changes to the purchase price allocation for the acquisition and in the fourth quarter of 2020, the Company finalized the purchase price allocation for the acquisition. Refer to the Company’s Form 10-K filed on February 28, 2020 for more information on the transaction. Subsequent Event - Acquisition of Heathland B.V On December 3, 2021, the Company entered into a definitive agreement to acquire Heathland B.V. (“Heathland”), a leading collector and recycler of post-consumer and post-industrial plastic wastes in Europe. The agreement includes a preliminary cash purchase price of €20.0 million, subject to customary working capital and other closing adjustments, and up to €10.0 million contingent payments to be paid based on criteria as defined in the agreement. In accordance with the agreement , the Company paid €1.0 million ( $1.1 million) of the cash purchase price upon signing. This amount is reflected in “Other current assets” on the consolidated balance sheet as of December 31, 2021. |
Divestitures and Discontinued O
Divestitures and Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Divestitures and Discontinued Operations | |
Divestitures and Discontinued Operations | NOTE 5—DIVESTITURES AND DISCONTINUED OPERATIONS On December 1, 2021, the Company completed the divestiture of its Synthetic Rubber business to Synthos S.A. and certain of its subsidiaries (together, “Synthos”) for a purchase price of $402.4 million, which reflected reductions of approximately $41.6 million for the assumption of pension liabilities by Synthos and $47.0 million for net working capital (excluding inventory) retained by Trinseo. The sale resulted in the recognition of an after-tax gain of $117.8 million. At closing, the Company and Synthos executed a long-term supply agreement, in which Trinseo will supply Synthos certain raw materials used in the Synthetic Rubber business subsequent to the sale. For the year ended December 31, 2021, the Company recorded $5.5 million in net sales and $4.1 million in cost of sales related to the supply agreement, which is recorded in continuing operations. As a result of the above agreements, the assets and liabilities of the Company’s Synthetic Rubber business were classified as held-for-sale starting in the second quarter of 2021 in the consolidated balance sheets and the associated operating results of the Synthetic Rubber business, net of income tax, have been classified as discontinued operations in the consolidated statements of operations and statements of cash flows for all periods presented, in accordance with the guidance in ASC 205-20, Discontinued Operations. The retained assets and liabilities comprising net working capital (excluding inventory) have been classified as held-and-used and are reflected in the Company's consolidated balance sheets and consolidated statements of cash flows as such, for all periods presented. The following table summarizes the assets and liabilities classified as held-for-sale at December 31, 2020: December 31, 2020 (1) Assets Current assets Inventories $ 60.0 Total current assets 60.0 Property, plant and equipment, net 170.3 Other assets Goodwill 12.1 Other intangible assets, net 20.2 Deferred charges and other assets 25.6 Total other assets 57.9 Total assets held-for-sale $ 288.2 Liabilities Current liabilities Current liabilities 0.4 Total current liabilities 0.4 Noncurrent liabilities Other noncurrent obligations 42.3 Total noncurrent liabilities 42.3 Total liabilities held-for-sale $ 42.7 (1) Amounts as of December 31, 2020 reflect the amendment to the sale agreement executed on October 21, 2021, whereby net working capital (excluding inventory) was removed from the net assets being transferred with the sale, in exchange for which the working capital target of $47.0 million was removed from the purchase price. The following table summarizes the results of the Synthetic Rubber business for the years ended December 31, 2021 and 2020, which are reflected as discontinued operations in the Company’s consolidated statements of operations: Year Ended December 31, 2021 2020 2019 Net sales $ 478.9 $ 319.7 $ 441.3 Cost of sales 408.0 326.3 415.8 Gross profit (loss) 70.9 (6.6) 25.5 Selling, general and administrative expenses 21.0 23.6 20.0 Impairment charges — 28.1 — Operating income (loss) 49.9 (58.3) 5.5 Gain on sale of businesses and other assets (133.6) — — Other expense, net 2.5 1.5 0.6 Income (loss) from discontinued operations before income taxes 181.0 (59.8) 4.9 Provision for (benefit from) income taxes 20.6 (5.0) — Net income (loss) from discontinued operations $ 160.4 $ (54.8) $ 4.9 Amounts for operating net sales and costs of sales which had previously been eliminated in consolidation related to intercompany sales of styrene monomer to the Synthetic Rubber business are now reflected on a gross basis as a component of net sales and costs of sales from continuing operations for all periods presented. The Company has recast these amounts because upon completion of the sale of the Synthetic Rubber business, the Company will continue to have these ongoing transactions with Synthos, under a supply agreement executed in conjunction with the divestiture. Refer to Note 3 for recast segment net sales reflecting this adjustment. Additionally, the Company previously allocated certain corporate management overhead costs to the former Synthetic Rubber segment which may no longer be allocated to discontinued operations under the relevant authoritative accounting guidance. Accordingly, the Company has recast its segment reporting results to reflect the reattribution of these expenses in all periods presented. Refer to Note 20 for recast segment results reflecting this adjustment. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Unconsolidated Affiliates | |
Investments in Unconsolidated Affiliates | NOTE 6—INVESTMENTS IN UNCONSOLIDATED AFFILIATES During the year ended December 31, 2021, the Company had one joint venture: Americas Styrenics, a styrene and polystyrene joint venture with Chevron Phillips Chemical Company LP. Investments held in unconsolidated affiliates in which the Company has the ability to exercise significant influence (generally, 20% to 50%-owned companies) are accounted for by the equity method. The results of Americas Styrenics are included within its own reporting segment. Equity in earnings from unconsolidated affiliates was $92.7 million, $67.0 million, and $119.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. The Company’s unconsolidated affiliates are privately held companies; therefore, quoted market prices for their equity interests are not available. The summarized financial information of the Company’s unconsolidated affiliates is shown below. December 31, 2021 2020 Current assets $ 447.7 $ 339.5 Noncurrent assets 254.2 266.1 Total assets $ 701.9 $ 605.6 Current liabilities $ 193.6 $ 123.9 Noncurrent liabilities 31.4 33.9 Total liabilities $ 225.0 $ 157.8 Year Ended December 31, 2021 2020 2019 Sales $ 1,822.3 $ 1,115.6 $ 1,486.1 Gross profit $ 253.8 $ 130.4 $ 243.2 Net income $ 199.0 $ 80.5 $ 192.5 There were no sales to unconsolidated affiliates for the years ended December 31, 2021, 2020, and 2019. Purchases from unconsolidated affiliates were $73.9 million, $51.2 million, and $81.9 million for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021 and 2020, respectively, there were no amounts due from unconsolidated affiliates included in “Accounts receivable, net of allowance” and $6.1 million and $5.8 million due to unconsolidated affiliates was included in “Accounts payable” in the consolidated balance sheets. As of December 31, 2021 and 2020, respectively, the Company’s investment in Americas Styrenics was $247.8 million and $240.1 million, which was $9.4 million and $16.3 million greater than the Company’s 50% share of Americas Styrenics’ underlying net assets. These amounts represent 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 2.5 years as of December 31, 2021. The Company received dividends from Americas Styrenics of $85.0 million, $15.0 million, and $110.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable [Abstract] | |
Accounts Receivable | NOTE 7—ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: December 31, 2021 2020 Trade receivables $ 659.1 $ 444.6 Non-income tax receivables 53.9 48.0 Other receivables 31.3 42.4 Less: allowance for doubtful accounts (4.1) (5.8) Total $ 740.2 $ 529.2 For the years ended December 31, 2021, 2020, and 2019, the Company recognized bad debt expense (benefit) of $(1.5) million, $0.2 million, and $(0.7) million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Inventories | NOTE 8—INVENTORIES Inventories consisted of the following: December 31, December 31, 2021 2020 Finished goods $ 279.2 $ 132.9 Raw materials and semi-finished goods 303.9 161.7 Supplies 37.9 29.5 Total $ 621.0 $ 324.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 9—PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: Estimated Useful December 31, Lives (Years) 2021 2020 Land N/A $ 86.1 $ 56.7 Land and waterway improvements 1 - 20 21.9 21.1 Buildings 10 - 50 145.7 81.7 Machinery and equipment 3 - 10 874.5 675.8 Leasehold interests 9 - 40 39.8 39.4 Other property 1 - 20 51.9 51.0 Construction in process N/A 55.6 30.1 Property, plant and equipment 1,275.5 955.8 Less: accumulated depreciation (556.5) (524.7) Property, plant and equipment, net $ 719.0 $ 431.1 Year Ended December 31, 2021 2020 2019 Depreciation expense $ 87.5 $ 51.6 $ 59.5 Capitalized interest $ 1.7 $ 2.1 $ 3.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | NOTE 10—GOODWILL AND INTANGIBLE ASSETS Goodwill The following table shows the annual changes in the carrying amount of goodwill, by segment, from December 31, 2019 through December 31, 2021: Engineered Latex Base Americas Materials Binders Plastics Polystyrene Feedstocks Styrenics Total Balance at December 31, 2019 $ 14.6 $ 15.6 $ 22.1 $ 4.4 $ — $ — $ 56.7 Foreign currency impact 1.4 1.5 2.1 0.4 — — 5.4 Balance at December 31, 2020 $ 16.0 $ 17.1 $ 24.2 $ 4.8 $ — $ — $ 62.1 Acquisitions (Note 4) 668.0 — — — — — 668.0 Foreign currency impact (16.7) (1.2) (1.8) (0.3) — — (20.0) Balance at December 31, 2021 $ 667.3 $ 15.9 $ 22.4 $ 4.5 $ — $ — $ 710.1 Goodwill impairment testing is performed annually as of October 1. In 2021, the Company performed its annual impairment test for goodwill and determined that the estimated fair value of each reporting unit was in excess of the carrying value indicating that none of the Company’s goodwill was impaired. The Company concluded there were no goodwill impairments or triggering events for the years ended December 31, 2021, 2020, and 2019. Other Intangible Assets The following table provides information regarding the Company’s other intangible assets as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Estimated Useful Gross Carrying Accumulated Gross Carrying Accumulated Life (Years) Amount Amortization Net Amount Amortization Net Developed Technology 9 - 15 $ 321.4 $ (119.3) $ 202.1 $ 157.2 $ (107.8) $ 49.4 Customer Relationships 13 - 19 477.1 (23.4) 453.7 15.2 (2.7) 12.5 Software 5 - 10 162.3 (93.8) 68.5 156.1 (67.6) 88.5 Software in development N/A 39.7 — 39.7 10.6 — 10.6 Tradenames 10 - 16 53.0 (2.1) 50.9 — — — Other 1 - 5 12.4 (3.5) 8.9 5.0 (3.4) 1.6 Total $ 1,065.9 $ (242.1) $ 823.8 $ 344.1 $ (181.5) $ 162.6 Amortization expense related to finite-lived intangible assets totaled $71.8 million, $27.7 million, and $26.0 million, for the years ended December 31, 2021, 2020, and 2019, respectively. The following table details the Company’s estimated amortization expense for the next five years, excluding any amortization expense related to software currently in development: Estimated Amortization Expense for the Next Five Years 2022 2023 2024 2025 2026 $ 94.7 $ 82.9 $ 75.3 $ 68.0 $ 62.4 |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable | NOTE 11—ACCOUNTS PAYABLE Accounts payable consisted of the following: December 31, 2021 2020 Trade payables $ 516.8 $ 313.9 Other payables 73.5 41.5 Total $ 590.3 $ 355.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt | |
Debt | NOTE 12—DEBT Refer to discussion below for details and definitions of the Company’s debt facilities. The Company was in compliance with all debt related covenants as of December 31, 2021 and 2020. December 31, 2021 Interest Rate as of December 31, 2021 Maturity Date Carrying Amount Unamortized Deferred Financing Fees (1) Total Debt, Less Unamortized Deferred Financing Fees Senior Credit Facility 2024 Term Loan B 2.104% September 2024 $ 670.4 $ (8.0) $ 662.4 2028 Term Loan B 2.604% May 2028 742.8 (17.0) 725.8 2026 Revolving Facility (2) Various May 2026 — — — 2029 Senior Notes 5.125% April 2029 450.0 (14.7) 435.3 2025 Senior Notes 5.375% September 2025 500.0 (5.0) 495.0 Accounts Receivable Securitization Facility (3) Various November 2024 — — — Other indebtedness Various Various 5.6 — 5.6 Total debt $ 2,368.8 $ (44.7) $ 2,324.1 Less: current portion (4) (18.5) Total long-term debt, net of unamortized deferred financing fees $ 2,305.6 December 31, 2020 Interest Rate as of December 31, 2020 Maturity Date Carrying Amount Unamortized Deferred Financing Fees (1) Total Debt, Less Unamortized Deferred Financing Fees Senior Credit Facility 2024 Term Loan B 2.146% September 2024 $ 677.3 $ (10.8) $ 666.5 2022 Revolving Facility (2) Various September 2022 — — — 2025 Senior Notes 5.375% September 2025 500.0 (6.2) 493.8 Accounts Receivable Securitization Facility (3) Various September 2021 — — — Other indebtedness Various Various 10.0 — 10.0 Total debt $ 1,187.3 $ (17.0) $ 1,170.3 Less: current portion (4) (12.2) Total long-term debt, net of unamortized deferred financing fees $ 1,158.1 (1) This caption does not include unamortized deferred financing fees of $1.4 million and $1.6 million as of December 31, 2021 and 2020, respectively, related to the Company’s revolving facilities, which are included within “Deferred charges and other assets” on the consolidated balance sheets. (2) On May 3, 2021, in conjunction with the PMMA Acquisition, the Company extended its Revolving Facility (previously the “2022 Revolving Facility,” now the “2026 Revolving Facility”), originally maturing in September 2022, to May 2026, as described further below. As of December 31, 2021, under the 2026 Revolving Facility, the Company had a capacity of $375.0 million and funds available for borrowing of $368.6 million (net of $6.4 million outstanding letters of credit). Additionally, the Company is required to pay a quarterly commitment fee in respect of any unused commitments under this facility equal to 0.375% per annum. (3) On August 27, 2021, in conjunction with the Aristech Surfaces Acquisition, the Company drew $150.0 million on its Accounts Receivable Securitization Facility, which was fully repaid as of December 31, 2021. In September 2021, the Company extended the maturity date of the facility to November 2021 and then further amended the facility in November 2021, which included extension of the maturity date to November 2024. As of December 31, 2021, this facility had a borrowing capacity of $150.0 million, and the Company had approximately $150.0 million of funds available for borrowing under this facility, based on the pool of eligible accounts receivable. (4) As of December 31, 2021, the current portion of long-term debt was primarily related to $14.5 million of the scheduled future principal payments on both the 2024 Term Loan B and 2028 Term Loan B. As of December 31, 2020, the current portion of long-term debt was primarily related to $7.0 million of scheduled future principal payments on the 2024 Term Loan B. Total interest expense, net recognized during the years ended December 31, 2021, 2020, and 2019, was $79.4 million, $43.6 million, and $39.3 million, respectively, of which $7.7 million, $4.8 million, and $4.7 million, respectively, represented amortization of deferred financing fees and debt discounts. Total accrued interest on outstanding debt as of December 31, 2021 and 2020 was $4.8 million and $4.4 million, respectively, excluding the impact of the CCS (see Note 13). Accrued interest is recorded within “Accrued expenses and other current liabilities” on the consolidated balance sheets. 2029 Senior Notes On March 24, 2021, Trinseo Materials Operating S.C.A. and Trinseo Materials Finance, Inc. (together, the “Issuers”), each an indirect, wholly-owned subsidiary of the Company, executed an indenture (the “2021 Indenture”) pursuant to which they issued $450.0 million aggregate principal amount of 5.125% senior notes due 2029 (the “2029 Senior Notes”) in a 144A private transaction exempt from the registration requirements of the Securities Act of 1933, as amended. Interest on the 2029 Senior Notes is payable semi-annually on February 15 and August 15 of each year, commencing on August 15, 2021. The 2029 Senior Notes mature on April 1, 2029. The net proceeds from the 2029 Senior Notes offering were used as a portion of the funding needed for the PMMA Acquisition, in addition to fees and expenses related to the offering and the PMMA Acquisition. The gross proceeds from the 2029 Senior Notes offering were released upon satisfaction of certain escrow release conditions, including closing of the PMMA Acquisition, which was completed on May 3, 2021. At any time prior to April 1, 2024, the Issuers may redeem the 2029 Senior Notes in whole or in part, at their option, at a redemption price equal to 100% of the principal amount of such notes plus the relevant applicable premium as of, and accrued and unpaid interest to, but not including, the redemption date. At any time and from time to time after April 1, 2024, the Issuers may redeem the 2029 Senior Notes, in whole or in part, at a redemption price equal to the percentage of principal amount set forth below plus accrued and unpaid interest, if any, on the notes redeemed to, but not including, the redemption date: 12-month period commencing April 1 in Year Percentage 2024 102.563 % 2025 101.281 % 2026 and thereafter 100.000 % At any time prior to April 1, 2024, the Issuers may redeem up to 40% of the aggregate principal amount of the 2029 Senior Notes at a redemption price equal to 105.125%, plus accrued and unpaid interest to, but not including, the redemption date, with the aggregate gross proceeds from certain equity offerings. The 2029 Senior Notes are the Issuers’ senior unsecured obligations and rank equally in right of payment with all of the Issuers’ existing and future indebtedness that is not expressly subordinated in right of payment thereto. The 2029 Senior Notes will be senior in right of payment to any future indebtedness that is expressly subordinated in right of payment thereto and effectively junior to (a) the Issuers’ existing and future secured indebtedness, including the Company’s accounts receivable facility and the Issuers’ Credit Facility, to the extent of the value of the collateral securing such indebtedness and (b) all existing and future liabilities of the Issuers’ non-guarantor subsidiaries. The 2021 Indenture contains customary covenants, including restrictions on the Issuers’ and certain of its subsidiaries’ ability to incur additional indebtedness and guarantee indebtedness; pay dividends on, redeem or repurchase capital stock; make investments; prepay certain indebtedness; create liens; enter into transactions with the Issuers’ affiliates; designate the Issuers’ subsidiaries as Unrestricted Subsidiaries (as defined in the 2021 Indenture); and consolidate, merge, or transfer all or substantially all of the Issuers’ assets. The covenants are subject to a number of exceptions and qualifications. Certain of these covenants, excluding without limitation those relating to transactions with the Issuers’ affiliates and consolidation, merger, or transfer of all or substantially all of the Issuers’ assets, will be suspended during any period of time that (1) the 2029 Senior Notes have Investment Grade Status (as defined in the 2021 Indenture) and (2) no default has occurred and is continuing under the 2021 Indenture. In the event that the 2029 Senior Notes are downgraded to below an Investment Grade Status, the Issuers and certain subsidiaries will again be subject to the suspended covenants with respect to future events. Total fees incurred in connection with the issuance of the 2029 Senior Notes were $15.9 million, which were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheet, and are being amortized over the eight-year term of the 2029 Senior Notes using the effective interest method. Senior Credit Facility 2022 Revolving Facility On September 6, 2017, the Issuers entered into a senior secured credit agreement (the “Credit Agreement”), which provides senior secured financing of up to $1,075.0 million (the “Senior Credit Facility”). The Senior Credit Facility provides for senior secured financing consisting of a (i) $375.0 million revolving credit facility, with a $25.0 million swingline subfacility and a $35.0 million letter of credit subfacility maturing in September 2022 (the “2022 Revolving Facility”) and a (ii) $700.0 million senior secured term loan B facility maturing in September 2024 (the “2024 Term Loan B”). Amounts under the 2022 Revolving Facility are available in U.S. dollars and euros. Fees incurred in connection with the issuance of the 2024 Term Loan B were $12.3 million, of which $11.1 million were capitalized along with the remaining $8.1 million of unamortized deferred financing fees from the Company’s former term loan facility and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheets. The capitalized fees are being amortized over the seven-year term of the 2024 Term Loan B using the effective interest method. Fees incurred in connection with the issuance of the 2022 Revolving Facility were $0.8 million, which were capitalized and recorded within “Deferred charges and other assets” on the consolidated balance sheets, and are being amortized along with the remaining $4.0 million of unamortized deferred financing fees from the Company’s former revolving credit facility over the five-year term of the 2022 Revolving Facility using the straight-line method. As of December 31, 2021, the 2024 Term Loan B bears an interest rate of the London Interbank Offered Rate (“LIBOR”) plus 2.00%, subject to a 0.00% LIBOR floor, which has been the effective rate since May 22, 2018, when the Issuers repriced the interest rate from the initial rate of LIBOR plus 2.50%, subject to a 0.00% LIBOR floor. The repricing did not affect any of the other terms of the 2024 Term Loan B. Fees incurred in connection with the repricing were $1.1 million, of which $0.5 million were expensed and included within “Other expense, net” in the consolidated statements of operations during the year ended December 31, 2018 and the remaining $0.6 million were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheets. The capitalized fees associated with the repricing are being amortized along with the remaining unamortized deferred financing fees related to the 2024 Term Loan B over its original seven-year term. The 2024 Term Loan B requires scheduled quarterly payments in amounts equal to 0.25% of the original principal amount of the 2024 Term Loan B, with the balance to be paid at maturity. As of December 31, 2021 and 2020, $7.0 million of the scheduled future payments related to the 2024 Term Loan B were classified as current debt on the Company’s consolidated balance sheets. Loans under the 2022 Revolving Facility, at the Borrowers’ option, may be maintained as (a) LIBOR loans, which bear interest at a rate per annum equal to LIBOR plus the applicable margin (as defined in the Credit Agreement), if applicable, or (b) base rate loans which bear interest at a rate per annum equal to the base rate plus the applicable margin (as defined in the Credit Agreement). The Senior Credit Facility is collateralized by a security interest in substantially all of the assets of the Borrowers, and the guarantors thereunder, including Trinseo Materials S.à r.l., certain Luxembourg subsidiaries and certain foreign subsidiaries organized in the United States, The Netherlands, Hong Kong, Singapore, Ireland, Germany, and Switzerland. The Senior Credit Facility requires the Borrowers and their restricted subsidiaries to comply with customary affirmative, negative, and financial covenants, including limitations on their abilities to incur liens; make certain loans and investments; incur additional debt (including guarantees or other contingent obligations); merge, consolidate liquidate or dissolve; transfer or sell assets; pay dividends and other distributions to shareholders or make certain other restricted payments; enter into transactions with affiliates; restrict any restricted subsidiary from paying dividends or making other distributions or agree to certain negative pledge clauses; materially alter the business they conduct; prepay certain other indebtedness; amend certain material documents; and change their fiscal year. The 2022 Revolving Facility contains a financial covenant that requires compliance with a springing first lien net leverage ratio test. If the outstanding balance under the 2022 Revolving Facility exceeds 30% of the $375.0 million borrowing capacity (excluding undrawn letters of credit up to $10.0 million and cash collateralized letters of credit) at a quarter end, then the Borrowers’ first lien net leverage ratio may not exceed 2.00 to 1.00. 2026 Revolving Facility On May 3, 2021, the Issuers entered into (i) an amendment to the existing credit agreement dated as of September 6, 2017 in which the Issuers borrowed a new tranche of term loans in an aggregate amount of $750.0 million senior secured term loan B facility maturing in May 2028 (the “2028 Term Loan B”), used to finance a portion of the purchase price of the PMMA Acquisition, and (ii) an amendment to the existing credit agreement, pursuant to which the existing revolving credit facility has been refinanced with a new revolving credit facility in an aggregate amount of $375.0 million, with a $25.0 million swingline subfacility and a $35.0 million letter of credit subfacility, maturing in May 2026. Amounts under the 2026 Revolving Facility are available in U.S. dollars and euros. The terms under the 2026 Revolving Facility are substantially unchanged from the 2022 Revolving Facility. As a result of amending the revolving credit facility, during the year ended December 31, 2021, the Company recognized a $0.5 million loss on extinguishment of long-term debt related to the write-off of a portion of the existing unamortized deferred financing fees. This amount has been recorded with “Other expense, net” in the consolidated statement of operations. The 2028 Term Loan B bears an interest rate of LIBOR plus 2.50%, subject to a 0.00% LIBOR floor, and was issued at a 0.5% original issue discount. Further, the 2028 Term Loan B requires scheduled quarterly payments in amounts equal to 0.25% of the original principal amount of the 2028 Term Loan B, with the balance to be paid at maturity. As of December 31, 2021, $7.5 million of the scheduled future payments related to the 2028 Term Loan B were classified as current debt on the Company’s consolidated balance sheets. The 2026 Revolving Facility contains a financial covenant that requires compliance with a springing first lien net leverage ratio test. If the outstanding balance under the 2026 Revolving Facility exceeds 30% of the $375.0 million borrowing capacity (excluding undrawn letters of credit up to $10.0 million and cash collateralized letters of credit) at a quarter end, then the Borrowers’ first lien net leverage ratio may not exceed 3.50 to 1.00. As of December 31, 2021, the Company was in compliance with all debt covenant requirements under the Senior Credit Facility. Fees incurred in connection with the issuance of the 2028 Term Loan B were $18.7 million, which were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheet, and are being amortized over the seven-year term of the 2028 Term Loan B using the effective interest method. Fees incurred in connection with the 2026 Revolving Facility were $0.4 million, which were capitalized and recorded within “Deferred charges and other assets” on the consolidated balance sheet, and are being amortized along with the remaining $0.8 million of unamortized deferred financing fees from the 2022 Revolving Facility over the five-year term of the facility using the straight-line method. 2025 Senior Notes On August 29, 2017, the Issuers executed an indenture (the “2017 Indenture”) pursuant to which they issued $500.0 million aggregate principal amount of 5.375% senior notes due 2025 (the “2025 Senior Notes”) in a 144A private transaction exempt from the registration requirements of the Securities Act of 1933, as amended. Interest on the 2025 Senior Notes is payable semi-annually on May 3 and November 3 of each year, commencing on May 3, 2018. The 2025 Senior Notes mature on September 1, 2025. Fees and expenses incurred in connection with the issuance of the 2025 Senior Notes in 2017 were $9.7 million, which were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheets, and are being amortized over the eight-year term of the 2025 Senior Notes using the effective interest method. At any time prior to September 1, 2020, the Issuers were able to redeem the 2025 Senior Notes in whole or in part, at their option, at a redemption price equal to 100% of the principal amount of such notes plus the relevant applicable premium as of, and accrued and unpaid interest to, but not including, the redemption date. At any time and from time to time after September 1, 2020, the Issuers may redeem the 2025 Senior Notes, in whole or in part, at a redemption price equal to the percentage of principal amount set forth below plus accrued and unpaid interest, if any, on the notes redeemed to, but not including, the redemption date: 12-month period commencing September 1 in Year Percentage 2020 102.688 % 2021 101.792 % 2022 100.896 % 2023 and thereafter 100.000 % At any time prior to September 1, 2020, the Issuers were able to redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes at a redemption price equal to 105.375%, plus accrued and unpaid interest to, but not including, the redemption date, with the aggregate gross proceeds from certain equity offerings. The 2025 Senior Notes are the Issuers’ senior unsecured obligations and rank equally in right of payment with all of the Issuers’ existing and future indebtedness that is not expressly subordinated in right of payment thereto. The 2025 Senior Notes will be senior in right of payment to any future indebtedness that is expressly subordinated in right of payment thereto and effectively junior to (a) the Issuers’ existing and future secured indebtedness, including the Company’s Accounts Receivable Securitization Facility (defined below) and the Issuers’ Senior Credit Facility, to the extent of the value of the collateral securing such indebtedness and (b) all existing and future liabilities of the Issuers’ non-guarantor subsidiaries. The 2017 Indenture contains customary covenants that, among other things, limit the Issuers’ and certain of their subsidiaries’ ability to incur additional indebtedness and guarantee indebtedness; pay dividends on, redeem or repurchase capital shares; make investments; prepay certain indebtedness; create liens; enter into transactions with the Issuers’ affiliates; designate the Issuers’ subsidiaries as Unrestricted Subsidiaries (as defined in the 2017 Indenture); and consolidate, merge, or transfer all or substantially all of the Issuers’ assets. The covenants are subject to a number of exceptions and qualifications. Certain of these covenants will be suspended during any period of time that (1) the 2025 Senior Notes have investment grade ratings (as defined in the 2017 Indenture) and (2) no default has occurred and is continuing under the 2017 Indenture. In the event that the 2025 Senior Notes are downgraded to below an investment grade rating, the Issuers and certain subsidiaries will again be subject to the suspended covenants with respect to future events. Accounts Receivable Securitization Facility In 2010, Styron Receivable Funding Ltd. (“SRF”), a VIE in which the Company is the primary beneficiary, executed an agreement for an accounts receivable securitization facility (the “Accounts Receivable Securitization Facility”). As of December 31, 2021, the Accounts Receivable Securitization Facility permits borrowings by two of the Company’s subsidiaries, Trinseo Europe GmbH (“TE”) and Trinseo Export GmbH (“Trinseo Export”), up to a total of $150.0 million. As noted in the table above, in September 2021, the Company extended the maturity date of the facility to November 2021 and then further amended the facility in November 2021, which included extension of the maturity date to November 2024. As amended, the Accounts Receivable Securitization Facility incurs fixed interest charges of 1.65% on outstanding borrowings plus variable commercial paper rates, as well as fixed charges of 0.80% on available, but undrawn commitments. There were $0.4 million of fees incurred in connection with amending the facility which were capitalized and recorded within “Deferred charges and other assets” on the consolidated balance sheet and are being amortized over the five-year term of the facility using the straight-line method. Under the Accounts Receivable Securitization Facility, TE and Trinseo Export sell their accounts receivable to SRF. In turn, SRF may utilize these receivables as collateral to borrow from commercial paper conduits in exchange for cash. The Company has agreed to continue servicing the receivables for SRF. If utilized as collateral by SRF, the conduits have a first priority perfected security interest in such receivables and, as a result, the receivables will not be available to the creditors of the Company or its other subsidiaries. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | NOTE 13—DERIVATIVE INSTRUMENTS The Company’s ongoing business operations expose it to various risks, including fluctuating foreign exchange rates and interest rate risk. To manage these risks, the Company periodically enters into derivative financial instruments, such as foreign exchange forward contracts and interest rate swap agreements. The Company does not hold or enter into financial instruments for trading or speculative purposes. All derivatives are recorded in the consolidated balance sheets at fair value. Refer to Note 14 for fair value disclosures related to these instruments. 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 its 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 this exposure, the Company also uses foreign exchange forward contracts to economically hedge the impact of the variability in exchange rates on assets and liabilities denominated in certain foreign currencies. The Company entered into a specific such foreign exchange forward contract for €950.0 million in December 2020 in order to economically hedge the euro-denominated purchase price of the PMMA business, which was acquired on May 3, 2021, as discussed in Note 4. These derivative contracts were not designated for hedge accounting treatment, and were settled during the year ended December 31, 2021. As of December 31, 2021, the Company had open foreign exchange forward contracts with a notional U.S. dollar equivalent absolute value of $646.7 million. The following table displays the notional amounts of the most significant net foreign exchange hedge positions outstanding as of December 31, 2021: December 31, Buy / (Sell) 2021 Euro $ (512.5) Chinese Yuan $ (44.7) Swiss Franc $ 25.1 New Taiwan Dollar $ 21.2 Mexican Peso $ (11.7) Open foreign exchange forward contracts as of December 31, 2021 have maturities occurring over a period of two months. 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 rate. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in 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. The Company had no open foreign exchange cash flow hedges as of December 31, 2021. Interest Rate Swaps On September 6, 2017, the Company issued the 2024 Term Loan B, which currently bears an interest rate of LIBOR plus 2.00%, subject to a 0.00% LIBOR floor. In order to reduce the variability in interest payments associated with the Company’s variable rate debt, during 2017 the Company entered into certain interest rate swap agreements to convert a portion of these variable rate borrowings into a fixed rate obligation. These interest rate swap agreements are designated as cash flow hedges, and as such, the contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective, and reclassified to interest expense in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur. As of December 31, 2021, the Company had open interest rate swap agreements with a net notional U.S. dollar equivalent of $200.0 million, which had an effective date of September 29, 2017 and mature in September 2022. Under the terms of the swap agreements, the Company is required to pay the counterparties a stream of fixed interest payments at a rate of 1.81%, and in turn, receives variable interest payments based on one-month LIBOR (0.09% as of December 31, 2021) from the counterparties. Net Investment Hedge On September 1, 2017, the Company entered into certain fixed-for-fixed cross currency swaps (“CCS”), swapping USD principal and interest payments on its 2025 Senior Notes for euro-denominated payments. Under the terms of the CCS (the “2017 CCS”), the Company notionally exchanged $500.0 million at an interest rate of 5.375% for €420.0 million at a weighted average interest rate of 3.45% for approximately five years. Additionally, on September 1, 2017, the Company designated the full notional amount of the 2017 CCS (€420.0 million) as a hedge of its net investment in certain European subsidiaries under the forward method, with all changes in the fair value of the 2017 CCS recorded as a component of AOCI, as the 2017 CCS were deemed to be highly effective hedges. A cumulative foreign currency translation loss of $38.0 million was recorded within AOCI related to the 2017 CCS through March 31, 2018. Effective April 1, 2018, in conjunction with the adoption of new hedge accounting guidance, the Company elected as an accounting policy to re-designate the 2017 CCS as a net investment hedge (and any future similar hedges) under the spot method. As such, changes in the fair value of the 2017 CCS included in the assessment of effectiveness (changes due to spot foreign exchange rates) were recorded as cumulative foreign currency translation within OCI, and will remain in AOCI until either the sale or substantially complete liquidation of the subsidiary. As of December 31, 2021, no gains or losses have been reclassified from AOCI into income related to the sale or substantially complete liquidation of the relevant subsidiaries. As an additional accounting policy election applied to similar hedges, the initial value of any component excluded from the assessment of effectiveness is recognized in income using a systematic and rational method over the life of the hedging instrument. Any difference between the change in the fair value of the excluded component and amounts recognized in income under that systematic and rational method is recognized in AOCI. As of April 1, 2018, the initial excluded component value related to the 2017 CCS was $23.6 million, which the Company elected to amortize as a reduction of “Interest expense, net” in the consolidated statements of operations using the straight-line method over the remaining term of the 2017 CCS. Additionally, the Company recognizes the accrual of periodic USD and euro-denominated interest receipts and payments under the terms of its CCS arrangements, including its 2017 CCS, within “Interest expense, net” in the consolidated statements of operations. On February 26, 2020, the Company settled its 2017 CCS and replaced it with a new CCS arrangement (the “2020 CCS”) that carried substantially the same terms as the 2017 CCS. Upon settlement of the 2017 CCS, the Company realized net cash proceeds of $51.6 million. The remaining $13.8 million unamortized balance of the initial excluded component related to the 2017 CCS at the time of settlement is no longer being amortized following the settlement and will remain in AOCI until either the sale or substantially complete liquidation of the relevant subsidiaries. weighted average interest rate of 3.672% for approximately 2.7 years, with a final maturity of November 3, 2022. The cash flows under the 2020 CCS are aligned with the Company’s principal and interest obligations on its 5.375% 2025 Senior Notes. For the third quarter of 2020, based on the value of the Company’s net investment in certain of its European subsidiaries, a portion of the 2020 CCS was not a highly effective hedge. As a result, the Company de-designated €16.1 million of the 2020 CCS from being a net investment hedge for the third quarter of 2020, pursuant to which changes in the fair value of this non-hedged component were recognized within “Other expense, net” in the consolidated statements of operations during the third quarter of 2020. For the fourth quarter of 2020, the Company’s 2020 CCS returned to being a highly effective hedge and thus it was re-designated in its entirety as a net investment hedge. Summary of Derivative Instruments The following table presents the effect of the Company’s derivative instruments, including those not designated for hedge accounting treatment, on the consolidated statements of operations for the years ended December 31, 2021, 2020, and 2019: Location and Amount of Gain (Loss) Recognized in Statements of Operations Year Ended December 31, 2021 Cost of sales Interest expense, net Acquisition purchase price hedge gain (loss) Other expense, net Total amount of income (expense) line items presented in the statements of operations, which include the effects of derivative instruments $ (4,128.6) $ (79.4) $ (22.0) $ (9.5) Effects of cash flow hedge instruments: Foreign exchange cash flow hedges Amount of gain reclassified from AOCI into income $ 1.0 $ — $ — $ — Interest rate swaps Amount of loss reclassified from AOCI into income $ — $ (3.5) $ — $ — Effects of net investment hedge instruments: Cross currency swaps Amount of gain excluded from effectiveness testing $ — $ 7.4 $ — $ — Effects of derivatives not designated as hedge instruments: Foreign exchange forward contracts Amount of gain (loss) recognized in income $ — $ — $ (22.0) $ 63.2 Location and Amount of Gain (Loss) Recognized in Statements of Operations Year Ended December 31, 2020 Cost of sales Interest expense, net Acquisition purchase price hedge gain (loss) Other expense, net Total amount of income (expense) line items presented in the statements of operations, which include the effects of derivative instruments $ (2,423.5) $ (43.6) $ 7.3 $ (7.9) Effects of cash flow hedge instruments: Foreign exchange cash flow hedges Amount of loss reclassified from AOCI into income $ (0.8) $ — $ — $ — Interest rate swaps Amount of loss reclassified from AOCI into income $ — $ (2.4) $ — $ — Effects of net investment hedge instruments: Cross currency swaps Amount of gain excluded from effectiveness testing $ — $ 8.6 $ — $ — Amount of loss recognized in income (1) $ — $ — $ — $ (0.8) Effects of derivatives not designated as hedge instruments: Foreign exchange forward contracts Amount of loss recognized in income $ — $ — $ 7.3 $ (26.3) Location and Amount of Gain (Loss) Recognized in Statements of Operations Year Ended December 31, 2019 Cost of sales Interest expense, net Acquisition purchase price hedge gain (loss) Other expense, net Total amount of income (expense) line items presented in the statements of operations, which include the effects of derivative instruments $ (3,073.5) $ (39.3) $ — $ (3.4) Effects of cash flow hedge instruments: Foreign exchange cash flow hedges Amount of gain reclassified from AOCI into income $ 6.7 $ — $ — $ — Interest rate swaps Amount of gain reclassified from AOCI into income $ — $ 0.9 $ — $ — Effects of net investment hedge instruments: Cross currency swaps Amount of gain excluded from effectiveness testing $ — $ 15.8 $ — $ — Effects of derivatives not designated as hedge instruments: Foreign exchange forward contracts Amount of gain recognized in income $ — $ — $ — $ 8.0 (1) Amount represents the change in fair value of the portion of the 2020 CCS that was de-designated from hedge accounting for the third quarter of 2020. The following table presents the effect of cash flow and net investment hedge accounting on AOCI for the years ended December 31, 2021, 2020, and 2019: Gain (Loss) Recognized in AOCI on Balance Sheets Year Ended December 31, 2021 2020 2019 Designated as Cash Flow Hedges Foreign exchange cash flow hedges $ 2.3 $ (1.4) $ (2.2) Interest rate swaps 3.6 (4.4) (6.1) Total $ 5.9 $ (5.8) $ (8.3) Designated as Net Investment Hedges Cross currency swaps (CCS) (1) $ 44.1 $ (41.0) $ 17.9 Total $ 44.1 $ (41.0) $ 17.9 (1) Amount for the year ended December 31, 2020 includes the effect on AOCI from the 2017 CCS through its settlement on February 26, 2020 and the effect on AOCI from the 2020 CCS from when it was entered into on February 26, 2020 through December 31, 2020. Gain (Loss) Recognized in Other expense, net in Statement of Operations Year Ended December 31, 2021 2020 2019 Settlements and changes in the fair value of forward contracts (not designated as hedges) (1) $ 63.2 $ (26.3) $ 8.0 Remeasurement of foreign currency-denominated assets and liabilities $ (61.9) $ 24.4 $ (6.4) Total $ 1.3 $ (1.9) $ 1.6 (1) Amounts do not include the gain (loss) of $(22.0) million and $7.3 million, respectively, recorded from the change in fair value of the forward currency hedge arrangement on the euro-denominated purchase price of the PMMA business during the years ended December 31, 2021 and 2020. The Company expects to reclassify in the next twelve months an approximate $2.2 million net loss from AOCI into earnings related to the Company’s outstanding foreign exchange cash flow hedges and interest rate swaps as of December 31, 2021, based on current foreign exchange rates. The following tables summarize the net unrealized gains and losses and balance sheet classification of outstanding derivatives recorded in the consolidated balance sheets: December 31, 2021 Foreign Foreign Exchange Exchange Interest Cross Balance Sheet Forward Cash Flow Rate Currency Classification Contracts Hedges Swaps Swaps Total Asset Derivatives: Accounts receivable, net of allowance $ 2.3 $ — $ — $ — $ 2.3 Gross derivative asset position 2.3 — — — 2.3 Less: Counterparty netting (0.1) — — — (0.1) Net derivative asset position $ 2.2 $ — $ — $ — $ 2.2 Liability Derivatives: Accounts payable $ (1.3) $ — $ (2.2) $ (17.4) $ (20.9) Gross derivative liability position (1.3) — (2.2) (17.4) (20.9) Less: Counterparty netting 0.1 — — — 0.1 Net derivative liability position $ (1.2) $ — $ (2.2) $ (17.4) $ (20.8) Total net derivative position $ 1.0 $ — $ (2.2) $ (17.4) $ (18.6) December 31, 2020 Foreign Foreign Exchange Exchange Interest Cross Balance Sheet Forward Cash Flow Rate Currency Classification Contracts Hedges Swaps Swaps Total Asset Derivatives: Accounts receivable, net of allowance (1) $ 8.2 $ — $ — $ 5.0 $ 13.2 Gross derivative asset position 8.2 — — 5.0 13.2 Less: Counterparty netting (6.5) — — — (6.5) Net derivative asset position $ 1.7 $ — $ — $ 5.0 $ 6.7 Liability Derivatives: Accounts payable $ (8.3) $ (2.1) $ (3.4) $ — $ (13.8) Other noncurrent obligations — — (2.5) (66.5) (69.0) Gross derivative liability position (8.3) (2.1) (5.9) (66.5) (82.8) Less: Counterparty netting 6.5 — — — 6.5 Net derivative liability position $ (1.8) $ (2.1) $ (5.9) $ (66.5) $ (76.3) Total net derivative position $ (0.1) $ (2.1) $ (5.9) $ (61.5) $ (69.6) (1) Balance as of December 31, 2020 includes a $7.3 million receivable representing the fair value of the forward currency hedge arrangement on the euro-denominated purchase price of the PMMA business. Forward contracts, interest rate swaps, and cross currency swaps 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, these derivative instruments are recorded on a net basis by counterparty within the consolidated balance sheets. Refer to Notes 14 and 22 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 | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 14—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 tables summarize the basis used to measure certain assets and liabilities at fair value on a recurring basis in the consolidated balance sheets at December 31, 2021 and 2020: December 31, 2021 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 $ — $ 2.2 $ — $ 2.2 Foreign exchange forward contracts—(Liabilities) — (1.2) — (1.2) Interest rate swaps—(Liabilities) — (2.2) — (2.2) Cross currency swaps—(Liabilities) — (17.4) — (17.4) Total fair value $ — $ (18.6) $ — $ (18.6) December 31, 2020 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 $ — $ 1.7 $ — $ 1.7 Foreign exchange forward contracts—(Liabilities) — (1.8) — (1.8) Foreign exchange cash flow hedges—(Liabilities) — (2.1) — (2.1) Interest rate swaps—(Liabilities) — (5.9) — (5.9) Cross currency swaps—Assets — 5.0 — 5.0 Cross currency swaps—(Liabilities) — (66.5) — (66.5) Total fair value $ — $ (69.6) $ — $ (69.6) 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, such as interest rate yield curves and currency spot and forward rates. Significant inputs to the valuation for these derivative instruments 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. Nonrecurring Fair Value Measurements In connection with the Company’s strategy to focus efforts and increase investments in certain product offerings serving applications that are less cyclical and offer significantly higher growth and margin potential, and other management considerations, in March of 2020, the Company initiated a consultation process with the Economic Council and Works Councils of Trinseo Deutschland regarding the potential disposition of its styrene monomer assets in Boehlen, Germany. In late 2020, the Company completed its evaluation of the assets and decided to continue operating them, however the assessment of the long-lived asset group for impairment indicated that the carrying value was not recoverable when compared to the expected undiscounted future cash flows generated from the assets. The fair value of the depreciable assets was determined through an analysis of the underlying fixed asset records in conjunction with the use of industry experience and available market data. As a result of the fair value measurements performed, the Company recorded impairment charges on the Boehlen styrene monomer assets of $5.8 million and $11.1 million for the years ended December 31, 2021 and 2020, respectively. These impairment charges reflect the initial impairment charge taken in March of 2020, as well as subsequent impairment charges related to ongoing capital expenditures at the Boehlen styrene monomer facility that were determined to be impaired. These charges are recorded within “Impairment charges” on the consolidated statements of operations and are allocated to the Feedstocks segment. As of December 31, 2021 and 2020, the value of the Boehlen styrene monomer assets recorded within the Company’s consolidated balance sheets as $3.4 million and $3.7 million, respectively. There were no other financial assets and no financial liabilities measured at fair value on a nonrecurring basis as of December 31, 2021 and 2020. 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 December 31, 2021 and 2020: As of As of December 31, 2021 December 31, 2020 2029 Senior Notes $ 460.2 $ — 2028 Term Loan B 737.4 — 2025 Senior Notes 509.4 513.5 2024 Term Loan B 667.5 674.0 Total fair value $ 2,374.5 $ 1,187.5 The fair value of the Company’s debt facilities above (each Level 2 securities) is determined using over-the-counter market quotes and benchmark yields received from independent vendors. Fair value amount presented reflect the Company’s carrying value of debt, net of original issuance discount. There were no other significant financial instruments outstanding as of December 31, 2021 and 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | NOTE 15—INCOME TAXES Income (loss) before income taxes earned within and outside the United States is shown below: Year Ended December 31, 2021 2020 2019 United States $ 55.5 $ 56.8 $ 115.2 Outside of the United States 295.0 48.6 (15.4) Income before income taxes $ 350.5 $ 105.4 $ 99.8 The provision for income taxes is composed of: Year Ended Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Current Deferred Total Current Deferred Total Current Deferred Total U.S. federal $ 5.9 $ 4.4 $ 10.3 $ 3.3 $ 11.9 $ 15.2 $ 16.9 $ 5.2 $ 22.1 U.S. state and other 1.7 0.8 2.5 2.8 1.8 4.6 3.2 0.9 4.1 Non-U.S. 65.4 (7.3) 58.1 28.7 (5.8) 22.9 30.0 (43.5) (13.5) Total $ 73.0 $ (2.1) $ 70.9 $ 34.8 $ 7.9 $ 42.7 $ 50.1 $ (37.4) $ 12.7 The effective tax rate on pre-tax income differs from the U.S. statutory rate due to the following: Year Ended December 31, 2021 2020 2019 Taxes at U.S. statutory rate (1) $ 73.6 $ 22.2 $ 21.0 State and local income taxes 2.2 4.0 3.2 Non U.S. statutory rates, including credits (9.2) 2.4 (7.7) U.S. tax effect of foreign earnings and dividends — 0.2 (1.5) Unremitted earnings 6.3 4.9 5.2 Change in valuation allowances (2)(3) (17.7) (7.7) 45.0 Uncertain tax positions (1.0) (0.6) 4.0 Withholding taxes 6.9 3.5 4.4 Share-based compensation 0.1 1.5 (1.0) Non-deductible interest 1.0 3.0 2.1 Non-deductible other expenses 2.7 0.6 0.3 Provision to return adjustments 3.1 5.0 3.4 Swiss Tax Reform (2) — — (65.0) U.S. Base Erosion and Anti-Abuse Tax — 3.1 — Other—net 2.9 0.6 (0.7) Total provision for income taxes $ 70.9 $ 42.7 $ 12.7 Effective tax rate 20 % 40 % 13 % (1) The U.S. statutory rate of 21% has been used as management believes it is more meaningful to the Company. (2) The year ended December 31, 2019 includes a $65.0 million one-time deferred tax benefit recorded as a result of changes in the Swiss federal and cantonal tax rules, which were enacted on August 6, 2019 and October 25, 2019, respectively. This one-time benefit was partially offset by a $25.3 million valuation allowance for the portion of the cantonal deferred tax asset that more likely than not will expire before utilization. See discussion below for further information. (3) The year ended December 31, 2021 includes a $16.3 million one-time deferred tax benefit recorded due to the release of a valuation allowance, as a result of improvements in business operations and projected future results of the Company’s subsidiaries in China. Provision for income taxes increased by $28.2 million primarily due to the $245.1 million increase in income from continuing operations before income taxes, offset by a release of a valuation allowance of $16.3 million in 2021, as a result of improvements in business operations and projected future results of the Company’s subsidiaries in China. Deferred income taxes reflect temporary differences between the valuation of assets and liabilities for financial and tax reporting: December 31, 2021 2020 Deferred Deferred Deferred Deferred Tax Tax Tax Tax Assets Liabilities Assets Liabilities Tax loss and credit carryforwards (1) $ 98.5 $ — $ 189.0 $ — Unremitted earnings — 35.7 — 29.4 Unconsolidated affiliates — 15.3 — 16.1 Other accruals and reserves (2) 34.2 — 26.5 — Property, plant and equipment (2)(3) — 97.2 — 51.2 Goodwill and other intangible assets (4) 70.7 — 70.0 — Deferred financing fees 2.5 — 3.2 — Employee benefits 44.4 — 58.0 — 250.3 148.2 346.7 96.7 Valuation Allowance (1)(5) (127.7) — (220.5) — Total $ 122.6 $ 148.2 $ 126.2 $ 96.7 (1) For the year ended December 31, 2021, $63.3 million of net operating losses were written off related to Trinseo S.A., our former parent company, that was merged into Trinseo PLC as part of the Redomiciliation to Ireland (refer to Note 1), offset by the write off of a $63.3 million associated valuation allowance. (2) Amounts as of December 31, 2020 include an increase of $19.6 million to the deferred tax liability related to operating lease ROU assets and an increase of $19.6 million to the deferred tax asset related to operating lease liabilities, to reflect the gross deferred tax assets and liabilities which were previously shown as net. (3) Includes $45.6 million of deferred tax liabilities assumed as part of the Aristech Surfaces Acquisition and PMMA Acquisition as of December 31, 2021, measured at period-end exchange rates. (4) Includes the impact of Swiss federal and cantonal tax reform of $3.4 million and $62.1 million, respectively, as of December 31, 2021 and $4.5 million and $67.5 million, respectively, as of December 31, 2020, measured at period-end exchange rates. See discussion below for further information. (5) Includes a valuation allowance of $25.8 million and $28.1 million as of December 31, 2021 and 2020, respectively, related to Swiss cantonal tax reform, measured at period-end exchange rates. See discussion below for further information. As of December 31, 2021 and 2020, all undistributed earnings of foreign subsidiaries and affiliates are expected to be repatriated. Operating loss carryforwards amounted to $389.4 million in 2021 and $774.8 million in 2020. As of December 31, 2021, $17.4 million of the operating loss carryforwards were subject to expiration in 2022 through 2027, and $372.0 million of the operating loss carryforwards expire in years beyond 2027 or have an indefinite carryforward period. The Company had valuation allowances which were related to the realization of recorded tax benefits on tax loss carryforwards, as well as other net deferred tax assets, primarily from subsidiaries in Luxembourg and Switzerland of $127.7 million as of December 31, 2021 and $220.5 million as of December 31, 2020. Swiss federal and cantonal tax reform was enacted on August 6, 2019 and October 25, 2019, respectively, and includes measures such as, the elimination of certain preferential tax regimes and implementation of new tax rates at both the federal and cantonal levels. It also includes transitional relief measures which may provide for future tax deductions . 2025 through 2029. This is based on the Company’s estimate of future taxable income in Switzerland, which was determined using management’s judgment and assumptions about various factors, such as: historical experience and results, cyclicality of the business, implications of COVID-19, recent acquisitions and divestitures, and future industry and macroeconomic conditions and trends possible during the aforementioned utilization period. As a result, the Company recorded a $25.3 million valuation allowance as of December 31, 2019. As of December 31, 2021, due to foreign exchange translation, the total valuation allowance recorded is $25.8 million. It is possible that the remainder of the one-time deferred tax benefit from Swiss tax law changes may expire unused if the Company is not able to generate sufficient taxable income in Switzerland. In the future, if the Company cannot assert it is more likely than not it will realize this net deferred tax asset, an additional valuation allowance will be established, impacting the Company’s financial position and results of operations in the period recognized. For the years presented, a reconciliation of the beginning and ending amount of the unrecognized tax benefits is as follows: Balance as of December 31, 2018 $ 6.3 Increases related to current year tax positions 0.6 Increases related to prior year tax positions 3.8 Decreases related to prior year tax positions — Settlement of uncertain tax positions (1.3) Decreases due to expiration of statues of limitations (0.4) Balance as of December 31, 2019 $ 9.0 Increases related to current year tax positions 0.6 Increases related to prior year tax positions 0.3 Decreases related to prior year tax positions (0.5) Settlement of uncertain tax positions (0.9) Decreases due to expiration of statues of limitations — Balance as of December 31, 2020 $ 8.5 Increases related to current year tax positions 0.6 Increases related to prior year tax positions — Decreases related to prior year tax positions (0.2) Settlement of uncertain tax positions (1.4) Decrease due to expiration of statutes of limitations — Balance as of December 31, 2021 $ 7.5 In regard to unrecognized tax benefits, the Company recognized expense related to interest and penalties of $0.3 million and $0.8 million during the years ended December 31, 2021 and 2019, whereas the Company recognized a benefit related to interest and penalties of $0.4 million during the year ended December 31, 2020. Interest and penalties related to unrecognized tax benefits were included as a component of income tax expense in the consolidated statements of operations. As of December 31, 2021 and 2020, the Company had $1.8 million and $1.5 million, respectively, accrued for interest and penalties. To the extent that the unrecognized tax benefits are recognized in the future, $8.3 million will impact the Company’s effective tax rate. As of December 31, 2021, the Company anticipates that it is reasonably possible that $1.4 million of unrecognized tax benefits, including the impact relating to accrued interest and penalties, could be realized within the next 12 months due to the expiration of the statute of limitations in certain jurisdictions. Tax years that remain subject to examination for the Company’s major tax jurisdictions are shown below. Major Tax Jurisdictions Earliest Open Year United States: Federal income tax 2018 Germany 2014 Switzerland 2015 Netherlands 2017 Luxembourg 2011 China 2011 Hong Kong 2006 Indonesia 2017 Italy 2010 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | NOTE 16—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 Dow Separation, the pre-closing environmental conditions were retained by Dow and the Company has been indemnified by Dow from and against all environmental liabilities incurred or relating to the predecessor periods. There are several properties which the Company now owns on which Dow has been conducting investigation, monitoring, or remediation to address historical contamination. Those properties include Allyn’s Point, Connecticut and Dalton, Georgia. There are other properties with historical contamination that are owned by Dow that the Company leases for its operations, including its facilities in Midland, Michigan, Schkopau, Germany, and Terneuzen, The Netherlands. Other than certain immaterial environmental liabilities assumed as part of the PMMA Acquisition and the Aristech Surfaces Acquisition, no environmental claims have been asserted or threatened against the Company. The Company is not a potentially responsible party for any material amounts at any Superfund sites. As of December 31, 2021, the Company had $4.4 million of accrued obligations for environmental remediation or restoration costs, which were recorded at fair value within the opening balance sheets of the PMMA business and Aristech Surfaces during 2021. The Company had no accrued obligations for environmental remediation or restoration costs as of December 31, 2020. 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 consolidated financial statements over the next 12 months. Purchase Commitments In the normal course of business, the Company has certain raw material purchase contracts under which it is required to purchase certain minimum volumes at current market prices. These commitments have remaining terms ranging from one Annual Commitment 2022 2023 2024 2025 2026 Thereafter Total $ 859.1 $ 807.4 $ 263.2 $ 98.1 $ 50.4 $ — $ 2,078.2 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 obligations shown in the table above. 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. European Commission Request for Information On June 6, 2018, Trinseo Europe GmbH, a subsidiary of the Company, received a Request for Information in the form of a letter from the European Commission Directorate General for Competition (the “European Commission”) related to styrene monomer commercial activity in the European Economic Area. The Company subsequently commenced an internal investigation into these commercial activities and discovered instances of inappropriate activity. On October 28, 2019, a supplemental request for information was received from the European Commission. This request was limited to historical employment, entity, and organizational structures, along with certain financial, styrene purchasing, and styrene market information, as well as certain spot styrene purchase contracts. The Company has provided this information and continues to fully cooperate with the European Commission. The proceedings with the European Commission continue and its outcome remains open. Based on its findings, the European Commission may decide to: (i) require further information; (ii) conduct unannounced raids of the Company’s premises; (iii) adopt a decision imposing fines, and/or request certain behavioral or structural commitments from the Company; or (iv) in view of defense arguments by the Company close the proceedings. As a result of the above factors, the Company is unable to predict the ultimate outcome of this matter or estimate the range of reasonably possible losses that could be incurred. However, any potential losses incurred could be material to the Company’s results of operations, balance sheet, and cash flows for the period in which they are resolved or become probable and reasonably estimable. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Pension Plans and Other Postretirement Benefits | |
Pension Plans and Other Postretirement Benefits | NOTE 17—PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Defined Benefit Pension Plans Many of the Company’s employees are participants in various defined benefit pension plans which are administered and sponsored by the Company and are primarily in Germany, Switzerland, The Netherlands, The United States, China, Belgium, France, Taiwan, Indonesia, Italy, Mexico, and Japan. Company employees who were not previously associated with the acquired pension and postretirement plans are not eligible for enrollment in a number of these plans. Pension benefits are typically based on length of service and the employee’s final average compensation Other Postretirement Benefits The Company provides certain health care and life insurance benefits primarily to Dow-heritage employees in the United States when they retire. In the U.S., the plan provides for health care benefits, including hospital, physicians’ services, drug and major medical expense coverage. In general, the plan applies to employees hired by Dow before January 1, 2008 and transferred to the Company in connection with the Dow Separation, and who are at least 50 years old with 10 years of service. The plan allows for spouse coverage as well. If an employee was hired on or before January 1, 1993, the coverage extends past age 65. For employees hired after January 1, 1993 but before January 1, 2008, coverage ends at age 65. The Company reserves the right to modify the provisions of the plan at any time, including the right to terminate, and does not guarantee the continuation of the plan or its provisions. Assumptions The weighted average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below: U.S. Defined Benefit Non-U.S. Defined Benefit Pension Plans Pension Plans (1) Pension Plan Net Periodic Pension Plan Obligations Net Periodic Benefit Costs Obligations Benefit Costs December 31, December 31, December 31, 2021 2020 2019 2021 2020 2019 2021 2021 Discount rate for projected benefit obligation 1.10 % 0.74 % 1.02 % 0.74 % 1.02 % 1.83 % 2.92 % 3.09 % Discount rate for service cost N/A N/A N/A 0.78 % 1.04 % 1.67 % N/A 3.20 % Discount rate for interest cost N/A N/A N/A 0.57 % 0.79 % 1.57 % N/A 2.37 % Rate of increase in future compensation levels 2.90 % 2.84 % 2.80 % 2.84 % 2.80 % 2.79 % 3.00 % 3.00 % Expected long-term rate of return on plan assets N/A N/A N/A 0.66 % 0.82 % 1.56 % N/A 5.89 % (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no assumptions used to determine pension plan obligations or net periodic benefit costs as of and for the years ended December 31, 2020 and 2019. The weighted average assumptions used to determine other postretirement benefit (“OPEB”) obligations and net periodic benefit costs are provided below: OPEB Obligations Net Periodic Benefit Costs December 31, December 31, 2021 2020 2019 2021 2020 2019 Discount rate for accumulated postretirement benefit obligation 2.90 % 3.11 % 3.48 % 3.11 % 3.48 % 4.38 % Discount rate for service cost N/A N/A N/A 3.32 % 3.61 % 4.42 % Discount rate for interest cost N/A N/A N/A 2.34 % 3.08 % 4.14 % Initial health care cost trend rate 6.00 % 6.25 % 6.70 % 6.25 % 6.70 % 6.70 % Ultimate health care cost trend rate 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate trend rate to be reached 2026 2026 2025 2026 2025 2024 The Company determines the discount rate used to measure plan liabilities as of the December 31 measurement date for the pension and postretirement benefit plans. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. The Company sets its rate to reflect the yield of a portfolio of high quality, fixed-income debt instruments that would produce cash flows sufficient in timing and amount to settle projected future benefits. The Company uses a full yield curve approach in the estimation of the future service and interest cost components of net periodic benefit cost for its defined benefit pension and other postretirement benefit plans by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The expected long-term rate of return on plan assets is determined by performing an analysis of key economic and market factors impacting historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The historical experience with the pension fund asset performance is also considered. The net periodic benefit costs for the pension and other postretirement benefit plans for the years ended December 31, 2021, 2020, and 2019 were as follows: Non-U.S. Defined Benefit Pension Plans U.S. Defined Benefit Pension Plans (2) Other Postretirement Benefit Plans December 31, December 31, December 31, 2021 2020 2019 2021 2020 2019 2021 2020 2019 Net periodic benefit cost (1) Service cost $ 16.0 $ 13.2 $ 10.2 $ 0.5 $ — $ — $ 0.1 $ — $ 0.1 Interest cost 2.5 3.1 4.8 0.5 — — 0.1 0.2 0.2 Expected return on plan assets (1.0) (1.2) (2.1) (0.7) — — — — — Amortization of prior service credit (0.9) (1.2) (1.1) — — — — — — Amortization of net (gain) loss 6.3 4.0 2.9 — — — (0.1) (0.1) (0.2) Settlement and curtailment (gain) loss (1.6) 0.7 0.8 0.1 — — — — — Net periodic benefit cost $ 21.3 $ 18.6 $ 15.5 $ 0.4 $ — $ — $ 0.1 $ 0.1 $ 0.1 Amounts recognized in other comprehensive income (loss) Net (gain) loss $ (35.5) $ 25.3 $ 27.9 $ 0.7 $ — $ — $ (0.2) $ 0.3 $ 0.1 Amortization of prior service credit 0.9 1.2 1.1 — — — — — — Amortization of net gain (loss) (6.3) (4.0) (2.9) — — — 0.1 0.1 0.2 Settlement and curtailment gain (loss) 1.6 (0.7) (0.8) (0.1) — — — — — Prior service credit (2.4) — — — — — — — — Total recognized in other comprehensive income (loss) (41.7) 21.8 25.3 0.6 — — (0.1) 0.4 0.3 Net periodic benefit cost 21.3 18.6 15.5 0.4 — — 0.1 0.1 0.1 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (20.4) $ 40.4 $ 40.8 $ 1.0 $ — $ — $ — $ 0.5 $ 0.4 (1) Service cost related to the Company’s defined benefit pension plans and other postretirement plans is included within “Cost of sales” and “Selling, general and administrative expenses,” whereas all other components of net periodic benefit cost are included within “Other expense, net” in the consolidated statements of operations. (2) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no net periodic benefit costs for the years ended December 31, 2020 and 2019. The changes in the pension benefit obligations, the fair value of plan assets, and the funded status of all significant plans for the years ended December 31, 2021 and 2020 were as follows: Non-U.S. Defined U.S. Defined Benefit Other Postretirement Benefit Pension Plans Pension Plans (3) Benefit Plans December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Change in projected benefit obligations Benefit obligation at beginning of period $ 446.5 $ 384.1 $ — $ — $ 6.7 $ 6.2 Service cost 16.0 13.2 0.5 — 0.1 — Interest cost 2.5 3.1 0.5 — 0.1 0.2 Plan participants’ contributions 1.7 1.8 — — — — Actuarial changes in assumptions and experience (1) (28.1) 27.7 1.2 — (0.2) 0.3 Benefits paid from fund (1.1) (2.6) — — — — Benefit payments by employer (2.9) (2.2) (0.2) — — — Acquisitions (2) 6.7 — 31.5 — 0.8 — Plan amendments (2.4) — — — — — Curtailments (3.3) (3.3) — — — — Settlements (10.1) (14.4) (3.0) — — — Currency impact (31.7) 39.1 — — — — Benefit obligation at end of period $ 393.8 $ 446.5 $ 30.5 $ — $ 7.5 $ 6.7 Change in plan assets Fair value of plan assets at beginning of period $ 157.1 $ 148.8 $ — $ — $ — $ — Actual return on plan assets (1.1) 5.3 1.3 — — — Settlements (10.1) (14.4) (3.0) — — — Employer contributions 5.7 6.2 1.1 — — — Plan participants’ contributions 1.7 1.8 — — — — Benefits paid (4.0) (4.8) (0.2) — — — Acquisitions (2) 0.7 — 18.8 — — — Currency impact (10.9) 14.2 — — — — Fair value of plan assets at end of period 139.1 157.1 18.0 — — — Funded status at end of period $ (254.7) $ (289.4) $ (12.5) $ — $ (7.5) $ (6.7) (1) The actuarial gain incurred during the year ended December 31, 2021 was primarily due to the increase in discount rates during the year while the actuarial loss incurred during the year ended December 31, 2020 was primarily due to the decrease in discount rates during the year. (2) Amount as of December 31, 2021 relates primarily to the pension liabilities assumed in conjunction with the PMMA Acquisition. (3) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. The net amounts recognized in the consolidated balance sheets as of December 31, 2021 and 2020 were as follows: Non-U.S. Defined U.S. Defined Benefit Other Postretirement Benefit Pension Plans Pension Plans (1) Benefit Plans December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Net amounts recognized in the balance sheets as of December 31 Current liabilities $ (4.5) $ (5.4) $ — $ — $ (0.2) $ (0.1) Noncurrent liabilities (250.2) (284.0) (12.5) — (7.3) (6.6) Net amounts recognized in the balance sheet $ (254.7) $ (289.4) $ (12.5) $ — $ (7.5) $ (6.7) Accumulated benefit obligation at the end of the period $ 367.7 $ 405.0 $ 27.4 $ — $ 7.5 $ 6.7 Pretax amounts recognized in AOCI as of December 31 Net prior service credit $ (2.4) $ (1.7) $ — $ — $ — $ (0.1) Net loss (gain) 51.6 103.6 0.6 — (1.6) (1.5) Total at end of period $ 49.2 $ 101.9 $ 0.6 $ — $ (1.6) $ (1.6) (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table: 2027 through 2022 2023 2024 2025 2026 2031 Total Non-U.S. defined benefit pension plans $ 8.1 $ 10.0 $ 7.9 $ 9.9 $ 10.9 $ 69.2 $ 116.0 U.S. defined benefit pension plans 1.4 1.7 1.6 1.7 1.6 9.4 17.4 Other postretirement benefit plans 0.2 0.2 0.3 0.4 0.4 2.6 4.1 Total $ 9.7 $ 11.9 $ 9.8 $ 12.0 $ 12.9 $ 81.2 $ 137.5 The Company estimates it will make cash contributions, including benefit payments for unfunded plans, of $7.8 million in 2022 to the defined benefit pension plans. The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets as of December 31, 2021 and 2020: Non-U.S. Defined U.S. Defined Benefit Benefit Pension Plans Pension Plans (1) Projected Benefit Obligation December 31, December 31, Exceeds the Fair Value of Plan Assets 2021 2020 2021 2020 Projected benefit obligations $ 294.2 336.2 $ 30.5 — Fair value of plan assets $ 39.6 46.8 $ 18.0 — (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. Non-U.S. Defined U.S. Defined Benefit Benefit Pension Plans Pension Plans (1) Accumulated Benefit Obligation December 31, December 31, Exceeds the Fair Value of Plan Assets 2021 2020 2021 2020 Accumulated benefit obligations $ 268.1 300.6 $ 27.9 — Fair value of plan assets $ 39.6 46.8 $ 18.0 — (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. Plan Assets Plan assets totaled $157.1 million as of December 31, 2021 and 2020, consisting primarily of investments in insurance contracts, as well as equity and debt securities. The Company’s investment strategy with respect to pension assets outside of the United States is to pursue an investment plan consisting of investments in insurance contracts that provide for guaranteed returns. For pension assets inside of the United States, the Company’s investment strategy is to pursue an investment plan that, over the long term, will satisfy the funding objectives of the plan, and generate a total return that provides sufficient assets to fund plan liabilities, subject to a prudent level of risk, while maintaining compliance with various laws and regulations. The Company has established target allocations for each asset category, which is reviewed periodically to assess the need to rebalance the plan. Plan assets outside the United States are invested in a mix of asset classes designed to generate strong long-term growth of principal while avoiding excessive risk. Assets may include, but are not necessarily limited to, equities, fixed income, liquid marketable assets, and less liquid alternatives. Additionally, the portfolio may include assets with the objective of hedging interest rate risk inherent in pension plan liabilities through the use of fixed income assets with various duration exposure. This portfolio diversification is expected to reduce the impact of losses in single investments, and mitigate the risk of volatility, while providing sufficient assets and liquidity to pay benefits and expenses as they come due. Pension plan assets are managed by outside investment managers. The investment managers value our plan assets using quoted market prices, other observable inputs or unobservable inputs. Certain assets are not available on an exchange or in an active market and these investments are valued using their net asset value, which is generally based on the underlying asset values of the investments held in the funds. Investments in the pension plan insurance were valued utilizing unobservable inputs, which are contractually determined based returns, fees, and the present value of the future cash flows, or cash surrender values, of the contracts. The following plan assets are measured at fair value on a recurring basis: December 31, 2021 December 31, 2020 Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Basis of Fair Value Measurements Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) U.S. defined benefit pension plans: Cash $ 0.5 $ 0.5 $ — $ — $ — $ — $ — $ — Investments measured at net asset value (1) Equities 10.6 — — — — — — — Debt 6.9 — — — — — — — Total U.S. defined benefit pension plan assets $ 18.0 $ 0.5 $ — $ — $ — $ — $ — $ — Non-US defined benefit pension plans: Insurance contracts $ 139.1 $ — $ — $ 139.1 $ 157.1 $ — $ — $ 157.1 Total non-U.S. defined benefit pension plan assets $ 139.1 $ — $ — $ 139.1 $ 157.1 $ — $ — $ 157.1 (1) The Company elected to presents certain pension plan assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy. (2) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. The following table reconciles the beginning and ending balances of plan assets measured at fair value using unobservable inputs (Level 3): Insurance Contracts Fair Value Measurements of Plan Assets Using Year ended December 31, Significant Unobservable Inputs (Level 3) 2021 2020 Balance at beginning of period $ 157.1 $ 148.8 Actual return on assets (1.1) 5.3 Settlements (10.1) (14.4) Employer contributions 5.7 6.2 Plan participant contributions 1.7 1.8 Benefits paid (4.0) (4.8) Acquisitions 0.7 - Transfers out of Level 3, net - - Currency impact (10.9) 14.2 Balance at end of period $ 139.1 $ 157.1 The asset allocation for the Company’s pension plans as of December 31, 2021 and 2020, and the target allocation for 2022, by asset category are as follows: Target Allocation Allocation at December 31, Asset category 2022 2021 2020 U.S. defined benefit pension plans (1) : Equities 60.0 % 58.6 % — Debt 40.0 % 38.3 % — Other — 3.1 % — Total U.S. defined benefit pension plans 100.0 % 100.0 % — Non-U.S. defined benefit pension plans: Insurance contracts 100.0 % 100.0 % 100.0 % Total non-U.S. defined benefit pension plans 100.0 % 100.0 % 100.0 % (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. Concentration of Risk The Company mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Company and external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties and through collateral support agreements. Defined Contribution Plans The Company also offers defined contribution plans to eligible employees in the U.S. and in other countries, including Hong Kong, Korea, The Netherlands, Indonesia, Taiwan, and the United Kingdom. The defined contribution plans are comprised of a non-discretionary elective matching contribution component as well as a discretionary non-elective contribution component. Employees participate in the non-discretionary component by contributing a portion of their eligible compensation to the plan, which is partially matched by the Company. Non-elective contributions are made at the discretion of the Company and are based on a combination of eligible employee compensation and performance award targets. During the years ended December 31, 2021, 2020, and 2019, the Company contributed $11.1 million, $10.9 million, and $11.1 million, respectively, to the defined contribution plans. Multiemployer Plans The Company also has a multiemployer plan in The Netherlands for a closed population of employees. The Company’s contributions to the plan are generally determined as a percentage of the participants’ salaries. During the years ended December 31, 2021, 2020, and 2019, the Company recorded expense of $3.9 million, $4.1 million, and $4.3 million, respectively, related to the plan, and made contributions of $3.9 million, $4.0 million, and $4.2 million, respectively, to the plan. The plan was closed at the beginning of 2022 and the employees were provided with a defined contribution plan. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation | |
Share-Based Compensation | NOTE 18—SHARE-BASED COMPENSATION Summary of Share-based Compensation Expense Share-based compensation expense, which is recorded within “Selling, general and administrative expenses” in the consolidated statements of operations, was as follows for the years ended December 31, 2021, 2020, and 2019. Share amounts in the tables below are in whole numbers, unless otherwise indicated. As of December 31, 2021 Year Ended December 31, Unrecognized Weighted 2021 2020 2019 Compensation Cost Average Years 2014 Omnibus Plan Awards RSUs $ 8.0 $ 6.4 $ 7.1 $ 11.6 1.9 Option Awards 4.7 2.8 3.0 3.3 1.5 PSUs 2.5 1.9 2.9 2.8 1.8 Total share-based compensation expense $ 15.2 $ 11.1 $ 13.0 2014 Omnibus Plan In connection with the IPO, the Company’s board of directors approved the 2014 Omnibus Plan, adopted on May 28, 2014 and amended on June 19, 2019, June 9, 2020, and October 8, 2021 under which 6.0 million ordinary shares is the maximum number that may be delivered upon satisfaction of awards granted. Following the IPO, all equity-based awards granted by the Company have been granted under the 2014 Omnibus Plan, which provides for awards of share options, share appreciation rights, restricted shares, unrestricted shares, share units, performance awards, cash awards and other awards convertible into or otherwise based on ordinary shares of the Company. Since the IPO, the board of directors of the Company has approved equity award grants for certain directors, executives, and employees, including RSUs, option awards, and PSUs. Prior to the Redomiciliation, when RSUs vested, option awards exercised, or PSUs vested, shares were issued from the existing pool of treasury shares. Following the Redomiciliation, when these awards vest or exercise, shares are issued from shares authorized unless use of treasury shares is authorized by shareholders. Restricted Share Units The RSUs granted to executives and employees vest in full on the third anniversary of the date of grant, generally subject to the employee remaining continuously employed by the Company through the vesting date. RSUs granted to directors of the Company vest in full on the first anniversary of the date of grant. Upon a termination of employment due to an employee’s death or retirement or a termination of employment by the Company without cause in connection with a restructuring or redundancy or due to the employee’s disability prior to the vesting date, the RSUs will vest in full or in part, depending on the type of termination. In the event employment is terminated for cause, all unvested RSUs will be forfeited. Compensation cost for RSUs is measured at grant date based on the fair value of the award and is recognized ratably as expense over the applicable vesting term. The fair value of RSUs is equal to the fair market value of the Company’s ordinary shares based on the closing price on the date of grant. RSU award holders are entitled to an amount equal to any cash dividend paid by the Company upon one ordinary share for each RSU held by the award holder (“dividend equivalents”). The dividend equivalents are payable in cash only upon vesting of the associated RSUs and do not accrue interest. The following table summarizes the activity for RSUs during the year ended December 31, 2021: Weighted Average Grant Date Restricted Share Units Shares Fair Value per Share Unvested, December 31, 2020 496,910 $ 36.47 Granted 219,990 58.26 Vested (112,187) 50.70 Forfeited (26,801) 37.31 Unvested, December 31, 2021 577,912 $ 41.96 The following table summarizes the weighted average grant date fair value per share of RSUs granted during the years ended December 31, 2021, 2020, and 2019 as well as the total fair value of awards vested during those periods: Restricted Share Units Weighted Average Grant Date Total Fair Value Fair Value per Share of Awards Vested of Grants during Period during Period Year Ended December 31, 2021 $ 58.26 $ 5.7 Year Ended December 31, 2020 $ 24.13 $ 6.10 Year Ended December 31, 2019 $ 48.63 $ 10.90 Option Awards The option awards, which contain an exercise term of nine years from the date of grant, vest in three equal annual installments beginning on the first anniversary of the date of grant, generally subject to the employee remaining continuously employed on the applicable vesting date. Upon a termination of employment due to the employee’s death or retirement or a termination of employment by the Company without cause in connection with a restructuring or redundancy or due to the employee’s disability prior to a vesting date, the option awards will vest in full or will continue to vest on the original vesting schedule, depending on the type of termination. In the event employment is terminated for cause, all vested and unvested option awards will be forfeited. Compensation cost for option awards is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate service period utilizing graded vesting. The following table summarizes the activity for option awards during the year ended December 31, 2021: Weighted Average Weighted Average Aggregate Exercise Price Contractual Intrinsic Option Awards Shares per share Term (years) Value Outstanding as of December 31, 2020 1,399,749 $ 41.19 Granted 301,035 59.87 Exercised (380,098) 29.09 Forfeited (4,904) 47.88 Expired (6,393) 80.61 Outstanding as of December 31, 2021 1,309,389 $ 48.78 6.4 $ 14.9 Exercisable as of December 31, 2021 625,791 $ 55.95 5.1 $ 5.7 Expected to vest as of December 31, 2021 683,598 $ 42.22 7.6 $ 9.2 During the years ended December 31, 2021, 2020, and 2019, the total intrinsic value of option awards exercised was $13.6 million, $1.9 million, and $0.7 million, respectively. The fair value for option awards is computed using the Black-Scholes pricing model, whose inputs and assumptions are determined as of the date of grant. Determining the fair value of the option awards requires considerable judgment, including estimating the expected term of said awards and the expected volatility of the price of the Company’s ordinary shares. The expected volatility used in the Black-Scholes model for option awards granted is predominantly based on the publicly traded history of the Company’s ordinary shares. The expected term of option awards represents the period of time that option awards granted are expected to be outstanding. For all grants of option awards presented herein, 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. The following are the weighted average assumptions used within the Black-Scholes pricing model for grants during the years ended December 31, 2021, 2020, and 2019: Year Ended December 31, 2021 2020 2019 Expected term (in years) 5.50 5.50 5.50 Expected volatility 48.69 % 39.93 % 36.00 % Risk-free interest rate 0.79 % 1.19 % 2.53 % Dividend yield 1.81 % 3.25 % 2.00 % Utilizing the above assumptions, the weighted average grant date fair value per option award granted in the years ended December 31, 2021, 2020, and 2019 was $22.55, $6.51, and $15.40, respectively. Performance Share Units 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% of the original grant, subject to certain limitations, contingent upon the Company’s total shareholder return 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 accumulate on PSUs during the vesting period, are payable in cash, and do not accrue interest. The following table summarizes the activity for PSU awards during the year ended December 31, 2021, at target: Weighted Average Grant Date Performance Share Units Shares Fair Value per Share Unvested, December 31, 2020 155,730 $ 43.51 Granted 49,463 61.06 Cancelled (1) (22,063) 87.77 Forfeited (10,201) 36.15 Unvested, December 31, 2021 172,929 $ 43.32 (1) During the year ended December 31, 2021, PSU award recipients earned 0% of the target PSU awards granted in 2018 based upon the Company’s total shareholder return relative to a pre-defined set of industry peer companies. As a result, the associated PSU awards were cancelled. The fair value for PSU awards is computed using a Monte Carlo valuation model, whose inputs and assumptions are determined as of the date of grant. Determining the fair value of the PSU awards requires considerable judgment, including estimating the expected volatility of the price of the Company’s ordinary shares, the correlation between the Company’s share price and that of its peer companies, and the expected rate of interest. The expected volatility for each grant is determined based on the historical volatility of the Company’s ordinary shares. The expected term of PSU awards represents the length of the performance period. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a duration equivalent to the performance period. The share price is the closing price of the Company’s ordinary shares on the grant date. The following are the weighted average assumptions used within the Monte Carlo valuation model for grants during the years ended December 31, 2021, 2020, and 2019: Year Ended December 31, 2021 2020 2019 Expected term (in years) 3.00 3.00 3.00 Expected volatility 58.00 % 40.50 % 36.40 % Risk-free interest rate 0.20 % 1.16 % 2.58 % Share price $ 61.06 $ 24.30 $ 50.95 Utilizing the above assumptions, the total grant date fair value for PSU awards granted in the years ended December 31, 2021, 2020, and 2019 was $3.0 million, $2.5 million and $6.3 million, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | NOTE 19—RELATED PARTY TRANSACTIONS The Company did not have any significant related party transactions during the years ended December 31, 2021, 2020, and 2019. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segments | |
Segments | NOTE 20—SEGMENTS Beginning in the second quarter of 2021, the Company reported the results of the Synthetic Rubber business as discontinued operations in the consolidated statements of operations for all periods presented, and therefore it is no longer presented as a separate reportable segment. Refer to Note 5 for further information on the classification of the Synthetic Rubber business as discontinued operations, and the related impacts on the Company’s other segment results due to this classification. The information in the tables below has been retroactively adjusted to reflect these changes. The Engineered Materials segment includes the Company’s compounds and blends products sold into higher growth and value applications, such as consumer electronics and medical, as well as soft thermoplastic elastomers (“TPEs”) products which are sold into markets such as footwear and automotive. Additionally, following the PMMA Acquisition on May 3, 2021 and the Aristech Surfaces Acquisition on September 1, 2021, the Engineered Materials segment also includes PMMA and MMA products, which are sold into a variety of applications including automotive, building & construction, medical, consumer electronics, and wellness, among others. The Latex Binders segment produces styrene-butadiene latex (“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 Base Plastics segment contains the results of the acrylonitrile-butadiene-styrene (“ABS”), styrene-acrylonitrile (“SAN”), and polycarbonate (“PC”) businesses, as well as compounds and blends for automotive and other applications. The Polystyrene segment includes a variety of general purpose polystyrenes (“GPPS”) and polystyrene that has been modified with polybutadiene rubber to increase its impact resistant properties (“HIPS”). 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, and ABS resins. Lastly, the Americas Styrenics segment consists solely of the operations of the Company’s 50%-owned joint venture, Americas Styrenics, a producer of both styrene monomer and polystyrene primarily in North America. The following table provides disclosure of the Company’s segment Adjusted EBITDA, which is used to measure segment operating performance and is defined below, for the years ended December 31, 2021, 2020, and 2019. Asset and intersegment sales information by reporting segment is not regularly reviewed or included with the Company’s reporting to the chief operating decision maker. Therefore, this information has not been disclosed below. Refer to Note 3 for the Company’s net sales to external customers by segment for the years ended December 31, 2021, 2020, and 2019. Engineered Latex Base Americas Corporate Year Ended Materials Binders Plastics Polystyrene Feedstocks Styrenics Unallocated Total December 31, 2021 Equity in earnings of unconsolidated affiliates $ — $ — $ — $ — $ — $ 92.7 $ — $ 92.7 Adjusted EBITDA (1) 94.8 106.5 314.2 183.1 33.7 92.7 Investment in unconsolidated affiliates — — — — — 247.8 — 247.8 Depreciation and amortization 71.9 25.1 23.4 10.0 11.5 — 25.6 167.5 Capital expenditures 28.7 29.3 11.9 9.6 13.4 — 24.8 117.7 December 31, 2020 Equity in earnings of unconsolidated affiliates $ — $ — $ — $ — $ — $ 67.0 $ — $ 67.0 Adjusted EBITDA (1) 34.6 76.6 106.0 79.4 3.2 67.0 Investment in unconsolidated affiliates — — — — — 240.1 — 240.1 Depreciation and amortization 7.3 26.1 20.1 9.4 11.8 — 17.9 92.6 Capital expenditures 5.4 22.7 13.9 4.5 9.0 — 11.1 66.6 December 31, 2019 Equity in earnings of unconsolidated affiliates $ — $ — $ — $ — $ — $ 119.0 $ — $ 119.0 Adjusted EBITDA (1) 31.4 76.7 98.7 54.4 6.5 119.0 Investment in unconsolidated affiliates — — — — — 188.1 — 188.1 Depreciation and amortization 8.9 25.9 19.9 10.9 12.8 — 13.1 91.5 Capital expenditures 6.0 21.4 20.6 4.1 8.1 — 23.8 84.0 (1) The Company’s primary measure of segment operating performance is Adjusted EBITDA, which is defined as income from continuing operations before interest expense, net; provision for income taxes; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and benefits, and other items. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects core operating performance by removing the impact of transactions and events that would not be considered a part of core operations. Other companies in the industry may define segment Adjusted EBITDA differently than the Company, and as a result, it may be difficult to use segment Adjusted EBITDA, or similarly-named financial measures, that other companies may use to compare the performance of those companies to the Company’s segment performance. The reconciliation of income before income taxes to segment Adjusted EBITDA is as follows: Year Ended December 31, 2021 2020 2019 Income from continuing operations before income taxes $ 350.5 $ 105.4 $ 99.8 Interest expense, net 79.4 43.6 39.3 Depreciation and amortization 167.5 92.6 91.5 Corporate Unallocated (2) 95.6 81.7 85.5 Adjusted EBITDA Addbacks (3) 132.0 43.5 70.6 Segment Adjusted EBITDA $ 825.0 $ 366.8 $ 386.7 (2) Corporate unallocated includes corporate overhead costs and certain other income and expenses. (3) Adjusted EBITDA addbacks for the years ended December 31, 2021, 2020, and 2019 are as follows: Year Ended December 31, 2021 2020 2019 Net gain on disposition of businesses and assets $ (0.6) $ (0.4) $ (0.7) Restructuring and other charges (Note 21) 9.0 5.6 16.8 Acquisition transaction and integration net costs (benefit) (Note 4) 75.3 9.1 (0.9) Acquisition purchase price hedge loss (gain) (Note 13) 22.0 (7.3) — Asset impairment charges or write-offs (Note 14) 6.8 11.0 — Other items (a) 19.5 25.5 55.4 Total Adjusted EBITDA Addbacks $ 132.0 $ 43.5 $ 70.6 (a) Other items for the year ended December 31, 2021 primarily relate to fees incurred in conjunction with certain of the Company’s strategic initiatives, including our ERP upgrade project. Other items for the years ended December 31, 2020 and 2019 primarily relate to advisory and professional fees incurred in conjunction with the Company’s initiative to transition business services from Dow, including certain administrative services such as accounts payable, logistics, and IT services, which was substantially completed in 2020, as well as fees incurred in conjunction with certain of the Company’s strategic initiatives. Geographic Information As of December 31, 2021, the Company operates 40 manufacturing plants (which include a total of 81 production units) at 33 sites in 15 countries, inclusive of its joint venture. It also operates 11 R&D facilities globally, including technology and innovation development centers. Sales are attributed to geographic areas based on the location where sales originated; long-lived assets are attributed to geographic areas based on asset location. The Company is incorporated under the existing laws of Ireland, as discussed in Note 1, which therefore represents its country of domicile. The Company has no existing long-lived assets or sales generated from this country. As of and for the Year Ended December 31, 2021 2020 2019 United States Sales to external customers $ 928.7 $ 466.6 $ 580.3 Long-lived assets 184.9 43.9 44.9 Right-of-use assets - operating, net 19.5 18.7 10.4 Europe Sales to external customers $ 2,755.8 $ 1,453.0 $ 1,761.5 Long-lived assets 410.3 269.1 254.0 Right-of-use assets - operating, net 61.9 53.9 54.5 Asia-Pacific Sales to external customers $ 1,048.8 $ 753.4 $ 934.6 Long-lived assets 114.5 118.1 123.3 Right-of-use assets - operating, net 3.9 5.2 5.9 Rest of World Sales to external customers $ 94.2 $ 71.6 $ 97.5 Long-lived assets 9.3 — — Right-of-use assets - operating, net — — — Total Sales to external customers (1) $ 4,827.5 $ 2,744.6 $ 3,373.9 Long-lived assets (2) 719.0 431.1 422.2 Right-of-use assets - operating, net (3) 85.3 77.8 70.8 (1) Sales to external customers in Germany represented approximately 12% of the total for each of the years ended December 31, 2021 and 2020, and 10% of the total of the year ended December 31, 2019. Sales to external customers in Hong Kong represented approximately 11% , 14% , and 15% of the total for the years ended December 31, 2021, 2020, and 2019, respectively. Sales to external customers in the Netherlands represented approximately 8% of the total for each of the years ended December 31, 2021, 2020, and 2019. (2) Long-lived assets in Germany represented approximately 12% , 22% , and 21% of the total as of December 31, 2021, 2020, and 2019, respectively. Long-lived assets in The Netherlands represented approximately 14% , 26% , and 26% of the total as of December 31, 2021, 2020, and 2019, respectively. Long-lived assets in Italy represented approximately 22% , 6% , and 5% of the total as of December 31, 2021, 2020, and 2019, respectively. Long-lived assets consist of property, plant and equipment, net, and finance lease ROU assets. (3) Operating lease ROU assets in The Netherlands represented approximately 48% , 66% and 61% of the total as of December 31, 2021, 2020, and 2019, respectively. Operating lease ROU assets in Ireland represented approximately 10% of the total as of December 31, 2021. There were no balances in Ireland as of December 31, 2020 or 2019. . |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring | |
Restructuring | NOTE 21—RESTRUCTURING Refer to the narrative below for discussion of the Company’s restructuring activities included in the tables below. Restructuring charges are included within “Selling, general and administrative expenses” in the consolidated statements of operations. The following table provides detail of the Company’s restructuring charges for the years ended December 31, 2021, 2020, and 2019: Cumulative Year Ended December 31, Life-to-date 2021 2020 2019 Charges Segment Corporate Restructuring Program Accelerated depreciation $ (0.4) $ 2.5 $ 0.4 $ 2.5 Employee termination benefits 0.3 2.5 15.6 18.4 Contract terminations — 2.4 0.4 2.8 Decommissioning and other — 0.2 — 0.2 Corporate Restructuring Program Subtotal $ (0.1) $ 7.6 $ 16.4 $ 23.9 N/A (1) Transformational Restructuring Program Employee termination benefits $ 8.7 $ — $ — $ 8.7 N/A (1) Transformational Restructuring Program Subtotal $ 8.7 $ — $ — $ 8.7 Other Restructurings — 0.5 0.8 Various Total Restructuring Charges $ 8.6 $ 8.1 $ 17.2 (1) As this was identified as a corporate-related activity, the charges related to this restructuring program were not allocated to a specific segment, but rather included within corporate unallocated. The following tables provide a rollforward of the liability balances associated with the Company’s restructuring activities as of December 31, 2021 and 2020. Employee termination benefit and contract termination charges are recorded within “Accrued expenses and other current liabilities” in the consolidated balance sheets. The liability balance as of December 31, 2021 primarily represents activity related to the transformational restructuring program. The liability balance as of December 31, 2020 primarily represents activity related to the corporate restructuring program. No other individual restructuring activity had a material liability balance as of December 31, 2021 or 2020. Balance at Balance at December 31, 2020 Expenses Deductions (1) December 31, 2021 Employee termination benefits $ 7.9 $ 9.0 $ (6.9) $ 10.0 Contract terminations 0.1 — (0.1) — Total $ 8.0 $ 9.0 $ (7.0) $ 10.0 Balance at Balance at December 31, 2019 Expenses Deductions (1) December 31, 2020 Employee termination benefits $ 15.8 $ 3.9 $ (11.8) $ 7.9 Contract terminations 0.7 — (0.6) 0.1 Decommissioning and other — 0.7 (0.7) — Total $ 16.5 $ 4.6 $ (13.1) $ 8.0 (1) Includes primarily payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement. Transformational Restructuring Program Corporate Restructuring Program In November 2019, the Company announced the corporate restructuring program associated with the Company’s shift to a global functional structure and business excellence initiatives to drive greater focus on business process optimization and efficiency, which continued through the year ended December 31, 2021. The corporate restructuring program is substantially completed as of December 31, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | NOTE 22—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss), net of income taxes, consisted of: Cumulative Pension & Other Translation Postretirement Benefit Cash Flow Year Ended December 31, 2021, 2020 and 2019 Adjustments Plans, Net Hedges, Net Total Balance at December 31, 2018 $ (111.8) $ (39.4) $ 8.9 $ (142.3) Other comprehensive income (loss) 5.1 (19.0) (0.7) (14.6) Amounts reclassified from AOCI to net income (1) — 2.1 (7.6) (5.5) Balance at December 31, 2019 $ (106.7) $ (56.3) $ 0.6 $ (162.4) Other comprehensive loss (2.3) (18.3) (9.0) (29.6) Amounts reclassified from AOCI to net income (1) — 2.7 3.2 5.9 Balance as of December 31, 2020 $ (109.0) $ (71.9) $ (5.2) $ (186.1) Other comprehensive income (loss) (5.3) 28.4 3.4 26.5 Amounts reclassified from AOCI to net income (1) — 9.9 2.5 12.4 Balance as of December 31, 2021 $ (114.3) $ (33.6) $ 0.7 $ (147.2) (1) The following is a summary of amounts reclassified from AOCI to net income for the years ended December 31, 2021, 2020, and 2019. Amount Reclassified from AOCI Year Ended December 31, Statement of Operations AOCI Components 2021 2020 2019 Classification Cash flow hedging items Foreign exchange cash flow hedges $ (1.0) $ 0.8 $ (6.7) Cost of sales Interest rate swaps 3.5 2.4 (0.9) Interest expense, net Total before tax 2.5 3.2 (7.6) Tax effect — — — Provision for income taxes Total, net of tax $ 2.5 $ 3.2 $ (7.6) Amortization of pension and other postretirement benefit plan items Prior service credit $ (0.9) $ (1.2) $ (1.1) (a) Net actuarial loss 7.1 4.4 3.4 (a) Curtailment and settlement loss 8.4 0.7 0.8 (a) Total before tax 14.6 3.9 3.1 Tax effect (4.7) (1.2) (1.0) Provision for income taxes Total, net of tax $ 9.9 $ 2.7 $ 2.1 (a) These AOCI components are included in the computation of net periodic benefit costs. Refer to Note 17 for further information. ... |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Earnings Per Share | NOTE 23—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 years ended December 31, 2021, 2020, and 2019. Year Ended December 31, (in millions, except per share data) 2021 2020 2019 Earnings: Net income from continuing operations $ 279.6 $ 62.7 $ 87.1 Net income (loss) from discontinued operations 160.4 (54.8) 4.9 Net income $ 440.0 $ 7.9 $ 92.0 Shares: Weighted average ordinary shares outstanding 38.7 38.3 40.3 Dilutive effect of RSUs, option awards, and PSUs (1) 0.9 0.3 0.4 Diluted weighted average ordinary shares outstanding 39.6 38.6 40.7 Income (loss) per share: Income (loss) per share—basic: Continuing operations 7.22 1.63 2.16 Discontinued operations 4.15 (1.43) 0.12 Income per share—basic $ 11.37 $ 0.20 $ 2.28 Income (loss) per share—diluted: Continuing operations 7.07 1.62 2.14 Discontinued operations 4.05 (1.42) 0.12 Income per share—diluted $ 11.12 $ 0.20 $ 2.26 (1) Refer to Note 18 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 0.6 million, 1.1 million, and 0.6 million for the years ended December 31, 2021, 2020, and 2019, respectively. . . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | NOTE 24 – LEASES The Company's ROU assets and lease liabilities are classified on its consolidated balance sheets as follows: December 31, 2021 2020 Location on Balance Sheet Operating lease ROU assets, net $ 85.3 $ 77.8 Right-of-use assets - operating, net Finance lease ROU assets, net 3.7 7.1 Property, plant, and equipment, net of accumulated depreciation Operating lease liabilities - current portion 18.4 15.5 Current lease liabilities - operating Operating lease liabilities - noncurrent portion 69.2 65.5 Noncurrent lease liabilities - operating Finance lease liabilities - current portion 2.7 3.1 Short-term borrowings and current portion of long-term debt Finance lease liabilities - noncurrent portion 1.0 4.1 Long-term debt, net of unamortized deferred financing fees The components of the Company's lease costs are classified on its consolidated statements of operations as follows: Year Ended December 31, 2021 2020 2019 Finance lease cost: Amortization of lease ROU assets $ 2.7 $ 2.7 $ 0.8 Interest on lease liabilities 0.1 0.2 0.1 Operating lease cost: 20.7 21.0 18.0 Variable lease cost 0.1 0.3 0.2 Total lease cost $ 23.6 $ 24.2 $ 19.1 The table below shows the cash and non-cash activity related to the Company’s lease liabilities during the period: Year Ended December 31, 2021 2020 2019 Cash paid related to lease liabilities: Operating cash flows from operating leases $ 21.4 $ 19.3 $ 16.8 Operating cash flows from finance leases 0.1 0.2 0.1 Financing cash flows from finance leases 2.7 2.7 0.8 Non-cash lease liability activity (1) : ROU assets obtained in exchange for new operating lease liabilities $ 29.0 $ 20.5 $ 85.6 ROU assets obtained in exchange for new finance lease liabilities 0.2 3.0 8.2 (1) Amounts for the year ended December 31, 2019 include the impact of adopting the new lease accounting standard effective January 1, 2019. As of December 31, 2021, the maturities of the Company's operating and finance Maturity of lease liabilities by year 2022 2023 2024 2025 2026 Thereafter Total Lease Payments Less Imputed Interest Lease Liability Operating Leases $ 20.6 $ 17.5 $ 12.7 $ 9.3 $ 6.8 $ 32.3 $ 99.2 $ (11.6) $ 87.6 Finance Leases $ 2.5 $ 0.6 $ 0.6 $ 0.2 $ — $ — $ 3.9 $ (0.2) $ 3.7 Total $ 23.1 $ 18.1 $ 13.3 $ 9.5 $ 6.8 $ 32.3 $ 103.1 $ (11.8) $ 91.3 The following table summarizes the weighted average remaining lease terms and the weighted average discount rates as of December 31, 2021, 2020, and 2019: As of December 31, 2021 2020 2019 Operating leases: Weighted average remaining lease term (in years) 7.9 8.9 9.3 Weighted average discount rate 3.4 % 3.9 % 4.7 % Finance leases: Weighted average remaining lease term (in years) 2.0 2.6 2.9 Weighted average discount rate 2.8 % 2.8 % 3.0 % As of December 31, 2021, the Company has additional operating leases that have not yet commenced of $9.6 million. These leases are expected to commence throughout 2022 with lease terms of 1 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Selected Quarterly Financial Data | |
Selected Quarterly Financial Data | NOTE 25—SELECTED QUARTERLY FINANCIAL DATA (Unaudited) First Second Third Fourth (in millions, except per share data) Quarter Quarter (2) Quarter (2),(3) Quarter (2),(3) 2021 (1) Net sales $ 986.0 $ 1,273.7 $ 1,269.3 $ 1,298.5 Gross profit 188.9 220.0 168.3 121.6 Equity in earnings of unconsolidated affiliates 22.9 30.1 17.1 22.5 Operating income 155.4 151.0 107.8 47.2 Income from continuing operations before income taxes 86.0 156.2 84.9 23.4 Net income from continuing operations 65.8 133.0 79.4 1.4 Net income from discontinued operations, net of income taxes 5.7 18.6 13.7 122.4 (4) Net income 71.5 151.6 93.1 123.8 Net income per share- basic Continuing operations $ 1.71 $ 3.43 $ 2.04 $ 0.04 Discontinued operations 0.15 0.48 0.35 3.16 (4) Net income per share- basic $ 1.86 $ 3.91 $ 2.39 $ 3.20 Net income per share- diluted Continuing operations $ 1.67 $ 3.35 $ 2.01 $ 0.04 Discontinued operations 0.14 0.47 0.35 3.10 (4) Net income per share- diluted $ 1.81 $ 3.82 $ 2.36 $ 3.14 First Second Third Fourth Quarter Quarter (5) Quarter Quarter 2020 (1) Net sales $ 763.0 $ 534.3 $ 679.2 $ 768.1 Gross profit 57.7 23.4 106.3 133.7 Equity in earnings of unconsolidated affiliates 9.8 14.4 18.3 24.6 Operating income (loss) (15.4) (15.1) 78.3 101.8 Income (loss) from continuing operations before income taxes (27.2) (27.2) 67.1 92.7 Net income (loss) from continuing operations (69.4) 25.8 40.2 66.2 Net income (loss) from discontinued operations, net of income taxes 33.2 (154.2) 65.6 0.5 Net income (loss) (36.3) (128.4) 105.8 66.7 Net income (loss) per share- basic: Continuing operations $ (1.80) $ 0.68 $ 1.05 $ 1.73 Discontinued operations 0.86 (4.04) 1.72 0.01 Net income (loss) per share- basic $ (0.94) $ (3.36) $ 2.77 $ 1.74 Net income (loss) per share- diluted: Continuing operations $ (1.80) $ 0.67 $ 1.04 $ 1.70 Discontinued operations 0.86 (4.02) 1.71 0.01 Net income (loss) per share- diluted $ (0.94) $ (3.35) $ 2.75 $ 1.71 (1) Beginning in the second quarter of 2021, the Company reported the results of the Synthetic Rubber business as discontinued operations for all periods presented. Refer to Note 5 for more information. (2) Includes the results of the PMMA Acquisition subsequent to its closing date of May 3, 2021. Refer to Note 4 for more information. (3) Includes the results of the Aristech Surfaces Acquisition subsequent to its closing date of September 1, 2021. Refer to Note 4 for more information. (4) Includes the operating results of the Synthetic Rubber business, which the Company sold on December 1, 2021, as well as the after-tax gain on sale of $117.8 million. Refer to Note 5 for more information. (5) The most significant negative impacts of the COVID-19 pandemic were realized in the second quarter of 2020, noting significant improvement in demand and results in the third and fourth quarters of 2020. |
Schedule II-Financial Statement
Schedule II-Financial Statement Schedule Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Financial Statement Schedule Valuation and Qualifying Accounts | TRINSEO PLC SCHEDULE II—FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS (In millions) Balance at Charged to Deduction Currency Balance at Beginning of Cost and from Translation End of the Period Expense Reserves Adjustments the Period Allowance for doubtful accounts: Year ended December 31, 2021 $ 5.8 $ (1.5) $ (0.2) (a) $ — $ 4.1 Year ended December 31, 2020 5.3 0.2 $ (1.1) (a) $ 1.4 5.8 Year ended December 31, 2019 6.1 (0.7) (0.2) (a) 0.1 5.3 Tax valuation allowances: Year ended December 31, 2021 $ 220.5 $ (89.7) $ — $ (3.1) $ 127.7 Year ended December 31, 2020 218.0 (1.4) $ — $ 3.9 220.5 Year ended December 31, 2019 167.6 50.4 — — 218.0 (a) Amounts written off, net of recoveries. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Business Activities | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements as of December 31, 2021 and 2020 and for each of the three years in the period ended December 31, 2021 are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements of the Company contain the accounts of all entities that are controlled and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. A VIE is defined as a legal entity that has equity investors that do not have sufficient equity at risk for the entity to support its activities without additional subordinated financial support or, as a group, the holders of the equity at risk lack (i) the power to direct the entity’s activities or (ii) the obligation to absorb the expected losses or the right to receive the expected residual returns of the entity. A VIE is required to be consolidated by a company if that company is the primary beneficiary. Refer to Note 12 for further discussion of the Company’s Accounts Receivable Securitization Facility, which qualifies as a VIE and is consolidated within the Company’s financial statements. All intercompany balances and transactions are eliminated. Joint ventures over which the Company has the ability to exercise significant influence that are not consolidated are accounted for by the equity method. |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications pertain primarily to the Company’s entry into an agreement during the second quarter of 2021 to sell its Synthetic Rubber business, as a result of which the Company reclassified its Synthetic Rubber assets and liabilities as held-for-sale and reclassified the operating results of its Synthetic Rubber business, net of taxes, as discontinued operations for all periods presented. Throughout this Annual Report, unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Refer to Note 5 for further information. Additionally, the results herein reflect the impacts of the equity transactions completed in connection with the Redomiciliation on October 8, 2021, described in Note 1 above, including the exchange of Trinseo S.A.’s outstanding ordinary shares on a one-for-one basis for newly issued ordinary shares of Trinseo PLC and the cancellation of Trinseo S.A.’s treasury shares. |
Use of Estimates in Financial Statement Preparation | Use of Estimates in Financial Statement Preparation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual amounts could differ from these estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company uses major financial institutions with high credit ratings to engage in transactions involving cash equivalents. The Company minimizes credit risk in its receivables by selling products to a diversified portfolio of customers in a variety of markets located throughout the world. The Company performs ongoing evaluations of its customers’ credit and generally does not require collateral. The Company maintains an allowance for doubtful accounts for losses resulting from the inability of specific customers to meet their financial obligations, representing its best estimate of probable credit losses in existing trade accounts receivable. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on historical experience. |
Financial Instruments | Financial Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued and other current liabilities, approximate fair value due to their generally short maturities. The estimated fair values of the Company’s 2028 Term Loan B, 2024 Term Loan B, 2029 Senior Notes, and 2025 Senior Notes and, when outstanding, borrowings under its 2026 Revolving Facility and Accounts Receivable Securitization Facility (all of which are defined in Note 12) are determined using Level 2 inputs within the fair value hierarchy. The carrying amounts of borrowings under the 2026 Revolving Facility and Accounts Receivable Securitization Facility approximate fair value as these borrowings bear interest based on prevailing variable market rates. At times, the Company manages its exposure to changes in foreign currency exchange rates, where possible, by entering into foreign exchange forward contracts. Additionally, the Company manages its exposure to variability in interest payments associated with its variable rate debt by entering into interest rate swap agreements. When outstanding, all derivatives, whether designated in hedging relationships or not, are required to be recorded on the consolidated balance sheets at fair value. The fair value of the derivatives is determined from sources independent of the Company, including the financial institutions which are party to the derivative instruments. The fair value of derivatives also considers the credit default risk of the parties involved. If the derivative is not designated for hedge accounting treatment, changes in the fair value of the underlying instrument and settlements are recognized in earnings. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative and the hedged item are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative will be recorded in accumulated other comprehensive income or loss (“AOCI”) and will be recognized in the consolidated statements of operations when the hedged item affects earnings or it becomes probable that the forecasted transaction will not occur. If the derivative is designated as a net investment hedge, to the extent it is deemed to be effective, the change in the fair value of the derivative will be recorded within the cumulative translation adjustment account as a component of AOCI and the resulting gains or losses will be recognized in the consolidated statements of operations when the hedged net investment is either sold or substantially liquidated. As of December 31, 2021 and 2020, the Company had certain foreign exchange forward contracts outstanding that were not designated for hedge accounting treatment and certain foreign exchange forward contracts and interest rate swap agreements that were designated as cash flow hedges. As of December 31, 2021 and 2020, the Company also had certain fixed-for-fixed cross currency swaps (“CCS”) outstanding, which swap U.S. dollar principal and interest payments on the Company’s 2025 Senior Notes for euro-denominated payments. The Company’s CCS have been designated as a hedge of its net investment in certain European subsidiaries. Forward contracts, interest rate swaps, and cross currency swaps 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. The Company records these derivative instruments on a net basis, by counterparty within the consolidated balance sheets. The Company presents the cash receipts and payments from hedging activities in the same category as the cash flows from the items subject to hedging relationships. As the items subject to economic hedging relationships are the Company’s operating assets and liabilities, the related cash flows are classified within operating activities in the consolidated statements of cash flows. Refer to Notes 13 and 14 for further information on the Company’s derivative instruments and their fair value measurements. |
Foreign Currency Translation | Foreign Currency Translation For the majority of the Company’s subsidiaries, the local currency has been identified as the functional currency. For remaining subsidiaries, the U.S. dollar has been identified as the functional currency due to the significant influence of the U.S. dollar on their operations. Gains and losses resulting from the translation of various functional currencies into U.S. dollars are recorded within the cumulative translation adjustment account as a component of AOCI in the consolidated balance sheets. The Company translates asset and liability balances at exchange rates in effect at the end of the period and income and expense transactions at the average exchange rates in effect during the period. Gains and losses resulting from foreign currency transactions are recorded within “Other expense, net” in the consolidated statements of operations. For the years ended December 31, 2021, 2020, and 2019, the Company recognized net foreign exchange transaction gains (losses) of $(61.9) million, $24.4 million, and $(6.4) million, respectively. These amounts exclude the impacts of foreign exchange forward contracts discussed above. |
Environmental Matters | Environmental Matters Accruals for environmental matters are recorded when it is considered probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress, or as additional technical or legal information become available. Accruals for environmental liabilities are recorded within “Other noncurrent obligations” in the consolidated balance sheets at undiscounted amounts. As of December 31, 2021, there was $4.4 Environmental costs are capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction or normal operation of a long-lived asset. Any costs related to environmental contamination treatment and clean-ups are charged to expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents generally include time deposits or highly liquid investments with original maturities of three months or less and no material liquidity fee or redemption gate restrictions. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value (“NRV”), with cost being determined on the first-in, first-out (“FIFO”) method. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal, and transportation. The Company periodically reviews its inventory for excess or obsolete inventory and will write-down the excess or obsolete inventory value to its NRV, if applicable. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost less accumulated depreciation and impairment, if applicable, and are depreciated over their estimated useful lives using the straight-line method. Expenditures for maintenance and repairs are recorded in the consolidated statements of operations as incurred. Expenditures that significantly increase asset value, extend useful asset lives or adapt property to a new or different use are capitalized. These expenditures include planned major maintenance activities, or turnaround activities, that increase the output of manufacturing facilities or improve production efficiency as compared to pre-turnaround operations. As of December 31, 2021 and 2020, $28.0 million and $29.1 million, respectively, of the Company’s net costs related to turnaround activities were capitalized within “Deferred charges and other assets” in the consolidated balance sheets, and are being amortized over the period until the next scheduled turnaround. The Company periodically evaluates actual experience to determine whether events and circumstances have occurred that may warrant revision of the estimated useful lives of property, plant and equipment. Engineering and other costs directly related to the construction of property, plant and equipment are capitalized as construction in progress until construction is complete and such property, plant and equipment is ready and available to perform its specifically assigned function. The Company also capitalizes interest as a component of the cost of capital assets constructed for its own use. Upon retirement or other disposal, the asset cost and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds, is charged or credited to income. |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on a discounted cash flow analysis utilizing market participant assumptions. Refer to Note 14 for further information on the Company’s impairment charges recorded for the years ended December 31, 2021 and 2020. Long-lived assets to be disposed of by sale are classified as held-for-sale and are reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of in a manner other than by sale are classified as held-and-used until they are disposed. As discussed above in Note 2 – Basis of Presentation and Principles of Consolidation, |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records goodwill when the purchase price of a business acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. The Company utilizes a market approach and an income approach (under the discounted cash flow method) to calculate the fair value of its reporting units. When supportable, the Company employs the qualitative assessment of goodwill impairment prescribed by Accounting Standards Codification (“ASC”) 350. The annual impairment assessment is completed using a measurement date of October 1. No goodwill impairment losses were recorded in the years ended December 31, 2021, 2020, and 2019. Finite-lived intangible assets, such as developed technology, customer relationships, tradenames, and computer software for internal use are amortized on a straight-line basis over their estimated useful life and are reviewed for impairment or obsolescence if events or changes in circumstances indicate that their carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. No intangible asset impairment losses were recorded in the years ended December 31, 2021, 2020, and 2019. Acquired developed technology, customer relationships, and tradenames are recorded at fair value upon acquisition and are amortized using the straight-line method over the estimated useful life. The Company determines amortization periods for these assets based on its assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. This includes estimates of expected period of future economic benefit, customer retention rates, and competitive advantage related to existing processes and procedures at the date of acquisition. Significant changes to any of these factors may result in a reduction in the useful life of these assets. |
Leases | Leases The Company accounts for its lease arrangements in accordance with ASC 842, which it adopted effective January 1, 2019 using the modified retrospective approach. The Company has leases for certain of its plant and warehouse sites, office spaces, rail cars, storage facilities, and equipment. The Company determines if an arrangement includes a lease at inception of the contract. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The lease term represents the non-cancelable period of the lease, including any lessee options to renew, extend, or terminate which are considered to be reasonably certain of exercise. As the interest rate implicit in the Company’s lease contract is typically not readily available, the Company uses its incremental borrowing rate based on relevant information available at the lease commencement date to determine the weighted average discount rate used to calculate the net present value of lease payments. The Company recognizes lease expense for fixed lease payments on operating leases on a straight-line basis over the lease term, while variable lease payments are recognized as incurred. For leases across all asset classes in which the Company is a lessee, the Company does not separate non-lease components from lease components. Refer to Note 24 for further information on the Company’s leases. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates Investments in unconsolidated affiliates in which the Company has the ability to exercise significant influence (generally, 20% to 50%-owned companies) are accounted for using the equity method. Investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recorded whenever a decline in fair value of an investment in an unconsolidated affiliate below its carrying amount is determined to be other-than-temporary. The Company uses the cumulative earnings approach for presenting distributions received from equity method investees in the consolidated statements of cash flows. |
Deferred Financing Fees | Deferred Financing Fees Capitalized fees and costs incurred in connection with the Company’s recognized debt liabilities are presented in the consolidated balance sheets as a direct reduction from the carrying value of those debt liabilities, consistent with debt discounts. Deferred financing fees related to the Company’s revolving debt facilities are included within “Deferred charges and other assets” in the consolidated balance sheets. Deferred financing fees on the Company’s term loan and senior note financing arrangements are amortized using the effective interest method over the term of the respective agreement. Deferred financing fees on the Company’s revolving facilities and the Accounts Receivable Securitization Facility are amortized using the straight-line method over the term of the respective facility. Amortization of deferred financing fees is recorded in “Interest expense, net” within the consolidated statements of operations. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restrictions on the Company’s cash and cash equivalents are primarily related to customs requirements, and are included within “Other current assets” in the consolidated balance sheets. As of December 31, 2021 and 2020, the Company had no amounts recorded as restricted cash and cash equivalents. |
Sales | Sales For all material contracts with customers, sales are recognized and control is transferred at a point in time when the Company satisfies the performance obligations according to the terms of the contract, and when title and the risk of loss is passed to the customer. Title and risk of loss varies by region and customer and is determined based upon the purchase order received from the customer and the applicable contractual terms or jurisdictional standards. The Company receives cash equal to the invoice price for most product sales, subject to cash sales incentives with certain customers, with payment terms generally ranging from 10 to 90 days (with an approximate weighted average of 55 days as of December 31, 2021), also varying by segment and region. Certain of the Company’s contracts with customers contain multiple performance obligations, most commonly due to the sale of multiple distinct products. The transaction price within these contracts is allocated between these separate and distinct products based on their stand-alone selling prices, as defined within the contract. The Company’s products are typically sold at observable stand-alone sales values, which are used to determine the estimated stand-alone selling price. The stand-alone selling prices of the Company’s products are generally based, in part, on the current or forecasted costs of key raw materials, but are often subject to a predetermined lag period for the pass through of these costs. As such, contracts with customers typically include provisions that allow for the changes in stand-alone selling prices to reflect the pass through of changes in raw material costs, often using pricing formulas that utilize commodity indices. In cases where the Company’s transaction price is considered variable at the point of revenue recognition, the ‘most likely amount’ method is used to estimate the effect of any related uncertainty. In formulating this estimate, the Company considers all historical, current, and forecasted information that is reasonably available to identify a reasonable number of possible consideration amounts. Once the transaction price, including impacts of variable consideration, is estimated, revenue is recognized only to the extent that it is probable that a subsequent change in the estimate would not result in a significant revenue reversal. Furthermore, if the Company is not able to rely on observable stand-alone selling prices, the ‘expected cost plus a margin approach’ is utilized to estimate the stand-alone selling price of each performance obligation, primarily utilizing historical experience. During the year ended December 31, 2021, the impact of recognizing changes in selling prices related to prior periods was immaterial. Standard terms of delivery are included in contracts of sale, order confirmation documents, and invoices. Sales and other taxes that the Company collects concurrent with sales-producing activities are excluded from “Net sales” and included as a component of “Cost of sales” in the consolidated statements of operations. Additionally, freight and any directly related costs of transporting finished products to customers are accounted for as fulfillment costs and are also included within “Cost of sales.” The amount of net sales recognized varies with changes in returns, rebates, cash sales incentives, and other allowances offered to customers based on the Company's experience. For arrangements where the period between customer payment and transfer of goods/services is determined to be one year or less at contract inception, the Company applies the practical expedient exception available under ASC 606 and does not adjust the promised amount of consideration under the contract for the effects of a significant financing component. Additionally, the Company’s incremental costs of obtaining contracts are expensed as incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less, and are included within “Selling, general and administrative expenses” in the consolidated statements of operations, pursuant to the practical expedient in ASC 606. |
Cost of Sales | Cost of Sales The Company classifies the costs of manufacturing and distributing its products as cost of sales. Manufacturing costs include raw materials, utilities, packaging, employee salary and benefits, and fixed manufacturing costs associated with production. Fixed manufacturing costs include such items as plant site operating costs and overhead, production planning, depreciation and amortization, repairs and maintenance, environmental, and engineering costs. Distribution costs include shipping and handling costs. Freight and any directly related costs of transporting finished products to customers are also included within cost of sales. As discussed above, inventory costs are recorded within cost of sales utilizing the FIFO method. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative (“SG&A”) expenses are generally charged to expense as incurred. SG&A expenses are the cost of services performed by the marketing and sales functions (including sales managers, field sellers, marketing research, marketing communications and promotion and advertising materials) and by administrative functions (including product management, R&D, business management, customer invoicing, human resources, information technology, legal and finance services, such as accounting and tax). Salary and benefit costs, including share-based compensation, for these sales personnel and administrative staff are included within SG&A expenses. R&D expenses include the cost of services performed by the R&D function, including technical service and development, process research including pilot plant operations, and product development. The Company also includes restructuring charges within SG&A expenses. Total R&D costs included in SG&A expenses were $63.9 million, $42.6 million, and $38.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. The Company expenses promotional and advertising costs as incurred to SG&A expenses. Total promotional and advertising expenses were $1.1 million, $1.3 million, and $1.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. Restructuring charges included within SG&A expenses were $8.6 million, $7.4 million, and $17.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. Refer to Note 21 for further information. |
Pension and Postretirement Benefits Plans | Pension and Postretirement Benefits Plans The Company has various defined benefit plans, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company also provides certain health care and life insurance benefits to retired employees in the United States. The U.S.-based plans provide health care benefits, including hospital, physicians’ services, drug and major medical expense coverage, and life insurance benefits. Accounting for defined benefit pension plans and other postretirement benefit plans, and any curtailments and settlements thereof, requires various assumptions, including, but not limited to, discount rates, expected rates of return on plan assets, and future compensation growth rates. The Company evaluates these assumptions at least once each year, or as facts and circumstances dictate, and makes changes as conditions warrant. A settlement is a transaction that is an irrevocable action that relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and that eliminates significant risks related to the obligation and the assets used to effect the settlement. When a settlement occurs, the Company does not record settlement gains or losses during interim periods when the cost of all settlements in a year is less than or equal to the sum of the service cost and interest cost components of net periodic benefit cost for the plan in that year. |
Income Taxes | Income Taxes The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The Company is, or has been, subject to income taxes in Ireland, Luxembourg, the United States and numerous other foreign jurisdictions, and is subject to audit within these jurisdictions. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision is made for income taxes on unremitted earnings of subsidiaries and affiliates, unless such earnings are deemed to be indefinitely invested. The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The current portion of uncertain income taxes positions is recorded in “Income taxes payable,” while the long-term portion is recorded in “Other noncurrent obligations” in the consolidated balance sheets. |
Share-based Compensation | Share-based Compensation Refer to Note 18 for detailed discussion regarding the Company’s share-based compensation award programs. In connection with the Company’s initial public offering (“IPO”), the Company’s board of directors approved the 2014 Omnibus Plan. Since that time, certain equity grants have been awarded, comprised of restricted share units (“RSUs”), options to purchase shares (“option awards”), and performance share units (“PSUs”). Share-based compensation expense recognized in the consolidated financial statements is based on awards that are expected to vest as of their date of grant. The Company’s policy election is to recognize forfeitures as incurred. Compensation costs for the RSUs are measured at the grant date based on the fair value of the award and are recognized ratably as expense over the applicable vesting term. The fair value of RSUs is equal to the fair market value of the Company’s ordinary shares based on the closing price on the date of grant. Dividend equivalents accumulate on RSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated RSUs vest. Compensation costs for the option awards are measured at the grant date based on the fair value of the award and are recognized as expense over the appropriate service period utilizing graded vesting. The fair value for option awards is computed using the Black-Scholes pricing model, which uses inputs and assumptions determined as of the date of grant. Compensation costs for the PSUs are measured at the grant date based on the fair value of the award, which is computed using a Monte Carlo valuation model, and are recognized ratably as expense over the applicable vesting term. Dividend equivalents accumulate on PSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated PSUs vest. |
Treasury Shares Policy Text Block | Treasury Shares The Company may, from time to time, repurchase its ordinary shares at prevailing market rates. Share repurchases are recorded at cost in “Treasury shares” within shareholders’ equity in the consolidated balance sheets. It is the Company’s policy that, to the extent authorized by shareholders, as RSUs, PSUs, and option awards vest or are exercised, ordinary shares will be issued from the existing pool of treasury shares on a first-in-first-out basis. Refer to Note 18 for details of vesting for RSUs and PSUs as well as the exercises of option awards. |
Deferred Ordinary Shares | Deferred Ordinary Shares The Company has 0.025 million deferred ordinary shares of €1.00 each at par, which are issued and outstanding as of December 31, 2021 |
Recent Accounting Guidance | Recent Accounting Guidance In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The amended guidance includes removal of certain exceptions to the general principles of Accounting Standards Codification 740, Income Taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The Company adopted the guidance effective January 1, 2021, noting that adoption did not have a material impact on its consolidated financial statements. |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Engineered Latex Base Year Ended Materials Binders Plastics Polystyrene Feedstocks Total December 31, 2021 United States $ 302.1 $ 314.1 $ 298.2 $ — $ 14.3 $ 928.7 Europe 294.9 573.6 942.8 688.7 255.8 2,755.8 Asia-Pacific 151.2 286.6 178.6 430.1 2.3 1,048.8 Rest of World 6.8 9.1 78.3 — — 94.2 Total $ 755.0 $ 1,183.4 $ 1,497.9 $ 1,118.8 $ 272.4 $ 4,827.5 December 31, 2020 United States $ 35.8 $ 219.2 $ 203.3 $ — $ 8.3 $ 466.6 Europe 55.4 340.9 513.7 408.0 135.0 1,453.0 Asia-Pacific 103.3 200.1 136.9 290.9 22.2 753.4 Rest of World 0.4 6.9 64.3 — — 71.6 Total $ 194.9 $ 767.1 $ 918.2 $ 698.9 $ 165.5 $ 2,744.6 December 31, 2019 United States $ 38.2 $ 263.7 $ 267.7 $ — $ 10.7 $ 580.3 Europe 60.3 388.5 675.6 448.8 188.3 1,761.5 Asia-Pacific 111.3 239.3 126.9 360.6 96.5 934.6 Rest of World 0.1 11.3 86.1 — — 97.5 Total $ 209.9 $ 902.8 $ 1,156.3 $ 809.4 $ 295.5 $ 3,373.9 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Acquisition [Line Items] | |
Schedule of unaudited pro forma financial information | Year Ended December 31, 2021 2020 Net sales $ 5,162.3 $ 3,443.7 Net income (loss) $ 498.5 $ (61.4) Income (loss) from continuing operations $ 338.1 $ (6.6) |
PMMA Business | |
Business Acquisition [Line Items] | |
Schedule of components of the consideration paid | Initial cash purchase price paid (1) $ 1,369.0 Post-closing purchase price adjustments (2) (4.1) Total purchase price consideration $ 1,364.9 (1) Represents initial cash purchase price paid on May 3, 2021. (2) Post-closing purchase price adjustments relate primarily to consideration for final working capital adjustments and certain assets at the Porto Marghera, Italy manufacturing site which were legally transferred to Trinseo subsequent to the closing date due to local transfer restrictions. These post-closing purchase price adjustments were paid in the fourth quarter of 2021. |
Schedule of purchase price allocation | May 3, 2021 Cash and cash equivalents $ 10.4 Accounts receivable 19.1 Inventories (1) 78.9 Other current assets 8.7 Property, plant and equipment 255.4 Other intangible assets (2) Customer relationships 326.6 Developed technology 133.0 Trade names 46.0 Other amortizable intangible assets 0.4 Right-of-use assets - operating 4.1 Deferred charges and other assets 27.9 Total fair value of assets acquired 910.5 Accounts payable (14.5) Current lease liabilities - operating (1.7) Income taxes payable (0.3) Accrued expenses and other current liabilities (10.3) Noncurrent lease liabilities - operating (2.5) Deferred income tax liabilities (41.0) Other noncurrent obligations (3) (23.2) Total fair value of liabilities assumed (93.5) Net identifiable assets acquired 817.0 Purchase price consideration 1,364.9 Goodwill (4) $ 547.9 (1) Fair value of finished goods inventory acquired included a step-up in the value of approximately $10.1 million, which was fully amortized during the year ended December 31, 2021 within "Cost of sales" on the consolidated statements of operations as the related inventory was sold to customers. (2) The expected weighted average useful life of the acquired intangible assets are 13 years for customer relationships, 10 years for developed technology, 16 years for trade names, and 1 - 5 years for other amortizable intangible assets. (3) Includes $18.3 million of net pension and other employee benefits assumed as part of the PMMA Acquisition. (4) Goodwill largely consists of strategic and synergistic opportunities resulting from combining the PMMA business with the Company’s existing businesses and is allocated entirely to the Engineered Materials segment. Approximately $301.0 million of goodwill related to this acquisition will be deductible for income tax purposes based on the preliminary purchase price. |
Aristech Surfaces L L C [Member] | |
Business Acquisition [Line Items] | |
Schedule of purchase price allocation | September 1, 2021 Cash and cash equivalents $ 1.7 Accounts receivable 26.9 Inventories (1) 30.3 Other current assets 1.6 Property, plant and equipment 82.9 Other intangible assets (2) Customer relationships 140.0 Developed technology 52.5 Trade names 10.0 Other amortizable intangible assets 0.3 Right-of-use assets - operating 2.0 Deferred income tax assets 1.5 Total fair value of assets acquired 349.7 Accounts payable (13.8) Current lease liabilities - operating (0.4) Accrued expenses and other current liabilities (3.1) Noncurrent lease liabilities - operating (1.6) Other noncurrent obligations (1.4) Total fair value of liabilities assumed (20.3) Net identifiable assets acquired 329.4 Purchase price consideration 449.5 Goodwill (3) $ 120.1 (1) Fair value of work-in-process and finished goods inventory acquired included a step-up in the value of approximately $6.9 million, which was fully amortized during the year ended December 31, 2021 within "Cost of sales" on the consolidated statements of operations as the related inventory was sold to customers. (2) The expected weighted average useful life of the acquired intangible assets are 13 years for customer relationships, 11 years for developed technology, and 10 years for trade names and 1 year for other amortizable intangible assets. (3) Goodwill largely consists of strategic and synergistic opportunities resulting from combining Aristech Surfaces with the Company’s existing businesses and is allocated entirely to the Engineered Materials segment. All of the goodwill related to this acquisition will be deductible for income tax purposes. |
Divestitures and Discontinued_2
Divestitures and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Emulsion Polymers, Synthetic Rubber [Member] | Discontinued Operations, Held-for-sale [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of the assets and liabilities classified as held-for-sale and results reflected as discontinued operations | December 31, 2020 (1) Assets Current assets Inventories $ 60.0 Total current assets 60.0 Property, plant and equipment, net 170.3 Other assets Goodwill 12.1 Other intangible assets, net 20.2 Deferred charges and other assets 25.6 Total other assets 57.9 Total assets held-for-sale $ 288.2 Liabilities Current liabilities Current liabilities 0.4 Total current liabilities 0.4 Noncurrent liabilities Other noncurrent obligations 42.3 Total noncurrent liabilities 42.3 Total liabilities held-for-sale $ 42.7 (1) Amounts as of December 31, 2020 reflect the amendment to the sale agreement executed on October 21, 2021, whereby net working capital (excluding inventory) was removed from the net assets being transferred with the sale, in exchange for which the working capital target of $47.0 million was removed from the purchase price. Year Ended December 31, 2021 2020 2019 Net sales $ 478.9 $ 319.7 $ 441.3 Cost of sales 408.0 326.3 415.8 Gross profit (loss) 70.9 (6.6) 25.5 Selling, general and administrative expenses 21.0 23.6 20.0 Impairment charges — 28.1 — Operating income (loss) 49.9 (58.3) 5.5 Gain on sale of businesses and other assets (133.6) — — Other expense, net 2.5 1.5 0.6 Income (loss) from discontinued operations before income taxes 181.0 (59.8) 4.9 Provision for (benefit from) income taxes 20.6 (5.0) — Net income (loss) from discontinued operations $ 160.4 $ (54.8) $ 4.9 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in Unconsolidated Affiliates | |
Summarized Financial Information of Unconsolidated Affiliates | December 31, 2021 2020 Current assets $ 447.7 $ 339.5 Noncurrent assets 254.2 266.1 Total assets $ 701.9 $ 605.6 Current liabilities $ 193.6 $ 123.9 Noncurrent liabilities 31.4 33.9 Total liabilities $ 225.0 $ 157.8 Year Ended December 31, 2021 2020 2019 Sales $ 1,822.3 $ 1,115.6 $ 1,486.1 Gross profit $ 253.8 $ 130.4 $ 243.2 Net income $ 199.0 $ 80.5 $ 192.5 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts Receivable | December 31, 2021 2020 Trade receivables $ 659.1 $ 444.6 Non-income tax receivables 53.9 48.0 Other receivables 31.3 42.4 Less: allowance for doubtful accounts (4.1) (5.8) Total $ 740.2 $ 529.2 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | |
Schedule of Inventories | December 31, December 31, 2021 2020 Finished goods $ 279.2 $ 132.9 Raw materials and semi-finished goods 303.9 161.7 Supplies 37.9 29.5 Total $ 621.0 $ 324.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Estimated Useful December 31, Lives (Years) 2021 2020 Land N/A $ 86.1 $ 56.7 Land and waterway improvements 1 - 20 21.9 21.1 Buildings 10 - 50 145.7 81.7 Machinery and equipment 3 - 10 874.5 675.8 Leasehold interests 9 - 40 39.8 39.4 Other property 1 - 20 51.9 51.0 Construction in process N/A 55.6 30.1 Property, plant and equipment 1,275.5 955.8 Less: accumulated depreciation (556.5) (524.7) Property, plant and equipment, net $ 719.0 $ 431.1 |
Schedule of Other Items Related to Property Plant and Equipment | Year Ended December 31, 2021 2020 2019 Depreciation expense $ 87.5 $ 51.6 $ 59.5 Capitalized interest $ 1.7 $ 2.1 $ 3.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets | |
Changes in Carrying Amount of Goodwill, by Segment | Engineered Latex Base Americas Materials Binders Plastics Polystyrene Feedstocks Styrenics Total Balance at December 31, 2019 $ 14.6 $ 15.6 $ 22.1 $ 4.4 $ — $ — $ 56.7 Foreign currency impact 1.4 1.5 2.1 0.4 — — 5.4 Balance at December 31, 2020 $ 16.0 $ 17.1 $ 24.2 $ 4.8 $ — $ — $ 62.1 Acquisitions (Note 4) 668.0 — — — — — 668.0 Foreign currency impact (16.7) (1.2) (1.8) (0.3) — — (20.0) Balance at December 31, 2021 $ 667.3 $ 15.9 $ 22.4 $ 4.5 $ — $ — $ 710.1 |
Schedule of Other Intangible Assets | December 31, 2021 December 31, 2020 Estimated Useful Gross Carrying Accumulated Gross Carrying Accumulated Life (Years) Amount Amortization Net Amount Amortization Net Developed Technology 9 - 15 $ 321.4 $ (119.3) $ 202.1 $ 157.2 $ (107.8) $ 49.4 Customer Relationships 13 - 19 477.1 (23.4) 453.7 15.2 (2.7) 12.5 Software 5 - 10 162.3 (93.8) 68.5 156.1 (67.6) 88.5 Software in development N/A 39.7 — 39.7 10.6 — 10.6 Tradenames 10 - 16 53.0 (2.1) 50.9 — — — Other 1 - 5 12.4 (3.5) 8.9 5.0 (3.4) 1.6 Total $ 1,065.9 $ (242.1) $ 823.8 $ 344.1 $ (181.5) $ 162.6 |
Estimated Amortization Expense for Next Five Years | Estimated Amortization Expense for the Next Five Years 2022 2023 2024 2025 2026 $ 94.7 $ 82.9 $ 75.3 $ 68.0 $ 62.4 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable | December 31, 2021 2020 Trade payables $ 516.8 $ 313.9 Other payables 73.5 41.5 Total $ 590.3 $ 355.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Debt [Table Text Block] | December 31, 2021 Interest Rate as of December 31, 2021 Maturity Date Carrying Amount Unamortized Deferred Financing Fees (1) Total Debt, Less Unamortized Deferred Financing Fees Senior Credit Facility 2024 Term Loan B 2.104% September 2024 $ 670.4 $ (8.0) $ 662.4 2028 Term Loan B 2.604% May 2028 742.8 (17.0) 725.8 2026 Revolving Facility (2) Various May 2026 — — — 2029 Senior Notes 5.125% April 2029 450.0 (14.7) 435.3 2025 Senior Notes 5.375% September 2025 500.0 (5.0) 495.0 Accounts Receivable Securitization Facility (3) Various November 2024 — — — Other indebtedness Various Various 5.6 — 5.6 Total debt $ 2,368.8 $ (44.7) $ 2,324.1 Less: current portion (4) (18.5) Total long-term debt, net of unamortized deferred financing fees $ 2,305.6 December 31, 2020 Interest Rate as of December 31, 2020 Maturity Date Carrying Amount Unamortized Deferred Financing Fees (1) Total Debt, Less Unamortized Deferred Financing Fees Senior Credit Facility 2024 Term Loan B 2.146% September 2024 $ 677.3 $ (10.8) $ 666.5 2022 Revolving Facility (2) Various September 2022 — — — 2025 Senior Notes 5.375% September 2025 500.0 (6.2) 493.8 Accounts Receivable Securitization Facility (3) Various September 2021 — — — Other indebtedness Various Various 10.0 — 10.0 Total debt $ 1,187.3 $ (17.0) $ 1,170.3 Less: current portion (4) (12.2) Total long-term debt, net of unamortized deferred financing fees $ 1,158.1 (1) This caption does not include unamortized deferred financing fees of $1.4 million and $1.6 million as of December 31, 2021 and 2020, respectively, related to the Company’s revolving facilities, which are included within “Deferred charges and other assets” on the consolidated balance sheets. (2) On May 3, 2021, in conjunction with the PMMA Acquisition, the Company extended its Revolving Facility (previously the “2022 Revolving Facility,” now the “2026 Revolving Facility”), originally maturing in September 2022, to May 2026, as described further below. As of December 31, 2021, under the 2026 Revolving Facility, the Company had a capacity of $375.0 million and funds available for borrowing of $368.6 million (net of $6.4 million outstanding letters of credit). Additionally, the Company is required to pay a quarterly commitment fee in respect of any unused commitments under this facility equal to 0.375% per annum. (3) On August 27, 2021, in conjunction with the Aristech Surfaces Acquisition, the Company drew $150.0 million on its Accounts Receivable Securitization Facility, which was fully repaid as of December 31, 2021. In September 2021, the Company extended the maturity date of the facility to November 2021 and then further amended the facility in November 2021, which included extension of the maturity date to November 2024. As of December 31, 2021, this facility had a borrowing capacity of $150.0 million, and the Company had approximately $150.0 million of funds available for borrowing under this facility, based on the pool of eligible accounts receivable. (4) As of December 31, 2021, the current portion of long-term debt was primarily related to $14.5 million of the scheduled future principal payments on both the 2024 Term Loan B and 2028 Term Loan B. As of December 31, 2020, the current portion of long-term debt was primarily related to $7.0 million of scheduled future principal payments on the 2024 Term Loan B. |
2029 Senior Notes | |
Redemption Price as Percentage of Principal Amount to Applicable Date of Redemption | 12-month period commencing April 1 in Year Percentage 2024 102.563 % 2025 101.281 % 2026 and thereafter 100.000 % |
2025 Senior Notes | |
Redemption Price as Percentage of Principal Amount to Applicable Date of Redemption | 12-month period commencing September 1 in Year Percentage 2020 102.688 % 2021 101.792 % 2022 100.896 % 2023 and thereafter 100.000 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments [Abstract] | |
Notional Amounts of Most Significant Net Foreign Exchange Hedge Positions Outstanding | December 31, Buy / (Sell) 2021 Euro $ (512.5) Chinese Yuan $ (44.7) Swiss Franc $ 25.1 New Taiwan Dollar $ 21.2 Mexican Peso $ (11.7) |
Schedule of Effect of Derivative Instruments on Statements of Operations | Location and Amount of Gain (Loss) Recognized in Statements of Operations Year Ended December 31, 2021 Cost of sales Interest expense, net Acquisition purchase price hedge gain (loss) Other expense, net Total amount of income (expense) line items presented in the statements of operations, which include the effects of derivative instruments $ (4,128.6) $ (79.4) $ (22.0) $ (9.5) Effects of cash flow hedge instruments: Foreign exchange cash flow hedges Amount of gain reclassified from AOCI into income $ 1.0 $ — $ — $ — Interest rate swaps Amount of loss reclassified from AOCI into income $ — $ (3.5) $ — $ — Effects of net investment hedge instruments: Cross currency swaps Amount of gain excluded from effectiveness testing $ — $ 7.4 $ — $ — Effects of derivatives not designated as hedge instruments: Foreign exchange forward contracts Amount of gain (loss) recognized in income $ — $ — $ (22.0) $ 63.2 Location and Amount of Gain (Loss) Recognized in Statements of Operations Year Ended December 31, 2020 Cost of sales Interest expense, net Acquisition purchase price hedge gain (loss) Other expense, net Total amount of income (expense) line items presented in the statements of operations, which include the effects of derivative instruments $ (2,423.5) $ (43.6) $ 7.3 $ (7.9) Effects of cash flow hedge instruments: Foreign exchange cash flow hedges Amount of loss reclassified from AOCI into income $ (0.8) $ — $ — $ — Interest rate swaps Amount of loss reclassified from AOCI into income $ — $ (2.4) $ — $ — Effects of net investment hedge instruments: Cross currency swaps Amount of gain excluded from effectiveness testing $ — $ 8.6 $ — $ — Amount of loss recognized in income (1) $ — $ — $ — $ (0.8) Effects of derivatives not designated as hedge instruments: Foreign exchange forward contracts Amount of loss recognized in income $ — $ — $ 7.3 $ (26.3) Location and Amount of Gain (Loss) Recognized in Statements of Operations Year Ended December 31, 2019 Cost of sales Interest expense, net Acquisition purchase price hedge gain (loss) Other expense, net Total amount of income (expense) line items presented in the statements of operations, which include the effects of derivative instruments $ (3,073.5) $ (39.3) $ — $ (3.4) Effects of cash flow hedge instruments: Foreign exchange cash flow hedges Amount of gain reclassified from AOCI into income $ 6.7 $ — $ — $ — Interest rate swaps Amount of gain reclassified from AOCI into income $ — $ 0.9 $ — $ — Effects of net investment hedge instruments: Cross currency swaps Amount of gain excluded from effectiveness testing $ — $ 15.8 $ — $ — Effects of derivatives not designated as hedge instruments: Foreign exchange forward contracts Amount of gain recognized in income $ — $ — $ — $ 8.0 (1) Amount represents the change in fair value of the portion of the 2020 CCS that was de-designated from hedge accounting for the third quarter of 2020. |
Schedule of Effect of Hedges on AOCI | Gain (Loss) Recognized in AOCI on Balance Sheets Year Ended December 31, 2021 2020 2019 Designated as Cash Flow Hedges Foreign exchange cash flow hedges $ 2.3 $ (1.4) $ (2.2) Interest rate swaps 3.6 (4.4) (6.1) Total $ 5.9 $ (5.8) $ (8.3) Designated as Net Investment Hedges Cross currency swaps (CCS) (1) $ 44.1 $ (41.0) $ 17.9 Total $ 44.1 $ (41.0) $ 17.9 (1) Amount for the year ended December 31, 2020 includes the effect on AOCI from the 2017 CCS through its settlement on February 26, 2020 and the effect on AOCI from the 2020 CCS from when it was entered into on February 26, 2020 through December 31, 2020. Gain (Loss) Recognized in Other expense, net in Statement of Operations Year Ended December 31, 2021 2020 2019 Settlements and changes in the fair value of forward contracts (not designated as hedges) (1) $ 63.2 $ (26.3) $ 8.0 Remeasurement of foreign currency-denominated assets and liabilities $ (61.9) $ 24.4 $ (6.4) Total $ 1.3 $ (1.9) $ 1.6 (1) Amounts do not include the gain (loss) of $(22.0) million and $7.3 million, respectively, recorded from the change in fair value of the forward currency hedge arrangement on the euro-denominated purchase price of the PMMA business during the years ended December 31, 2021 and 2020. |
Schedule of Gross and Net Unrealized Gains and Losses and Balance Sheet Classification | December 31, 2021 Foreign Foreign Exchange Exchange Interest Cross Balance Sheet Forward Cash Flow Rate Currency Classification Contracts Hedges Swaps Swaps Total Asset Derivatives: Accounts receivable, net of allowance $ 2.3 $ — $ — $ — $ 2.3 Gross derivative asset position 2.3 — — — 2.3 Less: Counterparty netting (0.1) — — — (0.1) Net derivative asset position $ 2.2 $ — $ — $ — $ 2.2 Liability Derivatives: Accounts payable $ (1.3) $ — $ (2.2) $ (17.4) $ (20.9) Gross derivative liability position (1.3) — (2.2) (17.4) (20.9) Less: Counterparty netting 0.1 — — — 0.1 Net derivative liability position $ (1.2) $ — $ (2.2) $ (17.4) $ (20.8) Total net derivative position $ 1.0 $ — $ (2.2) $ (17.4) $ (18.6) December 31, 2020 Foreign Foreign Exchange Exchange Interest Cross Balance Sheet Forward Cash Flow Rate Currency Classification Contracts Hedges Swaps Swaps Total Asset Derivatives: Accounts receivable, net of allowance (1) $ 8.2 $ — $ — $ 5.0 $ 13.2 Gross derivative asset position 8.2 — — 5.0 13.2 Less: Counterparty netting (6.5) — — — (6.5) Net derivative asset position $ 1.7 $ — $ — $ 5.0 $ 6.7 Liability Derivatives: Accounts payable $ (8.3) $ (2.1) $ (3.4) $ — $ (13.8) Other noncurrent obligations — — (2.5) (66.5) (69.0) Gross derivative liability position (8.3) (2.1) (5.9) (66.5) (82.8) Less: Counterparty netting 6.5 — — — 6.5 Net derivative liability position $ (1.8) $ (2.1) $ (5.9) $ (66.5) $ (76.3) Total net derivative position $ (0.1) $ (2.1) $ (5.9) $ (61.5) $ (69.6) (1) Balance as of December 31, 2020 includes a $7.3 million receivable representing the fair value of the forward currency hedge arrangement on the euro-denominated purchase price of the PMMA business. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements | |
Schedule of Assets and Liabilities at Fair Value on Recurring Basis | December 31, 2021 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 $ — $ 2.2 $ — $ 2.2 Foreign exchange forward contracts—(Liabilities) — (1.2) — (1.2) Interest rate swaps—(Liabilities) — (2.2) — (2.2) Cross currency swaps—(Liabilities) — (17.4) — (17.4) Total fair value $ — $ (18.6) $ — $ (18.6) December 31, 2020 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 $ — $ 1.7 $ — $ 1.7 Foreign exchange forward contracts—(Liabilities) — (1.8) — (1.8) Foreign exchange cash flow hedges—(Liabilities) — (2.1) — (2.1) Interest rate swaps—(Liabilities) — (5.9) — (5.9) Cross currency swaps—Assets — 5.0 — 5.0 Cross currency swaps—(Liabilities) — (66.5) — (66.5) Total fair value $ — $ (69.6) $ — $ (69.6) |
Estimated Fair Value of Outstanding Debt Not Carried at Fair Value | As of As of December 31, 2021 December 31, 2020 2029 Senior Notes $ 460.2 $ — 2028 Term Loan B 737.4 — 2025 Senior Notes 509.4 513.5 2024 Term Loan B 667.5 674.0 Total fair value $ 2,374.5 $ 1,187.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income (Loss) before Income Taxes Earned within and outside the United States | Year Ended December 31, 2021 2020 2019 United States $ 55.5 $ 56.8 $ 115.2 Outside of the United States 295.0 48.6 (15.4) Income before income taxes $ 350.5 $ 105.4 $ 99.8 |
Provision for (Benefit from) Income Taxes | Year Ended Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Current Deferred Total Current Deferred Total Current Deferred Total U.S. federal $ 5.9 $ 4.4 $ 10.3 $ 3.3 $ 11.9 $ 15.2 $ 16.9 $ 5.2 $ 22.1 U.S. state and other 1.7 0.8 2.5 2.8 1.8 4.6 3.2 0.9 4.1 Non-U.S. 65.4 (7.3) 58.1 28.7 (5.8) 22.9 30.0 (43.5) (13.5) Total $ 73.0 $ (2.1) $ 70.9 $ 34.8 $ 7.9 $ 42.7 $ 50.1 $ (37.4) $ 12.7 |
Schedule of Effective Tax Rate | Year Ended December 31, 2021 2020 2019 Taxes at U.S. statutory rate (1) $ 73.6 $ 22.2 $ 21.0 State and local income taxes 2.2 4.0 3.2 Non U.S. statutory rates, including credits (9.2) 2.4 (7.7) U.S. tax effect of foreign earnings and dividends — 0.2 (1.5) Unremitted earnings 6.3 4.9 5.2 Change in valuation allowances (2)(3) (17.7) (7.7) 45.0 Uncertain tax positions (1.0) (0.6) 4.0 Withholding taxes 6.9 3.5 4.4 Share-based compensation 0.1 1.5 (1.0) Non-deductible interest 1.0 3.0 2.1 Non-deductible other expenses 2.7 0.6 0.3 Provision to return adjustments 3.1 5.0 3.4 Swiss Tax Reform (2) — — (65.0) U.S. Base Erosion and Anti-Abuse Tax — 3.1 — Other—net 2.9 0.6 (0.7) Total provision for income taxes $ 70.9 $ 42.7 $ 12.7 Effective tax rate 20 % 40 % 13 % (1) The U.S. statutory rate of 21% has been used as management believes it is more meaningful to the Company. (2) The year ended December 31, 2019 includes a $65.0 million one-time deferred tax benefit recorded as a result of changes in the Swiss federal and cantonal tax rules, which were enacted on August 6, 2019 and October 25, 2019, respectively. This one-time benefit was partially offset by a $25.3 million valuation allowance for the portion of the cantonal deferred tax asset that more likely than not will expire before utilization. See discussion below for further information. (3) The year ended December 31, 2021 includes a $16.3 million one-time deferred tax benefit recorded due to the release of a valuation allowance, as a result of improvements in business operations and projected future results of the Company’s subsidiaries in China. |
Schedule of Temporary Differences Comprising Deferred Income Taxes | December 31, 2021 2020 Deferred Deferred Deferred Deferred Tax Tax Tax Tax Assets Liabilities Assets Liabilities Tax loss and credit carryforwards (1) $ 98.5 $ — $ 189.0 $ — Unremitted earnings — 35.7 — 29.4 Unconsolidated affiliates — 15.3 — 16.1 Other accruals and reserves (2) 34.2 — 26.5 — Property, plant and equipment (2)(3) — 97.2 — 51.2 Goodwill and other intangible assets (4) 70.7 — 70.0 — Deferred financing fees 2.5 — 3.2 — Employee benefits 44.4 — 58.0 — 250.3 148.2 346.7 96.7 Valuation Allowance (1)(5) (127.7) — (220.5) — Total $ 122.6 $ 148.2 $ 126.2 $ 96.7 (1) For the year ended December 31, 2021, $63.3 million of net operating losses were written off related to Trinseo S.A., our former parent company, that was merged into Trinseo PLC as part of the Redomiciliation to Ireland (refer to Note 1), offset by the write off of a $63.3 million associated valuation allowance. (2) Amounts as of December 31, 2020 include an increase of $19.6 million to the deferred tax liability related to operating lease ROU assets and an increase of $19.6 million to the deferred tax asset related to operating lease liabilities, to reflect the gross deferred tax assets and liabilities which were previously shown as net. (3) Includes $45.6 million of deferred tax liabilities assumed as part of the Aristech Surfaces Acquisition and PMMA Acquisition as of December 31, 2021, measured at period-end exchange rates. (4) Includes the impact of Swiss federal and cantonal tax reform of $3.4 million and $62.1 million, respectively, as of December 31, 2021 and $4.5 million and $67.5 million, respectively, as of December 31, 2020, measured at period-end exchange rates. See discussion below for further information. (5) Includes a valuation allowance of $25.8 million and $28.1 million as of December 31, 2021 and 2020, respectively, related to Swiss cantonal tax reform, measured at period-end exchange rates. See discussion below for further information. |
Schedule of Reconciliation of Unrecognized Tax Benefits | Balance as of December 31, 2018 $ 6.3 Increases related to current year tax positions 0.6 Increases related to prior year tax positions 3.8 Decreases related to prior year tax positions — Settlement of uncertain tax positions (1.3) Decreases due to expiration of statues of limitations (0.4) Balance as of December 31, 2019 $ 9.0 Increases related to current year tax positions 0.6 Increases related to prior year tax positions 0.3 Decreases related to prior year tax positions (0.5) Settlement of uncertain tax positions (0.9) Decreases due to expiration of statues of limitations — Balance as of December 31, 2020 $ 8.5 Increases related to current year tax positions 0.6 Increases related to prior year tax positions — Decreases related to prior year tax positions (0.2) Settlement of uncertain tax positions (1.4) Decrease due to expiration of statutes of limitations — Balance as of December 31, 2021 $ 7.5 |
Summary of Income Tax Examinations [Table Text Block] | Major Tax Jurisdictions Earliest Open Year United States: Federal income tax 2018 Germany 2014 Switzerland 2015 Netherlands 2017 Luxembourg 2011 China 2011 Hong Kong 2006 Indonesia 2017 Italy 2010 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies. | |
Schedule of Fixed and Determinable Portion of Obligation under Purchase Commitments (in millions) | Annual Commitment 2022 2023 2024 2025 2026 Thereafter Total $ 859.1 $ 807.4 $ 263.2 $ 98.1 $ 50.4 $ — $ 2,078.2 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | Non-U.S. Defined Benefit Pension Plans U.S. Defined Benefit Pension Plans (2) Other Postretirement Benefit Plans December 31, December 31, December 31, 2021 2020 2019 2021 2020 2019 2021 2020 2019 Net periodic benefit cost (1) Service cost $ 16.0 $ 13.2 $ 10.2 $ 0.5 $ — $ — $ 0.1 $ — $ 0.1 Interest cost 2.5 3.1 4.8 0.5 — — 0.1 0.2 0.2 Expected return on plan assets (1.0) (1.2) (2.1) (0.7) — — — — — Amortization of prior service credit (0.9) (1.2) (1.1) — — — — — — Amortization of net (gain) loss 6.3 4.0 2.9 — — — (0.1) (0.1) (0.2) Settlement and curtailment (gain) loss (1.6) 0.7 0.8 0.1 — — — — — Net periodic benefit cost $ 21.3 $ 18.6 $ 15.5 $ 0.4 $ — $ — $ 0.1 $ 0.1 $ 0.1 Amounts recognized in other comprehensive income (loss) Net (gain) loss $ (35.5) $ 25.3 $ 27.9 $ 0.7 $ — $ — $ (0.2) $ 0.3 $ 0.1 Amortization of prior service credit 0.9 1.2 1.1 — — — — — — Amortization of net gain (loss) (6.3) (4.0) (2.9) — — — 0.1 0.1 0.2 Settlement and curtailment gain (loss) 1.6 (0.7) (0.8) (0.1) — — — — — Prior service credit (2.4) — — — — — — — — Total recognized in other comprehensive income (loss) (41.7) 21.8 25.3 0.6 — — (0.1) 0.4 0.3 Net periodic benefit cost 21.3 18.6 15.5 0.4 — — 0.1 0.1 0.1 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (20.4) $ 40.4 $ 40.8 $ 1.0 $ — $ — $ — $ 0.5 $ 0.4 (1) Service cost related to the Company’s defined benefit pension plans and other postretirement plans is included within “Cost of sales” and “Selling, general and administrative expenses,” whereas all other components of net periodic benefit cost are included within “Other expense, net” in the consolidated statements of operations. (2) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no net periodic benefit costs for the years ended December 31, 2020 and 2019. |
Schedule of Changes in Pension Benefit Obligations and Fair Value of Plan Assets and Funded Status of All Significant Plans | Non-U.S. Defined U.S. Defined Benefit Other Postretirement Benefit Pension Plans Pension Plans (3) Benefit Plans December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Change in projected benefit obligations Benefit obligation at beginning of period $ 446.5 $ 384.1 $ — $ — $ 6.7 $ 6.2 Service cost 16.0 13.2 0.5 — 0.1 — Interest cost 2.5 3.1 0.5 — 0.1 0.2 Plan participants’ contributions 1.7 1.8 — — — — Actuarial changes in assumptions and experience (1) (28.1) 27.7 1.2 — (0.2) 0.3 Benefits paid from fund (1.1) (2.6) — — — — Benefit payments by employer (2.9) (2.2) (0.2) — — — Acquisitions (2) 6.7 — 31.5 — 0.8 — Plan amendments (2.4) — — — — — Curtailments (3.3) (3.3) — — — — Settlements (10.1) (14.4) (3.0) — — — Currency impact (31.7) 39.1 — — — — Benefit obligation at end of period $ 393.8 $ 446.5 $ 30.5 $ — $ 7.5 $ 6.7 Change in plan assets Fair value of plan assets at beginning of period $ 157.1 $ 148.8 $ — $ — $ — $ — Actual return on plan assets (1.1) 5.3 1.3 — — — Settlements (10.1) (14.4) (3.0) — — — Employer contributions 5.7 6.2 1.1 — — — Plan participants’ contributions 1.7 1.8 — — — — Benefits paid (4.0) (4.8) (0.2) — — — Acquisitions (2) 0.7 — 18.8 — — — Currency impact (10.9) 14.2 — — — — Fair value of plan assets at end of period 139.1 157.1 18.0 — — — Funded status at end of period $ (254.7) $ (289.4) $ (12.5) $ — $ (7.5) $ (6.7) (1) The actuarial gain incurred during the year ended December 31, 2021 was primarily due to the increase in discount rates during the year while the actuarial loss incurred during the year ended December 31, 2020 was primarily due to the decrease in discount rates during the year. (2) Amount as of December 31, 2021 relates primarily to the pension liabilities assumed in conjunction with the PMMA Acquisition. (3) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. |
Schedule of Net Amounts Recognized in Balance Sheet | Non-U.S. Defined U.S. Defined Benefit Other Postretirement Benefit Pension Plans Pension Plans (1) Benefit Plans December 31, December 31, December 31, 2021 2020 2021 2020 2021 2020 Net amounts recognized in the balance sheets as of December 31 Current liabilities $ (4.5) $ (5.4) $ — $ — $ (0.2) $ (0.1) Noncurrent liabilities (250.2) (284.0) (12.5) — (7.3) (6.6) Net amounts recognized in the balance sheet $ (254.7) $ (289.4) $ (12.5) $ — $ (7.5) $ (6.7) Accumulated benefit obligation at the end of the period $ 367.7 $ 405.0 $ 27.4 $ — $ 7.5 $ 6.7 Pretax amounts recognized in AOCI as of December 31 Net prior service credit $ (2.4) $ (1.7) $ — $ — $ — $ (0.1) Net loss (gain) 51.6 103.6 0.6 — (1.6) (1.5) Total at end of period $ 49.2 $ 101.9 $ 0.6 $ — $ (1.6) $ (1.6) (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. |
Schedule of Estimated Future Benefit Payments, Reflecting Expected Future Service | 2027 through 2022 2023 2024 2025 2026 2031 Total Non-U.S. defined benefit pension plans $ 8.1 $ 10.0 $ 7.9 $ 9.9 $ 10.9 $ 69.2 $ 116.0 U.S. defined benefit pension plans 1.4 1.7 1.6 1.7 1.6 9.4 17.4 Other postretirement benefit plans 0.2 0.2 0.3 0.4 0.4 2.6 4.1 Total $ 9.7 $ 11.9 $ 9.8 $ 12.0 $ 12.9 $ 81.2 $ 137.5 |
Schedule of Pension Plans with Projected and Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Non-U.S. Defined U.S. Defined Benefit Benefit Pension Plans Pension Plans (1) Projected Benefit Obligation December 31, December 31, Exceeds the Fair Value of Plan Assets 2021 2020 2021 2020 Projected benefit obligations $ 294.2 336.2 $ 30.5 — Fair value of plan assets $ 39.6 46.8 $ 18.0 — (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. Non-U.S. Defined U.S. Defined Benefit Benefit Pension Plans Pension Plans (1) Accumulated Benefit Obligation December 31, December 31, Exceeds the Fair Value of Plan Assets 2021 2020 2021 2020 Accumulated benefit obligations $ 268.1 300.6 $ 27.9 — Fair value of plan assets $ 39.6 46.8 $ 18.0 — (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. |
Schedule of plan assets | December 31, 2021 December 31, 2020 Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Quoted Prices in Active Markets for Identical Items Significant Other Observable Inputs Significant Unobservable Inputs Basis of Fair Value Measurements Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) U.S. defined benefit pension plans: Cash $ 0.5 $ 0.5 $ — $ — $ — $ — $ — $ — Investments measured at net asset value (1) Equities 10.6 — — — — — — — Debt 6.9 — — — — — — — Total U.S. defined benefit pension plan assets $ 18.0 $ 0.5 $ — $ — $ — $ — $ — $ — Non-US defined benefit pension plans: Insurance contracts $ 139.1 $ — $ — $ 139.1 $ 157.1 $ — $ — $ 157.1 Total non-U.S. defined benefit pension plan assets $ 139.1 $ — $ — $ 139.1 $ 157.1 $ — $ — $ 157.1 (1) The Company elected to presents certain pension plan assets valued at net asset value per share as a practical expedient outside of the fair value hierarchy. (2) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. |
Schedule of reconciliation of plan assets measured at fair value using unobservable inputs | Insurance Contracts Fair Value Measurements of Plan Assets Using Year ended December 31, Significant Unobservable Inputs (Level 3) 2021 2020 Balance at beginning of period $ 157.1 $ 148.8 Actual return on assets (1.1) 5.3 Settlements (10.1) (14.4) Employer contributions 5.7 6.2 Plan participant contributions 1.7 1.8 Benefits paid (4.0) (4.8) Acquisitions 0.7 - Transfers out of Level 3, net - - Currency impact (10.9) 14.2 Balance at end of period $ 139.1 $ 157.1 |
Schedule of asset and target allocation for the Company's pension plans | Target Allocation Allocation at December 31, Asset category 2022 2021 2020 U.S. defined benefit pension plans (1) : Equities 60.0 % 58.6 % — Debt 40.0 % 38.3 % — Other — 3.1 % — Total U.S. defined benefit pension plans 100.0 % 100.0 % — Non-U.S. defined benefit pension plans: Insurance contracts 100.0 % 100.0 % 100.0 % Total non-U.S. defined benefit pension plans 100.0 % 100.0 % 100.0 % (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no balances as of December 31, 2020. |
Pension plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Weighted-average Assumptions on Pension Plan Obligations, Other Postretirement Benefit ("OPEB") and Net Periodic Benefit Costs | U.S. Defined Benefit Non-U.S. Defined Benefit Pension Plans Pension Plans (1) Pension Plan Net Periodic Pension Plan Obligations Net Periodic Benefit Costs Obligations Benefit Costs December 31, December 31, December 31, 2021 2020 2019 2021 2020 2019 2021 2021 Discount rate for projected benefit obligation 1.10 % 0.74 % 1.02 % 0.74 % 1.02 % 1.83 % 2.92 % 3.09 % Discount rate for service cost N/A N/A N/A 0.78 % 1.04 % 1.67 % N/A 3.20 % Discount rate for interest cost N/A N/A N/A 0.57 % 0.79 % 1.57 % N/A 2.37 % Rate of increase in future compensation levels 2.90 % 2.84 % 2.80 % 2.84 % 2.80 % 2.79 % 3.00 % 3.00 % Expected long-term rate of return on plan assets N/A N/A N/A 0.66 % 0.82 % 1.56 % N/A 5.89 % (1) The Company’s U.S. defined benefit pension plans were acquired in 2021, primarily in conjunction with the PMMA Acquisition, and as such, there were no assumptions used to determine pension plan obligations or net periodic benefit costs as of and for the years ended December 31, 2020 and 2019. |
Other Postretirement Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Weighted-average Assumptions on Pension Plan Obligations, Other Postretirement Benefit ("OPEB") and Net Periodic Benefit Costs | OPEB Obligations Net Periodic Benefit Costs December 31, December 31, 2021 2020 2019 2021 2020 2019 Discount rate for accumulated postretirement benefit obligation 2.90 % 3.11 % 3.48 % 3.11 % 3.48 % 4.38 % Discount rate for service cost N/A N/A N/A 3.32 % 3.61 % 4.42 % Discount rate for interest cost N/A N/A N/A 2.34 % 3.08 % 4.14 % Initial health care cost trend rate 6.00 % 6.25 % 6.70 % 6.25 % 6.70 % 6.70 % Ultimate health care cost trend rate 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % 5.00 % Year ultimate trend rate to be reached 2026 2026 2025 2026 2025 2024 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Share-Based Compensation Expense and Unrecognized Compensation Cost | As of December 31, 2021 Year Ended December 31, Unrecognized Weighted 2021 2020 2019 Compensation Cost Average Years 2014 Omnibus Plan Awards RSUs $ 8.0 $ 6.4 $ 7.1 $ 11.6 1.9 Option Awards 4.7 2.8 3.0 3.3 1.5 PSUs 2.5 1.9 2.9 2.8 1.8 Total share-based compensation expense $ 15.2 $ 11.1 $ 13.0 |
Schedule of Option Awards Activity | Weighted Average Weighted Average Aggregate Exercise Price Contractual Intrinsic Option Awards Shares per share Term (years) Value Outstanding as of December 31, 2020 1,399,749 $ 41.19 Granted 301,035 59.87 Exercised (380,098) 29.09 Forfeited (4,904) 47.88 Expired (6,393) 80.61 Outstanding as of December 31, 2021 1,309,389 $ 48.78 6.4 $ 14.9 Exercisable as of December 31, 2021 625,791 $ 55.95 5.1 $ 5.7 Expected to vest as of December 31, 2021 683,598 $ 42.22 7.6 $ 9.2 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock, RSU and PSU Award Activity | Weighted Average Grant Date Restricted Share Units Shares Fair Value per Share Unvested, December 31, 2020 496,910 $ 36.47 Granted 219,990 58.26 Vested (112,187) 50.70 Forfeited (26,801) 37.31 Unvested, December 31, 2021 577,912 $ 41.96 |
Summary of Weighted-average Grant Date Fair Value per Share | Restricted Share Units Weighted Average Grant Date Total Fair Value Fair Value per Share of Awards Vested of Grants during Period during Period Year Ended December 31, 2021 $ 58.26 $ 5.7 Year Ended December 31, 2020 $ 24.13 $ 6.10 Year Ended December 31, 2019 $ 48.63 $ 10.90 |
Option Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Weighted-average Assumptions | Year Ended December 31, 2021 2020 2019 Expected term (in years) 5.50 5.50 5.50 Expected volatility 48.69 % 39.93 % 36.00 % Risk-free interest rate 0.79 % 1.19 % 2.53 % Dividend yield 1.81 % 3.25 % 2.00 % |
Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock, RSU and PSU Award Activity | Weighted Average Grant Date Performance Share Units Shares Fair Value per Share Unvested, December 31, 2020 155,730 $ 43.51 Granted 49,463 61.06 Cancelled (1) (22,063) 87.77 Forfeited (10,201) 36.15 Unvested, December 31, 2021 172,929 $ 43.32 (1) During the year ended December 31, 2021, PSU award recipients earned 0% of the target PSU awards granted in 2018 based upon the Company’s total shareholder return relative to a pre-defined set of industry peer companies. As a result, the associated PSU awards were cancelled. |
Summary of Weighted-average Assumptions | Year Ended December 31, 2021 2020 2019 Expected term (in years) 3.00 3.00 3.00 Expected volatility 58.00 % 40.50 % 36.40 % Risk-free interest rate 0.20 % 1.16 % 2.58 % Share price $ 61.06 $ 24.30 $ 50.95 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segments | |
Reconciliation of Segment Reporting to Consolidated | Engineered Latex Base Americas Corporate Year Ended Materials Binders Plastics Polystyrene Feedstocks Styrenics Unallocated Total December 31, 2021 Equity in earnings of unconsolidated affiliates $ — $ — $ — $ — $ — $ 92.7 $ — $ 92.7 Adjusted EBITDA (1) 94.8 106.5 314.2 183.1 33.7 92.7 Investment in unconsolidated affiliates — — — — — 247.8 — 247.8 Depreciation and amortization 71.9 25.1 23.4 10.0 11.5 — 25.6 167.5 Capital expenditures 28.7 29.3 11.9 9.6 13.4 — 24.8 117.7 December 31, 2020 Equity in earnings of unconsolidated affiliates $ — $ — $ — $ — $ — $ 67.0 $ — $ 67.0 Adjusted EBITDA (1) 34.6 76.6 106.0 79.4 3.2 67.0 Investment in unconsolidated affiliates — — — — — 240.1 — 240.1 Depreciation and amortization 7.3 26.1 20.1 9.4 11.8 — 17.9 92.6 Capital expenditures 5.4 22.7 13.9 4.5 9.0 — 11.1 66.6 December 31, 2019 Equity in earnings of unconsolidated affiliates $ — $ — $ — $ — $ — $ 119.0 $ — $ 119.0 Adjusted EBITDA (1) 31.4 76.7 98.7 54.4 6.5 119.0 Investment in unconsolidated affiliates — — — — — 188.1 — 188.1 Depreciation and amortization 8.9 25.9 19.9 10.9 12.8 — 13.1 91.5 Capital expenditures 6.0 21.4 20.6 4.1 8.1 — 23.8 84.0 (1) The Company’s primary measure of segment operating performance is Adjusted EBITDA, which is defined as income from continuing operations before interest expense, net; provision for income taxes; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and benefits, and other items. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects core operating performance by removing the impact of transactions and events that would not be considered a part of core operations. Other companies in the industry may define segment Adjusted EBITDA differently than the Company, and as a result, it may be difficult to use segment Adjusted EBITDA, or similarly-named financial measures, that other companies may use to compare the performance of those companies to the Company’s segment performance. |
Reconciliation of IBT to Adjusted EBITDA | Year Ended December 31, 2021 2020 2019 Income from continuing operations before income taxes $ 350.5 $ 105.4 $ 99.8 Interest expense, net 79.4 43.6 39.3 Depreciation and amortization 167.5 92.6 91.5 Corporate Unallocated (2) 95.6 81.7 85.5 Adjusted EBITDA Addbacks (3) 132.0 43.5 70.6 Segment Adjusted EBITDA $ 825.0 $ 366.8 $ 386.7 (2) Corporate unallocated includes corporate overhead costs and certain other income and expenses. (3) Adjusted EBITDA addbacks for the years ended December 31, 2021, 2020, and 2019 are as follows: Year Ended December 31, 2021 2020 2019 Net gain on disposition of businesses and assets $ (0.6) $ (0.4) $ (0.7) Restructuring and other charges (Note 21) 9.0 5.6 16.8 Acquisition transaction and integration net costs (benefit) (Note 4) 75.3 9.1 (0.9) Acquisition purchase price hedge loss (gain) (Note 13) 22.0 (7.3) — Asset impairment charges or write-offs (Note 14) 6.8 11.0 — Other items (a) 19.5 25.5 55.4 Total Adjusted EBITDA Addbacks $ 132.0 $ 43.5 $ 70.6 (a) Other items for the year ended December 31, 2021 primarily relate to fees incurred in conjunction with certain of the Company’s strategic initiatives, including our ERP upgrade project. Other items for the years ended December 31, 2020 and 2019 primarily relate to advisory and professional fees incurred in conjunction with the Company’s initiative to transition business services from Dow, including certain administrative services such as accounts payable, logistics, and IT services, which was substantially completed in 2020, as well as fees incurred in conjunction with certain of the Company’s strategic initiatives. |
Schedule of Sales Attributed to Geographical Areas Based on Location of Sales and Long-lived Assets Attributed to Geographical Areas Based on Asset Location | As of and for the Year Ended December 31, 2021 2020 2019 United States Sales to external customers $ 928.7 $ 466.6 $ 580.3 Long-lived assets 184.9 43.9 44.9 Right-of-use assets - operating, net 19.5 18.7 10.4 Europe Sales to external customers $ 2,755.8 $ 1,453.0 $ 1,761.5 Long-lived assets 410.3 269.1 254.0 Right-of-use assets - operating, net 61.9 53.9 54.5 Asia-Pacific Sales to external customers $ 1,048.8 $ 753.4 $ 934.6 Long-lived assets 114.5 118.1 123.3 Right-of-use assets - operating, net 3.9 5.2 5.9 Rest of World Sales to external customers $ 94.2 $ 71.6 $ 97.5 Long-lived assets 9.3 — — Right-of-use assets - operating, net — — — Total Sales to external customers (1) $ 4,827.5 $ 2,744.6 $ 3,373.9 Long-lived assets (2) 719.0 431.1 422.2 Right-of-use assets - operating, net (3) 85.3 77.8 70.8 (1) Sales to external customers in Germany represented approximately 12% of the total for each of the years ended December 31, 2021 and 2020, and 10% of the total of the year ended December 31, 2019. Sales to external customers in Hong Kong represented approximately 11% , 14% , and 15% of the total for the years ended December 31, 2021, 2020, and 2019, respectively. Sales to external customers in the Netherlands represented approximately 8% of the total for each of the years ended December 31, 2021, 2020, and 2019. (2) Long-lived assets in Germany represented approximately 12% , 22% , and 21% of the total as of December 31, 2021, 2020, and 2019, respectively. Long-lived assets in The Netherlands represented approximately 14% , 26% , and 26% of the total as of December 31, 2021, 2020, and 2019, respectively. Long-lived assets in Italy represented approximately 22% , 6% , and 5% of the total as of December 31, 2021, 2020, and 2019, respectively. Long-lived assets consist of property, plant and equipment, net, and finance lease ROU assets. (3) Operating lease ROU assets in The Netherlands represented approximately 48% , 66% and 61% of the total as of December 31, 2021, 2020, and 2019, respectively. Operating lease ROU assets in Ireland represented approximately 10% of the total as of December 31, 2021. There were no balances in Ireland as of December 31, 2020 or 2019. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring | |
Detail of Restructuring Charges | Cumulative Year Ended December 31, Life-to-date 2021 2020 2019 Charges Segment Corporate Restructuring Program Accelerated depreciation $ (0.4) $ 2.5 $ 0.4 $ 2.5 Employee termination benefits 0.3 2.5 15.6 18.4 Contract terminations — 2.4 0.4 2.8 Decommissioning and other — 0.2 — 0.2 Corporate Restructuring Program Subtotal $ (0.1) $ 7.6 $ 16.4 $ 23.9 N/A (1) Transformational Restructuring Program Employee termination benefits $ 8.7 $ — $ — $ 8.7 N/A (1) Transformational Restructuring Program Subtotal $ 8.7 $ — $ — $ 8.7 Other Restructurings — 0.5 0.8 Various Total Restructuring Charges $ 8.6 $ 8.1 $ 17.2 (1) As this was identified as a corporate-related activity, the charges related to this restructuring program were not allocated to a specific segment, but rather included within corporate unallocated. |
Rollforward of Liability Balances | Balance at Balance at December 31, 2020 Expenses Deductions (1) December 31, 2021 Employee termination benefits $ 7.9 $ 9.0 $ (6.9) $ 10.0 Contract terminations 0.1 — (0.1) — Total $ 8.0 $ 9.0 $ (7.0) $ 10.0 Balance at Balance at December 31, 2019 Expenses Deductions (1) December 31, 2020 Employee termination benefits $ 15.8 $ 3.9 $ (11.8) $ 7.9 Contract terminations 0.7 — (0.6) 0.1 Decommissioning and other — 0.7 (0.7) — Total $ 16.5 $ 4.6 $ (13.1) $ 8.0 (1) Includes primarily payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss). | |
Components of AOCI, Net of Income Taxes | Cumulative Pension & Other Translation Postretirement Benefit Cash Flow Year Ended December 31, 2021, 2020 and 2019 Adjustments Plans, Net Hedges, Net Total Balance at December 31, 2018 $ (111.8) $ (39.4) $ 8.9 $ (142.3) Other comprehensive income (loss) 5.1 (19.0) (0.7) (14.6) Amounts reclassified from AOCI to net income (1) — 2.1 (7.6) (5.5) Balance at December 31, 2019 $ (106.7) $ (56.3) $ 0.6 $ (162.4) Other comprehensive loss (2.3) (18.3) (9.0) (29.6) Amounts reclassified from AOCI to net income (1) — 2.7 3.2 5.9 Balance as of December 31, 2020 $ (109.0) $ (71.9) $ (5.2) $ (186.1) Other comprehensive income (loss) (5.3) 28.4 3.4 26.5 Amounts reclassified from AOCI to net income (1) — 9.9 2.5 12.4 Balance as of December 31, 2021 $ (114.3) $ (33.6) $ 0.7 $ (147.2) (1) The following is a summary of amounts reclassified from AOCI to net income for the years ended December 31, 2021, 2020, and 2019. |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount Reclassified from AOCI Year Ended December 31, Statement of Operations AOCI Components 2021 2020 2019 Classification Cash flow hedging items Foreign exchange cash flow hedges $ (1.0) $ 0.8 $ (6.7) Cost of sales Interest rate swaps 3.5 2.4 (0.9) Interest expense, net Total before tax 2.5 3.2 (7.6) Tax effect — — — Provision for income taxes Total, net of tax $ 2.5 $ 3.2 $ (7.6) Amortization of pension and other postretirement benefit plan items Prior service credit $ (0.9) $ (1.2) $ (1.1) (a) Net actuarial loss 7.1 4.4 3.4 (a) Curtailment and settlement loss 8.4 0.7 0.8 (a) Total before tax 14.6 3.9 3.1 Tax effect (4.7) (1.2) (1.0) Provision for income taxes Total, net of tax $ 9.9 $ 2.7 $ 2.1 (a) These AOCI components are included in the computation of net periodic benefit costs. Refer to Note 17 for further information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share | |
Schedule of Earnings per Share Basic and Diluted | Year Ended December 31, (in millions, except per share data) 2021 2020 2019 Earnings: Net income from continuing operations $ 279.6 $ 62.7 $ 87.1 Net income (loss) from discontinued operations 160.4 (54.8) 4.9 Net income $ 440.0 $ 7.9 $ 92.0 Shares: Weighted average ordinary shares outstanding 38.7 38.3 40.3 Dilutive effect of RSUs, option awards, and PSUs (1) 0.9 0.3 0.4 Diluted weighted average ordinary shares outstanding 39.6 38.6 40.7 Income (loss) per share: Income (loss) per share—basic: Continuing operations 7.22 1.63 2.16 Discontinued operations 4.15 (1.43) 0.12 Income per share—basic $ 11.37 $ 0.20 $ 2.28 Income (loss) per share—diluted: Continuing operations 7.07 1.62 2.14 Discontinued operations 4.05 (1.42) 0.12 Income per share—diluted $ 11.12 $ 0.20 $ 2.26 (1) Refer to Note 18 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 0.6 million, 1.1 million, and 0.6 million for the years ended December 31, 2021, 2020, and 2019, respectively. . . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of ROU Assets and Lease Liabilities | December 31, 2021 2020 Location on Balance Sheet Operating lease ROU assets, net $ 85.3 $ 77.8 Right-of-use assets - operating, net Finance lease ROU assets, net 3.7 7.1 Property, plant, and equipment, net of accumulated depreciation Operating lease liabilities - current portion 18.4 15.5 Current lease liabilities - operating Operating lease liabilities - noncurrent portion 69.2 65.5 Noncurrent lease liabilities - operating Finance lease liabilities - current portion 2.7 3.1 Short-term borrowings and current portion of long-term debt Finance lease liabilities - noncurrent portion 1.0 4.1 Long-term debt, net of unamortized deferred financing fees |
Schedule of Lease Costs | Year Ended December 31, 2021 2020 2019 Finance lease cost: Amortization of lease ROU assets $ 2.7 $ 2.7 $ 0.8 Interest on lease liabilities 0.1 0.2 0.1 Operating lease cost: 20.7 21.0 18.0 Variable lease cost 0.1 0.3 0.2 Total lease cost $ 23.6 $ 24.2 $ 19.1 |
Schedule of Cash and Non-cash Activity Related To Lease Liabilities | Year Ended December 31, 2021 2020 2019 Cash paid related to lease liabilities: Operating cash flows from operating leases $ 21.4 $ 19.3 $ 16.8 Operating cash flows from finance leases 0.1 0.2 0.1 Financing cash flows from finance leases 2.7 2.7 0.8 Non-cash lease liability activity (1) : ROU assets obtained in exchange for new operating lease liabilities $ 29.0 $ 20.5 $ 85.6 ROU assets obtained in exchange for new finance lease liabilities 0.2 3.0 8.2 (1) Amounts for the year ended December 31, 2019 include the impact of adopting the new lease accounting standard effective January 1, 2019. |
Schedule of Maturity of Operating Lease Liabilities ASC842 | Maturity of lease liabilities by year 2022 2023 2024 2025 2026 Thereafter Total Lease Payments Less Imputed Interest Lease Liability Operating Leases $ 20.6 $ 17.5 $ 12.7 $ 9.3 $ 6.8 $ 32.3 $ 99.2 $ (11.6) $ 87.6 Finance Leases $ 2.5 $ 0.6 $ 0.6 $ 0.2 $ — $ — $ 3.9 $ (0.2) $ 3.7 Total $ 23.1 $ 18.1 $ 13.3 $ 9.5 $ 6.8 $ 32.3 $ 103.1 $ (11.8) $ 91.3 |
Schedule of Maturity of Finance Lease Liabilities | Maturity of lease liabilities by year 2022 2023 2024 2025 2026 Thereafter Total Lease Payments Less Imputed Interest Lease Liability Operating Leases $ 20.6 $ 17.5 $ 12.7 $ 9.3 $ 6.8 $ 32.3 $ 99.2 $ (11.6) $ 87.6 Finance Leases $ 2.5 $ 0.6 $ 0.6 $ 0.2 $ — $ — $ 3.9 $ (0.2) $ 3.7 Total $ 23.1 $ 18.1 $ 13.3 $ 9.5 $ 6.8 $ 32.3 $ 103.1 $ (11.8) $ 91.3 |
Schedule of of the weighted average remaining lease terms and the weighted average discount rates for operating and finance leases | As of December 31, 2021 2020 2019 Operating leases: Weighted average remaining lease term (in years) 7.9 8.9 9.3 Weighted average discount rate 3.4 % 3.9 % 4.7 % Finance leases: Weighted average remaining lease term (in years) 2.0 2.6 2.9 Weighted average discount rate 2.8 % 2.8 % 3.0 % |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Selected Quarterly Financial Data | |
Schedule of Selected Quarterly Financial Data | First Second Third Fourth (in millions, except per share data) Quarter Quarter (2) Quarter (2),(3) Quarter (2),(3) 2021 (1) Net sales $ 986.0 $ 1,273.7 $ 1,269.3 $ 1,298.5 Gross profit 188.9 220.0 168.3 121.6 Equity in earnings of unconsolidated affiliates 22.9 30.1 17.1 22.5 Operating income 155.4 151.0 107.8 47.2 Income from continuing operations before income taxes 86.0 156.2 84.9 23.4 Net income from continuing operations 65.8 133.0 79.4 1.4 Net income from discontinued operations, net of income taxes 5.7 18.6 13.7 122.4 (4) Net income 71.5 151.6 93.1 123.8 Net income per share- basic Continuing operations $ 1.71 $ 3.43 $ 2.04 $ 0.04 Discontinued operations 0.15 0.48 0.35 3.16 (4) Net income per share- basic $ 1.86 $ 3.91 $ 2.39 $ 3.20 Net income per share- diluted Continuing operations $ 1.67 $ 3.35 $ 2.01 $ 0.04 Discontinued operations 0.14 0.47 0.35 3.10 (4) Net income per share- diluted $ 1.81 $ 3.82 $ 2.36 $ 3.14 First Second Third Fourth Quarter Quarter (5) Quarter Quarter 2020 (1) Net sales $ 763.0 $ 534.3 $ 679.2 $ 768.1 Gross profit 57.7 23.4 106.3 133.7 Equity in earnings of unconsolidated affiliates 9.8 14.4 18.3 24.6 Operating income (loss) (15.4) (15.1) 78.3 101.8 Income (loss) from continuing operations before income taxes (27.2) (27.2) 67.1 92.7 Net income (loss) from continuing operations (69.4) 25.8 40.2 66.2 Net income (loss) from discontinued operations, net of income taxes 33.2 (154.2) 65.6 0.5 Net income (loss) (36.3) (128.4) 105.8 66.7 Net income (loss) per share- basic: Continuing operations $ (1.80) $ 0.68 $ 1.05 $ 1.73 Discontinued operations 0.86 (4.04) 1.72 0.01 Net income (loss) per share- basic $ (0.94) $ (3.36) $ 2.77 $ 1.74 Net income (loss) per share- diluted: Continuing operations $ (1.80) $ 0.67 $ 1.04 $ 1.70 Discontinued operations 0.86 (4.02) 1.71 0.01 Net income (loss) per share- diluted $ (0.94) $ (3.35) $ 2.75 $ 1.71 (1) Beginning in the second quarter of 2021, the Company reported the results of the Synthetic Rubber business as discontinued operations for all periods presented. Refer to Note 5 for more information. (2) Includes the results of the PMMA Acquisition subsequent to its closing date of May 3, 2021. Refer to Note 4 for more information. (3) Includes the results of the Aristech Surfaces Acquisition subsequent to its closing date of September 1, 2021. Refer to Note 4 for more information. (4) Includes the operating results of the Synthetic Rubber business, which the Company sold on December 1, 2021, as well as the after-tax gain on sale of $117.8 million. Refer to Note 5 for more information. (5) The most significant negative impacts of the COVID-19 pandemic were realized in the second quarter of 2020, noting significant improvement in demand and results in the third and fourth quarters of 2020. |
Organization and Business Act_2
Organization and Business Activities (Details) | 12 Months Ended | ||
Dec. 31, 2021facilitysitePlantcountryitemdivision$ / shares | Oct. 08, 2021$ / shares | Dec. 31, 2020$ / shares | |
Organization and Business Activities | |||
Ordinary shares, nominal value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Number of manufacturing plants | Plant | 40 | ||
Number of production units | item | 81 | ||
Number of sites | site | 33 | ||
Number of countries | country | 15 | ||
Number of research and development facilities | facility | 11 | ||
Number of operating segments | division | 6 |
Basis Of Presentation And Sum_3
Basis Of Presentation And Summary Of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Business Activities | |||
Foreign exchange transaction gains (losses) | $ (61.9) | $ 24.4 | $ (6.4) |
Basis Of Presentation And Sum_4
Basis Of Presentation And Summary Of Significant Accounting Policies - Environment, Property, Intangibles, Investment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Business Activities | |||
Accrual environmental liabilities | $ 4.4 | $ 0 | |
Net capitalized turnaround costs | 28 | 29.1 | |
Impairment losses on goodwill | 0 | 0 | $ 0 |
Impairment loss on intangible asset | $ 0 | $ 0 | $ 0 |
Basis Of Presentation And Sum_5
Basis Of Presentation And Summary Of Significant Accounting Policies - Restricted cash, SG&A, Taxes and Deferred Ordinary Shares (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021€ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Oct. 08, 2021$ / shares | Dec. 31, 2020€ / shares | Dec. 31, 2020USD ($)$ / sharesshares | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Restricted cash | $ 1.2 | $ 0 | $ 0 | |||||
Revenue, Practical Expedient, Financing Component [true false] | true | |||||||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | |||||||
Restructuring charges | $ 9 | $ 4.6 | ||||||
Ordinary shares, shares issued | shares | 38,900 | 48,800 | ||||||
Ordinary shares, shares outstanding | shares | 37,900 | 38,400 | ||||||
Ordinary shares, nominal value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Deferred Ordinary Shares | ||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ordinary shares, shares issued | shares | 25 | 0 | ||||||
Ordinary shares, shares outstanding | shares | 25 | 0 | ||||||
Ordinary shares, nominal value | € / shares | € 1 | € 1 | ||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Research and development costs | 63.9 | 42.6 | 38.8 | |||||
Promotional and advertising expenses | 1.1 | 1.3 | 1.7 | |||||
Restructuring charges | $ 8.6 | $ 7.4 | $ 17.2 | |||||
Minimum [Member] | ||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Product sales payment terms | 10 days | |||||||
Maximum [Member] | ||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Product sales payment terms | 90 days | |||||||
Weighted Average [Member] | ||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Product sales payment terms | 55 days |
Net Sales (Details)
Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,298.5 | $ 1,269.3 | $ 1,273.7 | $ 986 | $ 768.1 | $ 679.2 | $ 534.3 | $ 763 | $ 4,827.5 | $ 2,744.6 | $ 3,373.9 |
Latex Binders | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,183.4 | 767.1 | 902.8 | ||||||||
Engineered Materials [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 755 | 194.9 | 209.9 | ||||||||
Base Plastics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,497.9 | 918.2 | 1,156.3 | ||||||||
Polystyrene [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,118.8 | 698.9 | 809.4 | ||||||||
Feedstocks [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 272.4 | 165.5 | 295.5 | ||||||||
U.S. Plans | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 928.7 | 466.6 | 580.3 | ||||||||
U.S. Plans | Latex Binders | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 314.1 | 219.2 | 263.7 | ||||||||
U.S. Plans | Engineered Materials [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 302.1 | 35.8 | 38.2 | ||||||||
U.S. Plans | Base Plastics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 298.2 | 203.3 | 267.7 | ||||||||
U.S. Plans | Feedstocks [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 14.3 | 8.3 | 10.7 | ||||||||
Europe [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,755.8 | 1,453 | 1,761.5 | ||||||||
Europe [Member] | Latex Binders | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 573.6 | 340.9 | 388.5 | ||||||||
Europe [Member] | Engineered Materials [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 294.9 | 55.4 | 60.3 | ||||||||
Europe [Member] | Base Plastics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 942.8 | 513.7 | 675.6 | ||||||||
Europe [Member] | Polystyrene [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 688.7 | 408 | 448.8 | ||||||||
Europe [Member] | Feedstocks [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 255.8 | 135 | 188.3 | ||||||||
Asia-Pacific [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,048.8 | 753.4 | 934.6 | ||||||||
Asia-Pacific [Member] | Latex Binders | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 286.6 | 200.1 | 239.3 | ||||||||
Asia-Pacific [Member] | Engineered Materials [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 151.2 | 103.3 | 111.3 | ||||||||
Asia-Pacific [Member] | Base Plastics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 178.6 | 136.9 | 126.9 | ||||||||
Asia-Pacific [Member] | Polystyrene [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 430.1 | 290.9 | 360.6 | ||||||||
Asia-Pacific [Member] | Feedstocks [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2.3 | 22.2 | 96.5 | ||||||||
Rest of World [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 94.2 | 71.6 | 97.5 | ||||||||
Rest of World [Member] | Latex Binders | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 9.1 | 6.9 | 11.3 | ||||||||
Rest of World [Member] | Engineered Materials [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 6.8 | 0.4 | 0.1 | ||||||||
Rest of World [Member] | Base Plastics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 78.3 | $ 64.3 | $ 86.1 |
Acquisitions - Aristech (Detail
Acquisitions - Aristech (Details) - USD ($) $ in Millions | Sep. 01, 2021 | Sep. 01, 2021 | May 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||
Bargain purchase gain | $ 4.7 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | $ 710.1 | $ 62.1 | $ 56.7 | |||
Acquisition-related costs | 20 | $ 4.7 | ||||
Customer Relationships [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Expected life | 13 years | |||||
Developed Technology [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Expected life | 10 years | |||||
Trade Names [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Expected life | 16 years | |||||
Other intangible assets | Minimum [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Expected life | 1 year | |||||
Other intangible assets | Maximum [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Expected life | 5 years | |||||
Aristech Surfaces L L C [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest acquired | 100.00% | 100.00% | ||||
Total Consideration | $ 449.5 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Cash and cash equivalents | $ 1.7 | 1.7 | ||||
Accounts receivable | 26.9 | 26.9 | ||||
Inventories | 30.3 | 30.3 | ||||
Other current assets | 1.6 | 1.6 | ||||
Property, plant, and equipment | 82.9 | 82.9 | ||||
Right of use assets - operating | 2 | 2 | ||||
Deferred income tax assets | 1.5 | 1.5 | ||||
Total fair value of assets acquired | 349.7 | 349.7 | ||||
Accounts payable | (13.8) | (13.8) | ||||
Current lease liabilities - operating | (0.4) | (0.4) | ||||
Accrued expenses and other current liabilities | (3.1) | (3.1) | ||||
Noncurrent lease liabilities - operating | (1.6) | (1.6) | ||||
Other noncurrent obligations | (1.4) | (1.4) | ||||
Total fair value of liabilities assumed | (20.3) | (20.3) | ||||
Net assets acquired | 329.4 | 329.4 | ||||
Goodwill | 120.1 | 120.1 | ||||
Acquisition-related costs | 7 | |||||
Inventory adjustment | 6.9 | |||||
Increase to goodwill | (3.2) | |||||
Net sales since acquisition | 55.2 | |||||
Net income since acquisition | $ 12.7 | |||||
Increase to property, plant and equipment | 7.6 | |||||
Decrease to other intangible assets | (5) | |||||
Decrease to goodwill | 3.2 | |||||
Aristech Surfaces L L C [Member] | Customer Relationships [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Other intangible assets | $ 140 | 140 | ||||
Expected life | 13 years | |||||
Aristech Surfaces L L C [Member] | Developed Technology [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Other intangible assets | $ 52.5 | 52.5 | ||||
Expected life | 11 years | |||||
Aristech Surfaces L L C [Member] | Trade Names [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Other intangible assets | $ 10 | 10 | ||||
Expected life | 10 years | |||||
Aristech Surfaces L L C [Member] | Other intangible assets | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||
Other intangible assets | $ 0.3 | $ 0.3 | ||||
Expected life | 1 year |
Acquisition - Arkema PMMA (Deta
Acquisition - Arkema PMMA (Details) - USD ($) $ in Millions | May 03, 2021 | May 03, 2021 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 24, 2021 |
Business Acquisition [Line Items] | |||||||
Proceeds from issuance of Senior Notes | $ 450 | ||||||
Bargain purchase gain | $ 4.7 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 56.7 | 710.1 | $ 62.1 | 56.7 | |||
Cash Acquired from Acquisition | 12.1 | 0 | 0 | ||||
Acquisition-related costs | $ 20 | 4.7 | |||||
Customer Relationships [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Expected life | 13 years | ||||||
Developed Technology [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Expected life | 10 years | ||||||
Trade Names [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Expected life | 16 years | ||||||
Other intangible assets | Minimum [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Expected life | 1 year | ||||||
Other intangible assets | Maximum [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Expected life | 5 years | ||||||
2029 Senior Notes | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument issued | $ 450 | $ 450 | $ 450 | ||||
2028 Term Loan B | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Maximum borrowing capacity | $ 750 | $ 750 | |||||
PMMA Business | |||||||
Business Acquisition [Line Items] | |||||||
Equity interest acquired | 100.00% | 100.00% | |||||
Initial cash purchase price paid | $ 1,369 | ||||||
Known purchase price adjustment | (4.1) | ||||||
Total Consideration | 1,364.9 | ||||||
Increase to property, plant and equipment | 19.4 | ||||||
Increase to deferred income tax liabilities | 6.7 | ||||||
Decrease to consideration | 5.8 | ||||||
Decrease to goodwill | 19.8 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash and cash equivalents | $ 10.4 | 10.4 | |||||
Accounts receivable | 19.1 | 19.1 | |||||
Inventories | 78.9 | 78.9 | |||||
Other current assets | 8.7 | 8.7 | |||||
Property, plant, and equipment | 255.4 | 255.4 | |||||
Right of use assets - operating | 4.1 | 4.1 | |||||
Deferred charges and other assets | 27.9 | 27.9 | |||||
Total fair value of assets acquired | 910.5 | 910.5 | |||||
Accounts payable | (14.5) | (14.5) | |||||
Current lease liabilities - operating | (1.7) | (1.7) | |||||
Income taxes payable | (0.3) | (0.3) | |||||
Accrued expenses and other current liabilities | (10.3) | (10.3) | |||||
Noncurrent lease liabilities - operating | (2.5) | (2.5) | |||||
Deferred income tax liabilities | (41) | (41) | |||||
Other noncurrent obligations | (23.2) | (23.2) | |||||
Total fair value of liabilities assumed | (93.5) | (93.5) | |||||
Net assets acquired | 817 | 817 | |||||
Goodwill | 547.9 | 547.9 | |||||
Inventory adjustment | 10.1 | ||||||
Pension and other post-retirement plan liabilities | 18.3 | 18.3 | |||||
Expected deduction for goodwill | 301 | 301 | |||||
PMMA Business | Customer Relationships [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Other intangible assets | 326.6 | 326.6 | |||||
PMMA Business | Developed Technology [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Other intangible assets | 133 | 133 | |||||
PMMA Business | Trade Names [Member] | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Other intangible assets | 46 | 46 | |||||
PMMA Business | Other intangible assets | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Other intangible assets | $ 0.4 | $ 0.4 | |||||
Latex Binder Production Facilities In Rheinmunster Germany [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net liabilities assumed | (2) | (2) | |||||
Bargain purchase gain | $ 4.7 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash Acquired from Acquisition | $ 0.2 | $ 6.7 |
Acquisitions - Pro Forma and tr
Acquisitions - Pro Forma and transaction costs (Details) - USD ($) $ in Millions | May 03, 2021 | May 03, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition, Pro Forma Information [Abstract] | |||||||||||||
Net sales | $ 5,162.3 | $ 3,443.7 | |||||||||||
Net income | 498.5 | (61.4) | |||||||||||
Income (loss) from continuing operations | 338.1 | (6.6) | |||||||||||
Acquisition-related costs | 20 | 4.7 | |||||||||||
Net sales | $ 1,298.5 | $ 1,269.3 | $ 1,273.7 | $ 986 | $ 768.1 | $ 679.2 | $ 534.3 | $ 763 | 4,827.5 | 2,744.6 | $ 3,373.9 | ||
Net income from continuing operations | $ 279.6 | $ 62.7 | $ 87.1 | ||||||||||
PMMA Business | |||||||||||||
Business Acquisition, Pro Forma Information [Abstract] | |||||||||||||
Net sales | $ 413.2 | ||||||||||||
Net income | 10.7 | ||||||||||||
Agreement term | 18 months | ||||||||||||
IT separation costs capitalized | $ 10.6 | $ 10.6 |
Acquisitions - Heathland B.V (D
Acquisitions - Heathland B.V (Details) - Dec. 03, 2021 - Heathland B.V. € in Millions, $ in Millions | USD ($) | EUR (€) |
Business Acquisition [Line Items] | ||
Preliminary cash purchase price | € 20 | |
Contingent payments to be paid | 10 | |
Consideration paid upon signing the agreement | $ 1.1 | € 1 |
Divestitures and Discontinued_3
Divestitures and Discontinued Operations (Details) - USD ($) $ in Millions | Dec. 01, 2021 | Oct. 21, 2021 | Dec. 31, 2020 |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||
Total current assets | $ 60 | ||
Total current liabilities | 0.4 | ||
Total noncurrent liabilities | 42.3 | ||
Emulsion Polymers, Synthetic Rubber [Member] | Discontinued Operations, Held-for-sale [Member] | |||
Disclosures by disposal group | |||
After-tax gain on sale | $ 117.8 | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||
Inventories | 60 | ||
Total current assets | 60 | ||
Property, plant and equipment, net | 170.3 | ||
Goodwill | 12.1 | ||
Other intangibles assets, net | 20.2 | ||
Deferred charges and other assets | 25.6 | ||
Total other assets | 57.9 | ||
Total assets held for sale | 288.2 | ||
Total current liabilities | 0.4 | ||
Other non-current obligations | 42.3 | ||
Total noncurrent liabilities | 42.3 | ||
Total liabilities held for sale | $ 42.7 | ||
Emulsion Polymers, Synthetic Rubber [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Disclosures by disposal group | |||
Consideration | 402.4 | ||
Pension and other postretirement benefits | 41.6 | ||
Working capital target | 47 | $ 47 | |
After-tax gain on sale | $ 117.8 |
Divestitures and Discontinued_4
Divestitures and Discontinued Operations - Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |||
Gain on sale of businesses and other assets | $ (0.4) | $ (0.4) | $ (0.7) |
Net income (loss) from discontinued operations | 160.4 | (54.8) | 4.9 |
Emulsion Polymers, Synthetic Rubber [Member] | Discontinued Operations, Held-for-sale [Member] | |||
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |||
Net sales | 478.9 | 319.7 | 441.3 |
Cost of sales | 408 | 326.3 | 415.8 |
Gross profit (loss) | 70.9 | (6.6) | 25.5 |
Selling, general and administrative expenses | 21 | 23.6 | 20 |
Impairment charges | 28.1 | ||
Operating income (loss) | 49.9 | (58.3) | 5.5 |
Gain on sale of businesses and other assets | (133.6) | ||
Other expense, net | (2.5) | (1.5) | (0.6) |
Income (loss) from discontinued operations before income taxes | 181 | (59.8) | 4.9 |
Provision for (benefit from) income taxes | 20.6 | (5) | |
Net income (loss) from discontinued operations | 160.4 | $ (54.8) | $ 4.9 |
Emulsion Polymers, Synthetic Rubber [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |||
Net sales | 5.5 | ||
Cost of sales | $ 4.1 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)item | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of joint ventures | item | 1 | 1 | |||||||||
Equity in earnings of unconsolidated affiliates | $ 22.5 | $ 17.1 | $ 30.1 | $ 22.9 | $ 24.6 | $ 18.3 | $ 14.4 | $ 9.8 | $ 92.7 | $ 67 | $ 119 |
Assets | |||||||||||
Current assets | 1,978.5 | 1,517.1 | 1,978.5 | 1,517.1 | |||||||
Total assets | 4,712.2 | 2,845.2 | 4,712.2 | 2,845.2 | |||||||
Liabilities | |||||||||||
Current liabilities | 914.4 | 533.3 | 914.4 | 533.3 | |||||||
Total noncurrent liabilities | 2,784.7 | 1,721.6 | 2,784.7 | 1,721.6 | |||||||
Summarized Financial Information, Net Income | |||||||||||
Gross profit | 121.6 | $ 168.3 | $ 220 | $ 188.9 | 133.7 | $ 106.3 | $ 23.4 | $ 57.7 | 698.9 | 321.1 | 300.4 |
Net income (loss) | 440 | 7.9 | 92 | ||||||||
Accounts receivable due from unconsolidated affiliates | 0 | 0 | 0 | 0 | |||||||
Accounts payable due to unconsolidated affiliate | 6.1 | 5.8 | 6.1 | 5.8 | |||||||
Unconsolidated affiliates | |||||||||||
Assets | |||||||||||
Current assets | 447.7 | 339.5 | 447.7 | 339.5 | |||||||
Noncurrent assets | 254.2 | 266.1 | 254.2 | 266.1 | |||||||
Total assets | 701.9 | 605.6 | 701.9 | 605.6 | |||||||
Liabilities | |||||||||||
Current liabilities | 193.6 | 123.9 | 193.6 | 123.9 | |||||||
Total noncurrent liabilities | 31.4 | 33.9 | 31.4 | 33.9 | |||||||
Total liabilities | $ 225 | $ 157.8 | 225 | 157.8 | |||||||
Summarized Financial Information, Net Income | |||||||||||
Net sales | 1,822.3 | 1,115.6 | 1,486.1 | ||||||||
Gross profit | 253.8 | 130.4 | 243.2 | ||||||||
Net income (loss) | 199 | 80.5 | 192.5 | ||||||||
Sales to affiliates | 0 | 0 | 0 | ||||||||
Purchases from affiliates | $ 73.9 | $ 51.2 | $ 81.9 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Americas Styrenics (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in Unconsolidated Affiliates | |||
Investments in unconsolidated affiliates | $ 247.8 | $ 240.1 | $ 188.1 |
AmSty [Member] | |||
Investments in Unconsolidated Affiliates | |||
Investments in unconsolidated affiliates | 247.8 | 240.1 | |
Investment in unconsolidated affiliates-difference between carrying amount and underlying equity | $ 9.4 | 16.3 | |
Percentage of ownership underlying net assets | 50.00% | ||
Amortized weighted average remaining useful life | 2.5 | ||
Dividends received from operating activities | $ 85 | $ 15 | $ 110 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable [Abstract] | |||
Trade receivables | $ 659.1 | $ 444.6 | |
Non-income tax receivables | 53.9 | 48 | |
Other receivables | 31.3 | 42.4 | |
Less: allowance for doubtful accounts | (4.1) | (5.8) | |
Total | 740.2 | 529.2 | |
Recognized bad debt expense (benefit) | $ (1.5) | $ 0.2 | $ (0.7) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories | ||
Finished goods | $ 279.2 | $ 132.9 |
Raw materials and semi-finished goods | 303.9 | 161.7 |
Supplies | 37.9 | 29.5 |
Total | $ 621 | $ 324.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,275.5 | $ 955.8 | |
Less: accumulated depreciation | (556.5) | (524.7) | |
Property, plant and equipment, net | 719 | 431.1 | |
Depreciation expense | 87.5 | 51.6 | $ 59.5 |
Capitalized interest | 1.7 | 2.1 | $ 3 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 86.1 | 56.7 | |
Land and Waterway Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 21.9 | 21.1 | |
Land and Waterway Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 1 year | ||
Land and Waterway Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 145.7 | 81.7 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 50 years | ||
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 874.5 | 675.8 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Leasehold Interests [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 39.8 | 39.4 | |
Leasehold Interests [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 9 years | ||
Leasehold Interests [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Other Property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 51.9 | 51 | |
Other Property [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 1 year | ||
Other Property [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Construction in Process [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 55.6 | $ 30.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Beginning Balance | $ 62.1 | $ 56.7 | |
Acquisition | 668 | ||
Foreign currency impact | (20) | (5.4) | |
Ending Balance | 710.1 | 62.1 | $ 56.7 |
Impairment of goodwill | 0 | 0 | 0 |
Engineered Materials [Member] | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 16 | 14.6 | |
Acquisition | 668 | ||
Foreign currency impact | (16.7) | (1.4) | |
Ending Balance | 667.3 | 16 | 14.6 |
Latex Binders | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 17.1 | 15.6 | |
Foreign currency impact | (1.2) | (1.5) | |
Ending Balance | 15.9 | 17.1 | 15.6 |
Base Plastics [Member] | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 24.2 | 22.1 | |
Foreign currency impact | (1.8) | (2.1) | |
Ending Balance | 22.4 | 24.2 | 22.1 |
Polystyrene [Member] | |||
Goodwill [Roll Forward] | |||
Beginning Balance | 4.8 | 4.4 | |
Foreign currency impact | (0.3) | (0.4) | |
Ending Balance | $ 4.5 | $ 4.8 | $ 4.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Other Intangible Assets Table (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Intangible Assets | ||
Gross Carrying Amount | $ 1,065.9 | $ 344.1 |
Accumulated Amortization | (242.1) | (181.5) |
Net | 823.8 | 162.6 |
Developed Technology [Member] | ||
Other Intangible Assets | ||
Gross Carrying Amount | 321.4 | 157.2 |
Accumulated Amortization | (119.3) | (107.8) |
Net | $ 202.1 | $ 49.4 |
Developed Technology [Member] | Maximum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 15 years | 15 years |
Developed Technology [Member] | Minimum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 9 years | 9 years |
Customer Relationships [Member] | ||
Other Intangible Assets | ||
Gross Carrying Amount | $ 477.1 | $ 15.2 |
Accumulated Amortization | (23.4) | (2.7) |
Net | $ 453.7 | $ 12.5 |
Customer Relationships [Member] | Maximum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 19 years | 19 years |
Customer Relationships [Member] | Minimum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 13 years | 13 years |
Software [Member] | ||
Other Intangible Assets | ||
Gross Carrying Amount | $ 162.3 | $ 156.1 |
Accumulated Amortization | (93.8) | (67.6) |
Net | $ 68.5 | $ 88.5 |
Software [Member] | Maximum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 10 years | 10 years |
Software [Member] | Minimum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 5 years | 5 years |
Software in Development [Member] | ||
Other Intangible Assets | ||
Gross Carrying Amount | $ 39.7 | $ 10.6 |
Net | 39.7 | $ 10.6 |
Trade Names [Member] | ||
Other Intangible Assets | ||
Gross Carrying Amount | 53 | |
Accumulated Amortization | (2.1) | |
Net | $ 50.9 | |
Trade Names [Member] | Maximum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 16 years | 16 years |
Trade Names [Member] | Minimum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 10 years | 10 years |
Other intangible assets | ||
Other Intangible Assets | ||
Gross Carrying Amount | $ 12.4 | $ 5 |
Accumulated Amortization | (3.5) | (3.4) |
Net | $ 8.9 | $ 1.6 |
Other intangible assets | Maximum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 5 years | 5 years |
Other intangible assets | Minimum [Member] | ||
Other Intangible Assets | ||
Estimated Useful Life (Years) | 1 year | 1 year |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets | |||
Amortization expense related to finite-lived intangible assets | $ 71.8 | $ 27.7 | $ 26 |
Estimated Amortization Expense, 2022 | 94.7 | ||
Estimated Amortization Expense, 2023 | 82.9 | ||
Estimated Amortization Expense, 2024 | 75.3 | ||
Estimated Amortization Expense, 2025 | 68 | ||
Estimated Amortization Expense, 2026 | $ 62.4 |
Accounts Payable (Details)
Accounts Payable (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 516.8 | $ 313.9 |
Other payables | 73.5 | 41.5 |
Total | $ 590.3 | $ 355.4 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | May 03, 2021 | May 21, 2018 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 24, 2021 | Feb. 26, 2020 | Sep. 01, 2017 | Aug. 29, 2017 |
Debt Instruments | ||||||||||
Carrying amount | $ 2,368.8 | $ 1,187.3 | ||||||||
Unamortized deferred financing fees | (44.7) | (17) | ||||||||
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 2,324.1 | 1,170.3 | ||||||||
Less: current portion | (18.5) | (12.2) | ||||||||
Total long-term debt, net of unamortized deferred financing fees | 2,305.6 | 1,158.1 | ||||||||
Repayments on the revolving debt | 100 | |||||||||
Interest and Debt Expense [Abstract] | ||||||||||
Amortization of deferred financing fees, issuance discount, and excluded component of hedging instrument | 7.7 | 4.8 | $ 4.7 | |||||||
Accrued interest on outstanding debt | 4.8 | 4.4 | ||||||||
Senior Credit Facility [Member] | ||||||||||
Debt Instruments | ||||||||||
Unamortized deferred financing fees | (1.4) | $ (1.6) | ||||||||
Maximum borrowing capacity | 1,075 | |||||||||
Term Loan B [Member] | ||||||||||
Debt Instruments | ||||||||||
Less: current portion | $ (14.5) | |||||||||
2024 Term Loan B | ||||||||||
Debt Instruments | ||||||||||
Interest rate at end of period (as a percent) | 2.104% | 2.146% | ||||||||
Carrying amount | $ 670.4 | $ 677.3 | ||||||||
Unamortized deferred financing fees | (8) | (10.8) | ||||||||
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 662.4 | 666.5 | ||||||||
Less: current portion | $ (7) | $ (7) | ||||||||
Debt instrument, margin rate | 2.00% | |||||||||
2024 Term Loan B | LIBOR [Member] | ||||||||||
Debt Instruments | ||||||||||
Debt instrument, margin rate | 2.50% | 2.00% | ||||||||
2028 Term Loan B | ||||||||||
Debt Instruments | ||||||||||
Interest rate at end of period (as a percent) | 2.604% | |||||||||
Carrying amount | $ 742.8 | |||||||||
Unamortized deferred financing fees | (17) | |||||||||
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 725.8 | |||||||||
Maximum borrowing capacity | $ 750 | |||||||||
2028 Term Loan B | LIBOR [Member] | ||||||||||
Debt Instruments | ||||||||||
Debt instrument, margin rate | 2.50% | |||||||||
2026 Revolving Facility | ||||||||||
Debt Instruments | ||||||||||
Funds available for borrowings | 368.6 | |||||||||
Letters of credit, amount outstanding | $ 6.4 | |||||||||
Commitment fee (as a percent) | 0.375% | |||||||||
Maximum borrowing capacity | $ 375 | $ 375 | ||||||||
2022 Revolving Facility | ||||||||||
Debt Instruments | ||||||||||
Maximum borrowing capacity | $ 375 | |||||||||
2029 Senior Notes | ||||||||||
Debt Instruments | ||||||||||
Interest rate at end of period (as a percent) | 5.125% | |||||||||
Interest rate | 5.125% | |||||||||
Carrying amount | $ 450 | |||||||||
Unamortized deferred financing fees | (14.7) | $ (15.9) | ||||||||
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | $ 435.3 | |||||||||
2025 Senior Notes | ||||||||||
Debt Instruments | ||||||||||
Interest rate at end of period (as a percent) | 5.375% | 5.375% | ||||||||
Interest rate | 5.375% | 5.375% | 5.375% | |||||||
Carrying amount | $ 500 | $ 500 | ||||||||
Unamortized deferred financing fees | (5) | (6.2) | ||||||||
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | 495 | 493.8 | $ 500 | $ 500 | ||||||
Accounts Receivable Securitization Facility [Member] | ||||||||||
Debt Instruments | ||||||||||
Interest rate at end of period (as a percent) | 1.65% | |||||||||
Unamortized deferred financing fees | $ (0.4) | |||||||||
Funds available for borrowings | 150 | |||||||||
Commitment fee (as a percent) | 0.80% | |||||||||
Draw down from (repayments of) credit facility | 150 | |||||||||
Maximum borrowing capacity | 150 | |||||||||
Other Indebtedness [Member] | ||||||||||
Debt Instruments | ||||||||||
Carrying amount | 5.6 | 10 | ||||||||
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | $ 5.6 | $ 10 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | May 03, 2021 | Mar. 24, 2021 | Aug. 29, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 26, 2020 | Sep. 01, 2017 |
Debt Instruments | |||||||
Unamortized deferred financing fees | $ 44.7 | $ 17 | |||||
2029 Senior Notes | |||||||
Debt Instruments | |||||||
Debt instrument issued | $ 450 | $ 450 | |||||
Debt instrument, stated interest rate | 5.125% | ||||||
Unamortized deferred financing fees | $ 15.9 | 14.7 | |||||
Amortization period | 8 years | ||||||
2029 Senior Notes | Any Time Prior to August 1, 2015 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
Aggregate principal amount that may be redeemed, as a percent | 40.00% | ||||||
Redemption price, as percentage of principal | 105.125% | ||||||
2029 Senior Notes | During Any 12-Month Period Commencing from the Issue Date Until August 1, 2015 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 102.563% | ||||||
2029 Senior Notes | 12-Month Period Commencing August 1 in Year 2015 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 101.281% | ||||||
2029 Senior Notes | 12-Month Period Commencing August 1 in Year 2016 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
2025 Senior Notes | |||||||
Debt Instruments | |||||||
Debt instrument issued | $ 500 | ||||||
Debt instrument, stated interest rate | 5.375% | 5.375% | 5.375% | ||||
Unamortized deferred financing fees | 5 | $ 6.2 | |||||
Capitalization of issuance costs | $ 9.7 | ||||||
Amortization period | 8 years | ||||||
2025 Senior Notes | Any Time Prior to August 1, 2015 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
Aggregate principal amount that may be redeemed, as a percent | 40.00% | ||||||
Redemption price, as percentage of principal | 105.375% | ||||||
2025 Senior Notes | During Any 12-Month Period Commencing from the Issue Date Until August 1, 2015 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 102.688% | ||||||
2025 Senior Notes | 12-Month Period Commencing August 1 in Year 2015 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 101.792% | ||||||
2025 Senior Notes | 12-Month Period Commencing August 1 in Year 2016 [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 100.896% | ||||||
2025 Senior Notes | 12-Month Period Commencing August 1 in Year 2017 and Thereafter [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, redemption price percentage | 100.00% | ||||||
2028 Term Loan B | |||||||
Debt Instruments | |||||||
Unamortized deferred financing fees | $ 17 | ||||||
Capitalization of issuance costs | $ 18.7 | ||||||
Amortization period | 7 years | ||||||
2028 Term Loan B | LIBOR [Member] | |||||||
Debt Instruments | |||||||
Debt instrument, margin rate | 2.50% |
Debt - Senior Credit Facility (
Debt - Senior Credit Facility (Details) $ in Millions | May 03, 2021USD ($) | May 21, 2018 | Sep. 06, 2017USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) |
Debt Instruments | ||||||
Current portion | $ 18.5 | $ 12.2 | ||||
2020 Revolving Facility | ||||||
Debt Instruments | ||||||
Unamortized deferred financing fees | $ 4 | |||||
2021 Term Loan B | ||||||
Debt Instruments | ||||||
Unamortized deferred financing fees | 8.1 | |||||
Senior Credit Facility [Member] | ||||||
Debt Instruments | ||||||
Maximum borrowing capacity | 1,075 | |||||
2022 Revolving Facility | ||||||
Debt Instruments | ||||||
Maximum borrowing capacity | 375 | |||||
Swingline subfacility capacity | 25 | |||||
Letter of credit capacity | 35 | |||||
Write-off of unamortized deferred financing fees | $ 0.5 | |||||
Capitalization of issuance costs | $ 0.8 | |||||
Amortization period | 5 years | |||||
Percentage of Revolving Facility borrowing capacity covenant trigger | 30.00% | |||||
Undrawn letters of credit | $ 10 | |||||
2022 Revolving Facility | Maximum [Member] | ||||||
Debt Instruments | ||||||
Net leverage ratio | 2 | |||||
2024 Term Loan B | ||||||
Debt Instruments | ||||||
Debt instrument issued | $ 700 | |||||
Debt repricing costs incurred | $ 12.3 | $ 1.1 | ||||
Debt issuance fees expensed | 0.5 | |||||
Capitalization of issuance costs | $ 11.1 | $ 0.6 | ||||
Amortization period | 7 years | 7 years | ||||
Debt instrument, margin rate | 2.00% | |||||
Variable rate floor (as a percent) | 0.00% | |||||
Principal payable per quarter, as a percent | 0.25% | |||||
Current portion | $ 7 | $ 7 | ||||
2026 Revolving Facility | ||||||
Debt Instruments | ||||||
Maximum borrowing capacity | $ 375 | 375 | ||||
Swingline subfacility capacity | 25 | |||||
Letter of credit capacity | 35 | |||||
Capitalization of issuance costs | $ 0.4 | |||||
Unamortized deferred financing fees | $ 0.8 | |||||
Amortization period | 5 years | |||||
Percentage of Revolving Facility borrowing capacity covenant trigger | 30.00% | |||||
Undrawn letters of credit | $ 10 | |||||
2026 Revolving Facility | Minimum [Member] | ||||||
Debt Instruments | ||||||
Net leverage ratio | 1 | |||||
2026 Revolving Facility | Maximum [Member] | ||||||
Debt Instruments | ||||||
Net leverage ratio | 3.50 | |||||
2028 Term Loan B | ||||||
Debt Instruments | ||||||
Maximum borrowing capacity | $ 750 | |||||
Capitalization of issuance costs | $ 18.7 | |||||
Amortization period | 7 years | |||||
Discount rate, as a percent | 0.50% | |||||
Principal payable per quarter, as a percent | 0.25% | |||||
Scheduled future payments | $ 7.5 | |||||
LIBOR [Member] | 2024 Term Loan B | ||||||
Debt Instruments | ||||||
Debt instrument, margin rate | 2.50% | 2.00% | ||||
Variable rate floor (as a percent) | 0.00% | 0.00% | ||||
LIBOR [Member] | 2028 Term Loan B | ||||||
Debt Instruments | ||||||
Debt instrument, margin rate | 2.50% | |||||
Variable rate floor (as a percent) | 0.00% |
Debt - Accounts Receivable Secu
Debt - Accounts Receivable Securitization Facility and Other (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2021USD ($) | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Debt Instruments | |||
Unamortized deferred financing fees | $ 44.7 | $ 17 | |
Accounts Receivable Securitization Facility [Member] | |||
Debt Instruments | |||
Commitment fee (as a percent) | 0.80% | ||
Number of subsidiaries participating | item | 2 | ||
Maximum borrowing capacity | $ 150 | ||
Interest rate at end of period (as a percent) | 1.65% | ||
Fixed interest charges on available, but undrawn borrowings | 0.80% | ||
Unamortized deferred financing fees | $ 0.4 | ||
Debt instrument term | 5 years |
Derivative Instruments (Details
Derivative Instruments (Details) € in Millions, $ in Millions | Feb. 26, 2020USD ($) | May 21, 2018 | Sep. 01, 2017USD ($) | Sep. 30, 2020EUR (€) | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 15, 2020EUR (€) | Feb. 26, 2020EUR (€) | Apr. 01, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 01, 2017EUR (€) | Aug. 29, 2017 |
Derivative Instruments | ||||||||||||
Derivative term | 5 years | |||||||||||
Total debt | $ 2,324.1 | $ 1,170.3 | ||||||||||
Initial excluded component value | $ 23.6 | |||||||||||
Net investment hedge, amount dedesignated | € | € 16.1 | |||||||||||
Foreign Exchange Forward Contracts [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative term | 2 months | |||||||||||
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | $ 646,700 | |||||||||||
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | PMMA Business | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | € | € 950 | |||||||||||
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument | ||||||||||||
Derivative Instruments | ||||||||||||
Number of subsidiaries participating | item | 1 | |||||||||||
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument | Cash Flow Hedges | ||||||||||||
Derivative Instruments | ||||||||||||
Amount hedged | $ 0 | |||||||||||
Cross Currency Swap | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | € | € 459.3 | € 420 | ||||||||||
Derivative term | 2 years 8 months 12 days | |||||||||||
Cross currency swap weighted average interest rate (as a percent) | 3.672% | 3.45% | ||||||||||
Cumulative translation adjustment, net of tax | 13.8 | $ 38 | ||||||||||
Cash proceeds | $ 51.6 | |||||||||||
Interest Rate Swap | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | $ 200 | |||||||||||
Fixed interest rate per agreement (as a percent) | 1.81% | |||||||||||
LIBOR rate at end of period (as a percent) | 0.09% | |||||||||||
2025 Senior Notes | ||||||||||||
Derivative Instruments | ||||||||||||
Total debt | $ 500 | $ 500 | $ 495 | 493.8 | ||||||||
Interest rate | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | |||||||
2024 Term Loan B | ||||||||||||
Derivative Instruments | ||||||||||||
Total debt | $ 662.4 | $ 666.5 | ||||||||||
Debt instrument, margin rate | 2.00% | |||||||||||
Variable rate floor (as a percent) | 0.00% | |||||||||||
2024 Term Loan B | LIBOR [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Debt instrument, margin rate | 2.50% | 2.00% | ||||||||||
Variable rate floor (as a percent) | 0.00% | 0.00% | ||||||||||
Euro [Member] | Foreign Exchange Forward Contracts [Member] | (Sell) | Not Designated as Hedging Instruments [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | $ 512.5 | |||||||||||
Chinese Yuan [Member] | Foreign Exchange Forward Contracts [Member] | (Sell) | Not Designated as Hedging Instruments [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | 44.7 | |||||||||||
Swiss Franc [Member] | Foreign Exchange Forward Contracts [Member] | Buy | Not Designated as Hedging Instruments [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | 25.1 | |||||||||||
Mexico, Pesos | Foreign Exchange Forward Contracts [Member] | Buy | Not Designated as Hedging Instruments [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | 11.7 | |||||||||||
Taiwan, New Dollars | Foreign Exchange Forward Contracts [Member] | (Sell) | Not Designated as Hedging Instruments [Member] | ||||||||||||
Derivative Instruments | ||||||||||||
Derivative contracts, notional amount | $ 21.2 |
Derivative Instruments - Income
Derivative Instruments - Income Statements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Cost of Sales | $ (4,128.6) | $ (2,423.5) | $ (3,073.5) |
Interest expense, net | 79.4 | 43.6 | 39.3 |
Gain (Loss) on Derivative Instruments, Net, Pretax | (22) | 7.3 | |
Other expense, net | 9.5 | 7.9 | 3.4 |
Total amounts of income and expense, derivative instruments | (22) | 7.3 | |
Amount of gain (loss) recognized in income, not designated | (22) | 7.3 | |
Cost of Sales | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Cost of Sales | (4,128.6) | (2,423.5) | (3,073.5) |
Interest Expense, Net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Interest expense, net | (79.4) | (43.6) | (39.3) |
Acquisition purchase price hedge gain (loss) | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Gain (Loss) on Derivative Instruments, Net, Pretax | (22) | 7.3 | |
Total amounts of income and expense, derivative instruments | (22) | 7.3 | |
Other expense, net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Other expense, net | (9.5) | (7.9) | (3.4) |
Foreign Exchange Forward Contracts [Member] | Cost of Sales | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) reclassified from AOCI into income, foreign exchange cash flow hedges | 1 | (0.8) | 6.7 |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | Acquisition purchase price hedge gain (loss) | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | (22) | 7.3 | |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | Other expense, net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | 63.2 | (26.3) | 8 |
Cross Currency Swap | Interest Expense, Net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain excluded from effectiveness testing | 7.4 | 8.6 | 15.8 |
Cross Currency Swap | Other expense, net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | (0.8) | ||
Interest Rate Swap | Interest Expense, Net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) reclassified from AOCI into income, interest rate cash flow hedges | $ (3.5) | $ (2.4) | $ 0.9 |
Derivative Instruments - Effect
Derivative Instruments - Effect on AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments | |||
Gain (Loss) Recognized in AOCI, Cash flow hedges | $ 5.9 | $ (5.8) | $ (8.3) |
Gain (Loss) Recognized in AOCI, Net investment hedges | 44.1 | (41) | 17.9 |
Foreign Exchange Forward Contracts [Member] | |||
Derivative Instruments | |||
Gain (Loss) Recognized in AOCI, Cash flow hedges | 2.3 | (1.4) | (2.2) |
Cross Currency Swap | |||
Derivative Instruments | |||
Gain (Loss) Recognized in AOCI, Net investment hedges | 44.1 | (41) | 17.9 |
Interest Rate Swap | |||
Derivative Instruments | |||
Gain (Loss) Recognized in AOCI, Cash flow hedges | $ 3.6 | $ (4.4) | $ (6.1) |
Derivative Instruments - Gains
Derivative Instruments - Gains and Losses in Other expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | $ (22) | $ 7.3 | |
Foreign exchange transaction gains (losses) | (61.9) | 24.4 | $ (6.4) |
Acquisition purchase price hedge loss | (22) | 7.3 | |
Reclassification expected during next 12 months | 2.2 | ||
Other expense, net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Foreign exchange transaction gains (losses) | (61.9) | 24.4 | (6.4) |
Derivative, Gain (Loss) on Derivative, Net, Total | 1.3 | (1.9) | 1.6 |
Acquisition purchase price hedge gain (loss) | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Acquisition purchase price hedge loss | (22) | 7.3 | |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | Other expense, net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | 63.2 | (26.3) | $ 8 |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | Acquisition purchase price hedge gain (loss) | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | $ (22) | 7.3 | |
Cross Currency Swap | Other expense, net | |||
Derivative, Gain (Loss) on Derivative, Net [Abstract] | |||
Amount of gain (loss) recognized in income, not designated | $ (0.8) |
Derivative Instruments - Financ
Derivative Instruments - Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Financial Assets and Liabilities | ||
Gross derivative asset position | $ 2.3 | $ 13.2 |
Counterparty netting, derivative assets | (0.1) | (6.5) |
Net derivative asset position | 2.2 | 6.7 |
Gross derivative liability position | (20.9) | (82.8) |
Counterparty netting, derivative liabilities | 0.1 | 6.5 |
Net derivative liability position | (20.8) | (76.3) |
Total net derivative position | (18.6) | (69.6) |
Accounts Receivable | ||
Derivatives, Financial Assets and Liabilities | ||
Derivative assets | 2.3 | 13.2 |
Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | (20.9) | (13.8) |
Other Noncurrent Obligations [Member] | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | (69) | |
Foreign Exchange Forward Contracts [Member] | PMMA Business | ||
Derivatives, Financial Assets and Liabilities | ||
Derivative assets | 7.3 | |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivatives, Financial Assets and Liabilities | ||
Gross derivative asset position | 2.3 | 8.2 |
Counterparty netting, derivative assets | (0.1) | (6.5) |
Net derivative asset position | 2.2 | 1.7 |
Gross derivative liability position | (1.3) | (8.3) |
Counterparty netting, derivative liabilities | 0.1 | 6.5 |
Net derivative liability position | (1.2) | (1.8) |
Total net derivative position | 1 | (0.1) |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accounts Receivable | ||
Derivatives, Financial Assets and Liabilities | ||
Derivative assets | 2.3 | 8.2 |
Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | (1.3) | (8.3) |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument | ||
Derivatives, Financial Assets and Liabilities | ||
Gross derivative liability position | (2.1) | |
Net derivative liability position | (2.1) | |
Total net derivative position | (2.1) | |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument | Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | (2.1) | |
Interest Rate Swap | ||
Derivatives, Financial Assets and Liabilities | ||
Gross derivative liability position | (2.2) | (5.9) |
Net derivative liability position | (2.2) | (5.9) |
Total net derivative position | (2.2) | (5.9) |
Interest Rate Swap | Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | (2.2) | (3.4) |
Interest Rate Swap | Other Noncurrent Obligations [Member] | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | (2.5) | |
Cross Currency Swap | ||
Derivatives, Financial Assets and Liabilities | ||
Gross derivative asset position | 5 | |
Net derivative asset position | 5 | |
Gross derivative liability position | (17.4) | (66.5) |
Net derivative liability position | (17.4) | (66.5) |
Total net derivative position | (17.4) | (61.5) |
Cross Currency Swap | Accounts Receivable | ||
Derivatives, Financial Assets and Liabilities | ||
Derivative assets | 5 | |
Cross Currency Swap | Accounts Payable | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | $ (17.4) | |
Cross Currency Swap | Other Noncurrent Obligations [Member] | ||
Derivatives, Financial Assets and Liabilities | ||
Liabilities at fair value | $ (66.5) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities at Fair Value, Recurring (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurements | ||
Total net derivative position | $ (18.6) | $ (69.6) |
Impairment loss on assets | 6.8 | 11 |
Boehlen Location [Member] | ||
Fair Value Measurements | ||
Impairment loss on assets | 5.8 | 11.1 |
Property Plant And Equipment At Fair Value [Member] | Boehlen Location [Member] | ||
Fair Value Measurements | ||
Assets at fair value, nonrecurring | 3.4 | 3.7 |
Interest Rate Swap | ||
Fair Value Measurements | ||
Total net derivative position | (2.2) | (5.9) |
Cross Currency Swap | ||
Fair Value Measurements | ||
Total net derivative position | (17.4) | (61.5) |
Designated as Hedging Instrument | Foreign Exchange Forward Contracts [Member] | ||
Fair Value Measurements | ||
Total net derivative position | (2.1) | |
Not Designated as Hedging Instruments [Member] | Foreign Exchange Forward Contracts [Member] | ||
Fair Value Measurements | ||
Total net derivative position | 1 | (0.1) |
Recurring [Member] | ||
Fair Value Measurements | ||
Total net derivative position | (18.6) | (69.6) |
Recurring [Member] | Interest Rate Swap | ||
Fair Value Measurements | ||
Liabilities at fair value | (2.2) | (5.9) |
Recurring [Member] | Cross Currency Swap | ||
Fair Value Measurements | ||
Assets at fair value | 5 | |
Liabilities at fair value | (17.4) | (66.5) |
Recurring [Member] | Level 2 | ||
Fair Value Measurements | ||
Total net derivative position | (18.6) | (69.6) |
Recurring [Member] | Level 2 | Interest Rate Swap | ||
Fair Value Measurements | ||
Liabilities at fair value | (2.2) | (5.9) |
Recurring [Member] | Level 2 | Cross Currency Swap | ||
Fair Value Measurements | ||
Assets at fair value | 5 | |
Liabilities at fair value | (17.4) | (66.5) |
Recurring [Member] | Designated as Hedging Instrument | Foreign Exchange Forward Contracts [Member] | ||
Fair Value Measurements | ||
Liabilities at fair value | (2.1) | |
Recurring [Member] | Designated as Hedging Instrument | Level 2 | Foreign Exchange Forward Contracts [Member] | ||
Fair Value Measurements | ||
Liabilities at fair value | (2.1) | |
Recurring [Member] | Not Designated as Hedging Instruments [Member] | Foreign Exchange Forward Contracts [Member] | ||
Fair Value Measurements | ||
Assets at fair value | 2.2 | 1.7 |
Liabilities at fair value | (1.2) | (1.8) |
Recurring [Member] | Not Designated as Hedging Instruments [Member] | Level 2 | Foreign Exchange Forward Contracts [Member] | ||
Fair Value Measurements | ||
Assets at fair value | 2.2 | 1.7 |
Liabilities at fair value | (1.2) | (1.8) |
Nonrecurring | ||
Fair Value Measurements | ||
Assets at fair value, nonrecurring | 0 | 0 |
Liabilities at fair value, nonrecurring | $ 0 | $ 0 |
Fair Value Measurements - Items
Fair Value Measurements - Items not at Fair Value (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value of Debt Instruments | ||
Total fair value of long term debt | $ 2,374.5 | $ 1,187.5 |
2029 Senior Notes | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | 460.2 | |
2028 Term Loan B | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | 737.4 | |
2025 Senior Notes | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | 509.4 | 513.5 |
2024 Term Loan B | ||
Fair Value of Debt Instruments | ||
Total fair value of long term debt | $ 667.5 | $ 674 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Effective tax rate | 20.00% | 40.00% | 13.00% |
Provision for income taxes | $ 70.9 | $ 42.7 | $ 12.7 |
U.S. federal corporate income tax rate | 21.00% | 21.00% | 21.00% |
Change in valuation allowances | $ (17.7) | $ (7.7) | $ 45 |
Tax benefit previously unrecognized | $ 1.4 | $ 0.9 | $ 1.3 |
Income Taxes - Income (Loss) Ea
Income Taxes - Income (Loss) Earned by location (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||||||||||
United States | $ 55.5 | $ 56.8 | $ 115.2 | ||||||||
Outside of the United States | 295 | 48.6 | (15.4) | ||||||||
Income from continuing operations before income taxes | $ 23.4 | $ 84.9 | $ 156.2 | $ 86 | $ 92.7 | $ 67.1 | $ (27.2) | $ (27.2) | $ 350.5 | $ 105.4 | $ 99.8 |
Income Taxes - Provision for (B
Income Taxes - Provision for (Benefit from) Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax [Line Items] | |||
Current | $ 73 | $ 34.8 | $ 50.1 |
Deferred | (2.1) | 7.9 | (37.4) |
Total Provision for (benefit from) income taxes | 70.9 | 42.7 | 12.7 |
U.S. Federal [Member] | |||
Income Tax [Line Items] | |||
Current | 5.9 | 3.3 | 16.9 |
Deferred | 4.4 | 11.9 | 5.2 |
Total Provision for (benefit from) income taxes | 10.3 | 15.2 | 22.1 |
U.S. State and Other [Member] | |||
Income Tax [Line Items] | |||
Current | 1.7 | 2.8 | 3.2 |
Deferred | 0.8 | 1.8 | 0.9 |
Total Provision for (benefit from) income taxes | 2.5 | 4.6 | 4.1 |
Non - U.S. [Member] | |||
Income Tax [Line Items] | |||
Current | 65.4 | 28.7 | 30 |
Deferred | (7.3) | (5.8) | (43.5) |
Total Provision for (benefit from) income taxes | $ 58.1 | $ 22.9 | $ (13.5) |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Taxes at U.S. statutory rate | $ 73.6 | $ 22.2 | $ 21 |
State and local income taxes | 2.2 | 4 | 3.2 |
Non U.S. statutory rates, including credits | (9.2) | 2.4 | (7.7) |
U.S. tax effect of foreign earnings and dividends | 0.2 | (1.5) | |
Unremitted earnings | 6.3 | 4.9 | 5.2 |
Change in valuation allowances | (17.7) | (7.7) | 45 |
Uncertain tax positions | (1) | (0.6) | 4 |
Withholding taxes | 6.9 | 3.5 | 4.4 |
Share-based compensation | 0.1 | 1.5 | (1) |
Non-deductible interest | 1 | 3 | 2.1 |
Non-deductible other expenses | 2.7 | 0.6 | 0.3 |
Provision to return adjustments | 3.1 | 5 | 3.4 |
Swiss tax reform | (65) | ||
U.S. Base Erosion and Anti-Abuse Tax | 3.1 | ||
Other-net | 2.9 | 0.6 | (0.7) |
Provision for income taxes | $ 70.9 | $ 42.7 | $ 12.7 |
Effective tax rate | 20.00% | 40.00% | 13.00% |
U.S. federal corporate income tax rate | 21.00% | 21.00% | 21.00% |
Valuation allowance, provision against tax benefit expected to expire | $ 25.8 | $ 28.1 | $ 25.3 |
One-time deferred tax benefit recorded due to the release of a valuation allowance | (16.3) | ||
Increase in provision for income taxes | 28.2 | ||
Net benefit from prior year | 245.1 | ||
Increase (decrease) in income tax provision attributable to net income | $ 16.3 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities, Loss cfwds, Tax reform (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Tax Assets, Net of Valuation Allowance [Abstract] | |||
Tax loss and credit carry forwards | $ 98.5 | $ 189 | |
Other accruals and reserves | 34.2 | 26.5 | |
Goodwill and other intangible assets | 70.7 | 70 | |
Deferred financing fees | 2.5 | 3.2 | |
Employee benefits | 44.4 | 58 | |
Deferred tax assets, gross | 250.3 | 346.7 | |
Valuation Allowance | 127.7 | 220.5 | |
Deferred tax assets, net | 122.6 | 126.2 | |
Deferred Tax Liabilities, Gross [Abstract] | |||
Unremitted earnings | 35.7 | 29.4 | |
Unconsolidated affiliates | 15.3 | 16.1 | |
Property, plant and equipment | 97.2 | 51.2 | |
Deferred tax liabilities, gross | 148.2 | 96.7 | |
Net operating loss carry forward written off | 63.3 | ||
Valuation allowances written off | 63.3 | ||
Deferred tax liability related to operating lease ROU assets | 19.6 | ||
Deferred tax asset related to operating lease liabilities | 19.6 | ||
Impact of Swiss federal tax reform | 3.4 | 4.5 | |
Impact of Swiss cantonal tax reform | 62.1 | 67.5 | |
Operating loss carryforwards | 389.4 | 774.8 | |
Swiss tax reform | $ 65 | ||
Swiss tax reform, cantonal tax law portion | 61.6 | ||
Valuation allowance, provision against tax benefit expected to expire | 25.8 | $ 28.1 | $ 25.3 |
Increase in valuation allowance | 25.8 | ||
Aristech Surfaces LLC And PMAA | |||
Deferred Tax Liabilities, Gross [Abstract] | |||
Deferred income tax liabilities | 45.6 | ||
2020 thru 2024 | |||
Deferred Tax Liabilities, Gross [Abstract] | |||
Operating loss carryforwards | 17.4 | ||
Beyond 2024 | |||
Deferred Tax Liabilities, Gross [Abstract] | |||
Operating loss carryforwards | $ 372 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits, etc. (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 8.5 | $ 9 | $ 6.3 |
Increases related to current year tax positions | 0.6 | 0.6 | 0.6 |
Increases related to prior year tax positions | 0.3 | 3.8 | |
Decreases related to prior year tax positions | (0.2) | (0.5) | |
Settlement of uncertain tax positions | (1.4) | (0.9) | (1.3) |
Decreases due to expiration of statutes of limitations | (0.4) | ||
Ending Balance | 7.5 | 8.5 | 9 |
Recognized interest and penalties | (0.3) | 0.4 | $ (0.8) |
Accrued interest and penalties | 1.8 | $ 1.5 | |
Impact of effective tax rate recognized | 8.3 | ||
Maximum [Member] | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Current unrecognized tax benefits that may be realized within the next 12 months | $ 1.4 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies. | ||
Accrued obligations for environmental remediation and restoration costs | $ 4.4 | $ 0 |
Environmental claims asserted | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | $ 859.1 |
2023 | 807.4 |
2024 | 263.2 |
2025 | 98.1 |
2026 | 50.4 |
Total | $ 2,078.2 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Purchase commitment period | 5 years |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Purchase commitment period | 1 year |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefits (Detail) - Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021age | |
Defined Benefit Plan Disclosure [Line Items] | |
Insurance coverage age limit | 65 |
Years of service | 10 years |
Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Insurance coverage age limit | 50 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefits - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension plans | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 1.10% | 0.74% | 1.02% |
Pension Plan Obligations, Rate of increase in future compensation levels | 2.90% | 2.84% | 2.80% |
Net Periodic Benefit Costs, Discount rate | 0.74% | 1.02% | 1.83% |
Discount rate for service cost | 0.78% | 1.04% | 1.67% |
Discount rate for interest cost | 0.57% | 0.79% | 1.57% |
Net Periodic Benefit Costs, Rate of increase in future compensation levels | 2.84% | 2.80% | 2.79% |
Net Periodic Benefit Costs, Expected long-term rate of return on plan assets | 0.66% | 0.82% | 1.56% |
Pension plans | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 2.92% | ||
Pension Plan Obligations, Rate of increase in future compensation levels | 3.00% | ||
Net Periodic Benefit Costs, Discount rate | 3.09% | ||
Discount rate for service cost | 3.20% | ||
Discount rate for interest cost | 2.37% | ||
Net Periodic Benefit Costs, Rate of increase in future compensation levels | 3.00% | ||
Net Periodic Benefit Costs, Expected long-term rate of return on plan assets | 5.89% | ||
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 2.90% | 3.11% | 3.48% |
Other Postretirement Benefit Obligations, Initial health care cost trend rate | 6.00% | 6.25% | 6.70% |
Other Postretirement Benefit Obligations, Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Other Postretirement Benefit Obligations, Year ultimate trend rate to be reached | 2026 | 2026 | 2025 |
Net Periodic Benefit Costs, Discount rate | 3.11% | 3.48% | 4.38% |
Discount rate for service cost | 3.32% | 3.61% | 4.42% |
Discount rate for interest cost | 2.34% | 3.08% | 4.14% |
Net Periodic Benefit Costs, Initial health care cost trend rate | 6.25% | 6.70% | 6.70% |
Net Periodic Benefit Costs, Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Net Periodic Benefit Costs, Year ultimate trend rate to be reached | 2026 | 2025 | 2024 |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefits - Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Plans And Non-U.S. Plans | |||
Net periodic benefit cost | |||
Interest cost, Statements of Operations location | Other Nonoperating Income (Expense) | ||
Expected return, Statements of Operations location | Other Nonoperating Income (Expense) | ||
Amortization of gain (loss), Statements of Operations location | Other Nonoperating Income (Expense) | ||
Net settlement and curtailment loss, Statements of Operations location | Other Nonoperating Income (Expense) | ||
Pension plans | Non-U.S. Plans | |||
Net periodic benefit cost | |||
Service cost | $ 16 | $ 13.2 | $ 10.2 |
Interest cost | 2.5 | 3.1 | 4.8 |
Expected return on plan assets | (1) | (1.2) | (2.1) |
Amortization of prior service cost | (0.9) | (1.2) | (1.1) |
Amortization of net (gain) loss | 6.3 | 4 | 2.9 |
Settlement and curtailment (gain) loss | (1.6) | 0.7 | 0.8 |
Net periodic benefit cost | 21.3 | 18.6 | 15.5 |
Amounts recognized in other comprehensive income (loss) | |||
Net (gain) loss | (35.5) | 25.3 | 27.9 |
Amortization of prior service (cost) credit | 0.9 | 1.2 | 1.1 |
Amortization of net gain (loss) | (6.3) | (4) | (2.9) |
Settlement and curtailment gain (loss) | 1.6 | (0.7) | (0.8) |
Prior service credit | (2.4) | ||
Total recognized in other comprehensive income (loss) | (41.7) | 21.8 | 25.3 |
Net periodic benefit cost | 21.3 | 18.6 | 15.5 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (20.4) | 40.4 | 40.8 |
Pension plans | U.S. Plans | |||
Net periodic benefit cost | |||
Service cost | 0.5 | ||
Interest cost | 0.5 | ||
Expected return on plan assets | (0.7) | ||
Settlement and curtailment (gain) loss | 0.1 | ||
Net periodic benefit cost | 0.4 | ||
Amounts recognized in other comprehensive income (loss) | |||
Net (gain) loss | 0.7 | ||
Settlement and curtailment gain (loss) | (0.1) | ||
Total recognized in other comprehensive income (loss) | 0.6 | ||
Net periodic benefit cost | 0.4 | ||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 1 | ||
Pension plans | U.S. Plans | PMMA Business | |||
Net periodic benefit cost | |||
Net periodic benefit cost | 0 | 0 | |
Amounts recognized in other comprehensive income (loss) | |||
Net periodic benefit cost | 0 | 0 | |
Other Postretirement Benefit Plans | |||
Net periodic benefit cost | |||
Service cost | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.2 | 0.2 |
Amortization of net (gain) loss | (0.1) | (0.1) | (0.2) |
Net periodic benefit cost | 0.1 | 0.1 | 0.1 |
Amounts recognized in other comprehensive income (loss) | |||
Net (gain) loss | (0.2) | 0.3 | 0.1 |
Amortization of net gain (loss) | 0.1 | 0.1 | 0.2 |
Total recognized in other comprehensive income (loss) | (0.1) | 0.4 | 0.3 |
Net periodic benefit cost | $ 0.1 | 0.1 | 0.1 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 0.5 | $ 0.4 |
Pension Plans and Other Postr_6
Pension Plans and Other Postretirement Benefits - Changes in Benefit Obligations, Fair Value, Funded Status (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension plans | |||
Change in plan assets | |||
Fair value of plan assets at beginning of period | $ 157.1 | ||
Fair value of plan assets at end of period | 157.1 | $ 157.1 | |
Pension plans | Non-U.S. Plans | |||
Change in projected benefit obligations | |||
Benefit obligation at beginning of period | 446.5 | 384.1 | |
Service cost | 16 | 13.2 | $ 10.2 |
Interest cost | 2.5 | 3.1 | 4.8 |
Plan participants' contributions | 1.7 | 1.8 | |
Actuarial changes in assumptions and experience | (28.1) | 27.7 | |
Benefits paid from fund | (1.1) | (2.6) | |
Benefit payments by employer | (2.9) | (2.2) | |
Acquisitions | 6.7 | ||
Plan amendments | (2.4) | ||
Curtailments | (3.3) | (3.3) | |
Settlements | (10.1) | (14.4) | |
Currency impact | (31.7) | 39.1 | |
Benefit obligation at end of period | 393.8 | 446.5 | 384.1 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 157.1 | 148.8 | |
Actual return on plan assets | (1.1) | 5.3 | |
Settlements | (10.1) | (14.4) | |
Employer contributions | 5.7 | 6.2 | |
Plan participants' contributions | 1.7 | 1.8 | |
Benefits paid | (4) | (4.8) | |
Acquisitions | 0.7 | ||
Currency impact | (10.9) | 14.2 | |
Fair value of plan assets at end of period | 139.1 | 157.1 | 148.8 |
Funded status at end of period | (254.7) | (289.4) | |
Pension plans | U.S. Plans | |||
Change in projected benefit obligations | |||
Service cost | 0.5 | ||
Interest cost | 0.5 | ||
Actuarial changes in assumptions and experience | 1.2 | ||
Benefit payments by employer | (0.2) | ||
Acquisitions | 31.5 | ||
Settlements | (3) | ||
Benefit obligation at end of period | 30.5 | ||
Change in plan assets | |||
Actual return on plan assets | 1.3 | ||
Settlements | (3) | ||
Employer contributions | 1.1 | ||
Benefits paid | (0.2) | ||
Acquisitions | 18.8 | ||
Fair value of plan assets at end of period | 18 | ||
Funded status at end of period | (12.5) | ||
Pension plans | U.S. Plans | PMMA Business | |||
Change in projected benefit obligations | |||
Benefit obligation at beginning of period | 0 | ||
Benefit obligation at end of period | 0 | ||
Other Postretirement Benefit Plans | |||
Change in projected benefit obligations | |||
Benefit obligation at beginning of period | 6.7 | 6.2 | |
Service cost | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.2 | 0.2 |
Actuarial changes in assumptions and experience | (0.2) | 0.3 | |
Acquisitions | 0.8 | ||
Benefit obligation at end of period | 7.5 | 6.7 | $ 6.2 |
Change in plan assets | |||
Funded status at end of period | $ (7.5) | $ (6.7) |
Pension Plans and Other Postr_7
Pension Plans and Other Postretirement Benefits - Net Amounts Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net amounts recognized in the balance sheets at December 31 | ||
Noncurrent liabilities held-for-sale | $ (42.3) | |
Pension plans | Non-U.S. Plans | ||
Net amounts recognized in the balance sheets at December 31 | ||
Current liabilities | $ (4.5) | (5.4) |
Noncurrent liabilities | (250.2) | (284) |
Cash contributions and benefit payments to unfunded plans | 5.7 | 6.2 |
Net amounts recognized in the balance sheet | (254.7) | (289.4) |
Accumulated benefit obligation at the end of the period | 367.7 | 405 |
Net prior service credit | (2.4) | (1.7) |
Net loss (gain) | 51.6 | 103.6 |
Total at end of period | 49.2 | 101.9 |
Pension plans | U.S. Plans | ||
Net amounts recognized in the balance sheets at December 31 | ||
Cash contributions and benefit payments to unfunded plans | 1.1 | |
Other Postretirement Benefit Plans | ||
Net amounts recognized in the balance sheets at December 31 | ||
Current liabilities | (0.2) | (0.1) |
Noncurrent liabilities | (7.3) | (6.6) |
Net amounts recognized in the balance sheet | (7.5) | (6.7) |
Accumulated benefit obligation at the end of the period | 7.5 | 6.7 |
Net prior service credit | (0.1) | |
Net loss (gain) | (1.6) | (1.5) |
Total at end of period | (1.6) | $ (1.6) |
Other Postretirement Benefit Plans | U.S. Plans | ||
Net amounts recognized in the balance sheets at December 31 | ||
Noncurrent liabilities | (12.5) | |
Net amounts recognized in the balance sheet | (12.5) | |
Accumulated benefit obligation at the end of the period | 27.4 | |
Net loss (gain) | 0.6 | |
Total at end of period | $ 0.6 |
Pension Plans and Other Postr_8
Pension Plans and Other Postretirement Benefits - Future Benefits, Contribution (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 9.7 |
2023 | 11.9 |
2024 | 9.8 |
2025 | 12 |
2026 | 12.9 |
2027 through 2031 | 81.2 |
Total | 137.5 |
Estimated contributions to defined benefit pension plans | 7.8 |
Pension plans | Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 8.1 |
2023 | 10 |
2024 | 7.9 |
2025 | 9.9 |
2026 | 10.9 |
2027 through 2031 | 69.2 |
Total | 116 |
Pension plans | U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 1.4 |
2023 | 1.7 |
2024 | 1.6 |
2025 | 1.7 |
2026 | 1.6 |
2027 through 2031 | 9.4 |
Total | 17.4 |
Other Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 0.2 |
2023 | 0.2 |
2024 | 0.3 |
2025 | 0.4 |
2026 | 0.4 |
2027 through 2031 | 2.6 |
Total | $ 4.1 |
Pension Plans and Other Postr_9
Pension Plans and Other Postretirement Benefits - Benefit Obligations in Excess of Fair Value (Detail) - Pension plans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Non-U.S. Plans | ||
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Projected benefit obligations | $ 294.2 | $ 336.2 |
Fair value of plan assets | 39.6 | 46.8 |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Accumulated benefit obligations | 268.1 | 300.6 |
Fair value of plan assets | 39.6 | 46.8 |
U.S. Plans | ||
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Projected benefit obligations | 30.5 | |
Fair value of plan assets | $ 18 | |
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets | ||
Accumulated benefit obligations | 27.9 | |
Fair value of plan assets | $ 18 |
Pension Plans and Other Post_10
Pension Plans and Other Postretirement Benefits - Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Non-U.S. Plans | Level 3 | |||
Plan Assets | |||
Total pension plan assets | $ 139.1 | $ 157.1 | |
Non-U.S. Plans | Investments measured at net asset value | |||
Plan Assets | |||
Total pension plan assets | 139.1 | 157.1 | |
Non-U.S. Plans | Insurance Contracts | Level 3 | |||
Plan Assets | |||
Total pension plan assets | 139.1 | 157.1 | |
Non-U.S. Plans | Insurance Contracts | Investments measured at net asset value | |||
Plan Assets | |||
Total pension plan assets | 139.1 | 157.1 | |
U.S. Plans | Level 1 | |||
Plan Assets | |||
Total pension plan assets | 0.5 | ||
U.S. Plans | Investments measured at net asset value | |||
Plan Assets | |||
Total pension plan assets | 18 | ||
U.S. Plans | Cash | Level 1 | |||
Plan Assets | |||
Total pension plan assets | 0.5 | ||
U.S. Plans | Cash | Investments measured at net asset value | |||
Plan Assets | |||
Total pension plan assets | 0.5 | ||
U.S. Plans | Equities | Investments measured at net asset value | |||
Plan Assets | |||
Total pension plan assets | 10.6 | ||
U.S. Plans | Debt. | Investments measured at net asset value | |||
Plan Assets | |||
Total pension plan assets | 6.9 | ||
Pension plans | |||
Plan Assets | |||
Total pension plan assets | 157.1 | 157.1 | |
Pension plans | Insurance Contracts | Level 3 | |||
Plan Assets | |||
Total pension plan assets | 139.1 | 157.1 | $ 148.8 |
Pension plans | Non-U.S. Plans | |||
Plan Assets | |||
Total pension plan assets | 139.1 | $ 157.1 | $ 148.8 |
Pension plans | U.S. Plans | |||
Plan Assets | |||
Total pension plan assets | $ 18 |
Pension Plans and Other Post_11
Pension Plans and Other Postretirement Benefits - Reconciles Of Plan Assets Measured At Fair Value (Details) - Pension plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||
Fair value of plan assets at beginning of period | $ 157.1 | |
Fair value of plan assets at end of period | 157.1 | $ 157.1 |
Insurance Contracts | Level 3 | ||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) | ||
Fair value of plan assets at beginning of period | 157.1 | 148.8 |
Actual return on assets | (1.1) | 5.3 |
Settlements | (10.1) | (14.4) |
Employer contributions | 5.7 | 6.2 |
Plan participant contributions | 1.7 | 1.8 |
Benefits paid | (4) | (4.8) |
Acquisitions | 0.7 | |
Currency impact | (10.9) | 14.2 |
Fair value of plan assets at end of period | $ 139.1 | $ 157.1 |
Pension Plans and Other Post_12
Pension Plans and Other Postretirement Benefits - Asset Allocation For The Company s Pension Plans (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Non-U.S. Plans | |||
Plan Assets | |||
Target Allocation | 100.00% | ||
Allocation | 100.00% | 100.00% | |
Non-U.S. Plans | Insurance Contracts | |||
Plan Assets | |||
Target Allocation | 100.00% | ||
Allocation | 100.00% | 100.00% | |
U.S. Plans | |||
Plan Assets | |||
Target Allocation | 100.00% | ||
Allocation | 100.00% | ||
U.S. Plans | Equities | |||
Plan Assets | |||
Target Allocation | 60.00% | ||
Allocation | 58.60% | ||
U.S. Plans | Debt. | |||
Plan Assets | |||
Target Allocation | 40.00% | ||
Allocation | 38.30% | ||
U.S. Plans | Other | |||
Plan Assets | |||
Allocation | 3.10% |
Pension Plans and Other Post_13
Pension Plans and Other Postretirement Benefits - Defined Contribution and Multiemployer Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution made to defined contribution plans | $ 11.1 | $ 10.9 | $ 11.1 |
Trinseo Netherlands Multiemployer Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Benefit expense | 3.9 | 4.1 | 4.3 |
Multiemployer Plan, Employer Contribution, Cost | $ 3.9 | $ 4 | $ 4.2 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 15.2 | $ 11.1 | $ 13 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 8 | 6.4 | 7.1 |
Unrecognized compensation cost | $ 11.6 | ||
Weighted-average period of recognition | 1 year 10 months 24 days | ||
Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 4.7 | 2.8 | 3 |
Unrecognized compensation cost | $ 3.3 | ||
Weighted-average period of recognition | 1 year 6 months | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 2.5 | $ 1.9 | $ 2.9 |
Unrecognized compensation cost | $ 2.8 | ||
Weighted-average period of recognition | 1 year 9 months 18 days |
Share-Based Compensation - RSUs
Share-Based Compensation - RSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 19, 2019 | |
2014 Omnibus Incentive Plan [Member] | ||||
Stock-based Compensation | ||||
Number of shares authorized | 6,000,000 | |||
Restricted Stock Units [Member] | ||||
Other-than-Options, FV Activity | ||||
Granted, Weighted-Average Grant Date Fair Value per Share | $ 58.26 | $ 24.13 | $ 48.63 | |
Total Fair Value of Awards Vested during Period | $ 5.7 | $ 6.1 | $ 10.9 | |
Restricted Stock Units [Member] | 2014 Omnibus Incentive Plan [Member] | ||||
Stock-based Compensation | ||||
Number of shares worth of dividends attributable to each RSU | 1 | |||
Other-than-Options, Shares Activity | ||||
Unvested Shares, Beginning Balance | 496,910 | |||
Granted, Shares | 219,990 | |||
Vested, Shares | (112,187) | |||
Forfeited, Shares | (26,801) | |||
Unvested Shares, Ending Balance | 577,912 | 496,910 | ||
Other-than-Options, FV Activity | ||||
Unvested Weighted-Average Grant Date Fair Value per Share, Beginning Balance | $ 36.47 | |||
Granted, Weighted-Average Grant Date Fair Value per Share | 58.26 | |||
Vested, Weighted-Average Grant Date Fair Value per Share | 50.70 | |||
Forfeited, Weighted-Average Grant Date Fair Value per Share | 37.31 | |||
Unvested Weighted-Average Grant Date Fair Value per Share, Ending Balance | $ 41.96 | $ 36.47 |
Share-Based Compensation - Opti
Share-Based Compensation - Options and PSUs (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)item$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | |
Stock-based Compensation | |||
Number of vesting installments | item | 3 | ||
Options Outstanding Roll Forward | |||
Options, Outstanding, Number, Beginning Balance | shares | 1,399,749 | ||
Granted, Options | shares | 301,035 | ||
Exercised, Options | shares | (380,098) | ||
Forfeited, Options | shares | (4,904) | ||
Expired, Options | shares | (6,393) | ||
Options, Outstanding, Number, Ending Balance | shares | 1,309,389 | 1,399,749 | |
Options, Weighted Average Exercise Price Rollforward | |||
Options, Weighted Average Exercise Price, Beginning Balance | $ 41.19 | ||
Options granted, Weighted average exercise price | 59.87 | ||
Options exercised, Weighted average exercise price | 29.09 | ||
Options forfeited, Weighted average exercise price | 47.88 | ||
Options expired, Weighted average exercise price | 80.61 | ||
Options, Weighted Average Exercise Price, Ending Balance | $ 48.78 | $ 41.19 | |
Options, Additional Disclosures | |||
Options exercisable | shares | 625,791 | ||
Options expected to vest | shares | 683,598 | ||
Options exercisable, Weighted average exercise price | $ 55.95 | ||
Options expected to vest, Weighted average exercise price | $ 42.22 | ||
Options outstanding, Weighted average contractual term | 6 years 4 months 24 days | ||
Options exercisable, Weighted average contractual term | 5 years 1 month 6 days | ||
Options expected to vest, Weighted average contractual term | 7 years 7 months 6 days | ||
Options outstanding, intrinsic value | $ | $ 14.9 | ||
Options exercisable, intrinsic value | $ | 5.7 | ||
Options expected to vest, intrinsic value | $ | 9.2 | ||
Proceeds from exercise of option awards | $ | 11 | $ 2.6 | $ 0.9 |
Options exercised, intrinsic value | $ | $ 13.6 | $ 1.9 | $ 0.7 |
Fair Value Assumptions | |||
Expected term (in years) | 3 years | ||
Expected volatility | 36.40% | ||
Risk-free interest rate | 2.58% | ||
Share Price | $ 50.95 | ||
Options granted, Weighted average grant date fair value | $ 22.55 | $ 6.51 | $ 15.40 |
Option Awards | |||
Stock-based Compensation | |||
Exercise term (in years) | 9 years | ||
Fair Value Assumptions | |||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Expected volatility | 48.69% | 39.93% | 36.00% |
Risk-free interest rate | 0.79% | 1.19% | 2.53% |
Dividend yield | 1.81% | 3.25% | 2.00% |
Performance Share Units | |||
Fair Value Assumptions | |||
Expected term (in years) | 3 years | 3 years | |
Expected volatility | 58.00% | 40.50% | |
Risk-free interest rate | 0.20% | 1.16% | |
Share Price | $ 61.06 | $ 24.30 | |
Other-than-Options, Shares Activity | |||
Unvested Shares, Beginning Balance | shares | 155,730 | ||
Granted, Shares | shares | 49,463 | ||
Cancelled, Shares | shares | (22,063) | ||
Forfeited, Shares | shares | (10,201) | ||
Unvested Shares, Ending Balance | shares | 172,929 | 155,730 | |
Other-than-Options, FV Activity | |||
Unvested Weighted-Average Grant Date Fair Value per Share, Beginning Balance | $ 43.51 | ||
Granted, Weighted-Average Grant Date Fair Value per Share | 61.06 | ||
Cancelled, Weighted-Average Grant Date Fair Value per Share | 87.77 | ||
Forfeited, Weighted-Average Grant Date Fair Value per Share | 36.15 | ||
Unvested Weighted-Average Grant Date Fair Value per Share, Ending Balance | $ 43.32 | $ 43.51 | |
Total grant date fair value | $ | $ 3 | $ 2.5 | $ 6.3 |
Performance Share Units | Minimum [Member] | |||
Fair Value Assumptions | |||
Vesting percentage | 0.00% | ||
Performance Share Units | Maximum [Member] | |||
Fair Value Assumptions | |||
Vesting percentage | 200.00% |
Segments - Reconciliation of Se
Segments - Reconciliation of Segment Reporting to Consolidated (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)division | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | division | 6 | ||||||||||
Sales to external customers | $ 1,298.5 | $ 1,269.3 | $ 1,273.7 | $ 986 | $ 768.1 | $ 679.2 | $ 534.3 | $ 763 | $ 4,827.5 | $ 2,744.6 | $ 3,373.9 |
Equity in earnings of unconsolidated affiliates | 22.5 | $ 17.1 | $ 30.1 | $ 22.9 | 24.6 | $ 18.3 | $ 14.4 | $ 9.8 | 92.7 | 67 | 119 |
Adjusted EBITDA | 825 | 366.8 | 386.7 | ||||||||
Investment in unconsolidated affiliates | 247.8 | 240.1 | 247.8 | 240.1 | 188.1 | ||||||
Depreciation and amortization | 167.5 | 92.6 | 91.5 | ||||||||
Capital expenditures | 117.7 | 66.6 | 84 | ||||||||
Corporate Unallocated [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 25.6 | 17.9 | 13.1 | ||||||||
Capital expenditures | 24.8 | 11.1 | 23.8 | ||||||||
Engineered Materials [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to external customers | 755 | 194.9 | 209.9 | ||||||||
Engineered Materials [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 94.8 | 34.6 | 31.4 | ||||||||
Depreciation and amortization | 71.9 | 7.3 | 8.9 | ||||||||
Capital expenditures | 28.7 | 5.4 | 6 | ||||||||
Latex Binders | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to external customers | 1,183.4 | 767.1 | 902.8 | ||||||||
Latex Binders | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 106.5 | 76.6 | 76.7 | ||||||||
Depreciation and amortization | 25.1 | 26.1 | 25.9 | ||||||||
Capital expenditures | 29.3 | 22.7 | 21.4 | ||||||||
Base Plastics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to external customers | 1,497.9 | 918.2 | 1,156.3 | ||||||||
Base Plastics [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 314.2 | 106 | 98.7 | ||||||||
Depreciation and amortization | 23.4 | 20.1 | 19.9 | ||||||||
Capital expenditures | 11.9 | 13.9 | 20.6 | ||||||||
Polystyrene [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to external customers | 1,118.8 | 698.9 | 809.4 | ||||||||
Polystyrene [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 183.1 | 79.4 | 54.4 | ||||||||
Depreciation and amortization | 10 | 9.4 | 10.9 | ||||||||
Capital expenditures | 9.6 | 4.5 | 4.1 | ||||||||
Feedstocks [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales to external customers | 272.4 | 165.5 | 295.5 | ||||||||
Feedstocks [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Adjusted EBITDA | 33.7 | 3.2 | 6.5 | ||||||||
Depreciation and amortization | 11.5 | 11.8 | 12.8 | ||||||||
Capital expenditures | 13.4 | 9 | 8.1 | ||||||||
Americas Styrenics [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equity in earnings of unconsolidated affiliates | 92.7 | 67 | 119 | ||||||||
Adjusted EBITDA | 92.7 | 67 | 119 | ||||||||
Investment in unconsolidated affiliates | $ 247.8 | 240.1 | $ 247.8 | 240.1 | $ 188.1 | ||||||
AmSty [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of ownership underlying net assets | 50.00% | 50.00% | |||||||||
Investment in unconsolidated affiliates | $ 247.8 | $ 240.1 | $ 247.8 | $ 240.1 |
Segments - Recon. of Net Income
Segments - Recon. of Net Income to Segment Adjusted EBITDA (Details) - USD ($) $ in Millions | Sep. 01, 2021 | May 03, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | |||||||||||||
Income from continuing operations before income taxes | $ 23.4 | $ 84.9 | $ 156.2 | $ 86 | $ 92.7 | $ 67.1 | $ (27.2) | $ (27.2) | $ 350.5 | $ 105.4 | $ 99.8 | ||
Interest expense, net | (79.4) | (43.6) | (39.3) | ||||||||||
Depreciation and amortization | 167.5 | 92.6 | 91.5 | ||||||||||
Corporate Unallocated | 95.6 | 81.7 | 85.5 | ||||||||||
Adjusted EBITDA addbacks | 132 | 43.5 | 70.6 | ||||||||||
Adjusted EBITDA | 825 | 366.8 | 386.7 | ||||||||||
Net gain on disposition of businesses and assets | (0.6) | (0.4) | (0.7) | ||||||||||
Restructuring and other charges | 9 | 5.6 | 16.8 | ||||||||||
Acquisition transactions and integration net costs (benefit) | 75.3 | 9.1 | (0.9) | ||||||||||
Acquisition purchase price hedge loss (gain) | 22 | (7.3) | |||||||||||
Asset impairment charges or write-offs | 6.8 | 11 | |||||||||||
Other items | 19.5 | 25.5 | 55.4 | ||||||||||
Acquisition-related costs | 20 | 4.7 | |||||||||||
PMMA Business | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Inventory adjustment | $ 10.1 | ||||||||||||
Aristech Surfaces L L C [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Acquisition-related costs | 7 | ||||||||||||
Inventory adjustment | $ 6.9 | ||||||||||||
Corporate Unallocated [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Interest expense, net | 79.4 | 43.6 | 39.3 | ||||||||||
Depreciation and amortization | $ 25.6 | $ 17.9 | $ 13.1 |
Segments - Concentration of Ris
Segments - Concentration of Risk (Details) - Geographic Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
China [Member] | Sales Revenue, Net [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 8.00% | ||
China [Member] | Long-lived Assets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 6.00% | 5.00% |
Germany [Member] | Sales Revenue, Net [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 12.00% | 10.00% |
Germany [Member] | Long-lived Assets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 22.00% | 21.00% |
Hong Kong [Member] | Sales Revenue, Net [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 14.00% | 15.00% |
Netherlands [Member] | Long-lived Assets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 14.00% | 26.00% | 26.00% |
Netherlands [Member] | Right Of Use Assets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 48.00% | 66.00% | 61.00% |
IRELAND | Right Of Use Assets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 0.00% | 0.00% |
Segments - Sales and Long-lived
Segments - Sales and Long-lived Assets Attributed to Geographical Areas (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)facilitycountry | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)facilitycountryPlantsiteitem | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of manufacturing plants | Plant | 40 | ||||||||||
Number of production units | item | 81 | ||||||||||
Number of sites | site | 33 | ||||||||||
Number of countries | country | 15 | 15 | |||||||||
Number of research and development facilities | facility | 11 | 11 | |||||||||
Sales to external customers | $ 1,298.5 | $ 1,269.3 | $ 1,273.7 | $ 986 | $ 768.1 | $ 679.2 | $ 534.3 | $ 763 | $ 4,827.5 | $ 2,744.6 | $ 3,373.9 |
Long-lived assets | 719 | 431.1 | 719 | 431.1 | 422.2 | ||||||
Right of use assets - operating, net | 85.3 | 77.8 | 85.3 | 77.8 | 70.8 | ||||||
U.S. Plans | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales to external customers | 928.7 | 466.6 | 580.3 | ||||||||
Long-lived assets | 184.9 | 43.9 | 184.9 | 43.9 | 44.9 | ||||||
Right of use assets - operating, net | 19.5 | 18.7 | 19.5 | 18.7 | 10.4 | ||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales to external customers | 2,755.8 | 1,453 | 1,761.5 | ||||||||
Long-lived assets | 410.3 | 269.1 | 410.3 | 269.1 | 254 | ||||||
Right of use assets - operating, net | 61.9 | 53.9 | 61.9 | 53.9 | 54.5 | ||||||
Asia-Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales to external customers | 1,048.8 | 753.4 | 934.6 | ||||||||
Long-lived assets | 114.5 | 118.1 | 114.5 | 118.1 | 123.3 | ||||||
Right of use assets - operating, net | 3.9 | $ 5.2 | 3.9 | 5.2 | 5.9 | ||||||
Rest of World [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales to external customers | 94.2 | $ 71.6 | $ 97.5 | ||||||||
Long-lived assets | 9.3 | 9.3 | |||||||||
IRELAND | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | $ 0 | $ 0 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 8.6 | $ 8.1 | $ 17.2 |
Restructuring Reserve [Roll Forward] | |||
Accrued charges/Balance at beginning of period | 8 | 16.5 | |
Expenses | 9 | 4.6 | |
Deductions | (7) | (13.1) | |
Accrued charges/Balance at end of period | 10 | 8 | 16.5 |
Corporate Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (0.1) | 7.6 | 16.4 |
Cumulative life-to-date charges | 23.9 | ||
Transformational Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 8.7 | ||
Cumulative life-to-date charges | 8.7 | ||
Other Restructurings | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.5 | 0.8 | |
Accelerated Depreciation | Corporate Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (0.4) | 2.5 | 0.4 |
Cumulative life-to-date charges | 2.5 | ||
Employee Termination Benefit Charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Accrued charges/Balance at beginning of period | 7.9 | 15.8 | |
Expenses | 9 | 3.9 | |
Deductions | (6.9) | (11.8) | |
Accrued charges/Balance at end of period | 10 | 7.9 | 15.8 |
Employee Termination Benefit Charges [Member] | Corporate Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.3 | 2.5 | 15.6 |
Cumulative life-to-date charges | 18.4 | ||
Employee Termination Benefit Charges [Member] | Transformational Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 8.7 | ||
Cumulative life-to-date charges | 8.7 | ||
Employee Termination Benefit Charges [Member] | Transformational Restructuring Program [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges | 1 | ||
Contract Termination Charges [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Accrued charges/Balance at beginning of period | 0.1 | 0.7 | |
Deductions | (0.1) | (0.6) | |
Accrued charges/Balance at end of period | 0.1 | 0.7 | |
Contract Termination Charges [Member] | Corporate Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2.4 | $ 0.4 | |
Cumulative life-to-date charges | 2.8 | ||
Other Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Expenses | 0.7 | ||
Deductions | (0.7) | ||
Other Restructuring | Corporate Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 0.2 | ||
Cumulative life-to-date charges | $ 0.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 590.3 | $ 668.9 | $ 768.7 |
Balance at end of period | 1,013.1 | 590.3 | 668.9 |
Currency Translation Adjustment, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (109) | (106.7) | (111.8) |
Other comprehensive income (loss) | (5.3) | (2.3) | 5.1 |
Balance at end of period | (114.3) | (109) | (106.7) |
Employee Benefits, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (71.9) | (56.3) | (39.4) |
Other comprehensive income (loss) | 28.4 | (18.3) | (19) |
Amounts reclassified from AOCI to net income | 9.9 | 2.7 | (2.1) |
Balance at end of period | (33.6) | (71.9) | (56.3) |
Accumulated Gain Loss Net Cash Flow Hedge Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (5.2) | 0.6 | 8.9 |
Other comprehensive income (loss) | 3.4 | (9) | (0.7) |
Amounts reclassified from AOCI to net income | 2.5 | 3.2 | 7.6 |
Balance at end of period | 0.7 | (5.2) | 0.6 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (186.1) | (162.4) | (142.3) |
Other comprehensive income (loss) | 26.5 | (29.6) | (14.6) |
Amounts reclassified from AOCI to net income | 12.4 | 5.9 | 5.5 |
Balance at end of period | $ (147.2) | $ (186.1) | $ (162.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | $ 4,128.6 | $ 2,423.5 | $ 3,073.5 | ||||||||
Interest expense, net | 79.4 | 43.6 | 39.3 | ||||||||
Income before income taxes | $ (23.4) | $ (84.9) | $ (156.2) | $ (86) | $ (92.7) | $ (67.1) | $ 27.2 | $ 27.2 | (350.5) | (105.4) | (99.8) |
Provision for income taxes | 70.9 | 42.7 | 12.7 | ||||||||
Net income | $ (123.8) | $ (93.1) | $ (151.6) | $ (71.5) | $ (66.7) | $ (105.8) | $ 128.4 | $ 36.3 | (440) | (7.9) | (92) |
Employee Benefits, Net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net actuarial loss | (8.4) | (0.7) | (0.8) | ||||||||
Income before income taxes | (14.6) | (3.9) | (3.1) | ||||||||
Provision for income taxes | 4.7 | 1.2 | 1 | ||||||||
Net income | (9.9) | (2.7) | (2.1) | ||||||||
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] | |||||||||||
Settlement and curtailment (gain) loss | (0.9) | (1.2) | (1.1) | ||||||||
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] | |||||||||||
Prior service credit | (7.1) | (4.4) | (3.4) | ||||||||
Accumulated Gain Loss Net Cash Flow Hedge Parent | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 1 | (0.8) | 6.7 | ||||||||
Interest expense, net | (3.5) | (2.4) | 0.9 | ||||||||
Income before income taxes | (2.5) | (3.2) | 7.6 | ||||||||
Net income | $ (2.5) | $ (3.2) | $ 7.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings: | |||||||||||
Net income from continuing operations | $ 279.6 | $ 62.7 | $ 87.1 | ||||||||
Net income (loss) from discontinued operations | 160.4 | (54.8) | 4.9 | ||||||||
Net income | $ 123.8 | $ 93.1 | $ 151.6 | $ 71.5 | $ 66.7 | $ 105.8 | $ (128.4) | $ (36.3) | $ 440 | $ 7.9 | $ 92 |
Shares: | |||||||||||
Weighted average ordinary shares outstanding | 38.7 | 38.3 | 40.3 | ||||||||
Dilutive effect of RSUs, option awards and PSUs | 0.9 | 0.3 | 0.4 | ||||||||
Diluted weighted average ordinary shares outstanding | 39.6 | 38.6 | 40.7 | ||||||||
Income (loss) per share | |||||||||||
Income (loss) per share-basic, Continuing operations | $ 0.04 | $ 2.04 | $ 3.43 | $ 1.71 | $ 1.73 | $ 1.05 | $ 0.68 | $ (1.80) | $ 7.22 | $ 1.63 | $ 2.16 |
Income (loss) per share-basic, Discontinued operations | 0.35 | 0.48 | 0.15 | 0.01 | 1.72 | (4.04) | 0.86 | 4.15 | (1.43) | 0.12 | |
Income per share-basic | 3.20 | 2.39 | 3.91 | 1.86 | 1.74 | 2.77 | (3.36) | (0.94) | 11.37 | 0.20 | 2.28 |
Income (loss) per share-diluted, Continuing operations | 0.04 | 2.01 | 3.35 | 1.67 | 1.70 | 1.04 | 0.67 | (1.80) | 7.07 | 1.62 | 2.14 |
Income (loss) per share-diluted, Discontinued operations | 0.35 | 0.47 | 0.14 | 0.01 | 1.71 | (4.02) | 0.86 | 4.05 | (1.42) | 0.12 | |
Income per share- diluted | $ 3.14 | $ 2.36 | $ 3.82 | $ 1.81 | $ 1.71 | $ 2.75 | $ (3.35) | $ (0.94) | $ 11.12 | $ 0.20 | $ 2.26 |
Anti-dilutive shares excluded | 0.6 | 1.1 | 0.6 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets and Liabilities, Lessee [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 85.3 | $ 77.8 | $ 70.8 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 3.7 | 7.1 | |
Operating lease liabilities - current portion | 18.4 | 15.5 | |
Operating lease liabilities - noncurrent portion | 69.2 | 65.5 | |
Finance lease liabilities - current portion | $ 2.7 | $ 3.1 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Debt Current Excluding Operating Lease Obligations | Debt Current Excluding Operating Lease Obligations | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities | |
Finance lease liabilities - noncurrent portion | $ 1 | $ 4.1 |
Leases - Costs and SCF (Details
Leases - Costs and SCF (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease, Cost [Abstract] | |||
Finance Lease, Right-of-Use Asset, Amortization | $ 2.7 | $ 2.7 | $ 0.8 |
Finance Lease, Interest Expense | 0.1 | 0.2 | 0.1 |
Operating lease cost | 20.7 | 21 | 18 |
Variable Lease, Cost | 0.1 | 0.3 | 0.2 |
Total lease cost | 23.6 | 24.2 | 19.1 |
Operating Lease, Payments | 21.4 | 19.3 | 16.8 |
Finance Lease, Interest Payment on Liability | 0.1 | 0.2 | 0.1 |
Finance Lease, Principal Payments | 2.7 | 2.7 | 0.8 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 29 | 20.5 | 85.6 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 0.2 | $ 3 | $ 8.2 |
Leases - Maturities, etc. (Deta
Leases - Maturities, etc. (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2022 | $ 20.6 | ||
2023 | 17.5 | ||
2024 | 12.7 | ||
2025 | 9.3 | ||
2026 | 6.8 | ||
Thereafter | 32.3 | ||
Total payments due | 99.2 | ||
Less Imputed interest | (11.6) | ||
Operating lease liability | 87.6 | ||
Finance Lease, Liability, Payment, Due [Abstract] | |||
2022 | 2.5 | ||
2023 | 0.6 | ||
2024 | 0.6 | ||
2025 | 0.2 | ||
Total payments due | 3.9 | ||
Less Imputed interest | (0.2) | ||
Finance lease liability | $ 3.7 | ||
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Long-term Debt, Excluding Current Maturities, Debt Current Excluding Operating Lease Obligations | ||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 10 months 24 days | 8 years 10 months 24 days | 9 years 3 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years | 2 years 7 months 6 days | 2 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.90% | 4.70% |
Finance Lease, Weighted Average Discount Rate, Percent | 2.80% | 2.80% | 3.00% |
Operating leases not yet commenced | $ 9.6 | ||
Leases, Operating And Finance, Combined [Member] | |||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
2022 | 23.1 | ||
2023 | 18.1 | ||
2024 | 13.3 | ||
2025 | 9.5 | ||
2026 | 6.8 | ||
Thereafter | 32.3 | ||
Contractual Obligation, Total | 103.1 | ||
Less imputed interest | (11.8) | ||
Lease liability | $ 91.3 | ||
Minimum [Member] | |||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Future operating lease term | 1 year | ||
Maximum [Member] | |||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
Future operating lease term | 10 years |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 01, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Net sales | $ 1,298.5 | $ 1,269.3 | $ 1,273.7 | $ 986 | $ 768.1 | $ 679.2 | $ 534.3 | $ 763 | $ 4,827.5 | $ 2,744.6 | $ 3,373.9 | |
Gross profit | 121.6 | 168.3 | 220 | 188.9 | 133.7 | 106.3 | 23.4 | 57.7 | 698.9 | 321.1 | 300.4 | |
Equity in earnings of unconsolidated affiliates | 22.5 | 17.1 | 30.1 | 22.9 | 24.6 | 18.3 | 14.4 | 9.8 | 92.7 | 67 | 119 | |
Operating income (loss) | 47.2 | 107.8 | 151 | 155.4 | 101.8 | 78.3 | (15.1) | (15.4) | 461.4 | 149.6 | 142.5 | |
Income (loss) from continuing operations before income taxes | 23.4 | 84.9 | 156.2 | 86 | 92.7 | 67.1 | (27.2) | (27.2) | 350.5 | 105.4 | 99.8 | |
Net income (loss) from continuing operations | 1.4 | 79.4 | 133 | 65.8 | 66.2 | 40.2 | 25.8 | (69.4) | ||||
Net income (loss) from discontinued operations, net of income taxes | 13.7 | 18.6 | 5.7 | 0.5 | 65.6 | (154.2) | 33.2 | |||||
Net income (Loss) | $ 123.8 | $ 93.1 | $ 151.6 | $ 71.5 | $ 66.7 | $ 105.8 | $ (128.4) | $ (36.3) | $ 440 | $ 7.9 | $ 92 | |
Net income (loss) per share | ||||||||||||
Net income (loss) per share- basic, continuing operations | $ 0.04 | $ 2.04 | $ 3.43 | $ 1.71 | $ 1.73 | $ 1.05 | $ 0.68 | $ (1.80) | $ 7.22 | $ 1.63 | $ 2.16 | |
Net income (loss) per share- basic, discontinued operations | 0.35 | 0.48 | 0.15 | 0.01 | 1.72 | (4.04) | 0.86 | 4.15 | (1.43) | 0.12 | ||
Net income (loss) per share- basic | 3.20 | 2.39 | 3.91 | 1.86 | 1.74 | 2.77 | (3.36) | (0.94) | 11.37 | 0.20 | 2.28 | |
Net income (loss) per share- diluted, continuing operations | 0.04 | 2.01 | 3.35 | 1.67 | 1.70 | 1.04 | 0.67 | (1.80) | 7.07 | 1.62 | 2.14 | |
Net income (loss) per share- diluted, discontinued operations | 0.35 | 0.47 | 0.14 | 0.01 | 1.71 | (4.02) | 0.86 | 4.05 | (1.42) | 0.12 | ||
Net income (loss) per share- diluted | $ 3.14 | $ 2.36 | $ 3.82 | $ 1.81 | $ 1.71 | $ 2.75 | $ (3.35) | $ (0.94) | $ 11.12 | $ 0.20 | $ 2.26 | |
Emulsion Polymers, Synthetic Rubber [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||||||||
Net income (loss) per share | ||||||||||||
After-tax gain on sale | $ 117.8 |
Schedule II - Financial Stateme
Schedule II - Financial Statement Schedule Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of the Period | $ 5.8 | $ 5.3 | $ 6.1 |
Additions, Charged to Cost and Expense | (1.5) | 0.2 | (0.7) |
Deduction from Reserves | (0.2) | (1.1) | (0.2) |
Currency Translation Adjustments | 1.4 | 0.1 | |
Balance at End of the Period | 4.1 | 5.8 | 5.3 |
Amounts written off, net of recoveries | 0.2 | 1.1 | 0.2 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of the Period | 220.5 | 218 | 167.6 |
Additions, Charged to Cost and Expense | (89.7) | (1.4) | 50.4 |
Currency Translation Adjustments | (3.1) | 3.9 | |
Balance at End of the Period | $ 127.7 | $ 220.5 | $ 218 |